Richard Sellers, Realtor DRE#01148405

Market Outlook

Monday, June 01, 2009 7:15 AM

Price Trend: Negative
Price Volatility: High
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Current Conditions: Today’s Economic Data (all times PST)

FNMA 4.5 100-03 (-23) Income and Spending 5:30
GNMA 4.5 100-06 (-23) Construction Spending 7:00
10yr Yield 3.640% ISM 7:00
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Commentary:

Bonds are getting hammered this morning as every piece of data released beat expectations. These
increased signs that the economy may indeed have bottomed out are pushing stocks higher. Oil is also
higher this morning which is consistent with speculation of a recovery coming sooner than later.



This Week’s Calendar:
Date ET Release For Actual ConsensusPrior
Jun 01 08:30 a.m. Personal Income Apr 0.5% -0.2% -0.2%
Jun 01 08:30 a.m. Personal Spending Apr -0.1%-0.2% -0.3%
Jun 01 10:00 a.m. Construction Spending Apr 0.8% -1.5% 0.4%
Jun 01 10:00 a.m. ISM Index May 42.8 42.3 40.1
Jun 02 10:00 a.m. Pending Home Sales Apr NA 3.2%
Jun 02 02:00 p.m. Auto Sales May NA 3.2M
Jun 02 02:00 p.m. Truck Sales May NA 3.8M
Jun 03 08:15 a.m. ADP Employment ChangeMay -543K -491K
Jun 03 10:00 a.m. Factory Orders Apr 0.3% -0.9%
Jun 03 10:00 a.m. ISM Services May 45.0 43.7
Jun 03 10:30 a.m. Crude Inventories 05/29 NA -5.41M
Jun 04 08:30 a.m. Initial Claims 05/30 620K 623K
Jun 04 08:30 a.m. Productivity-Rev. Q1 1.2% 0.8%
Jun 04 08:30 a.m. Unit Labor Costs Q1 2.9% 3.3%
Jun 05 08:30 a.m. Average Workweek May 33.2 33.2
Jun 05 08:30 a.m. Hourly Earnings May 0.2% 0.1%
Jun 05 08:30 a.m. Nonfarm Payrolls May -550K

Market Outlook

Friday, May 29, 2009

Price Trend: Positive

Price Volatility: High

Recommendation: Cautiously Floating

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Current Conditions: Today’s Economic Data (all times PST)

FNMA 4.5 100-10 (+19) GDP 5:30

GNMA 4.5 100-14 (+19) Chicago PMI 6:45

10yr Yield 3.564% Consumer Sentiment 6:55

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Commentary:

Bonds are off to a good start this morning and are carrying through on yesterday afternoon’s rally. Mortgages are tightening back in to Treasuries after widening significantly over the last few sessions.

Data released this morning was generally positive for bonds. Getting this week’s heavy Treasury issuance behind us was a good thing, too.

The chart below shows where we are for the week on FNMA 4.5’s.

Tuesday – Wednesday

Thursday – Current

This Week’s Calendar:

The wife came home early and found her husband in their bedroom making love to a very attractive young woman. And she was somewhat upset. 'You are a disrespectful pig!' she cried. 'How dare you do this to me -- a faithful wife, the mother of your children! I'm leaving you. I want a divorce right away!'

The husband replied, 'Hang on just a minute love so at least I can tell you what happened.'

'Fine, go ahead,' she sobbed,' but they'll be the last words you'll say to me!'

And the husband began -- 'Well, I was getting into the car to drive home, and this young lady here asked me for a lift. She looked so down and out and defenseless that I took pity on her and let her into the car.

I noticed that she was very thin, not well dressed and very dirty. She told me that she hadn't eaten for three days.

So, in my compassion, I brought her home and warmed up the enchiladas I made for you last night, the ones you wouldn't eat because you're afraid you'll put on weight. The poor thing devoured them in moments.

Since she needed a good clean-up, I suggested a shower, and while she was doing that, I noticed her clothes were dirty and full of holes, so I threw them away.

Then, as she needed clothes, I gave her the designer jeans that you have had for a few years, but don't wear because you say they are too tight.

I also gave her the underwear that was your anniversary present, which you don't wear because I don't have good taste.

I found the sexy blouse my sister gave you for Christmas that you don't wear just to annoy her, and I also donated those boots you bought at the expensive boutique and don't wear because someone at work has a pair the same.'

The husband took a quick breath and continued - 'She was so grateful for my understanding and help that as I walked her to the door, she turned to me with tears in her eyes and said, 'Please ... Do you have anything else that your wife doesn't use?'

Wine ........

To my friends who enjoy a glass of wine.. and those who don't. As Ben Franklin said: In wine there is wisdom, in beer there is freedom, in water there is bacteria.

In a number of carefully controlled trials, scientists have demonstrated that if we drink 1 liter of water each day, at the end of the year we would have absorbed more than 1 kilo of Escherichia
coli, (E. coli) - bacteria found in feces.

However, we do NOT run that risk when drinking wine & beer (or tequila, rum, whiskey or other liquor) because alcohol has to go through a purification process of boiling, filtering and/or fermenting.

Remember: Water = Poop,
Wine = Health.

Therefore, it's better to drink wine and talk stupid, than to drink water and be full of shit .

There is no need to thank me for this valuable information: I'm
doing it as a public service!