The Fred Report - Weekly December 5, 2016

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While the market should continue strong at the very end of the year, we would expect this week to be choppy to down as the daily stochastic recycles. This should be more of a time correction and less of a price decline. We are not selling this move, as surprises could occur on the upside.  The technical message is clear – the risk is for higher rates, most likely after at least some kind of monthly bounce, then rates should resume their climb.



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