The stock market seems to losing steam these days. Home Depot says the worst of the housing crisis is over like they really know! Nonetheless they spoke good things and the market listened but not for long. Early gains gave way very quickly.

The financials which have been so strong lately are running out of gas.

The big story right now is interest rates and treasury bond sales. Tomorrow the 30 year goes to auction but the big story today was the 10 year note. The Treasury Department sold $19 billion but the yield shot up to 3.99% the most since last August.

This is not good for home sales and could very well dampen Home Depot's tremendous enthusiasm. Keep an eye on interest rates and keep and eye on yields. The bond market boys are much more savvy than stock investors.

Remember the bond market predicted the recession when all the stock market pundits were scoffing and saying that dreadful phrase, "everything is different this time!"