The GDP data was weak, but the key is new home sales. The Fed right now has one thing to worry about, and that is the housing sector. And this number must give it a big relief.

Mortgage rates have been so low and accommodating that total home sales surged in October as families took advantage of the affordable atmosphere.

That's the real bear case -- rates rise in the United States, exasperating home and car sales. For the government to bail the economy out, there would be more massive deficit spending.

The TIPS auction was better than anticipated, especially the indirect bid. Technical buying and a weak stock market also helped.

It was an average auction.

The market has traded very poorly. Gold is trading above $600, which is indicative of the inflation outlook. Then there is fear about a strong jobs number tomorrow.