Watch those long bonds
Well, the Fed cuts have actually been counterproductive when it comes to long-term interest rates. Bond investors are getting increasingly worried that aggressive cuts now will only drive inflation higher later. They're questioning the wisdom of those cuts in the face of $95+ oil (oops, make that $99+), $900+ gold, soaring wheat prices, soaring soybean prices, the biggest rise in import costs in U.S. history, and so on. So they're selling.
That's driving longer-term interest rates up (including those charged on 30-year mortgages). This Bankrate.com chart shows the progression of those rates over the past three months. The jump is rather striking.
Update: Long bonds futures held support, finishing the day down 31/32 at 116 1/32. Oil managed to close just above $100, however.