What can I say? This is a big week for the market. We have the stimulus package ready to be signed, and Tim Geithner will try and save the financial world as we know it at some point tomorrow. A recipe of shock and awe is needed and “expected” by the markets and anything short of that could be met with disaster. You don’t have to be a rocket scientist to know that the market has always responded positively to the promise of bail out funds from Uncle Sam, only to sell off the “good” news quickly. It must be different this time and the market Gods know it.
The script will be the same, and the financials will have the starring role as they will be the obvious beneficiaries of good news, but they will be taken to the wood chipper fast if Geithner falls short. Good luck this week and try not to get caught leaning the wrong way.