Fed Day-Yawn

{+++}Yesterday was interesting and today should not fail to keep us on our toes as we have the GDP report, The Fed and a bevy of earnings. Arlen Specter jumped parties in a desperate act of political preservation. It will be interesting to see if that gets into the market as it has tipped the balance of power on K Street.

Freidman Billings is out with a report that states that BAC will need about $70 billion, the report has raised some eyebrows and the company claims they did their own stress test and was much more in depth than the one Timmy Geithner did. The financials are still not out of the woods and whether BAC needs more loot or not, someone please tell me how they will make money anytime soon.

I’ve been saying for a year that even when the “crsis” is over and the dust settles the banks still need to do what banks do-lend money. The model is broken for now.

I poured over charts last night and was amazed at the amount of stocks that have moved 50 to 100% in the last month or so, in many cases the fundamentals are still horrible. This is the by product of what a vicious V shaped bear market rally will give you. I am watching closely and will report to you as soon as it makes sense.

They finally opened DNDN last night and it is up 130%, what a wild ride.

By the way, if you guys are holding some of these recommendation for more than a day trade always be aware of earning reports. I am NEVER long or short through an earnings report. FSLR and ESRX that have been on the site recently and report tonight after the close so be aware.

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