The Wrap

{+++}Obama speaks in an hour, here is a preview. He will discuss tax breaks for investment in small business and a “freeze” in discretionary spending ( most has been spent already-meaningless). Will he move to the center? Probably, too little to late, show me jobs. He will blame Bush for world hunger and the hole in your pants.

The market may have discounted most of the perceived bad news, which really surprised me today. We saw GS break $150, SPX break support at 1085 (only by a little) and XLF broke $14 (by a little). These were all levels of support that were important, and still are. Bernanke left rates alone-no surprise, and the market took off, led by a strong rally in the financials.

Obama can help or hurt tonight, let’s see what happens. If he pontificates hard against the banks, we will have a tough day tomorrow and a give back in the financials, if he is dovish, the financials could have a continuation to the upside, or a give back of today’s action.

Amazon reports tomorrow after the close. No names tonight.

Previous Post
The Morning Morsel-Fed, Geithner and The State Of the Union.
Next Post
Update

Recent Articles