• That is the danger of being too bullish or too bearish.  Snap-back rallies smack you in the face.  Buy-n-holders will use days like this to substantiate that strategy.  It is the “you gotta be in to win” attitude.  That’s what they said in November ’07 as the Dow hit 14,000.  Today’s rally pushed it up to 7350.  The trend is still down but rallies like today are most welcome.
• After six punishing days in a row all averages exalted in gains. It was done with a flourish, as well.  Except for new highs/new lows which were down, markets were strong throughout.
• Tonight’s speech will be important as traders watch for similar Bernanke ‘feel good” phrases.
• The Fed Chairman’s calm at Senate briefings was in marked contrast to previous visits to the Hill with past Treasury Secretary Paulson.  That as well as less talk about bank nationalization led to traders covering shorts.
• The chances of a continued rally are good if we get a favorable reaction to the speech tonight.  Yesterday’s meeting with both parties was “vintage” Obama.   He handled it with aplomb and sincerity.  Hopefully, he will give Nancy Pelosi a call to get her in a more conciliatory mood with Republicans.
• Oh, the 3x financial ETF I mentioned earlier today?  FAS was up 27.4%.  Do not ask if I bought it.
• Some ugly housing forecasts from Henry>Housing Numbers Spark Analyst Brawl
• Flu is attacking a lot of folks.  Over the years I have had great success with one product, taken when symptoms first appear. I can’t pronounce it so I ask for Oscillo.  It is expensive, about $8 for three little vials.  But this homeopathic treatment works for me. Oscillococcinum : Natural Flu Medicine

• Today is The Madam’s birthday so we are headed for a rare dinner out.  We like a little bistro down by the river that serves great country pate’ and terrific mussels served with dense, crusty bread.  Wash that down with a bit of Chablis and you got the makings for one great meal.

See you all tomorrow!