Just hit the wire, the new stimulus plan has just been tentatively agreed upon in the Senate. That plan, along with TARP II, the new and improved rescue plan for financial institutions, will be revealed on Monday.
At this time, details are sketchy. Should make for a volatile, manic Monday.
- Stocks were the only instrument that had a good day, closing up 217 points on the big board and plus 45 points on the NASDAQ.
- Financials led the way with the likes of JP Morgan and Wells Fargo up nearly $3.00 on the day.
- The 10-year note suffered, down 23/32’s at a yield of 2.99%. The settle in 10-year note futures was the lowest (highest yield) since November 28; however, the weakness was modest and failed to take out the major support at 3.03%.
Hope is alive for a recovery but the bulls will need to get this thing going soon to neutralize the sell signals. Mortgage backs did ok, closing down 2 to 3/32’s on the day. Not what we hoped for but not a disaster just the same.
Monday is clear of economic data so all the fireworks will come from Capitol Hill.
Buckle up, it should be a doozeee.