Moving Away From Uncertainty

Good morning. Following yesterday's impressive turnaround, premarket futures are indicating that the market is going to try to continue the upside momentum.

A better than expected ADP private employment report has helped premarket sentiment and at 10:35 we have the weekly EIA Petroleum Status report. We also have news that the Fed has extended its emergency loan programs through next January.

Premarket gainers: RSYS, HOKU, BWLD, STAR, RFMD, NATI, SVVS, SLAB, HIRE, CTX, UAUA, DENN, ERII, MTL, GRA, CMI, & MT.

Premarket losers: ULTI, SIMO, GRMN, ELN, ALGN, HAS, AJG, HBI, DGLY, ERTS, HAFC, MET, OMX, GLW, ELON, TTMI, WYE, CBG, MET, & AHG.

I've read a lot of commentary about how the gains in Merrill Lynch (MER) yesterday signify that the bad news has been priced in. Clearly, that's the type of reversal action that feeds into "we've bottomed out - time to buy" mentality and we need to see more examples of that kind of reaction to bad news.

Remember, the market hates uncertainty much more than it hates bad news because it can quantify and discount bad news when it is already known. What investors do not like is not knowing how to understand and compute the downside risks which is why we've had such a difficult time this year.

Have a wonderful Wednesday!