Billions & Billions Flow Back In

Good morning. Yesterday's surge in optimism over the latest efforts by governments around the world to rescue the financial markets is still with us today in spite of chatter that the so-called smart money is staying on the sidelines.

The U.S. government has announced plans to buy $250 billion dollars worth of senior preferred, non-voting shares in 9 banks and expects thousands more. In addition, the FDIC will provide insurance for interbank lending and remove the $250,000 insurance limit on noninterest-bearing accounts.

Overseas markets are very strong (Nikkei soared more than +14% today alone) and premarket futures currently indicate a +3% to +4% gap open. Credit market indicators like the Dollar Libor are starting to pull back as expectations continue that these latest efforts will thaw the credit markets and restore confidence in the worldwide financial system.

Premarket gainers: MS, ABK, NCC, C, GS, AIG, BAC, FSLR, XL, MER, ETFC, MXWL, FNM, CMO, JNJ, SOV, JPM, GOLD, HST, IAR, ALU, X, TRN, CHK, MXIM, TOT, RTP, APWR, DRYS, FITB, NCOC, IPCS, F, GM, CY, MTL, HERO, SOLF, TBSI, & ESLR.

Premarket losers: RACK, ENG, LYG, GRT, TLAB, JCI, IFX, CHT, HXM, CME, ASML, WYNN, & PHG.

Other than the 2PM Treasury Budget, there's nothing else of significance on the economic calendar today. After the closing bell, attention will turn toward earnings from Intel among others.

As you might imagine, all eyes will be on the equity markets themselves and how much they can sustain the optimism and sheer momentum from yesterday. Just so you know, I'm already hearing expectations that all of last week's losses, if not more than that, will be recovered by the end of the week as the short-sellers are hunted down and killed on sight. We'll shall soon see.

Trade well out there today.