TALF

Good morning. Following the largest rally for the market in about twenty years, premarket futures suggest we're moving higher again today.

While the economic data this morning wasn't too inspiring (Q3 GDP fell 0.5% & weak chain store sales), premarket futures pushed significantly higher on news that the Fed & Treasury remain hard at work. In the latest move, Paulson has created the TALF to target consumer lending.

Premarket gainers: FNM, FRE, GGP, BHP, IDCC, DAKT, BBL, MT, SQNM, CTRN, ABB, JNY, SBLK, SAP, ALTH, HOGS, AAUK, TRIN, SCHW, GNK, CS, CIT, & RMBS.

Premarket losers: RTP, CRK, JRJC, ACTU, AXA, IPAR, LM, ZNH, SHLD, SNE, ONXX, ZQK, SBUX, DHI, JASO, AZN, ADI, HTX, & TD.

Treasury Secretary Henry Paulson will speak at 10:AM and we also have two more reports this morning - the Conference Board's consumer confidence gauge for November and the S&P/Case-Shiller home price index for September. Given the tone of premarket trading, one would assume more focus will be on the latest moves by the government than the economic data.

Believe it or not, the S&P has now moved by 6% in either direction for four consecutive trading days and more volatile action is likely to continue. Another big up move will push us back into short-term overbought territory so be careful out there if you're pressing new long positions. In fact, I'm not entirely convinced that we're set up for another big rally today although premarket futures clearly suggest we are. I'll have to wait and see how the market responds to Paulson at 10:AM.

Go make it a great day!