Daily Market Assessment

Was it a last grasp?

Yesterday was a solid continuation of the bull run in the market. Citigroup's numbers were a reflection of their aggressive cost-cutting plan, and the market liked that. And when Bank of America and J.P. Morgan announced their bid for Sally Mae, the market liked that even more. What's not to like. Today, I think, we will find out.

We have several important announcements today, and I think they will be viewed by the Street as evidence that any rate cuts will be postponed until next year, which we don't like. The current rally has had a rate cut priced in, in my opinion. When it disappears, or moves further away, it should cause a lot of so-called profit-taking, as the Big Money rotates back to consumer goods and financials. That should start today.

Summary: Short-term bullish (just slightly); Long-term bullish.