Wall Street/Investors will look to the government in the week ahead, with the bank bailout plan postponed until Tuesday and stimulus package in focus on Monday. This could be a wild beginning to the trading week. It is hard to say how the markets will react to the vote and the amount in the bill itself. I would stay light and see if we get follow through to last Friday’s rally. I expect we might get out of the gates green but fade until the BIG VOTE!
Tuesday: The government’s wholesale inventories report for December is due shortly after the start of trade. Inventories are expected to have fallen 0.7% after falling 0.6% in November. (and Geithner’s big TARP plan)
Wednesday: The December trade gap is expected to have narrowed to $37.0 billion in December from $40.4 billion in November.
Thursday: The number of Americans filing new claims for unemployment is expected to have dipped to 610,000 from 626,000 last week, which was a 26-year low.
As always if you are trading stay nimble and watch for wild swings.
