This is an action packed week:
Wednesday – Consumer Price Index (CPI), Empire State manufacturing index, industrial production and Fed Beige Book.
My guess is we’re going to get “better than expected” earnings from Government Sachs and the other financials. Don’t be surprised if we get a number of prereleases from banks that report later in the week or during the following week. The Wells Fargo news is going to press many of these companies to show their cards and prove that they too are “strong”. Unfortunately, this is the result of more government tinkering with the market so this market remains too risky to short. My risk indicators haven’t been this elevated since the bear market began, but you just can’t get in front of the government’s games.