Will The Early Bounce Last Ahead of Holiday Weekend?

The market is getting a bounce in early trading. The Philly Fed report came in above expectations, which gave the market a boost. Also, bellwether GE was upgraded to Buy at Merrill Lynch (MER).

The dollar is gaining today, posting its biggest one-day gain vs. the euro since Aug. 04. This is putting additional pressure on both oil and gold, as well as commodities in general. Oil is trading down -3% to just below $100, while gold is down an equal amount near $925.

I am willing to let this commodity correction play out, but will likely look to add some exposure and get back into my ag trade at lower prices.

Asia was down overnight, with large declines in Hong Kong and Australia. Japan was closed. The 10-year yield is stable at 3.37%.

The analyst from Punk Ziegel who warned about Bear Stears believes the financial crisis is over, and that although there will be more negative developments, they will be meaningless.

He says an environment has been created that will pump profits into the American banking system. He believes the last time an opportunity of this nature existed to buy bank stocks this cheap was in 1990. The next time will be in 20 years. He believes this is a "once in a generation" opportunity. Interesting.