Emergency Rate Cut

Fears of a recession have sparked a global selloff and, like clockwork, Bernanke tries to save the U.S. market with a 75 basis point cut amid rumors of significant fund redemptions, hedge fund failures, margin calls, and the like. As you know, I think it wasn't enough of a rate cut even though premarket futures are trying their best to bounce after the news.

Premarket gainers: CMCSA, PSUN, VMSI, OPWV, and SYMC.

Premarket losers: NSTR, USBE, NOEC, ASTIZ, SEED, EPEX, SOLF, CSUN, JRJC, COIN, AKNS, BIDZ, SYNA, RGEN, ASTI, TITN, PWRD, ESLR, FSLR, MELI, QLGC, SILC, IDCC, FMCN, GRRF, CSIQ, ARTW, NEOC, AAUK, GIGM, CROX, CALM, HOKU, JASO, CTDC, SPWR, NDAQ, MDR, SOHU, CHNR, LOGI, PEIX, SGMO, ACH, DRYS, CLWR, SINA, PCLN, SDTH, LDK, SWKS, ENER, JDSU, CREE, QGEN, and ALVR.

If you've taken enough steps to increase your defensive posture, focus on capital preservation, and have kept your losses small, you're in good shape this morning no matter what happens. Already, I'm hearing that the Fed will cut rates aggressively again when they meet next week, so it will be telling to see how much the market can stabilize, if not rally amid these moves. Expect to hear lots of chatter from the bears about it is "too little, too late" and that the Fed is now in panic mode and for good reason.

Like usual, tune out the noise and let the market itself show you the way. Let's make it a great day!