Fannie, Freddie, GE, & Oil

Good morning. Higher oil prices and expectation for the nationalization of Fannie and Freddie are depressing premarket futures after GE reported an inline but overall disappointing earnings report. In addition, global tension over Iran continues to heat up.

Premarket gainers: HPC, FPP, PDO, TGC, WYNN, MPEL, HL, PBT, ROYL, XCO, SWC, PQ, TMA, BUD, LVS, RMBS, CRBC, MA, MGM, BABY, DRI, COL, DTPI, & NCOC.

Premarket losers: FNM, FRE, LEH, RY, COLB, WM, WB, LWSN, FITB, BAC, ACE, CTX, AMAT, WCG, INFY, CSIQ, LEN, ELX, UAUA, AMKR, NLY, NETL, ENER, CAL, CMO, BZH, & PHM.

At 10:AM we have the consumer sentiment report and at 2:PM the Treasury Budget neither of which should be market movers.

Difficult as it is to believe, simply not closing at new lows today would be a major accomplishment for this market. That's how bad things are out there right now. At the same time, those of us who want a better market are rooting for more declines than positive action at this point in order to take what downside risk remains out of the market. The more we overshoot to the downside (providing that you also have cash on hand and have managed your risk up to now), the better. We need to find levels that the forced selling dries up, which apparently hasn't happened yet.

In spite of this market, go make it a great day.