Two Ways: Bernanke Fed Up With Credit Crisis
Strengthen your portfolio in good times and bad.
The focus of today's trading was mostly on Federal Reserve Chairman Ben Bernanke, who briefed the Senate Banking Committee about how the Fed is handling the credit crisis.
According to the New York Times, Bernanke told the senators the Fed is doing everything in its power to jumpstart lending. He warned the economy could further deteriorate in 2009, but would bottom later in the year with a recovery beginning in 2010.
But this is if -- and only if -- the current administration, Congress and the Fed can stabilize the financial markets, Bernanke said in prepared remarks. Action to date has helped, but "significant stresses" still "persist in many markets."
See Toddo's response in Randoms: Is Ben Bernanke a Contrary Indicator?
From the Bull Pen: We've had major rallies already this year. The key will be to watch if this one sticks. Bulls can use the ultra-long S&P 500 (SSO), but watch to see if it holds a first-hour low tomorrow morning.
From the Bear Cave: Should the bulls get their rally, bears can look to reload on insurance plays. Consider Aflac (AFL). Near $20, it could serve as a better downside entry.
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