R.C. Market Report 2.20

• Today: SPX came very close to touching the 750 mark, then had, in my opinion, an artificial rally (option expiration factor + government intervention) to save the market from collapsing before reaching the weekend.

• Next week: This nationalization of Citi and BofA talk reminds me of how banks failed last year. CEO of those companies came out to deny the problems, as Ken Lewis did this morning, only to succumb to the inevitable within a week. News headlines then said those banks were too big to fail and yet they failed. News headlines now say nationalization shouldn't and wouldn't happen. I think at least citi, if not BofA as well, will be nationalized. Once that story is finalized, market can move on higher. Our economy won't be in any better shape, but the market will move past it. White House needs to get something prepared over the weekend and present it on Monday. If they take their time, we can go right back down to the 750 as early as monday morning.