The one, two punch that lifted the market today - Fed news and the possible purchase of Countrywide Financial

Here we go…

Bank of America BAC(11.25 +0.00) might buy Coutrywide CFC(0.00 +0.00) - here is the link to the yahoo finance story.

Big Ben wants to lower rates - here is another link, again yahoo finance

However… American Express is warning that 2008 looks a little bleak - yahoo finance.

What does it all mean!??

Well, I think it means that the mortgage industry, specifically Countrywide is about to get shored up. This, coupled with Ben’s commentary I think has slowed down the fears that we are doing to fall apart. With Bank of America thinking about purchasing Countrywide, that speaks to the fact that this might be the worst of the worst as far as subprime and mortgages go.

Anyhow, the American Express comes as no big surprise, the consumer is slowing down a bit, and rightfully so.

Anyhow, now that the markets have closed, I’ll sit down this evening and do some work in the analysis page of thinkorswim, I’ll post a few screen shots and give you my thoughts and plan on the current RUT(385.31 +0.00) position.

Good luck, and trade smart!