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The Dow30 dropped 1.2% or 88 points today while the NASDAQ Composite was more negative, dropping down 2.4%. The banks continue to be strong for 3 consecutive days now and it looks like they will carry over a little more strength to the opening on the news that C, Citibank and the Federal Reserve reach a deal for the Fed to increase their share in the bank.

If you are long any of these banks we have been discussing this week, I strongly advise closing those positions tomorrow, the highest prices may be near the opening of the regular market. We are reviewing a strategy for aggressive and experienced traders as swing short positions if banks continue spiking up sharply tomorrow (SEE below).

Oil is acting very well in the past 6 trading days reaching $45.30 as a high today and establishing a bottoming process. As mentioned in an early January report, that oil stocks should be one of the best intermediate trade of 2009. Check out the video below to continue your stock market education further.