Why It's A Bull--And Bear Day--On The Street

Both the bulls and the bears can claim to be happy so far today. We have had a rally, and no less than TWO attempts to sell into it. Stocks are holding modest gains so far.

Bulls remain hopeful that:

--one more systemic risk has been reduced

--markets can focus more on earnings

--dollar rally continues

Bears say that if Fannie/Freddie was the only variable going, it would be 100 percent positive, unfortunately for the bulls, its not that simple.

Bears say that this event:

-- does not change the economy/ biz cycle

--does not eliminate the need for home prices and inventories to come down

--is unlikely to be a bottom (bulls said that about Bear Stearns!)

The bears note the following about trading patterns today:

1) regional banks, while up, are not up much: many have significant exposure to Fannie/Freddie preferred stock, and may have additional losses;

2) Lehmanis again under significant pressure (down 13 percent) as they try to raise additional capital;

3) commodity stocks are for the most part again down today;

4) big momentum tech stocks like Google, Rimm, Appleand Oracle are all down today.


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CNBC's Names in the News:

Freddie Mac

Fannie Mae


Questions? Comments? tradertalk@cnbc.com