The FDIC is considering tapping its emergency line of credit with the Treasury. FDIC Chair Sheila Bair recently hinted after a speech at Georgetown University that all options are on the table when it comes time to replenish the dwindling Deposit Insurance Fund. We’ll find out more in the next few weeks after the FDIC board of directors meets.

”Despite the bad news the market is confused,” says Crisis Strategy Alert senior analyst Charles Delvalle.
On Monday the futures were down over 80 points. Yet somehow, the market ended the day in the green.

World stocks climbed strongly on Monday for a fifth session running, lifted by hopes that the U.S. economic downturn may be bottoming out as investors sought to take advantage of cheaper equities.

The Financial Select Sector SPDR (NYSE: XLF) has rallied over 40% from its low on March 6 through to last Thursday’s higher opening. The price action last week has triggered a half-day buy signal, which means that it should make at least a three-wave move to the upside.

Gold declined on Wednesday, extending the previous session’s 3 percent losses, after Federal Reserve Chairman Ben Bernanke’s reassurances on the outlook for inflation and the economy cooled risk aversion.

It’s only the fifth day in June, but already investors are getting nervous about end of quarter earnings reports. There’s still almost a month to go before most public companies close out their books for the second-quarter, ending June 30.

A recent article in the Wall Street Journal reminded me of an old Sunday school lesson from years back. It applies perfectly to the stock market…”the first shall be last.”

Good morning Australia. It’s another triple digit mid-day decline on the Dow. Is this the Obama Rally?