I should not have to tell you that this is going to be a big week, a monumental week, really – not only for the country, but for Wall Street.

The forces of the universe are pulling against one another. Tomorrow at noon, the nation will gain a leader that has inspired hope in millions of Americans. Economically, Obama’s stimulus plan is viewed as the last chance to keep the nation’s economy from retreating to a full-on depression.

I will be watching closely to see if Obama’s 6-foot-1-inch body shrinks at the exact moment he places his left hand on the bible as the weight of numerous global crises is piled on his back. It will take one heck of a leadership team to get us out of this financial mess. We had better hope Obama is as good as his campaign (and the mainstream media) says he is.

With the huge events in Washington this week, Wall Street is going to be devoid of attention. With numerous major companies expected to release quarterly earnings this week, that may be the best news we heard in a while. Any widespread bad news could send the equities market plunging once again. It may be best if the results stay quiet.

What to watch

Some key items to watch this week will be crude prices, the dollar and, of course, those pesky earnings reports. The crude markets are in for a wild ride as reserves across the nation begin to fill to maximum capacity. With demand down and suppliers hoarding their oil until prices rise, we are quickly running out of room to store the energy. If supplies are not significantly reduced in the very near future, crude prices could plunge below the $30 mark. It may happen this week.

With central banks cutting interest rates and news that England is putting several billion more pounds into its banking industry, the currency markets are likely to be busy over the next few days. That means the dollar, which has strengthened recently, could make even more gains. That is good news for a country that imports just about everything it needs.

Finally, with Blue Chips like Johnson & Johnson (NYSE:JNJ) and International Business Machines (NYSE:IBM) releasing their latest results tomorrow, all eyes will be on the lookout for major surprises. We got just a glimpse of the horrific potential this earnings season possesses last week. It caused share prices to plummet across the board. Traders will be hard-pressed to take the markets drastically lower without the news of a financial Armageddon, but if it is going to happen, it will happen this week.

Some plays worth taking a look at are Johnson and Johnson and the gold market. If JNJ releases earnings of better than $0.93 per share, expect a sizeable surge, making call options a worthy investment. Even if the company misses expectations by a penny or two, do not expect a wild swing to the downside, especially after giving up a few dollars in share price last week.

With the dollar in play and investors starting to look for safety outside the less-than-lucrative Treasury market, gold is getting plenty of attention. The precious metal gave back some of its recent gains last week, but showed signs of life late in the week. If earnings season turns sour, expect a bullish run.

This is going to be a news-filled and hectic week. Investors will have more than enough to digest. Smart traders will understand the news, conceive a strategy and profit as the nation jukes and jives through this critical period.

It will be an interesting few days.

Source: The news will dominate Wall Street this week