Daily Futures Commentary April 6, 2009

Monday April 6, 2009

Traders will be approaching the start of this week with caution because of the religious holidays late in the week. We could be looking at heavy volatility early in the week which tapers off as we approach the holidays, or we could see a steady market without much movement.

Still on the mind of some traders today is last week’s automaker news. Many are wondering how much power the Federal government is going to continue to exert over the banks going forward given what they did to GM and Chrysler last week. The Federal government basically got the CEO at GM fired and refused new aid to the other two automakers.

Traders want to know if this is going to be a trend with the government. In other words, will the government try to exert its force on banks and financial institutions receiving government money? Will it try to get key employees fired or try to influence the board of directors? How much will it try to influence the day-to-day operations?

After witnessing what happened at GM, a few major banks want to give back …
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