Futures are up sharply this morning after news surfaced late last night that the government will increase its stake in Citigroup (C, $2.10, up $0.15) to as much as 40%. That quote is in pre-market trading which means the stock is up 8% before the opening bell rings.

Futures were pointing towards a lower market opening Sunday evening but that all changed once Wall Street got wind of the Citi news. Here is the snap-back rally I told you to watch for in last night’s Weekly Wrap and if things hold, we could have a pretty big day.

With just over a hour to go before trading starts, the Dow futures are up 61, Nasdaq futures are higher by 11, and the S&P 500 futures are up 8. As far as certain stocks we are following, Bank of America (BAC, $4.20, up $0.41) is up 11% and Research In Motion (RIMM, $39.55, up $0.50) is up slightly but still under $40. The Spider Gold Shares (GLD, $97.00, down $0.80) are slipping 1%.

If you didn’t get out of the RIMM or GLD trades on Friday after they provided 100% returns, you may want to close the positions today if they can get back to those levels.

Rick Rouse