The Knicks received some cap relief for this season by trading Darko Milicic to the Timberwolves for Brian Cardinal. The Knicks are expected to waive Cardinal in order to open a roster spot.

The Knicks also got word that the NBA is granting the Knicks $9.5 million of cap relief for the retired Cuttino Mobley. 

Three major rumors surrounded the Knicks all day and as of the day’s end, none of them are official.

One trade has Nate Robinson going to the Boston Celtics for assets unknown. Reports went back and forth all day about the specifics but up to 15 hours before the deadline, nothing is clear. Eddie House is probably a sure piece that would go to the Knicks. Along with House, there were rumors that the Knicks would also receive either Boston’s first round pick, second round pick, or JR Giddens. If Boston actually surrenders a pick for Nate, it would be an incredible trade for the Knicks. Eddie House is a guy that can play well in D’Antoni’s system and I could foresee the Knicks re-signing him tis summer. But House would be icing on the cake if the Knicks get a pick from Boston.

Nate Robinson missed the last two games due to illness and before the Knicks home game against the Bulls, Nate’s locker was cleaned out and empty. A deals seems imminent. Of all the trade rumors surrounding the Knicks, Nate being traded to the Celtics is the most likely to happen.

The Knicks are also rumored to be close to a deal for Tracy McGrady. Reports say the Knicks and Bulls are the two teams vying for McGrady’s services. Some reports say the Rockets may decide not to trade McGrady if they don’t think they are getting enough back in return. In the end, I think the Knicks will land McGrady before the 3 p.m. deadline Thursday. The holdup seems to be the Knicks reluctance to part with Jordan Hill and their 2012 first round pick.

Another rumor has the Knicks sending Al Harrington to the Bulls for Tyrus Thomas and Jerome James. This trade depends somewhat on who the Rockets trade with because Thomas would most likely go to Houstin if McGrady gets shipped to the Bulls. Thomas and James’ contracts expire after this season.

There’s a decent chance that the Knicks pull off three pretty big trades within the next 15 hours. 

There hasn’t been this much buzz about the Knicks before the trade deadline in years.

The Knicks and Bulls are both discussing possible trades for the Rockets’ Tracy Mcgrady. Read about the possible Knicks-Rockets trade. Sports Illustrated says a McGrady trade to the Knicks is about done. 

The Knicks and Bulls aren’t only competing to land Tracy McGrady, but they are rumored to be working a trade between each other. If McGrady doesn’t get traded or gets traded to the Knicks, then the Knicks and Bulls may make a trade of Tyrus Thomas for Al Harrington. Tyrus Thomas is allegedly part of the package that would be exchanged for McGrady if he gets traded to Chicago. 

Through the Sacramento Bee, Yahoo! Sports reports that the Knicks are one of three teams, along with the Nets and Grizzlies, who are interested in making a trade for the Kings’ Sergio Rodriguez. 

The Boston Herald is reporting the Knicks may send Nate Robinson to the Celtics. Knicks beat writer for Newsday, Alan Hahn, has reported the Knicks will most likely get Eddie House and a second round pick from the Celtics.

According to Wojnarowski and Spears;

The Knicks and Rockets have designed the framework of a deal that would unload New York’s Jared Jeffries, Jordan Hill and either Al Harrington or Larry Hughes for McGrady, Joey Dorsey and Brian Cook.

As talks stood on Monday, the price of dumping the burdensome contract of Jeffries – who is owed $6.9 million next season – comes with the Knicks and Rockets exchanging 2011 first-round picks and the Knicks’ 2012 first-round choice going to Houston. New York also might include a 2010 second-round pick.

The breakdown of the trade is as follows:

Knicks Receive:
G Tracy McGrady (Due $23 million in 2010 & contract expires)
F Joe Dorsey (Due $880,000 in 2010 & 2 years left on contract after this year)  
F Brian Cook (Due $3.5 million in 2010 & contract expires) 
Houston’s 2011 First Round Pick

Rockets Receive:
F Jordan Hill (Due $2.5 million in 2010 & 1 year left on contract after this year)
F Jared Jeffries (Due $6.5 million in 2010 & 1 year left on contract after this year)
F Al Harrington (Due $1o million in 2010 & contract expires) or G Larry Hughes (Due $13 million in 2010 & contract expires)
Knicks 2011 First Round Pick
Knicks 2012 First Round Pick

There may be other players involved in the discussion. 

Tracy McGrady’s contract expires after this season.

Each of the Knicks starters scored in double figures but nobody made any big baskets in the fourth quarter when they needed it the most. Knick turnovers also aided in the Bobcats’ come from behind win. Their defense also fell apart in the last quarter and the Bobcats’ defense got stingier late in the game. 

The game was a let down. When Chris Duhon leads the Knicks in scoring with 18 points, that’s not a good sign. Al Harrington only shot 4-13 from the floor and 1-7 from downtown and totaled 11 points. Danilo Gallinari was 2-7 and 0-5 from beyond the arc and had five points coming off the bench.

The Knicks can get back on track Thursday when they play the Bulls in Chicago. They follow that game up with the Clippers at the Garden on Friday. 

On a side note, only eight Knick players saw minutes in the loss to the Bobcats.

Down by one point, 96-95, with under five minutes left in the game, the Knicks stepped up their game. They ended the game on an 18-0 run and remained hot during this cold December month. 

David Lee had a double-double and Nate Robinson did not play again.

How long can this winning streak last? The Knicks have a good chance at extending it at least three more games. In their next few games they play the Bobcats, Bulls and Clippers. D’Antoni’s team is hitting shots, playing better defense, and have improved tremendously since the beginning of the season. They don’t look like the same team that began the season 1-9, a franchise worst.