Wednesday, February 11, 2009

The Kirk Report

The Kirk Report

Painting The Tape

Posted: 11 Feb 2009 12:36 PM CST

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Spin Job

Posted: 11 Feb 2009 08:10 AM CST

Spin Job
Good morning. Premarket futures are positive as Washington gears up to convince Wall Street that it will ultimately get whatever it wants and needs.

Case in point, Senator Dodd said that mark-to-market change may be part of Obama's financial rescue plan. Rumors also are rampant that as more details emerge investors will be more than happy with the plans. As they say, hope springs eternal.

Beyond the spin, we have another round of disappointing earnings and guidance (including from Research In Motion (RIMM)). Mortgage originations and applications continue to point to low demand and the trade report suggests that overall global trade is contracting sharply.

Today's economic reports are the 10:30AM EIA Petroleum Status Report and the 2:PM Treasury Budget Report. At 1PM Fed's Evans will speak on the economic outlook. And, much like yesterday, Wall Street will be fixated on Washington as both Geithner and bank CEOs will testify before Congress this morning.

We'll see if this morning's spin job on the current plans work their intended magic. My view is that people are nervous to see what would happen if this market retested (and failed) at those November lows especially with so much hope that November marked the bottom. Ironically, that's probably exactly what we need to shake out the market again and reduce sentiment to a level that would be overall constructive. At this point, we need much less hope and far more fear. We'll see if we get it.

Go make it a great Wednesday!