Wednesday, May 13, 2009

The Kirk Report

The Kirk Report

Bear Hunt

Posted: 13 May 2009 10:52 AM PDT

Retail Sales Fail To Inspire

Posted: 13 May 2009 05:56 AM PDT

Good morning. Premarket futures are under sell pressure as the market digests a number of headlines including disappointment over the latest data on retail sales, rising import prices, a drop in mortgage applications, and a rise in home foreclosures.

In other headlines, Obama begins serious discussions on how to revamp compensation practices on Wall Street, Chrysler's bankruptcy might take as long as two years instead of two months, earnings from both Applied Materials and Intel (including its antitrust fine), and the former comptroller general of the U.S. David Walker says America's triple A rating is at risk. As we've seen lately, many companies are rushing to raise money at the most frenzied pace in years.

Premarket gainers: ULTR, SHPGY, GKK, REV, VVUS, ANN, VNDA, DPS, SNY, LULU, ROCK, DSTI, HELE, KNXA, DAR, AMD, HELE, FUJI, ATPG, AUTH, ZGEN, & FTR.

Premarket losers: MDCO, SOLR, AAWW, EE, STV, KRG, ACGY, CTIC, PL, LIZ, MGM, ODP, COIN,, HTE, HBAN, FLEX, NAT, ING, BBT, HBC, BCS, LYG, FITB, NCMI, RTP, WFC, AMAT, UBS, GOLD, & BMC.

At 10:AM we have a report on Business Inventories and 30 minutes later the weekly EIA Petroleum Status report.

Again, what's missing from this pullback is some technical deterioration in the major market indexes that brings back some healthy skepticism and fear. As a first step, we need to see final hour strength turn into final hour weakness and an inability for the market to rally intraday at least for a few days in a row. While I've seen this level of weakness within my screens (and some current holdings), the selling hasn't shown up where it counts most - in the major market averages. Meanwhile, May expiration day tends to be a positive one (the Dow has been up 5 of the last 7 May expiration days) and a lot traders are aware of this bias heading into the second half of the week so keep it in mind.

Go make it a great hump day.

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