Friday, July 17, 2009

The Kirk Report

The Kirk Report


July Expiration Day

Posted: 17 Jul 2009 05:56 AM PDT

Good morning. U.S. stock futures are pointing lower as the market digests key earnings from General Electric, Bank Of America, Citigroup, IBM, & Google. Overall, the reports were not as swell as we've seen from others this week providing the market an excuse to take some profits (at least in premarket trading).

Other headlines in focus include another rise in both housing starts and building permits in June, 13th month high for China stocks, comments from Roubini, constructive skepticism over the rally, a potential lifeline for CIT, a likely search ad deal between Yahoo & Microsoft, Congress tries to save auto dealerships, a large decline in video game sales, and a Senate committee has approved the new health care bill.

Premarket gainers: BCRX, NVAX, CIT, TPX, C, CBST, YHOO, IVN, WBS, FRE, MAT, SAY, BDSI, IBM, GILD, HGSI, ADCT, OPWV, HOV, PHM & TRGT.

Premarket losers: MELA, CEDC, AKAM, FHN, BMI, OCN, ROSE, NG, OFIX, ACGY, SCHN, GOOG, FITB, PBCT, CROX, HBAN, ESLR, BUCY, VCLK, TKLC, & EK.

It's option expiration day and as I mentioned earlier this week there's been a negative historical bias to this day in the past as the Dow has been down 6 of the last 8 years. As surprising as this week's rally has been, it would be even more surprising to see continued strength today (at least on a large scale) and again on Monday given the overbought conditions and overhead resistance at the June highs. While it isn't impossible, the odds are against us to see continued strength at the same pace we've seen over the past four days.

Later on this morning we'll do another real-time chat if you're interested. See you then or, if you're starting the weekend early, have a wonderful weekend.

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