The Kirk Report

Stop the Cheerleading

The bulls held the market in the green after a series of economic and earnings reports were better than anticipated. The Dow even briefly move above 10K, leading some to believe that the past couple of weeks were only just a brief nightmare.

A fair amount of cheerleading is going on these days. The bulls say that stocks are a buy now and have come down to attractive buy points again. The bears say this is just another oversold bounce that will yet again provide them with the opportunity to coin money after this one or two day rally disappears. No matter what your view, cheerleading is a complete waste of time. Instead, spend your time concentrating on the trades themselves and let the market do what it wants. It doesn't care if you're rooting against or for it so don't waste your time cheerleading or listening to others who engage in it.

As for my two cents, I'm actually a bit encouraged by the tape. Some momentum which has been lacking for several weeks now is starting to heat up in a few selective areas and I think some money can be made out there on the long side. While we may or may not have hit a final bottom, the tape indicates a tradeable rally is at hand. Fight it at your own risk. As always, I hope your kicking butt and taking names. See you tomorrow.

George Soros

According to Bloomberg, Soros Fund Management LLC, the hedge fund headed by billionaire George Soros, sold shares of oil companies, including ChevronTexaco (CVX), in the second quarter as crude moved toward record highs. On other hand, Soros invested in companies including Microsoft (MSFT) and Sun Microsystems (SUNW) according to regulatory filings.

Costco

One of my favorite parts in the movie Wall Street is where Gordon Geckko complains over the telephone that if some guy owned a funeral parlor people would stop dying. How true that is sometimes. On other hand, apparently Costco (COST) is finding new markets to dive into - the latest is selling funeral caskets in its stores. No wonder their stock price is near its 52-week high! READ

Pier One

So, Warren Buffett has bought a substantial stake in Pier One (PIR). To be sure, Buffett isn't buying on the technicals, as they look downright crummy. It is also interesting to see a buy from Buffett in the retail sector with reports that the consumer is starting to cut back. I guess this stock is seen as a traditional turnaround value play because the stock is relatively cheap. Take a look:

Giving Something Back

Most of the people who I know do their best to give something back to their community either in the form of volunteer service or through monetary donations. If you fall under the latter, Peter Bartosiewicz's article at the New York Times about how donated dollars turn into pennies after administrators take their cut is a worthwhile read. In it, Peter recommends using websites like CharityNavigator to see which charities are best at making sure your dollar actually is used well. At the website, they also have a top ten list of charities with high admin costs as you see below:

Debt: America's New Addiction

I've been talking about this topic for some time now, but I simply can't let it go. Debt is not a friend, but the enemy. Sometimes it is a necessary evil due to unforeseen circumstances such as a loss of a job, health problems, or some other financial stressful situation. But, that being said, Americans seem to be addicted to debt in ways that are more a matter of choice than circumstance. Stacy Teicher at The Christian Science Monitor takes closer look at America's growing addiction to debt. READ

Found in the Footnotes

Like many investors, I rarely have the time or motivation to read the footnotes. But given the stuff that Michelle Leder continues to find in them, I'm going to have to start. In yesterday's installment at her blog, Leder uncovers a gem at WebMD (HLTH). READ

There Are No Perfect Rallies

It's funny to me how people are reacting to this rally. Those who missed it, which is the vast majority, say that you can't trust the rally because of the low trading volume. The problem is that I've never seen a rally which didn't have a problem or two in some manner. There are no perfect rallies out there. Just profitable ones if you're positioned correctly. So if you're waiting around looking for one to show up, you might as well pack your bags and give it up.

To much my pleasant surprise, we're starting to see the return of momentum players which have been absent for weeks now. Stocks on my trading radar this morning include VIP, NVEC, MTCH, WIND, CHRD, VITR, DKS, TOO, MALL, PHM, CCJ, SWIR, and MBT.

Day Two

Good morning. We're starting the day on the right foot following a number of positive economic and earnings reports. Oil has fallen back, overseas markets were firmly higher, a good report from Home Depot (HD) is helping out, as well as good CPI, housing starts, and building permits. In other words, we're good so far. There will be several potholes ahead, but given the rash of bad news we've had to sort through for weeks now, it does feel good to have a bit of good news to concentrate on. With higher prices it would be nice to see trading volume pick up, but given that this is a vacation week for so many, that will be a very tall order to fulfill.