The Kirk Report

Correction Mode

As an astute observer of the obvious, I have to say the market remains in a full-fledged correction mode.

The premarket futures gave one of the most erroneous reads I've seen in some time and on balance my research and trading gut feel suggest that holding cash and/or putting out a few speculative shorts on a bounce, remain the best options for our buck. Clearly good earnings reports over the coming weeks could turn the tide the other way, but for now rolling stops and a hefty amount of patience remains the name of the game.

I wish I had better news to report on my first day back, but as you know - I call'em the way I see'em. Have a great evening!

The Mirror Opposite

On just about every level I see, we've have a mirror opposite of the type of market we saw in the final week of October.

Everyone is worried about the upcoming earnings season, which I personally think is a net positive. Yet, I'm having difficulty finding the type of setups that encourage me to put money back in play.

Until we see Mr. Market act like the bad news is really priced in, I don't mind sitting in cash. And frankly, given what I'm seeing out there today another revisit back to Dow 10K seems not only possible, but probable.

10 Charts

Upon my arrival back to the trading turret, here are 10 stock charts I find more than a little interesting:

Special Insights

• Few stocks are on the trading radar this morning as I play catch up. But, when I have some free time, I will be taking a closer look at ARBA, BCRX, IRIS, KBAY, ADBL, MXO, MTIX, & YHOO


• Inflation gauge at highest level in over 5 years


• Betting on a more aggressive Fed


• Investors who can overcome their short-term myopia stand to gain huge amounts over the very long term.


• Bull or bear, it's all in eye of beholder


• "Hard work has made it easy. That is my secret. That is why I win." - Nadia Comaneci


• This week is severely back-end loaded on the economic front with most of the big news scheduled for Friday


• Bird flu fight lifts biotech stocks


• The Economist offers an interesting perspective on China and the commodity markets


• The Great Canadian Diamond Quest


• For investors, coal is the new oil


• During my road trip, I found Google Reader quite useful


• That's quite a reversal in Natural Gas Services (NGS)


• Few investors can resist the temptation to trade often


• "With the Dow back below the 10,300 mark, we are back to where it was in December 2003, and where it was in mid 2004. And again in the spring of 2005. We aren't going much of anywhere in the markets, and we haven't been for some time." - Paul Kedrosky


• Markets take the long route to nowhere


• Jeremy Siegel looks at investing in a risky world


• The HotSpots Report


• Even a blind squirrel finds an acorn once in a while


• Everyone is chattering about the notable declines in home prices across the country


• Another trading maxim - you shouldn't short charts that you can't ski


• Credit crazy? The average number of bank cards per cardholding household is 19.3 (eight bank cards, eight retail cards and three debit cards)


• High gas prices send shoppers to the web


• Businesses will rely more on instant messaging over the next five years


• Sometimes patience isn't rewarded


• Top 50 stocks under $20


• Psychiatrist, scientist, & stock and options trader


• It's time once again to review the winter heat conservation strategies


• Rent my DVR


• My motto for this week


• "The secret of success in life is for one to be ready for opportunity when it comes." - Benjamin Disraeli

The Wrong Foot

Good morning. Following a rough week for the market, premarket futures are higher this morning as investors shift their focus to third quarter earnings reports.

To say the least, last week was a good week to be away on vacation. The -2.6% loss in the Dow, the -2.7% loss in the S&P 500, and the -2.9% loss in the Nasdaq has certainly started the 4th quarter on the wrong foot.

Yet, from everything I read and hear, the vast majority still would like to see a larger pullback before putting serious amounts of money to work ahead of the long-awaited 4th quarter rally. Today's premarket futures indicate that there is at some buying interest out there following last week's decline.

While I stayed up on the current market events and shared a few thoughts with members last week, my #1 goal is to get my feel back for the tape and figure out my next move. It's nice to be back.