The Kirk Report

A Collective Vomit

Well, that was fun. Not!

The bulls promptly vomited yesterday's hard-fought gains and the carnage was both intense and disappointing. If anything, this reversal of the reversal proves that the bears are in complete control.

Unlike yesterday, we do have some signs in after-hours activity that not all is wrong in the world (see Google (GOOG) & SanDisk (SNDK)) but perhaps I'm just having a few delusions of grandeur. Aren't option expiration weeks fun?

We'll saddle up tomorrow and see what Mr. Market hands us next. With the "C" word making the rounds, at least we won't be bored in the short-term. Have a wonderful evening!

The Slippery Slope

Did the bulls forget to show up today? If we continue going down this slippery slope, I'll be a little more than a bit concerned.

We're simply not seeing the rotation out of energy into other areas of the market as we should. People seem to be building their cash positions and staying on hold. After some of the declines I've seen in the energy space, I can certainly understand why.

Watching The Bears

The bears are giving it their best shot to take back control and so far they're doing a mightily impressive job. Still, I suspect the bulls aren't going to roll over and play dead this afternoon. It's just a hunch, but I sense we're in for an interesting afternoon again.

I'm doing very little other than watching the hedge funds push up CBOT (BOT) like there's no tomorrow! See you after the closing bell.

Quick Hits

• The bulls are doing their level best to keep the pressure on


• A few more reasons to be bullish


• Earnings are good but the technicals aren't


• Greenspan indicates no pause in raising interest rates


• October always brings back memories of the crash


• Stocks of interest this morning? XWG, TOMO, ABGX, CTLM, SNMX, PRLS, SIMO, BABY, KNOT, & NTST


• More than a few readers have recently told me they've really enjoyed reading Trading in the Zone by Mark Douglas


• Buffett signs $7 million dollar deal for first-ever authorized biography


• Rate your trading software!


• Your emotions are your enemy, so get over yourself!


• Sad but true, we don't always see what we think we see


• The mighty spreadsheet can help you track your performance


• The power user's guide to Firefox


• Every half-hour I backup my critical files on my USB flash drive


• "At first, dreams seem impossible, then improbable, and eventually inevitable." - Christopher Reeve

Window Of Opportunity

Good morning. After yesterday's timely reversal, the herd will be on edge more than normal in order to determine if a tradeable rally is at hand or we just experienced an garden-variety oversold snapper.

Like yesterday with Intel (INTC), in the early going investors seem to be taking a cautious approach following a few disappointing reports and guidance from the likes of eBay (EBAY) & Pfizer (PFE). Still, the vast majority of reports continue to exceed expectations. So what else is new, right?

Good earnings reports don't necessarily require that stocks have to rally, but it does set up an environment in which the bulls do have a window of opportunity, albeit a brief one. Most of the power of the upside move will come from the short-sellers, so it will be fairly important for the bulls to keep the heat on. If the bears go to work in the first hour, it will be an important tell for us to see if the bulls can manage another afternoon snapper.

Later this morning we have the leading indicators report, more earnings reports, as well as stock expiration tomorrow. I also think uncertainty over Hurricane Wilma will also play a role, although a minor one from the market's standpoint. Have a great day out there!