The Kirk Report

After-Hours Reading

• Economic worries sink stocks

• How long has it been? With the fall in the Dow today, it will be the first time it has fallen by more than 80 points for two consecutive days since July 14, 2006

• Years of global growth raise inflation worries

• Is money flow making this market go?

• Game theories: what will call for the end of cheap debt?

• We're still holding to the uptrend channel (see my chart earlier today) so unless we see more follow-through tomorrow, it looks to me just like another mild pullback. Of course, this time may be different, we just need more price confirmation

• A bad housing market is good for stocks?

• Goldilocks economy

• Tharp’s Thoughts

• Foreign investors still like the U.S.

• Fund managers go light on cash

• Much like here, gambling culture is fueling China's market

• Shanghai Nights

• How to play it safe with China

• BeSpoke crunches the numbers on country p/e ratios

• Algo trading raises stakes for market regulators

• The new policeman on the energy beat

• Putting metal to the pedal literally

• Ethanol boom won't threaten food supply

• Deals: it's the real (estate) thing

• Why aren't the private-equity firms interested in biotech?

• The value of spin-offs has increased 14% so far this year

• Fannie & Freddie are benefiting from the subprime lending debacle

• SAC ups their stake in Hot Topic (HOTT)

• Barron's takes a look at the Smith & Wesson (SWHC)

• How are you doing on your trading resolutions? Part I, II, & III

• Mark Sellers focuses on wide-moat companies with hidden assets

• Buying strategies for the current bull market

• Lazy portfolios beat S&P 500's record

• I bet this new push to overhaul options tax will have a short hang time

• Are you earning at least 5% on your cash?

• We're going to hear a lot about peer-to-peer investing in the coming year

• Value Blog reviews the online option stock brokers

• CNBC $1 million dollar stock-picking contest was a winner (at least for them)

• I learned something today. I never knew that I needed to use sunblock even under my clothing

• "A man is a success if he gets up in the morning and goes to bed at night and in between does what he wants to do." - Bob Dylan

Inflation & Interest Rates

Good morning. Following yesterday's malaise, the market has turned more defensive this morning following heightened inflation and interest rate concerns. The European Central Bank (ECB) increased its interest rates today and the report on labor costs and productivity was not inflation-friendly. According to Fed fund futures, traders now see a 12% chance the Fed will lower interest rates to 5% by year-end compared with odds of 98% just one month ago. That's quite a large sentiment change.

After the open we have the weekly EIA Petro Report at 10:30 but the key for the day is whether the buy-the-dip crowd resurfaces following a poor start to trading. Have a good day!