Pre Market - July 24th 2007

Good Morning Rebels,

The big news this morning is earnings. The biggest one that will impact the markets today is from CountryWide (CFC). They missed earnings and cut their forward guidance. CFC is in the mortgage business so this is one more knife in the back of the financial sector. I see mortgage lenders and big banks having a down day today.

AT&T (T) reported this morning and they beat estimates but in the view of the investors it was "not enough". AT&T is trading lower in pre market. It is my view that investors were looking for bigger iPhone talk in their earnings. I don't think AT&T gave the investment community a good feeling about how the iPhone is working out for them. And on that note, this morning CIBC analyst has conducted a study to analyze how the iPhone sales have been doing. Their findings were that most stores had a good inventory and the demand for the iPhone is in a significant decline. Their analysts visited Apple stores and observed that most visitors were not looking at the iPhone and the demand was "thin at best". This news is causing Apple (AAPL) to sell off this morning in pre market. I said last week that $140.00 may be the short term top for Apple, and I did say "$140 give or take a little". Apple traded up to $ 145 but could not hold it and closed down to $143.70. In pre market Apple is trading down to $140.22. Is this the end of the Apple iPhone hype? To some investors it is and is why we are seeing the pull back in pre market. With Apple releasing their earnings this week Apple will be one of the most volatile stocks on the day of their earnings. Grab some pop corn and watch the trading on Apple on that day.. it will be a wild show.

I will be closing the ALGN swing trade today. They release earnings tomorrow morning and I'm not risking the gains to a potential earnings miss.

Futures are down and I see a volatile trading day today.