Pre Market - July 25th 2007

Good Morning Rebels...

Futures are up this morning as a reaction bounce from yesterdays huge selling event. The question is just how strong will the reaction be? Can it overcome the sentiment that the financial and housing sectors just seem to keep getting worse? Yesterdays reaction to the news of problems spreading into the prime lending arena is a signal in my view that the anxiety levels in the market is extremely high and if this financial and housing woes continue to get worse than the market is going to go past just the occasional panic attack and will develop into a full blown depression. We have to trade with caution...

At 10am we will have existing home sales data released. Watch for more volatility in the market today. And of course we have a big show today when Apple releases their earnings. I said last night that my view is a red apple will be the result. Don't go shorting Apple on my view of this. Apple is too risky to trade in either direction here. I would wait until after Apple releases their data before deciding if you want to own Apple for a long term trade. If you buy ahead of earnings you are gambling and I leave gambling for Vegas.