Pre Market - September 21st 2007

Futures are currently pointing to the upside. Keep in mind that is options expiration day and there may be some added volatility towards the end of the day as people establish new or get out of positions before heading into the weekend.

One thing I am going to be watching closely today is how the financial and housing sectors perform. Will there be more profit taking?

Stocks that have a strong to China are approaching overbought and/or very extended. An example is BIDU. This stocks appears to be reaching a climax and a sell off in the near future would not be a surprise.

So far there have been no significant events in the pre market so we are going to see how this options expiration unfolds as the day goes on. Don't get fooled by early buying or run up in prices. On a Friday with options expiration there is a chance of high profit taking by the close. This is what we will be watching for today to see how confident people are in leaving money in the market over the weekend.