Naked Hedge Fund

Well we are in the 9th inning of 2009 Q2 Earnings season with 91% of the S&P already reported. As expected the street ramped up on some classic lines such as “less bad” and “better than expected” even though the numbers were relatively dismal if you look at the history of earnings.

Howard Silverblatt (S&P Senior Index Analyst at Standard and Poors) had a great quote associated with the earnings that have been coming in:

But getting less worse is different than getting better, and significantly different than being good. Stats can be misleading-Fin’ls are up 244% from Q2′08, but are still down 85.6% from Q2,’07. The lack of charges (write-offs, impairments, layoffs, write downs,…) has helped and is a positive sign, but sales remain key – you can just cut so much and for so long; consumer spending is key, with confidence right behind it.

In the post is a graph showing the earnings table of the past 10 years with P/E ratios and Bullish and Bearish points to consider.

Since Ive had some positive comments about the historical earnings charts that I have been putting up I decided to put up all the upcoming major financials on a post here so that you can reference it all together easily.

Sorry for this rant, but Im sick of everyone in the media concerning themselves with the facts that GS made a ton of money and are going to pay their workers well.

All the conspiracy theories and websites dedicated to such are probably true, but where does it all get you? Lets talk about relevant information and by relevant I mean makes us money.

This upcoming Tuesday morning (7-14-09) Goldman Sachs will be releasing their earnings for Q2 2009.The importance of these earnings cannot be overblown in that the overall market basically lies in the hands of these financial earnings. The market always has and always will follow the financial sectors lead.

I put together an analysis with charts showing both fundamental and technical analysis for your use.

Graph showing a bit of history with Alcoa’s earnings and the estimates of the upcoming earnings to prepare for tonights kickoff.

Q2 Earnings primer with a historic look at P/E ratios and where we are.