Cliffs Notes for Q1 Earnings Season
Posted by NHF | Posted in Finance, Stock Technical Analysis | Posted on 10:21 pm April 6, 2009
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As preparation for the upcoming earnings season I put together a 3 part approach to evaluate the current market conditions.
The 3 parts are :
- Technicals
- Fundamentals
- Gut Feeling
1. Technicals – The market is at extremely overbought conditions on both the daily and weekly basis. The weekly overbought hasn’t been this overbought since the August 2008. Charts on document below. (Bearish)
2. Fundamentals – Earnings are very sketchy. Last quarter was the first time a negative earnings quarter was ever reported in the history of the S&P index. P/E ratios are still high even with the drop in the market price. Click on the pdf below for earnings info. (Bearish).. If the banks really take full advantage of Mark to Market changes with shady numbers quoted for next quarter (Bullish)
3. Gut Feeling - Wall street loves earnings season and has some wind at its back with the recent rally. Every report will be viewed as “Better than expected” and will beat the street by a penny giving foder to the bulls to keep pumping the market higher. (Bullish)
Overall this earnings season is going to be very interesting with all the new rules and reactions. What are all of your thoughts going into this??
Click the PDF link below for more details and charts that I put together.
(2 votes, average: 5.00 out of 5)
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Looking like Alcoa is starting things off for the bear.
Goldman Sachs and Intel on Tuesday are going to be big reports for some insight.
Unbelievable how the street can spin bad results. Just like i was saying in #3 of the 3 approaches above.
Classic surprise earnings release by Wells Fargo! Tack up another point for #3 of the approaches above… And a point for #2 with the banks playing with their numbers.
penny stock picks…
great post and nice site
Glad I found it….