Most long time readers know that I basically crawl into a shell at earnings season till AAPL reports. I'm a trend dude, and I like the major indexes (obviously SPX and the E-mini) avoiding the individual equity action. It is not that I can't trade stocks (I sometimes do), it is that I prefer to focus or specialize on the broader markets.
Earnings season used to be a joyful time. Markets used to follow fairly predictable cycles, you know, the ones you learned in your economics textbooks years ago. Now post manipulation or post 2008 FASB/regulation elimination things have changed. Earnings are now a not so carefully correlated dance between the Fed, banks and government's wishes that represent the land of unicorns and fairy tales.
Pre-QE if a company cut guidance it was a big deal and the market reacted appropriately breaking out the big black paddle and taking it to the backside of price for said company. A good example of this is with Cummins today. In a non-QE environment there is no levity or trampoline effect that lifts all ships sinking or not.
Showing posts with label earnings. Show all posts
Showing posts with label earnings. Show all posts
Tuesday, July 10, 2012
Morning Charts 07/10/12 $SPX $ES
MFG, PFG what's the difference? Well, we'll see just how well they are connected up the ladder. We all know Don Corzine was made of teflon. Will the same non stick coating apply to the PFG executives? If you have no idea what I'm talking about, there was another client fund issue yesterday, this time it was only $220 million that went missing (just a billion short of the last incident - Oh, and JPM is in the background once again). PFG Is Now MFG(lobal) Part 2 As $220 Million In Segregated Client Money Has Just Vaporized
This morning I could not put it any better than this post from Zero Hedge, “SSDD. Europe has a late night conference, regurgitates stuff, gives no details, makes lots of promises, peripheral bonds tighten only to blow out, etc, etc, etc. Seen it all before. Unlike a week ago, Spanish bonds, when Spanish bonds ripped by 1%, this time we can barely muster a 25 bps move tighter, with the 10 year "down" to 6.82%. It was 6.25% a week ago. Expect the blow out as has been empirically proven time and again. Hint: there is no magic money tree nor is there a magic collateral tree.” Overnight Action: European Knee Jerk Fade
This morning I could not put it any better than this post from Zero Hedge, “SSDD. Europe has a late night conference, regurgitates stuff, gives no details, makes lots of promises, peripheral bonds tighten only to blow out, etc, etc, etc. Seen it all before. Unlike a week ago, Spanish bonds, when Spanish bonds ripped by 1%, this time we can barely muster a 25 bps move tighter, with the 10 year "down" to 6.82%. It was 6.25% a week ago. Expect the blow out as has been empirically proven time and again. Hint: there is no magic money tree nor is there a magic collateral tree.” Overnight Action: European Knee Jerk Fade
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