U.S. Dollar Rebounds in Early Dealings > Crude Oil Drops Below $60.00 Overnight > TraderPlanet Reviewer Really Diggs It! > Jim Wyckoff's Morning Blog--Tuesday > U.S. Dollar Steady Ahead of GDP Report > Crude falls to 200 day MA of $73.50 > We are moving to www.buyingvalue.com > Jim Wyckoff's Morning Blog--Wednesday > Is Goldman Sachs Evil? Or Just Too Good? > U.S. Dollar, Gold Firmer in Early Trading > Meeting Mikhail Gorbachev: My Journey > Buy, Hold and Sell. Is That All There Is? > small, consistent trading profits add up > Break Even Before the Holiday - Happy 4th > Russia : Mobile Telesystems - the long case > Grain Market Analysis > Mentor Needed In Times of Uncertainty > U.S. stock indexes are slightly higher > BJ's Wholesale Sales Rise - Analyst Blog > Markets Quiet in Early Trade; Awaiting GDP > Banks (finally) offering help to homeowners > keeping risk exposure under tight control > Crude Oil, Gold in Corrective Bounce Early > Infineon Swings to Profit - Analyst Blog > Iron Condor Nesting in Brazil Index ETF > Rationale for Pre-Holiday Payroll Release > Stock Indexes, Bonds Firmer in Wake of FOMC > Gold selling off heading into end of 09′ > Gold Steady, Crude Firmer in Early Dealings > Building a nice bear flag on the EURUSD > The Ship of State Arrives, and it's Titanic . . . > Sterling: the futures converging to cash > Stalking a bullish trend reversal in TLT > Bloomberg:China Copper Imports to Halve > U.S. Stock Indexes Weaker in Early Dealings > Who will be the next Secretary of Treasury?? > Economic Data Sends Market On A Wild Ride > Earnings Trick Fools Only Knee Jerk Dummies

MysteryTrader's Commentaries

Jun 22 2006

Earnings Trick Fools Only Knee Jerk Dummies

by MysteryTrader
Overall Rating: Average rating is: 0 stars.

Wednesday’s last hour fade away sets the stage for further stock price weakness.

The ominous specters of inflation, higher energy prices, and ever rising interest rates should weigh on stocks.

Better than expected earnings reports are old news by this time. Better than expected earnings are EXPECTED. Wall Street analysts low ball earnings estimates in order to give stocks a boost. The game is old hat, and the earnings trick is not working beyond a few minutes immediately after the report. After knee jerk dummies react, the rally is over. Wednesday’s pop in Morgan Stanly after the blowout earnings news lasted only 35 minutes.



Tags: economic-event
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