Global Economic Intersection
Advertisement
  • Home
  • Economics
  • Finance
  • Politics
  • Investments
    • Invest in Amazon $250
  • Cryptocurrency
    • Best Bitcoin Accounts
    • Bitcoin Robot
      • Quantum AI
      • Bitcoin Era
      • Bitcoin Aussie System
      • Bitcoin Profit
      • Bitcoin Code
      • eKrona Cryptocurrency
      • Bitcoin Up
      • Bitcoin Prime
      • Yuan Pay Group
      • Immediate Profit
      • BitQH
      • Bitcoin Loophole
      • Crypto Boom
      • Bitcoin Treasure
      • Bitcoin Lucro
      • Bitcoin System
      • Oil Profit
      • The News Spy
      • Bitcoin Buyer
      • Bitcoin Inform
      • Immediate Edge
      • Bitcoin Evolution
      • Cryptohopper
      • Ethereum Trader
      • BitQL
      • Quantum Code
      • Bitcoin Revolution
      • British Trade Platform
      • British Bitcoin Profit
    • Bitcoin Reddit
    • Celebrities
      • Dr. Chris Brown Bitcoin
      • Teeka Tiwari Bitcoin
      • Russell Brand Bitcoin
      • Holly Willoughby Bitcoin
No Result
View All Result
  • Home
  • Economics
  • Finance
  • Politics
  • Investments
    • Invest in Amazon $250
  • Cryptocurrency
    • Best Bitcoin Accounts
    • Bitcoin Robot
      • Quantum AI
      • Bitcoin Era
      • Bitcoin Aussie System
      • Bitcoin Profit
      • Bitcoin Code
      • eKrona Cryptocurrency
      • Bitcoin Up
      • Bitcoin Prime
      • Yuan Pay Group
      • Immediate Profit
      • BitQH
      • Bitcoin Loophole
      • Crypto Boom
      • Bitcoin Treasure
      • Bitcoin Lucro
      • Bitcoin System
      • Oil Profit
      • The News Spy
      • Bitcoin Buyer
      • Bitcoin Inform
      • Immediate Edge
      • Bitcoin Evolution
      • Cryptohopper
      • Ethereum Trader
      • BitQL
      • Quantum Code
      • Bitcoin Revolution
      • British Trade Platform
      • British Bitcoin Profit
    • Bitcoin Reddit
    • Celebrities
      • Dr. Chris Brown Bitcoin
      • Teeka Tiwari Bitcoin
      • Russell Brand Bitcoin
      • Holly Willoughby Bitcoin
No Result
View All Result
Global Economic Intersection
No Result
View All Result

Earnings Season Is Starting to Look Like a Disaster

admin by admin
July 27, 2013
in Uncategorized
0
0
SHARES
6
VIEWS
Share on FacebookShare on Twitter

by EconMatters, EconMatters.com

Earnings season is starting to ramp up, and its abundantly clear that we have a problem. We had this occur last year as we were pushing all-time highs in markets, and the bulls wouldn’t let stocks drop even as a couple of misses started happening. Then on a Friday before option’s expiration, all hell broke loose because there were so many misses and stocks getting killed that the carnage was too much to fight, and the bulls capitulated.

This earnings season is much worse many companies are missing on the revenue side, companies haven’t figured a way to manipulate this portion of earnings as easily as the EPS number via stock buybacks. But things are so bad major equity bellwethers like Google, Microsoft, and Intel are just plain missing by any quarterly metric.

The bulls will try to counter this weakness by pushing up other stocks, but this can only last so long after about 30 misses, and the entire market just falls off a cliff because there are so many shorts attacking individual earnings misses on stocks, that the cumulative effect overwhelms even the most optimistic of bulls.

♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣

Reading: Gasoline Supplies Highest for July Period Since 1992

♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣

By my count we have about 10 misses this far into earnings season, only 20 more to go before the real selling takes over in markets! Earnings season used to be good for stock prices, and it is because so many firms need to manipulate their EPS number, that they are all busy bees buying up shares to beat their awful EPS target number by one cent at all costs. They know where they stand after the quarter, now they start buying back shares like crazy to meet this EPS target. What a scam, and it is completely legal.

But the problem with earnings season with stock prices at all-time highs is that anybody in one of these stocks that has an earnings miss loses a lot of money real quick. So earnings season now more than anything resembles a flashlight in a dark room at night, as all the bull cockroaches flee for cover. It acts as a massive dose of reality for the overzealous bulls who wrongly figured that stocks cannot fall in a QE-injected market.

Well, not only can they fall, the bulls may very well have bought at the top of the QE market this week as tapering starts in September. The market probably drops like a rock after an additional 20 earnings misses in the next few weeks. And given that it often takes 13 days of aggressive selling to get out of positions by firms, do you think everybody is going to wait until September to actually start unwinding their exceptionally levered positions?

♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣

Reading: Delta Airlines’s New Oil Refinery: Too Bad the Math Does Not Work

♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣

Don’t everybody run for the exits at the same time folks. Remember to walk, and not run! Just imagine the carnage on the way down as everyone starts selling their 13 days’ worth of positions at the same time. You literally can just close your eyes and hit the sell button.

Once the ETFs kick in, this is going to be one of the most “unsteady” portfolio rebalancing events that we have experienced in recent time with asset prices so far ahead of ‘reasonable valuations’ things are going to get extremely ugly, real fast!

What is that old market adage, stocks take the escalator up, and the freight elevator down. Well, the problem is that not everybody wanting to sell this time will be able to fit in the elevator. There will be crushed bulls piling on top of the elevator trying to liquidate positions, while unfortunate, slow-witted bulls hoping for more fed buying to save their ever-decreasing portfolios a la David Einhorn with his Apple stake! He rode that baby all the way down $300 a share. These bubbles always end the same way!

Thank you Ben Bernanke when all is said and done you are going to be remembered as the worst Fed President of all time! The man who created the largest asset bubble in the history of markets, and left thefallout of the flawed policy for somebody else to fix! This is no different than Angelo Mozilo of Countrywide, that’s a nice legacy Ben. I hope you are proud of yourself!

♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣

Reading: The Bernanke Conundrum

♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣♣

Previous Post

NY Times Reports on Keen, Bernanke, Kindleberger and Minsky

Next Post

Infographics of the Day: How Companies Are Targeting Customers And Predicting Behaviors With Analytics

Related Posts

Bitcoin Whales Invest Aggressively As Small Holders Divest
Economics

Bitcoin Whales Invest Aggressively As Small Holders Divest

by John Wanguba
June 7, 2023
Why Is The SEC Suing Binance?
Business

Why Is The SEC Suing Binance?

by John Wanguba
June 6, 2023
Bitcoin Has Been ‘Killed’ 474 Times But Its Still Alive And Kicking
Economics

Bitcoin Has Been ‘Killed’ 474 Times But Its Still Alive And Kicking

by John Wanguba
June 5, 2023
Japanese Regulators Issue Stern Warning To OpenAI For Data Collection
Business

Japanese Regulators Issue Stern Warning To OpenAI For Data Collection

by John Wanguba
June 5, 2023
What Are BRC-30 Tokens?
Econ Intersect News

What Are BRC-30 Tokens?

by John Wanguba
June 2, 2023
Next Post

Infographics of the Day: How Companies Are Targeting Customers And Predicting Behaviors With Analytics

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Browse by Category

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized

Browse by Tags

adoption altcoins bank banking banks Binance Bitcoin Bitcoin adoption Bitcoin market blockchain BTC business China crypto crypto adoption cryptocurrency crypto exchange crypto market crypto regulation decentralized finance DeFi Elon Musk ETH Ethereum Europe Federal Reserve finance FTX inflation investment market analysis Metaverse NFT nonfungible tokens oil market price analysis recession regulation Russia stock market technology Tesla the UK the US Twitter

Archives

  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • August 2010
  • August 2009

Categories

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized
Global Economic Intersection

After nearly 11 years of 24/7/365 operation, Global Economic Intersection co-founders Steven Hansen and John Lounsbury are retiring. The new owner, a global media company in London, is in the process of completing the set-up of Global Economic Intersection files in their system and publishing platform. The official website ownership transfer took place on 24 August.

Categories

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized

Recent Posts

  • Bitcoin Whales Invest Aggressively As Small Holders Divest
  • Why Is The SEC Suing Binance?
  • Bitcoin Has Been ‘Killed’ 474 Times But Its Still Alive And Kicking

© Copyright 2021 EconIntersect - Economic news, analysis and opinion.

No Result
View All Result
  • Home
  • Contact Us
  • Bitcoin Robot
    • Bitcoin Profit
    • Bitcoin Code
    • Quantum AI
    • eKrona Cryptocurrency
    • Bitcoin Up
    • Bitcoin Prime
    • Yuan Pay Group
    • Immediate Profit
    • BitIQ
    • Bitcoin Loophole
    • Crypto Boom
    • Bitcoin Era
    • Bitcoin Treasure
    • Bitcoin Lucro
    • Bitcoin System
    • Oil Profit
    • The News Spy
    • British Bitcoin Profit
    • Bitcoin Trader
  • Bitcoin Reddit

© Copyright 2021 EconIntersect - Economic news, analysis and opinion.

en English
ar Arabicbg Bulgarianda Danishnl Dutchen Englishfi Finnishfr Frenchde Germanel Greekit Italianja Japaneselv Latvianno Norwegianpl Polishpt Portuguesero Romanianes Spanishsv Swedish