Software for Serious traders
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Kwik*POP Comments
The Next Generation in Trading Software
July, 11th 2011
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Greetings,
We have once again moved in Wall Streets favorite season ..EARNINGS SEASON. Many people do not appreciate the effort that goes into the game before numbers are released. Companies need to get the analyst's to continually lower their estimates until the company is reasonably sure they can beat the estimates. There is a lot of bonus money at stake so it's very important that companies 'beat' the Wall Street estimates.
When the company beats estimates the big dogs get some extra vig and Wall Street benefits too, as they can sell lots of stock based on the' new reality' that the company actually beat the brilliant Wall Street Analyst's estimates on earnings. Must be a great company doing really good if they can actually beat the analyst's amazingly accurate estimates .. eh? They call it an earnings surprise .. neat huh?
The ES market can get a little choppy on days where there are numerous earnings releases. Here are some neat charts to study from BESPOKE.com. Keep this nearby throughout earnings season.
EUROPEAN GRAN PRIX 2011
There is a big race going on in Europe these days ... a race to the bottom. As you can see, Greece has taken a big lead, but others are catching up quickly. I've always felt that the word European is not spelled properly as it does not really define the status of those living in Europe under the grace of oligarchs clustered in Begium. I think it should be spelled EuroPEON.
The comments are mine, but the charts came from http://globaleconomicanalysis.blogspot.com/ a site I read a couple of times every week.
UGLY CHART OF THE WEEK
This is a daily chart of SPY. We have myriad problems here in the US and it appears that our Federal overlords are unable to solve any of them. We are merely serfs observing from the sidelines as our votes mean nothing in Washington.There is much confusion and the battle lines between the bulls and bears are becoming as rigid as the lines between Democrats and Republicans. Look at that chart .. gaps all over the place. Fear .. greed .. risk on ... risk off. Herky-jerky price action that many times precedes a major implosion.
A close below 129.50 would not be good for the bullish argument .. not good at all. We need to look at this two ways. With the debt ceiling crisis, budget deficit, shrinking GDP, nearly $4.00 dollar gas, food inflation, higher unemployment, EuroPEON crisis and on and on ... if the market does not crash in the next 45 days ... then we are going to have one hell of a huge rally.
We are very close to a big melt down or a MINSKY MELT UP. Fasten your seatbelts because August and September will be one hell of a scary rollercoaster ride for the markets.
Regards
WDH
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