Its the Earnings Season Stupid

Lets take a quick look at the important earnings reports for next week.

Monday

CSX - Railroads are a great indicator of economic activity.

FAST - Industrial components.

MERX - Printed circuit boards

NVLS - Front End Semi Equipment. This one I will be very interested in.

Tuesday

ALTR - CHIPS for cell phones, routers, and other useless electronics.

INTC - I stopped caring about INTC a long time ago, but its importance to the NASDAQ and technology supply chain cant be underestimated.

JNJ - Not my thing, but at least they wont go out of business in 10 years. There is always a market for Tylenol.

YUM - All about China. I sure hope Chinese Consumers start acting like us, then we can buy their treasuries, keep our currency artificially low, lower their interest rates to bubble levels which inflates Chinese Real Estate leading the Chinese to create complex mortgage derivatives. From this China Fire and Life Insurance Company will get into the CDS market that will eventually crush the Chinese economy. To me this is the only way we get our prominence and mojo back in 200 Years!

GS- How in the world can I wake up and not have Goldman Sachs on my mind? What more can be said about the Death Star? The Yankees can no longer be considered the "EVIL EMPIRE", now that GS has taken over. All major competitors (LEH/BSC) destroyed, and others (MER/MS) severely weakened. Goldman alumni(Pods) sprinkled everywhere throughout government. The only thing they have to worry about is rogue insiders selling computer code. Goldman should have a epic quarter...again why would they not? Record breaking issuance of stocks - especially financials, in Q2, massive issuance of bonds as credit markets re-opened, massive dominance of weekly program trading. They are everywhere and as less competitors remains their profits exploded.
The only thing to ask is "Is it in the stock"?

Wednesday

AMR - Every Day is a great day to sell the airlines

XLNX - Like AlTR makes chips for mindless entertainment and communications systems.

LSTR - Nice Trucking Stock in a rotten neighborhood.

Thursday

BIIB - Can someone please buy Biogen please?

HOG - Harley Davidson has been a dog stock for years but the way I see it, as the economy suffers, people get depressed and stressed, which leads to hair loss, which leads to the mid life crisis...which leads to the Harley Davidson Dealership.

NOK - All about market share. Where have we heard that before(GM/F/Chrysler)? Has acted better of late. You would think these guys would dominate seeing that Motorola has been run by imbeciles for years.

JPM - Its all about credit/loan quality. How bad has this deteriorated? They will take further mark downs on toxic debt as well as reserves for defaults. Don't be surprised to see JP post a loss.

IBM - The ultimate safety stock, but will move technology.

GOOG - Keeps banging out lunch money. Quarter should be ok.

Friday

GE - Cant take these guys seriously anymore till they come clean on GE Capital.

C - Citigroup - NEXT!

BBT - Regional Bank in trouble over CRE.

BAC - This should be interesting. Might post a loss.


I found this very concerning because investors have clearly been selling or shorting the big winners and moving into more defensive sectors.




If the market wants to rally then the number of companies beating estimates has to rise above 62%



Something positive for the Perma Bulls.

The first meaningful pullback since the March lows has brought the bears out of the woods. According to the weekly poll from the American Association of Individual Investors (AAII), bearish sentiment is currently at 54.65%, which is higher than any other point since March 5Th.