A wild earnings season ahead
Pause a moment before you start building an investment strategy based on fourth-quarter reports.
At the time of this writing, Jim Jubak didn't own shares of any companies mentioned in this post in personal portfolios. The mutual fund he manages, Jubak Global Equity Fund (JUBAX), may or may not own positions in any stock mentioned. The fund did not own shares of Alcoa or American International Group as of the end of September. For a full list of the stocks in the fund as of the end of the most recent quarter, see the fund's portfolio here.
Right now, analysts are looking for a 75% jump .. for the financial sector.Is that odds on how many are going to jump out the window, if the stock market takes a major down turn?
Chances of A happening are if we get trade policies that stop the use of cheap over seas labor. So far politics seems both sides are scared to mention this in fear of trade wars.
Chance of B happening is somewhat likely unless the fed wants to do more QE's which will just lead to hyper inflation and civil unrest as the economy will continue to spiral down in a demand decreasing spiral.
They can post a gain, they can post a loss..........but the fact is, the right shoulder in that head and shoulders formation is about to drop like a rock whether it be this week, next week, or next month or year...........it's going to drop............
Wrong points for head and shoulders.
This refers to the peaks in 2000, 2007, and 2011. On the S&P 1530, 1565, and 1370. Though, if the 1370 was the last shoulder, the pattern doesn't make much sense yet. And in the 3rd leg down of a head and shoulder, by definition it makes a *higher* low.
That could have already happened as August saw a 20% decline from peak (tripping a bear market in technical terms). Regardless, don't see the S&P below 900. We've had a long drawn out correction for 12+ years now (because the markets over ran from 1992-2000). S&P is actually above 200 day MA and has held it.
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