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Is the Economy growing? Yes, from all accounts it is actually picking up speed. Commodity prices are continuing to spike with a price curve that looks like the Nasdaq during the Internet bubble. Earnings are continuing to climb with First Call quoting 15.9% as of Friday for Q1 earnings. It was estimated at 13.4% at the end of January. Warnings have been almost nonexistent. Productivity is still climbing, interest rates are very low.
Unfortunately where you and I think this should be a good reason for stocks to be moving up instead of down there is enough evidence that economic prosperity does not necessarily translate into a stock market that is heading higher. We are looking now only 8 weeks into the future. Earnings comparisons to past seasons might be difficult, especially after the news from TSM. Earnings comparisons after the April cycle will become much more difficult given the slow economic growth.
This thread will discuss the best case for a market rebound into April Earnings after a retest of the lows and perhaps a drop all the way to 10000/1900? We could see a significant rebound from our present levels. What do you think? And what stocks would stand to benefit in the upcoming earnings season? Charts are welcome as well as arguments for or against the April/May season being a catalyst for the market recovery.
Unfortunately where you and I think this should be a good reason for stocks to be moving up instead of down there is enough evidence that economic prosperity does not necessarily translate into a stock market that is heading higher. We are looking now only 8 weeks into the future. Earnings comparisons to past seasons might be difficult, especially after the news from TSM. Earnings comparisons after the April cycle will become much more difficult given the slow economic growth.
This thread will discuss the best case for a market rebound into April Earnings after a retest of the lows and perhaps a drop all the way to 10000/1900? We could see a significant rebound from our present levels. What do you think? And what stocks would stand to benefit in the upcoming earnings season? Charts are welcome as well as arguments for or against the April/May season being a catalyst for the market recovery.
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