Hi Everyone
Just a quick note to say be careful right now as we’re right into earnings season.
Yesterday saw a huge spike up, but with our trading method, we remained safe as our bear flags turned up without breaking through support.
Goldman Sachs (GS) is the focus of attention today, but remember, it’s one of the only banks that purged itself of its bad business before the markets realized the extent of the credit crisis. So, while GS may impress Wall Street’s analysts, there are a lot of banks out there who are still yet to reveal the full extent of their problems, which may not even emerge until 2010.
To add to the fun, we have several other announcements this week.
- Retail sales are out today
- Inflation indicators (today and tomorrow)
- The Fed will be releasing the minutes from its last meeting on interest rates on Wednesday.
- Housing starts on Friday
- And just for good measure it’s options expiration on Friday!
In summary, earnings season always has the capacity to surprise and gyrate. I’m expecting a bit of both for this one. Medium term I’m more excited by bear flags, but after this nice run down since June 11th, I may have to be patient and bide my time over this earnings season.
All the best
Guy