Thursday Outlook: The Earnings Season Shuffle

July 8, 2009


We had a lot more volume than we’ve seen recently. Short-term equity markets are much oversold while commodity markets continue to get hammered big time. The entire day can be summed up with just those two sentences.

But now we have earnings upon us and Alcoa (AA) is kicking things off with unremarkable results. Since they always have unique items in their earnings, it’s often hard to judge their reports.

Below is the volume and breadth data, with the former impressive while the latter continues its deterioration.

click to enlarge






In the meantime it appears with hindsight that the falling McClellan Summation Index was a tell predicting this downturn.







































































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