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Do not pay any attention to bad news. That’s the message from Tuesday's action. Bulls ignored record oil prices and crummy news [a dividend cut and wider loss] from Fannie Mae (FNM). Instead they chose to believe that FNM’s position going forward was strong and they would “feast on” market chaos from new products and, of course, the worst conditions were behind them.

I don’t know if senior management at any of these companies has any credibility left, especially the rating agencies. The latter are part of the game being played and we’re just shills.

But, let’s give credit to the tape action and that Cisco (NASDAQ:CSCO) and Disney (NYSE:DIS) beat estimates after the close. The major take here is how, if the economy is in recession, can Disney of all companies be doing well? It seems an earlier on the calendar Easter holiday period and foreign visitors helped as parks were crowded despite gas prices and other difficulties facing consumers.

In fact, earnings warnings have been modest if we’re falling into, or already in, a recession.

The volume and breadth are still unimpressive overall but better than expected earnings news from last night could possibly carry over to tomorrow.






















































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