worldwary

Friday Roundup: Commodities, Emerging Markets

Would you comment on Switzerland (see EWL) when you get the chance? It appears to me to have popped up further above resistance than other European markets. I'd like to hear your take on where the next level of resistance is.

Thanks!

Earnings Season: Fundamentally Flawed

An incomplete argument. You can't tell whether the recent jump in financial stocks in response to earnings "beats" is justified unless you also factor in the relationship between share price and expected earnings over the course of any recent changes in earnings expectations.

In other words, if the stock price has already plummeted in reaction to reductions in earnings expectations, then a bounce may be justified by a "beat" even if the beat is only against a reduced target.

Would be helpful if the article included this level of analysis to help determine which bounces are justified and which overdone.