• support@madhedgefundtrader.com
  • Member Login
Mad Hedge Fund Trader
  • Home
  • About
  • Store
  • Luncheons
  • Testimonials
  • Contact Us
  • Click to open the search input field Click to open the search input field Search
  • Menu Menu

Those Q4 Earnings Reports Will Not Be So Pretty

Diary

Traders and investors have grown comfortable with a steady stream of corporate earnings reports. 2011 as a whole may come in as high as $15 a share for the S&P 500. But the gravy train may end starting next week.

The number of companies reducing guidance and downshifting expectations is at a three year high. Similarly, analyst earnings forecast cuts are at a ten year high. Among the 25 companies that have already reported, only 60% beat estimates, another new low.

In my own 2012 Annual Asset Class Review I predicted that S&P earnings would slow from $15 a share to only $5, and I received a lot of abuse from the hedge fund community for being that optimistic. Morgan Stanley has since joined in with its own bucket of cold water by predicting a 7% decline in the stock market this year, blaming deceleration, disfunctionality, and deleveraging, matching my own expectation.

The announcements kick off after the Monday close when aluminum (aluminium to you Brits and Ausies) producer, Alcoa (AA), reports.? Costs have been rising, sales prices have been falling, creating a squeeze on earnings. The technical picture looks particularly dire, with a double top in place and a descending triangle formation in the works. Will this be a preview of what a second ?lost decade? will look like? Has the stock market figured this out yet? Not!

 

 

Those Q4 Earnings Aren?t Going to Be So Pretty

Share this entry
  • Share on Facebook
  • Share on X
  • Share on WhatsApp
  • Share on Pinterest
  • Share on LinkedIn
  • Share by Mail
https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 DougD https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png DougD2012-01-08 22:03:352012-01-08 22:03:35Those Q4 Earnings Reports Will Not Be So Pretty
You might also like
December 3, 2021
September 10, 2021
October 18, 2019
August 13, 2021
The Market?s Technical Outlook is Terrible
August 7, 2023

tastytrade, Inc. (“tastytrade”) has entered into a Marketing Agreement with Mad Hedge Fund Trader (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade and/or any of its affiliated companies. Neither tastytrade nor any of its affiliated companies is responsible for the privacy practices of Marketing Agent or this website. tastytrade does not warrant the accuracy or content of the products or services offered by Marketing Agent or this website. Marketing Agent is independent and is not an affiliate of tastytrade. 

Legal Disclaimer

There is a very high degree of risk involved in trading. Past results are not indicative of future returns. MadHedgeFundTrader.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of MadHedgeFundTrader.com may have a position or effect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies.

Copyright © 2025. Mad Hedge Fund Trader. All Rights Reserved. support@madhedgefundtrader.com
  • Privacy Policy
  • Disclaimer
  • FAQ
Link to: The Euro Breaks Down Link to: The Euro Breaks Down The Euro Breaks Down Link to: January 10, 2012 - Quote of the Day Link to: January 10, 2012 - Quote of the Day January 10, 2012 - Quote of the Day
Scroll to top