• 278 days Will The ECB Continue To Hike Rates?
  • 278 days Forbes: Aramco Remains Largest Company In The Middle East
  • 280 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 680 days Could Crypto Overtake Traditional Investment?
  • 684 days Americans Still Quitting Jobs At Record Pace
  • 686 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 690 days Is The Dollar Too Strong?
  • 690 days Big Tech Disappoints Investors on Earnings Calls
  • 691 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 692 days China Is Quietly Trying To Distance Itself From Russia
  • 693 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 697 days Crypto Investors Won Big In 2021
  • 697 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 698 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 700 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 700 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 704 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 704 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 705 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 707 days Are NFTs About To Take Over Gaming?
How Millennials Are Reshaping Real Estate

How Millennials Are Reshaping Real Estate

The real estate market is…

Trade In Counterfeit Goods Hits Half A Trillion Dollars

Trade In Counterfeit Goods Hits Half A Trillion Dollars

The counterfeit market has breached…

Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

  1. Home
  2. Markets
  3. Other

Earnings Expectations Starting To Align With Weak Technicals

Earnings Expectations Dropping Rapidly

Markets tend to peak before weakness shows up in economic and corporate data. The S&P 500 has not posted a new high since May 2015. Markets may have anticipated a slowdown in corporate earnings. From The Wall Street Journal:

Wall Street's earnings estimates for S&P 500 companies are falling at the fastest pace since the height of the financial crisis. Since the start of 2016, Wall Street has gone from anticipating 0.3% growth in first-quarter earnings for S&P 500 companies to an 8% decline, according to FactSet. It is the biggest such shift since the start of 2009.


Has The Rally In Stocks Changed The Primary Trend?

This week's stock market video asks numerous binary questions about the stock market's primary trend in an attempt to better understand the context of the strong three-week rally in equities.


A Picture Is Worth A Thousand Words

The S&P 500's 50-day moving average can help us monitor the market's intermediate-term trend. The 200-day can be used as a gauge for longer-term trends. Even after the strong rally in stocks, the trends can still be categorized as concerning.

$SPX S&P 500 Large Cap Index INDX

Given the facts in hand as of last Friday's close, our allocations are still carrying an overweight to defensive assets relative to growth-oriented assets. If the S&P 500 is able to recapture and hold 2020, our market model's interest in growth assets should begin to pick up at a more meaningful rate.

 

Back to homepage

Leave a comment

Leave a comment