Guidance -- Wow
Friday, October 16, 2009 at 10:26AM While the EPS beat rate this earnings season has been strong, there's another data point that has been even more eye-popping. While the earnings per share numbers grab the headlines, it's what companies say about their future quarters that impacts stock prices the most on their report days. As shown below, 20.3% of US companies have raised guidance so far this earnings season. The highest reading for this number has barely broken 15% in any prior quarter this decade. And if we compare the percentage of companies raising guidance versus the percentage of companies lowering guidance, no other quarters come even close to this one. It will be hard to keep this up as earnings season progresses, but it's also shaping up to be a record-breaking quarter on the positive side.
Reader Comments (5)
money managers are fully invested, inflows and market moves have continued to be on weaker volume. people appear to be antsy to pull out to protect profits.
this is all anecdotal evidence.
But if you think about it from a swing trader point of view, all that really matters is what direction it currently goes.
Right now it has been moving up, so having Long positions has made a lot of sense. And then as soon as it reverses lower, in any meaningful way, one may consider shorting it for a couple of days.
Thinking that way, may be a way to rationalize this market and profit from it.
Clerly the upside from here is much more limited than it was 3500 points ago, but nobody (including me) had a clue it will move this high at that time.
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