Stay ahead of the markets for only 19.95 p.m.
Incredible Charts Premium Stocks & Forex Service offers:
|* Prices are in USD.|
Has anyone been swimming naked?
By Colin Twiggs
April 12, 2016 5:00 p.m. AEST (3:00 a.m. EDT)
Advice herein is provided for the general information of readers and does not have regard to any particular person's investment objectives, financial situation or needs. Accordingly, no reader should act on the basis of any information contained herein without first having consulted a suitably qualified financial advisor.
The S&P 500 has run into resistance at 2100 as the quarterly earnings season kicks off. 21-Day Twiggs Money Flow is falling, indicating (medium-term) selling pressure. Reversal below 2000 would warn of another test of primary support at 1820 to 1870.
Quarterly earnings per share (as reported) have declined since Q3 2014.
When we break this down by sector, it is clear that Energy is responsible for the sharp fall. So why the pessimism about this quarters earnings releases?
There are concerns that the contagion is spreading to other sectors. I covered falling profit margins (in the nonfinancial sector) and shrinking net interest margins of major banks last week. There were already signs that earnings were dipping — in Materials, Utilities, Financials and (surprisingly) Health Care — in late 2015.
Thursday, with a number of Financial heavyweights scheduled to release earnings, should give an inkling of how bad the most recent quarter has been.
.... and if anyone has been swimming naked.
- Low interest rates and secular stagnation
- APRA waves wet lettuce at bank offshore funding | MacroBusiness
- The future of Chinese steel | MacroBusiness
- Leroy Anderson: Plink, Plank, Plunk (1951)
Know that prudent, cautious, self-control
Is wisdom's root.
~ Robert Burns (1759-1796)
Porter Private Clients Pty Ltd, trading as Research & Investment ("R&I"), is a Corporate Authorized Representative (AR Number 384 397) of Andika Pty Ltd which holds an Australian Financial Services Licence (AFSL 297069).
The information on this web site and in the newsletters is general in nature and does not consider your personal circumstances. Please contact your professional financial adviser for advice tailored to your needs.
R&I has made every effort to ensure the reliability of the views and recommendations expressed in the reports published on its websites and newsletters. Our research is based upon information known to us or which was obtained from sources which we believe to be reliable and accurate.
No guarantee as to the capital value of investments, nor future returns are made by R&I. Neither R&I nor its employees make any representation, warranty or guarantee that the information provided is complete, accurate, current or reliable.
You are under no obligation to use these services and should always compare financial services/products to find one which best meets your personal objectives, financial situation or needs.
To the extent permitted by law, R&I and its employees, agents and authorised representatives exclude all liability for any loss or damage (including indirect, special or consequential loss or damage) arising from the use of, or reliance on, any information. If the law prohibits the exclusion of such liability, such liability shall be limited, to the extent permitted by law, to the resupply of the said information or the cost of the said resupply.
Important Warning About Simulated Results
Research & Investment (R&I) specialise in developing, testing and researching investment strategies and systems. Within the R&I web site and newsletters, you will find information about investment strategies and their performance. It is important that you understand that results from R&I research are simulated and not actual results.
No representation is made that any investor will or is likely to achieve profits or losses similar to those shown.
Simulated performance results are generally prepared with the benefit of hindsight and do not involve financial risk. No modeling can completely account for the impact of financial risk in actual investment. Account size, brokerage and slippage may also diverge from simulated results. Numerous other factors related to the markets in general or to the implementation of any specific investment system cannot be fully accounted for in the preparation of simulated performance results and may adversely affect actual investment results.
To the extent permitted by law, R&I and its employees, agents and authorised representatives exclude all liability for any loss or damage (including indirect, special or consequential loss or damage) arising from the use of, or reliance on, any information offered by R&I whether or not caused by any negligent act or omission.