Coming Week: The Earnings Storm Hits

OntarioVanMan · Apr 19, 2009

Robert Holmes

Brace yourselves. This week, there are no mark-to-market headlines to monitor, no news on the uptick rule, and no Federal Reserve meeting (that'll be a concern going into next weekend, though).

However, there are so many earnings reports in the coming week that they overshadow everything else. Robert Pavlik, chief market strategist at Banyan Partners, sums the week up best. "There are a bunch of earnings reports. It really kicks in."

Oh yes, it's first-quarter earnings season, and the worst of the storm is about to slam into the market like a nor'easter approaching Cape Cod in November. John Butters, research analyst with Thomson Reuters, said that 140 constituents of the S&P 500 are due to report earnings over the next five sessions.

With so many S&P 500 members set to report next week, only one thing is for sure: The coming week is the one of the busiest this quarter.

Coming Week: The Earnings Storm Hits | Market Features | Financial Articles & Investing News | TheStreet.com

OntarioVanMan · Apr 19, 2009

Caution should be the First and foremost thing in ones mind right now. Looking back at the DJIA Chart the "bottom" back in March (Which if you Look at the 10 YEAR DJIA Chart has to this point formed a V ) looks Very Similar to the "Bottom" back In 2002 (which also formed a V ). Now the bounce in 2002 lasted for right around 6 weeks at which time we went side ways for about a week and had a 4 month downdraft which "tested" the "Bottom".

Interestingly enough, we have just completed the 6TH consecutive week of UPTICK since the March "Bottom".. Interestingly similar also is that the PERCENTAGE of rise Since March THIS YEAR is nearly IDENTICAL to the percentage of rise in 2002...

Now, I am not saying that we are having a repeat of an historical event of record,, But history does have a way of repeating. That said we are at the point in time where a retest has the most likely chance of taking hold, and unlike 2002 the downdraft could take a bit longer than the 4 months that happened in 2002, or due to the severity of the current situation it could happened very fast and dirty.

As the Posit that Unemployment rates still rising equates to there being no hope and that we are still "Doomed".. History shows that Unemployment Rates Continue to rise for a substantial period of time AFTER a bottom has been found in the Stock Markets, and That unemployment Rates Peak right around the time the general economy finds it's Bbottom, which historically is roughly 6-8 months AFTER the stock market has bottomed..

These are facts that can be found with relative ease with a bit of research. the period during the great Depression after the Great Crash are the exception to the histronics.