Pints on us!
Tuesday, July 21, 2009 at 06:19AM The solid earnings calls keep coming and the SPX keeps trotting along. What else is new?. To tell you the truth, unbelievably the short term outcome of SPX near 2009 highs is of little consequence to us at this stage. Yes, that’s all the investing public is talking about as we close at a SPX‘09 high, we admit to hardly even glancing at SPX, SPY trading today. All we see at DJIM is how well our shadow list is behaving and preparing for opportunities ahead for more Pint sized earnings on top of last Q's winners. Okay, maybe not looking at SPX had to do in part being occupied with watching our premkt HGSI forum post call at 3.5mln shares/ $10 that sprouted to 123 mln shares traded and a 25% gain from those levels. But seriously, what excites us is not if the SPX breaks 956 intraday day high this week, but what possibly lies ahead as far as earnings are concerned. What these solid earnings in the first week are telling us is we are going to get some nice EPS winners in the next 2 months. Yes, 2 months because most Pint sized caps report for Q’s after all the Keg size stocks report. Plus these Pint sized caps will have 1 to 2 months of better economy than the ones reporting end of June Q’s now, so earnings may be right out of the park!. Also, remember half of these don’t even provide guidance which only makes an excellent past Q of relevance. We should have much more than the (ININ HITK ) so far this Q to play.
Back at DJIM farm today, the drunken’animals were running freely…just yesterday we said…“Even last week, we had past DJIM shadow-listed Q plays putting in new highs at some point ( STEC STAR CVLT EJ )”. Today, we had a few more DJIM shadowed earning stars light up the sky, ( GMCR PWRD DDRX ) for 10-15% and some with new highs. Nobody on the web can be beat that "Fab 7” for a few months now. Also, if that’s not enough, recall in a Journal and later in Forum(06/24) we suggested a pre earnings move will probably come to Casinos after a member asked if it was a time to buy back than. Well, with earnings in a week or so these names eg LVS, WYNN are acting like earnings winners the past 4-5 days as prospects improve (may need a rest though).
Even if the market falls into total darkness from something other than a solar eclipse, we have a ‘Premise’ here that's been working overtime since March and an easy to follow formula to stick to going forward. Note, the "BAR' has been set high for the Keg sized companies by INTC, GS etc., so the big boys ahead will need to shatter numbers/guidance going forward for a great reaction. On the other hand, if one of these misses it will lost likely be a very nice short quick intraday trade. The good thing is our pint sized earnings focus has "no bar" to play in. Also, the probability a herd momentum mentality has set in and pints are the best way to cure any performance anxiety over one’s stock portfolio in years past.
Geez, just got all thirsty..luckily it's almost noon in London UK!.
Cheers'