Ahead of the open, (11-07)

Following the EZ summit, noted, “... Also, earnings expectations are depressed, thus any surprises (better than feared) and/or signs it’s not that bad should also be a market positive to go with possible ECB actions.”

   Unfortunately, ECB and earnings (as in pre-announcements) have both disappointed and now the market finds itself hoping for a dead cat bounce off this afternoons visit to the 50MA.  The pre-announcements have started to pile on with no signs of being priced in.  We saw the depressed levels can get even lower following Friday’s cloud/enterprise shellacking and today the major driver for the markets swoon was long time fave’ engine makerCMI (-11%).  Industrial space took it on the chin due to CMI surprise revenue cut, but semi’ sector was clearly also a notable victim of pre-announcements today. At this point anyone hoping to hold into single stock earnings this Q is likely shaking in their boots as expectations are seemingly not low enough (yet).  The turning point for the market will be when bad reports start to turn and go ‘green’.

  

A hope today was the market would set its sight on the FOMC minutes due Wednesday afternoon for hints of QE. This hope is likely tomorrow morning now. (Clearly we’re just grasping at straws). A silver lining in the approach, “Sitting back and waiting for ‘surprise outlook’ earning report from single stocks”,… is these stocks will likely be handsomely rewarded as traders look for any signs of corporate ‘growth’ life.