Making up for a busy week…

  1. Here is a great place to get up to speed on Foreclosure-gate (what an awful word).

  2. What a weird market week this has been. Feels like an expiration week. Could it be the weekly options? Someone please check trading volumes…

  3. KLAC and BRCM provide useful illustrations for doing your homework around earnings. The former’s earnings were touted today as being up SEVEN-FOLD from the same period, one year ago. Before you say WOW, remember that was a bleak time generally and comparisons are easy. Look at other quarters and you see what went on. In contrast, the latter’s earnings were spectacularly higher than 1-year ago, and the most recent quarter. And their bleak quarter would be the one coming up….

  4. Q-3 GDP advance numbers came out today at 2%. If I recall correctly, the feeling in July-August was that a double-dip was a certainty and the market sold off through August. My comments in class really stemmed from my having bought into that notion.  However, the last two months of a reverse move shows that the market did kind of get it right.

  5. While better than 1.7%, this number does not bode well for jobs. Much of it appears to have been from inventory buildups in anticipation of the holidays, final sales were weak. There is also some concerns about unemployment benefits expiring for a large number of people.  It probably won’t show in GDP revisions until late Jan when the 4th quarter advance estimate comes out, so it is happy trading until then as the programs rule. 

  6. More to follow….

Advertisements