Earnings.

The periodic grumble about earnings quality and management appears (here) and (here). Along with it is my periodic grumble that it is not the news which matters but the reaction to it.  Unexpectedly “bad” or “good” earnings cause huge moves in the pre-market, while mediocre earners frequently pop on “beats” making it hard to set up anticipatory plays.  The former are impossible to play, somewhat efficient reactions of price to new information, while the latter are better plays after a few days and the news is digested (post-earnings announcement drift, is what my tribe calls it). Lest you forget, a ” beat” is only that of analyst estimates and these guys  have generally been a pessimistic bunch lately.

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