Well, interesting day for the Stock Market players around here, that's for sure. On bad earnings news from a couple companies, following poor earnings news yesterday from a couple companies, following some major hits in the overseas stock markets (Japan) in the last few days, and along with oil shooting back towards $70, the DJIA dropped 213 points today, it's Biggest 1 day drop since before the Mission in Iraq was Accomplished.

 

Google slid 8.5% today, it's worst day since becoming a public company, on the heels of a bad earnings report from Yahoo and the news that the government was trying to get its hands on Google's search info.

It happens. The stock market had been on a terror before the last few days. It'll bounce back again. Japan's has been real bad too.

Edited January 20, 200620 yr by WilliamTell

Well, interesting day for the Stock Market players around here, that's for sure.  On bad earnings news from a couple companies, following poor earnings news yesterday from a couple companies, following some major hits in the overseas stock markets (Japan) in the last few days, and along with oil shooting back towards $70, the DJIA dropped 213 points today, it's Biggest 1 day drop since before the Mission in Iraq was Accomplished.

 

Google slid 8.5% today, it's worst day since becoming a public company, on the heels of a bad earnings report from Yahoo and the news that the government was trying to get its hands on Google's search info.

 

 

I went shopping about 15 mins before the close and found some real good merch on sale.

 

Wait until Monday the sales will be better.

Like I said a couple weeks ago, its either going to be at 10,000 or 12,000 quick. With Crude prices going crazy, it looks like it may well be 10.

If I heard the news right, it wasn't that the earnings were 'bad', just that 'Wall Street Analysts' expected more. So, because they were bad guessers, they panic and sell? I also love it when the news says 'profits drop 40%', without making it clear that they STILL MADE PROFITS.

If I heard the news right, it wasn't that the earnings were 'bad', just that 'Wall Street Analysts' expected more.  So, because they were bad guessers, they panic and sell? 

 

Yes. I don't agree with it necessarily but it seems to be what happens.

Yes. I don't agree with it necessarily but it seems to be what happens.

It makes sense to me...the gains built up in recent months were created on the premise of increased profits in the near future. If those profits don't appear on schedule...the gains in recent months are not justified.

 

The good part for investors is that most trends, IMO, tend to go too far - i.e. maybe they overpredicted gains this quarter, so if you were smart and sold at the end of December you made a ton, and if you're taking our shorts now, then you stand to make a lot based on the excessively high predictions.

If I heard the news right, it wasn't that the earnings were 'bad', just that 'Wall Street Analysts' expected more.  So, because they were bad guessers, they panic and sell?  I also love it when the news says 'profits drop 40%', without making it clear that they STILL MADE PROFITS.

Buy on the rumor, sell on the news.

If I heard the news right, it wasn't that the earnings were 'bad', just that 'Wall Street Analysts' expected more.  So, because they were bad guessers, they panic and sell?  I also love it when the news says 'profits drop 40%', without making it clear that they STILL MADE PROFITS.

 

Stock price is based on projected future earnings. That's why one of the key stats for determining how in line a stock price is the price to earnings ratio. Its only common sense that when the earnings were "wrong" the stock price has to be wrong as well. Also remember that this doesn't just happen on the bad side, there are also days were a stock will explode because they blew away their earnings projections.

 

Plus Google has been overbought for so long it isn't even funny. Common sense should tell you that Google shouldn't be worth more than most of the bluechip companies on the Dow. That stock needs to be at least half of where it is now to even be considered in-line with the outrageousness that still is the tech stocks.

Stock price is based on projected future earnings.  That's why one of the key stats for determining how in line a stock price is the price to earnings ratio.  Its only common sense that when the earnings were "wrong" the stock price has to be wrong as well.  Also remember that this doesn't just happen on the bad side, there are also days were a stock will explode because they blew away their earnings projections.

 

Plus Google has been overbought for so long it isn't even funny.  Common sense should tell you that Google shouldn't be worth more than most of the bluechip companies on the Dow.  That stock needs to be at least half of where it is now to even be considered in-line with the outrageousness that still is the tech stocks.

Hey Mike, I know this is random, but...my friend said his grandpa told him gas was suposed to go over $3.00 a gallon this weekend and urged us to fill up now. Is this true? I know you follow this kind of stuff closely.

Hey Mike, I know this is random, but...my friend said his grandpa told him gas was suposed to go over $3.00 a gallon this weekend and urged us to fill up now. Is this true? I know you follow this kind of stuff closely.

 

This weekend is too soon, but I have no doubt if Crude doesn't come back under $60 a barrell that it will get up there by the spring. My prediction FWIW would be to see 2-3 more weeks of 10 cent increases. After that all depends on what the crude oil futures do in the next few weeks. Granted I am no expert, but that's my guess.

 

Plus if you want to track the futures yourself, the NYMEX website has futures on everything from unleaded gasoline, to crude, to heating oil, to natural gas.

 

http://www.nymex.com/index.aspx

 

Let me know if you have any other questions Will.

This weekend is too soon, but I have no doubt if Crude doesn't come back under $60 a barrell that it will get up there by the spring.  My prediction FWIW would be to see 2-3 more weeks of 10 cent increases.  After that all depends on what the crude oil futures do in the next few weeks.  Granted I am no expert, but that's my guess.

 

Plus if you want to track the futures yourself, the NYMEX website has futures on everything from unleaded gasoline, to crude, to heating oil, to natural gas.

 

http://www.nymex.com/index.aspx

 

Let me know if you have any other questions Will.

Ok that sounds good. Thanks for the link, I'll be using that for sure. Too bad there's no south shore line to take me to DQ.

I had a half of tank, but I filled up this morning "just in case".

Like I said a couple weeks ago, its either going to be at 10,000 or 12,000 quick.  With Crude prices going crazy, it looks like it may well be 10.

 

Actually, I believe you said that if it broke 11k, it would go above 12k fast, but that if it resisted short of 11k, it would sink fast to 10k.

 

In any case, 11k does seem to be a pretty big trigger for people. It will be hard to break past it and stay there with oil prices this high.