Friday, October 20, 2006

Arguments for continuation of uptrend

Here is where market is now - top of earnings season with a lot more companies to report.
So what one might ask.
Here how earnings work when companies are at their best. Those companies that have something good to report lining up first anxious to add shareholders value, those who don't have anything substantially better the expected to report don't care where in line they are. Now hear this - for performance evaluation based on currently used metrics if company moves release of bad earning further up, prior quoter earning are going to be used in brokeage houses performance evaluation systems, portfolio managers will get better bonuses, company will not upset the Street - this is of most of company management concerns, they can upset shareholder ( old news ), but they better be nice with the Street.
So, guess what kind of earning releases we are going to witness next week?

Next, upcoming elections="uncertainties" and Street HATES it - another reason for "down" vote

Then with earnings and election behind us, FEDs meeting on Nov 23rd ( If I'm correct )
With core PPI stinking on inflation front as much as it did - will they raise? Do you want to bet? I don't - so not too many others, especially sitting at the profit in stocks - another "down" reason.

Oh-ho, "economy booming" headlines by leading financial publications and TV stations? "Lets keep noise down before elections"

Now, what argument I had for market continuing to go up?