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Earnings Reactions and Market Impact
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We are watching GILD to help with our general market directional analysis. Yesterday GILD crushed all earnings estimates. One would expect the stock to be up 5% to 10%. There are several more high profile growth companies due to report this week and next, which will give us a feel for the overall market. If enough of them report great numbers maybe the indexes push into new highs and stay there. If they don't then we know where the indexes will go.

 

 

In a healthy market, stocks that crush their estimates and guide forward estimates higher should be able to move back above their 50 dmas in a relatively short period of time. The concern is that if a company beats top/bottom-line estimates isn't getting the price action it deserves, then something larger than the stock (i.e. the sector or market) is going on and, in that case, this current correction could be tougher.

 

Best returns,


Scott O’Neil

President

MarketSmith Incorporated

Follow Scott O'Neil at Twitter.com/WScottOneil 

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Comments
saltman said...
April 23, 2014 at 11:57 AM

As always, thanks for the timely and insightful update.

jopihl said...
April 26, 2014 at 08:07 AM

We know more now. Thank you.

abe said...
April 28, 2014 at 07:25 PM

GILD still unable to take the 50 DMA.  FB shows raised guidance in Market Smith and 183% eps growth in the recent quarter.  Awesome numbers coming out of a 2nd stage base and yet....

djhays said...
May 07, 2014 at 05:45 PM

Looks pretty good as of May 7.

jim.lips said...
June 05, 2014 at 05:32 PM

Looking forward to your next blog post Scott -- it's about time, hint hint.