MysteryTraderBlog.com: Earnings Trick Fools Only Knee Jerk Dummies

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Earnings Trick Fools Only Knee Jerk Dummies

Wednesday’s last hour fade away sets the stage for further stock price weakness.

The ominous specters of inflation, higher energy prices, and ever rising interest rates should weigh on stocks.

Better than expected earnings reports are old news by this time. Better than expected earnings are EXPECTED. Wall Street analysts low ball earnings estimates in order to give stocks a boost. The game is old hat, and the earnings trick is not working beyond a few minutes immediately after the report. After knee jerk dummies react, the rally is over. Wednesday’s pop in Morgan Stanly after the blowout earnings news lasted only 35 minutes.

Posted by MysteryTrader on June 22, 2006 02:53 PM | Permalink

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About Me:

Almost nothing is known about the Mystery Trader. If there were anything much known, he or she would not be such a mystery, would he or she?

We can say only this: the Mystery Trader has been trading for a long time, has learned a few things, mostly the hard way, has traded all kinds of crazy financial instruments, has made AND LOST an awful lot of money, and has not died broke well, not YET anyhow, but there is still time for that.

The Mystery Trader writes these impressions and thoughts as a kind of an uncensored stream of consciousness journal or diary, largely for his or her own amusement, but also hoping these thoughts might help readers somehow, perhaps occasionally, prevent them from doing something stupid.

The Mystery Trader hopes that his or her thoughts might help YOU keep from losing YOUR shirt in the world's biggest casino. The financial markets are notoriously tricky and have ALWAYS been loaded with disinformation, deception, raw deals, chicanery, and outright criminal theft. Unfortunately, little of this bad behavior is caught and punished because the financial markets are too big and chaotic.

The Mystery Trader certainly and explicitly does NOT recommend that you blindly accept any ideas presented here or take anything expressed here at face value as actual fact. On the contrary, if anything, the Mystery Trader hopes that this blog might encourage you to think entirely for yourself and develop your own UNcommon sense. Be careful, have fun, and good luck!

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