Up and Down, Spin Around

Thursday, February 25, 2010

  • With 85% of S&P 500 companies out with earnings reports this season, over 70% have beat earnings expectations. Yet, the market is down slightly year-to-date. Whether its debt troubles in Greece, Bernanke's more hawkish tone, or worrying unemployment data, the market is absorbing the negatives against a backdrop of strong corporate earnings. Stocks are in consolidation mode as traders await greater clarity on the economic front before making large bets either way.

  • Up and down, up and down. Trying to figure out this nonsense seems silly. I believe the strong uptrend we were in throughout 2009 has paused for now, stocks are consolidating in a healthy fashion and we may find new leadership down the line as earnings continue to separate the best and the worst.

  • I really like Akio Toyoda after watching him take a beating from Congress yesterday. He seemed entirely sincere and willing to go beyond the necessary in fixing up Toyota's accelerator problems. I got the distinct impression that these guys are not looking at their "image" rather they want to make quality cars and are embarrassed and saddened by what has happened. I will be watching the stock for a long-term value play in the coming months. This is a classic short-term falter within a great company with unchanged long-term growth prospects.
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