TSG – GE earnings report reality check…

Dear Trader,
TSG Stock Market Letter

Week Ending April 11, 2008

Topics Discussed This Week:

* Optimism gets a reality check
* Leaders hold their own
* Q1-08 seasons starts off with a whimper
* No surprises in housing – just more bad news
* But are investors being unrealistically optimistic?

Quote of the week
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“Waiting … Dear Trader,
TSG Stock Market Letter

Week Ending April 11, 2008

Topics Discussed This Week:

* Optimism gets a reality check
* Leaders hold their own
* Q1-08 seasons starts off with a whimper
* No surprises in housing – just more bad news
* But are investors being unrealistically optimistic?

Quote of the week
—————–
“Waiting for a recession to tell you when to sell stocks is about as handy as having a pocket in your underpants.” Garry Shilling
(see Gary’s most recent Bloomberg interview below).

It seems the continued weakness in earnings has suddenly dawned in the minds of investors in spite of the fact that there were growing signs months ago. But the Street is still bullish as evidenced by the fact that the Dow has been holding its ground even as volume has been declining. Not surprisingly Alcoa, the first out of the earnings season gate this week reported weaker than expected earnings causing the stock to drop 4% on Monday. And then there was GE…

Are investors being unrealistically optimistic or is the rally just taking a while to gather steam?

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To read this week’s STOCK LETTER, please go to
http://tradesystemguru.com/content/blogcategory/34/68/
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To read this week’s, INTERMARKET LETTER Monday, see
http://tradesystemguru.com/content/blogcategory/35/69/
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