The 75% Chance Stocks Could Fall
Mastery favorite International Business Machines (IBM) latest conference call was a major downer. Worse yet when you look at the numbers the S&P 500 could be in for a pullback.
IBM is worth paying attention to, they just missed big. Here's the take away via WSJ.com:
But IBM is key the stock to watch for its impact not only on the Dow, but also on the S&P 500.
Analysts at Bespoke Investment Group point out IBM’s results have a fairly accurate track record of predicting the S&P 500’s future short-term move.
Dating back to 2001, IBM’s one-day stock move in reaction to earnings has been directly correlated to the S&P 500’s move over the ensuing five weeks about 75% of the time, including the last four quarters, according to Bespoke.
Assuming IBM’s declines hold, “it’s not looking good for the overall market in the next five weeks,” says Paul Hickey, co-founder at Bespoke.
We have all been warned. IBM closed down 5% today just a little over $200 a share.
Best of the Blogs
Scanning and identifying the best blog entries every hour
- Europe's Controlled Demolition | ZeroHedge
- GOLD: Will This Summer’s Rally Mark A Cyclical Turning Point? | ZeroHedge
- Part-Time Jobs Surge By 161,000; Full-Time Jobs Tumble By 349,000 | ZeroHedge
- NSA Leak: "Washington Is Negotiating With Every Nation That Borders China... So As To 'Confront' Beijing" | ZeroHedge
- Stocks Surge Despite Dashed Hellenic Hope, Crude Carnages | ZeroHedge
- Tsipras Will Not Back Down On Referendum: Media Report | ZeroHedge
- Is Saudi Arabia Leaving The U.S. Behind For Russia? | ZeroHedge
The most relevant financial news and articles from the Internets
- A-Rod and the Yankees might give part of his disputed $6 million bonus to... | Business Insider
- Cyprus stages play for peace at reopened landmark | Business Insider
- Laptop Computer Reviews - BusinessWeek | BusinessWeek
- 10 things you need to know in markets today | Business Insider
- One CEO explains why he refuses to have an office | Business Insider
- This up-and-coming fitness studio is turning into Soul Cycle's biggest threat | Business Insider
- The new oligarchs in New York City are like nothing the city has seen | Business Insider