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
- Colombia: Sam Zell May be Onto Something | ZeroHedge
- Being There | Financial Sense
- SHORT SELLERS SET ABLAZE WITH WILDFIRE FOR MAYDAY! | iBankCoin.com
- PLaNeT OF MiSTaKeS... | ZeroHedge
- Did A Tap On The Shoulder "Prevent" The US Economy From Sliding Into Recession? | ZeroHedge
- China: Lender of First (and Last) Resort | Financial Sense
- A Surprising Decline in Consumer Confidence | Financial Sense
The most relevant financial news and articles from the Internets
- CNN's Rachel Nicols and ESPN's Michelle Beadle say they've... | Business Insider
- People in Portland, Oregon are going crazy over... | Business Insider
- Legendary investor Ben Horowitz on how an ‘accidental’ investment... | Business Insider
- Death toll from Nepal's devastating quake passes... | Business Insider
- Ten Things Only Bad Managers Say | BusinessWeek
- How two DC lawyers are making family-friendly a workplace priority | Business Insider
- Baltimore mayor announces immediate lifting of curfew | Business Insider