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
- Number of Banks and Percentage of Problem Banks Over Time | Financial Sense
- Janet Yellen, a 'White Dove'? | ZeroHedge
- BP Pushing the Limits of Technology to Develop Ultra-Deep Fields | Financial Sense
- Saturday Night at Chess Cinemas | iBankCoin.com
- HFT Algos Force Institutional Investors Off-Exchange | ZeroHedge
- "No Way To Tell How Many People Who Have Signed Up For Obamacare Actually Have" | ZeroHedge
- Front Running Pathetically Stupid Hedge Fund Managers | iBankCoin.com
The most relevant financial news and articles from the Internets
- Kristen Wiig Returns To 'SNL' To Parody 'The Sound Of Music' | Business Insider
- This Map Shows The Big Split In The California Economy | Business Insider
- China Looks To Bring Hammer Of Justice Down On Organized Activism | Business Insider
- The Weekend Is Over, And Markets And Futures Are Mostly Higher | Business Insider
- Apple's Supply-Chain Secret? Hoard Lasers | BusinessWeek
- Things Are Getting Ugly In San Francisco:... | Business Insider
- The Lions Went For A 2-Point Conversion In A Snow Storm, And It Was Brilliant... | Business Insider