>> Here is another one for today. WFR missed EPS mark by 0.01(0.23 instead of 0.24) and the stock is being "hammered".
Don, I think the market is just demonstrating the validity of an observation you had made a while back. When the institutional script calls for selling, all news leads to selling. When the script calls for buying, then the converse.
So I'll contribute some added value to your model. We should have been able to discern that the script had shifted to "sell" back in march. Remember when Carl Johnson posted a few notes about a "slowdown" ? Well at the time I thought "what slowdown? He's totally wrong". That was a self-defeating response.
Instead, the correct response should have been to see that phantom slowdown was just the excuse of the day (same as the phantom wmd, in another context). The "slowdown" talk was just code-speak for "script has shifted to sell-mode".
Instead, like an idiot, I loaded up on Seagate, thinking that since I was sure it would exceed all estimates, that the stock would go up. Instead, it exceeded all estimates, by a mile, and the stock is going down anyway.
Next time, I'll be prepared.
Sarmad |
