Earnings season is upon us: fundamentals take over

[notouch 10]

We've reached that time of the year when no matter what your technical analysis is telling you, it's the fundamentals that determine the direction of the US stock indices. It kicks off today when the first DJIA component Alcoa announces it earnings, although it doesn't make it's announcement until the close so expect some overnight action tonight. If earnings are better than expected then YM gains, if worse than expected then YM loses. It's as simple as that. Of course in the coming weeks it's the performance of all 30 stocks and the wider stock exchange that determines direction but you'd be foolish to ignore the fundamentals.

[weiwei 10]

thank you, Notouch for the heads up.

 

weiwei