This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stock Under $10 that he thinks could potentially double or triple in the next 6 to 12-months. See what he's trading today with a 14-day FREE pass.

The Day Ahead: Earnings-Season Rage-Out

It's strange how humans evolve, especially those special folk we call "stock handicappers." At the age of 21, I didn't know what an earnings season was in theory or in practice. At 23, I was eagerly learning the ins and outs to identifying corporate bull on earnings calls and post-call follow-up chats -- and sleeping on top of a conference room table, unbeknownst to anyone else. Four years later, I didn't begin the process of shutting out all of humanity -- for their own safety -- until two weeks into earnings season.

Now, at 30 -- which is really 60, as anyone close to me would know -- I am finding myself highly sensitive at the very start of earnings season. For me, it's "game on or die." Invest the time to amass information, or risk being that slacker who's repeating their three taking points on UPS (UPS) because they chose a night on the town instead of an evening with an earnings-call transcript. Hey, play on, playa.

With regard to this particular earnings season (which apparently is irrelevant), my more rugged, hardened self is testing old rules of thumb, in addition to monitoring trends, to be sure the market is not beginning a fresh rally based right under my nose.

Honest Abe's Rules of Thumb: Cliffs Notes Edition

"Relative outperformance of higher growth sectors, supported by indications of accelerating macroeconomic trends, is a sign of changing future fundamentals."

Many eyes have turned to data improvement in September vs. August as packing the punch to reactivate the rally. On Tuesday, the new dot-connecting exercise was that upside in industrial production meant a manufacturing employment revival -- which had lagged -- and, along with it, longer workweeks and checks to offset gas inflation. All in, this was to drive a very merry holiday season.

The industrial and retail complexes percolated in the face of subpar earnings from W.W. Grainger (GWW), WD-40 (WDFC) and Wolverine Worldwide (WWW). There are some mighty rosy assessments here, but it still doesn't sit well with me, seeing as TJX Cos. (TIF) has plunged, and it's absurdly clear that Europe's industrial performance was horrendous, causing a double-whammy of missed third-quarter earnings and lowered expectations for the balance of the year that exceeds the third quarter shortfall. So I render this rule of thumb as not being truthfully satisfied.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
DOW 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7890 -13.6380 -0.30%

Our Tweets

Brokerage Partners

Top Rated Stocks Top Rated Funds Top Rated ETFs