Momentum versus Economics

Momentum traders continue to drive stocks higher, regardless of what the economic data is.

The latest bit of Reality intruding into the party?  A warning from Lansdstar (LSTR), a $2.3B trucking company, which warned:

Landstar System CEO says lowers forecast for Q4 diluted EPS to between $0.44-$0.49/share, lowers Q4 revs to $620 mln and $635MLN – Reuters

Consensus is for Q4 EPS of $0.52 and revs of $697.5 mln.

That’s not exactly a horrific miss — its a range that might only be a few cents off from the prior expectations.

Here’s what it did to the Trannies:

Tran_124_1


>
Given the momentum into the market today — light volume notwithstanding — I wouldn’t be surprised if the market shakes it off and keeps going . . .

Category: Economy, Markets, Psychology

Category: Books, Psychology, Real Estate

Newsletter Sentiment Skews Very Bullish

Category: Investing, Markets, Psychology, Technical Analysis

December Linkfest

Category: Weblogs

DENNIS GARTMAN’S NOT-SO-SIMPLE RULES OF TRADING

Category: Investing, Rules, Trading

Generic Blog Post & Comments

Category: Weblogs

Is the Housing Bust Over?

Category: Economy, Federal Reserve, Real Estate

Site Traffic, 12 Months

Category: Weblogs

Bozo Hedge Funds

Category: Financial Press

Next Technical Confirmation: Stocks breaking Monday’s lows

Category: RR&A