Mind the Earnings Gap
In order to understand which way the market may "break" this fall, I have been tracking the trend in revisions of the S&P 500 earnings estimate vs. the price action. In mid-August, I noted that the rally had legs -- while the estimates were being revised down. That created a yawning gap reminiscent of Jaws about to attack.
In the subsequent month, the gap has only widened, with the market continuing to rally while the 2012 operating earnings estimate gets revised down even further....124 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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