Good Morning,
What's in the letter
The final revisions for Q1 GDP numbers will be released today, the markets are evidently excited about the numbers as futures have climbed in the pre market hours.
Moodys now has a neutral outlook for Japanese auto makers; sighting the weaker yen and a recovery from a natural disaster.
Gold and precious metals continue to tumble on the back of speeches by Federal reserve chairmen who routinely discuss the end to ultra easy monetary policy.
Blackberry has now opened up its service offering and will now provide security to companies with handheld devices other than BlackBerries. It seems as though the company has a contingency plan in case it's core operations in a saturated market fails to sustain growth.
What I think
The optimism behind today's GDP release raises questions about the rationale behind the market direction in the past few weeks.
The other day, Bernanke's speech outlining 3.4% growth this year was met with a market wide sell-off in what indicated perhaps a longer term market correction to come due to the fear of a taper. Whereas, this mornings GDP report is estimated to be 2.4% and is being met with a rally in the futures.
Are investors betting on a slower economy followed by a prolonged period of ultra easy monetary policy?
If you've followed this blog for any amount of time, you know that am a BlackBerry bull. We are only days away from the release of Q1 numbers from the smartphone provider, this will be the first complete quarter encompassing sales from the company's new BB10 hand sets. Analyst's estimated range from -$0.15 to $0.70 I'm leaning somewhere in the middle. a good earnings surprise should squeeze out shorts and give the stock a huge boost.
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Till next time,
Trade Well
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