Dell Earnings Not Delivering

dell earnings crashMarkets sold off a bit on Thursday as initial jobless claims came in at around the same number it did the month before. Analysts were hoping for a continual downward trend to help boost up confidence in the employment market. However, small businesses are continuing to struggle to boost profits. Most have maxed out their ability to inventory and operating expenses. All that is left for them to cut is employee expense. It amazes me of how few of people restaurants and fast food chains have working their store at this point.

Surprisingly, tech came out with some disappointing numbers following the close of today's market. Both Dell and Intuit reported disappointing with Intuit reporting a very dismal forecast. As I have said before, it is going to be extremely more difficult for businesses to meet a legitimate expectation going into next year, as most expenses that can be cut have been already made at this point. Unless of course you continue to cut jobs, which will in turn continue to drag down the economy. Until now, tech has been the bright spot in all of this, but is now showing that indeed they are vulnerable as well.

Going deeper into the holiday season, we will definitely see volume trail off in to record lows. Thus, we once again have the market very vulnerable to manipulation. Unless a rather significant even takes place over the next month to shake things up, I do not see how bears will get the upper hand with such low volume. Plus, retailers tend to get a boost during the holiday season, which usually is their best part of the year.

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The dollar showed some strength today as investors look for more conservative plays. As I've said before, the inverse relationship between the economy and the performance of the dollar still remains. I do see the dollar going for quite a ride, but that will most likely begin in 2010 in my opinion. With that, I see gold and energy prices pulling back to start the new year.

I worry that more and more are forgetting are vulnerability to a decaying market. We've had a bit of a mask placed over our eyes for the time being, but the pit still exists. I fear that if all information was made available to us regarding the current state of the banks, most would run for the hills. I hope that indeed, the damage will be minimal, but looking at what kind of action has taken place in this market the past 15 years, I don't see how that's possible. Happy Trading.

2 comments:

  1. QUALITY STOCKS UNDER 5 DOLLARS Says:

    Dell has seen its best days.

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