Earnings Revisions
The negative earnings revisions are still large! but the worse is less worse: analysts were downgrading earnings estimates for 30% of SP1500 companies in early jan, against “only” 20% for the last month. The net earnings revision is then still negative (by 20% globally) but improving, on the right slope?
Particular cases: the good players are consumer discret.: from -60% to -30% negative earnings revisions in this sector, consumer staples: -30% to -10% & Materials: -30% to +5%!!
These are my favourite sectors for a possible bounce:
In terms of stocks: DRI & GPS for cons. discret., GIS & TAP for cons. staples, and SIAL, MON & NUE for materials…
Of course, if you read my previous posts, these analysis still hold and I am expecting more space on the downside, but a bit of hedge can be taken with the ideas above… (for today, odds favor an early short bounce).