The REAL Consumer Confidence Read

  • Posted by
  • on May 14th, 2011

The coming week is one of my favorites of each quarter.  While part of my focus will be on managing the premium left in short May options, and deciding how to roll into June, I look forward to a set of earnings reports that I think packs a ton of punch.

Because it’s not as overwhelming as the hundreds that reported each week in April, we get more time to look under the hood of some of the key U.S. sectors and companies, and gauge Wall St.’s reaction to the results.  Some of the names set to report include the following:

Pretty decent sample from which speculators can grab a sense of not just how the consumer is feeling, but what he or she is doing about it.  I think we’ll get WAY more insight on personal income, inflation, and employment trends from this group of companies than we can from any government data.  The edge for me is not in gaming these reports beforehand, but in observing the tone of managements and most importantly, the reaction of Mr. Market.

With the end of QE2 approaching, everyone including the Bernank is looking to see whether the U.S. consumer is ready to swim without its water wings.  Between the narrowing but increasingly volatile trading range on $SPX, and this slate of reports from some of America’s biggest tenants, by week’s end we should know much more about both the state of the economy AND what the Fed might do about it.

 

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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