Broad Market Outlook
As we are in the thick of earnings season we are getting reminded no matter how amazing the past is, the street only cares about one thing, the future.
As Apple excited most traders with an amazing past.
They beat EPS exceptions (the past)
They beat their revenue estimates (the past)
Their services revenue beat (the past)
Quarterly revenue hit a new all time high (also the past)
All of this information is great information unfortunately all it tells us is what has happened.
Not what they expect to happen in the future.
Apple quickly gaped up after the report was announced as eager traders expected a free lunch.
Yet most were caught by surprise when the bill came as Apple sold off and traded lower after the report due to a lack of guidance.
This is a perfect lesson to remind ourselves that the market does not care about an EPS beat or miss.
They care about what the company expects to happen in the future.
The average investor places bets on the results of the horse race that has already ended (EPS beat/miss), while you can find the public information of who is going to win or lose the next race by spending a few minutes listening to the conference call.
By focusing on finding what the companies you invest in are expecting to do in the future, this information will give you a edge over the average investor.
From Ben G
Only 1 Medium and 1 Large left on the Market Rally Tee!