According to The Wall Street Journal, trailing 12-month earnings for the S&P as a whole are likely to drop below $30, thanks to the recession. At least one pundit has applied an average earnings multiple of 15 to that number and come up with a projected value for the S&P 500 index below 450 — [...]
Here’s another sensible argument on how to clean up the banking mess. Here’s the gist of the article: Treasury Secretary Tim Geithner’s plan may not be so bad (in the long-run) because it “stops the madness” of free handouts. i.e. Banks will have to prove themselves via a “stress test” on their solvency to access [...]
As noted yesterday, a close below 7552.29 in the Dow Industrials would confirm a Dow Theory sell signal. The Dow Transports already did its part with a close below the November (closing) low on 20 Jan. Chart 1 shows the Dow falling just below its 50-day moving average in late January and early February. The [...]