Below is a perfect visual representation of the games of Wall St. A game that is being played more fervently than at any point in my lifetime. Not only is it getting played by Wall St but it is getting bought which is the amazing thing. Those who lie start believing their own lies? All the headlines about how we have huge earnings beats and how everything is great. Well, one, you could look at the multiples Wall St is paying for those earnings and realize things are not that great or two, look at the earnings revision to realize what analyst are having to do to make sure you have an eye popping headline. This graph was as a couple of days ago. I believe as of the end of yesterday consensus Citigroup expected loss per share was $.39. It came in as a huge beat with a loss of $.27. What about expectations from two weeks ago??
Another interesting thing today. Oil, which we are drowning in, is breaking out. Up almost $2 to about $77 a barrel. Gold is down $15 an ounce on a big drop. The highest correlation for President approval is gasoline prices. If oil goes beserk because of a weak dollar does that finally get Washingtons attention or does Washington start subsidizing gasoline prices? (I am joking obviously, sort of).