This Week: Fed Speak...Inflation Data...Earnings Season Begins
- The fact that the usual “Friday rally” didn’t hold last week caught some traders offsides, but the focus has already shifted to this week’s “Fed speak”…the inflation data…and the beginning of earnings season (on Friday).
- Expectations about this earnings season and the “guidance” that will come with it, is not as low as it has been over the past 3-4 quarters. Therefore, it’s going to be harder for the market to rally if all we get is an earnings season that is “not as bad as we thought”…especially since the market has become so expensive.
- It’s going to be very interesting to see what kind of impact this earnings season has on the small-cap Russell 2000 Index…as that index is dominated by companies who get most of their revenues and profits domestically.
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