Morning Audibles 7.15.10 - The Beatings Will Continue (redux)

Another bad night for BUCKY...

---(from ZH)---
John R Taylor Jr.
Chief Investment Officer


"This week, the US equity market is starting its quarterly earnings ritual and the odds favor a strong performance for the closely followed investor favorites. Although the game is rigged as almost 50% of the corporate managements have adjusted their guidance in the past month trying to lower analysts’ projections down to levels that the companies know they can beat. Despite the opera buffa quality of the process, the S&P 500 companies will still produce a dramatic increase in earnings over the second quarter of 2009. The same can be said of the major European corporations. The increase in corporate earnings and the projection of further increases seems to be universal, and many argue that the positive outlook for thousands of individual companies must sum to an impressive economic recovery."

http://www.zerohedge.com/article/john-taylor-cash-now-king-worthless-or-not-so-buy-dollars

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What appears quite obvious, to CV, in the first few days of Q310 is the same phenomenon which occurred in Q210, Q110, Q409, Q309, Q209... 


1. Ramp up equities in the first few trading weeks of the quarter to make your quarterly nut. (If you'd have bought SPX 1010, you'd be up almost 8%)...
2. Slowly distribute those winnings into something relatively safe & liquid for the rest of the quarter. Start with the 3 b's... "bills, bonds, bucky"...
3. Get out of dodge & window dress the last 6 weeks...
4. Indulge yourself in some other "b's... (babes, bikinis, & blow)...


It's still early in Q310... We're just getting to the post FASB bank "earnings" sham, and the high profile tech earnings (whose "guidance", on the conference calls, is always highly correlated to the notion of a weak dollar)...


So in a macro sense, (despite CV's overall BULLISHNESS on the dollar), give it a few more days to get bucky as cheap as possible for the the alpha-dogs to buy at a discount...

then get themselves off to the Hamptons for the rest of the summer and share stories about their mastery of the universe...