At the start of last week, I released my updated sector recommendations (Sectors Update) and Whispers (Previous Whispers) where I continued to suggest that my work had not been supporting the sustainability of the bounce that started at the late May low near 3810. That low was breached this morning. Last week was challenging for equity investors as two of my concern areas, inflation/hawkish Fed and estimate revisions heading lower, reared their ugly heads.  The start to this week wasn’t any prettier.

During this week, I have been immersed in doing my monthly deep dive into my 4,000 U.S. single stock database looking at every respective company’s ASM indicator, which is my proprietary earnings revision metric, and flagging what the overall ERM model is flagging as favorable. 

Let me get the big message out right up front – the earnings revisions have clearly begun a very negative shift.  There is only one way to describe this month’s review — U-G-L-Y.  The number of absolute negative revisions is at a low level and rising, but the percentage of names with negative sloped ASMs is large and still broadening.  For the optimists, I am sorry to say this process looks to still be in the early stages and the weakness is likely to persist for at l...

Unlock this article with a FREE 30-Day Trial!

An FSI Pro, or FSI Macro subscription is required in order to access this content.

*Free trial available only on a monthly plan

Disclosures (show)

Get invaluable analysis of the market and stocks. Cancel at any time. Start Free Trial

Articles Read 2/2

🎁 Unlock 1 extra article by joining our Community!

You’ve reached your limit of 2 free monthly articles. Please enter your email to unlock 1 more articles.

Already have an account? Sign In

Don't Miss Out
First Month Free