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Today is Thursday, November 20th, 2008

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Taipan is a retired commodity broker, forex trader and portfolio manager who enjoys following the forex, stock, and commodities markets and drawing upon his 40 years or so of trading experience to post articles to a series of blogs. While Taipan is not always right with his forecasts he usually offers some interesting insights into markets. Actually if he weren't so modest he would tell you that in the big strategic picture he is almost always right. Taipan is very distrustful of statements made by stock brokers, stock analysis, so called forex experts, and in general talking heads. The investor who thinks that the playing field is level and that he can depend upon MSNBC and CNN for inside trading information has got to be at least a little nuts. If you want to trade well you had better develop your own style and your own sources of reliable information. This blog will attempt to provide market trading information that will be helpful. However, always keep in mind that any decisions made to trade using this information are your sole responsibility. Taipan has been around long enough to know that the markets can make a fool out of anyone so never blindly follow what someone else suggests. To trade well you have to think well and the thoughts need to be your own.

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General Electric Earnings Disappoint and Scare Wall Street

April 12th, 2008 • Related • Filed Under

General Electic issued an earnings report for the first quarter on Friday which scared Wall Street and helped to send the DOW 252 points lower.

“Today’s announcement from GE is not typical of the company. It rarely lowers guidance and rarely misses its forecasts. But not this time. That is what is so scary.” - Andrew Snyder

By: Andrew Snyder

Baltimore (TFN)– You do not think the credit crisis is over just like that? A few weeks of ups and downs, some presses releases, and some rule changes and the economy is fixed. Get real. This mess is just getting started.

For proof, just take a look at one of the nation’s strongest bellwethers, General Electric. To say its earnings announcement this morning was disappointing is an understatement. It is a disaster. When a company with as much economic breadth as GE takes such a surprising hit, it becomes obvious this crisis is impacting more than a handful of banks with shoddy loan practices.

Some bogeys on the radar

Today’s announcement from GE is not typical of the company. It rarely lowers guidance and rarely misses its forecasts. But not this time. That is what is so scary. Analysts were expecting earnings per share (EPS) of 51 cents. The company surprised them with a report of just 43 cents.

And to prove to the Street that this is not a short-term problem, the super-conglomerate lowered its yearly guidance to a range of $2.20 to $2.30. Analysts were anticipating full-year EPS of $2.43. You can bet they already had plans of an economic slowdown priced into that forecast, which makes today’s news even more unnerving.

For some reason, the boys of Wall StreetWall-Street-Layoffs have had blinders on for the past two months. They are just now realizing there is some sort of “pattern” developing amongst the nation’s corporations.

I thought it was obvious. Nearly every company in the nation is having a rough time. As more first-quarter earnings reports hit the wire, the news of widespread problems is only going to get more damaging.

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For the remainder of this important financial article go to General Electric Earnings Disappoint

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