Yet another prediction proven wrong -- but not by much this time as almost all of the major indices were down this week! S&P's 0.09% increase cannot really be considered a "gain" either. P's earnings report resulted in a 17.25% decline for the week -- the analysts found much to object to (example below). As stated previously the index doesn't really utilize very much analyst information during the selection process -- there just aren't a lot of stocks to choose from that meet the basic criteria -- but it is worth noting that currently analysts tend to focus on fairly short-term criteria for their recommendations. We won't get into the technical accuracy of technology analyses, either. :-) On a positive note, the analysts did give GLUU an upgrade. Other stocks in the index fell during the week as well, which can be mostly attributed to the Europe crisis generating more investment concerns -- last week's index decline was partially an indicator of this week's overall European crisis-related decline as that same pattern occurred during the "great plummet of '11".
One analyst report on P:
http://www.minyanville.com/sectors/media/articles/ckec-amcx-p-cbs-nwsa-media/3/9/2012/id/39806
Upcoming Earnings: VELT 3/12 8:30am ET (first thing Monday), NCTY 3/21 9PM ET
Winners: COOL 7.25%, EPOC 5.24%, VOCS 4.73%, MITK 4.74%
Losers: P (17.27%), GLUU (5.66%), COBR (3.65%), AUGT (3%), VELT (2.96%), ROVI (2.89%)
Comparison: DJI (0.43%), Nasdaq (0.18%), S&P500 +0.09%, EEM (1.89%), FONE (0.18%)
The figure below is a composite graph comparing the original against the revised index with 4-week moving average for the original. You can click on it to expand it. It is easy to see that last weeks' decline was not as severe as the July '11 decline. NOTE: the revised index (0.75%) outperformed the old index (1.43%).
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