Will it be enough to end this correction?
Several Wall Street research houses have chosen this week, and a couple today to either take up numbers or get more positive on major technology names ahead of earnings. If they are right and the quarter/outlook is better than expected, it will be interesting to see whether the good news in tech will be enough to pull us out of this correction. Or even if said better than expected results materialize.
The good news is that analysts getting more constructive after a pullback is a much better setup than analysts taking up numbers because stocks have run past their price targets. The bad news is that expectations are being raised by these analyst moves. All of which reminds me of the following quote, which I may have put up here in the past:
"Inevitably, stocks are more effective predictors of analyst behavior than the analysts are of stock behavior. At times, it seems that Wall Street analysts are in the “multiple maintenance” business. When stock prices go up, estimates follow. When stock prices go down, estimates follow too."