Want to drive yourself mad this earnings season?and my advice
First under no circumstance buy or short any individual stock going into a number. (unless you have insider info or know the MM)you'll be wrong and somehow end up a bagholder and married to the position
2nd if you are playing the toxic leveraged funds, prepare for dissopintment. Just short any pop on any of them into any gap up.
3rd-Prepare to be even more confused by the "leader" AAPL.It will figure a way to detach itself from overall markets. You can really trash the theory of "as goes AAPL, goes the market". I thought that was the case with GM, CSCO, GS, etc...
4- get more confused when you see a major weighted component like say IBM(the biggest weight for the DOW) go up or down and the futures don't respond to it the way they should. CAT is 2nd heaviest weight...
5-financials ridiculously overbought. Media will be pumping left and right before the numbers. Should all be sell on news but I'll be wrong.
I just thought of something and since it really is banks that lead this, where do you think stocks like say LEH, BSC, FRE, FNM, WAMU, CIT, etc would be today? What was their weights on index;s? Look where the market is today with all these "index leaders" gone. Financial index even higher now so maybe that whole diversification into index funds actually work?