Earnings season is here. Finally, instead of conjecture laced with fear, we get some real information.

The recent stock market volatility has been exacerbated by the fact that so many companies are in quiet periods. This is a period five weeks before and 48 hours after a company reports earnings. During this time, a company’s communications are restricted, and any stock buy-backs are suspended.

Without supporting buying or commentary, rumors and concerns can run rampant. Volatility, then, increases. Algorithmic and high frequency trading (computer generated) kick in, amplifying directional moves. So now that real information is coming, company valuations can better reflect their true prospects. These should be excellent. Collective earnings this quarter may be up as high as 18%. What’s not to like?

Stay steady, my friends.

The Lonely Bull