It seems bloggers had mixed feelings regarding President Obama’s speech last night. Some argued he was still to vague while others pointed out he is focusing on the right domestic issues. But the market had one feeling: down, down, down. This morning the DOW dropped almost 150 points only to recover in the last half of the day to become positive by 8 points. The Treasury also announced that the nations biggest banks will be granted immediate access to the $700 billion rescue fund.
While I’ve been on my McDonald’s high horse lately, PredictWallStreet published a forecast today for MCD. After seeing how choppy the market has been the past few days, the forecast direction was expected. PredictWallStreet forecasts are generated using patented algorithms that are run on prediction data and historical databases containing millions of predictions. Each day a set of unique forecasts is published on the site before the market opens. Between May 24, 2007 and December 31, 2008, PredictWallStreet published 1445 forecasts. Calculations of the forecasts profitability are based on the difference between the opening and close price for that security and a 2% stop loss. To evaluate performances, PredictWallStreet applies the same methodology to the Spdr S&P 500 (SPY).
The forecasts had a return of 41.4% while the SPY dropped 58.4%! During the 2008 financial meltdown, PredictWallStreet forecasts yielded positive profit potentials even though the market was behaving bearishly too! Take a look at the white paper here to see graphs and a better explanation under PredictWallStreet Publications.
So after looking at the forecast for MCD, I made my prediction accordingly. Sentiment is coming down for McDonald’s and becoming more bearish even though the majority of predictors have predicted up today.
In other news, Microsoft’s CEO Steve Ballmer told analysts that he was still interested in striking up a search deal with Yahoo! Whenever the subject comes up, this is usually Ballmer’s reply. The response usually helps boosts Yahoo!’s (YHOO) price for a bit and this is exactly what it did yesterday. So it’s not surprising that Yahoo! is down today after the news subsided. I predicted down today for YHOO. Sentiment is becoming more bearish. Even though YHOO is finally above the terrible ten price, Carol Bartz is going to need to introduce something to restore faith in Yahoo! investors.
Stumble It!
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