I believe Wall Street Research is dead. The banks have long known it and instead of just changing it, they cut costs making it worse. Analysts make less doing more and are mostly hated by both sides. they are like pilots, except pilots are important and underpaid :) .
Don’t get me wrong, there are good analysts – you never get their research…and there are drunk pilots…we have all flown US Air/America West, but partly dead IS DEAD in the research business.
So I am NOT amazed watching E-trade rallying 70 percent in the face of the FIRE call by Citibank. Yelling Fire in a real fire is something you just ALWAYS should pay attention to. ALWAY. Even at the risk of it being a hoax. I am not saying that you should do like Costanza and push over old people (wink), but you can’t fool around.
In the stock market though, FIRE is usually called at ‘TURN’ points and should RARELY be trusted. I am not saying be like Costanza and do ‘the opposite’ (wink), but don’t just take a ‘FIRE’ call as a reason to panic when you are in the markets. Once the panic dies down, like today, you get a much better sell point. No if you owned it into the FIRE call, you have no idea what you are doing as it was showing it’s bankruptcy hand through it’s inpet price action.