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With Boeing's negative guidance, the stock market is in real trouble when the leader succumbs so goes the battle
Karen Zuba
Oct. 24, 2007
Boeing came out with lower guidance for 2008. That can be the signal of massive trouble for the stock market next year. The company says quarterly earnings rose a greater-than-estimated 61 percent on surging orders from Asia and the Middle East.. but the problem lies in the expectation next year.
Boeing provided sales guidance for the next year. It will be below an earlier forecast, The shares of Boeing fell on the guidance.
Boeings negative guidance is very negative for the market. This is exactly what happens before a major long term bear market.
Boeing is one of the best performing leading blue chip stock in the market today. When such stocks start providing negative guidance, the economy and the stock market start going south from that point.
Based on historical data, before past major recessions and stock market bear markets, prospering companies started falling four months before major market crack and ten months before the R word was common in the main street.
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