The Expectations Indicator report will be released in the following format till we decide to change it.

High Expectations – Listed by Highest to least highest expectations

1. Energy, Basic Materials, Consumer Services and Technology are tied
2. Utilities and Telecommunication

Low Expectations – Listed by Lowest to highest lowest expectations

1. Financials
2. Industrials

The following had no change in Expectations; Healthcare and Consumer Goods

Overall the market has relatively High Expectations.

Since the Expectations Indicator concept is new, only time will prove this it useful or useless. This indicator will continue to be released until proven not useful. The indicator is for information purposes only and is not meant to constitute any type of financial advice. We also do not guarantee the accuracy of the above information and at any point may alter, change the process of producing it and or discontinue it.

In this update of the Expectations indicator the largest moves in expectations occurred in Technology going from high to neutral expectations and Consumer Services which has stayed at high expectations, but in the actual data increased rather significantly.

Healthcare has gone from low to neutral expectations maybe showing a pause. Industrial has moved from neutral to low expectations. Real Estate has moved from high to neutral expectations. From the data, it looks like the market has relatively high expectations for the retail sales report due Wednesday.

From the Expectations Indicator report it looks like the Dow 30 and S&P 500 will still look to move higher on the shoulders of basic materials, industrials, utilities and energy. The market may show weakness in the overly speculated sectors (over the past few months) in preparation for the retail sales numbers.

Corrections: On the May 6th, 2009 Expectation Indicator update had two errors due to poor data entry. Real Estate was should have been high rather than neutral expectations, financials should have been low rather than high expectations and lastly the overall market average was low not neutral expectations. Remember this is a new indicator and errors can happen. It is still in the concept stage and the process of gathering the data is new.

Since the Expectations Indicator concept is new, only time will prove this it useful or useless. This indicator will continue to be released until proven not useful. The indicator is for information purposes only and is not meant to constitute any type of financial advice. We also do not guarantee the accuracy of the above information and at any point may alter, change the process of producing it and or discontinue it.

Healthcare had gone from high to low expectations, actually the real data really showed that the market overall raised its expectations and Healthcare stayed the same. Industrials went from high to neutral expectations showing that that this sector possibly has topped out. Consumer goods went from high to low expectations showing the market seems to be shifting to risk adverse staples. Real estate went from low to neutral expectations, again this was a case where the expectations for real estate stayed the same but the overall market expectations where raised.

The overall market expectations where raised from low to neutral expectations. The S&P 500 went from high to low expectations caused by the lowered expectations in consumer staples and energy which are currently heavily weighted in the index.

Since the Expectations Indicator concept is new, only time will prove this it useful or useless. This indicator will be released weekly until proven not useful. Going forward we will also be using popular Indexes to measure its success from the previous week. The indicator is for information purposes only and is not meant to constitute any type of financial advice. We also do not guarantee the accuracy of the above information and at any point may alter, change the process of producing it and or discontinue it.

The theory behind the Expectations Indicator is that it is easier to exceed low expectations than high ones. For more information on the Expectations Indicator click here.

Since the Expectations Indicator concept is new, only time will prove this it useful or useless. This indicator will be released weekly until proven not useful. Going forward we will also be using popular Indexes to measure its success from the previous week. The indicator is for information purposes only and is not meant to constitute any type of financial advice. We also do not guarantee the accuracy of the above information and at any point may alter, change the process of producing it and or discontinue it.

Expectations that are missed typically have a negative impact. Expectations that are met typically have a neutral effect. Lastly expectations that are exceeded, most of the time, command a positive effect. The interesting effect of expectations is that they seem to supersede the underlying real data or action.

Imagine two children attend the same school and take exactly the same classes. One of the children is an A student and the other is a B student. On report card day both come home with straight A’s. The A student met expectations and the B student exceeded them. I will bet you the parents’ response will be more favorable for the B student who exceeded expectations, even though they got the same exact grades.

The Expectations Indicator is hopefully a way to show trending expectations for a sampling of the market and individual sectors. This indicator is not meant to give advice on market sentiment, but more of an understanding of its expectations. The expectations indicator views measureable changes in earnings expectations.

When expectations are low, typically it is easier to exceed them. If expectations are high, it is usually easier to miss them. When expectations are neutral, expectations are just as easy to miss or exceed.

The first Expectations Indicator results should be released Monday from information gathered on Friday May 1rst, 2009. Since Expectations Indicator concept is new, only time will prove this it useful or useless. This indicator will be released weekly until proven not useful. We will also be using popular Indexes to measure its success from the previous week. The indicator when released is for information purposes only and is not meant to constitute any type of financial advice.