1. Jolly made a good point for those scared to be short, in that you close your position before the results and reopen after.
2. I think market sentiment on the S&P will in the medium term overshadow the ST impact of the results for News Corp. If you look at the S&P/NWS relationship between May and now, News has outperformed the trends both down and up in percentage terms.
3. A ten year linear graph of the S&P 500 suggests that we are sitting at the point of the right shoulder (on the viewers right) of the H&S pattern. A break below 840 is technically very bearish.
~ if S&P cracks, I think NWS (the ADR) will test October lows.
PE ratios are still high in US and this has been clouded by 'proforma earnings statements' & mistreatment of operating expenses & revenues by many coys (not saying News is one).
Redemptions from Mutual funds are also increasing & Cash has outperformed the Dow by 32% since January 2000.
