Last week, as Q1 earnings season kicked into high gear, we noted that in this environment of outsized reactions to earnings, where beats aren’t being rewarded (with the median stock outperforming by only 50bps vs 101bps historic avg) while misses have underperformed (by 247bps vs 206bps historic avg) ...
... kneejerk trades are driven more by positioning and technicals than fundamentals.
