First, we want to take credit for warning our readers in Thursday's Psychology (http://psychologyofthecall.blogspot.com/2008/04/thursdays-intra-day-psychology-as-you.html) that GE is a very important S&P component and will have a market impact.
The conference call was shocking. It was filled with great frustration from Wall Street analysts and management kept saying "we don't mean to give excuses". We urge our readers to listen to the question and answer session. You'll realize why Commandment #6 is so important and realize that GE's management is guilty. The recent credit problems and fall out were unavoidable for GE's finance units, but their results were worse than most analysts expected. Now we have proof of the "dead cat bounce" that occurred on April Fool's Day; we hope you listened to our advice and didn’t get completely caught off guard. Remember the prudent allocation of 50% stocks (long&short) 30% iShares Lehman ‘TIP’s, and 20% cash.