Now we can start shorting earnings (reposted with proper chart)
Take a look at CIEN and PD today, dropped right back into pre-COVID trading range.
Appears the zero interest rate pump is finally over, we can finally start looking for stocks to short on earnings . Look for stocks that have melted up but don't have the earnings to back it up.
Expect a lot of stocks to drop to pre-COVID levels. Not all tech stocks though, COVID has changed the way some companies do business. Certainly there will be more video conferencing and working from home even after a vaccine comes out, and PPE sales will be higher than pre-COVID levels, etc. But I think the parabolic trajectory is over.
Appears the zero interest rate pump is finally over, we can finally start looking for stocks to short on earnings . Look for stocks that have melted up but don't have the earnings to back it up.
Expect a lot of stocks to drop to pre-COVID levels. Not all tech stocks though, COVID has changed the way some companies do business. Certainly there will be more video conferencing and working from home even after a vaccine comes out, and PPE sales will be higher than pre-COVID levels, etc. But I think the parabolic trajectory is over.
Gary Smith, President and CEO, Ciena. “Although COVID-related market dynamics have resulted in an orders slowdown and are likely to adversely impact our revenue for a few quarters, we are confident in our ability to continue executing on our strategy and expanding our market leadership."
investor.ciena.com/n...Results/default.aspx
I said a couple of months ago that companies will decrease tech spending to cut costs, looks like that may be happening now. Non-tech companies are struggling to make enough profits to pay dividends, there will be more cost cutting ahead.