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1/3
Very simply, here's why I shorted the hell out of $QQQ on Friday afternoon.
5 companies that make up 44.71% of $QQQ report earnings this week.
Very simply, here's why I shorted the hell out of $QQQ on Friday afternoon.
5 companies that make up 44.71% of $QQQ report earnings this week.
2/3
My base case is 3 of 5 are going to disappoint ($AAPL $FB $GOOGL).
All 5 could.
Perfection is priced in for $AMZN.
$MSFT is heavily exposed to capital projects, and we've seen the brakes slammed on CAPEX spending.
My base case is 3 of 5 are going to disappoint ($AAPL $FB $GOOGL).
All 5 could.
Perfection is priced in for $AMZN.
$MSFT is heavily exposed to capital projects, and we've seen the brakes slammed on CAPEX spending.
3/3
If these 5 weigh a net total of 5% on $QQQ this week (which I believe is conservative based how I project earnings), that's a 2.24% hit to $QQQ (down to $209) even if the impact doesn't spread to other stocks (which we know it will).
Therefore, easy R/R short for the week.
If these 5 weigh a net total of 5% on $QQQ this week (which I believe is conservative based how I project earnings), that's a 2.24% hit to $QQQ (down to $209) even if the impact doesn't spread to other stocks (which we know it will).
Therefore, easy R/R short for the week.
One other note: all of these companies have withdrawn guidance. The sell side will make up VERY low "estimates" they know the companies can beat. Comparison versus last year is more important.
