Other recurring themes:
4. more write-offs of bad debt announced
5. more writeoffs of inventory announced
6. weak demand in U.S. and Japan is spreading world-wide
7. massive "special one-time-only please-ignore-this" charges, just like last quarter, just like next quarter
8. If anybody does offer visibility, look to see what justification they give to back it up. That is, is there any firm basis for it, or are they just hoping?
I'm sure the news this earnings season will be bad, but I'm not sure how the stocks will react to it. No one is expecting good news. Lots of stocks (like NTAP) have actually gone up on horrible news.
But, I firmly believe three things:
1. we are in a bear market
2. in bear markets, rallies fail and go on to new lows
3. the way to make money in a bear market, is to take the "buy-the-dip" tactic that worked so well in the bull market, and turn it on its head. Until I see evidence that we are not in a bear market, I will consider shorting just about any tech that makes a 30% upmove off its lows. "Sell The Rally" is my motto. |
