Profitable Short Play as Equities Tumble: Friday Top Performer
Wednesday and earlier yesterday, markets appeared to be rallying from their sharp selloff earlier in the week. A late-day selloff, however, emerged to leave most major indexes in the red for the day.
Today, the bearish tone to the week is only becoming more apparent, with stocks closing in on their largest one-week losses in over two years. A solid US jobs report, coupled with an uptick in wage growth, triggered fears that interest rates will only be rising in coming months. The sharp equity selloff is running parallel to a bear run for bond markets.
The declines are broad-based, with nine out of ten sectors down at the time of this writing. Such volatility only increases the potential opportunities available for news-based traders, like News Quantified users. Unsurprisingly, today’s Top Performer is a short play.
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PI dropped sharply after announcing its quarterly earnings just after the close of yesterday’s session. While it just met this quarter’s earnings expectations, PI substantially revised expectations for Q2018 downward. In this “priced to grow” market, such shifts in future earnings expectations can drive serious selloffs.
Indeed, investors poured out of PI on the news, leaving it down over 45% at the time of this writing.
The earnings news, released yesterday afternoon, was only exacerbated this morning by a series of high profile analyst downgrades—all reported by News Quantified in real time.
Diverse Plays, Great Profits: All in a single news day.
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