The market is doing us shorts a favor (up 2% in a day, are you kidding me?!) and providing a beautiful opportunity to sell your over-priced long positions and get short. I keep recommending SQQQ (triple short the Nasdaq 100) because the most overvalued stocks (i.e., with the most downside) are the large tech companies that dominate the Nasdaq. The PEs on nearly all of these stocks are far higher than the overall market and far higher than we expect at a stock market bottom.

What does that mean? Well, it means they are going lower. Earnings estimates are coming down and are due to come down quite a bit more. Remember, the actual effects of the interest rate hikes (which started in March) are just beginning to show. Sell any and all of these stocks with PEs > 20. Buy SQQQ. Buy TECS.

Earnings Recession is Coming

There will be an opportunity to buy these stocks lower in the coming year. Much lower. Sell now and wait for it. We will revisit this list in a few months and see where the prices are.

If you don’t believe me, read up from the universe’s best strategist: Top stock strategist says an ‘earnings recession’ is coming for markets—and it could be similar to what happened during the 2008 financial crisis | Fortune

I doubt this is a bear-market rally as happened in November Shorts Get Clobbered – Time to Reload! – The Philosophical Trader, more than likely a counter-trend blip, possibly a wanna-be Santa Claus rally, so be quick and take advantage.

SymbolP/EMarket Cap Last
AAPL21.68$2.10T $  135.86
MSFT26.05$1.80T $  245.45
AMZN78.62$869.08B $    86.98
GOOG17.8$545.49B $    90.76
TSLA42.45$435.14B $  139.49
META11.17$310.47B $  120.14
ORCL25.28$218.23B $    81.84
CSCO17.14$194.60B $    47.87
ADBE33.48$157.24B $  343.28
NFLX27.17$128.25B $  299.34
IBM87.23$127.73B $  142.91
QCOM9.81$125.66B $  114.80
SAP39.26$122.21B $  105.24
INTC8.16$109.12B $    26.86
PYPL34.97$78.39B $    69.54
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