Applied Optoelectronics, Inc. had a wonderful swing back in 2016-2017, then spent the last couple of years in an ugly pattern.

The results of our model portfolio are one year old. We were up 14.2% versus the tech heavy NASDAQ, QQQs up about 5.4% in that same time. Here's the results and some thoughts.

In morning trading, shares of Applied Optoelectronics have plunged over 12% to $27.53.

Take a look at three trading ideas to prep you for the next trading session.

Applied Optoelectronics stock is currently down 9.3% to $32.00 per share in after-hours trading shortly after its earnings report was released.

Applied Optoelectronics was a market favorite in early 2017.The stock soared as buyers chased after each other to grab a piece of this ultra hot play.

We saw that the semiconductor sector had a wonderful year in 2017. However, the stock price of AAOI is a total failure. Since the third week of July, price of AAOI has fallen for a staggering 70% from the top of 103, and its price is still falling.

The bulls are in full control. Until then, shorting the market serves little to no puprose.

I have no predictions for 2018 and I would highly encourage anyone reading this to ignore every single prediction they read anywhere since none of them are necessary or helpful.

Today's stock picks include Weight Watchers, Walt Disney and Applied Optoelectronics.

Revenue expected to grow 78.70% in the next year, and another 21.20% next year.

The tech-heavy Nasdaq staged a spectacular rebound to post its longest run of gains in two years on Jul 18. Boosted by stellar results from Netflix, Inc., the index has now increased over eight successive sessions.

Tech companies were some of the best performers in the first half, resulting in the splendid performance for the Nasdaq in almost eight years, while the financials space also gave healthy returns on the back of solid stress test results.

The space was red hot this year with XLK returning over 15% on the year-to-date basis even after the sell-off. However, the journey halted on June 9 after Goldman Sachs Group Inc. raised a red flag for tech stocks.

Markets notched up gains once again last month, with tech stocks leading the pack. Indications emerged that the Fed was going to trim its balance sheet even as investors prepared for rate hikes.

While economic and earnings fundamentals will be the bigger catalysts behind the stock market's move in June, we shouldn’t forget that the S&P 500 is already on pace for its sixth positive month out of seven in May.