We're coming off an exciting week of trading with disappointing earnings from Netflix (NFLX) and Tesla (TSLA) and upside surpises from the banks.
Now let's look at what's ahead this week.
Click this image for a full calendar:
Tech has been remarkably strong in 2023 and QQQ is still crushing SPY by more than 2:1:
As of Friday at 1:34 p.m. ET
And that's after earnings-driven declines in Tesla (TSLA), Netflix (NFLX), and the semiconductors this week.
But we're just getting started.
We're coming up on a pivotal week with plenty of big tech earnings reports including
AI has been the #1 buzzword on the Street, which has close eyes on Microsoft and Google for opposing reasons.
Investors want to know how far Microsoft is ahead, and how far Google is behind.
Meanwhile, Meta has a lot to prove with the stock up over 75% this year.
And Amazon is in close focus as a barometer for the consumer.
On Friday, JP Morgan reiterated its stance that Amazon is the best internet play right now, so we'll see how things pan out Thursday.
David Prince of T3 Live's Inner Circle rode up Amazon this week so follow him for more insights on the stock:
$AMZN Has been a wonderful ride. I trimmed much of my position today given my 108s are up huge. We have 3-4 big cap reports b4 their print and might very well buy $AMZN on any pullbacks pre thur night.
— The Inner Circle Trading Group DP David Prince (@epictrades1) April 21, 2023
While bank earnings are mostly behind us, there's still a biggie to watch Monday morning – even though it's a regional name.
Of course we're talking about First Republic Bank (FRC), which is 90% off its February highs thanks to the regional bank crisis:
This week, Charles Schwab (SCHW) — also caught up in the decline — bounced hard after its Monday morning earnings report:
Traders will be eager to see if FRC is going the way of Schwab… or Signature Bank.
Energy has lagged in 2023 after crushing strength in 2021 and 2022, as you can see in this chart going back to January 2021:
Exxon (XOM) and Chevron (CVX) report earnings on Friday, which will show us the strength of the industry.
On top of those, we'll get plenty of reads on the economy from the likes of:
We had few important US economic data points last week, but things get busier this week with:
The PCE Price Index is a biggie because it's one of the Fed's prime inflationary indicators and could thus impact monetary policy.
Speaking of inflation, Germany, France, Spain, Australia, and Singapore will reports CPI numbers this week, giving us a better read on global inflation trends.
Germany, France, Spain, and Canada also report their Q1 GDP figures.
The AAII Sentiment Survey shows that just 27.2% of investors are bullish, well below-the long-term average of 37.5%.
That's flat from last week:
According to AAII, “bullish sentiment remains below its historical average of 37.5% for the 71st time out of the past 73 weeks.”
Pretty bearish… right?
But CNN's Fear & Greed Index shows that traders are greedy:
Permabulls always say everyone's bearish.
Permabears always say everyone's bullish.
The truth is somewhere in the middle…
Scott Redler of T3 Live's Alpha Team VTF® talks to Greta Wall about his life in trading:
Want to learn Sami Abusaad's gap trading secrets?