Momentum Monday – Big Tech Reports Earnings

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The earnings season is heating up and there are several hundred major companies reporting this week. Some of them – AMZN, AAPL, FB, GOOGL, SHOP, SPOT, UPS. Given the weightings of the first four, their earnings reports will be market-moving events. For the most part, I expect any gaps to be faded in them – if they gap up, we might see a temporary sell the news events as expectations are highs given the moves in the past 2-3 months. If they gap down, the downside will probably be limited to their 50-day moving averages as the market still believes that the dips are buying opportunities because of the Fed’s open market purchases. 

The rotation into sectors that would benefit from the “re-opening” of the economy hasn’t happened yet. There have been the occasional spikes but for the most part, no follow-throughs. Restaurant stocks shined on Friday in red tape. Let’s see if they can continue higher next week.

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