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The Calm Before The Storm
This week is a major earnings reporting week. Microsoft, Intel, Amazon and many others are due to commit pen to paper this week to inform the market how their fundamentals are holding up in what is purported to be the Coming Great Recession. Sentiment re. those names has been very very bullish since the start of the year - the Nasdaq was slow to move up off of its October lows and indeed retested those levels on 3-4 occasions, but once the smell of Federal liquidity hit the market in the wake of bank failures, Big Tech mooned and has yet to fall back to Earth. You've seen us say for some time now that the Nasdaq looks extended short term, that we're looking for a catalyst to deliver the next corrective move down (in the context of an index we believe will make new all-time-highs within 12-18 months). The most likely candidate for such a catalyst is a poorly-received earnings report from 2-3 market-significant stocks - your MSFTs and so forth.
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For now let's take a look at the market indices as we see them.