Big Tech Earnings Preview 1.0

Last week I noted that the July high coincided with Netflix earnings which is usually the first "FANG" stock to report during the quarter. This past week, the Tech sector peaked with Netflix and then lagged the broader S&P 500 for the rest of the week. Specifically when Tesla imploded. That late weakness created the biggest shooting star candlestick on the S&P Tech weekly chart since July. Which makes this coming week critical to the Tech bull market...

This week in Big Tech earnings:

Tuesday: Microsoft and Google

Thursday: Apple, Amazon, Meta

In other words, the FOMC decision is bracketed by major Tech earnings on both sides, so it could be a very interesting week.

As I've shown many times previously, whether or not these Tech major beat or miss on earnings, the market reaction depends upon the technical position of the stocks coming into earnings season. What Wall Street calls a "beat" could be a massive decline in earnings which is what we've seen many times recently.

In this blog post I will focus on Microsoft and Google, saving the other three for a follow-on post.

First, on Microsoft, I would point out that this stock was the cover story of Barron's this weekend. It is now the most valuable company on the planet, having surpassed Apple this past week.

Here we see the stock is rising vertically above the 50 day moving average as it was in July into that quarter's "beat".

Next we look at Google / Alphabet:

Google made a new all time high just this past week. As we see it had been in a rising wedge which broke out to the upside. At last quarter earnings the company beat on earnings, but as we see the stock imploded.