How options traders are setting up for the major tech earnings this week

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Four of the so-called 'Magnificent Seven' mega-cap companies will be reporting this week.

Bellwether as defined by the Cambridge Dictionary as "a particular event, result, etc. that usually shows how a more general situation will develop or change." As investors we often look to earnings results, particularly management comments and guidance, to help us better understand the state of the economy. Of course it is not just the earnings results or forward looking statements management might release themselves that matter, but also how investors respond to that information.

with disappointing revenues outperformed financials which had already been badly punished, suggests to me investors are unwilling to go out on the macro-economic limb, and still prefer idiosyncratic risk. Big Tech earnings This week is less about reading between the lines/through results, and contextualizing management comments, but rather it's about the market itself. Well over 40% of the S & P 500 by market capitalization reports earnings over the next 5 days.

 

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