Next week FAANG earnings begin with NFLX and following 2 weeks all the big boys go. Are earnings going to be catalyst for next leg up or next leg down? I don’t think better than expected works anymore like it did in the summer.  One thing to note though all the major tech companies but Apple are trading below where they did at Q3 earnings.

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I’m prepared to see them drop unless earnings beat by a decent amount. I think stock price will at best stall from here until EPS growth lowers the P/E back to a more reasonable point.

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I agree with you and don’t think this is the quarter to try to play an ER run up. Interesting thing is we are also so close to the 200 SMA for NFLX, MSFT, and AMZN. Wonder if we will test those areas before earnings. We are also near the current price where NFLX has fallen to after the last 2 earnings so maybe it stays flat here before next week.

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