The Setup Into Mag-7 EarningsEarnings week has arrived with sentiment toward the Mag-7 close to washed-out levels. While much of the market remains focused on whether AI spending is sustainable, positioning, dealer flows and options markets suggest the bigger risk may be an upside surprise rather than another leg lower.Several positioning indicators suggest the market may be underestimating upside risk into earnings.
Why Wall Street May Be Too Bearish On The Mag-7
Has Wall Street become too bearish on America's biggest cash machines? Hedge funds have cut exposure aggressively, dealers are short gamma, and expectations have been reset just as earnings season begins. Here's why the pain trade may be higher.
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