Digesting Big Tech Earnings, What's The Next Big Catalyst?

Benzinga's Premarket Prep team asked Tommy Lackey, CMT, what the next catalyst could be for big tech to push us back to all time highs.

Transcript

00:00So, Tommy, I mean, we just got through kind of the biggest week of earnings for big tech

00:05companies, you know, mixed across the board with a lot of, I think, disappointing reactions.

00:11So the earnings failed to, you know, lead us to that next breakout on the overall market

00:17to new highs.

00:19What could be the next catalyst?

00:20What could be the next thing that does bring us back to new highs and maybe reignite some

00:27positive action in the tech market?

00:29Well, and I think we already have seen a lot of it, Tore, again, I was talking with someone

00:34a few weeks ago, another show, and they were talking about the idea of tech doing nothing

00:39all last quarter.

00:41And they were pretty much lamenting that.

00:43And I'm sitting here with a monster smile on my face, like, that's awesome.

00:47I mean, we had huge runs in a lot of these tech names, especially the biggest ones.

00:52The fact that they spent three to four months moving sideways and didn't really give up

00:56a lot of ground, to me, that's a lot of underlying buying that kept them from really rolling

01:03over.

01:04Now, there are some that right now will have some precarious looks like Microsoft after

01:08their earnings, but it has not broken the major pattern down, the longer term pattern,

01:14which people are looking at as the larger head and shoulders pattern there.

01:18So that's probably one of the ugliest ones.

01:20But when you look at something like an Amazon monthly chart, like y'all had before, it just

01:24broke out of a huge base, consolidated sideways, and now it's back at, now that's the Amazon

01:29or the Microsoft one.

01:31I go to Amazon.

01:32If you don't mind flipping to Amazon, look at that monthly, it had a huge base, it broke

01:36out of that base.

01:38Now it's pretty much moved sideways other than that one little spike down there in the

01:42middle.

01:43And we're back towards the top of that range right now after a solid earnings.

01:48Like you said, lowest multiples, things like that in a long time.

01:52Does that look to you like a chart that needs to roll over or is way out of whack?

01:57And see, this is a chart that if this moves up, not only does it move consumer discretionary

02:03sector huge, especially the ETFs, which is where a lot of people pay their focus these

02:08days because it's such a heavy weighting in it.

02:10It also moves the S&P, it moves the Dow, it moves the NASDAQ.

02:15And so these are the kind of things that it just hasn't performed if you look at this

02:20monthly chart over that longer term period since 2021.

02:24Yes, we broke out, we've moved sideways for how many months is that?

02:281, 2, 3, 4, 5, 6, 7 or 8 months.

02:30And now it's back at the highs.

02:32How can I see that as bearish?