Why Wall Street May Be Too Bearish On The Mag-7

The Setup Into Mag-7 Earnings

Earnings 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.