I find the current earnings season quite telling, with the kickoff being far from optimistic. The fact that even earnings beats only lead to modest gains, while misses are punished heavily, suggests a cautious market sentiment. This trend is evident in the examples provided.

I note with interest the case of Google $Alphabet(GOOGL)$  , where despite beating expectations, the stock opened higher but ended the day up just 0.88 percent. The subsequent 8 percent drop after earnings, leading to a total decline of 14 percent over three trading days, is a stark reminder of market volatility. Similarly, TSMC's $Taiwan Semiconductor Manufacturing(TSM)$  3 percent post-earnings gain followed by a red candle and three consecutive days of decline reinforces this pattern.

I believe most of the Mag 7 companies, including META $Meta Platforms, Inc.(META)$  , AMZN $Amazon.com(AMZN)$  , and AAPL $Apple(AAPL)$  , which will release earnings next week, will exhibit similar movements. The market appears to be in an overbought condition, which often leads to such erratic responses to earnings reports. This observation shapes my current outlook.

However, I see a silver lining in this scenario. A healthy pullback is always great for a long and sustainable rally. It provides an opportunity to reset and build a stronger foundation for future growth, which I believe is essential for these stocks.

For this reason, I will remain attentive to any possible nice entry price. With the market showing signs of overextension, a pullback could offer a strategic point to increase my holdings. I am particularly interested in how these upcoming earnings might influence such opportunities.

I plan to monitor closely the performance of META, AMZN, and AAPL next week. Their results could either reinforce the current trend of muted gains and sharp losses or potentially shift the mood if they deliver exceptional reports. This will be a key factor in my decision-making process.

The question of whether these Mag 7 companies can shift the mood is intriguing. While I am skeptical given the overbought conditions, I remain open to being surprised. My strategy will hinge on waiting for clearer signals from their earnings outcomes.

In conclusion, I expect similar movements for most of these companies due to the market's overbought state. I welcome a healthy pullback as it sets the stage for a sustainable rally, and I will keep a close watch for attractive entry points. Monitoring closely is my priority moving forward.

As a retail investor, I focus mainly on the US and Singapore markets, combining a mix of technical trading and long-term investing strategies. I enjoy analyzing charts, spotting patterns, and making calculated moves based on both market sentiment and fundamentals. While I'm not a professional, I treat my portfolio seriously and continue to learn and grow with each trade. If you're also navigating the markets and enjoy discussing stocks, options, or market trends, feel free to follow me. Let's learn and grow together as a community.

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