To The Moon

Earnings season is a period when a substantial percentage of publicly traded companies release their quarterly results. It typically begins two weeks after the end of the quarter (in the middle of January, April, July, and October).

Without doubt, consistent earnings are arguably the most important driver of individual stock performance and by extension, the performance of the overall stock market over the long run.

Banks - Goldman Sachs, Bank of America, Morgan Stanley

The US biggest banks, including JPMorgan Chase, began reporting quarterly earnings last Friday. All the banks share price retraced after their earnings release, and I believe it will be the similar case for the rest of the banks this week.

The fight to rein in inflation continues to weigh on some of the nation's largest banks. Higher interest rates crimped their profits and left more consumers struggling to keep up with elevated borrowing costs.

Next week, we are going to have the following banks' earnings release :

- Goldman Sachs : MON before open

- Bank of America : TUES before open

- Morgan Stanley : TUES before open

GS daily chart

BAC daily chart 

MS daily chart

By looking at their technical charts, all of their share prices are still hovering somewhere near the All Time High. The uptrend still valid and healthy for the moment but I tend to vote bearish for $Bank of America(BAC)$ , Goldman Sachs and Morgan Stanley, for their short term movement following the reaction of their peers (JPM $JPMorgan Chase(JPM)$  , WFC $Wells Fargo(WFC)$ , C) of having the share price pullbacked after the earnings. Do take note that the bearish view is for short term horizon only. For mid to long term, I am still confident with bank stocks.

TSM

Shares in the world's largest chip foundry, Taiwan Semiconductor Manufacturing, climbed last week after reporting stronger than expected sales, driven by the artificial intelligence trend. TSMC works with Nvidia, the world's most valuable chip company, in several ways, including being the sole maker of Nvidia's AI graphics processing units, which are key chips used by companies to train and deploy AI models. Most of Nvidia's high-end chip production is done by TSMC at its factories in Taiwan.

TSM daily chart

By looking at TSM daily chart, the share price is extremely bullish and stay at its all time high. With such bullish setup in its chart (having all the EMA lines curving upwards and the share price stands firm above EMA10), I believe TSM $Taiwan Semiconductor Manufacturing(TSM)$  will continue to shoot next week. It is a stock not to miss out after NVIDIA.

Netflix

Netflix has created many hit shows exclusively available on its platform that have attracted a massive customer base. The firm's advantage in cash generation means this virtuous cycle will likely continue. Advertising-supported subscriptions will open Netflix to a new base of subscribers and a potentially substantial new source of revenue. However, Netflix is beginning to face competition that it has not had to deal with in the past. As consumers have more options for quality streaming services, it's more likely that the platform could get cut out of some consumer budgets.

Netflix daily chart

By looking at Netflix technical chart, its share price has been pullbacked from its all time high towards 640 USD neckline support. This is a strong support and Netflix should be able to hold well above this level. With this setup and if the earnings result is good, Netflix $Netflix(NFLX)$ will probably rebound and engage into another cycle of rally.

Generally, investors will be looking to see if subscriber growth is slowing substantially after Netflix passes the tailwind from its password-sharing crackdown, and whether it will stop regularly disclosing this metric in 2025. Investors will also be interested in international sales and subscriber growth. This will be a key driver for the company if domestic growth slows.

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