This Week Will Be Big For Traders

As a trader myself, we're headed into one of my favorite weeks of the year. This week, there will be several major companies releasing earnings reports; and we all know what earnings reports are capable of. So, we should see some massive movement in the market this week; giving us the opportunity to capitalize on trends. So today, we'll discuss what I'm expecting to see throughout the week and chat about some of the larger earnings reports that will be released.

I Don't Have High Hopes For Earnings

Unfortunately, I'm not expecting overwhelmingly positive reports; and the masses seem to think the same. As a matter of fact, the Dow Jones Industrial Average dropped nearly 300 points Friday as investors anticipate earnings.

So, What's The Big Deal?

Investors are taking economic factors into account leading into earnings season. The reality is that in the past few months, there have been several red flags that could be preludes to earnings disappointments. For example, the strong US dollar is killing exports for several US companies, US consumer spending is nearing lows, and we're starting to see a slowing trend in payroll growth. Considering the fact that consumer spending accounts for nearly 70% of GDP, and the US dollar is harming the second largest GDP figure, it comes as no surprise that investors seem a bit timid at the moment.

Big Earnings Reports To Watch Next Week

• Facebook (FB) – Facebook will be releasing its earnings report on April 22nd. This is one to watch closely as a binary options trader because the stock is already known for price volatility. So, no matter which way the report goes, we're bound to see some strong trends.
• Google (GOOGL, GOOG) – Google is another big report that's scheduled to come out on April 23rd. In the last report, the company admittedly struggled with the strong US dollar and slow growth in click values. Unfortunately, with the growth we've seen in the value of the dollar over the past 3 months, I'm not expecting to see anything different. However, I am expecting investors to react a bit differently. This will be the second report in a row where the company is most likely to miss on earnings. So, even though Google saw meager gains after the last report, if this report mirrors what we saw 3 months ago, we'll most likely see some major downward movement.
• Microsoft (MSFT) – Microsoft will be releasing their report on April 23rd as well. However, this is going to be a very big one. Following the release of the last earnings report, Microsoft tanked and has traded low since. So, if we see negative remarks in the report, we can expect to see yet another massive fall. However, if the report is positive, the stock is likely to recover from the losses we saw months ago following massive gains.

Final Thoughts

While I'm not expecting much positive news from this week's earnings report, I'll definitely be enjoying the trends which ever way they may go. If you know of any other major companies that will be releasing their earnings reports this week, let us know in the comments below. Otherwise, happy trading my friends.