As We Enter The Eye Of The Tech Earnings Hurricane, Here's The Good News, And The Bad News

From Peter Callahan, TMT Sector Specialist

Nasdaq up 6.5% last week, now impressively up 1% in the month of April (not a typo) – a rally that has been driven by 

• i) better earnings (TMT sporting the highest beat rate – chart below), 
• ii) a relaxed Vol backdrop (VIX back into the mid-20s), 
• iii) a stable Rates picture (10yr ~4.25%), 
• iv) cleaner positioning (see GS PB data re: Info Tech exposures nearing multi-year lows, on %-ile basis) and 
• v) a perceived positive ‘rate of change’ on the policy front (think; US Economic Policy Uncertainty Index back to March levels);