US stock earnings season is here! Record profits—why you need to be even more careful?

Brothers, the US Q2 earnings season officially kicks off today. The market expects the S&P’s overall earnings to jump 24%, a solid all-time-level performance—but the more lively it gets, the more you can’t afford to be careless.

The tech “Magnificent Seven” that led the charge earlier this quarter is clearly lagging. The rally has already quietly spread across the whole market. Non-tech stocks’ earnings growth has hit the best in nearly five years, and sector rotation is basically confirmed. But now valuations are still sitting at high levels—even if results just meet expectations, the market may still treat them as a negative. Earnings expectations have long been pushed to the ceiling.

The AI “monetization midterm” is underway. While the giants spend $1 billion+ on expanding infrastructure, profit margins have come under significant pressure. Even a surge in chip earnings couldn’t prop up the stock price. Add in more share issuance and shrinking buybacks, and the pressure from earnings dilution is substantial.

In earnings season, opportunities and traps coexist. We won’t blindly chase higher prices. Tighten the core logic and execute steadily—the rhythm will naturally be in your hands. #SOXL $SOXL ‌