Strong megacap earnings could trigger year-end rally - Defiance ETFs
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Defiance ETFs CEO Sylvia Jablonski said Tuesday that upcoming earnings from the likes of Apple (NASDAQ:AAPL), Microsoft (MSFT), Amazon (AMZN) and Alphabet (GOOGL) (GOOGL) present a "crossroads" for the near-term direction of the market.
Speaking to CNBC, the CEO, CIO and co-founder of Defiance ETFs stated that strong results from the megacap names could trigger "that year-end rally that we're hoping to see."
On the other hand, Jablonski warned that negative results from these bellwethers could drive stocks in the other direction. "I think that if they miss ... we're definitely in for some short-term pain," she said.
Jablonski argued that "not terrible" results from "the average Dow, S&P stock" would be interpreted by the market as "a win." However, she feels the tech megacaps fall into a different category, with the market likely to stage a sizable reaction to any signs of weakness.
"If they have big misses, I think that's going to really impact the market in the short term in a negative way," she said.
"So, if you have VIX sitting around 30, any of these names come in with terrible or unexpected negative guidance, I do think that in the short term, we're going to get a pullback on that," Jablonski added.

For another perspective on the rest of the year, see why Bank of America thinks that value funds can outperform the rest of the market going into year-end.