"Investor focus is shifting back to the AI trade ahead of upcoming earnings"

1. USD valuation. "USD valuations remain an issue ... USD is still trading at a rich premium on most valuation metrics; and since there is no obvious catalyst that would argue for meaningful appreciation in the near term, we think the path of least resistance is a weaker dollar."

2. Crypto asset flows. "Digital asset investment products saw US$1.4bn of inflows, the third consecutive positive week and the strongest since January ... Total AuM reached US$155bn, with flows representing 0.91% of AuM, the highest weekly intensity YTD."

3. CTAs vs. equities. "We estimate that CTAs bought $44bn of US equities last week and $84bn globally. Over the next week, we estimate CTAs will continue to buy US and global equities in every scenario."

4. Tech price vs. EPS growth. "While Technology is clearly driving this exceptional earnings growth, it's also the one sector that's lagging its own earnings story by the most across the S&P 500."

5. PEG ratios. Relative to projected earnings growth, the Tech sector is trading at a steep discount.

ICYMI