Fundstrat's Tom Lee: Most stocks haven't reflected strong earnings season

Market Outlook - The S&P 500 is projected to reach 7,300 in the near term, indicating a potential recovery for stocks [1] - Recent economic reports have been positive, suggesting that the market may gradually climb towards the target [3] Earnings Performance - The earnings season has shown strong results, with a significant percentage of companies beating expectations, although this has not yet been fully reflected in stock prices [4][5] - There is a belief that double-digit earnings growth could support a continued upward trend in stock prices [5] Market Dynamics - Current market conditions are influenced by various factors, including AI developments, changes in Federal Reserve leadership, and geopolitical tensions [6] - Despite good earnings, market multiples have been affected, leading to a pullback in stock prices [6] Investment Strategies - Three key trades are identified: a rotation back to the "mag 7" stocks, potential bottoms in software (IGV), and crypto markets [7] - The "mag 7" stocks are currently trading at a discount compared to other sectors, which is a rare occurrence [8] - The crypto market has experienced significant drawdowns, suggesting potential for recovery [8] Upcoming Catalysts - Nvidia's upcoming earnings report is seen as a critical event that could influence market sentiment, particularly in the software sector [9]