The week started on a hopeful note after the de-escalation of tensions between Israel and Iran. Gold and oil retreated, equities gained. Bitcoin was better bid following halving while cocoa futures continued to fluctuate near record highs. On the economic calendar, a series of PMI data are expected to confirm a slight improvement in global activity levels and a further divergence in US rebound. On the corporate calendar, tens of S&P500 companies are preparing to report their Q1 earnings. Among them, Tesla is due to reveal its Q1 results after the bell and the expectations are weak. The selloff could continue if the company fails to convince investors on three major points. 1. Are sales continuing to fall after the sharp Q1 decline? 2. Is it a good idea to continue cutting the price of EVs provided that the latest cuts didn’t necessarily help boost sales? 3. Are robotaxis and self-driving cars realistic in terms of profit and growth? Elsewhere, optimism regarding the S&P500 earnings reigns - which to me is an alarming sign. Remember, too much optimism kills optimism. Listen to find out more!