Earnings could be a 'sell the news event' for the mega-cap tech stocks, strategist says

FAANG stocks displayed at the Nasdaq.
Adam Jeffery | CNBC

The mega-cap technology companies that have led the way higher this year could be in trouble as they report earnings, said Jonathan Krinsky of Bay Crest Partners.

"A lot of these mega-cap names are very stretched relative to their long-term moving averages as they come into earnings," Krinsky, the firm's chief market technician, told CNBC's "Halftime Report." "The risk is a bit of sell-the-news. You saw that a bit with Netflix last week."

Netflix shares took a beating after the video streaming giant reported weaker-than-forecast earnings last week. The stock dropped more than 6% on Friday.