Are Alphabet And Microsoft Overextended Heading Into Earnings?

Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) and Microsoft Corp (NASDAQ: MSFT) are overextended heading into earnings, Katie Stockton of Fairlead Strategies said Monday on CNBC's "Squawk Box."

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The rise over the past month has been steep, Stockton said, adding that the stocks could see pullbacks to their breakout points.

In the short term, the recent moves make her feel "uncomfortable" going into earnings, she said.

There is 5-8% room to retrace to the 50-day moving averages, Stockton told CNBC.

However, Alphabet and Microsoft have been "stair-stepping higher" which is bullish on a long-term basis, she added.

Related Link: Carter Worth And Mike Khouw's Microsoft Trade

Earnings: Alphabet and Microsoft are both scheduled to report earnings on Tuesday.

Price Action: Alphabet GOOGL shares were up 0.84% at $2,319.25 and GOOG shares were up 0.84% to $2,334.84 at last check Monday.

Microsoft was up 0.46% at $261.27 at last check Monday.

(Photos: Left, Google, Shiwa ID on Unsplash; right, Microsoft)