SARK - MAGS: Charting Magnificent 7 Shows New Trend (Technical Analysis)
2024-04-29 09:00:00 ET
Summary
- I take a fresh look at these giants of QQQ, as 5 of the 7 are now post earnings.
- Based on my technical analysis I see MSFT as the best reward/risk tradeoff currently, but that's not the big story here.
- The story is about the diverging performance among these stocks, which might create a great opportunity to run a long-short-style portfolio around them, as introduced in this article.
It has been some month of April for members of the famous "Magnificent 7." With so much attention focused on these stocks, especially during earnings season, where every quarterly release is an "event" worthy of pre-gaming, the outsized reactions to those announcements leave many on Wall Street exhausted from all the drama.
This earnings season has been as wild as any, with moves of 10% or more in these stocks routinely following their earnings releases after market close. And those moves seem to have confused many on Wall Street, with strong fundamental reports met with selling pressure, or the opposite. And we're not done with Mag 7 earnings season yet. Apple ( AAPL ) is up this week on May 2, and Nvidia ( NVDA ) doesn't post their results until May 22....
MAGS: Charting Magnificent 7 Shows New Trend (Technical Analysis)