Something happened today that makes me think the market is getting tired.
Yesterday, in anticipation of this past quarter's earnings report from Nvidia Corp (NVDA), markets at the close were looking very robust. The report comes out after the close, and the news is once again very good, with extremely positive forward guidance. Futures surge and NVDA goes up 9% or so in aftermarket trading.
Then today, we see a huge reversion as the bloom comes off the rose. NVDA gives up most of its gains by midday and is trading up at just 1.69%. The Nasdaq Composite, despite it being tech-heavy, is down over a percentage point.
That tells me it's time to be really careful out there, because if investors get spooked and start to take profits, markets might still be in for a bit more short-term pain.
The response to NVDA, despite its shining earnings report, especially has implications for the so-called "Magnificent Seven" - the stocks that have been driving the bullish trend we've seen for most of this year. Just in case you haven't heard the term, they are: Meta Platforms, Inc (META), Nvidia Corp (NVDA), Amazon.com Inc (AMZN), Apple Inc (AAPL), Alphabet Inc (GOOGL), Microsoft Corp (MSFT), and Tesla Inc (TSLA).
With all of these stocks potentially in correction territory, I wanted to take some time today to look at what's going on with each of them and give you an update on the smartest way to play them right now.
Frankly, all of them are great long-term holds (except one, that is), but they're not necessarily worth chasing now when there's a good chance they could fall back to much more attractive levels for buying if markets continue to dip. So I've laid out all the levels you should watch for when you're looking to buy in, and what to do if you have them already.
It's all in today's video:
Bottom line is, you want to have a position in these stocks, especially the ones most closely associated with AI, like Nvidia, Microsoft, and Alphabet/Google.
But even on a dip, all of them are fairly expensive because they've rallied to incredible highs this year. I know a lot of people are feeling like they've missed out on the chance to make the biggest gains from these tech giants.
But there is a way for ordinary folks to take a long-term stake in AI companies at a fraction of the cost of buying shares directly - we're talking about as much as an 89% discount - and with up to 10x the profit potential, even on these high-growth stocks.
You can catch a presentation detailing everything you need to know at this link.
The post What You Should Do About the "Magnificent Seven" Right Now appeared first on Total Wealth.
About the Author
Shah Gilani boasts a financial pedigree unlike any other. He ran his first hedge fund in 1982 from his seat on the floor of the Chicago Board of Options Exchange. When options on the Standard & Poor's 100 began trading on March 11, 1983, Shah worked in "the pit" as a market maker.
The work he did laid the foundation for what would later become the VIX - to this day one of the most widely used indicators worldwide. After leaving Chicago to run the futures and options division of the British banking giant Lloyd's TSB, Shah moved up to Roosevelt & Cross Inc., an old-line New York boutique firm. There he originated and ran a packaged fixed-income trading desk, and established that company's "listed" and OTC trading desks.
Shah founded a second hedge fund in 1999, which he ran until 2003.
Shah's vast network of contacts includes the biggest players on Wall Street and in international finance. These contacts give him the real story - when others only get what the investment banks want them to see.
Today, as editor of Hyperdrive Portfolio, Shah presents his legion of subscribers with massive profit opportunities that result from paradigm shifts in the way we work, play, and live.
Shah is a frequent guest on CNBC, Forbes, and MarketWatch, and you can catch him every week on Fox Business's Varney & Co.