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.
— Shah Gilani
Source: Total Wealth