Mag 7: What the technicals are saying about Big Tech stocks

00:00 Speaker A

It's clip present for today's strategy session. Earnings play successful afloat plaything with 4 magnificent 7 members reporting this week. All but 1 of the Mag 7 stocks person fallen beneath their 200 time moving average. So what bash the method indicators spell retired for what comes next? Joining america now, Larry Tentarelli. He's the main method strategist for the bluish spot regular inclination report. Larry, I deliberation if we're talking astir the Mag 7 this morning, I person to commencement with you connected Amazon due to the fact that this is simply a banal that is present dragging down the full retail assemblage with it this morning. To what grade bash you deliberation that Amazon is capable to propulsion retired thing successful this net people this week that's going to let them to beryllium a affirmative bellwether for the Mag 7, contempt the existent marketplace enactment that is precise overmuch related to Amazon arsenic a retailer not arsenic a tech company?

01:02 Larry Tentarelli

Sure. That's a large question. I don't cognize that I've got a ace wide reply for you. I deliberation that the cardinal happening is truly going to beryllium based connected guardant guidance. We truly don't cognize what that's going to be. Amazon, due to the fact that they're tied to the consumer, we're we're successful uncharted territory due to the fact that determination is nary blueprint for this tariff rhythm close now. But I deliberation it's going to beryllium a precise important archer for the sector.

01:42 Speaker A

As you benignant of look crossed immoderate of the method tells that are playing retired wrong the tech assemblage astatine this juncture, of people 2 of those larger Mag 7 names successful Nvidia and Apple were 2 of the archetypal large companies, mega headdress tech companies, to truly initiate immoderate of the pullback this year. Where are the technicals telling america now?

02:10 Larry Tentarelli

So the Mag 7 inactive is not my favourite spot to be. I spot overmuch stronger charts, Palantir, CrowdStrike, Netflix. The Mag 7, I deliberation it got to beryllium overowned. I deliberation that a batch of overseas investors had parked wealth successful the Mag 7 and arsenic the US dollar has sold off, I deliberation they've besides sold the Mag 7 stocks. So the triple Q is inactive underneath the 200 time moving average. The S&P is. So I'm still, I don't similar the Mag 7 that overmuch yet, but I americium open-minded that if the net travel done and the stocks crook up, past that could beryllium much positive.

03:07 Speaker A

And bash you deliberation that determination is imaginable for the opposite, for determination to beryllium overmuch much downside for the Mag 7, fixed that you're already a small spot skeptical?

03:22 Larry Tentarelli

I don't cognize if I'd accidental overmuch much downside. So what we saw successful the S&P 500 2 weeks ago, highest play measurement successful 14 years, and it was a large upside reversal week. So historically, that's however galore carnivore markets person bottomed. So I don't cognize that I'd accidental that there's large downside per se successful the Mag 7, but I deliberation we request to enactment open-minded that if they if they're brushed connected guidance, you could spot immoderate downside.

04:03 Speaker A

Is this inactive the twelvemonth for merchantability successful May and spell away? Is that astatine play astatine each from what you're benignant of seeing, particularly fixed wherever investors person either been guided successful the aboriginal benignant of marketplace correction to to bargain connected the dip versus what they're being guided towards now, which is merchantability the rally?

04:31 Larry Tentarelli

Right. I deliberation we're successful a antithetic marketplace this year. So I can't accidental that merchantability successful May, I deliberation historically if we spell backmost implicit the past 10 years, merchantability successful May hasn't really worked excessively well. I deliberation this is simply a precise precocious volatility quality driven cycle. I bash deliberation past week we had a precise bullish week and volatility is starting to travel retired of the market. But I deliberation it's truly precise illustration specific. I bash deliberation that the S&P and Nasdaq 100 are successful a betterment phase. So I'm looking to bargain the pullbacks arsenic opposed to merchantability the rallies.

05:15 Speaker A

Interesting. Larry, large to spot you. Thanks for joining america successful workplace this morning.

05:21 Larry Tentarelli

Thank you truthful much.

05:23 Speaker A

Absolutely.