Many analysts are still out there touting the great opportunity in the MAG 7 (Magnificent 7) stocks. Today we examine this using the Magnificent 7 ETF (BATS: MAGS).
For context, here are the top Holdings as of 04/14/2025
While there is some green as of today, the overall ETF is down close to 1% as of Tuesday’s close.
Nvidia (NASDAQ: NVDA) closed green with news of the company investing $500 billion in the USA. It will take 4 years to build out the AI infrastructure.
What can we expect from the MAGS right now?
A few interesting features on the daily chart
- The 50-DMA (blue) crossed below the 200-DMA (green). That is a death cross. MAGS enters the bear phase
- MAGS did not have a clean reversal bottom. On April 7th a new multi month low was established. The next day though, did not close above April 7th high nor was it an inside day.
- MAGS underperforms the benchmark (growth versus value risk off)
- The momentum has been bearish since late December 2024. Until the red dots clear the zero line and the 50-DMA (blue) then we still see issues on Real Motion.
Could MAGS rally to $49 or where the 2 overhead moving averages are?
Yes.
It would take closes over $50 to get excited about the prospects.
For now, the MAGS held last August low, which is positive.
We are watching for the ETF to at least clear $46, then $50.
Or should the $43 level fail, prepare for a lower move, perhaps to $36.00 area.
Twitter: @marketminute
The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not represent the views or opinions of any other person or entity.
