Mish’s Daily: Worried About the Death Cross in MAGS (MAG7)?
Mish’s Daily: Worried About the Death Cross in MAGS (MAG7)?
Written by Michele ‘Mish’ Schneider
Many analysts are still out there touting the great opportunity in the MAG7 stocks.
For context, here are the top Holdings as of 04/14/2025
| Weight | |
| MICROSOFT CORP | 15.32% |
| ALPHABET INC-CL A | 14.73% |
| APPLE INC | 14.25% |
| NVIDIA CORP | 14.17% |
| TESLA INC | 14.08% |
| AMAZON.COM INC | 13.92% |
| META PLATFORMS INC-CLASS A | 13.34% |
While there is some green as of today, the overall ETF is down close to 1% as of Tuesday’s close.
Nvidia 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
- 1. The 50-DMA (blue) crossed below the 200-DMA (green). That is a death cross. MAGS enters the bear phase
- 2. 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.
- 3. MAGS underperforms the benchmark (growth versus value risk off)
- 4. 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.
Educational purposes only, not official trading advice.
For more detailed trading information about our blended models, tools, and trader education courses, contact Rob Quinn, our Chief Strategy Consultant, to learn more.
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Podcast with Geoff Bysshe Mish and Geoff illustrate the difference between a market bottom and tradeable bounce 04-15-25
Business First AM All About Uranium 04-14-25
BFM Radio Malaysia Tariff uncertainty looms large while market tries to find footing 04-11-25
BNN Bloomberg A 2-part take on conditions and picks. This is part 2 04-11-25
BNN Bloomberg A 2-part take on conditions and picks. This is part 1 04-11-25
Coming Up:
April 23 The Street.com
April 25 Yahoo Finance
April 28 Maggie Lake
Weekly: Business First AM
ETF Summary
(Pivotal means short-term bullish above that level and bearish below)
S&P 500 (SPY) Watch 520-540 range
Russell 2000 (IWM) 180 pivotal-193 resistance
Dow (DIA) 400 pivotal
Nasdaq (QQQ) 440 support 468 resistance
Regional banks (KRE) 50 to clear
Semiconductors (SMH) 205 is a place to clear
Transportation (IYT) Must get back over 63-64
Biotechnology (IBB) 115 support 120 resistance
Retail (XRT) 64 key to hold. 69 resistance
20250416
