‘The Seven’ is still magnificent? | decision point

Since I’ve been hearing feedback from some of the Magnificent Seven that they no longer have membership, I thought it might be helpful to take a quick look. We will use weekly charts for this analysis.

Apple (AAPL): AAPL is trying to move production out of China and halted its EV program this week. The latter will probably have more impact on the EV industry than AAPL, but we’ll get to that when we get to Tesla.

Technically, there is a bearish rising wedge and a PMO negative divergence.

prognosis: AAPL probably won’t be that great for at least a few more years.

Amazon (AMZN): AMZN has suffered greatly due to COVID-19, but has rallied tremendously over the past year. The most obvious problem is that it will meet strong resistance at its all-time highs in 2021, and at its current rate of increase, it will do so in just a few weeks.

prognosis: Because it’s still great, but it’s met with long-term resistance.

Alphabet (GOOGL): GOOGL encountered resistance at the top of 2021 and formed a long-term double top. The rising trend line from the 2022 low still remains intact, but there is a negative PMO divergence. If this trend breaks down, so will its grandeur.

prognosis: This is not a good time. Magnificence is threatened.

Meta Platform (META): META set a long-term double top, but broke through and is now +28% above that resistance. The problem now is that progress after consolidation in mid-2023 is parabolic and vertical upward movement calls for a correction. There is currently a negative PMO divergence, but the PMO has not peaked yet and the divergence may clear.

prognosis: Still great. Pay attention to possible modifications.

Microsoft (MSFT): MSFT attempted to form a double top in mid-2023, but broke through and rose +22% above that resistance. It has formed a long-term bearish rising wedge and although there is a PMO negative divergence, the price action is bullish.

prognosis: That’s great, but there are some downsides.

NVIDIA (NVDA): NVDA found resistance at 500 last year and consolidated for about 6 months. It broke out in January, rising more than +60% above the resistance level of 500. The biggest problem now is a parabolic rise from the 2022 lows. As I said earlier, the parabolic upward movement requires correction.

prognosis: The most magnificent of the seven. Modifications are possible, but grandeur must prevail.

Tesla (TSLA): Apple’s recent exit from the EV business is the most dramatic evidence of public disillusionment with the EV industry and electric vehicles to date. TSLA is currently down -50% from its 2021 all-time highs, and I don’t think it will recover.

prognosis: It’s no longer great and will probably never recover.

conclusion: AAPL and GOOGL are fading away, solid businesses but may lack their greatness for a few years. TSLA is complete. The rest is still great, but I have some reservations about the medium term. So what about the Magnificent Five?

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