Trading Trends: The “Fabulous Four” vs the “Magnificent Seven”

For the past 14 months, the “Magnificent Seven” have been the show’s stars.

These seven heavyweight stocks — think Apple (AAPL), Tesla (TSLA), Alphabet (GOOGL), Microsoft (MSFT), Nvidia (NVDA), Amazon (AMZN), and Meta Platforms (META) — have shouldered the market rally.

Their ascent has been nothing short of spectacular.

But lately, three of these megastars are showing signs of fatigue.

Let’s take a closer look:

1. Apple (AAPL): Once soaring, it hovers where it was in early May last year. The peak in December seems like a distant memory.
2. Tesla (TSLA): After hitting its zenith in July 2023, Tesla’s trajectory has been decidedly downward. The road ahead looks bumpy.
3. Alphabet (GOOGL): Despite a January peak, Alphabet’s recent trading mirrors its position from August/September last year. The magic seems to have faded.

Now, let’s meet the “Fabulous Four” — the resilient ones:

1. Nvidia (NVDA): Scaling all-time highs, Nvidia is riding a rocket. Its graphics chips power more than just gaming consoles.
2. Amazon (AMZN): The e-commerce behemoth keeps defying gravity. From books to cloud services, Amazon’s empire knows no bounds.
3. Meta Platforms (META): The social media giant, formerly Facebook, is reinventing itself. Despite scrutiny, it’s still a force to be reckoned with.
4. Microsoft (MSFT): Riding a strong uptrend, Microsoft’s software empire remains unshaken. Cloud computing and productivity tools drive its success.

So, farewell, Magnificent Seven. Say hello to the Fabulous Four — the ones charting a different course in this high-stakes trading saga.