Here is your trade on $MAGS…and $TSLA – September 27, 2024
Dan Fitzpatrick here at StockMarketMentor.com. We’re going to look at something that I haven’t ever covered before and that’s the Roundhill Magnificent Seven ETF ( NASDAQ: MAGS ), this is the one that covers all the mega caps.
First of all, just as a general thought, this is really struggling here. The reason is that the individual names are struggling. Unless you are brand new to charting, you should really understand that this is going to have a really tough time doing that from here.
What’s happened is, you see this stock has had this kind of run-up, and that’s awesome. Then it pulled back, and then it’s had this kind of run-up, again. I’m not really looking at this line as a big measured move. However, even if we are looking at this this way, we connect the bottom here, and the top here. Now, this is actually the high here at $50.00.
This is $50.00 and so we’ve got this move here. I’ll take the same distance and apply it starting here, and we have $50.00, yet again. And so, even if this stock runs up to test this prior resistance level, what’s it going to move? It’s going to move another 5-6 percent, but that’s after it’s already had most of this move.
What I’m saying is, I’m trying to lay this out for you, that this is going to have a really tough time moving higher from here. And this is why, we’ll just run through them. Apple ( NASDAQ: AAPL ) is stalling here. Will any of these go higher or lower? I don’t know, I’m just talking about what is right now, and applying a little bit of experience to it. But I think this still has some work to do.
Amazon ( NASDAQ: AMZN ) is still really, really choppy. It’s really choppy, and this doesn’t look like it’s running higher, does it? How about Netflix ( NASDAQ: NFLX )? I don’t even think that’s in there, but I’m putting it in. Netflix ( NASDAQ: NFLX ) is still working okay, but of all these stocks that I’m looking at, this actually looks like the best.
NVIDIA ( NASDAQ: NVDA ), no. This is having a hard time getting higher. How about Google ( NASDAQ: GOOGL )? No, it’s still in the doldrums, which is right where it should be. If I had my druthers, I’d rather it be $164.36 cheaper than it is right now, these guys are evil. The bottom line is, we can make money off of it if it starts to run higher. It’s struggling with the 50-day moving average, and that’s not where we want to be.
Meta ( NASDAQ: META ), I’ve got a position in this stock. And the way that it’s been trading here, this looks really good. Maybe because I have a position, I’m talking my book, I don’t know, maybe so. But as I look at this, I still see, and I’ve said this to our members for a long time, that I still see a $600.00 handle on this.
I will be looking to liquidate my positions, or at least most of them at $600.00. If it doesn’t hit there, well, maybe I’ll do something else, but that’s really what I’m looking for. And then Tesla ( NASDAQ: TSLA ), it’s right up at 260.00. This chart is still an absolute mess if you look at it this way. But if we are really zooming in here, and looking at it in a really tight time frame, you can see what’s going on.
I don’t think this is a buy here, not at all. If you’re long the stock, we’ll put in an exponential moving average here. The 8-day always seems to work the best. I would use the 8-day moving average as a reference for the short-term trend. This can still go for a while, you could even use a 5-day moving average.
If you get it too tight, you’re ultimately going to get stopped out, so you might as well sell the stock. You’ve got to give it some allowance for the typical daily volatility. The bottom line here on this is that Tesla ( NASDAQ: TSLA ), I think is going to have a tough time getting higher from here, much higher.
That ultimately leads me back to here. If you just look at the way all of these holdings are trading, they’re not really giving you much of a feel-good. And so, if I’m long this I would really be looking to take profits. It’s just not the kind of thing that I’m going to want to stay long on.
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