Keith McCullough and Daryl Jones discussed the mercurial nature of buying bubbles of the “Magnificent 7” mega-cap Tech stocks in this clip from The Macro Show today.
“Everything was a chase in December—‘The Fed will cut 25 times! Bond yields go down every day! Buy all seven of the Magnificent 7!’” McCullough recalls. “That’s when Tesla, on a chart, acted well according to a moving monkey. Now, what did that do for you?”
Since climbing to $261 on December 27, shares of Tesla (TSLA)—our Industrials analyst Jay Van Sciver’s number one “Best Idea” Short—are down 28%.
“That’s the problem,” adds McCullough. “Whereas the opposite of that, Nvidia (NVDA), has gone completely vertical.”
Nvidia, one of five Magnificent 7 companies McCullough’s signals are bullish on, is up 34% percent over the past month.
“Look at the top end of the Risk Range today in Nvidia. Like, really? Yeah, really. That’s what it is. Deal with it. That’s what bubbles do. If you don’t think AI as an expectation is a bubble, we can argue about it, but it wouldn’t be a bubble if it wasn’t going up.”
Subscribe to Momentum Stock Tracker to receive daily signal updates on all of the Magnificent 7 stocks.
WATCH NEXT:
Growth + Inflation Slowing: 'China A Perfect Example of Quad 4"
McCullough: Don't Be Fooled By U.S. Government's Economic Numbers
Win-Win: Our Analysts' Long AMZN + Short AAPL Calls Confirmed
HELPFUL LINKS:
WATCH | Get 10 Stock Picks on The Call @ Hedgeye
Join New Subscriber Orientation
New Conference: Hedgeye Live 2024 May 2-5
