Stock Trends

The Mixed 7, crypto mania and more big bases

Good morning,

Rotation is in the air and you can see it everywhere. The “Magnificent 7” continue to become less magnificent as a group, while the crowd is waking up to industrials leadership.

This week, we’ll look at some diverging and key charts within the “Mixed 7” as well as:

• Crypto mania

• Industrials breakouts from the 2024 Base Finder

• 52-week highs from the Blue Chip Hot List

• Other bases that have caught my eye

• and more!

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The Mixed 7

META holding gains well

Meta Platforms has held firmly onto its earnings gap higher and has now spent a full month holding above support. This tight range and bullish trend suggest another leg higher should be investors’ base case.

200-DMA incoming for Alphabet

I felt the GOOGL breakdown was significant enough to add to Tuesday’s Overtime report and the stock moved sharply lower again on Wednesday. The stock has support at the 200-DMA and $124 range, but longs should be more concerned with how long it might take to recapture the $140 zone.

All eyes on Apple

I’ve been trying to call attention to this level and the relative weakness of Apple since the very beginning of the year, but it feels like everybody sees it now. Maybe that increases the possibility of a false breakdown but if AAPL breaks below $179.25 and stays there, it will be huge headwind to the S&P 500 and cap-weighted ETFs like XLK and QQQ.

Should we put Netflix in?

After a brief pause, Netflix has broken through resistance and hit 52-week absolute and relative highs on Tuesday. Nothing separates NFLX from all-time highs at $700 and the stock arguably acts better than 5 of the actual Magnificent 7.

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Crypto mania

Bitcoin has exploded through $60k for the first time since November 2021 this week, at least in part fueled by spot ETF flows. Here are a few individual equities benefitting from the mania.

Microstrategy rocketing higher

On November 9, I featured 5 small caps stocks bucking the weak trend in the Russell 2000. All 5 are up more than 16% and the average return is 49.7%. Abercrombie & Fitch (+88.7%) has been the consistent winner, but MSTR has exploded the past few days overtaking ANF’s return. Technically, MSTR is now through the only resistance level separating it from its 2021 all-time high.