The Magnificent Seven Stocks 10262023

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Hello, everyone, and welcome to Thursday morning.

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It's Stephen Whiteside here from theuptrend.com.

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In the premarket this morning, stock index

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futures are down across the board and around the world.

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That could possibly change at 8:30 this morning.

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There's a whole bunch of economic numbers

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coming out, but I find that unlikely this morning.

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But we'll just have to wait and see how the market reacts.

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A one stock that is not part of the

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Magnificent Seven that is out in the premarket is UPS.

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UPS was coming into today's trading action, making a new low yesterday.

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It's down another three and a half % in the premarket.

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And of course, UPS is part of the transports and the Dow Transports were

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down sharply yesterday, also making a new low.

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Now, 2023 has been the year of AI.

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Typically, when a CEO has mentioned AI in

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their call, it's usually helped their stock.

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It may have helped Microsoft, certainly didn't help Alphabet.

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But yeah, there's something I saw off a CMBC yesterday that

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between the two of them, they mentioned AI 145 times during their calls.

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Now, the Magnificent Seven stocks are in

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the Nasdaq 100, and that's been able to hold the Nasdaq up fairly well in 2023.

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It's currently still up over 30 % for the year.

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Now, the Magnificent Seven have not been the best performing stocks of 2023, but

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because of their size and performance, they've been able to hold the Nasdaq up.

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Compare that to the Russell 2000, which is currently down over six %, and the TSX,

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even with the added performance of the energy sector, the TSX is down 2.25 % year

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to date coming into Thursday's trading action.

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Now, we're going to walk through these charts fairly quickly.

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Two of the seven are still performing fairly well.

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The rest of them are heading lower.

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Here's the Nasdaq-100, you can see the last early warning signal.

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We had an early warning signal here.

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We drove down, pressure's on form.

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That is the time and place you look for a buy signal.

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We drove up.

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Unfortunately, early warning signal came back down.

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Now, what we were looking to see was, does

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the Nasdaq-100 make a new lower-low for this move?

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Not for 2023, but just for this move.

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If it starts to break down below the

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Flypaper channel, that would be very bearish.

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Here we are making a lower-low yesterday, starting to break down, but we haven't

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broken away from the Flypaper channel just yet.

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Our next mathematical target for the triple Qs are 343.75 is our next target.

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That comes in line with the 200-day moving average.

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The financial world will be watching that very closely.

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Now, you can see the last time we had a bearish reversal signal.

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We ask you to watch these signals closely.

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They don't always work.

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But if you're going to line that up with an early warning signal on the Panic Zone

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chart, it's probably the time and place to at least stop buying.

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A bearish reversal signal does not generate a sell signal

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or bearish engulfment signal does not generate a sell signal, but it should be

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enough to just stop you from buying and looking for selling opportunities.

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You're coming into Thursday's trading action.

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You're either short the queues or long the

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bear ETFs, so you should be making lots of money on Thursday.

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Now, the Magnificent Seven contains these stocks.

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We'll walk through them as quickly as possible, starting off with Alphabet.

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There's the early warning signal at the top of the screen.

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It actually struggled to move up on

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Wednesday, excuse me, and traded right up to the upper channel line.

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Then yesterday, just gapped down sharply.

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We were looking to see if the recent low would act as support.

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Guess what? We cut right through that and we're

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starting to move down below the bottom of the Flypaper channel.

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Of course, we're looking to see if the 200 day moving average is going to hold us.

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There's a nice open gap over there to the

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left and you can see that that open gap, the bottom of it is at the 123.69 level.

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That could be a potential target and area of support.

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If that doesn't hold, of course, 118.75 is going to be our next target.

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Next up, we're looking at Amazon.

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Amazon struggled.

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We had the early warning signal.

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We had the decline.

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Pressure Zone started to form.

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We started to move up that the open gap was a potential area of resistance.

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Guess what? That's what it ended up being.

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And so now we're coming down.

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And did the recent low hold?

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Nope, we broke that yesterday.

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Amazon struggled to move up above the FlyPaper channel.

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We call the FlyPaper channel because we expect stocks to get stuck there.

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And here we are coming down, making a new

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low on Wednesday, hitting the 200 day moving average.

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If you look down to the left there, you'll see a nice open gap way down there.

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I don't know if we're going to get that

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far, but you only worry about gaps if they're in front of you.

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So if the stock is going down, if there's a gap above you, doesn't matter.

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If the stock is going up and there's a gap below you, doesn't matter.

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It only matters when it's ahead of you.

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Here we are, mathematically speaking, our next target is 118.75 and then 112.50.

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I'm not going to talk about any potential buy signals today.

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It's just not the day to do that.

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Then Apple, well, Apple had an early

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warning signal there at the top of the screen.

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We're coming down.

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There has not been aggressive selling.

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Earnings come out next week, maybe

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investors are waiting to for those earnings to come out.

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The next big tell, of course, is going to be if we can hold the recent low from

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September at the other end, what are you looking at here?

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You're looking at a high, lower, high, lower, high, and...

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And now the recent rally

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struggled and could not get out of the Flypaper channel.

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So that is a bearish sign.

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We are sitting on the 200 day moving average.

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You can see there's an open gap below us,

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not too far below us, but at 167.04, that could be a potential target.

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And if we break down below that open gap, then 162.50 would be our next target.

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And again, no reason to talk about potential buy signals on Thursday.

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Looking at Meta, Meta coming off the top of the Panic Zones there, you see the

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early warning signal, but the stock is still holding up incredibly well.

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The FlyPaper channel has done what it's supposed to do, which in a bullish

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situation, people are going to be willing to buy the dips.

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That has been happening over the past couple of months, August, September.

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Now we're into October.

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Does that continue or do we break down from here?

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Now looking at moving averages, we're just sitting at the 50 day.

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The 100 and the 200 day are below us and

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the 200 day is way down there just above 250.

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Now looking at our price targets, you can

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see that we're far away from that 200 day moving average.

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It's going to take a lot of selling to get down from here.

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You can see that in August, we traded below the 281.25 level.

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That could certainly be a reasonable

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target if the market wants to continue to stay bullish on Meta.

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The pros are just about to give up control on the stock.

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We'll just have to wait and see if that continues.

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What we're seeing in the premarket this

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morning is Meta trading down $9.10 in the premarket down towards the 290 level.

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Now looking at Microsoft, Microsoft is still on a buy signal right now.

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We came into yesterday's trading action on a buy signal.

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We've been there for a few weeks.

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If you were looking at price targets, if

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you were long Microsoft going into yesterday's trading action, you had an

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order up there at the 343.75 area andtoching.

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It got filled yesterday, so congratulations.

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That might be as high as Microsoft can go for this particular move.

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We saw it pull back in today, and wouldn't

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be surprised if it continued to pull back on Thursday.

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Last up, Tesla. Tesla.

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You'll look across the top of the screen, you'll see a series of lower highs.

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Then we were looking to see if the recent low in September was going to hold.

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That didn't.

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We were also looking at this nice triangle.

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It was looking, it could go either way, but it went to the downside.

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The August low did not hold.

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That's bearish.

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We're looking for lower prices from here.

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Looking at our price target chart, if

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you're shorting Tesla, you want to take some money off the table at 187.50, and

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then have another order in at 156.25. As I always say, when you're

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shorting or long a stock, you want to take profits at the price targets.

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At the same time, you don't want to completely liquidate a position.

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Tesla is already on a sell signal, of course.

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Now, I would normally tell you that we'd get a buy signal if we had a close on

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Thursday above 2:39.38. That's highly unlikely to happen today.

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There's a nice open gap on the way up.

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And, of course, years, we're already heading in the wrong direction.

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And, of course, that upper channel line is going to continue to move lower daily.

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Okay, folks, that is all for this morning's presentation.

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Looking for some selling at the open on Thursday morning.

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Unless those economic numbers coming out

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at 8:30 this morning totally shock the market.

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That's probably not going to be the case, but it could happen.

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There is always a mathematical probability

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that the strangest things could happen, highly unlikely.

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But yeah, it's possible.

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Have a great day, folks.

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Next time you'll hear my voice is on Friday morning.

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And on Friday morning, I have a blood donors appointment.

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I hope you have a blood donors appointment booked in the not so distant future.

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