{"id":2595,"date":"2024-03-30T12:04:17","date_gmt":"2024-03-30T12:04:17","guid":{"rendered":"https:\/\/businesstriumphs.com\/index.php\/2024\/03\/30\/which-magnificent-7-stock-would-you-pick-for-q2\/"},"modified":"2024-03-30T12:04:17","modified_gmt":"2024-03-30T12:04:17","slug":"which-magnificent-7-stock-would-you-pick-for-q2","status":"publish","type":"post","link":"https:\/\/businesstriumphs.com\/index.php\/2024\/03\/30\/which-magnificent-7-stock-would-you-pick-for-q2\/","title":{"rendered":"Which Magnificent 7 Stock Would You Pick for Q2?"},"content":{"rendered":"
\n

This article represents an exercise I like to call the \u201cSingle Stock Portfolio\u201d. In this scenario, you can only own one stock in your portfolio for the next three months, and you can pick any one of the following eight stocks.\u00a0Which one would you select, and why?<\/p>\n

The beauty of this exercise is that it forces you to consider eight different charts, some with similar characteristics, yet some showing dramatic differences.\u00a0In the end, you have to decide whether to stick with a top-performing name like NVDA, fresh off new all-time highs in March but showing the dreaded bearish momentum divergence<\/a>, or you could opt for AAPL, testing price and Fibonacci support after <\/span>failing to make new all-time highs<\/a>.<\/span><\/p>\n

Let\u2019s review each of these charts in turn and lay out a good technical framework for our decision.<\/p>\n

Nvidia Corp. (NVDA)<\/h2>\n

Nvidia is the top-ranked of the group using the StockCharts Technical Rating (SCTR), with its trend scoring in the top 2% of all large cap stocks.\u00a0NVDA also features a bearish momentum divergence, with higher closing prices in March but lower highs in momentum based on the RSI indicator.\u00a0This stock currently sits around 69% above its 200-day moving average, suggesting it could be quite overextended here.<\/p>\n

Meta Platforms, Inc. (META)<\/h2>\n

META is featuring weakening momentum characteristics as well, with RSI dipping below 50 this week for the first time since December 2023.\u00a0Both of these stocks still remain above two upward-sloping moving averages, suggesting the long-term uptrend is very much intact.<\/p>\n<\/p>\n

Netflix, Inc. (NFLX)<\/h2>\n

Our third chart again demonstrates a classic bearish momentum divergence, with highs in January, February, and March all marked by lower peaks in the RSI.\u00a0This suggests less and less upward momentum behind these successive new highs.\u00a0The relative strength, however, remains quite strong, as NFLX has consistently outperformed the S&P 500.<\/p>\n<\/p>\n

Amazon.com, Inc. (AMZN)<\/h2>\n

Here, we have the first chart that actually made a new 52-week high to finish this shortened holiday week.\u00a0AMZN has perhaps the most consistent uptrend, with a stepwise motion of higher highs and higher lows since the October 2023 low.\u00a0The RSI remains strong but not excessive, indicating that further upside potential is very much a possibility.<\/p>\n<\/p>\n

Microsoft Corp. (MSFT)<\/h2>\n

We\u2019re now at five straight charts with a bearish momentum divergence.\u00a0Can you see why I\u2019ve been skeptical of further upside for the Nasdaq 100<\/a>, given these persistent signs of weakening momentum?\u00a0Despite the downward-sloping RSI, MSFT remains firmly trending up above an upward-sloping 50-day moving average, which served as short-term support in January and March.<\/span><\/p>\n<\/p>\n

Alphabet Inc. (GOOGL)<\/h2>\n

Here is where we start to see some differentiation between these leading growth names.\u00a0Alphabet gapped higher in mid-March, and has seen additional upside since that price gap.\u00a0Now we are observing a retest of all-time highs around $154.\u00a0Will this second attempt to breakout above the $155 actually succeed?\u00a0GOOGL has broken its 50-day moving average in 2024, and actually tested the 200-day in early March before bouncing higher.<\/p>\n<\/p>\n

Apple, Inc. (AAPL)<\/h2>\n

With AAPL, we\u2019re now getting to the weakest of the group in terms of their 2024 performance.\u00a0Apple scores a 9.1 in the large cap SCTR rankings, meaning it\u2019s in the bottom 10% of US large cap stocks as ranked by their trends.\u00a0This chart is currently testing price and Fibonacci support, and a break below this key support could open the door to further downside for AAPL<\/a>.<\/span><\/p>\n<\/p>\n

Tesla Inc. (TSLA)<\/h2>\n

If you\u2019re looking for classic example of a stock in a confirmed downtrend, look no further than TSLA.\u00a0Here we can observe lower highs and lower lows, price below two downward-sloping moving averages, and RSI consistently below the 50 level.\u00a0TSLA even broke below Fibonacci support earlier in March. A vote for Tesla would be an optimistic leap of faith on a name that certainly has not impressed in Q1.<\/p>\n<\/p>\n

There are your eight stocks, with a brief technical analysis summary of each chart.\u00a0Which stock do you see as the best opportunity in Q2, and why?\u00a0Watch the video below, then drop a comment with your vote and your reasoning!<\/p>\n

<\/div>\n

RR#6,<\/p>\n

Dave<\/p>\n

P.S.<\/strong> Ready to upgrade your investment process?\u00a0Check out my free behavioral investing course<\/a>!<\/span><\/p>\n

David Keller, CMT<\/strong><\/p>\n

Chief Market Strategist<\/p>\n

StockCharts.com<\/p>\n

Disclaimer: <\/em><\/strong>This blog is for educational purposes only and should not be construed as financial advice.\u00a0The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.<\/em><\/p>\n

The author does not have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not in any way represent the views or opinions of any other person or entity.<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

This article represents an exercise I like to call the \u201cSingle Stock Portfolio\u201d. In this scenario, you can only own one stock in your portfolio for the next three months, and you can pick any one of the following eight stocks.\u00a0Which one would you select, and why? The beauty of this exercise is that it […]<\/p>\n","protected":false},"author":0,"featured_media":2596,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-2595","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/2595","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=2595"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/2595\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/2596"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=2595"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=2595"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=2595"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}