Note: What Jeff Brown will reveal on Wednesday, June 11, at 2 p.m. ET – alongside forecaster Porter Stansberry – may be the most consequential story he’s ever shared.
Behind the tariffs, the tech deals, the energy upheaval… a covert mobilization is funneling trillions of dollars into a tiny set of companies.
This is not a normal cycle. It’s not about inflation, the Fed, or a coming recession. This is something much bigger… a full-scale emergency that could rip through American life like a force of nature.
And yet, it may also be the greatest investment opportunity Jeff’s ever been able to share.
If you’d like to join him and Porter as they reveal what’s going on, simply RSVP right here.
The ”Magnificent 7” stocks are caught in the crosshairs of the trade war.
Many companies in the group are global leaders of their respective industries. The Mag 7 is made up of Apple (AAPL), Amazon (AMZN), Alphabet (GOOGL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA).
Nvidia produces advanced semiconductors that are crucial for artificial intelligence applications. Apple leads the market for smartphones and other consumer electronics. Amazon is the world’s largest online retailer… and the list goes on.
That makes Mag 7 companies attractive targets for leverage in the trade war… like how President Trump banned sales of Nvidia products to China or threatened extra tariffs on iPhones.
Given their sensitivity to developments around the trade war, the Mag 7 stocks can reveal patterns in their prices… often before they appear in the major indexes.
That means Mag 7 stock prices and chart setups can tip key turning points if you know what to look for. And right now, they’re sending investors a warning…
Advanced Warning
Stock prices across the Mag 7 are an early warning indicator. After all, the Mag 7 still makes up 32% of the S&P 500.
So if you can anticipate key turning points, you’ll give yourself an edge in forecasting the market’s short-term movements.
The Roundhill Magnificent Seven ETF (MAGS) tracks the group. Take a look at the MAGS chart below:
MAGS delivered an early warning that the rally in early 2025 was on borrowed time. You can see that MAGS peaked at “1” back in December.
The S&P 500 made an all-time high on February 19. But MAGS failed to confirm a new high at “2.”
From there, MAGS dove by 29%, and the S&P 500 fell into a bear market on an intraday basis.
But then, the Mag 7 delivered another sign that a reversal was in store.
Let’s look closer at how MAGS tipped the rally off the April lows… and dig into why the Mag 7 is now hinting that the upside is running out of gas…
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Watch for Diverging Patterns
Back when the stock market was plunging to new lows following Trump’s Liberation Day tariff announcement, the Mag 7 chart tipped that a reversal higher could be in store.
Take another look at the MAGS chart:
MAGS made an initial low on April 8 at “1” and then went on to retest that low at “2.”
But look at what happened with the Relative Strength Index (RSI). The RSI measures underlying price momentum. It made a higher low (the dashed line).
That’s a positive momentum divergence. From there, MAGS recovered the 50-day moving average (blue line) and pushed toward the prior highs.
That brings us to present day.
MAGS is starting to diverge from the S&P 500 once again. But it’s not such a sunny picture this time.
Take one more look at the chart:
The rally in the S&P 500 off the April lows made a higher high late last week. But the MAGS ETF is not confirming the move. You can see that with the shaded area in the price panel.
At the same time, the RSI is now making a negative momentum divergence with a lower high (the dashed line). The RSI briefly entered “overbought” territory above the 70 level before turning downward.
Since late last year, diverging price and RSI action on MAGS has sent timely warnings on a pending change in the S&P 500.
Now the Mag 7 may be hinting at another reversal in store.
Regards,
Larry Benedict
Editor, Trading With Larry Benedict
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