By coinnews 
00:00 Speaker A
It’s time now for today’s strategy session. Earnings season in full swing with four magnificent seven members reporting this week. All but one of the Mag 7 stocks have fallen below their 200 day moving average. So what do the technical indicators spell out for what comes next? Joining us now, Larry Tentarelli. He’s the chief technical strategist for the blue chip daily trend report. Larry, I think if we’re talking about the Mag 7 this morning, I have to start with you on Amazon because this is a stock that is now dragging down the entire retail sector with it this morning. To what extent do you think that Amazon is able to pull out something in this earnings print this week that’s going to allow them to be a positive bellwether for the Mag 7, despite the current market action that is very much related to Amazon as a retailer not as a tech company?
01:02 Larry Tentarelli
Sure. That’s a great question. I don’t know that I’ve got a super clear answer for you. I think that the key thing is really going to be based on forward guidance. We really don’t know what that’s going to be. Amazon, because they’re tied to the consumer, we’re we’re in uncharted territory because there is no blueprint for this tariff cycle right now. But I think it’s going to be a very important tell for the sector.
01:42 Speaker A
As you kind of look across some of the technical tells that are playing out within the tech sector at this juncture, of course two of those larger Mag 7 names in Nvidia and Apple were two of the first major companies, mega cap tech companies, to really initiate some of the pullback this year. Where are the technicals telling us now?
02:10 Larry Tentarelli
So the Mag 7 still is not my favorite place to be. I see much stronger charts, Palantir, CrowdStrike, Netflix. The Mag 7, I think it got to be overowned. I think that a lot of foreign investors had parked money in the Mag 7 and as the US dollar has sold off, I think they’ve also sold the Mag 7 stocks. So the triple Q is still underneath the 200 day moving average. The S&P is. So I’m still, I don’t like the Mag 7 that much yet, but I am open-minded that if the earnings come through and the stocks turn up, then that could be more positive.
03:07 Speaker A
And do you think that there is potential for the opposite, for there to be much more downside for the Mag 7, given that you’re already a little bit skeptical?
03:22 Larry Tentarelli
I don’t know if I’d say much more downside. So what we saw in the S&P 500 two weeks ago, highest weekly volume in 14 years, and it was a major upside reversal week. So historically, that’s how many bear markets have bottomed. So I don’t know that I’d say that there’s major downside per se in the Mag 7, but I think we need to stay open-minded that if they if they’re soft on guidance, you could see some downside.
04:03 Speaker A
Is this still the year for sell in May and go away? Is that at play at all from what you’re kind of seeing, especially given where investors have either been guided in the early kind of market correction to to buy on the dip versus what they’re being guided towards now, which is sell the rally?
04:31 Larry Tentarelli
Right. I think we’re in a different market this year. So I can’t say that sell in May, I think historically if we go back over the past 10 years, sell in May hasn’t actually worked too well. I think this is a very high volatility news driven cycle. I do think last week we had a very bullish week and volatility is starting to come out of the market. But I think it’s really very chart specific. I do think that the S&P and Nasdaq 100 are in a recovery phase. So I’m looking to buy the pullbacks as opposed to sell the rallies.
05:15 Speaker A
Interesting. Larry, great to see you. Thanks for joining us in studio this morning.
05:21 Larry Tentarelli
Thank you so much.
05:23 Speaker A
Absolutely.