The Magnificent Seven’s Struggles Handed Us an 89% Win By the Opportunistic Trader Editorial Team The Invesco QQQ Trust Series 1 (QQQ) has been on a wild ride over the past couple of months… QQQ tracks the tech-heavy Nasdaq Composite Index. It started off the year strong, rallying to an all-time high in March. But then it dropped 7% in April… before rebounding nearly 5% so far in May. Why does QQQ go through dramatic swings like these? Part of the reason is its focus on the Magnificent Seven. These seven mega-cap tech stocks make up over 40% of the entire index fund… Microsoft: 8.61% Apple: 7.97% Nvidia: 6.38% Alphabet: 5.56% Amazon: 5.51% Meta Platforms: 4.67% Tesla: 2.38% So if just one or two of these stocks have an impressive earnings report, it can kick off a rally. And if any of these stocks struggle, it can lead to a pullback. That’s what happened in April. Apple, Tesla, and Alphabet all disappointed investors, and QQQ slid 7%. Fortunately, Larry warned his subscribers in March that QQQ was vulnerable. That led to an 89% gain in 42 days. If you’d like to catch up on our replay of this trade, be sure to check out our Friday essay where Larry broke down how this setup played out. We also shared several pieces from fellow trader Jonathan Rose this week. If you missed any, be sure to check out the links below… Recommended Link | R.I.P. for the American Dream? (Surprising answer inside…) A record-low happiness level is seeping through the nation’s fabric like wildfire. The culprits? The floundering state of the economy… rising housing costs… and skyrocketing inflation. It’s called the “opportunity gap”… And the bad news is it’s only getting wider. BUT THERE IS HOPE… Meet Andy and Landon Swan, a couple of Midwestern brothers who transformed themselves into legendary Wall Street fintech experts. Fortune 500 companies and $100 billion hedge funds pay up to $750,000 a year to access their stock market research. Now they’ve issued a major buy alert for a surprising company making news in the AI space. They have compelling evidence that this Great AI Moonshot could become the #1 tech sensation of the decade! |
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