Key insights
- The author expresses concern about the Mag7's Q1 performance and anticipates further declines in Q2. They closed long positions in META and TSLA and initiated a short position in MSFT. The reasons cited for the potential downturn include weak earnings, macroeconomic headwinds, and possible market overreaction. This suggests a cautious outlook for large-cap tech stocks.
March was crazy. stocks and other market were all over the place and many people got liquidated. I was focused on stocks, especially the Mag7, and it looks like Q1 was their weakest quarter in a while.
Getclaw says more drop could come in Q2. I had to change my positions quickly. I closed my META and TSLA longs and yesterday I opened a short on MSFT using Bitgetstock futures. Their 0 fees caught my attention. I am planning to reenter around 320.
But the big question is why are the Mag7 in a downward spiral? Weak earnings, macro problems, or just market overreaction? What do you think?