Systematic Trading Strategies and Next Level Trading Setups

Mixed Performance Weighs on the MAG7 as the ETF Hits Moment of Truth

Mixed Performance Weighs on the MAG7 as the ETF Hits Moment of Truth

Welcome to the Chart Fix!

The Mag7 ETF is slightly lagging the broader market because of relative weakness in three components. Nevertheless, four components are showing strength and the ETF hit a moment of truth as it returned to the breakout zone. Today’s report will focus on performance for stocks in the Mag7, the Mag7 ETF chart and one of the leading components (Apple).

  • Leaders and Laggards within MAGS
  • MAGS Hits Moment of Truth
  • Apple Corrects after Breakout Surge

Recent Reports and Videos at TrendInvestorPro

  • Breakouts in Tech, Semis, AI, Industrials & Defense
  • Biotech ETFs Set Up with Bullish Continuation Patterns
  • Healthcare Extends on Breakout as Breadth Improves
  • A Breadth Thrust for Utilities (plus Two Stocks)
  • Copper and Base Metals Set Up as Copper Miners Breakout
  • Click here to take a trial and gain full access.

This report continues at TrendInvestorPro with analysis of the other three leaders, Nvidia, Amazon and Alphabet. These three are hitting Bullish Setup Zones after becoming short-term oversold. This report also includes a video. Subscribers can click here for the report. Click here to subscribe and get immediate access. 

Leaders and Laggards within MAGS

The PerfChart below shows year-to-date performance for the Mag7 stocks. SPY is up year-to-date, but MAGS is down around 2%. Four components are up with Nvidia (NVDA) and Alphabet (GOOGL) leading the way. Microsoft (MSFT), Tesla (TSLA) and Meta (META) are weighing with double digit declines in 2026.

The next chart shows performance since the late March low. MAGS is up 16.52%, and slightly lagging SPY (+17.25%). Again, we can see the same leaders and laggards. NVDA, AMZN, GOOGL and AAPL are outperforming with strong gains, while MSFT, TSLA and META are lagging with smaller gains.

These performance charts show that the Mag7 stocks are not one homogeneous group. They do not move in the same direction and are not positively correlated. This performance difference could make it difficult for MAGS to develop a sustained trend. 

MAGS Hits Moment of Truth

The next chart shows the Mag7 ETF (MAGS) with the 200-day SMA and price-relative (MAGS/RSP ratio). MAGS broke out in April and surged to new highs in May. It tested these highs in early June and then fell back to the 200-day SMA.

The blue shading marks the moment of truth for MAGS. A normal correction should end in this area and reverse (blue shading). Here we have the rising 200-day SMA, the 50% retracement and broken resistance, which turns into support. A return to the 200-day and the breakout is normal for a correction, while a 50% retracement represents one step backwards after two steps forward.

MAGS bounced off this level with a gap on Monday and then fell back. This pop-and-drop established a short-term resistance level to watch for follow through. A move above 67 would show follow through and trigger a short-term breakout.

Apple Corrects after Breakout Surge

The next chart shows Apple (AAPL) advancing into early December, forming a triangle into April and breaking out at the beginning of May. A triangle is a consolidation that takes its trading bias from the direction of the prior move, which was up. This makes it a bullish continuation pattern.

I don’t see a setup in Apple right now. The breakout zone and rising 200-day SMA mark support in the 265-280 area. A correction into this zone may provide an opportunity.

The other three leaders are setting up as they correct within their uptrends. The second part of this report continues on TrendInvestorPro (subscription). Note that TrendInvestorPro specializes in finding tradable pullbacks within leading uptrends.

Recent Reports and Videos at TrendInvestorPro

  • Breakouts in Tech, Semis, AI, Industrials & Defense
  • Biotech ETFs Set Up with Bullish Continuation Patterns
  • Healthcare Extends on Breakout as Breadth Improves
  • A Breadth Thrust for Utilities (plus Two Stocks)
  • Copper and Base Metals Set Up as Copper Miners Breakout
  • Click here to take a trial and gain full access.

Copper and Base Metals Set Up as Copper Miners Holds Breakout – Ag Breaks Out

By

Bonds, precious metals and uranium are trending lower, while industrial metals and agriculture are trending higher. As a consequence, long and short term rates are trending higher, with the latter weighing on gold. Gold, silver and precious metals are in downtrends. Coppers and Base Metals are holding up relatively well with short-term setups working. The Copper Miners ETF remains with a triangle breakout and the DB Agriculture ETF surged off a key retracement. $IEF $UST10Y $GLD $SLV $UST2Y $CPER $DBB $COPX $SRUUF $DBA

Copper and Base Metals Set Up as Copper Miners Holds Breakout – Ag Breaks Out Read More »

Healthcare Extends as Breadth Improves – Setups: Pfizer, Vertex, Novartis, J&J

By

Weakness in medical devices/equipment weighed on the healthcare sector this year, but we are seeing strength in large pharma stocks, which account for most of the sector’s weighting. Overall, breadth is improving as XLV extends on its breakouts. We are also seeing bullish setups/breakouts in Pfizer, Vertex, Novartis and J&J $XLV $PFE $NVS $VRTX $JNJ

Healthcare Extends as Breadth Improves – Setups: Pfizer, Vertex, Novartis, J&J Read More »

Breadth Thrust for Utilities – Ameren Surges off Support – Centerpoint Breaks Out

By

The utilities sector got a bullish breadth thrust as the percentage of XLU stocks above their 50-day EMA surged above 80. Today’s report will analyze the XLU price chart, this thrust and two long-term breadth indicators, which are bullish. We then dive into the sector with bullish charts for Ameren and Centerpoint. $XLU $AEE $CNP

Breadth Thrust for Utilities – Ameren Surges off Support – Centerpoint Breaks Out Read More »

Breadth Stays Bullish – Yield Spreads Remain Narrow – 10yr Trends Higher

By

The weight of the evidence remains bullish for stocks. All three breadth models are majority bullish. The 5/200 cross for SPY signals an uptrend and yield spreads are narrow (no stress in credit market). Treasury yields are the only negative because both the 2yr and 10yr yields are in clear uptrends. Bullish breadth, the SPY uptrend and narrow spreads trump rising rates.

Breadth Stays Bullish – Yield Spreads Remain Narrow – 10yr Trends Higher Read More »

Breakouts in Tech, Semis, AI, Industrials & Defense – Biotechs Setting Up

By

The weight of the evidence has been bullish since the early April surge. Despite disruptions in the Middle East, high oil prices and rising interest rates, stocks stayed bullish throughout April-May and remain bullish here in June. Clearly, the stock market is looking past current events, as it always does. $XLK $SMH $SOXX $AIQ $DCTR $XLI $ITA $XLB $IFRA $IBB $XBI

Breakouts in Tech, Semis, AI, Industrials & Defense – Biotechs Setting Up Read More »

Rotation Investor NDX100 – Ranking Table

By

This page covers the ranking table for the rotation strategy trading Nasdaq 100 stocks (RO-Investor-NDX). The ranking table includes the sector and industry for sorting to find specific groups (software, semiconductor). Table indicators include the Momentum Rank, PPO Trend (up/down), Broad Breadth Model (bull/bear), the NDX momentum indicator and the 5-day change in momentum. The default sort puts the strongest stocks at the top and each stock includes a SharpChart link.

Rotation Investor NDX100 – Ranking Table Read More »

Rotation Investor NDX100 – Signals & Portfolio

By

This page covers the signals and portfolio for the rotation strategy trading Nasdaq 100 stocks (RO-Investor-NDX). The strategy starts with our stock market breadth model to define the broad market environment. There is a table showing the current portfolio, gain/loss and new entry/exit signals. Two sidebars make it easy to compare the current ranking with the prior week’s ranking, and see which stocks made the cut. A second table shows the most recent closed positions with their gain/loss and bars traded.

Rotation Investor NDX100 – Signals & Portfolio Read More »

Rotation Investor SPX500 – Signals & Portfolio

By

This page covers the signals and portfolio for the rotation strategy trading S&P 500 stocks (RO-Investor-SPX). The strategy starts with our stock market breadth model to define the broad market environment. There is a table showing the current portfolio, gain/loss and new entry/exit signals. Two sidebars make it easy to compare the current ranking with the prior week’s ranking, and see which stocks made the cut. A second table shows the most recent closed positions with their gain/loss and bars traded.

Rotation Investor SPX500 – Signals & Portfolio Read More »

Rotation Investor ETF – Signals and Portfolio

By

This page covers the signals and portfolio for the rotation strategy trading ETFs (RO-Investor-ETF). The strategy starts with our stock market breadth model to define ETF eligibility. There is a table showing the current portfolio, gain/loss and new entry/exit signals. Two sidebars make it easy to compare the current ranking with the prior week’s ranking, and see which ETFs made the cut. A second table shows the most recent closed positions with their gain/loss and bars traded.

Rotation Investor ETF – Signals and Portfolio Read More »

Rotation Investor SPX500 – Ranking Table

By

This page covers the ranking table for the rotation strategy trading S&P 500 stocks (RO-Investor-SPX). The ranking table includes the sector and industry for sorting to find specific groups (housing, semiconductor). Table indicators include the Momentum Rank, Trend Filter (strong/not), Broad Breadth Model (bull/bear), the SPX momentum indicator and the 5-day change in momentum. The default sort puts the strongest stocks at the top and each stock includes a SharpChart link.

Rotation Investor SPX500 – Ranking Table Read More »

Trend Trio Signals & Momentum Scores: ETF Master List (250+ ETFs)

By

This page tracks Trend Trio signals and momentum ranking for over 250 ETFs. Users can identify new trend signals, track existing signals and see the percentage change. Sortable columns make it easy to filter for uptrends and then sort by momentum to rank trend strength. The table includes links to a StockCharts chart with corresponding indicators.

Trend Trio Signals & Momentum Scores: ETF Master List (250+ ETFs) Read More »

Stock Market Model – Current Signal

By

Updated at the end of every week (usually Saturday mornings), this page shows charts and current signals for the Broad Breadth Model (BBM). The model uses an array of breadth indicators from various indexes for a weight of the evidence approach to assess conditions for the broader stock market (large-caps, mid-caps, small-caps). Stock market conditions are favorable when this model is bullish (positive) and unfavorable when the model is bearish (negative).

Stock Market Model – Current Signal Read More »

Rotation Investor ETF – Ranking Table

By

This page covers the ranking table for the rotation strategy trading ETFs (RO-Investor-ETF). The ranking table shows the ETF universe with a sortable prefix, which makes it easy to find specific groups (tech ETFs, commodity ETFs). Table indicators include the Momentum Rank, Trend Trio (up/down), Broad Breadth Model (bull/bear), the momentum indicator and the 5-day change in momentum. The default sort puts the strongest ETFs at the top and each ETF includes a SharpChart link.

Rotation Investor ETF – Ranking Table Read More »

Small-caps Lead – Breadth Improves as SPY Pulls Back – Industrials SPDR Sets Up

By

SPY pulled back in early June, but remains in bull market mode with improving breadth. The bull market is broadening with more stocks moving above their 200-day SMAs. This is especially true for small-caps, which were leading in March and continue to lead in June. Within the S&P 500, I am seeing a bullish setup in the Industrials SPDR. $SPY $IJR $SPXA200R $SMLA200R $XLK !GT200XLI

Small-caps Lead – Breadth Improves as SPY Pulls Back – Industrials SPDR Sets Up Read More »

Rising Rates and Hawkish Fed Weigh on Gold/Silver – Copper Miners Hits MoT

By

Precious metals were hit hard this week with gold, silver and platinum breaking their 200-day SMAs. All three are now in downtrends. Today’s report will cover these breakdowns and show why the macro backdrop is negative for precious metals. The 2-yr Treasury Yield is rising and above the Fed Funds Target Rate, which points to a hawkish Fed. We will chart the macro shifts since 2021 and lay out the bear case for gold, and possibly stocks. $GLD $SLV $$FEDTGT $UST2Y $GDX $COPX $URA $SRUUF

Rising Rates and Hawkish Fed Weigh on Gold/Silver – Copper Miners Hits MoT Read More »

Hyperscaler Debt – MAGS Lags – Overextended Semis – Software Volatility

By

Today’s report will focus on the Mag7 ETF and Semiconductors ($MAGS, $SOXX, $SMH). Hyperscalers drive AI spending and semiconductors are the main beneficiary. MAGS shows relative weakness and the semiconductor ETFs are extremely stretched. Keep in mind that semiconductors account for 48% of the Technology SPDR and tech accounts for 37.26% of SPY.

Hyperscaler Debt – MAGS Lags – Overextended Semis – Software Volatility Read More »

Breakouts in Finance, Brokers, Banks, Defense – Setups in Biotech and Med Devices

By

There are signs of money is moving into groups related to the finance and healthcare sectors. The Finance SPDR, Broker-Dealer ETF and Bank ETFs are breaking out with strong moves the last five days. Within healthcare, the biotech ETFs are setting up with bullish consolidation patterns. Even the lowly Medical Devices ETF is perking up with a double bottom and an bullish Aroon cross. $XLF, $IAI, $KRE, $KBE, $ITA, $IHI, $XBI, $IBB

Breakouts in Finance, Brokers, Banks, Defense – Setups in Biotech and Med Devices Read More »

Scroll to Top