30 Second Update:
Thursday, 12/19/2024: The S&P 500 has fallen below its 50 day simple moving average. We sold our positions today at around 1:00 pm. We are now sitting on the sidelines waiting for the next upward trend. Our most recent transactions:On Thursday 9/12/2024, we purchased the following:
- METU at an average price of $27.94 per share. Sold at $35.69. Up 27.74%.
- GGLL at an average price of $32.35 per share. Sold at $46.90. Up 44.98%.
- AAPU at an average price of $35.03 per share. Sold at $38.03. Up 8.56%.
- FNGU at an average price of $376.50 per share. Sold at $606.91. Up 61.20%.
Overall return: Up 35.62%! Very happy with this less than four-month investment! Warning: As always, the stock market is never a safe place for your money. Please read our disclosure page carefully.To view our investement history, please view our history page.
Magnificent Seven Positives:
The products of these seven companies are used globally on a daily basis.These seven stocks are in an upward trend. We believe in the tried and true philosophy, "Don't fight the trend."These companies have a continuous history of substantial profits.These companies project strong growth potential.At the time of this writing, this group has more cash on hand than debt. This is rare in today's stock market.
Negatives:
Their current price levels are high. Recently, they have increased in value considerably. Historically, when a stock increases rapidily, the corresponding fall can even be faster.
The Ticker Symbols:
AAPL - Apple - The actual symbol is AAPL. If you would like 2x leveraged, the symbol is AAPU.MSFT - MicrosoftNVDA - NvidiaAMZN - AmazonTSLA - Tesla
For simplicity, it is often easier to purchase an Exchange Traded Fund (ETF) or an Exchange Traded Note (ETN) instead of individual stocks. Below are two such funds worth considering:MGK - Vanguard Mega Cap Growth Index Fund. This fund's investors receive the growth (or loss) of the return of the Magnificent 7 stocks combined with a few companies selected by Vanguard. This fund can be used as alternative for purchasing the stocks individually. The downside to this is Vanguard is selecting which stocks are heavily weighted instead of your controlling the selection.FNGU - MicroSectors FANG+ Index 3X Leveraged ETN. This fund's investors receive three times the growth (or loss) of the return of the Magnificent 7 stocks combined with a few companies selected by MicroSectors. Consequently, the upside is increased three fold; however, with the potential of tremendous gains, comes substantial risk. If the Magnificent 7 stock prices plummet, the losses can be tremendous! This ETN is extremely risky! Warning, if the Magnificent 7 stocks were each to fall by 34% or more in one market day, you would lose 100% of your investment, but this is almost certainly impossible because of the "circuit breakers" currently installed in the U.S. stock market.We all know stocks tend to be very volatile. The faster a stock rises, the faster it tends to go down. Therefore, at some point in time, the Magnificent 7 stocks will be in a downward trend. The following ETN may be very useful when the stocks are headed down.
FNGD - MicroSectors FANG+ Index -3X Inverse Leveraged ETN. This fund's investors receive negative three times the growth (or loss) of the return of the Magnificent 7 stocks combined with a few companies selected by MicroSectors. Consequently, the upside is increased three fold; however, with the potential of tremendous gains, comes substantial risk. If the Magnificent 7 stock prices increase, the losses can be tremendous! This ETN is extremely risky! Warning, if the Magnificent 7 stocks were to go up by 34%, you would lose 100% of your investment!
Lori Calvasina, RBC Capital Markets head of US equity strategy, says she expects energy and financial stocks to provide some earnings competition to the so-called "Magnificent Seven" of the S&P 500 index. "The threat to tech going into next year is not that their earnings necessarily fall apart, but rather that there's some competition," she says on "Bloomberg Markets."
Corient Partner and Wealth Advisor Amy Kong, and Joe Terranova, chief market strategist at Virtus Investment Partners, join 'Closing Bell' to discuss the CPI inflation data, what it means for more rate hikes, and more.
Satori Fund's Dan Nile gives some very interesting information on the Magnificent Seven Stocks.
'Magnificent Seven' stocks are expensive: Miller Value Partners' Bill Miller
Skip to 4:15 on the video for specific information on the Magnificent Seven Stocks. Skyrocketing bond yields are bad news for the bulk of the market, says Jim Cramer.
Our Current Investment Status:
Thursday, 12/19/2024: The S&P 500 has fallen below its 50 day simple moving average. We sold our positions today at around 1:00 pm. We are now sitting on the sidelines waiting for the next upward trend. Our most recent transactions:On Thursday 9/12/2024, we purchased the following:
- METU at an average price of $27.94 per share. Sold at $35.69. Up 27.74%.
- GGLL at an average price of $32.35 per share. Sold at $46.90. Up 44.98%.
- AAPU at an average price of $35.03 per share. Sold at $38.03. Up 8.56%.
- FNGU at an average price of $376.50 per share. Sold at $606.91. Up 61.20%.
Overall return: Up 35.62%! Very happy with this less than four-month investment! Warning: As always, the stock market is never a safe place for your money.. Please read our disclosure page carefully.What's next?
- We will enjoy the current upward trend.
- When the S&P 500 falls below its 50 day SMA, we plan to sell everything and go to the sidelines. We do our best to only be invested when the S&P 500 is above its 50 day SMA.
When do we sell?
Obviously, our goal is to sell at the peak. But in reality, we all know that is extremely tough, if not impossible to do consistently. We know we want to be totally out of these positions when the S&P falls below its 50 day SMA, but if we wait that long, we will have given back much of our profits. Therefore, when we are "considerably up", we begin moving stock market money (a large percentage of our recent gains) to other assets. In other words, we like to purchase investment real estate or other appreciating assets. We call this "Portfolio Balancing".
Warning: Investing in the stock market is dangerous. You can and will lose money. We are not giving advice. We are simply documenting our strategy. Please consult a professional before making any investment decisions. You may click here for a full disclosure document. Thank you.
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