Winter is NOT Coming for Tech: Mag 7 Wobbles, but the Market Still Bends the Knee

Burn Them All? (Or Just Some Tech Stocks?)

My dragons are magnificent truly. But even they can't be everywhere at once scorching every foe. Similarly these 'Magnificent Seven' tech stocks once the fire breathing dragons of Wall Street seem to be losing a bit of their… fire. This 'Roundhill Magnificent 7 ETF,' or 'MAGS' as the smallfolk call it is down 17% this year. Seventeen percent! That's more than double the measly 7% drop in the S&P 500. Are these stocks turning to ash before our very eyes? 'Dracarys!'... maybe not just yet.

The Iron Throne of Market Share

The rot is spreading. This underperformance has lessened their grip on the S&P 500. Strategas ETF strategist Todd Sohn (a name that sounds suspiciously like a Lannister lackey) says their weighting has fallen from 34% to 29% since the new year. It seems even the mighty must bend the knee eventually. "Index concentration has cooled," Sohn wrote referring to the amount of coin earmarked for specific groups of stocks. It seems my reign as the 'Breaker of Chains' will have to extend to breaking the chains of market concentration as well!

Hope Flickers Like Dragonfire

But fear not loyal subjects! Even in the darkest of times there are embers of hope. Netflix's earnings soared like a dragon taking flight lifting spirits across the realm. Tesla's results... well they were more like a wounded direwolf. But even a wounded wolf can still bite! And Amazon and Nvidia claim the demand for AI data centers is still hotter than dragonfire. Perhaps these tech giants are merely regrouping for a counter attack. We shall see. My patience is not limitless but my believe in them will continue.

5,500: The Wall That Refuses to Fall

But these embers haven't been enough to shake off the market's 'tariff worry slump.' The S&P 500 stubbornly refuses to breach the 5,500 level. It's like the Wall constantly needing reinforcements. Are we facing a Night King of economic woes? I will stand against it as I always have.

A New Dawn... or Just a Different Shade of Grey?

Is the weakening influence of these 'Mag 7' stocks a bad thing? Some 'strategists' (who are often as useful as Varys at a jousting tournament) worried the market was too focused on these few names. Perhaps a more diverse market is like a dragon with multiple heads: harder to kill! But this also means the market needs help from other sectors to achieve a true rally. But Wall Street worries that the consumer sensitive parts of the economy are facing an economic slowdown or worse. "Sales and earnings expectations are moving lower in virtually every sector," says UBS strategist Sean Simonds. The largest downgrades are in sectors most impacted by tariffs which are like economic wildfire.

Pro LIVE: Gather Round My Loyal Investors!

For those seeking guidance in these tumultuous times CNBC is hosting a 'Pro LIVE' event at the New York Stock Exchange. It promises expert insights from Carter Worth Dan Niles and Dan Ives. It's like a council of advisors only hopefully less prone to backstabbing than my own. And there's even a cocktail hour on the trading floor! A chance to network and strategize perhaps even forge alliances. After all 'When you play the game of stocks you win or you die.' There is no middle ground.