This 'Magnificent Seven' Stock Hasn't Made a New High in 31 Months

It's one of the most widely talked about stocks on the market... And it's one of the so-called "Magnificent Seven" giants... [Chaikin PowerFeed]( This 'Magnificent Seven' Stock Hasn't Made a New High in 31 Months By Vic Lederman, editorial director, Chaikin Analytics It's one of the most widely talked about stocks on the market... And it's one of the so-called "Magnificent Seven" giants... But it hasn't made a new high in an astounding 31 months. I'm talking about electric-car king Tesla (TSLA). And considering all the hype around Magnificent Seven in the financial media, that might be surprising to hear. This is something that deserves a closer look. So today, let's do that with the help of the Power Gauge. And we'll also see what it means in a bigger context... Recommended Links: ["They all laughed at me... until banks started collapsing"]( Some folks laughed when he predicted last year's bank collapses. Now, he's going public with a new must-see prediction that is virtually guaranteed to surprise you – and could have [huge repercussions for your money through the rest of 2024 (no matter who wins the White House)](. [Google, Apple, Amazon Get Approval to Trade Soaring AI Currency]( In the biggest AI story few are talking about, Google, Apple, and Amazon, have gotten approval from the U.S. federal government to buy, sell, and trade a little-known currency that will power AI. It's not gold, bitcoin, or any other crypto, but demand is skyrocketing, and prices have soared as much as 10,000% in a single week. The Financial Times reports it could become, "a new world reserve currency." Whitney Tilson traveled to the AI epicenter of the world to find the best way to profit. [See his full report here](. Before we go on, remember that the Magnificent Seven are the mega-cap tech stocks that replaced Wall Street's previous favorite acronym – "FAANG." Aside from Tesla, the rest of the group includes Apple (AAPL), Amazon (AMZN), Alphabet (GOOGL), Meta Platforms (META), Microsoft (MSFT), and Nvidia (NVDA). These stocks also dominated the market last year. Their average gain was an astounding 111% in 2023. And Tesla was one of three in the group that soared more than 100%. So it might be surprising to hear that the stock hasn't made a new high in more than two and a half years. But take a look at the chart... [Chaikin PowerFeed] That's right, Tesla may be the most talked-about name in the automotive industry these days. And it's the clear leader in American electric-car sales. But over the long term, its share price is suffering. The stock hit an all-time high in November 2021 at about $410 per share. Today, TSLA shares trade for around $183. And in the first panel below the price chart, you'll notice our proprietary measure of the stock's relative strength versus the S&P 500. As you can see, this measure is sharply in the red. That means the stock has been underperforming the broad market. In fact, it's down a staggering 26% this year. Meanwhile, the S&P 500 has soared about 15% so far in 2024. Not surprisingly, when we put it all together, Tesla earns a "very bearish" rating from the Power Gauge today. And as you can see in the bottom panel below the chart, the stock has spent most of this year in "bearish" or worse territory. Folks, this is a big deal... As my colleague and Chaikin Analytics founder Marc Chaikin explained [on Friday]( the market is highly concentrated right now. And investors are focusing on the names at the top. But Tesla is the perfect example of a big name that's struggling. That makes the takeaway clear... Despite the overall market's surge in 2024, now is not the time to simply buy up the big names and hope for the best. Today's market demands a conscious and active approach. That means that now, more than ever, picking the right stocks is paramount. And knowing what to do when that market concentration shifts could be the difference between making huge returns... or seeing your portfolio wither. And that's exactly why Marc is going on camera this coming Wednesday, June 26... During a special event, he'll be sharing what could be the single most profitable strategy he has ever shared with readers. In fact, it's one that has a historical record for outperforming the rest of the market in financial environments just like the one we're seeing right now. Marc will explain everything you need to know during the big event. It all kicks off on Wednesday evening at 8 p.m. Eastern time – and it's completely free to attend. Learn more and register to attend [right here](. Good investing, Vic Lederman Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 -0.2% 7 20 3 S&P 500 -0.53% 116 305 76 Nasdaq -0.27% 32 53 15 Small Caps +0.21% 362 1105 428 Bonds UNCH — According to the Chaikin Power Bar, Small Cap stocks remain somewhat more Bearish than Large Cap stocks. Major indexes are mixed. * * * * Sector Tracker Sector movement over the last 5 days Discretionary +2.4% Energy +1.89% Financial +1.7% Industrials +1.5% Staples +0.94% Communication +0.92% Materials +0.74% Health Care +0.64% Information Technology +0.33% Real Estate -0.13% Utilities -0.79% * * * * Industry Focus Regional Banking Services 26 92 20 Over the past 6 months, the Regional Banking subsector (KRE) has underperformed the S&P 500 by -24.93%. However, its Power Bar ratio, which measures future potential, is Strong, with more Bullish than Bearish stocks. It is currently ranked #12 of 21 subsectors and has moved up 2 slots over the past week. Top Stocks [rating] CFB CrossFirst Bankshare [rating] CCB Coastal Financial Co [rating] FHN First Horizon Corpor * * * * Top Movers Gainers [rating] FDS +3.77% [rating] FMC +3.7% [rating] ETSY +3.38% [rating] GILD +3.18% [rating] CTLT +3.06% Losers [rating] AVGO -4.38% [rating] RMD -3.49% [rating] NVDA -3.22% [rating] MU -3.22% [rating] WRK -2.84% * * * * Earnings Report Reporting Today Rating Before Open After Close No earnings reporting today. Earnings Surprises [rating] FDS FactSet Research Systems Inc. Q3 $4.37 Beat by $0.47 [rating] KMX CarMax, Inc. Q1 $0.97 Beat by $0.06 * * * * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, [click here](. You’re receiving this e-mail at {EMAIL}. For questions about your account or to speak with customer service, call [+1 (877) 697-6783 (U.S.)](tel:18776976783), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. Please note: The law prohibits us from giving personalized investment advice. © 2024 Chaikin Analytics, LLC. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Chaikin Analytics, LLC. 201 King Of Prussia Rd., Suite 650, Radnor, PA 19087. [www.chaikinanalytics.com.]( Any brokers mentioned constitute a partial list of available brokers and is for your information only. Chaikin Analytics, LLC, does not recommend or endorse any brokers, dealers, or investment advisors. Chaikin Analytics forbids its writers from having a financial interest in any security they recommend to our subscribers. All employees of Chaikin Analytics, LLC (and affiliated companies) must wait 24 hours after an investment recommendation is published online – or 72 hours after a direct mail publication is sent – before acting on that recommendation. This work is based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors, and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.