According to The Kobeissi Letter, the S&P 500 Information Technology sector has dropped 11.0% since its December high, officially entering a correction. This marks the third drawdown of at least 10% over the last 2 years, with Magnificent 7 stocks leading the decline.

According to The Kobeissi Letter, the S&P 500 Information Technology sector has dropped 11.0% since its December high, officially entering a correction. This marks the third drawdown of at least 10% over the last 2 years, with Magnificent 7 stocks leading the decline.

According to The Kobeissi Letter, hedge fund exposure to the Magnificent 7 stocks is currently at a 22-month low, indicating a significant shift in market dynamics. The positioning in these stocks has decreased faster than it did during the 2022 bear market. This suggests that institutional capital is actively rotating and hedging against prevailing market uncertainties.

According to The Kobeissi Letter, hedge funds have been aggressively selling US tech stocks for the first time in months. Last week, institutional investors reduced their tech stock exposure at the fastest pace since July 2024, with the 'Magnificent 7' exposure reaching a two-year low.

According to Michael Saylor, a strategic approach is necessary to outperform the 'Magnificent 7' in cryptocurrency markets. Saylor emphasizes that a structured investment strategy can lead to better market positioning and potential gains, especially in competitive environments dominated by major players. This statement underscores the importance of strategic planning in trading to achieve superior results over prominent market influencers.

According to The Kobeissi Letter, the 'Magnificent 7' stocks have increased by 30 times over the past decade, surpassing historical market surges such as the Nasdaq 100's 12x growth before the 2000 Dot-Com Bubble burst. This comparison highlights significant returns that raise questions about current market valuations and potential bubbles, critical for traders monitoring AI-related stocks.

According to The Kobeissi Letter, the 'Magnificent 7' stocks have surged 30 times in value over the past decade, surpassing the gains seen in other historical market manias. For context, the Nasdaq 100 experienced a 12-fold increase in the decade leading up to the 2000 Dot-Com Bubble burst. Such comparisons suggest the current AI market enthusiasm might represent a significant trading opportunity, but also warn of potential volatility similar to past bubbles.