Hey trader,
A week ago the crowd hung a fresh insult on the biggest stocks in the market. They called them the Lag Seven.
A few got nastier. Bag Seven, they said, as in you are the sucker left holding the bag.
Now those same stocks are ripping. Meta alone ran 60 dollars in one session.
I called this bid nearly two months ago. It is finally paying off.
Let me walk you through which laggards are turning first, why the timing lines up, and the three moves I am making now that the new quarter is here.
Why Everyone Gave Up At The Worst Time
The Mag Seven topped in mid-May. They bled for weeks while the rest of the market kept climbing.
That handed us something you rarely see. Around 40% of the S&P 500 got hammered for six weeks straight. The index would not break.
Read that again. The heaviest names in the market fell apart. The S&P shrugged it off.
That is muscle under the surface. A market that holds while its leaders crack is a market getting ready to run.
By last week the mood had gone rotten. Traders dumped the mega-caps at the exact spot they were leaning on support.
The Turn Is Already Here
Meta kicked the door in first. It ran almost 10% in a single day.
The setup sat there in plain sight. Meta printed a higher low. Its last record high was back in August. It still trades about 30% under that peak.
I have pounded the table on this for close to two months. My ask was simple. The beaten-down names had to catch a bid before I trusted the move.
Here is what just came alive:
- Meta cleared its multi-month slump. A close above 635 puts a four-figure share price in play. I peg it as a Mag Seven leader into year-end.
- Nvidia snapped back hard and the weekly chart is coiling up.
- Tesla stamped a clean higher low and closed a strong week.
- Microsoft may have already carved its bottom. Palantir grabbed a solid bid off the lows.
Amazon earns a spot too. Its dip looks like a fake-out, not a real breakdown. The chart is holding up fine.
Three Moves I Am Making Now
The setup that scared everyone out was the one worth buying. Selling into support during a cyclical bottom window is how accounts bleed out.
First, quit treating the mega-caps as dead money. The weekly charts are curling higher. The biggest moves land when every time frame points the same way.
Second, hunt the names left for dead, not the ones already stretched. Broadcom looks tired up here. The juice sits in Palantir, Microsoft, and Meta, all lifting off depressed levels.
Third, respect the fear that lit this fuse. The CBOE put/call ratio spiked above 1 coming into the week. We had not seen panic like that since the Liberation Day lows of 2025.
Every time that ratio clears 1.1, the S&P has been higher three and four weeks later 100% of the time. The average gains topped 3%.
That is the rocket fuel. The crowd loaded up on protection at the bottom. Now they have to chase it back up.
My Trinity Terminal has been tagging these laggard setups as they base. I laid out the exact levels and the trades I am taking into the quarter in this week’s Trinity Trade session.
Watch the replay before these plays finish running.
Watch the Trinity Trade Webinar Replay
Take Care,
Gianni Di Poce
