# Magnificent 7 Are Struggling?
**Date:** 2026-06-24  
**Source:** [YouTube](https://www.youtube.com/watch?v=nHnl35yjKIs)

## Main Thesis
The Magnificent 7 stocks, despite their previous strong performance, are now struggling and dropping off, indicating that the market is not 'dumb' and is reacting to their high valuations and borrowing for growth. This suggests a potential shift in market dynamics.

## Charts & Technical Analysis

### 1. XMAG (Defiance Large Cap ex-Magnificent 7 ETF) vs. MAGS (Roundhill Magnificent Seven ETF) (1D (Daily))

**Bias:** BEARISH FOR MAGS, BULLISH FOR XMAG
**Pattern:** divergence

The chart shows a clear divergence between XMAG (Defiance Large Cap ex-Magnificent 7 ETF) and MAGS (Roundhill Magnificent Seven ETF). XMAG, representing the broader market excluding the Magnificent 7, is trending upwards, showing a gain of +4.88%. In contrast, MAGS, representing the Magnificent 7, is trending downwards, showing a loss of -9.31%. Atkinson highlights that the Magnificent 7 (MAGS) has not been doing well, dropping off significantly. He explains that these companies are effectively 'check writers,' buying hardware at expensive rates, and have been dropping off because the market is not 'dumb.' He further states that semiconductors are up because these Magnificent 7 companies are buying everything, raising capital, and spending their cash to grow the US economy, and are now borrowing more.

## Regime / Cycle Analysis
Atkinson implies a shift in market dynamics where the broader market (ex-Magnificent 7) is outperforming the previously dominant Magnificent 7. He suggests that the market is recognizing the high spending and borrowing by the Magnificent 7, which has been artificially boosting GDP growth.

## Key Calls & Predictions
- The Magnificent 7 stocks are struggling and dropping off.
- The market is not 'dumb' and is reacting to the high spending and borrowing of the Magnificent 7.
- Semiconductors are benefiting from the Magnificent 7's hardware purchases.
- The Magnificent 7's spending and borrowing have contributed to US GDP growth.

## All Instruments Mentioned
XMAG, MAGS, Semiconductors

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*Generated by FX Evolution Monitor on 2026-06-24 20:00:13*