In this daily editorial, we are joined by Joel Elconin, co-host of the PreMarket Prep Show and founder of the Stock Trader Network. As the market navigates a complex period of tech underperformance and shifting investor sentiment, Joel breaks down why the “Magnificent Seven” are losing steam and where the smart money is rotating to start 2026.
Key Discussion Points:
- The Great Rotation Beneath the Surface: While major indices remain near their highs, a significant internal shift is occurring as investors move away from mega-cap tech and into value-oriented sectors that prioritize cash flow and tangible goods.
- The AI Spending Pivot: Massive capital expenditures by tech giants are no longer being rewarded by the market; instead, investors are looking for “picks and shovels” plays in hardware and infrastructure.
- Energy and Utility Resurgence: The power requirements for AI data centers are driving a new wave of interest in energy producers and traditional utilities, providing a strong floor for these sectors.
- A New Trend in Crude Oil: After years of pressure, crude oil and energy ETFs are showing technical signs of a major turn, supported by both value-seeking investors and rising industrial demand.
- Earnings Season Challenges: The “high bar” set for tech companies is leading to sell-offs even on earnings beats, as guidance fails to justify lofty valuations compared to more stable retail and staple stocks.
Click here to visit Joel’s PreMarket Prep website – https://www.premarketprep.com/
Click here to visit the Stock Trader Network – https://www.stocktradernetwork.com/
Summary of Stocks & Symbols Mentioned: S&P 500 (SPX), Microsoft (MSFT), Google (GOOGL), Amazon (AMZN), Meta (META), Walmart (WMT), Micron (MU), SanDisk, Service Now (NOW), Salesforce (CRM), Constellation Energy (CEG), John Deere (DE), Caterpillar (CAT), Exxon Mobil (XOM), Chevron (CVX), Energy Select Sector SPDR Fund (XLE), United States Oil Fund (USO), Lemonade (LMND).
For more market commentary & interview summaries, subscribe to our Substacks:
- The KE Report: https://kereport.substack.com/
- Shad’s resource market commentary: https://excelsiorprosperity.substack.com/
Investment disclaimer: This content is for informational and educational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any security or investment product. Investing in equities, commodities, really everything involves risk, including the possible loss of principal. Do your own research and consult a licensed financial advisor before making any investment decisions. Guests and hosts may own shares in companies mentioned.