Chart is sourced from Finviz.con
QID is a 2X leveraged, Short ETF designed for benefiting on the downside action of the NASDAQ 100 (QQQ). Intended for short-term trades, its performance declined significantly as the QQQ rebounded after the March 2025 flash crash. According to Stage Analysis, we are looking at Stage Four, the declining stage, and Stage One the basing stage. With the price now above declining trend lines, it appears QID is entering the rally stage, Stage Two.
For comparison, we are also showing the chart of the NASDAQ (QQQ) below. An account related to LOTM has purchased a small position in a related account as a hedge for that account.
We are guessing that what we are seeing in the chart below is a rotation out of the Large Cap Tech stocks and a rotation into Natural Resources, Precious and Industrial Metals, Small Cap stocks, Infrastructure stocks and Stock Markets outside the USA.
Chart is sourced from Finviz.con
FACT: Be aware the “Magnificent Seven” (Mag 7) companies currently represent approximately 40% to 45% of the Nasdaq 100 index. Although a special rebalancing in 2023 was designed to reduce their influence, their massive market capitalizations have allowed them to maintain a dominant share of the index’s total weight.
Recent Weighting Trends
- Current Standing (2026): Analysts note that while the Mag 7 still dominates, a “Great Rotation” began in early 2026 as investors shifted toward mid-cap and defensive stocks.
- Historical Peak: Their combined weight reached a high of 48.8% in 2021 and was roughly 43.6% in July 2025.
- Comparison to S&P 500: For context, the same seven companies represent about 34.3% of the S&P 500 as of February 2026.
The “Magnificent Seven” Companies
- Nvidia (NVDA)
- Microsoft (MSFT)
- Apple (AAPL)
- Amazon (AMZN)
- Meta Platforms (META)
- Alphabet (GOOGL/GOOG)
- Tesla (TSLA)
The concentration in these few stocks means that the Invesco QQQ Trust (QQQ), which tracks the Nasdaq 100, is highly sensitive to the performance of these specific tech giants. This is not necessarily a negative, but understand you are not diversified if investing in the S&P 500 (SPY) or the Nasdaq 100 (QQQ).
Of the Mag 7 companies, how many are investing in hyper compute data centers?
All seven companies in the “Magnificent Seven” (Mag 7) are investing significantly in hyper-compute and AI data center infrastructure as of February 2026. Collectively, these firms are projected to spend a record $650 billion to $660 billion in capital expenditure (CapEx) during 2026, with the vast majority directed toward high-density GPU clusters, custom AI silicon, and advanced cooling systems.
This capital spend into physical structures dramatically changes their profit margin structure – negatively.
SEE: The Extinction Event: Why SaaS is Already Dead (It Just Doesn’t Know It Yet)
Srinivas Rao March 2025, published in Medium – 20-minute read
#qid #spy #stocks #mag7 #saas
LOTM Research & Consulting Service
* An account related to LOTM holds a position in this security.
Neither LOTM nor Tom Linzmeier is a Registered Investment Advisor.
Please refer to our web site for full disclosure at www.LivingOffTheMarket.com ZTA Capital Group, Inc.
To Unsubscribe please select “return” and type Unsubscribe in the subject line..
