The Magnificent Seven Is Down to Just One VIEW IN BROWSER By Michael Salvatore, Editor, TradeSmith Daily In This Digest: - Our AI model shows this energy stock will be 10% higher over the next two weeks
- Did you get these 15 free AI “Golden Rivets” stock picks?
- Only one Mag 7 stock isn’t a sell right now
Yesterday, Israel hit one of the world’s largest gas fields… The target was South Pars – a massive offshore gas reserve off the coast of southern Iran that supplies a significant chunk of global gas. The strike was the first attack on Iran’s gas fields since the war began on Feb. 28. Oil markets reacted immediately. Brent crude – the global benchmark – jumped more than 5% to nearly $110 a barrel. Since the war began, it has surged roughly 60%, up from around $70 before the first strikes. Iran responded with threats to hit energy facilities in Saudi Arabia, the UAE, and Qatar – naming specific targets and telling workers to evacuate. Here in the U.S., the White House moved quickly. President Trump issued a 60-day waiver of the Jones Act – a century-old law that limits oil and gas shipping between American ports to U.S.-flagged vessels. The waiver opens those routes to foreign tankers, at least temporarily, as Washington tries to keep domestic energy supplies moving. We’re three weeks into this war. And disruption to the world’s energy supplies is getting worse, not better. The Energy sector entered a bullish Short-Term Health Green Zone last November, where it remains today. And it isn’t the only TradeSmith indicator that’s bullish on the sector. | Recommended Link | | | | For years, the American economy has been engineered to reward Wall Street institutional investors and Silicon Valley insiders first. Everyday investors like you and me were left with the table scraps. But this rigged game ends today! Jeff Brown will show you how to claim your stake… On what’s set to be the biggest IPO in history… Before it goes public. Click here now. |  | | Predictive Alpha sees more price rises for this key energy ETF… Think of Predictive Alpha as a large numbers model. The same way large language models like ChatGPT predict the next word in a sentence, Predictive Alpha predicts the next price move. We trained it on more than 100 billion stock market data points – price swings, volatility spikes, unusual trading patterns – to forecast the price of stocks and ETFs up to 21 days out. And it forecasts a 3.2% rise in the Energy Select Sector SPDR Fund (XLE) – the most widely held energy ETF in the market – by April 16. Take a look. 
The blue line to the left of the dotted vertical line tracks the share price of XLE. The blue cone to its right shows the range of potential prices through the forecast. And the dotted blue line inside it shows our key forecast. The historical target accuracy – how often the price hit its target in the past – on that forecast is 74.2%. That’s solid, but individual energy stocks are showing even better setups. Take Equinor (EQNR), one of the world’s largest offshore energy companies. Below is yesterday’s forecast, before EQNR jumped as high as 9% today. 
Predictive Alpha is projecting a 9.9% gain by April 5. And the historical accuracy on that forecast is 86.7%. That’s more than twice the projected move on XLE, with higher confidence behind the forecast. The broader ETF is bullish. Individual stocks within the sector are even more so. Eric Fry saw this energy crunch coming… Yesterday, Eric – an analyst at our sister company InvestorPlace – shared something he’s been building toward for months. In a free presentation called FutureProof 2026, he laid out the case for a “regime change” in the stock market – a shift away from the Magnificent Seven tech giants toward the companies supplying what he calls AI’s “Golden Rivets.” The Golden Rivets are the specific, physical inputs the AI boom requires to keep scaling: copper, energy capacity, and memory chips. The physical stuff you need to keep advancing the power of AI models. Hyperscalers like Amazon (AMZN), Meta Platforms (META), Google parent Alphabet (GOOGL), and Microsoft (MSFT) are set to spend $650 billion on AI infrastructure in 2026 alone. But they’re running into physical constraints that money can’t solve quickly. To maintain AI growth rates, the world needs to mine as much copper in the next 18 years as it mined over the last 10,000 years. A new copper mine takes seven to 10 years to open. And Eric has been tracking this theme for the better part of a year. In July 2025, he told his subscribers to sell Nvidia (NVDA) and buy Corning (GLW) – the maker of fiber-optic cable that solves AI’s networking bottleneck. Since that call, Corning is up more than 100%. Nvidia has barely moved. He watched the AI trade shift from chips to infrastructure before most of the market did. The big idea is simple to understand but hard to execute. Eric’s seeking out the smaller companies these hyperscalers are spending their hundreds of billions of dollars with to bring AI infrastructure online. Most investors can’t figure out what these smaller companies are until they’re headline news – if they ever become headline news in the first place. But during the presentation, Eric shared 15 free stock ideas across raw materials, energy, memory chip companies, and more. All of these firms are positioned to solve the problem of AI’s physical supply restraints, making them some of the best plays in the market right now. Eric first aired his broadcast and shared these picks yesterday at 1pm, but the replay is still available. Click right here for the full story. The Magnificent Seven are now the Magnificent One… Eric’s market regime change idea is showing up, clear as day, in our Short-Term Health indicator. Short-Term Health measures a stock’s recent price action against its own normal volatility range. It’s looking for abnormal moves that signal a momentum shift. When a stock is in a Green Zone, it’s in a healthy uptrend. Yellow means caution. Red means sell. You probably own several Magnificent Seven stocks. And your 401(k) is almost certainly stuffed with them. These seven mega-cap tech stocks comprise a third of the value of the S&P 500 and nearly two-thirds of the Nasdaq 100 index. None of them are Green right now. All but one are in the Red. And Nvidia, the poster child of the AI boom and the world’s largest company that makes up an eye-watering 13.4% of the Nasdaq 100, flipped Red yesterday: 
Alphabet (GOOGL) is the one holdout still in Yellow, flashing a caution signal for the past two weeks. But the most recent Red signals should give any investor pause. The two largest stocks in the Mag 7, Apple (AAPL) and Nvidia (NVDA), entered Red Zones last week. Eric says this rotation – out of the dominant tech names and into physical infrastructure plays – is just getting started. And he’s pointing to the April 24 earnings window when Microsoft, Meta, Alphabet, Amazon, and Apple all report quarterly results. Due to the recent commitments to spend collective hundreds of billions of dollars on AI infrastructure, investor expectations are high. Any hint of supply constraints or a slowdown of the AI buildout could send these stocks plummeting. The situation we’re in today reminds me of a story Eric recently told me about networking firm Cisco (CSCO) back during the dot-com bubble. He recommended selling Cisco on Oct. 10, 2000, near its peak. The stock fell more than 80% over the next two years and didn’t recover its 2000 high until this year. He isn’t saying we’re looking at such a painful setup today – just that there are plenty better opportunities out there. I know I’ve been pushing it hard this week. But if you want to hear him lay out his full case for why you need to follow the latest market rotation, his FutureProof 2026 replay is the right next step. Eric doesn’t just talk through his thesis. He also shares – for free – the 15 tickers he’s watching ahead of the April 24 tech earnings window. Go here to watch it now while it’s still online. And if you still aren’t convinced, stay tuned for my exclusive interview with Eric coming out this weekend. There you’ll hear straight from the source why Eric is pounding the table on this idea and why he thinks now is the time to ditch the Mag 7. To building wealth beyond measure, 
Michael Salvatore
Editor, TradeSmith Daily Disclosure: Michael Salvatore held shares of Alphabet (GOOGL) at the time of this writing. | 
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