4/13/2026
By Charles Payne, CEO & Principal Analyst

Strong Week for Mag Seven

As I wrote in the Hotline commentary last week, I think “Mag Seven” is ready to make a monster move higher. Although we all know they are not a monolith, I suspect they all have some upside through 2027. The biggest question mark right now is Microsoft (MSFT), which struggled the most as the software (IGV) meltdown hit this giant.

The ‘Price is Right,’ and so is the time. These stocks are cheap based on the quality of earnings and long-term visibility.

Premium is gone

Technology (XLK) has enjoyed a significant premium against the S&P 500 (SPX) for so long that it's hard to forget that it's vanished. Ironically, the value proposition has improved. Meanwhile, implied volatility of the S&P 500 has also declined markedly. Everyone should be spying on outsized positions inTechnology. 

The Ultimate “Buy Signal?”

Insider buying is a good sign; it has always been. Insiders buying in size is an even bigger plus, but it's not always a “buy signal.” Insiders of software stocks have bought hundreds of millions in shares while announcing major company buybacks, only to watch those stocks sink like boulders. Still, I like that executives are putting their money where their interests are, especially in falling boulders.

New Paradigm

UBS Group AG (UBS) posted a chart underscoring that each tech boom generated higher returns on investment than the previous one. The artificial intelligence (AI) boom is here, and should follow the same path.

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Charles Payne
Wall Street Strategies