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Additional Reading from MarketBeat Media
Follow the Flow: 3 Stocks Absorbing the Market's Biggest RotationReported by Bridget Bennett. Posted: 4/26/2026. 
Key Points
- Larry Benedict sees money rotating hard into Mag 7 stocks, with NVIDIA leading the charge after bouncing roughly 44% off its recent lows in just two weeks
- Benedict favors D.R. Horton as a play on anticipated Fed leadership change and a potential interest rate cycle shift that could reignite housing demand
- Oracle stands out as Benedict's top software pick: still well off its all-time highs despite a strong recent rally, with AI infrastructure contracts potentially undervalued by the market
- Special Report: Elon Musk: This Could Turn $100 into $100,000
Market volatility tends to scatter investors—but it doesn't destroy money. It simply moves it. Right now, Larry Benedict, founder of The Opportunistic Trader and a 40-year market veteran, says he's watching a clear rotation into three sectors, with a handful of stocks absorbing the bulk of those flows. The backdrop is a market that has done something genuinely unusual. After weeks of turbulence, the Nasdaq rallied roughly 20% off its lows while the S&P gained about 12–13%—one of the sharpest recoveries Benedict says he's seen in four decades. Yet he's not ready to call a new bull run. "I think we're nearer the top end of the range," he says, pointing to persistent geopolitical uncertainty, energy prices, and lingering questions about the path for interest rates. He's not ultra-bearish—but he is watching risk.
When the SpaceX IPO launches, most retail investors will be locked out. The banks, funds, and insiders get in early - while everyone else waits on the sidelines.
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That caution is exactly what's driving his sector focus. NVIDIA Leads the Mag 7 SurgeThe first and loudest rotation Benedict is tracking is into the Magnificent 7—Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Alphabet (NASDAQ: GOOGL), NVIDIA (NASDAQ: NVDA), Amazon (NASDAQ: AMZN), Meta (NASDAQ: META), and Tesla (NASDAQ: TSLA). These names, which struggled for much of the early year, absorbed a massive wave of inflows during the recent rally and powered the Nasdaq higher. The standout is NVIDIA. Benedict watched the stock fall from around $185 to roughly $165 at its low, then recover to over $200 in just two weeks—adding trillions of dollars in market cap at a pace he describes as unlike anything he's seen. "That's the big one," he says. "That's the one that's outperforming everything." With Mag 7 earnings still ahead—NVIDIA typically closes out the season—Benedict expects results to be solid enough to support prices, though he cautions the following quarter may begin to reflect economic headwinds. For now, the bulls are in control, and he's not fighting that momentum. D.R. Horton and the Rate-Driven Housing SetupThe second sector seeing real money flow is housing—and Benedict's view here is longer-term than recent momentum suggests. He believes the market is underweight a significant catalyst: a likely change in Federal Reserve leadership. With Kevin Warsh widely expected to be the next Fed chair, Benedict anticipates a shift toward lower interest rates that could unlock pent-up housing demand. "I think that will cause a boom in the housing market," he says. From his vantage point in South Florida, where he's watched 20 new high-rises go up in his town alone, the demand isn't theoretical—it's tangible. His preferred vehicle is D.R. Horton (NYSE: DHI), the largest-cap homebuilder. The logic is simple: when expressing a sector view, he wants the biggest, most liquid name. DHI captures the housing thesis cleanly without the idiosyncratic risk of smaller builders. He acknowledges supply-chain pressures could create headwinds, but believes the demand response to lower rates will more than offset those challenges. Oracle: The Software Sector's Undervalued ReboundThe third area—and the one Benedict seems most energized about—is enterprise software, specifically Oracle (NYSE: ORCL). While the Mag 7 have largely reclaimed their losses, Oracle remains far from its all-time highs despite a meaningful bounce off its lows. That gap is the opportunity, in Benedict's view. Oracle's AI infrastructure deals—including significant contracts tied to OpenAI—were the catalyst for its earlier run toward near-trillion-dollar market-cap territory. When sentiment turned and the market grew skeptical about AI CapEx, Oracle pulled back hard. Benedict thinks that skepticism went too far. "The market has misjudged what these companies can actually do," he says. He sees Oracle competing in the same AI infrastructure arena as the Mag 7, but priced as if it isn't. Compared with fully valued Magnificent 7 names, software stocks like Oracle have more room to run—even if the path is volatile. The risk is real: if the broader market corrects, software won't be immune. Benedict is candid about the longer-term AI monetization question, noting that no one knows exactly how it will play out—he keeps the dot-com era as a cautionary reference. But for investors willing to hold through volatility, Benedict sees the most asymmetric upside in software: stocks that are beaten down, under-owned, and sitting on legitimate AI revenue relationships. The money is moving. The question is whether you're positioned in front of it or watching from behind. |
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