You Won't Believe How One 'Very Bearish' Sector Pairs With a 'Very Bullish' One

Folks, a serious divergence is happening in the market right now. And it's one that most investors aren't paying attention to. [Chaikin PowerFeed]( You Won't Believe How One 'Very Bearish' Sector Pairs With a 'Very Bullish' One By Vic Lederman, editorial director, Chaikin Analytics Folks, a serious divergence is happening in the market right now. And it's one that most investors aren't paying attention to. After all, tech stocks have dominated the investing narrative over the past few years. We're seeing that play out this year, too. Despite recent turmoil, the Technology Select Sector SPDR Fund (XLK) has soared an incredible 40% over the past year. That outpaces the S&P 500 Index's 28% return over the same time frame. And that makes it the top-performing sector in the Power Gauge over the past year... You see, our one-of-a-kind system ranks 11 top-level market sectors. It also ranks 20 subsectors. And right now, something unusual is going on in the market. That's because a high-performing subsector is closely related to a poor-performing top-level sector. Let's take a closer look... Recommended Links: ["A New Wave of Crashes Will Rock the U.S. Stock Market"]( We're about to witness a historic stock market shakeup that could soon create devastating losses for some investors... while potentially sending a specific group of stocks up 100% or more in six weeks or less. Until midnight tonight, [click here to learn more]( (includes two free tickers). [The sneaky (yet 100% legal) way for Obama to return to power]( The ONLY way Democrats can keep the White House is to bring back Barack Obama. And there's a sneaky (yet 100% legal) way to achieve this. In fact, this disaster scenario is already underway. See what they're up to, and how you can get ready today. [Here's the full video exposé](. If you haven't guessed already, today we're looking at the real estate sector and the homebuilders subsector. That's right – the homebuilders subsector is the best-performing subsector over the past 12 months. The SPDR S&P Homebuilders Fund (XHB) rose more than 50% over that time frame. That's an incredible result for such a niche subsector. But here's the thing... The top-level real estate sector is telling an incredibly different story. The Real Estate Select Sector SPDR Fund (XLRE) isn't even up 10% over the past 12 months. That makes the real estate sector one of the worst-performing sectors in the Power Gauge over the past year. Take a look at XHB and XLRE together on a chart. [Chaikin PowerFeed] As you can see, it's a big gap. And it's one that has only widened this year. In fact, XHB is up roughly 15% so far this year. Over the same time frame, XLRE has lost roughly 3%. And looking ahead, XHB is rated "very bullish" in the Power Gauge. Meanwhile, XLRE has a "very bearish" rating. That's about as dramatic as it gets. Now, regular Chaikin PowerFeed readers will already know some of the "why" behind this. [Back in January]( Marc Chaikin warned readers to "expect the housing market to stay tight." And as he also explained... The annual rate of new single-family homes sold in the country is around 590,000 (as of November). That might sound like a lot at first. But... it's well below most of the 1990s and 2000s – and even most of the 1980s. Put simply, the U.S. is still facing a housing shortage. And that means that homebuilders have a massive tailwind behind them. But when it comes to "real estate" as a whole... it's a different story. The reality is that the pandemic is still causing a "hangover" in commercial real estate. Occupancy is still below "normal" levels. And that means that commercial buildings are producing less income than investors expected them to. That's terrible for companies with exposure to commercial real estate. And it's why we're seeing the top-level real estate sector continue to stumble. Folks, the takeaway from all of this is simple... The homebuilders subsector and the real estate sector may sound like they go hand in hand. But they're dramatically different segments of the market. And they help illustrate that there's nearly always an opportunity – or something to be wary of – hiding somewhere. I'll be using the Power Gauge to help me find the opportunities. And I'll also use it to help me avoid the traps. Good investing, Vic Lederman Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 +0.94% 7 21 2 S&P 500 +1.23% 148 296 52 Nasdaq +1.56% 27 58 15 Small Caps +1.2% 565 1008 327 Bonds +1.36% Information Technology +2.25% 24 35 6 — According to the Chaikin Power Bar, Large Cap stocks and Small Cap stocks are Bullish. Major indexes are mixed. * * * * Sector Tracker Sector movement over the last 5 days Real Estate +4.75% Information Technology +4.0% Utilities +3.22% Health Care +2.9% Financial +1.98% Communication +1.56% Materials +1.44% Industrials +1.28% Staples +1.02% Energy +0.83% Discretionary +0.62% * * * * Industry Focus NYSE Technology Services 16 15 4 Over the past 6 months, the NYSE Technology subsector (XNTK) has outperformed the S&P 500 by +4.71%. Its Power Bar ratio, which measures future potential, is Very Strong, with more Bullish than Bearish stocks. It is currently ranked #7 of 21 subsectors and has moved up 1 slot over the past week. Top Stocks [rating] GOOGL Alphabet Inc. [rating] QCOM QUALCOMM Incorporate [rating] AMAT Applied Materials, I * * * * Top Movers Gainers [rating] SMCI +15.81% [rating] DHI +6.47% [rating] MKTX +6.11% [rating] NOW +5.4% [rating] IDXX +5.26% Losers [rating] ALB -5.82% [rating] WBD -4.21% [rating] SOLV -4.09% [rating] FMC -3.55% [rating] HAS -2.69% * * * * Earnings Report Reporting Today Rating Before Open After Close DE AMAT WMT CPRT TTWO No earnings reporting today. Earnings Surprises [rating] PGR The Progressive Corporation Q1 $3.76 Beat by $0.54 [rating] CSCO Cisco Systems, Inc. Q3 $0.87 Beat by $0.03 [rating] DT Dynatrace, Inc. Q4 $0.30 Beat by $0.03 * * * * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, [click here](. You’re receiving this e-mail at {EMAIL}. For questions about your account or to speak with customer service, call [+1 (877) 697-6783 (U.S.)](tel:18776976783), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. 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