The Power Gauge's Top Sector Still Scares Many Investors Today

By 2010, the market was well into its recovery... The benchmark S&P 500 Index bottomed all the way back in March 2009. [Chaikin PowerFeed]( The Power Gauge's Top Sector Still Scares Many Investors Today By Marc Chaikin, founder, Chaikin Analytics By 2010, the market was well into its recovery... The benchmark S&P 500 Index bottomed all the way back in March 2009. It was up more than 75% by late April 2010. And the economy was clearly moving on to its next chapter as well... The Federal Reserve was busy holding interest rates near record lows. In turn, those actions would inflate one of the greatest asset bubbles in modern history. It was the bull market. And the 2008 financial crisis was in the rearview mirror... to an extent. Folks, this is the important part... Even with the market up more than 75% and a recovering economy, many people still feared the worst. Then, a roughly 16% correction through July 2010 sent the media into a frenzy. At that point, the term "double-dip recession" returned to the front of everyone's minds... [Chaikin PowerFeed] Please keep that point in mind when I show you the most "bullish" sector in the Power Gauge right now. Put simply, this sector scares people – and with good reason, too... The sector was the poster child for the market's wipeout in 2022. And even today, we're still hearing about layoffs from many of its largest companies. But as I'll explain, those fears are overblown once again... Recommended Links: [Wall Street Veteran: "How I invest 80% of my own money"]( "I'm very private and I almost NEVER talk about my own finances. But this is a critical moment. For the market. And for the retirement outlook of millions of Americans. So, I'm coming forward to share my No. 1 strategy ever. The one I've never wavered from personally in more than 40 years. It's a low-risk way to collect huge income, without anything complicated." [Go here for full details](. [Gold Is SOARING... Here's the No. 1 Move to Make]( As overall market volatility continues, the world's financial elite have started piling into the safety and security of gold. But if you're not taking advantage of a little-known way to invest for around $5 today, you're missing out. [Click here for full details](. If you haven't guessed already, I'm talking about the technology sector. Seriously. Technology is the most "bullish" sector in terms of the Power Bar ratio today. Take a look... [Chaikin PowerFeed] Specifically, this is the Power Bar ratio for the Technology Select Sector SPDR Fund (XLK). Regular readers know this exchange-traded fund ("ETF") is one of our broad measures for tech stocks. At a glance, the Power Bar ratio shows the Power Gauge ratings of all the stocks in the ETF. And as you can see, most of the stocks are "bullish" or better today – 46 to be exact. Meanwhile, only five of XLK's holdings currently earn "bearish" or worse rankings. That Power Bar setup puts XLK in the No. 1 spot among all 11 top-level market sectors. But if you're like many investors, you probably don't want to hear me say that today... After all, the tech sector was the focal point of a lot of recent investing pain. Folks who bought shares of XLK near the December 2021 top and panicked out near the October 2022 bottom lost as much as 34%. And that was just the sector ETF. Many investors were overweight in the riskiest tech-related positions – and suffered worse... Massive tech-related companies like electric-car maker Tesla (TSLA) and Facebook owner Meta Platforms (META) lost more than 60% in 2022. And now, despite six months of upward momentum in tech stocks, many investors are still looking for the next "double dip." This is a classic investing error... Many investors worry about what hurt them the last time – no matter how unlikely it is. And more often than not, these fears keep them on the sidelines as the next boom unfolds. Will it be smooth sailing for tech stocks from here? Of course not... Corrections are normal. And volatility happens as the market shakes off a crisis. But regular readers know we've seen "bullish" signs in the market for months. And now, the Power Gauge is telling us the tech sector in particular is flush with opportunity... Will you use it to help you find that opportunity? Or is the fear of the double dip keeping you on the sidelines? Don't make this classic investing error today. Good investing, Marc Chaikin Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 +0.32% 9 18 3 S&P 500 +0.10% 132 290 77 Nasdaq -0.06% 44 45 11 Small Caps +1.10% 384 1020 482 Bonds -1.61% — According to the Chaikin Power Bar, Small Cap stocks remain somewhat more Bearish than Large Cap stocks. Major indexes are mixed. * * * * Sector Tracker Sector movement over the last 5 days Utilities +3.66% Health Care +1.97% Communication +1.01% Real Estate +0.70% Staples +0.37% Financial -0.47% Energy -1.03% Information Technology -1.18% Materials -1.43% Discretionary -1.72% Industrials -2.66% * * * * Industry Focus Regional Banking Services 0 76 68 Over the past 6 months, the Regional Banking subsector (KRE) has underperformed the S&P 500 by -40.61%. Its Power Bar ratio, which measures future potential, is Very Weak, with more Bearish than Bullish stocks. It is currently ranked #21 of 21 subsectors. Indicative Stocks [rating] HMST HomeStreet, Inc. [rating] AMTB Amerant Bancorp Inc. [rating] CFFN Capitol Federal Fina * * * * Top Movers Gainers [rating] WDC +8.22% [rating] MU +8.04% [rating] PXD +5.79% [rating] BBWI +5.29% [rating] SCHW +4.80% Losers [rating] MKTX -2.21% [rating] CAG -2.11% [rating] INCY -2.09% [rating] CBOE -2.08% [rating] EXPE -2.06% * * * * Earnings Report Reporting Today Rating Before Open After Close ACI KMX No earnings reporting today. Earnings Surprises [rating] PSMT PriceSmart, Inc. Q2 $1.05 Beat by $0.16 * * * * 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. Please note: The law prohibits us from giving personalized investment advice. © 2023 Chaikin Analytics, LLC. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Chaikin Analytics, LLC. 201 King Of Prussia Rd., Suite 650, Radnor, PA 19087. [www.chaikinanalytics.com.]( Any brokers mentioned constitute a partial list of available brokers and is for your information only. Chaikin Analytics, LLC, does not recommend or endorse any brokers, dealers, or investment advisors. Chaikin Analytics forbids its writers from having a financial interest in any security they recommend to our subscribers. All employees of Chaikin Analytics, LLC (and affiliated companies) must wait 24 hours after an investment recommendation is published online – or 72 hours after a direct mail publication is sent – before acting on that recommendation. This work is based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors, and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.