The Good God Is in the Detail

French author Gustave Flaubert said it best in the mid-1800s... "Le bon Dieu est dans le détail." Or in English, "The good God is in the detail." The point is... whatever you're talking about or doing, the details are critical. [Chaikin PowerFeed]( The Good God Is in the Detail By Marc Gerstein, director of research, Chaikin Analytics French author Gustave Flaubert said it best in the mid-1800s... "Le bon Dieu est dans le détail." Or in English, "The good God is in the detail." The point is... whatever you're talking about or doing, the details are critical. To show you what I mean, consider these three (seemingly unrelated) recent events... First, in December, the National Highway Traffic Safety Administration started looking into self-driving taxis from a unit of General Motors (GM). Several taxis stopped suddenly without any known reason in San Francisco. And other cars rear-ended them. Second, earlier this month, about 6.5 million people watched the Love Is Blind reunion special on Netflix (NFLX). The problem was that everyone expected a spectacular live event. But a "bug" messed up Netflix's setup. So the plans to go live were scrapped. Folks instead watched a taped event. And finally, I tried to get my Amazon (AMZN) Alexa to read Midaq Alley to me through its Kindle Assistive Reader function. Egyptian Nobel Prize-winning author Naguib Mahfouz wrote this 1947 classic novel. But Alexa couldn't recognize the way I said "Midaq." So after several attempts, I gave up. I opened my mobile app and tapped on a visual icon to read the book instead. It might not seem like it at first. But as I'll show you today, these three recent events are deeply connected. It all comes down to the details – the thing connecting them together. And as you'll see, the details lead us to consider following a secular trend in this space... Recommended Links: [Top Value Analyst: "We Haven't Seen This in 15 Years"]( Very quietly, one of the best value opportunities the market has seen since 2009 has emerged. Multiple opportunities to TRIPLE your money with a specific set of stocks could arrive within the next few months... but millions of investors will likely miss out on it completely. [Click here to learn more](. [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](. In short, I'm talking about the software industry. Blue chips like Microsoft (MSFT), Adobe (ADBE), and Oracle (ORCL) are well-established market superstars. And these days, regular folks use software as routinely as paper towels. But the three recent events I mentioned show us that we can't be complacent. They're all related to various "bugs" within the software. Software is an ever-evolving industry. It's not a "set it and forget it" type of business. And I bet there were a gazillion more bug-related recent events like the ones I mentioned. Just think about all the app updates on your phone. Notice how many cite "bug fixes." Software problems can be much worse than harmless bugs, too. They can be costly – or even deadly... For example, back in the late 1990s, the $165 million Mars Polar Lander probe didn't make its final landing. The likely cause was a software defect that shut off its engines. And in 2018 and 2019, software-usability flaws caused a pair of fatal Boeing 737 Max crashes. Let's face it, folks... Programming is hard. And there's always room for more (and better) moves in this space... Artificial intelligence is barely off the ground. Imagine how much coding, revising, and bug-fixing will happen in the coming decades. The same thing is true with augmented reality. So ultimately, it doesn't matter whether the economy is weakening or not. And it doesn't matter if a lot of companies scrap or tweak their tech projects. Software is here to stay. It will remain hot for years to come. It's a secular growth area. The Power Gauge sees that, too... Today, our one-of-a-kind system rates 274 software companies. Most of these businesses (157) earn "bullish" or better rankings. And only 15 rank as "bearish" or worse. Even better, the Power Gauge is "very bullish" on a software-focused exchange-traded fund ("ETF") today. Here's the breakdown of the SPDR S&P Software & Services Fund (XSW)... [Chaikin PowerFeed] [Unlike some other SPDR ETFs]( XSW isn't heavily concentrated in a few big companies. Industry giants Microsoft, Adobe, and Oracle combine to make up only about 2% of XSW's assets. And large-cap stocks as a whole make up only around 24% of the ETF's portfolio. That's a good sign... Based on history, I suspect the future software leaders are lesser-known names today. So I like XSW's approach. And combining that with its "very bullish" Power Gauge rating is even more encouraging for us as investors. Gustave Flaubert would be proud of us. As he said, "Le bon Dieu est dans le détail." Good investing, Marc Gerstein Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 -1.01% 9 19 2 S&P 500 -1.57% 130 286 83 Nasdaq -1.89% 40 48 12 Small Caps -2.46% 336 1028 520 Bonds +1.47% — According to the Chaikin Power Bar, Small Cap stocks are somewhat more Bearish than Large Cap stocks. Major indexes are mixed. * * * * Sector Tracker Sector movement over the last 5 days Utilities +1.44% Staples +1.17% Health Care +0.05% Real Estate -1.69% Industrials -2.09% Energy -2.17% Financial -2.37% Discretionary -2.53% Materials -2.75% Communication -3.17% Information Technology -3.80% * * * * Industry Focus Health Care Equipment Services 40 34 5 Over the past 6 months, the Health Care Equipment subsector (XHE) has outperformed the S&P 500 by +9.08%. Its Power Bar ratio, which measures future potential, is Very Strong, with more Bullish than Bearish stocks. It is currently ranked #2 of 21 subsectors and has moved up 3 slots over the past week. Top Stocks [rating] AVNS Avanos Medical, Inc. [rating] OSUR OraSure Technologies [rating] UFPT UFP Technologies, In * * * * Top Movers Gainers [rating] BRO +3.19% [rating] CNC +2.41% [rating] FISV +2.38% [rating] PEP +2.27% [rating] CPB +2.21% Losers [rating] FRC -49.38% [rating] MSCI -13.49% [rating] UPS -9.99% [rating] NTRS -9.25% [rating] DHR -8.79% * * * * Earnings Report Reporting Today Rating Before Open After Close BSX, DOV, ETR, HLT, MAS ALGN, ORLY, NOW, AWK, BA, ACGL, TYL, EW WAB, TMO, TDY, OTIS, ODFL, MKTX, HUM, HES, GD, FTV, CME, AVY, AMT, ALLE TER, META, ROL, URI, RJF, WM, RHI, PTC, MOH, KLAC, EBAY, CHRW, APH, AFL ADP, TEL, NSC EQT, PXD, MAA, UDR, AVB No earnings reporting today. Earnings Surprises [rating] ILMN Illumina, Inc. Q1 $0.08 Beat by $0.05 [rating] GE General Electric Company Q1 $0.27 Beat by $0.13 [rating] SPOT Spotify Technology S.A. Q1 $-1.27 Missed by $-0.41 [rating] GM General Motors Company Q1 $2.21 Beat by $0.48 [rating] KMB Kimberly-Clark Corporation Q1 $1.67 Beat by $0.35 * * * * 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.