The Uptrend in Tech Stocks Is Back

Editor's note: This week in the Empire Financial Daily Weekend Edition, we're sharing an essay from our friend and colleague Marc Chaikin – founder of our corporate affiliate Chaikin Analytics... Marc spent decades on Wall Street as a trader, stockbroker, analyst, and the head of the options department for a major brokerage firm. He developed […] Not rendering correctly? View this e-mail as a web page [here](. [Empire Financial Daily Weekend] Editor's note: This week in the Empire Financial Daily Weekend Edition, we're sharing an essay from our friend and colleague Marc Chaikin – founder of our corporate affiliate Chaikin Analytics... Marc spent decades on Wall Street as a trader, stockbroker, analyst, and the head of the options department for a major brokerage firm. He developed computerized stock selection models and technical indicators that have become industry standards, and he pioneered the first real-time analytics workstation for portfolio managers and stock traders. With Chaikin Analytics, Marc uses his Power Gauge system to deliver these analytics to everyday investors and traders... And in today's essay, he explains how the Power Gauge is showing opportunity in one particular sector of the market. Here's Marc... --------------------------------------------------------------- The Uptrend in Tech Stocks Is Back By Marc Chaikin --------------------------------------------------------------- [Google, Amazon, Facebook, and Walmart are betting billions on this]( When the Internet came along, most people had never even heard of Google, Amazon, and Facebook. But by becoming early adopters and taking full advantage of the Internet, they became household names. Now, the same companies are among the early movers in a brand-new trend that's expected to deliver a knockout punch to a $3.4 trillion industry and potentially disrupt up to $100 trillion worth of global assets. [Get the full details here](. --------------------------------------------------------------- []The tech wreck... the tech crash... tech may never be the same... Going back to last year, phrases like those have dominated the mainstream media. Now, we're in the midst of a banking crisis. And yet, it still connects back to the technology sector. Take a look at this recent headline from Fortune magazine... I get it if you feel like investors no longer favor tech stocks. It's hard not to think that way with headlines like the one above floating around. Despite that, the market is taking a fundamentally different approach... In short, tech stocks are once again outperforming the broad market. And as I'll show you today, they've outperformed for longer than you probably realize. The tech-heavy Nasdaq Composite Index dominates the benchmark S&P 500 Index over the long run. Its outperformance has been incredible since the financial crisis... Since stocks bottomed in March 2009, the Nasdaq is up roughly 820%. And the S&P 500 is up around 480%. The Nasdaq has nearly doubled the S&P 500 over that span. Despite that, the Nasdaq is more volatile. It can underperform significantly at times. And investors in the index have experienced major busts over the years... The latest bust – 2022's tech wreck – was especially painful. Investors who held on from the Nasdaq's peak in November 2021 through late December 2022 would have lost roughly 36%. That's a major decline, especially for investors who panicked out of the market and locked in those losses. So again, I understand if you feel like tech is simply a no-go right now. --------------------------------------------------------------- Recommended Link: [You see this countdown?]( Well, it's counting down to exactly 1 p.m. Eastern time on March 28. And it's all because Whitney Tilson will sit down with someone he's never introduced you to before. But what this man has to say could change your financial future. Here's what to do right now... Bookmark this page: [EmpireBackdoor.com]( and mark your calendar for March 28, at 1 p.m. Eastern time. We'll give you more details as we get closer to the event. --------------------------------------------------------------- But the thing is... that avoid-at-all-costs mentality is out of line with reality. Take a look... Since the start of the year, the Nasdaq has soundly beaten the S&P 500. It's up about 12% over that span. Meanwhile, the S&P 500 is up around 3%. You may not feel like tech is a great investment anymore. But the sector is soaring. And the Power Gauge sees the potential opportunity, too... The Power Gauge is one of our most important tools at Chaikin Analytics. It combines 20 of the most important factors to an asset's performance and distills them into a simple rating: bullish, bearish, or neutral. The Technology Select Sector SPDR Fund (XLK) earns a "very bullish" overall rating right now. That's the benchmark we use as our measure of tech stocks. Plus, XLK is performing even better than the Nasdaq. It's up more than 15% this year. Today, 44 of the rated stocks in XLK earn a "bullish" or better rating from the Power Gauge. And only 6 earn a "bearish" or worse rating. In fact, XLK is one of only two top-level sectors that has maintained its "bullish" rating throughout the most recent downturn. Put simply, the market can change direction faster than the popular narrative does. And right now, tech stocks are leading the charge. That's true even if some folks want you to believe that tech may never be the same. Now, I'm not saying you should rush out and buy tech stocks indiscriminately... After all, 26 stocks in XLK alone sit in "neutral" territory. And don't forget about the 6 stocks with a "bearish" or "very bearish" rating. With that said, the upward trend in tech is well defined right now. The Power Gauge sees specific opportunities in this sector. Don't let the stale narrative surrounding tech stocks get in your way. Regards, Marc Chaikin March 25, 2023 Editor's note: Marc believes we're experiencing a massive market shift that we've only seen a few times since 1950. He says there's just one thing you can do to protect your wealth from this new wave of volatility – and still make multiple times your money in 2023. On March 28, at 8 p.m. Eastern time, he's sharing all the details in a free event... but you must reserve your spot in advance. [You can do so here](. --------------------------------------------------------------- If someone forwarded you this e-mail and you would like to be added to the Empire Financial Daily e-mail list to receive e-mails like this every weekday, simply [sign up here](. © 2023 Empire Financial Research. All rights reserved. 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