These Big-Name Stocks Aren't Booming

Editor's note: The tech-heavy Nasdaq has had a strong start to the year, up an incredible 31%. Many individual tech stocks have done even better... Nvidia (NVDA), up nearly 200%... Meta Platforms (META), up 120%... and Apple (AAPL) and Amazon (AMZN) each up almost 50%. But as our friend Pete Carmasino – chief market strategist […] Not rendering correctly? View this e-mail as a web page [here](. [Empire Financial Daily] Editor's note: The tech-heavy Nasdaq has had a strong start to the year, up an incredible 31%. Many individual tech stocks have done even better... Nvidia (NVDA), up nearly 200%... Meta Platforms (META), up 120%... and Apple (AAPL) and Amazon (AMZN) each up almost 50%. But as our friend Pete Carmasino – chief market strategist of our sister company Chaikin Analytics – explains in today's essay, the move higher in tech stocks is exactly why investors should focus on sector performance. And that's one reason why Chaikin Analytics founder Marc Chaikin says [what's coming next in the markets]( could lead to 300% gains... --------------------------------------------------------------- These Big-Name Stocks Aren't Booming By Pete Carmasino --------------------------------------------------------------- [This could be the biggest breakthrough since the Internet]( Google did it with search... Amazon did it with retail... Netflix did it with streaming... And Apple did it with the iPhone. And now, one little-known company is following the same playbook with the most disruptive technology since the Internet. And according to the man who's known by many on Wall Street as a stone-cold moneymaker... this obscure company is soon going to be the to be the talk of 2023. In fact, he's put together a brand-new presentation detailing this opportunity in full. [See it here before it goes offline](. --------------------------------------------------------------- Not all sectors are created equal... We tend to ask ourselves what "the stock market" is doing... But the performance of the major indexes doesn't always match up with every individual sector or company. Everything doesn't go up or down at the same time. Consider the Dow Jones Industrial Average, for example... This famed index is how most folks check the health of blue-chip companies across various sectors and industries. It tracks 30 of the largest businesses in the U.S. – including UnitedHealth (UNH), Microsoft (MSFT), Goldman Sachs (GS), McDonald's (MCD), and Home Depot (HD). So far this year, the Dow is lagging the S&P 500 Index. And its underlying health looks underwhelming. Let's take a closer look at what that means today... We'll start with the Dow's underperformance in 2023. It's easy to see on a chart... The Dow is up around 3% in 2023. Meanwhile, the S&P 500 is up about 13% over the same span. Keep in mind that the Dow only represents 30 companies. It tracks a more specific segment of the market than the S&P 500 – the so-called "blue chips." So it's easier for the Dow to diverge from time to time. That might seem obvious, but it can lead to a big performance difference if some of those stocks struggle... Our Power Gauge system at Chaikin Analytics – a tool we use that gathers investment fundamentals into a simple rating – has picked up on this. It's "very bullish" on the S&P 500. But it's less enthusiastic about the blue chips... While it has turned "bullish" on the Dow, only 10 of the 30 stocks in the index earn a "bullish" or better rating. Most of its holdings are still in "neutral" territory. And several stocks in the Dow are performing poorly today. For example, Walgreens Boots Alliance (WBA) is down roughly 15% this year. And the Power Gauge is currently "bearish" on the company. --------------------------------------------------------------- Recommended Link: [Is this the 'perfect battery' for electric vehicles?]( It's safer... 61% cheaper... and nearly five times longer lasting... than the lithium-ion batteries you will find in most electric cars today. Experts call it "the next holy grail for EVs" and predict that it will "go global" and "take over as the standard EV battery." [Here's how to play it](... --------------------------------------------------------------- On the flip side, the Nasdaq 100 Index is the real star of 2023... This index includes 100 of the largest nonfinancial companies on the Nasdaq stock exchange. It's focused on technology, growth, and innovation. So it's a way for us to know how these types of companies are doing at any given time. As you can see in the following chart, the Nasdaq 100 is crushing the S&P 500. It's up more than 35% this year. Take a look... We're clearly seeing a big disparity in the stock market this year. And again, it boils down to one thing... Sector performance. We live in a world that relies more and more on the latest digital and technological innovations. And the Nasdaq 100's performance shows that investors are buying back into the high-growth potential of these businesses right now. But the big blue-chip stocks you would expect to soar in a market rally are moving slower. Investors like us need to keep both these market trends in mind... As we head into the second half of the year, it's clear that technology is leading the way. And other corners of the market are performing much worse. It's a simple yet powerful observation. And it will help us pinpoint the most attractive opportunities today. Regards, Pete Carmasino June 14, 2023 --------------------------------------------------------------- Editor's note: Pete's colleague Marc Chaikin has found a "300% backdoor" in the market that allows you to see where the biggest Wall Street firms are putting their money, for the chance to get in BEFORE their transactions are completed... and make 3 to 5 times your money. Get the full story – and the name and ticker symbols of one stock to buy and one to avoid – [right 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. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Empire Financial Research, 1125 N. 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