Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Stocks

Breadth In The Markets Is Expanding – But Can The Markets Withstand The Drop In Big Tech Names?

by October 27, 2022
October 27, 2022
Breadth In The Markets Is Expanding – But Can The Markets Withstand The Drop In Big Tech Names?

Today we saw a large decline in mega cap names Microsoft (MSFT) and Alphabet (GOOGL) after both companies reported earnings and sales that were well below estimates. Citing a strong dollar and high inflation among other factors, both companies warned of slower growth going forward amid a tough environment.

Adding to the woes among Large Cap tech, Meta Platforms (META) came in with earnings and sales below estimates after the market’s close today, and the stock is getting clobbered after hours.

Large Cap Technology stocks have led the last several bull market cycles and a loss of this leadership may be difficult to overcome.

That said, there are bright spots emerging within the markets this week. I use a service that breaks the market down into 197 Industry Groups and of those, 85% outperformed the markets today. 

Among the outperformers were Energy, Healthcare and select areas of Retail to name a few, and the gains were driven by earnings that were above estimates. In addition, Real Estate and Utility stocks are coming back to life as well, with gains that are setting them up to reverse their downtrends.

DAILY CHART OF HEALTH CARE SECTOR (XLV)

The gains in these non-Tech areas are helping to strengthen breadth in the markets, with the percent of stocks above their 50-day moving averages steadily rising. While this is good news, it’s important to note that the rally stage that began in the markets last Friday is part of a bear market. In other words, we have not seen the characteristics necessary to call a market bottom.

I outline these needed characteristics regularly in my twice weekly MEM Edge Report, and a slowdown of inflation is among them. With that, I’m participating in this rally with select Energy and Retail stocks that are outperforming however, it’s with caution.  If you’d like access to this select List of buy ideas, use the link below.  You’ll also be alerted to new names as they’re added as well as being provided with exit strategies.

I have actively advised professional money managers through several bear markets and with the current tricky period, I hope you’ll take advantage of my special trial offer below.

Warmly,

Mary Ellen McGonagle, MEM Investment Research

0
FacebookTwitterGoogle +Pinterest
previous post
Internet Reactions Following Elon Musk’s Wednesday Visit to Twitter Headquarters are Priceless
next post
It’s Happening! International Banks Begin Moving Billions in Cash for Elon Musk’s Purchase of Twitter

You may also like

The Case for a Tactical Stock Selloff

January 17, 2024

Five Must-Have Tools for Analyzing Stock Charts

November 26, 2024

Three Concerning Signs for Stocks

February 10, 2023

Sector Spotlight: The Story of ARGoN (Acampora’s Relative...

September 16, 2023

What Are The Chances Of A Market Crash?...

November 26, 2023

What the Federal Reserve Doesn’t Do, The Bond...

October 5, 2023

How to Use ADX to Find Tops

June 8, 2023

Stock Market Pushes Higher, But Is There a...

June 13, 2024

Small Caps Poised to Soar: Is Now The...

August 1, 2024

Markets Flip as Earnings Season Heats Up

July 22, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump celebrates Supreme Court limits on ‘colossal abuse of power’ by federal judges

      June 27, 2025
    • Second Amendment ‘setback’: Gun tax cuts stripped from Trump’s ‘big, beautiful bill’

      June 27, 2025
    • Don’t Give Big Businesses Immunity from Litigation

      June 27, 2025
    • Unmasking Medicaid Money-Laundering Schemes: Medicaid Financing Gimmicks 101

      June 27, 2025
    • Top moments from the Trump-Biden debate that changed the course of the 2024 election

      June 27, 2025
    • Trump exerted ‘maximum pressure’ on Iran and Israel to ‘deliver peace’: Leavitt

      June 27, 2025

    Categories

    • Business (8,329)
    • Investing (2,077)
    • Politics (15,831)
    • Stocks (3,173)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved