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

GNG TV: Finding Outperformance in Choppy Markets

February 16, 2023

Week Ahead: NIFTY May Stay Tentative In The...

June 25, 2023

Be Ready for the Next Bull Market, Part...

November 16, 2022

Trade War Panic: Are International Stocks the Safer...

March 4, 2025

Who will Win the Battle for the 200-day...

November 4, 2023

Put/Call Ratio Is Telling Bears to Watch Out!

December 29, 2022

If This is a Bull Market, The Dip...

February 6, 2023

Will Catalysts Push Markets HIGHER or Drag Them...

January 31, 2024

Will the Generals follow the Troops?

March 24, 2023

Q4 Stock Market Outlook: 3 Analysts, 3 Insights

September 18, 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 warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,568)
    • Stocks (3,136)
    • 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