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| By Jordan Chussler |
Tech has been the biggest comeback story so far this year. After getting battered in 2022, it has outperformed all the other 10 S&P 500 sectors with a nearly 14% year-to-date gain.
That’s resulted in exceptionally strong recoveries for Big Tech companies:
• Amazon.com (AMZN) is up 16% in the past month.
• Netflix (NFLX) has gained 17% over the same time frame.
• Microsoft (MSFT) is up 20% during that period.
• And Meta Platforms (META) has seen its shares rise an astonishing 43% in the past month.
But after the Nasdaq Composite posted gains of 14% through Feb. 2, the index turned sideways this week and started to slip, which could serve as a near-term warning to tech bulls.
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Shortly after breaching its 200-day moving average — the threshold for bull-bear markets — the Nasdaq’s relative strength index broke over 70, which promptly coincided with a pullback.
The last time the index’s RSI broke over 70 on Aug. 16, the Nasdaq proceeded to pullback 22% before hitting its 2022 low.
This year, obviously, isn’t the same as last year. However, despite expecting pullbacks following strong runs, it’s a good reminder for investors to maintain a safety-focused approach, as the market is still deciding when it will definitively show us whether this is the start of a new bull market.
To provide additional clarity on that situation, here are this week’s top stories from our team of editors and analysts.
Buy into the EV Revolution with This Top U.S. Car Brand
When it comes to powering cars, our options are extracting oil to power internal combustion engines or extracting minerals needed to make batteries for EVs. Senior Editor Tony Sagami reports why — in the long run — the latter will win, and he recommends one company poised to profit from that trend.
VIDEO: Market Minute with Kenny Polcari
In his weekly video series, Financial News Anchor Kenny Polcari reports on this week’s market news, including the 50-60 companies that released earnings and the Federal Reserve’s outlook for the remainder of the year.
Startup Investing: Trust the Process
If you’re new to startup investing or want to learn more about it, one of the most important things you can do is to craft a process for picking the best investment. Startup Investing Specialist Chris Graebe provides his three-step method.
Through 2020, the U.S. dollar declined 99% in value against gold. Other currencies, like the British pound and Japanese yen, have done even worse. The yen lost 99.98% of its value against gold in 100 years. Senior Analyst Sean Brodrick explains why he’s bullish on gold and why investors should take note.
Pullback Makes This Big Tech a ‘Buy’
With the rapid expansion of cloud services, investors often overlook Amazon Web Services, but AWS had $20.5 billion in sales during Q2 of 2022 alone. Despite its huge size, revenues are still growing at 33% year over year. Pulitzer Prize winner Jon Markman discusses how Amazon shares are historically underpriced and can be bought into weakness.
S&P 500 Makes a Golden Move — Will it Stick?
With the S&P 500 recently forming a golden cross pattern, Kenny Polcari provides a brief lesson in technical analysis that focuses on moving averages and what they can tell investors about the likely directions of stocks, ETFs or indices.
Until next time,
Jordan Chussler
Managing Editor
Weiss Ratings Daily
