2023 is going to be GREAT (here’s why)

It's no secret to anyone that the technology sector is getting pummeled... But the worst might not be over yet.

This Tech Titan Is Signaling a 16% Move Lower By Pete Carmasino, chief market strategist, Chaikin Analytics It's no secret to anyone that the technology sector is getting pummeled... But the worst might not be over yet. You see, one technical pattern keeps popping up on the tech sector's chart. And it's creating an ominous warning signal for this group of stocks. It gets worse... The tech sector as a whole isn't the only thing signaling this pattern today. The same pattern is evident on the chart of one of the top holdings in the Technology Select Sector SPDR Fund (XLK), too. It's a dangerous one-two punch for anyone looking at tech stocks today. Let's get into the details... Recommended Links: January 12 will change everything The man who predicted the 2022 crash a day before it began now predicts the market will soon see a massive move in 2023. It could be a turning point for millions of Americans. But if you know what's coming, you could double your money 10 different times, without buying a single stock, as he's shown before in similar conditions. Click here to learn more. The #1 Gold Play for 2023 Some of the richest men in the world are jumping into gold right now... because evidence suggests we could see MUCH HIGHER prices in the coming weeks. But if you're not taking advantage of a little-known way to invest for around $5 today, you're missing out. Click here for full details. We'll start with the chart of the Technology Select Sector SPDR Fund. As its name implies, this exchange-traded fund ("ETF") represents the technology sector within the S&P 500 Index. The following chart shows XLK's performance since the middle of 2019. You'll also notice the lines that I use to build this pattern – which is called a "head and shoulders" pattern. Take a look... Now, this chart might look complicated at first. But in reality, the math is simple... Start with the down-trending line on the chart (the "neckline"). Then, measure the peak of the "head" in the pattern from the neckline. XLK's head peaked at around $151 per share in August. And the price at the neckline is about $123 per share. That's a $28 spread. Now, subtract $28 from the neckline's $123 to get the downside target. It's $95 per share. In other words, using the traditional head-and-shoulders pattern, XLK is signaling that another massive fall might be just around the corner. It could fall another 23% from here. Interestingly, that fall lines up perfectly in the middle of the range that XLK created back at the start of 2020 and the pandemic lockdowns. That's the gray box I added to the above chart. Regular readers might know where I'm going next... One of the top two holdings in XLK is Microsoft (MSFT). It makes up roughly 21% of the fund, which is about the same as consumer-electronics maker Apple (AAPL). Let's look at Microsoft's chart... Notice the similar head-and-shoulders pattern. In Microsoft's case, the neckline spread is $53 per share (roughly $292-per-share peak at the head minus the neckline at around $239 per share). Using the same math, you would take $53 from the neckline price of $239 to find the downside target. That's roughly $186 per share – or about 16% below its current price. Where would that type of drop put the stock? It would be right in the range of early 2020 – essentially where XLK is also pointing. Now, that's not too surprising. After all, as I said, Microsoft makes up about 21% of XLK. So it makes sense that they would feature similar setups. But folks, the message here is clear... The fall throughout 2022 from outrageous valuations doesn't necessarily mean tech stocks are now "normally priced." The worst part of the storm isn't over for these stocks just yet. The market is in a re-valuation phase right now. And the main issue is that these stocks' prices have dropped... but earnings estimates haven't. If these stocks' prices are the so-called "canary in the coal mine," then earnings will come down next. And that could mean these stocks' prices will drop even further. Also, remember that interest rates are rising. And the experts are calling for additional rate hikes from the Federal Reserve this year. That's not good news for tech stocks. In the end, the warning signal from the head-and-shoulders pattern makes perfect sense. Good investing, Pete Carmasino Market View Major Indexes and Notable Sectors     # Hld:     Bullish     Neutral     Bearish Dow 30 -0.99% 9 20 1 S&P 500 -1.11% 110 274 113 Nasdaq -1.56% 24 50 26 Small Caps -1.08% 437 1004 452 Bonds +0.42% Energy +1.82% 3 20 0 — According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks are somewhat Bearish. Major indexes are mixed. *  *  *  * Top Movers Gainers LW +9.77% WDC +6.60% VLO +5.83% MPC +4.66% WBD +4.62% Losers STZ -9.72% NOW -6.99% SHW -6.73% EPAM -6.48% CZR -6.43% *  *  *  * Earnings Report Reporting Today Rating Before Open After Close No earnings reporting today. Earnings Surprises STZ Constellation Brands, Inc. Q3 $3.17 Beat by $0.36 CAG Conagra Brands, Inc. Q2 $0.57 Beat by $0.05 WBA Walgreens Boots Alliance, Inc. Q1 $1.16 Beat by $0.02 *  *  *  * Sector Tracker Sector movement over the last 5 days Communication +3.38% Financial +0.93% Discretionary -0.34% Industrials -0.39% Materials -0.68% Energy -1.14% Real Estate -1.23% Health Care -1.38% Staples -1.48% Utilities -2.22% Information Technology -2.75% *  *  *  * Industry Focus Pharmaceuticals Services 7 25 10 Over the past 6 months, the Pharmaceuticals subsector (XPH) has underperformed the S&P 500 by -5.47%. Its Power Bar ratio, which measures future potential, is Weak, with more Bearish than Bullish stocks. It is currently ranked #12 of 21 subsectors and has moved up 1 slot over the past week. Indicative Stocks EOLS Evolus, Inc. ARVN Arvinas, Inc. RVNC Revance Therapeutics *  *  *  * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, click here. You're receiving this e-mail at diansastroxz.forex@blogger.com. For questions about your account or to speak with customer service, call +1 (877) 697-6783 (U.S.), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. Please note: The law prohibits us from giving personalized investment advice. © 2023 Chaikin Analytics, LLC. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Chaikin Analytics, LLC. 201 King Of Prussia Rd., Suite 650, Radnor, PA 19087. www.chaikinanalytics.com. 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