Dear Reader,
WSJ says, "It's the $64 trillion question—will there be a stock market crash soon?" …
Weiss Ratings' research shows the first half of 2026 could be very tough for not all, but certain stocks...
Specifically, a radical shift is about to hit the market …
And it could send some of America's most popular stocks crashing down.
We've identified five stocks you should absolutely avoid as this event plays out …
You'll want to see this list …
And make sure you don't own any of these stocks before the market opens tomorrow …
Because if you hold on to them — it could mean financial ruin.
To find out more about this incoming market shift …
Including the list of five stocks you must absolutely avoid …
Click here now — before it's too late.
Sincerely,
Eliza Lasky,
Weiss Advocate
2 Software Stocks Turning AI Fears Into Fundamental Gains
Author: Dan Schmidt. Article Posted: 5/21/2026.
Key Points
- Fears that AI would devastate software revenue streams have largely failed to materialize, with many companies reporting accelerating sales growth in early 2026.
- Atlassian surpassed fiscal Q3 2026 estimates by wide margins, with AI tool Rovo users generating more than double the ARR of non-users.
- Datadog crossed $1 billion in quarterly revenue for the first time in Q1 2026 and is forming a Golden Cross technical signal, suggesting further upside.
- Special Report: Elon Musk already made me a “wealthy man”
Software stock investors have had plenty of reasons to be bearish lately. New AI agents were expected to cut into valuable software revenue streams, and many analysts were ready to put the “per-seat” business model on life support. But in the months following the software stock meltdown, a funny thing happened: these fears failed to materialize meaningfully in earnings. In fact, many of the companies with supposedly at-risk recurring revenue streams saw sales growth accelerate in the first quarter of 2026, and these stocks are now trading well below their historic valuation levels.
Is it time to nibble on software stocks? Sentiment toward the sector remains very negative, and Morgan Stanley flagged SaaS debt as a concern, noting that 46% of software loans mature over the next four years. But the apocalyptic predictions appear to have been off base, and many software companies now see AI as a tailwind. We’ll focus on a pair of software stocks that suddenly look appealing from both a fundamental and technical perspective.
Software Stocks With Bullish Fundamental and Technical Signals
ALERT: Drop these 5 stocks before the market opens tomorrow! (Ad)
The Wall Street Journal is already raising the alarm about a potential market crash, and Weiss Ratings research points to the first half of 2026 as a particularly rough stretch for certain holdings.
Some of America's most popular stocks could take serious damage as a radical market shift plays out. Analysts at Weiss Ratings have identified five names you may want to remove from your portfolio before this unfolds.
If any of these are in your portfolio, now is the time to review your positions.
See the 5 stocks to avoidThe iShares Expanded Tech-Software Sector ETF (BATS: IGV) is still down more than 10% over the last 12 months, but the downtrend has been neutralized. Strong earnings have already boosted several companies in the space, including large caps like Oracle Corp. (NYSE: ORCL) and Fortinet Inc. (NASDAQ: FTNT). Software stocks are also starting to benefit from the tech sector rotation as investors look to move away from pricey memory and chipmaker stocks without exiting the market entirely. The following two companies both helped put a nail in the “AI will doom software” coffin with their Q1 2026 results.
Atlassian: Cloud Acceleration Blows Up Per-Seat Compression Thesis
One of the companies projected to take a hard hit from AI was Atlassian Corp. PLC (NASDAQ: TEAM), which develops digital tools for workflow management.
And for investors, the pain was real, as the stock is down nearly 60% in the last 12 months. However, the company reported its fiscal Q3 2026 earnings on April 30, and AI is now looking like a tailwind rather than a headwind.
Atlassian easily surpassed Q3 earnings and revenue estimates, with earnings per share (EPS) figures beating expectations by more than 20%. Revenue grew more than 30% year over year (YOY), but the adoption of the AI-powered assistant Rovo is what really had the market turning its head. Millions of users have already adopted Rovo into their Jira or Confluence cloud workflows, and the results have been exceptional: clients using Rovo reported more than double the annual recurring revenue (ARR) of non-users. The stock jumped nearly 30% in the session following the earnings release, which triggered several bullish technical signals.
The bearish momentum had been waning since the end of February, as evidenced by the bullish crossover on the Moving Average Convergence Divergence (MACD) indicator. The MACD continued to show upward momentum through March and April before finally breaking above the histogram following the April 30 earnings pop. The stock now trades above its 50-day moving average for the first time all year, providing a solid technical backdrop to the company’s fundamental strength.
Datadog: Beneficiary of Hyperscaler Workload Outsourcing
Here’s a software stock that’s actually making new all-time highs in 2026. Datadog Inc. (NASDAQ: DDOG) soared more than 30% following its Q1 earnings beat on May 7, and the stock is continuing to creep higher ahead of some technical catalysts.
The company’s Q1 2026 numbers eased any concerns about AI bleeding sales: over $1 billion in quarterly revenue, a first for the company, and an EPS beat of more than 17%. The company is also attracting more lucrative customers as hyperscalers outsource their workloads.
More than 4,500 customers reported annual recurring revenue of $100,000 or more, an increase of more than 20% YOY. Many of these high-value customers are using Datadog’s GPUs to outsource their AI model training environments, generating a massive, resilient revenue stream.
The stock received a wave of price target bumps following the report, including a new Street-high of $305 from Stifel Nicolaus.
DDOG shares have now soared past their previous November high and could soon get a boost from a wave of technical signals. Like TEAM, the MACD hinted at accumulating bullish momentum before the earnings catalyst. Now that the breakout is underway, another technical catalyst is forming: a Golden Cross, which occurs when the 50-day moving average crosses above the 200-day moving average. The Golden Cross is often an “all clear” message for algorithmic traders to open new positions on a stock, so more highs could be on tap for DDOG this summer.
If the Market Rally Stalls, This ETF Can Insulate Portfolios
Author: Jessica Mitacek. Article Posted: 5/28/2026.
Key Points
- The Invesco S&P 500 Equal Weight ETF uses quarterly rebalancing to reduce concentration risk, limiting technology exposure to 19% versus nearly 38% for the SPY.
- RSP carries a beta of 0.92, making it nearly 9% less volatile than the broad market, and it lost less than SPY during the year's earlier selloff.
- Since 1990, the equal-weight index has outperformed the cap-weighted S&P 500 by an annual average of 1% to 1.05%, and RSP's dividend yield of 1.50% exceeds SPY's 0.98%.
- Special Report: Elon Musk already made me a “wealthy man”
After losing nearly 8% during the first three months of the year, the S&P 500 Index has rallied on a renewed AI trade and increasingly bullish investor sentiment. Large- and mega-cap U.S. equities have seen a surge in inflows, helping push the benchmark index up more than 18% since the start of Q2.
Despite the recent turnaround, uncertainty persists. Much of the rally is tied to mega-cap companies benefiting from the memory chip shortage, leaving investors wondering how long the S&P 500’s rally can last. Add in an expanding $1 trillion market cap club and looming initial public offerings (IPOs) from companies like SpaceX and OpenAI, and concentration risk is becoming an increasingly pressing threat to investors’ portfolios.
ALERT: Drop these 5 stocks before the market opens tomorrow! (Ad)
The Wall Street Journal is already raising the alarm about a potential market crash, and Weiss Ratings research points to the first half of 2026 as a particularly rough stretch for certain holdings.
Some of America's most popular stocks could take serious damage as a radical market shift plays out. Analysts at Weiss Ratings have identified five names you may want to remove from your portfolio before this unfolds.
If any of these are in your portfolio, now is the time to review your positions.
See the 5 stocks to avoidEqual-weight exchange-traded funds (ETFs) tracking major indices are having a moment—especially the Invesco S&P 500 Equal Weight ETF (NYSEARCA: RSP), which recently hit an all-time high.
For conservative investors looking to hedge against a potential pullback or stalled rally, here’s how the RSP can help offset the S&P 500’s tech-heavy weightings and their inherent volatility.
The Equal Opportunity Fund for All of the S&P 500 Companies
Given its current weightings, the S&P 500’s 10 largest companies account for around 40% of the index.
For ETFs that use the index as their benchmark, that means 40 cents out of every $1 invested goes to those stocks, with the remaining 60 cents spread across the other 493 stocks. And that’s before the rumored $1.75 billion SpaceX IPO adds another layer of concentration risk.
By contrast, the RSP uses quarterly rebalancing to maintain its equal-weight stance. That means a stock like Micron (NASDAQ: MU)—a more than $1 trillion market cap company with a nearly 840% one-year gain—receives the same treatment as little-known Corning (NYSE: GLW), a $164 billion market cap company with a nearly 280% one-year gain.
Because of that quarterly rebalancing objective, the fund’s portfolio is more evenly—though not equally—balanced among the S&P 500’s 11 sectors.
Technology, which accounts for approximately 35% of the index’s companies, still represents the fund’s largest allocation at more than 19%. By comparison, the market-cap weighted SPDR S&P 500 ETF Trust (NYSEARCA: SPY) allocates nearly 38% of its portfolio to technology.
After technology, RSP’s top sector allocations are financials at 15.6%, industrials at 13.9%, healthcare at 10.9%, and consumer discretionary at 9.4%.
But perhaps the clearest illustration of the Invesco S&P 500 Equal Weight ETF’s strategy is a closer look at its industry breakdown.
At 5.6%, utilities receive a larger position in the RSP’s portfolio than semiconductors, oil, and gas—each of which has played an enormous role in the S&P 500’s Q2 rally and now looks overextended as a result. If the index’s current run stalls even momentarily or experiences a pullback, which it is arguably overdue for, equal-weight alternatives are better suited to insulate investors’ portfolios from the resulting fallout.
Equal Weight Equals Lower Volatility
Upside potential is capped for equal-weight ETFs like the RSP compared with their market-cap-weighted counterparts. The SPY, for instance, has seen its shares gain about 10% so far this year, while the RSP is up a little more than 8%—respectable, but still lagging.
But gains are not the primary objective when investing in equal-weight funds—stability is. And the RSP’s equal-weight approach directly translates to lower volatility. The ETF currently carries a beta of 0.92, meaning it is nearly 9% less volatile than the broad market as measured by the S&P 500, whose beta serves as the benchmark at 1. By comparison, Micron’s beta currently stands at 1.91, indicating its stock is nearly twice as volatile as the overall market.
That was on full display earlier this year when the SPY fell more than 9% from its then-year-to-date (YTD) high on Jan. 27 to its YTD low on March 30. Meanwhile, the RSP was better equipped to endure the S&P 500’s selloff earlier this year, not reaching its then-YTD high until Feb. 27—a full month after the market-cap weighted SPY—and losing just over 8% before hitting its YTD low on March 30.
Performance and Yield That Help You Sleep at Night
In the short term, the difference in gains and losses between the RSP and market-cap-weighted funds may seem marginal. But over time, they make a sizable difference.
According to Invesco, since 1990, the equal-weight index has outperformed the weighted S&P 500 by an annual average of 1% to 1.05% through the early 2020s. That translates to a gain of more than 32% while helping protect investors from downside risk over that multi-decade timeframe.
Furthermore, the RSP’s dividend yields 1.50%, or $3.11 per share annually at the fund’s current share price. The SPY’s dividend yields just 0.98%, or $7.38 per share annually at the fund’s current share price.
Based on 719 analyst ratings of the companies in the Invesco S&P 500 Equal Weight ETF’s holdings over the past year, the fund has a Moderate Buy rating, with more than 61% of shares held by institutional owners.
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