Earlier this year, I warned my readers that the tech-driven market rally was erratic. You don’t need to be a Swiss mathematician to know that when a few large-cap tech stocks drive a market rally, even the slightest tech glitch can tank your portfolio.
This is precisely what happened to investors yesterday.
One bad earnings report threw the entire stock market into chaos…
- The tech-heavy Nasdaq has lost 1.2%.
- The Dow Jones Industrial Average slipped by 0.1%.
- And nine of the S&P 500’s eleven sectors are posting negative returns.
In other words, if you’re overweight in tech, blue chips, or large-caps…
You likely lost money again.
We’ve seen worse, but it’s in moments of panic like this you find unusual opportunities.
Like the flawless equity move we nailed to the upside before yesterday’s closing bell.
A full breakdown of our approach is available here.
One factor behind the tech tumble is that shares of Alphabet (Google’s parent company) plummeted more than 8% after the company’s cloud business missed analysts’ estimates.
The company shed over $166 billion in market value. That was its biggest one-day loss ever, and it shook the Nasdaq, affecting even Amazon and Nvidia, which plunged lower.
Let’s circle back to my opening sentence.
Earlier this year, investors piled into big tech stocks, hoping they’d benefit from artificial intelligence innovations that will flourish forever. But now, most of that excitement is fading as we enter the final weeks of a roller coaster year for many retail investors.
Still, one $2.5 trillion software maker stood out amid the technology rout. Microsoft shares rose about 4% after the company’s third-quarter results beat Wall Street estimates.
And it’s a refreshing reminder that no matter how badly stocks are performing…
There’s always a bright spot with profit potential if you look in the right places.
For trading ideas, see one bright spot 13x more profitable than MSFT.