The Sector On Our Watchlist May Surprise You
As investors scramble to find a place to shelter their money, fears of a full on banking crisis continue to grow. Yesterday, Moody’s downgraded the whole banking sector to give it a negative outlook. Now, many are starting to think the events of the past week or so is enough to send us right back in the the claws of a bear market, and possibly a recession.
However, as money flows out of the financial sector, it may be finding its way into a couple other sectors. We will take a look at one area of the market that has held up surprisingly well in the midst of all the chaos.
Technology Select Sector SPDR ETF (XLK)
The technology sector really shined yesterday with companies like Microsoft (MSFT) and Meta (META) posting impressive days, despite the banking industry getting hammered. If this strength continues, I would keep this ETF on my watchlist. As money flows out of one area of the market, it will likely find its way into another.
The individual names above are also something to keep an eye on as these could be the strong names in a weak market. Don’t jump in with both feet too soon, however, we are still in a precarious spot for the market with one bit of news being able to send us back to bear market territory. Watch the full video breakdown below!
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I look forward to trading with you, but until then, as always…
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