I’ve spent my career on the leading edge of technology…
Wall Street demanded it, after all.
You see, great technical systems often require great technology. And that’s especially true if you plan to sell that analysis to Wall Street’s titans like I did over the years.
Still, technology moves very quickly these days…
We’re awash in talk of artificial intelligence. And tech giant Apple (AAPL) just released plans for a $3,499 “augmented reality” headset that looks like it’s from a science-fiction movie.
Now, we hadn’t yet landed on the moon when I started my career in finance…
Longtime readers know I’ve joked about that point in Chaikin PowerFeed before. But it speaks to how far we’ve come with technology over the past five-plus decades.
And it might surprise you to know that I have thoughts on Apple’s newfangled gadget today. Well, at least through the lens of the Power Gauge, I do.
You’ll see that it’s not really about the hot topic of Apple’s headset itself. Rather, my take is about using the Power Gauge to assess a bigger trend going on in the market…
Folks, when I see something like Apple’s new augmented-reality headset dominating the news, I think, “That’s neat.” Then, I immediately turn to the Power Gauge.
Two things jump out at me in this case…
First, the Power Gauge turned “bullish” on Apple in early May. And more than a month later, it still holds that rating today. You can see what I mean in the bottom panel of this chart…
In short, that means the Power Gauge expects Apple to keep rising in the coming months.
But something bigger is going on in the broad market, too. This trend is the second thing that jumped out at me in the Power Gauge…
You see, the Power Gauge also analyzes exchange-traded funds (“ETFs”). And to complete that analysis, the system dives into each of the individual stocks within the ETFs.
Today, I want to draw your attention to two specific ETFs…
- SPDR Portfolio S&P 500 Value Fund (SPYV)
- SPDR Portfolio S&P 500 Growth Fund (SPYG)
As their names imply, these two ETFs focus on different types of stocks. SPYV tracks value stocks. And SPYG is a key gauge for growth stocks.
Folks, what I saw in the Power Gauge is simple but important…
The market is tilting back toward growth.
You can see clearly that growth stocks are outperforming value stocks once again. In fact, SPYG has roughly doubled the performance of SPYV since the start of this year…
So where does that leave us with Apple?
I don’t know how the company’s $3,499 headset will do in the market. The launch price seems steep. And it’s still hard to say how many folks will embrace augmented reality.
But Apple is a proven tech innovator. So when it brings something so attention-grabbing to the market, it’s wise to pay attention.
In the end, we can trust the Power Gauge as our guide…
Our system sees opportunity ahead for Apple. It holds a “bullish” rating on the company right now. And the stock is outperforming the broad market – by a lot…
Apple is up nearly 40% this year. And the S&P 500 Index is only up about 12%.
We also know that the market is shifting back toward a growth mentality. Growth stocks are outperforming. And investors’ appetite for risk and innovation is back on the upswing.
So as you can see, we don’t need to know all the ins and outs of Apple’s latest gadget. With the Power Gauge’s help, we can simply focus on what this means for us as investors…
The market is looking for new growth opportunities. We don’t want to sit on the sidelines.
Good investing,
Marc Chaikin
