Editor’s note: As regular readers know, big-name tech stocks have been under pressure recently…
These “leaders” have fueled the bull market’s run higher. And as technical trading expert Greg Diamond says, their recent struggle is a big warning sign…
Greg is an editor over at our corporate affiliate Stansberry Research. And he has more than 20 years of trading and portfolio management experience.
Greg has managed multimillion-dollar portfolios across different asset classes. He has spoken at various business schools on trading and technical analysis. And he’s a member of the Market Technicians Association – holding the prestigious Chartered Market Technician (“CMT”) designation.
Today, we’re sharing an adapted essay from Greg that most recently published in the March 4 edition of Stansberry’s free DailyWealth e-letter. And in it, he echoes a warning sign that regular Chaikin PowerFeed readers will be familiar with…
One by One, the ‘Generals’ Are Falling
By Greg Diamond, editor, Stansberry ResearchWhen the Zweig Forecast and Professional Tape Reader newsletters launched in the 1980s, subscribers couldn’t read them on a website.
They had to pick up the phone.
Financiers Martin Zweig and Stan Weinstein would record their latest market findings. And investors would call in on Friday afternoons to listen to the tapes.
These were the early days of technical analysis. While technology has come a long way since then, some of Zweig and Weinstein’s insights live on…
The two men would often say, “Be nervous when the Generals are marching forward and the [rest of the] troops aren’t following.”
A slightly different situation has played out recently in technology and semiconductors… The “Generals” have been faltering, and the “troops” have been following them down.
A number of tech and semiconductor Generals – the mega-cap leaders in these sectors – have topped out in recent weeks.
That’s not the kind of leadership we want to see. But we can’t force the market to do what we want. We need to accept what it gives us.
Today, I’ll cover what has been happening recently… and what’s likely to come next.Recommended Links:
Forget about the conflict in the Middle East. Former multibillion-dollar hedge-fund trader Greg Diamond says this wave of volatility is just the beginning. While most investors are fleeing the market, he’s showing folks how to leverage this volatility for massive potential gains at the 2026 Market Crash Summit on Tuesday, March 10. Click here to sign up now.
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Tech and Chip Leaders Are Showing Cracks
Let’s start by looking “under the hood” and examining the tech Generals. We’ll begin with Apple (AAPL). Here’s how the stock looked on the chart going into this week…
Apple peaked in December 2025. It then failed to make a new high by early February – an important time factor that indicated the stock likely already topped out.
We’ve seen similar price action recently… The stock bounced again, made an even lower high on February 25, and dropped again. This is another example of the topping-out process.
We’ve seen the same type of setup in Microsoft (MSFT)… Amazon (AMZN)… and Alphabet (GOOGL). These tech Generals didn’t peak at the same time. But they’re all going through the topping-out process.
The industrials sector has been one notable exception… The State Street Industrial Select Sector SPDR Fund (XLI) has held up well compared with everything else we’re looking at.
But historically, when leadership cracks, strength elsewhere doesn’t last long. So, if tech continues lower, the question becomes: Do industrials roll over next? It’s possible.
Now, let’s shift gears to the semiconductor Generals…
We’ll start by examining the biggest chipmaker of them all, Nvidia (NVDA). Here’s how its stock chart looked coming into this week…
Nvidia released earnings after the market close on February 25… And the stock dropped the next trading day.
For technical traders, the reasons for the move aren’t as important as the move itself.
As you can see, the stock has been dangerously close to breaking its “support” level (the solid red horizontal line on the chart). If that happens, Nvidia could drag down the broader chip space.
That includes the VanEck Semiconductor Fund (SMH)… and major holdings Taiwan Semiconductor Manufacturing (TSM) and Advanced Micro Devices (AMD). Both of these semiconductor Generals have trended lower.
Watching for the Market’s Next Move
The market’s leadership – technology and semiconductors – has recently shown signs of topping out.
But as traders, we can take advantage of the volatility. These chart setups can help us read what’s happening… and trade intelligently.
Both sectors could see a breakdown, a potential bounce, and then an even bigger breakdown…
Or this could be a short-term low where the market looks past any volatility. After that, we could see choppier price action.
The bottom line is, if key support levels start to break, that would likely confirm a top.
Until we see that, patience is key. Let the Generals tell us what happens next.
Good investing,
Greg Diamond, CMT
Editor’s note: Greg called the 2020 COVID-19 crash… the 2022 tech crash… and the 2023 bank crisis – all in advance.
And this coming Tuesday, March 10, he’s going public in a free briefing – with a brand-new warning about a wave of volatility that he sees coming straight toward U.S. stocks. During the briefing, he’ll also share the steps investors should take to prepare.
It’s worth paying attention to what Greg has to say – get more details and register to attend this free special event here.
Major Indexes and Notable Sectors # HLD: BULLISH NEUTRAL BEARISH
Dow 30
-1.62%718 5S&P 500
-0.56%107283 108Nasdaq
-0.3%2250 28Small Caps
-1.91%4781029 375Bonds
-0.4%
— According to the Chaikin Power Bar, Small Cap stocks have become somewhat more Bullish than Large Cap stocks. Major indexes are mixed.* * * *
Sector movement over the last 5 daysEnergy+2.6%Communication+1.47%Consumer Discretionary-0.43%Information Technology-0.59%Utilities-0.59%Real Estate-0.66%Health Care-2.23%Financial-2.42%Industrials-2.63%Consumer Staples-3.88%Materials-4.09%* * * *
Telecom Services16193
Over the past 6 months, the Telecom subsector (XTL) has outperformed the S&P 500 by +33.90%. Its Power Bar ratio, which measures future potential, is Very Strong, with more Bullish than Bearish stocks. It is currently ranked #5 of 21subsectors and has moved down 1 slot over the past week.Top Stocks
ADTNADTRAN Holdings, IncBANDBandwidth Inc.FFIVF5, Inc.* * * *
Gainers
TTD+18.36%
EXPE+13.44%BKNG+8.46%
LYB+6.4%
INTU+6.05%LosersGLW-6.97%
LUV-6.89%MRNA-6.87%UPS-5.82%FIX-5.74%* * * *
Earnings SurprisesCIEN
Ciena Corporation Q0 $1.35 Beat by $0.18COO
The Cooper Companies, Inc. Q1 $1.10 Beat by $0.07KR
The Kroger Co. Q4 $1.28 Beat by $0.08BURL
Burlington Stores, Inc. Q4 $4.89 Beat by $0.14MRVL
Marvell Technology, Inc. Q0 $0.80 Beat by $0.01* * * *
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