A Message From Paradigm Press

Below is an important message from one of our highly valued sponsors. Please read it carefully as they have some special information to share with you.

Man who Predicted Trump 2016 Win:
“Prepare for Mid-Term Meltdown”

Dear Reader,

In 2016, one major election model gave Hillary Clinton more than a 99% chance of winning right up until election night.

But right before the election…

Former advisor to the CIA, the Pentagon and the White House Jim Rickards went on multiple TV news programs…

And predicted Trump would win.

What he’s predicting now is even more shocking.

Click here to see it because it’s a BOMBSHELL…

And it could soon send shockwaves through the financial markets.

Regards,

Matt Insley
Publisher, Paradigm Press

Failed Breakout in Tech? 3 Sectors Leading the Market Rotation

Written by Ryan Hasson. Originally Published: 10/15/2026.

In early October, the technology sector appeared poised to extend its rally to fresh all-time highs. Now, that move is in serious question. The Invesco QQQ Trust (NASDAQ: QQQ), which tracks the Nasdaq-100, pushed above the key $750 level and reached a record high near $763 on Oct. 6, only to reverse and fall back below $750 by Oct. 13. Technicians call that kind of move a false breakout, one of the market's more treacherous setups. It can trap buyers at the top just before a deeper pullback.

What makes this move more concerning is the market's overall breadth—or rather, the lack of it. A narrow group of mega-cap names drove the rally while the broader market lagged badly. Worse, some leading groups, including semiconductor stocks, have started to roll over.

If this failed breakout develops into something larger and fear continues to build, the natural question is: Where does capital go? Historically, when investors grow nervous about richly valued growth stocks, money does not simply leave the market altogether. Instead, it rotates into other areas that offer stability, income, or real-asset exposure less tied to the growth trade. Three such sectors are already flashing signs of outperformance.

Utilities: The Classic Safe Haven

Utilities stocks are a textbook defensive play, and the Utilities Select Sector SPDR Fund (NYSEARCA: XLU) has been demonstrating that strength. During the recent pullback in tech, XLU rallied almost 1.7%, far outperforming the QQQ, which fell nearly 2%. Technically, XLU has broken out of its immediate downtrend but remains below key moving averages, including its 50- and 200-day simple moving averages (SMAs). The first step will be confirming a higher low if and when the fund pulls back after such a sharp rally. After that, bulls will want to see it reclaim the 50-day SMA and, ultimately, the 200-day SMA to confirm a higher-timeframe rotation and potential leadership going forward.

For now, with significant flows entering the fund and clear short-term outperformance, there are early signs that capital is seeking a more defensive corner of the market. The appeal of utilities—and the historical thesis behind them—is that people pay their power bills regardless of what the market is doing, giving utilities steady cash flows and reliable dividends.

Consumer Staples: Recession-Resistant Demand

Consumer staples are another classic defensive destination, and the move here has been even sharper. The Consumer Staples Select Sector SPDR Fund (NYSEARCA: XLP) surged more than 3% during the same period, a significant outperformance. Technically, XLP has now reclaimed its key 200-day SMA and reentered its higher-timeframe consolidation range after briefly breaking below support near the end of September.

Companies in this group sell products that people buy regardless of the economic backdrop, including food, beverages, household goods, and personal-care items. That nondiscretionary demand makes their revenues far more stable than those of high-flying growth names. The sector also has one of the lowest volatility profiles in the market, with a beta below 0.5. When uncertainty rises, staples tend to hold up precisely because their businesses are so predictable.

Energy: A Different Kind of Market Leader

Energy has been the standout among the three sectors, offering something the others do not: exposure to a completely different set of drivers. The Energy Select Sector SPDR Fund (NYSEARCA: XLE) has been among the strongest-performing sector ETFs recently, surging more than 6% during the recent pullback in tech and rising almost 51% year to date. Crucially, while the broader market and the QQQ failed to hold their breakouts, XLE did. It has held its new 52-week-high breakout well so far, demonstrating continued strength despite broader market weakness.

Energy stocks tend to move with commodity prices rather than the tech cycle, making them a valuable diversifier when growth stocks come under pressure. Many major energy names also pay robust dividends and trade at reasonable valuations—a sharp contrast to the stretched multiples that define many technology leaders.

Is the Rotation Away From Tech Just Beginning?

These three sectors share something important right now: All are attracting capital as investors rotate away from richly valued growth. Whether that pattern continues is the all-important question. But when all three begin outperforming as tech and the broader growth trade start to wobble, it is often one of the first signs that something may be brewing beneath the surface.

One failed breakout does not guarantee a sustained downturn, and a single strong session—or two—in tech could put the bulls back in control. But a false breakout to new highs, poor breadth, and rolling leadership names, paired with money quietly rotating into utilities, staples, and energy, is a combination worth respecting and watching closely.