Editor's note: Even in a recession, you can always find opportunities to make money. And right now – even in today's tough market – the economic data isn't as bad as you might think. In this piece, adapted from a Chaikin PowerFeed essay, Marc Chaikin – founder of our corporate affiliate Chaikin Analytics – zooms in on one sector you should be watching right now...

Folks, we're in the thick of earnings season...

Investors were expecting a bloodbath. After all, many experts believe we're on the edge of a recession.

Well, the results are starting to come in...

Roughly 235 companies in the S&P 500 Index had reported their results in this earnings cycle through last Thursday. And they beat expectations by an average of 8%.

That's not the bloodbath the naysayers expected. And it gets better...

The Power Gauge – which we use at Chaikin Analytics to get a read on the markets – is now "bullish" on the technology sector. Our system first flipped to a "bullish" rating on this space in early February.

The Technology Select Sector SPDR Fund (XLK) is up more than 5% since then. And overall, it's up more than 20% so far this year.

That's a bull market, folks.

Earnings from some of the most important names in tech came out over the past week. So let's take a closer look at two of those tech giants today.

As they'll show us, this sector is full of opportunity. And if you're letting recession fears stand in your way, you could be missing it...

We'll start with Meta Platforms (META).

Facebook's parent company reported its results last Wednesday. The report included its first sales increase in a year.

So, not surprisingly, Meta Platforms' share price surged at the end of last week. The stock is now up roughly 16% from its pre-earnings level.

Now, Meta Platforms has waffled between a "bullish" and "neutral" rating in the Power Gauge over the past few months. But its future looks solidly optimistic today...

The company is outperforming the broad market. And our Chaikin Money Flow indicator points to strong persistency from the so-called "smart money"... In other words, the company's share-price activity indicates that institutional traders are buying.

So it's no surprise that the company earns a "bullish" rating from the Power Gauge today. Its revenues are growing again, and the pros are on board.

Meanwhile, Alphabet (GOOGL) reported its latest results last Tuesday...

The results weren't incredible for Google's parent company. Growth over the previous quarter came in at a paltry 3%.

But importantly, the results beat analysts' expectations. And beyond that, the company is cutting costs and taking the tighter advertising market seriously.

That means the company will be at its leanest – and potentially most profitable – point as the economy continues to find its footing. It's getting in position to thrive moving forward.

Today, Alphabet earns a "very bullish" rating from the Power Gauge. It's proving its strength in the face of challenges, and it's preparing to come out of the hard times stronger than ever.

I can't give away all of the Power Gauge ratings for the tech sector today. That wouldn't be fair to our paying subscribers. But with that said, I can give you a glimpse into the tech sector as a whole...

And it shows that the media's current narrative around this space is disconnected from reality.

Sure, the industry is facing a wave of layoffs. To be honest, they were likely long overdue.

But now, many of the biggest names in the tech sector have gotten more efficient. And as a result, they're beating earnings expectations in a tough market.

We still have a few days left of earnings season. But so far, it's hard to see any evidence of the bloodbath the pundits called for...

In fact, only five companies in XLK earn a "bearish" or worse rating from the Power Gauge. That strong "bullish" tilt means it's currently the second highest-ranked sector in our system...

Put simply, the market is full of opportunity. And the tech sector is leading the way.

You can't let the pundits' invisible bloodbath cloud your vision. Sure, some companies are still struggling. That's just how the market works.

But today, the Power Gauge is clear. It sees a market flooded with bullish potential. It's our job to go out and find the best ways to profit.

Good investing,

Marc Chaikin

Editor's note: The software Marc designed to predict the behavior of stocks called nearly every twist and turn in U.S. stocks in 2022. Now, he's warning that a crash is already unfolding in specific parts of the market – and it looks very different from what the financial talking heads expect. It rolls from industry to industry, spilling over from one to the next... And the only way to not get run over by that snowball is to know where the crash is rolling next. Get the full story here.