You probably don't need me to tell you that a lot is going on right now... We've got interest rates... inflation... trade tensions... and a tech mania. Heck, just about every market pressure you could imagine is in play today.
You Might Be Doing Too Much in This Market
By Vic Lederman, editorial director, Chaikin Analytics
You probably don't need me to tell you that a lot is going on right now...
We've got interest rates... inflation... trade tensions... and a tech mania. Heck, just about every market pressure you could imagine is in play today.
Put simply, the market is facing a lot of complicated problems. And we're seeing a lot of volatility as it sorts everything out.
That's OK. It's normal. But for some reason, times like these do something strange to investors.
I call it "complicated problems require complicated solutions" thinking. Or more simply, "doing too much."
I'm sure you've seen this...
I've heard countless people explain how they're going to outsmart this market. Their thinking is 10 layers deep. And honestly, their investment ideas often sound like conspiracy theories.
Faced with an incredibly complicated world... they reach for complicated solutions. And in the process, they make bets that require absurd leaps of logic.
This is a stunning story: Since 2009, a real subscriber from our corporate affiliate Stansberry Research has used just ONE strategy to retire early and stop worrying about money completely. Through different presidents... wars... crises... market ups and downs – it doesn't matter to him. His income and potential gains are OBLIGATED to him by law (something stocks can never do). See his astonishing story... and your one-step plan to do the exact same thing.
New research reveals what Elon Musk could be planning in Washington D.C. and how it may impact your money. In short, Musk has much bigger plans than simply "draining the swamp." His next big project could bring about nothing short of a revolution in our economy – it could change the way you file and pay your taxes... collect Social Security... and how you travel. To do it, Musk will likely use the same strategy he has applied in every other business. See the playbook here.
It's true – we're in a complicated world. But the reality of the market's price action is relatively simple.
This might sound silly to you. But at the end of the day, stocks are either going up... down... or sideways.
That's it. Those are the outcomes.
And today, with the help of the Power Gauge, it's easy to see which stocks are heading in the right direction.
In fact, only three out of 11 top-level sectors in the Power Gauge currently hold a "bullish" or "very bullish" rating. That's simple.
Digging deeper, 10 out of 21 subsectors hold a "bullish" or "very bullish" rating. Easy.
It's also easy to see where the market's most dangerous spots are...
For example, one top-level sector has zero bullish stocks in it. I'm talking about the Materials Select Sector SPDR Fund (XLB)...
Right now, the Power Gauge rates it as "very bearish." And over the past three months, it has been the worst-performing market sector.
It's easy to see why when you look at XLB's Power Bar rating. The majority of the rated stocks in the fund are in "bearish" territory...
Personally, I want to avoid sectors like this. Instead, I'll align myself with sectors that are soaring.
That might sound simplistic at first. But it works...
Take the five-year chart of the Energy Select Sector SPDR Fund (XLE) as an example...
It shows clearly that the energy sector had a strong run from February 2021 through February 2023.
The Power Gauge was right alongside it, too. And using Chaikin Analytics' proprietary measure of relative strength, we can see when the fund was outperforming the broad market.
With the help of the Power Gauge, Chaikin Analytics founder Marc Chaikin was also able to see when the run was over. In early June 2023, he warned Chaikin PowerFeed readers, "Don't wait for energy to bounce back."
So, if you've fallen into the trap of "doing too much," there's still time to climb out...
Sure, we're in a complicated market. But the Power Gauge is still rating the best sectors and subsectors.
And we're still finding winners inside of those. You can, too.
Good investing,
Vic Lederman
Market View
Major Indexes and Notable Sectors
# Hld: Bullish Neutral Bearish
Dow 30
-0.29%
9
14
7
S&P 500
+0.35%
89
265
144
Nasdaq
+0.52%
30
49
21
Small Caps
-0.33%
445
1004
455
Bonds
-0.04%
— According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks remain somewhat Bearish. Major indexes are mixed.
* * * *
Sector Tracker
Sector movement over the last 5 days
Real Estate
+1.47%
Information Technology
+1.15%
Communication
+0.97%
Financial
+0.66%
Utilities
-0.05%
Materials
-0.07%
Health Care
-0.15%
Staples
-0.33%
Industrials
-1.14%
Discretionary
-1.34%
Energy
-1.76%
* * * *
Industry Focus
Health Care Equipment Services
19
36
9
Over the past 6 months, the Health Care Equipment subsector (XHE) has underperformed the S&P 500 by -0.36%. However, its Power Bar ratio, which measures future potential, is Strong, with more Bullish than Bearish stocks. It is currently ranked #9 of 21 subsectors.
Top Stocks
GMED
Globus Medical, Inc.
AXGN
Axogen, Inc.
EMBC
Embecta Corp.
* * * *
Top Movers
Gainers
TPR
+12.02%
PM
+10.95%
PLTR
+9.79%
YUM
+9.72%
RL
+9.69%
Losers
SWKS
-24.67%
HII
-18.32%
HOLX
-10.1%
MOH
-10.09%
PTC
-9.56%
* * * *
Earnings Report
Earnings Surprises
XPO XPO, Inc.
Q4
$0.89
Beat by $0.26
TTWO Take-Two Interactive Software, Inc.
Q3
$0.73
Beat by $0.17
AFRM Affirm Holdings, Inc.
Q1
$-0.32
Beat by $0.13
MCHP Microchip Technology Incorporated
Q3
$0.20
Missed by $-0.08
RBLX Roblox Corporation
Q4
$-0.33
Beat by $0.11
* * * *
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This work is based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors, and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.
