Why I Choose the Power Gauge Over Earnings Reports
byCOVID-19-
Here at Chaikin Analytics, we believe in both fundamental and technical analysis. The reason is simple...
Why I Choose the Power Gauge Over Earnings Reports
By Pete Carmasino, chief market strategist, Chaikin Analytics
Here at Chaikin Analytics, we believe in both fundamental and technical analysis.
The reason is simple...
The stock market is irrational.
A company with good fundamentals can beat Wall Street's estimates. And yet, its stock will still go down for some unclear reason.
That happens all the time in the market. And it's where technical analysis comes in...
More specifically, we rely on a technical indicator known as "relative strength."
This indicator is based on price movement. Our Power Gauge system measures the relative strength of the more than 5,000 stocks in its universe against the S&P 500 Index.
If a stock has a "bullish" rating but is doing worse than the S&P 500, it's likely not a good buy. In that case, it would make more sense for us to just invest in the index itself.
But importantly, following our relative strength indicator can give us an edge...
The clock is ticking on what may be the biggest financial event in 20 years, as one of the oldest technical indicators just started flashing. It's the same signal we saw coming out of the Dot-Com crash of the early 2000s... the Great Financial Crisis... even after the COVID-19 crash. But if you want to take advantage, you must position yourself immediately. Click here to see why.
Investors are getting very rich in A.I. stocks right now. And according to 50-year Wall Street legend Marc Chaikin, there are FIVE A.I. companies Wall Street is buying hand-over-fist that need to be on your radar immediately. Click here for names and tickers.
Take appliance maker Whirlpool (WHR), for example...
The company has beaten its earnings estimates in three straight quarters.
But as an investor, I wouldn't get near Whirlpool's stock today...
Even though the fundamentals look good, the other piece of the puzzle – the technicals – is telling us something different. Whirlpool's relative strength is weak. Take a look...
Whirlpool closed 2022 at about $141 per share. Today, it trades at around $136 per share.
In other words, in the middle of a bull market... Whirlpool's stock has lost value.
It doesn't matter how good the fundamentals are. You're in trouble if the market doesn't agree with you.
Based on the fundamentals, Whirlpool is a great company right now. But its stock isn't moving up. So in this case, it's the perfect candidate for your watch list.
Now, consider what's happening with computer maker Dell Technologies (DELL)...
Dell also beat Wall Street's earnings estimates in every quarter this year. So we know it's fundamentally solid. And importantly, Dell's relative strength is strong. Take a look...
Notice that Dell's relative strength was still negative earlier this year...
In late March, the stock's Power Gauge rating flipped to "bullish." Then, the Chaikin Money Flow indicator moved into the green zone. And finally, its relative strength turned positive.
Here's the kicker...
Since that trend change occurred in April, Dell's stock is up around 70%.
That's why we believe in both the fundamentals and the technicals at Chaikin Analytics. When we use them together, we can gain an important advantage over other investors.
It's the best way to succeed in an irrational market.
Good investing,
Pete Carmasino
Market View
Major Indexes and Notable Sectors
# Hld: Bullish Neutral Bearish
Dow 30
-0.19%
12
15
3
S&P 500
+0.12%
125
266
107
Nasdaq
+0.38%
44
47
8
Small Caps
-0.66%
409
1044
478
Bonds
-0.02%
Utilities
+1.20%
1
9
20
— According to the Chaikin Power Bar, Small Cap stocks remain somewhat more Bearish than Large Cap stocks. Major indexes are mixed.
* * * *
Sector Tracker
Sector movement over the last 5 days
Utilities
+3.98%
Discretionary
+2.84%
Energy
+1.11%
Financial
+1.11%
Health Care
+1.03%
Communication
+0.90%
Staples
+0.67%
Materials
-0.74%
Real Estate
-0.79%
Industrials
-1.81%
Information Technology
-2.28%
* * * *
Industry Focus
Software & Services
86
58
3
Over the past 6 months, the Software & Services subsector (XSW) has outperformed the S&P 500 by +1.19%. Its Power Bar ratio, which measures future potential, is Very Strong, with more Bullish than Bearish stocks. It is currently ranked #5 of 21 subsectors and has moved down 2 slots over the past week.
Top Stocks
NTNX
Nutanix, Inc.
CTSH
Cognizant Technology
RAMP
LiveRamp Holdings, I
* * * *
Top Movers
Gainers
FTRE
+4.38%
DVA
+4.09%
JBHT
+4.09%
CRL
+3.30%
MRNA
+3.18%
Losers
CBRE
-6.71%
FSLR
-5.77%
MMM
-5.70%
AAL
-5.67%
NFLX
-5.16%
* * * *
Earnings Report
Reporting Today
Rating
Before Open
After Close
ADBE
CPRT, LEN
No earnings reporting today.
Earnings Surprises
SMTC Semtech Corporation
Q2
$0.11
Beat by $0.09
* * * *
You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, click here.
You're receiving this e-mail at punjabsvera@gmail.com.
For questions about your account or to speak with customer service, call +1 (877) 697-6783 (U.S.), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. Please note: The law prohibits us from giving personalized investment advice.
Any brokers mentioned constitute a partial list of available brokers and is for your information only. Chaikin Analytics, LLC, does not recommend or endorse any brokers, dealers, or investment advisors.
Chaikin Analytics forbids its writers from having a financial interest in any security they recommend to our subscribers. All employees of Chaikin Analytics, LLC (and affiliated companies) must wait 24 hours after an investment recommendation is published online – or 72 hours after a direct mail publication is sent – before acting on that recommendation.
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.
