Sī vīs pācem, parā bellum. This Latin phrase translates to "if you want peace, prepare for war."
The Power Gauge Is Prepared for War
By Carlton Neel, CEO, Chaikin Analytics
Sī vīs pācem, parā bellum.
This Latin phrase translates to "if you want peace, prepare for war."
Politicians have followed versions of this mantra for centuries, all the way back to the Roman Empire. President Ronald Reagan famously used a version of it with the "Peace Through Strength" slogan in the 1980s during the Cold War with the Soviets.
In short, military deterrence is a longstanding precaution against war...
The entire NATO alliance is predicated on "an attack on one is an attack on all." While the U.S. has led the way in the past, that's no longer the case...
Now, after Russia's attack on Ukraine, other NATO countries are increasing their military budgets. With the world on edge and World War III looking like a possibility, it's time to create peace through military strength once again.
Nobody knows what will happen next...
Will Ukraine fall to Russian forces and that be it? Will Russian President Vladimir Putin test NATO and go into Poland or the Baltic states? Will Russian forces face stiff resistance from the Ukrainian people and find a new stalemate?
In the meantime, whatever happens, the markets will likely be volatile.
That brings us to the point of our discussion today... With countries now increasing their military budgets to deter an outside attack, what should you do as an investor?
Fortunately, when it comes to your portfolio, our Power Gauge has answers. And today, I'll show you its reading on a classic wartime investment strategy...
"Commodities will be THE trade of the coming decade," says the senior analyst behind 24 triple-digit winning recommendations. Not just because they're among the best ways to BEAT out-of-control inflation... but because they're at the beginning stages of a massive cycle... one that could hand you quadruple-digit gains if you get in now. He details his No. 1 favorite commodity play, right here.
Stocks are plummeting after Russia's invasion of Ukraine. The shutdown of a major energy pipeline to Russia could create a historic shock in oil prices and send oil stocks soaring. But do NOT buy Chevron or ExxonMobil. Instead, this small Texas oil stock could make you 100-plus % if you get in immediately, before the oil crisis escalates. Click here for the full details.
What companies will do well during this military buildup and preparation?
The Power Gauge has already sniffed out an area of market strength – aerospace and defense. And when you stop and think about it, that makes sense...
As military budgets rise, companies that make planes, helicopters, bombs, and radar systems will sell more. These are all things the world's armies need to protect their homelands. And as that happens, the biggest defense contractors will thrive...
I'm talking about companies like Lockheed Martin (LMT). It's one of the world's largest defense contractors. The Power Gauge is currently "very bullish" on the company.
General Dynamics (GD) is another "very bullish" defense contractor. It makes nuclear-powered submarines, guided missiles, tanks, and armored vehicles.
These two companies and many other defense-related stocks – such as Northrop Grumman (NOC) and Raytheon Technologies (RTX) – are all found in one convenient place... The SPDR S&P Aerospace and Defense Fund (XAR) holds about 30 companies in this space.
And just recently, the Power Gauge signaled a buying opportunity in XAR. Take a look...
Notice that the Power Gauge moved to "bullish" for XAR on February 25. And the exchange-traded fund's share price is just starting to head up. You're still early in this game.
Better still, our proprietary Chaikin Money Flow indicator signaled heavy buying in recent days. That means institutional traders – the so-called "smart money" – are pouring into this space right now.
And not surprisingly, the exchange-traded fund just started outperforming the S&P 500 Index, too. You can see that in the "relative strength vs. the market" panel of the chart. That means now is the time to act.
When you combine everything, it's a recipe for big returns.
So folks, if you're looking for somewhere to put your money to work in this volatile market environment, remember the old Latin phrase... Sī vīs pācem, parā bellum.
Good investing,
Carlton Neel
Market View
Major Indexes and Notable Sectors
# Hld: Bullish Neutral Bearish
Dow 30
-0.23%
5
22
3
S&P 500
-0.48%
88
342
67
Nasdaq
-1.43%
9
71
18
Small Caps
-1.17%
267
1082
522
Bonds
+1.02%
Utilities
+1.76%
6
20
2
— According to the Chaikin Power Bar, Small Cap stocks are more Bearish than Large Cap stocks. Major indexes are mixed.
* * * *
Top Movers
Gainers
KR
+11.61%
BBY
+9.22%
BF.B
+7.08%
DLTR
+4.69%
LUMN
+3.77%
Losers
EPAM
-13.13%
IPGP
-9.08%
MTCH
-5.71%
AMD
-5.33%
DRI
-5.22%
* * * *
Earnings Report
Reporting Today
Rating
Before Open
After Close
No earnings reporting today.
Earnings Surprises
KR The Kroger Co.
Q4
$0.91
Beat by $0.17
MRK Merck & Co., Inc.
Q4
$1.80
Beat by $0.28
BF.B Brown-Forman Corporation
Q3
$0.54
Beat by $0.06
COST Costco Wholesale Corporation
Q2
$2.92
Beat by $0.18
COO The Cooper Companies, Inc.
Q1
$3.24
Beat by $0.14
* * * *
Sector Tracker
Sector movement over the last 5 days
Energy
+8.96%
Utilities
+5.81%
Industrials
+3.99%
Health Care
+3.76%
Real Estate
+3.44%
Staples
+3.15%
Materials
+2.43%
Discretionary
+0.93%
Financial
+0.24%
Information Technology
+0.09%
Communication
+0.03%
* * * *
Industry Focus
NYSE Technology Services
1
27
6
Over the past 6 months, the NYSE Technology subsector (XNTK) has underperformed the S&P 500 by -12.90%. Its Power Bar ratio, which measures future potential, is Very Weak, with more Bearish than Bullish stocks. It is currently ranked #17 of 21 subsectors and has moved down 3 slots over the past week.
Indicative Stocks
SE
Sea Limited
SHOP
Shopify Inc.
ORCL
Oracle Corporation
* * * *
Chaikin Analytics LLC is not registered as a securities broker-dealer or advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Chaikin Analytics does not recommend the purchase of any stock or advise on the suitability of any trade.
The information presented is generic in nature and is not to be construed as an endorsement, recommendation, advice or any offer or solicitation to buy or sell securities or any kind, but solely as information requiring further research as to suitability, accuracy and appropriateness. Users bear sole responsibility for their own stock research and decisions. Read the full disclaimer at https://www.chaikinanalytics.com/disclaimer.
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