Two campers are walking through the woods. Out of nowhere, a grizzly bear appears... The first camper starts to run. The second camper shouts ahead to the first camper that they'll never outrun the bear. It's too fast.
'Outrun the Bear' With This Indicator
By Pete Carmasino, chief market strategist, Chaikin Analytics
Two campers are walking through the woods. Out of nowhere, a grizzly bear appears...
The first camper starts to run. The second camper shouts ahead to the first camper that they'll never outrun the bear. It's too fast.
That's when the first camper reveals his true goal...
He tells the second camper that he isn't trying to outrun the bear. He's only trying to outrun him.
That is "relative strength"...
It can be relative to a benchmark (like the bear). Or it can be relative to a peer (like the second camper).
When it comes to stocks, the idea of relative strength is simple...
We want to find the best stocks in the market that are beating their benchmark or their peers. That's one of the fundamentals to building a successful track record as an investor.
He successfully predicted the fall of Lehman Brothers... the Bitcoin crash... the top of the Nasdaq last November... and that inflation would wreak havoc on the economy all the way back in January. Now, Dan Ferris says the biggest mega-bubble in stock market history is about to burst... and you need to prepare immediately. Click here for full story.
Yes, the markets have been volatile... but the massive prediction Dave Lashmet unveiled just days ago is a once-in-a-lifetime situation. He believes this is one of the last chances you'll get for a big win in 2022... no matter what the market does next... specifically in THREE stocks that could begin SOARING immediately after a major potential announcement on Sunday, October 23. Get the full story here before today's closing bell.
At Chaikin Analytics, we focus on relative strength versus the S&P 500 Index. And more specifically, we use the index-tracking SPDR S&P 500 Trust (SPY) as our benchmark...
The first step to success is finding stocks that are relatively better than SPY. And the real key is finding them at the best entry points. That way, we can maximize our returns.
To do that, we also need to know which sectors to be in – and if the stock has good fundamentals as well. That's where the Power Gauge comes in...
Our one-of-a-kind system measures 20 different factors. It includes valuation ratios – like price to sales and price to book value.
But it also measures things like Wall Street analysts' ratings and insider buying. These types of factors are much harder for individuals to find and process effectively.
That's why we let the Power Gauge do the hard work for us.
In the long run, we're looking for stocks with good fundamental and technical setups. But sometimes, special situations lead us to focus on certain factors (like relative strength).
Netflix's stock traded sideways for most of August and September. Its share price during that time was essentially stuck in a channel between about $220 and $250 per share.
But then, during the week of October 10, something important happened. You can see what I mean in one of the stock screens I use for my research...
Notice that Netflix performed relatively strong compared with its peer group that week. It beat out companies like Microsoft (MSFT), Apple (AAPL), Meta Platforms (META), and Alphabet (GOOGL).
It also outperformed SPY, which lost about 1.4% that week. And importantly, Netflix's stock held up on down days in the broad market.
Netflix's relative strength was signaling something important. The stock was trading on a different narrative than the broad market. And after the markets closed Tuesday, we found out why...
In short, Netflix released a strong earnings performance. The company added 2.4 million subscribers in the third quarter. That increase blew away expectations.
As a result, Netflix's stock soared more than 13% on Wednesday.
But the thing is... with relative strength, we already knew a big move could happen.
Folks, relative strength is an important tool for investors like us. It allows us to spot changes in a stock's performance – especially changes that diverge from the crowd.
During the week of October 10, Netflix signaled to us that it was the faster camper. And in situations like that, it's critical to run with the fastest camper we can.
We don't want to be the second camper who falls behind and gets eaten by the bear.
Good investing,
Pete Carmasino
Market View
Major Indexes and Notable Sectors
# Hld: Bullish Neutral Bearish
Dow 30
-0.34%
5
19
6
S&P 500
-0.83%
53
311
132
Nasdaq
-0.51%
8
63
29
Small Caps
-1.27%
338
1028
496
Bonds
-1.71%
— According to the Chaikin Power Bar, Large Cap stocks are more Bearish than Small Cap stocks. Major indexes are mixed.
* * * *
Top Movers
Gainers
LRCX
+7.81%
T
+7.72%
DGX
+6.32%
LVS
+5.59%
IBM
+4.73%
Losers
ALL
-12.90%
UNP
-6.80%
TSLA
-6.65%
FITB
-6.34%
SBNY
-6.32%
* * * *
Earnings Report
Reporting Today
Rating
Before Open
After Close
HCA
AXP, HBAN, IPG, RF, SLB
VZ
No earnings reporting today.
Earnings Surprises
DHR Danaher Corporation
Q3
$2.56
Beat by $0.31
PM Philip Morris International Inc.
Q3
$1.53
Beat by $0.17
T AT&T Inc.
Q3
$0.68
Beat by $0.07
GPC Genuine Parts Company
Q3
$2.23
Beat by $0.18
DGX Quest Diagnostics Incorporated
Q3
$2.36
Beat by $0.17
* * * *
Sector Tracker
Sector movement over the last 5 days
Communication
+2.15%
Energy
+1.32%
Information Technology
+0.77%
Industrials
-0.37%
Real Estate
-0.58%
Health Care
-0.76%
Financial
-0.89%
Materials
-0.94%
Staples
-1.31%
Utilities
-1.43%
Discretionary
-1.57%
* * * *
Industry Focus
Health Care Equipment Services
1
34
45
Over the past 6 months, the Health Care Equipment subsector (XHE) has underperformed the S&P 500 by -7.18%. Its Power Bar ratio, which measures future potential, is Very Weak, with more Bearish than Bullish stocks. It is currently ranked #19 of 21 subsectors and has moved down 2 slots over the past week.
Indicative Stocks
CNMD
CONMED Corporation
NVCR
NovoCure Limited
ICUI
ICU Medical, Inc.
* * * *
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 diansastroxz.forex@blogger.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.
Post a Comment
Post a Comment