It all started back in the mid-1960s. Back then, I had just started as a broker. And one day, a colleague introduced me to George Chestnutt's financial writing...
Chestnutt's work gave me access to the best data available at the time. And before long, my life's work revolved around collecting, parsing, and using data to help investors succeed.
Now, more than five decades later... I'm still always looking at the data.
Today, the data tells us that the broad market is entering new territory. The Federal Reserve is softening its posture on inflation. And I'm seeing more "bullish" technical setups.
But that doesn't mean every stock is flashing a green light...
In fact, one basket of stocks is especially dangerous right now. I like to refer to these 27 stocks as "portfolio landmines." If you come across them, they could blow up your portfolio.
For months, Marc Chaikin has warned of a wave of crashes rolling through U.S. stocks. But today, he's issuing a very different kind of warning. In short: If you're following the usual crisis playbook... staying on the sidelines... or hoarding cash... your money is more at risk than at any other time in recent history. But there's a dead-simple way to take advantage of what's coming, instead of being blindsided. Click here for the major story (including two stocks to SELL immediately).
Greg Diamond is giving away the name of his No. 1 stock for 2023. You could have already doubled your money five different times with this stock using his strategy, which dates back to 1876. It's how Greg managed up to $900 million a day on Wall Street, where he booked an average profit of $155,000 per day. Click here to learn the ticker.
My colleague Pete Carmasino explained the idea of "short covering" earlier this week. In its simplest form, it's the act of buying shares to close a bet against a stock.
In other words, when a "short" trade goes against someone, they need to buy shares to exit the position. That pushes the stock higher in what the industry calls a "short-covering rally."
Using the Power Gauge, I've found 27 stocks that look like they're in this position today...
These stocks all earn "bearish" or worse rankings in the Financials and Earnings categories. And they've all consistently lagged behind the benchmark S&P 500 Index.
But over the past month, they've all beaten the S&P 500 by 10% or more.
All this data leads us to a critical takeaway...
These rallies might seem impressive at first. But this outperformance is weak on a technical level. And in turn, these 27 stocks are all landmines that could blow up your portfolio.
Now, it wouldn't be fair to my paying Power Gauge subscribers to share the whole list. But I do want to mention a couple of popular names to avoid at all costs right now...
The Power Gauge currently ranks beleaguered automaker Lucid (LCID) as "very bearish" overall. And as you can see, its full report is about as "bearish" as it gets...
And another stock that might surprise you is sports-betting empire DraftKings (DKNG)...
It's currently rated as "very bearish" in the Financials category and "bearish" in the Earnings category. However, just like Lucid, it's easily outperforming the S&P 500 in recent weeks.
Folks, the stock market is rallying so far in 2023...
The S&P 500 is up around 6%. And the tech-heavy Nasdaq Composite Index is up about 13%.
As more folks cover their short positions, some of last year's worst performers are moving sharply higher. But many of these stocks have weak earnings outlooks and poor financials.
They're nothing more than portfolio landmines.
In fact, one of these landmines just blew up on investors...
Financial-services company Affirm (AFRM) also popped up on our screen. The company reported dismal earnings this week. And in response... its stock cratered 17% yesterday.
So if you're holding shares of Lucid or DraftKings, capitalize on their recent rallies and get out before it's too late. Then, put your money to work in "bullish" or better stocks.
Over the years, we've built an incredible team of analysts at Chaikin Analytics. And as you know, we just added Briton Hill. I'm thrilled to have his unique perspective on my team.
But even with all these brilliant idea generators... I'll always look at the data.
Good investing,
Marc Chaikin
Market View
Major Indexes and Notable Sectors
# Hld: Bullish Neutral Bearish
Dow 30
-0.69%
8
18
4
S&P 500
-0.87%
162
267
71
Nasdaq
-0.88%
35
53
12
Small Caps
-1.41%
545
996
348
Bonds
-0.95%
— According to the Chaikin Power Bar, Large Cap stocks and Small Cap stocks are Bullish.. Major indexes are mixed.
* * * *
Sector Tracker
Sector movement over the last 5 days
Energy
+0.82%
Financial
-0.79%
Information Technology
-1.27%
Health Care
-1.38%
Staples
-1.89%
Industrials
-1.91%
Materials
-3.78%
Discretionary
-4.00%
Real Estate
-4.26%
Utilities
-4.28%
Communication
-6.57%
* * * *
Industry Focus
Semiconductor Services
16
21
2
Over the past 6 months, the Semiconductor subsector (XSD) has outperformed the S&P 500 by +16.87%. Its Power Bar ratio, which measures future potential, is Very Strong, with more Bullish than Bearish stocks. It is currently ranked #6 of 21 subsectors and has moved up 4 slots over the past week.
Top Stocks
CRUS
Cirrus Logic, Inc.
ON
ON Semiconductor Cor
DIOD
Diodes Incorporated
* * * *
Top Movers
Gainers
MPWR
+10.24%
MGM
+6.44%
RE
+5.98%
WYNN
+4.80%
ORLY
+3.76%
Losers
IFF
-18.75%
BAX
-12.13%
STE
-10.89%
SEDG
-8.57%
VFC
-8.47%
* * * *
Earnings Report
Reporting Today
Rating
Before Open
After Close
CRL, GPN, IQV
NWL
No earnings reporting today.
Earnings Surprises
VTR Ventas, Inc.
Q4
$0.02
Beat by $0.06
HLT Hilton Worldwide Holdings Inc.
Q4
$1.59
Beat by $0.37
DXCM DexCom, Inc.
Q4
$0.34
Beat by $0.06
PM Philip Morris International Inc.
Q4
$1.39
Beat by $0.11
BAX Baxter International Inc.
Q4
$0.88
Missed by $-0.06
* * * *
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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.
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