As regular readers know, the Power Gauge is emotionless... Our system looks at the data for more than 20 distinct factors – everything from the financials, to the technicals, to expert analysis
The Most Hated Stocks in the Power Gauge
By Vic Lederman, editorial director, Chaikin Analytics
As regular readers know, the Power Gauge is emotionless...
Our system looks at the data for more than 20 distinct factors – everything from the financials, to the technicals, to expert analysis. It then distills all that information down into a single rating. These range from "very bearish" to "very bullish."
Put simply, the Power Gauge is a way to take emotion out of the investing process. It helps shield investors from irrational decisions.
After all, the numbers are what they are. And Chaikin Analytics founder Marc Chaikin built the Power Gauge after decades of helping Wall Street's biggest names make data-driven decisions.
But as we all know, humans are emotional creatures.
And today, a group of stocks in the Power Gauge is unusually hated.
Interestingly, we know that through the numbers. It doesn't require guesswork or feelings.
The data tells us that this is the most hated group of stocks in the Power Gauge. So today, let's take a look at them together...
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Specifically, I'm talking about metals miners. In the Power Gauge, we measure this group through the SPDR S&P Metals and Mining Fund (XME).
Today, this exchange-traded fund ("ETF") earns a "very bearish" rating in the Power Gauge. And not a single stock in XME gets a "bullish" or "very bullish" rating right now. Take a look...
Over the entirety of 2024, XME lost about 5%. On the other hand, the S&P 500 Index soared 23%. That's massive underperformance. And with such a poor rating, the Power Gauge sees more pain ahead for XME.
But we can take it a step further. Today, I want to draw your attention to gold miners specifically...
Last year, the VanEck Gold Miners Fund (GDX) – which tracks this group of stocks – gained about 9%. Zooming in over the past six months, GDX has fallen about 4%.
Considering how much gold prices soared in 2024, this should get your attention...
In fact, gold kept up with the broad market's extreme performance last year. The SPDR Gold Shares (GLD) – the largest physically backed gold ETF in the world – soared 27% in 2024.
Despite that, gold mining stocks lagged behind. And right now, GDX earns a "very bearish" rating in the Power Gauge...
So, the price of gold has surged over the past year. But the market wants nothing to do with gold miners.
That's an extreme disconnect. It means that gold stocks are unusually hated right now.
This is especially interesting because soaring gold prices should mean that gold miners' profits are soaring, too. But the market just isn't interested in these stocks right now.
Now, if you have a contrarian bone in your body, you might already have your brokerage account open to make a bet on this setup. But this is where the Power Gauge can provide us with extra support...
That's because our system doesn't rely on any single factor to make its determination. It measures factors spread across four distinct categories.
Regular readers know these categories – they are Financials, Earnings, Technicals, and Experts. So with the help of the Power Gauge and its number crunching, we don't need to try to "catch a falling knife" here.
Of course, changes in trends happen eventually. Nothing stays as hated as gold mining stocks forever.
When that trend change starts... the Power Gauge will help us spot it.
So in 2025, I'll be keeping a close eye on this group of stocks. And I recommend you do the same.
Good investing,
Vic Lederman
Market View
Major Indexes and Notable Sectors
# Hld: Bullish Neutral Bearish
Dow 30
+0.01%
10
12
8
S&P 500
+0.59%
66
262
168
Nasdaq
+1.15%
21
57
22
Small Caps
+0.04%
360
1074
468
Bonds
-0.44%
Information Technology
+1.27%
15
46
8
— According to the Chaikin Power Bar, Large Cap stocks are more Bearish than Small Cap stocks. Major indexes are mixed.
* * * *
Sector Tracker
Sector movement over the last 5 days
Energy
+3.02%
Communication
+1.86%
Information Technology
+1.83%
Health Care
+1.3%
Utilities
+0.61%
Industrials
+0.39%
Financial
+0.33%
Discretionary
+0.32%
Materials
-0.06%
Real Estate
-0.2%
Staples
-1.1%
* * * *
Industry Focus
Capital Markets Services
19
41
2
Over the past 6 months, the Capital Markets subsector (KCE) has matched S&P 500 performance. Its Power Bar ratio, which measures future potential, is Very Strong, with more Bullish than Bearish stocks. It is currently ranked #2 of 21 subsectors.
Top Stocks
GS
The Goldman Sachs Gr
HOOD
Robinhood Markets, I
FHI
Federated Hermes, In
* * * *
Top Movers
Gainers
MU
+10.45%
SMCI
+9.36%
TER
+7.2%
ALGN
+5.1%
KLAC
+5.07%
Losers
AXON
-5.05%
PLTR
-4.97%
ESS
-4.03%
BXP
-3.9%
LW
-3.78%
* * * *
Earnings Report
Reporting Today
Rating
Before Open
After Close
AYI
INSP
No earnings reporting today.
Earnings Surprises
No significant Earnings Surprises in the Russell 3000.
* * * *
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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.
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