These Investors Missed 28% Gains in Less Than Four Months
We've seen some clearer skies for investors recently... Just over a month ago, the U.S. got involved in the war between Israel and Iran. Our military had just bombed Iranian nuclear sites.
These Investors Missed 28% Gains in Less Than Four Months
By Marc Chaikin, founder, Chaikin Analytics
We've seen some clearer skies for investors recently...
Meanwhile, we had seen limited progress on tariffs. President Donald Trump's administration was talking tough on trade deals – even with our allies.
By now, Israel and Iran reached a ceasefire. For investors, the conflict has quickly faded in the rearview mirror.
And last week, the Trump administration reached trade agreements with Japan and the Philippines. Earlier this week, the administration also reached a deal with Europe that includes a 15% tariff on European goods – the same as Japan.
A 15% tariff isn't exactly great news for American consumers. But the deals provide some much-needed clarity for businesses.
As I told paid subscribers to our Power Gauge Investor newsletter back in April...
There's no clear framework for America's future trade agreements. As a result, companies will be super cautious with their supply chains, their growth plans, and virtually all aspects of their operations. No one wants to commit to major shipments when the tariff outlook is unpredictable.
As you know, investors hate uncertainty. And progress on trade deals helps relieve that.
However, many investors are still sitting on the sidelines – and missing the gains...
In May, Dr. David "Doc" Eifrig became CEO of MarketWise, the parent company of Chaikin Analytics and its affiliates. He spent the summer writing a letter to every reader – about where he stands... and what he plans to do. Some of this will be difficult to hear. But facing the facts with clear eyes is the first step in any plan to move forward. Please make sure you read Doc's letter as soon as possible.
President Donald Trump's economic blueprint is about to go live, and the deadline is fast approaching. A new federal plan could legally unlock $100 trillion in U.S. resources... and one $10 stock could lead the charge. Former hedge-fund manager Whitney Tilson explains how to act now, before this hits the headlines.
The Power Gauge Sees More Upside for Stocks
The S&P 500 Index is right around all-time highs. And since its closing low around 4,983 on April 8, the index is up roughly 28%.
It's a staggering turnaround in a few short months.
As regular readers know, we measure the broad market in the Power Gauge with the SPDR S&P 500 Fund (SPY). And right now, SPY earns a "bullish" rating.
That's great news. It means more opportunities to buy strong stocks poised for more upside ahead.
But folks, don't forget that incredible gains are still possible even when the markets are uncertain...
In June, Power Gauge Investor subscribers booked a 39% gain in military supplier Kratos Defense & Security Solutions (KTOS) in roughly three months.
And just last week, Power Gauge Investor subscribers also took profits on electrical-connector maker Amphenol (APH). This position worked out wonderfully for us – generating a 65% gain in just about a year.
The point is simple...
Sure, we've been in a challenging environment.
But that doesn't mean the market has frozen. Stocks are still trading. And some of them are making big moves.
As I said, the S&P 500 is right around new highs again. And when it comes to individual stocks in SPY, the Power Gauge sees lots of "bullish" opportunities ...
Right now, this index-tracking fund holds 122 companies with "bullish" or "very bullish" ratings. That's great.
But at the same time, SPY also holds 107 stocks with "bearish" or "very bearish" ratings. So there are still plenty of stocks that look poised for downside ahead.
That means our job is to find what's working... and avoid what's not.
That's true in a strong market. But it's also true in an uncertain market like we've been in recently.
So, if you've been sitting on the sidelines... you're missing out on opportunities.
But again, the market has soared off its April bottom. It's up about 28% since then. And we've been seeing storm clouds of uncertainty part.
If you're invested, good. If you're not... you risk this market passing you by.
Good investing,
Marc Chaikin
Marc Chaikin: 'Ask Me Anything'
In August, Marc Chaikin is doing something he has never done before. After a wild six months for stocks, Marc knows you may have many lingering questions. So, he'll be going on camera – NOT to discuss a specific opportunity, but instead to devote his time to answering YOUR most pressing questions.
But to do that, we need to hear from YOU. If something is keeping you up at night (whether it worries or excites you), we want to hear from you. Marc will answer as many questions as possible during his "Ask Me Anything" event next month.
— According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks are somewhat Bullish. Major indexes are all bullish.
* * * *
Sector Tracker
Sector movement over the last 5 days
Information Technology
+1.69%
Energy
+1.0%
Utilities
+0.95%
Financial
-0.75%
Industrials
-1.13%
Consumer Staples
-1.45%
Consumer Discretionary
-1.48%
Health Care
-1.53%
Real Estate
-1.63%
Communication
-1.84%
Materials
-3.68%
* * * *
Industry Focus
Oil & Gas Equipment Services
2
13
16
Over the past 6 months, the Oil & Gas Equipment Services subsector (XES) has underperformed the S&P 500 by -21.78%. Its Power Bar ratio, which measures future potential, is Very Weak, with more Bearish than Bullish stocks. It is currently ranked #20 of 21 subsectors and has moved up 1 slot over the past week.
Indicative Stocks
AESI
Atlas Energy Solutio
ARIS
Aris Water Solutions
AROC
Archrock, Inc.
* * * *
Top Movers
Gainers
GNRC
+19.61%
TER
+18.88%
HUM
+12.4%
EA
+5.73%
BG
+5.19%
Losers
IEX
-11.29%
ODFL
-9.66%
FCX
-9.46%
TT
-8.4%
GEHC
-7.82%
* * * *
Earnings Report
Earnings Surprises
ALL The Allstate Corporation
Q2
$5.94
Beat by $2.68
FTV Fortive Corporation
Q2
$0.90
Beat by $0.31
PTC PTC Inc.
Q3
$1.64
Beat by $0.43
META Meta Platforms, Inc.
Q2
$7.14
Beat by $1.28
HSY The Hershey Company
Q2
$1.21
Beat by $0.21
* * * *
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