July has been a wild ride... Stocks started off strong – with the S&P 500 Index hitting a fresh all-time high on July 16. Since then, it has dropped roughly 4% in less than two weeks.

These Stocks Are Poised to Soar Next By Marc Chaikin, founder, Chaikin Analytics July has been a wild ride... Stocks started off strong – with the S&P 500 Index hitting a fresh all-time high on July 16. Since then, it has dropped roughly 4% in less than two weeks. The decline is even more striking in the tech-heavy Nasdaq 100 Index. It's down about 8% from its peak on July 10. And some of the biggest names on Wall Street have taken a beating... Nvidia (NVDA) is about 17% off its high last month. Amazon (AMZN) is down roughly 9% from its high earlier this month. And shares of Qualcomm (QCOM) have fallen about 21% from their June high. But amid the volatility, you might have overlooked a major shift in progress... Recommended Links: Critical Update for All Chaikin Analytics Readers On July 30, the CEO of the world's largest independent financial research firm is stepping forward with an urgent announcement. He'll reveal how making just ONE simple change to the way you follow Marc Chaikin's research could dramatically boost your portfolio returns and make you more money. We recommend you get the facts for yourself... His event is 100% free, but you must reserve your spot. New Government Strike Force Patrolling America The government's new Strike Force is patrolling America as we speak – and this time, they're going much further than telling you to wear a mask and stay inside. It has nothing to do with the leadup to November. This is already in motion... and it's escalating quickly. Get the full story and learn how this could impact your money right here while there's still time. For the first time in months, small-cap stocks are beating their larger counterparts. As I mentioned earlier, the market peaked on July 16. So we can break the recent July period into two halves by tracking performance before and after the peak. In the Power Gauge, we use exchange-traded funds ("ETFs") to track different parts of the market... The SPDR S&P 500 Fund (SPY) measures the S&P 500. The Invesco QQQ Trust (QQQ) tracks the Nasdaq 100. Meanwhile, the iShares Russell 2000 Fund (IWM) measures the small-cap Russell 2000 Index. And during both recent periods in July, IWM outperformed SPY and QQQ. Take a look... Small-cap stocks delivered more than double the gains of the other indexes during the early July rally. They also held up better as the market pulled back over the past couple weeks. Traders have a word for this idea. It's called "relative strength." In short, small-caps stocks are showing positive relative strength right now. And that's a huge change from what we've seen over the past year-plus. As you surely know, mega-cap stocks like the so-called "Magnificent Seven" have outperformed everything else lately. Meanwhile, investors have completely ignored small caps. IWM was up just 1% during the first half of 2024. That's a pathetic performance compared with SPY's nearly 15% gain and QQQ's 17% gain.  In other words, IWM exhibited poor relative strength versus the other two indexes. And as you can see in the chart below, small-cap stocks have been underperforming the rest of the market for many months. Here's IWM's one-year chart with some data from the Power Gauge... You'll find the relative strength reading in the first panel below the chart. As you can see, IWM's relative strength has been poor for nearly the entire past 12 months. Aside from a few weeks around the end of last year and start of this year, its relative strength versus the S&P 500 has been negative dating back to early 2023. That's a long stretch of underperformance. It's a clear sign that investors gave up on small-cap stocks over the past year. But notice the circle at the end of that relative strength panel... IWM's relative strength just turned positive for the first time since late last year. In short, the Power Gauge is confirming what we saw from the performance numbers in the table above. And earlier this month, our system turned "very bullish" on IWM. Take a look at this screenshot from the Power Gauge... That's a strong rating. And as you can see, the Power Gauge rates far more of IWM's holdings as "bullish" than "bearish." Keep in mind, the recent stretch of underperformance by small caps is unusual... Most people don't know that smaller stocks historically outperform the rest of the market over the long term. Over the 35-year period from February 1989 to February 2024, small-cap stocks returned 2,062%. Meanwhile, large caps returned 1,664%. That's why the recent relative-strength signal is so exciting... It's a sign the "bigger is better" trend is finally ending. After more than year of underperformance, small caps are spring-loaded. And they're likely to outperform the rest of the market over the coming months – or possibly years. Good investing, Marc Chaikin Market View Major Indexes and Notable Sectors     # Hld:     Bullish     Neutral     Bearish Dow 30 +1.62% 8 18 4 S&P 500 +1.09% 116 313 67 Nasdaq +1.0% 10 61 28 Small Caps +1.65% 741 976 255 Bonds +0.8% Communication Services +1.86% 1 16 2 — According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks are Bullish. Major indexes are mixed. *  *  *  * Sector Tracker Sector movement over the last 5 days Utilities +1.48% Health Care +1.41% Materials +1.35% Financial +1.31% Industrials +1.15% Real Estate +0.54% Staples +0.51% Energy -0.19% Communication -1.67% Information Technology -2.09% Discretionary -2.77% *  *  *  * Industry Focus Semiconductor Services 12 24 3 Over the past 6 months, the Semiconductor subsector (XSD) 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 #8 of 21 subsectors and has moved down 1 slot over the past week. Top Stocks CRUS Cirrus Logic, Inc. AOSL Alpha and Omega Semi NVEC NVE Corporation *  *  *  * Top Movers Gainers MMM +22.99% MHK +19.49% CHTR +16.62% BMY +11.44% NSC +10.91% Losers DXCM -40.66% BIIB -7.15% LHX -5.7% RMD -5.42% DVA -3.57% *  *  *  * Earnings Report Reporting Today Rating Before Open After Close L WELL ON, RVTY EQR, FFIV, HOLX, SBAC MCD No earnings reporting today. Earnings Surprises BMY Bristol-Myers Squibb Company Q2 $2.07 Beat by $0.44 CNC Centene Corporation Q2 $2.42 Beat by $0.33 MMM 3M Company Q2 $1.93 Beat by $0.25 BAH Booz Allen Hamilton Holding Corporation Q1 $1.38 Missed by $-0.14 AVTR Avantor, Inc. Q2 $0.25 Beat by $0.02 *  *  *  * 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 indra21poetra@gmail.com. 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