Another Sign of a Healthy Bull Market

If you're still worried about the market making record highs... Don't be. The Power Gauge remains "bullish" on U.S. stocks today. [Chaikin PowerFeed]( Editor's note: If you're still worried about the market making record highs... Don't be. The Power Gauge remains "bullish" on U.S. stocks today. And as we've said time and again so far this year, stocks hitting new highs [doesn't mean a crash is imminent](. You also likely know that we aren't the only ones who see more upside ahead... We've shared similar insights from our friend Brett Eversole. As regular readers know, Brett is the editor of the True Wealth franchise at our corporate affiliate Stansberry Research. Today, we're again turning the Chaikin PowerFeed over to Brett... This essay first appeared in his free DailyWealth e-letter last Thursday, March 14. In it, he explains why he expects stocks to keep rising in the coming months... Another Sign of a Healthy Bull Market By Brett Eversole, editor, Stansberry Research The poster child of the artificial-intelligence boom blew away investors once again... A few weeks ago, Nvidia (NVDA) announced another round of fantastic earnings. And it managed to outpace the already ambitious estimates from investors. Shares rallied 16% the next day. And Nvidia added more than $250 billion to its market cap. It has continued to rally over the past few weeks. In fact, the stock is already up nearly 80% in 2024. And that comes after its 239% rally in 2023. You might worry that the stock has moved too far, too fast. Even worse, you might fear that the overall market is on shaky ground. You might think that the massive outperformance of a few mega-cap stocks is hiding a weakening bull run. It's a reasonable fear. But once you dig deeper, you'll see that's not a big concern... You see, most stocks are moving higher right now – not just a few. And it means the market's uptrend will likely continue... Recommended Links: ['This One Breakthrough Could Save Your Life – It Saved Mine']( It kills 1,300 Americans a day and half a million per year. There's zero question someone very close to you is affected – HALF of Americans are. Now, after 50 years of false promises and dangerous frauds, suddenly there's a cure. Not a treatment – a cure. The market opportunity is billions of people worldwide, and it has barely reached ANYONE yet. If this sounds hard to believe, listen to this real story – straight from a 10-year employee at our corporate affiliate Stansberry Research – about the breakthrough that saved his life. [This is extremely personal](. [New York Millionaire Issues the Most Serious Message of His Career]( He's a highly successful hedge-fund manager who has been profiled by CNBC and the Wall Street Journal... has been on 60 Minutes multiple times... and is friends with 20-plus billionaire wealth managers. And today, he's stepping forward with a strange new warning. In fact, he says it's crucial you hear this message before you put a single dollar into stocks, mutual funds, or index trackers. [Here's everything you need to know](. Nvidia's blowout earnings are making it feel like 2023 all over again. The so-called "Magnificent Seven" soared last year. And as you'll recall, this group of stocks accounted for most of the gains in the overall market. These tech titans have gotten so big and so important that a lot of folks are worried. Typically, if only a few mega-cap stocks are rising – and everything else is falling – it's a terrible sign for the market. But we're not seeing that today... One way to see the breadth in the current rally is through the S&P 500 Equal Weight Index. This index gives powerful insight into the overall market's health. Instead of weighting stocks by their market caps – like the S&P 500 Index normally does – it gives each stock the same weight. For example, the Magnificent Seven stocks make up a staggering 29% of the S&P 500 today. But they make up just 1.4% of the Equal Weight Index. If only the largest stocks rally, then the Equal Weight Index won't move higher. But that's not the case today. As you can see, this index is near an all-time high as well... Most stocks are rallying right now. What's more, the Equal Weight and S&P 500 indexes have already been hitting new 52-week highs together. That means stocks will likely keep rallying in the months ahead. To see it, I looked at how the overall market performed after every instance of this combination going back to 1991. Take a look... The market goes through ups and downs. But it's a great long-term vehicle for building wealth. The S&P 500 has typically returned 8.6% per year since 1991. We can do even better when both the S&P 500 and Equal Weight indexes hit new 52-week highs at the same time, though. That setup has led to 5.8% gains in six months and 10.9% gains over the following year. The consistency of these gains is impressive, too. Stocks were higher 82% of the time after six months and 89% of the time after a year. That trend tells a compelling story... The biggest companies might be getting all the headlines right now. Just look at Nvidia's blowout earnings. The report certainly got a lot of attention. But the Magnificent Seven aren't the only stocks rallying today. Most of the market has been rising. This rally is healthy. And according to history, it's wise to own stocks right now. Good investing, Brett Eversole Editor's note: We've occasionally featured insights from DailyWealth. But if you don't already receive this e-letter, you're missing out... Brett and his colleagues share insights on the day-to-day opportunities they see in the markets. And they help their readers safely – and steadily – build a lifetime of wealth. Just like the PowerFeed, you can receive DailyWealth for free. It's delivered in the morning each weekday that the markets are open. Learn more about it and sign up [right here](. Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 -0.8% 13 17 0 S&P 500 -1.03% 181 258 58 Nasdaq -1.19% 34 53 13 Small Caps +0.17% 452 1069 389 Bonds -0.03% — 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 +3.84% Materials +1.62% Staples +0.49% Financial +0.47% Industrials -0.21% Communication -0.38% Utilities -0.45% Health Care -0.73% Information Technology -0.84% Discretionary -1.25% Real Estate -2.81% * * * * Industry Focus Regional Banking Services 49 83 3 Over the past 6 months, the Regional Banking subsector (KRE) has underperformed the S&P 500 by -5.50%. However, its Power Bar ratio, which measures future potential, is Very Strong, with more Bullish than Bearish stocks. It is currently ranked #7 of 21 subsectors and has moved down 2 slots over the past week. Top Stocks [rating] BPOP Popular, Inc. [rating] LOB Live Oak Bancshares, [rating] IBCP Independent Bank Cor * * * * Top Movers Gainers [rating] CSGP +8.32% [rating] STLD +4.34% [rating] CMI +4.27% [rating] NUE +3.51% [rating] GM +3.33% Losers [rating] JBL -16.49% [rating] ADBE -13.67% [rating] ULTA -5.21% [rating] NOW -4.56% [rating] HPE -4.56% * * * * Earnings Report Reporting Today Rating Before Open After Close DG, SAIC No earnings reporting today. Earnings Surprises [rating] JBL Jabil Inc. Q2 $1.68 Met estimate * * * * 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 {EMAIL}. For questions about your account or to speak with customer service, call [+1 (877) 697-6783 (U.S.)](tel:18776976783), 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. © 2024 Chaikin Analytics, LLC. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Chaikin Analytics, LLC. 201 King Of Prussia Rd., Suite 650, Radnor, PA 19087. [www.chaikinanalytics.com.]( 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.