Volatility Is Back... And That's a Good Thing

Stocks just went on an incredible five-month run... The S&P 500 Index surged roughly 25% from the end of October through the end of March. That's the best five-month performance for the benchmark index since 2020. [Chaikin PowerFeed]( Volatility Is Back... And That's a Good Thing By Marc Chaikin, founder, Chaikin Analytics Stocks just went on an incredible five-month run... The S&P 500 Index surged roughly 25% from the end of October through the end of March. That's the best five-month performance for the benchmark index since 2020. Perhaps more impressively, the S&P 500 didn't suffer a single 2% pullback in that span. A few catalysts led to this strong, steady rally... First, the U.S. economy is in great shape. The latest data from the government showed a 3%-plus annual growth rate in gross domestic product. Meanwhile, unemployment remains historically low. And wages are up roughly 4% over the past 12 months. American consumers keep spending, too. This week's retail-sales data (for the month of March) came in well above expectations. Finally, earnings for S&P 500 companies are still moving higher. Goldman Sachs analysts expect earnings growth of about 8% this year. Until recently, we could've added "expected Federal Reserve interest-rate cuts" to that list. However, all this strong economic data has crushed investors' hopes for a rate cut in June. That's fine by me, though. A strong economy is never bad for investors. But you've probably noticed a side effect of these dampened rate-cut expectations... Recommended Links: [The Ultimate $100 Crypto Investment Right Now]( A massive event coming to the market tomorrow could spark crypto's biggest mania to date. It could also be your last chance to get into the best tiny altcoins with as little as a hundred bucks and still see life-shaping potential gains. Stansberry Research is posting a blueprint and [its No. 1 free crypto pick here](. [Billionaires Now FLOODING Into Gold]( Ray Dalio, John Paulson, and many others all recommend you own gold right now. But did you know there's another huge investor (worth more than all the world's billionaires COMBINED) buying gold by the ton? That's why the best move to make right now could be this little-known gold investment (which you can get started with for just $5.) [Click here for the No. 1 gold recommendation](. In short, volatility is back. Stocks have been a lot more turbulent over the first two and a half weeks of April. On Wednesday, the S&P 500 closed about 4.4% below its all-time high (set on March 28). That's the biggest pullback since October. The Chicago Board Options Exchange's Volatility Index ("VIX") is known as the market's "fear gauge." It's simply a measure of investors' expectations for volatility going forward. If it's rising, it means investors are getting more worried. And if it's falling, it means investors don't have many fears. Today, the VIX helps us see the rising turbulence in the market. It just broke out to a five-month high. Take a look... [Chaikin PowerFeed] As you can see, the VIX has surged over the past few weeks. But you'll also notice that it's trading right around its two-year average of just below 20. In other words... volatility is finally back to a normal level. Following such a long stretch of calmness in the market, a period of volatility makes sense. After all, we all know that stocks don't go up in a straight line forever. Today, the market is more cautious than it has been in months. But my point is simple... That's a good thing. It's a sign of a healthy market. In the short term, we can expect more volatility. The market could experience further declines over the next few weeks as nervous investors sell some of their positions. And as I've said repeatedly, [I'm hoping to see a pullback soon](. Remember, as I wrote in the Chaikin PowerFeed [a little more than a month ago](... The final seven months of presidential-election years (from June 1 to December 31) are often the best-returning months. In 16 of the past 18 presidential-election years, the S&P 500 was up over that span. And in all those instances, the index averaged a 10% gain. That period is fast approaching. But we're not there yet. So a continued pullback in the coming days wouldn't necessarily be a bad thing... A sell-off could create excellent entry points ahead of the next big rally to end the year. Good investing, Marc Chaikin Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 -0.14% 7 22 1 S&P 500 -0.59% 106 305 87 Nasdaq -1.22% 17 66 17 Small Caps -1.03% 269 1160 477 Bonds +1.11% Utilities +2.09% 4 17 9 — According to the Chaikin Power Bar, Small Cap stocks are somewhat more Bearish than Large Cap stocks. Major indexes are mixed. * * * * Sector Tracker Sector movement over the last 5 days Utilities -1.14% Staples -1.25% Health Care -2.22% Industrials -2.4% Communication -2.45% Information Technology -2.86% Materials -2.87% Financial -2.93% Discretionary -3.51% Energy -3.77% Real Estate -4.95% * * * * Industry Focus Retail Services 11 54 13 Over the past 6 months, the Retail subsector (XRT) has outperformed the S&P 500 by +2.37%. However, its Power Bar ratio, which measures future potential, is Weak, with more Bearish than Bullish stocks. It is currently ranked #13 of 21 subsectors and has moved down 1 slot over the past week. Indicative Stocks [rating] WRBY Warby Parker Inc. [rating] EYE National Vision Hold [rating] MNRO Monro, Inc. * * * * Top Movers Gainers [rating] UAL +17.45% [rating] AAL +6.6% [rating] GL +5.44% [rating] DAY +4.68% [rating] PARA +3.64% Losers [rating] JBHT -8.12% [rating] TRV -7.41% [rating] PLD -7.19% [rating] RMD -5.97% [rating] ADSK -5.84% * * * * Earnings Report Reporting Today Rating Before Open After Close ELV, KEY CMA, SMCI, UAL DHI, GPC, MMC, SNA ISRG, NFLX, PPG No earnings reporting today. Earnings Surprises [rating] DFS Discover Financial Services Q1 $1.10 Missed by $-1.90 [rating] USB U.S. Bancorp Q1 $0.49 Missed by $-0.42 [rating] LVS Las Vegas Sands Corp. Q1 $0.78 Beat by $0.16 [rating] PLD Prologis, Inc. Q1 $0.63 Beat by $0.06 [rating] EFX Equifax Inc. Q1 $1.50 Beat by $0.07 * * * * 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}. 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