Rebels Get Glory... But Followers Get Money

Defying convention makes for great fiction... [Chaikin PowerFeed]( Rebels Get Glory... But Followers Get Money By Marc Gerstein, director of research, Chaikin Analytics Defying convention makes for great fiction... Legendary playwright William Shakespeare's Romeo and Juliet is about a pair of young lovers who do just that. They go against their two families' wishes and fall in love. In the end, Shakespeare's masterpiece became one of the greatest pieces of fiction ever written... And 425 years later, it's still performed in theaters all over the world. But be careful... Fictional heroes often end up dead. Just think about Romeo and Juliet... Despite their incessant love, they suffered that fate. The same thing can happen to rebels in the investing world – figuratively speaking, of course... Recommended Links: [January 13 will change everything]( Man who called the 2020 Crash to the very week now predicts the market will see a massive move in early 2022. If you know what's coming to America, you could double your money 10 different times, without buying a single stock, as he's already shown. [Click here to learn more](. [I Found THE ANSWER to Retirement]( I never worry about my retirement income, no matter what happens with COVID-19, politics, or the markets. My money's practically guaranteed by law. And now, a once-in-a-generation opportunity to see 700%+ potential in my favorite strategy just opened again. [I explain everything right here.]( The rebel in the markets is the "bottom up" investor. He wants great companies whose shares are reasonably priced... And he couldn't care less what business they're in. I can't say you should never take this approach. I do it. As investors, it's in our DNA. But it's critical to balance that rebellious approach by also being a follower... I'm talking about a "top down" investor. In this mindset, I also search for great companies at reasonable prices... But first, they must come from within strong industries or sectors. Let me show you what I mean, using semiconductors... Semiconductors (or "chips") are the brains behind electronic gadgets. They've powered computers and smartphones for decades. They're electrical conductors (such as copper) that are affixed to insulating material (such as ceramic). And growth is accelerating these days... Electronic intelligence is invading formerly staid areas such as cars, household appliances, and remote sensing. Plus, the evolution of these devices means we'll continually require better chips to support upgraded capabilities. Despite this technological revolution, every chipmaker isn't always a "buy"... Stock prices sometimes rise too far, too fast. Product cycles and competitive dynamics ebb and flow, too. Demand, pricing, and chipmakers' profits fluctuate as a result. And over the past couple of years, supply constraints during the COVID-19 pandemic plagued the industry. Fortunately, we don't need to be a rebel who defies convention to search for a winner. Instead, we can be a follower and use an investment "hack" to figure out what to buy... We can look at our Power Gauge system's rankings for exchange-traded funds (ETFs) that specialize in semiconductor stocks. Here's how everything breaks down right now... [Chaikin PowerFeed] These rankings reflect company fundamentals, stock valuations, and the behavior of investors who act based on assumptions about the future. And in short, the data tells us that all of these ETFs are buyable right now. But we can do even better with another "hack" from the Power Gauge... You see, the portfolios of ETFs are usually weighted by market cap. That means the most money from ETF investors is put into the biggest companies... They get the biggest allocations. We can take advantage of this setup to outperform the ETFs. For example, we could cherry-pick better-but-smaller stocks within these funds. We could also own the "core" ETFs, as well as "satellite" investments in the best individual stocks. In fact, with the help of the Power Gauge, I found two attractive opportunities in semiconductors... Our proprietary system is "very bullish" on both of them right now. ON Semiconductor (ON) makes chips used for power management and in sensors. Increasing acceptance of electronics in vehicles is an important growth area for the company. It's also benefitting from strength in chips for other areas – such as factory automation and energy infrastructure. When it comes to end markets, Alpha and Omega Semiconductor (AOSL) touches many of the usual bases... It makes chips for smartphones, computers, home appliances, and industrial automation. The company distinguishes itself through its ability to combine two types of chips – "integrated circuits" that include different kinds of logic and "discrete" chips that focus on a single task. It can innovate efficiently by mixing and matching from its stable of offerings. These are the kinds of opportunities that top-down investors can find. Sure, rebels – bottom-up investors – can get a lot of glory and attention if they're right. But followers like us – top-down investors – can also succeed... And we can do it with less worry and sweat. Remember, in the end, it doesn't matter how you get there... Our goal is to make money. Good investing, Marc Gerstein Market View Major Indexes % Hld: Bullish Neutral Bearish Dow 30 -0.48% 10 19 1 S&P 500 -0.11% 129 309 59 Nasdaq -0.07% 30 58 13 Small Caps +0.55% 433 944 478 Bonds +0.26% Energy +2.23% 8 11 2 — According to the Chaikin Power Bar, Large Cap stocks are more Bullish than Small Cap stocks. Major indexes are mixed. * * * * Top Movers Gainers [rating] SIVB +7.53% [rating] LW +7.45% [rating] CFG +5.53% [rating] HES +5.47% [rating] KEY +5.11% Losers [rating] HUM -19.37% [rating] BBWI -6.40% [rating] NUE -4.99% [rating] ACN -4.83% [rating] NEE -4.41% * * * * Earnings Report Reporting Today Rating Before Open After Close AYI No earnings reporting today. Earnings Surprises [rating] WBA Walgreens Boots Alliance, Inc. Q1 $1.68 Beat by $0.34 [rating] STZ Constellation Brands, Inc. Q3 $3.12 Beat by $0.34 [rating] CAG Conagra Brands, Inc. Q2 $0.64 Missed by $-0.04 * * * * Sector Tracker Sector movement over the last 5 days Energy +9.30% Financial +4.04% Industrials +1.10% Staples +0.98% Materials -0.92% Discretionary -1.05% Utilities -2.03% Communication -2.97% Information Technology -4.15% Real Estate -4.20% Health Care -4.56% * * * * Industry Focus Oil & Gas Equipment Services 0 18 9 Over the past 6 months, the Oil & Gas Equipment Services subsector (XES) has underperformed the S&P 500 by -23.63%. Its Power Bar ratio, which measures future potential, is Very Weak, with more Bearish than Bullish stocks. It is currently ranked #21 of 21 subsectors. Indicative Stocks [rating] CLB Core Laboratories N. [rating] DRQ Dril-Quip, Inc. [rating] RIG Transocean Ltd. * * * * Chaikin Analytics LLC is not registered as a securities broker-dealer or advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Chaikin Analytics does not recommend the purchase of any stock or advise on the suitability of any trade. The information presented is generic in nature and is not to be construed as an endorsement, recommendation, advice or any offer or solicitation to buy or sell securities or any kind, but solely as information requiring further research as to suitability, accuracy and appropriateness. Users bear sole responsibility for their own stock research and decisions. Read the full disclaimer at [(. You have received this e-mail because you subscribed to PowerFeed, published by Chaikin Analytics. To stop receiving PowerFeed daily, click to [unsubscribe](. For questions about your account or to speak with customer service, call +1 (877) 697-6783 (U.S.), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. Chaikin Analytics 1500 JFK Blvd Suite 220 Philadelphia, Pennsylvania 19102 United States +1 (877) 697-6783