It Knew Before Cathie Wood Did

I hope you didn't listen to Cathie Wood 11 months ago... [Chaikin PowerFeed]( It Knew Before Cathie Wood Did By Pete Carmasino, chief market strategist, Chaikin Analytics I hope you didn't listen to Cathie Wood 11 months ago... The Ark Investment Management founder was a guest on CNBC's Closing Bell on March 8, 2021. During the interview, she declared that "the bull market is strengthening, and that will play to our benefit over the longer term." Now, Wood was partly correct. The bull market has lived on. Even after pulling back to start this year, the benchmark S&P 500 Index is still up 17% since then. But the rest of her comment was a biased statement. Some people might even call it "[confirmation bias]( Others might call this a manager just "talking her book." In case you don't know, Wood is the poster child for the tech-stock binge of the past few years. And frankly, she earned that label. Her flagship ARK Innovation Fund (ARKK) returned a staggering 677% between the start of 2015 and its peak in February 2021. Her voice carries weight for ARKK investors. So when she said on CNBC in March 2021 that she was "more and more optimistic" despite the exchange-traded fund's ("ETF") 30% drop from its peak at the time, they listened. The problem is... Wood was wrong. But one unbiased observer spotted trouble near the top... Recommended Links: [TIME TO PANIC?]( Whether you're in cryptos or stocks... it's been a brutal start to the year for investors. That is why you NEED a plan that takes all the emotion out of the equation... and allows you to sleep soundly at night. [Here's exactly what we recommend you do today](. [Grave Warning: 'Huge Vulnerability for the U.S.']( It all boils down to ONE single point of failure. Most don't realize what's happening, but this could wreak havoc on millions of Americans. Meanwhile, the team who called the bankruptcy of Fannie Mae and Freddie Mac sees a stunning twist of events that could dramatically affect you and your money. [Full story here](. As its name implies, the ARK Innovation Fund looks to invest in companies at the forefront of innovation. Its holdings include Teladoc Health (TDOC), Zoom Video Communications (ZM), Roku (ROKU), Coinbase Global (COIN), Robinhood Markets (HOOD), and of course, Tesla (TSLA). In recent years, many of ARKK's holdings skyrocketed to levels that were way overvalued by any standard. And the COVID-19 pandemic only supercharged this performance... ARKK became the technical investing vehicle of the stay-at-home, work-from-home social shift that occurred during the initial lockdown phase of the pandemic. It soared 314% from the market's bottom in mid-March 2020 through its peak about 11 months later. That's roughly when the unbiased observer – our Power Gauge system – spotted trouble. Take a look... [Chaikin PowerFeed] On February 22, 2021, the Power Gauge downgraded ARKK from "bullish" to "neutral." A month later, the Power Gauge downgraded ARKK again to "bearish." And finally, in May, the system put the final nail in the coffin and downgraded ARKK to "very bearish." ARKK is now down 56% from its peak. And it's down 37% since Wood told investors 11 months ago that they didn't have anything to worry about. That's an awful experience. By now, you might be wondering how the Power Gauge could see what Wood didn't... The Power Gauge investigates every U.S.-listed ETF and rates the individual stocks inside them. It puts all the data together to come up with an overall rating from "very bearish" to "very bullish." And perhaps more importantly, it updates these ratings every day. That way, investors can see in real time when it's best to steer clear of ETFs like ARKK. Now, innovative technology stocks like ARKK probably won't stay down forever. Betting on innovation is genuinely a good idea. But riding something down 50% or more? That's something I want no part of. So I'm glad the Power Gauge helped us spot this innovation meltdown early – before practically everyone else. It's why this unbiased observer is the best tool in my toolbox. Good investing, Pete Carmasino Editor's note: Helping folks avoid ETFs like ARKK is only a small part of the Power Gauge's value. It also levels the playing field for everyday investors with a "cheat sheet" on more than 4,000 stocks. You can see at any moment if a stock is "very bullish"... "very bearish"... or somewhere in between. Get a full walk-through from founder Marc Chaikin [right here](. Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 -1.42% 8 20 2 S&P 500 -2.32% 81 342 74 Nasdaq -4.05% 9 74 16 Small Caps -1.85% 159 1158 544 Bonds -0.78% — According to the Chaikin Power Bar, Small Cap stocks are more Bearish than Large Cap stocks. Major indexes are mixed. * * * * Top Movers Gainers [rating] DXC +13.75% [rating] TMUS +10.22% [rating] HUM +6.23% [rating] BDX +5.42% [rating] RL +3.53% Losers [rating] FB -26.39% [rating] XYL -12.03% [rating] QRVO -10.33% [rating] ETSY -8.03% [rating] AMZN -7.81% * * * * Earnings Report Reporting Today Rating Before Open After Close AON, BMY, CBOE, REGN FE APD, ETN RCL No earnings reporting today. Earnings Surprises [rating] AMZN Amazon.com, Inc. Q4 $27.75 Beat by $24.32 [rating] CG The Carlyle Group Inc. Q3 $2.01 Beat by $0.83 [rating] F Ford Motor Company Q4 $0.26 Missed by $-0.15 [rating] PRU Prudential Financial, Inc. Q4 $3.18 Beat by $0.83 [rating] HIG The Hartford Financial Services Group, Inc. Q4 $2.02 Beat by $0.50 * * * * Sector Tracker Sector movement over the last 5 days Information Technology +5.01% Real Estate +4.62% Health Care +3.84% Financial +3.30% Discretionary +2.89% Energy +2.88% Utilities +2.84% Staples +2.79% Industrials +2.17% Materials +2.15% Communication +0.98% * * * * Industry Focus Oil & Gas Exploration & Production Services 31 24 3 Over the past 6 months, the Oil & Gas Exploration & Production subsector (XOP) has outperformed the S&P 500 by +33.30%. Its Power Bar ratio, which measures future potential, is Very Strong, with more Bullish than Bearish stocks. It is currently ranked #4 of 21 subsectors. Top Stocks [rating] OAS Oasis Petroleum Inc. [rating] WLL Whiting Petroleum Co [rating] REX REX American Resourc * * * * 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