A Big Winner in a 'Sea of Red'

There's an old joke among traders... [Chaikin PowerFeed]( A Big Winner in a 'Sea of Red' By Carlton Neel, CEO, Chaikin Analytics There's an old joke among traders... Person A asks, "Why did the market go down?" Person B replies with the honest answer, "There were more sellers than buyers." You see, pundits and so-called "experts" always try to come up with some immediate "cause" for market movement. But ultimately, it's all about buyers and sellers. With more buyers, the market goes up. And with more sellers, it goes down. We've seen that play out across the market over the past couple of months... The S&P 500 Index is down around 4.5% in that span. And tech stocks have suffered even worse... The tech-heavy Nasdaq Composite Index is down roughly 9% over the same period. You can try to explain these declines any way you want. In the end, though, it was simple... There were more sellers than buyers. But importantly, even in a "sea of red" like that... you can still find winners. In fact, two months ago, we covered all the details about one of these winners in waiting in this publication. It's up around 20% since then, while the broad market is down. So today, I'm taking a small victory lap. But even better, you'll see that our Power Gauge system still rates this opportunity as "very bullish" right now... Recommended Links: [Here's How You BEAT Inflation (Starting TODAY)]( The market is deep into "bubble" territory. And no matter when the next crash arrives, out-of-control inflation is already here... RIGHT NOW. It's at the highest level in 40 years, and could soon surge past 10%. But there's one specific group of stocks that could protect your savings and likely outperform everything else for the next 5-10 years. [Click here for full story](. [How I Saved My Retirement... and Stopped Worrying About Money Forever]( I never worry about my retirement income, no matter what happens with politics or the markets. I've got legal obligations on my money. Now, a once-in-a-generation opportunity to see 700%-plus potential in my favorite strategy just opened again. [I explain everything right here](. On December 10, I wrote an essay titled, "[How the Mainstream Media Is Getting Big Oil Wrong]( In it, I laid out the case for why energy stocks still had "plenty of upside ahead." Specifically, I focused on the Energy Select Sector SPDR Fund (XLE)... XLE's top two holdings are household names – ExxonMobil (XOM) and Chevron (CVX). It also includes other oil and gas producers, like EOG Resources (EOG) and ConocoPhillips (COP). And it includes oil-services companies, like Schlumberger (SLB) and Halliburton (HAL). So as you can see, it's a great representative of Big Oil. On December 10, the day of our essay, XLE closed at $57.24 per share. And it closed yesterday at $68.42 per share – a roughly 20% increase in two months. That's pretty amazing when you consider the broad market's performance in that span. Finding this opportunity was easier than you might imagine, too... I used the Power Gauge. Our proprietary system rated XLE as "very bullish" in early December... And it still does today. In addition to this top rating, the Power Gauge's Chaikin Money Flow reading shows us that professional investors are now jumping into the energy trade as well. And the Power Gauge is "bullish" or better on 17 of the 21 stocks in XLE right now – with zero "bearish" grades. In short, the Power Gauge sees further upside in the energy sector. Now, maybe you think that energy stocks are boring. Or perhaps you're looking to catch a bounce from the recent tech wreck. Well, I encourage you to take your cue from the Power Gauge today instead... It's picking winners out of a sea of red – like XLE. This opportunity is already up roughly 20% since I first shared it with PowerFeed readers about two months ago. But that doesn't mean you've missed out on this winner. Check it out. Good investing, Carlton Neel Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 -1.43% 8 20 2 S&P 500 -1.79% 101 339 59 Nasdaq -2.26% 9 78 12 Small Caps -1.48% 208 1123 540 Bonds -1.59% — According to the Chaikin Power Bar, Small Cap stocks are more Bearish than Large Cap stocks. Major indexes are mixed. * * * * Top Movers Gainers [rating] DIS +3.35% [rating] MU +3.29% [rating] K +3.11% [rating] IFF +2.87% [rating] ORLY +2.85% Losers [rating] LUMN -15.52% [rating] IPG -8.77% [rating] ZBRA -7.78% [rating] MSI -6.98% [rating] PHM -5.64% * * * * Earnings Report Reporting Today Rating Before Open After Close D NWL, UAA No earnings reporting today. Earnings Surprises [rating] DDOG Datadog, Inc. Q4 $0.20 Beat by $0.09 [rating] EXPE Expedia Group, Inc. Q4 $1.06 Beat by $0.41 [rating] ILMN Illumina, Inc. Q4 $0.75 Beat by $0.26 [rating] ALNY Alnylam Pharmaceuticals, Inc. Q3 $-1.69 Missed by $-0.43 [rating] DXCM DexCom, Inc. Q4 $0.68 Missed by $-0.17 * * * * Sector Tracker Sector movement over the last 5 days Discretionary +3.64% Financial +3.17% Materials +0.95% Energy +0.85% Information Technology +0.51% Communication -0.21% Industrials -0.30% Health Care -0.55% Staples -1.71% Real Estate -2.72% Utilities -2.93% * * * * Industry Focus Software & Services 11 121 49 Over the past 6 months, the Software & Services subsector (XSW) has underperformed the S&P 500 by -13.64%. Its Power Bar ratio, which measures future potential, is Very Weak, with more Bearish than Bullish stocks. It is currently ranked #15 of 21 subsectors. Indicative Stocks [rating] MSTR MicroStrategy Incorp [rating] FOUR Shift4 Payments, Inc [rating] AFRM Affirm Holdings, Inc * * * * 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