Avoid This Sovereign Rule Breaker Today

Insiders say the European Central Bank ("ECB") is about to break the No. 1 rule in portfolio management. Ironically, the rule is... don't break the rules. [Chaikin PowerFeed]( Avoid This Sovereign Rule Breaker Today By Karina Kovalcik, senior quantitative analyst, Chaikin Analytics Insiders say the European Central Bank ("ECB") is about to break the No. 1 rule in portfolio management. Ironically, the rule is... don't break the rules. Regular Chaikin PowerFeed readers know that a disciplined approach is critical to investing success. Creating rules – and sticking to them – keeps us from wrecking our wealth. Rules exist to help us create a repeatable process. That way, we can replicate the things that work – and avoid those that don't. Good investors know not to break the rules. And yet, the ECB is about to break the biggest rule of all. More specifically, its transgression involves Germany's financial-stability rules... You see, one of the most important rules for government financial institutions is, "Don't risk the integrity of the financial markets." Put simply, that means countries should make sure money always flows safely and easily through their economies. That basic structure keeps business operating as usual. But the ECB could soon tamper with that foundation. And while the outcome might take time... it could potentially ravage the German economy – and the rest of Europe, too. Recommended Links: ['SELL THIS DOOMED FAANG STOCK IMMEDIATELY']( Wall Street titan Marc Chaikin and world-renowned forensic accountant Joel Litman just delivered an urgent crisis warning... and shared their No. 1 step to take with your money right now to protect yourself. Plus, Marc reveals his No. 1 stock you should SELL immediately. It's a legendary FAANG stock that he says is headed for disaster. [Click here for details before today's opening bell](. [Energy Crisis: Think You're Safe?]( A top analyst says NOBODY is safe from the crazy high energy bills he's forecasting in the weeks and months ahead. It doesn't matter where you live or how much money you have... if you're not ready to deal with what's coming, you could get absolutely blindsided. [See his full warning here](. It all comes down to so-called "reserve amounts." That's how much of your money a bank actually keeps on hand. And this is where financial-stability rules come in... These rules are in place to protect your money. The government tells banks they need to always keep a specific amount of money in reserves. The banks can't lend out that money. The government decides how much money banks need in reserves every day. And when countries head toward uncertain times, the rule is that banks should start increasing their reserves. That's in case more people need to dip into their savings to make ends meet. Given the [energy crisis in Europe]( several countries are facing tough times. And in Germany, some banks are already building up reserves. Despite that, central-banking insiders believe the ECB is about to tell German banks that they don't need to increase their reserves. Seriously. Messing with banks' capital buffers could have long-lasting consequences. In the short term, it allows the banks to lend more easily. But a cold winter – literally and metaphorically – could present a serious challenge for the banks... After all, a lot of Germans might need to quickly access their money as energy costs surge. It also signals a shift to desperation... As an investor, you don't consider breaking your rules until you're at a point of desperation. And if the ECB is willing to risk destabilizing its financial system for a short-term bump in economic activity, it must be very desperate. It makes me wonder what other basic financial-integrity rules the ECB is willing to break. And just like you wouldn't pick a portfolio manager who breaks his own investment rules, you don't want to invest in a region that breaks its own financial rules. Be wary... The ECB is bending the rules for Germany. That's a worrying sign for the German economy and its stock market. Good investing, Karina Kovalcik Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 -1.55% 0 24 6 S&P 500 -1.63% 20 358 121 Nasdaq -1.63% 4 68 28 Small Caps -2.38% 191 1154 511 Bonds +0.41% — According to the Chaikin Power Bar, Large Cap stocks and Small Cap stocks have become strongly Bearish.. Major indexes are all strongly bearish. * * * * Top Movers Gainers [rating] GNRC +3.21% [rating] DPZ +3.08% [rating] IDXX +2.49% [rating] ALGN +2.06% [rating] ALLE +1.59% Losers [rating] APA -11.42% [rating] MRO -10.94% [rating] DXC -9.32% [rating] FANG -8.96% [rating] HAL -8.69% * * * * Earnings Report Reporting Today Rating Before Open After Close No earnings reporting today. Earnings Surprises No significant Earnings Surprises in the Russell 3000. * * * * Sector Tracker Sector movement over the last 5 days Staples -2.73% Utilities -3.64% Health Care -3.64% Information Technology -3.86% Industrials -5.00% Communication -5.81% Financial -6.08% Materials -6.12% Real Estate -7.16% Discretionary -7.29% Energy -10.15% * * * * Industry Focus Homebuilders Services 0 27 8 Over the past 6 months, the Homebuilders subsector (XHB) has underperformed the S&P 500 by -0.27%. Its Power Bar ratio, which measures future potential, is Very Weak, with more Bearish than Bullish stocks. It is currently ranked #20 of 21 subsectors and has moved down 10 slots over the past week. Indicative Stocks [rating] BLD TopBuild Corp. [rating] WHR Whirlpool Corporatio [rating] FND Floor & Decor Holdin * * * * 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](. 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