The Power Gauge's Take on This Market Plunge

Investing isn't getting any easier, folks. If you're reading this essay, you likely know all about the broad market's struggles... [Chaikin PowerFeed]( The Power Gauge's Take on This Market Plunge By Marc Chaikin, founder, Chaikin Analytics Investing isn't getting any easier, folks. If you're reading this essay, you likely know all about the broad market's struggles... The S&P 500 Index is down roughly 24% so far this year. That's brutal. And the thing is... what's happening "in between" is adding extra challenges for investors. You see, the S&P 500 bottomed at just less than 3,670 in mid-June. That was a little more than three months ago. And after that happened, a massive "bear market rally" unfolded... The S&P 500 soared 17% off its low. It closed at more than 4,300 in mid-August. Importantly, it took two whole months for that bear market rally to peak... That was two months of building optimism. And it was two months for individual investors to get too comfortable. You know what happened next... The S&P 500 is down around 15% from the peak of that bear market rally. It just made another low for 2022 yesterday. And pessimism is the reigning emotion right now. For the contrarians among us, this might look like an opportunity. After all, how often are you able to buy the broad market at roughly 24% below its high? Well, this is exactly why I created the Power Gauge... This one-of-a-kind system is the barrier between me and my emotions. And whether I like it or not, it provides me with the unvarnished truth. So today, let's take a closer look at that truth. And let's use it to help us parse what to do next... Recommended Links: [[RECAP] Last Week's Severe Crisis Warning]( Marc Chaikin helped build Wall Street. Joel Litman spent his career denouncing it. But they both agree about the ONE financial crisis that threatens your wealth more than anything else today... plus the EXACT step to take with your money to protect yourself and see 5X potential gains. Don't get blindsided - [see what's coming and how you need to prepare immediately, right here](. [Huge Recession Loophole (See These Charts)]( Amid today's market turmoil, THIS is one of the biggest and most bullish opportunities today: A red-hot sector with almost unlimited pricing power and a history of outperforming in recessions. It's also the sector where our good friend Dr. David Eifrig spent half his professional life. Meaning he's extremely qualified to spot world-class opportunities today. [Take a look at the evidence here](. Now, regular Chaikin PowerFeed readers know [I recently wrote about newly "bullish" sectors]( in the Power Gauge. But the market's latest drop caused the system to flash caution signs... Several market sectors are currently "neutral+" as the decline rages on. That means the Power Gauge wants to assign "bullish" ratings to these sectors. But since they've fallen below their long-term trend lines, it's telling us to be careful for now. Do I believe that these sectors will turn "bullish" again in the near future? Yes, absolutely. But today, I want to call your attention to the state of the broad market... No matter how you feel about it, the S&P 500 is the broad market benchmark that most investors use. It's also how most investors get the majority of their exposure to stocks. After all, just about every large-cap exchange-traded fund these days is an analog of the S&P 500. So with that in mind... what does the Power Gauge think of the S&P 500 today? There's no getting around the reality of this situation. It's rough... As of yesterday's close, only 12 stocks in the S&P 500 received "bullish" or better ratings. That means the Power Gauge sees big outperformance potential in the near term with only 12 out of roughly 500 stocks. That's only about 2%. And that's not all we know... The Power Gauge is also "bearish" or worse on 117 stocks in the S&P 500 today. And the rest are stuck in "neutral" territory. Now, I'm thankful to have that list of 12 "bullish" opportunities. But when it comes to the broad market, we need to face an uncomfortable truth right now... This is simply not the time to make a big contrarian bet. At least in the short term, the market could easily continue falling from here. Only a handful of stocks are pushing against this decline. And no historical truism tells us that a drop of roughly 25% is a guaranteed bottom. Things can always get worse. So for now, stay patient. Seek out the opportunities that do exist. And make sure you're using tools that keep your emotions in check... For me, that's the Power Gauge. Good investing, Marc Chaikin P.S. At its core, the Power Gauge is a critical tool for figuring out when to get in and out of any given stock. And with all of this year's volatility, timing is more important than ever. But the thing is... with more tools at your side, you'll only strengthen your odds of success. That's a big reason why I recently teamed up with Joel Litman, the head of our corporate affiliate Altimetry. Using his firm's proprietary approach to accounting, the Altimeter finds the stocks with the greatest chances of soaring – no matter what the broad market does. Joel and I explained everything you need to know about the current market in a special online event last week. But you're not too late... [Watch a replay of the event right here](. Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 -1.06% 0 24 6 S&P 500 -0.95% 12 370 117 Nasdaq -0.41% 3 70 27 Small Caps -1.89% 181 1163 513 Bonds -1.91% — 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] WYNN +11.99% [rating] LVS +11.81% [rating] COST +2.98% [rating] GNRC +2.84% [rating] WTW +1.59% Losers [rating] DISH -6.12% [rating] BKR -5.89% [rating] AES -5.48% [rating] HAL -5.17% [rating] LUMN -5.17% * * * * Earnings Report Reporting Today Rating Before Open After Close JBL, SNX No earnings reporting today. Earnings Surprises No significant Earnings Surprises in the Russell 3000. * * * * Sector Tracker Sector movement over the last 5 days Staples -2.68% Health Care -3.72% Information Technology -5.07% Utilities -6.58% Industrials -6.81% Communication -7.68% Financial -8.12% Discretionary -8.62% Materials -8.64% Real Estate -8.67% Energy -11.49% * * * * Industry Focus Innovative Technology Services 11 41 43 Over the past 6 months, the Innovative Technology subsector (XITK) has underperformed the S&P 500 by -18.96%. Its Power Bar ratio, which measures future potential, is Very Weak, with more Bearish than Bullish stocks. It is currently ranked #8 of 21 subsectors and has moved up 7 slots over the past week. Indicative Stocks [rating] RBLX Roblox Corporation [rating] SNAP Snap Inc. [rating] SHOP Shopify Inc. * * * * 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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