The 'Bearish' Side of Relative Strength Says Ski Season Is Over

Several years ago, Marc Chaikin created a unique way to measure "relative strength"... It's a proprietary formula. And at Chaikin Analytics, we don't give away our secret sauce. [Chaikin PowerFeed]( The 'Bearish' Side of Relative Strength Says Ski Season Is Over By Pete Carmasino, chief market strategist, Chaikin Analytics Several years ago, Marc Chaikin created a unique way to measure "relative strength"... It's a proprietary formula. And at Chaikin Analytics, we don't give away our secret sauce. But we clearly display this indicator on all the charts in the Power Gauge. It essentially shows the strength of a stock or exchange-traded fund relative to the S&P 500 Index. Here in the Chaikin PowerFeed, we've spent some time talking about positive relative strength – [including yesterday](. But relative strength isn't always positive. It can signal negative trend changes, too. And if you heed these warnings, it can pay off. In fact, one negative relative strength signal is clear today... Ski season is ending. Let me show you what I mean... Recommended Links: [Ultra-Low Risk. 10x Upside Potential. Too Good Not to Share.]( The biggest winner (by far) of 2023 could be a small group of ultra-low-risk stocks the world can't live without... that suddenly have as much as 10x upside or more... no matter what the market does next. Until tomorrow only, [get the full details here](. [A Financial Fraud BIGGER Than FTX and Madoff?]( A man who called the 2008 crash reveals a financial fraud that could be BIGGER than FTX and Bernie Madoff combined... and could soon impact millions of Americans. [Click here for details](. Specifically, we're looking at ski-resorts operator Vail Resorts (MTN). In case you didn't know already, Vail is a beautiful town in Colorado. And the company's flagship Vail Ski Resort is the third-largest single-mountain ski resort in the U.S. It's a "must visit" for local and international travelers alike. Overall, the company owns more than 10 ski resorts in the U.S., Canada, and Australia. It also owns or manages luxury hotels near its ski resorts, as well as other resort properties. But the thing is... skiing is a "want" – not a "need" – in most people's lives. That makes Vail Resorts a consumer-discretionary stock. Consumer-discretionary stocks have fared well so far this year. For example, the Consumer Discretionary Select Sector SPDR Fund (XLY) is up around 13% in 2023. However, the Power Gauge is now flashing a warning sign on this company in particular... [Chaikin PowerFeed] More specifically, the above chart for Vail Resorts includes two red flags... First, the Power Gauge's overall rating is now "neutral-." That means the company's fundamentals are weak, even though the stock is above its long-term trend line today. Worse still, Vail Resorts' relative strength just dipped below the line that we use as our directional alert. Look to the far-right side of that lower panel in the above chart. That means the stock is now struggling to keep pace with the broad market. Here's my takeaway... American consumers are in debt up to their necks. A recent Federal Reserve report showed that U.S. household debt surged to $17 trillion in the last quarter of 2022. That's the highest amount ever recorded. Delinquencies are up as well. For example, mortgage loans considered in "serious delinquency" of 90 days or more have nearly doubled over the previous year. In short, U.S. consumers have hit their limits. And yet, inflation isn't going away. Interest rates are still increasing. And the cost of airfare is on the rise, too. So do you think Vail Resorts' high-end facilities might see less traffic in the near future? The Power Gauge is giving us the answer... In terms of relative strength, Vail Resorts is beginning to sputter out. It just flashed a "bearish" signal. And the Power Gauge's "neutral-" overall rating is yet another red flag. The macro environment is challenging, too. So today, it's best to stay away from this stock. Good investing, Pete Carmasino Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 -0.22% 9 19 2 S&P 500 -0.12% 145 272 82 Nasdaq +0.08% 34 47 19 Small Caps +0.31% 510 982 399 Bonds +0.92% — According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks are somewhat Bullish. Major indexes are mixed. * * * * Sector Tracker Sector movement over the last 5 days Staples +0.03% Health Care -1.74% Utilities -1.95% Industrials -2.91% Materials -2.95% Financial -3.10% Communication -3.61% Real Estate -4.26% Discretionary -4.95% Information Technology -5.41% Energy -5.57% * * * * Industry Focus Dow Jones REIT Services 0 57 54 Over the past 6 months, the Dow Jones REIT subsector (RWR) has underperformed the S&P 500 by -5.09%. 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] SLG SL Green Realty Corp [rating] NHI National Health Inve [rating] HR Healthcare Realty Tr * * * * Top Movers Gainers [rating] CZR +5.41% [rating] EQT +5.06% [rating] WBD +4.54% [rating] NDSN +4.31% [rating] GRMN +4.09% Losers [rating] KEYS -12.67% [rating] CRL -10.06% [rating] CSGP -5.12% [rating] SBAC -5.06% [rating] EPAM -3.74% * * * * Earnings Report Reporting Today Rating Before Open After Close LKQ CE BBWI, CBRE, DISH, DPZ, GPC, IRM, KDP, NEM, PCG, PWR, TFX APA, BKNG, INTU, LYV, MRNA, WBD AMT, DTE AEP, LNT, VICI No earnings reporting today. Earnings Surprises [rating] ETSY Etsy, Inc. Q4 $1.07 Beat by $0.30 [rating] LCID Lucid Group, Inc. Q4 $-0.40 Missed by $-0.09 [rating] TRGP Targa Resources Corp. Q4 $1.37 Beat by $0.24 [rating] MOS The Mosaic Company Q4 $1.74 Missed by $-0.46 [rating] GRMN Garmin Ltd. Q4 $1.35 Beat by $0.18 * * * * 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](. You’re receiving this e-mail at {EMAIL}. For questions about your account or to speak with customer service, call [+1 (877) 697-6783 (U.S.)](tel:18776976783), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. Please note: The law prohibits us from giving personalized investment advice. © 2023 Chaikin Analytics, LLC. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Chaikin Analytics, LLC. 201 King Of Prussia Rd., Suite 650, Radnor, PA 19087. [www.chaikinanalytics.com.]( Any brokers mentioned constitute a partial list of available brokers and is for your information only. 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