Keep Your Contrarian Spirit in Check

Regular readers know that I've worked in finance for more than 50 years... Because of that, I know some of you are on the verge of making a dangerous bet. [Chaikin PowerFeed]( [TUESDAY: The 2023 Trade Event @ 8 PM ET - Details Here ➤]( Keep Your Contrarian Spirit in Check By Marc Chaikin, founder, Chaikin Analytics Regular readers know that I've worked in finance for more than 50 years... Because of that, I know some of you are on the verge of making a dangerous bet. You see, when the market is experiencing a lot of turbulence, it's tempting to act like a contrarian. And [the news can't get any worse for financial stocks]( these days, right? Baron Rothschild comes to mind. He was a British nobleman and banker in the 18th century. And he's famous for saying... The time to buy is when there's blood in the streets. But there's a catch... A "blood in the streets" sector doesn't always spell opportunity. Now, I don't pretend to know every twist and turn in the markets. But as I'll show you today, the Power Gauge is telling us to wait until the dust settles in the financial sector... Recommended Links: [Marc Chaikin: "This wave of bank collapses changes everything about how to invest for 2023."]( Wall Street titan Marc Chaikin predicted February's selloff... AND the recent run on banks way back in November. Now, he's sounding the alarm on what's coming next for the stock market: "Folks are about to do some very dangerous things with their money in the coming weeks, unless they understand what's coming next." [Click here for details, and a free recommendation](. [It's Time to Turn the Tables on Wall Street]( The top 1% grew their wealth by $7 trillion following the 2008 crisis... and made $1.7 million for every $1 YOU made during COVID. Now, it's playing out all over again. [See their next move, here](. As a whole, the financial sector is pretty bleak today. We can see that through the Financial Select Sector SPDR Fund (XLF), an exchange-traded fund ("ETF") that tracks this space... [We've talked about the Power Bar ratio before](. It's part of our Power Gauge system. And it helps us compare the number of favorably and unfavorably ranked holdings at any time. As you can see, only four stocks within XLF have a "bullish" or better rating today (marked in green below). And the Power Gauge is "bearish" overall on this ETF. Take a look... [Chaikin PowerFeed] The banking subsector is even worse... We track this space using the SPDR S&P Bank Fund (KBE). It's down roughly 20% so far this year. And not surprisingly, 30 of its holdings earn a "bearish" or worse rating today... [Chaikin PowerFeed] On top of that, the damage is now hitting regional banks... This group is calling on the Federal Deposit Insurance Corporation ("FDIC") for help. It hopes that the FDIC will insure all deposits – even those above its historical $250,000 limit. Once again, the Power Gauge shows us why we want to stay far away from this subsector... [Chaikin PowerFeed] The SPDR S&P Regional Banking Fund (KRE) only has one "bullish" stock out of nearly 140 holdings with Power Gauge ratings. It also earns a "bearish" overall grade today. KRE is down about 26% this year. That's a staggering loss. And there's no sign of relief yet. Put simply... be very careful if your contrarian senses are tingling for financial stocks. The market includes good opportunities today. But this space isn't offering many of them. Do I believe that banking and other financial stocks will eventually turn around? Absolutely. And when they do, it could lead to great opportunities for investors. But now is not the time to rush back in... The proverbial knife is still falling. And investors who try to catch it will likely get cut. We need to focus on sectors that are producing plenty of "bullish" opportunities... Right now, the top subsector in the Power Gauge paints a very different picture. It currently includes 22 "bullish" or better stocks. And it has zero "bearish" or worse stocks. Our 20-factor Power Gauge system is based on my five decades of Wall Street experience. It's specifically designed to help us navigate tough market environments like this one. Financial stocks are just too risky right now. Avoid them until the dust settles. Good investing, Marc Chaikin P.S. It's tempting to look for contrarian opportunities in today's challenging market... But you need to be careful. The recent wave of bank collapses changes everything. And now, you need to know what comes next. That's why I'm hosting a special online event next Tuesday, March 28... In short, you need to do one thing this year to be on the right side of history. You can't afford to miss what we'll talk about. And it's absolutely FREE to attend. [Sign up right here](. Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 -1.67% 6 20 4 S&P 500 -1.70% 82 297 118 Nasdaq -1.36% 34 47 19 Small Caps -2.88% 0 0 0 Bonds +1.33% — According to the Chaikin Power Bar, Large Cap stocks are more than Small Cap stocks. Major indexes are mixed. * * * * Sector Tracker Sector movement over the last 5 days Information Technology +2.52% Communication +2.10% Energy +1.71% Discretionary +1.11% Materials +0.59% Industrials -0.25% Health Care -0.41% Financial -0.60% Staples -0.77% Utilities -4.18% Real Estate -6.07% * * * * Industry Focus Capital Markets Services 8 44 14 Over the past 6 months, the Capital Markets subsector (KCE) has outperformed the S&P 500 by +1.61%. However, its Power Bar ratio, which measures future potential, is Weak, with more Bearish than Bullish stocks. It is currently ranked #13 of 21 subsectors. Indicative Stocks [rating] LPRO Open Lending Corpora [rating] STEP StepStone Group Inc. [rating] CME CME Group Inc. * * * * Top Movers Gainers [rating] MTCH +2.27% [rating] AMD +1.72% [rating] NVDA +1.03% [rating] KR +0.59% [rating] ORCL +0.36% Losers [rating] FRC -15.47% [rating] CMA -8.55% [rating] LNC -7.90% [rating] MTB -7.75% [rating] USB -7.28% * * * * Earnings Report Reporting Today Rating Before Open After Close DRI ACN, GIS FDS No earnings reporting today. Earnings Surprises [rating] WOR Worthington Industries, Inc. Q3 $0.44 Missed by $-0.17 [rating] KBH KB Home Q1 $2.47 Missed by $-0.38 [rating] OLLI Ollie's Bargain Outlet Holdings, Inc. Q4 $0.84 Beat by $0.05 * * * * 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. 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This work is based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors, and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.