This 'Defensive' Sector Just Got Clobbered

Folks, the signs are all around us... The market is entering a new "bullish" phase. Sure, an asteroid could hit Earth. [Chaikin PowerFeed]( This 'Defensive' Sector Just Got Clobbered By Marc Chaikin, founder, Chaikin Analytics Folks, the signs are all around us... [The market is entering a new "bullish" phase](. Sure, an asteroid could hit Earth. Or some other calamity could derail this new uptrend. But as I've said before, we're quants... We don't have a crystal ball. We rely on the data in front of us – not wild speculation. And today, the data is just about as clear as it gets... One of the market's most "defensive" sectors is struggling right now. It underperformed the S&P 500 Index by roughly 20 percentage points over the past six months. That's noteworthy because it's the sector where investors flock when everything falls apart. But that isn't happening today. And now, the Power Gauge sees it as "very bearish." Let's take a closer look... Recommended Links: ["Better than A.I." system predicts 5,000+ stocks]( Artificial Intelligence can now give marriage advice. But this kind of advanced software can also predict the direction of 5,000 stocks. Our favorite pointed to the top 10 stocks of 2022, enough to turn $10,000 in each into $163,000 profit. Just type in any stock ticker. [Click here to see it]( (and claim free access). [Don't Miss the Greatest Wall Street Event of 2023]( After a year of losses, a short period of "3x" to "5x" potential gains is quickly approaching. The last time this happened, 41 stocks doubled or more in just nine months. Now, the Pentagon consultant who correctly called the 2020 bull run is officially sounding the alarm. [Click here while there's still time](. If you haven't guessed yet, we're talking about the utilities sector today. It's the prototypical "defensive" play. That's because utilities tend to have stable earnings. And even when things get tough, investors can expect consistent returns from them. In other words... you might not make it big with utilities, but your cash is often safe. Well, that's not always true. When a newly formed bull market is happening, these types of companies tend to lag behind. Folks would rather invest in other potential high-flying sectors – like technology. We're seeing that play out today... The Power Gauge measures the utilities sector with the Utilities Select Sector SPDR Fund (XLU). And the following chart shows the exchange-traded fund's ("ETF") performance over the past year. Take a look... [Chaikin PowerFeed] Now, look closer at the middle of the chart. Something dramatic happened at the start of this year... The broad-market-tracking S&P 500 took off. But the utilities-tracking XLU stalled out. XLU has underperformed the broad market by roughly 20 percentage points over the past six months. And when we look at the Power Gauge, the situation gets even worse... In short, utilities is the second-worst-ranked sector today. It's rated as "very bearish"... [Chaikin PowerFeed] The utilities sector earns that rating because of its terrible Power Bar ratio. That's the multicolored bar on the right side of the above screenshot from the Power Gauge. It shows the number of "bullish," "neutral," and "bearish" stocks within the ETF. Today, XLU only has two "bullish" or better stocks. And it has 15 "bearish" or worse stocks. That's just about as bad as it gets. And it's not just the smaller holdings in the ETF, either. Four of XLU's top five holdings earn "bearish" or worse grades from the Power Gauge today. Regular Chaikin PowerFeed readers should recognize this story... For months, we've pointed out that the market was tilting away from traditionally defensive plays like utilities. And as a new bull market gets underway, this reality is unavoidable. The data is clear... The markets are running headlong into tech and growth-oriented stocks. And once-reasonable defensive plays are now a portfolio graveyard. This warning is especially important for investors who take a "wait and see" approach... Folks, the market is chewing you up if you're clinging to old defensive strategies. It's time to take control of your own wealth. It's time to get active again. Good investing, Marc Chaikin P.S. Speaking of the Power Gauge, I hope you don't miss my latest market briefing... In short, my team and I recently used our one-of-a-kind system to uncover a little-known cash vehicle. And it could double your money over and over again as the market experiences its next big move. Just for tuning in, you'll learn the name and ticker symbol of one of my favorite stocks today. And it won't cost you a penny. [Click here for all the details](. Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 -0.51% 12 17 1 S&P 500 -0.71% 174 246 79 Nasdaq -0.63% 63 29 8 Small Caps -0.82% 550 907 412 Bonds -0.39% — According to the Chaikin Power Bar, Large Cap stocks and Small Cap stocks are Bullish.. Major indexes are mixed. * * * * Sector Tracker Sector movement over the last 5 days Information Technology +4.33% Materials +3.41% Discretionary +3.21% Industrials +2.98% Communication +2.45% Staples +2.13% Real Estate +1.54% Utilities +1.37% Health Care +1.37% Financial +1.27% Energy -0.58% * * * * Industry Focus Aerospace & Defense Services 12 18 2 Over the past 6 months, the Aerospace & Defense subsector (XAR) has underperformed the S&P 500 by -4.23%. However, its Power Bar ratio, which measures future potential, is Very Strong, with more Bullish than Bearish stocks. It is currently ranked #7 of 21 subsectors and has moved down 1 slot over the past week. Top Stocks [rating] VVX V2X, Inc. [rating] TGI Triumph Group, Inc. [rating] MOG.A Moog Inc. * * * * Top Movers Gainers [rating] BALL +7.23% [rating] GLW +5.94% [rating] VTRS +3.52% [rating] XRAY +3.49% [rating] HSIC +2.94% Losers [rating] ARE -4.70% [rating] HUM -3.92% [rating] EPAM -3.66% [rating] ADSK -3.58% [rating] ANET -3.48% * * * * Earnings Report Reporting Today Rating Before Open After Close FDX No earnings reporting today. Earnings Surprises No significant Earnings Surprises in the Russell 3000. * * * * 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. 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