Warning: Gold Just Took a 'Bearish' Turn

A lot of people had high hopes for gold... After all, the COVID-19 pandemic felt like it was ripping the world apart in early 2020. [Chaikin PowerFeed]( Warning: Gold Just Took a 'Bearish' Turn By Marc Chaikin, founder, Chaikin Analytics A lot of people had high hopes for gold... After all, the COVID-19 pandemic felt like it was ripping the world apart in early 2020. Governments took extreme actions to fight the virus. And central banks around the world slammed interest rates effectively to zero as the global economy shut down. For a moment... it looked like gold would rule this era. The precious metal's value had already climbed around 29% off a significant low in 2018. And then, as the pandemic started in early 2020, things really heated up... Gold began that year at about $1,525 per ounce. By that August, its value had exploded to an all-time high of around $2,075 per ounce. That's a roughly 36% move in about eight months. It's comparable to the massive surge in tech stocks so far this year. It seemed certain that gold would keep soaring from there... The so-called "money supply" surged as the government pumped cash into the economy. And it's generally accepted that gold protects against the falling value of the U.S. dollar. But then, something strange happened... Gold traded sideways for nearly three years. Now, the Power Gauge is weary about the precious metal's future. Our system just released a warning on gold – or more specifically, gold miners. Let's take a closer look today... Recommended Links: ["My last freebie went up 5,166% — here's my newest" (ticker inside)]( One year ago, Eric Wade posted a free investment recommendation. Since then, you could have booked a 5,166% gain, turning a $5,000 investment into more than a quarter million dollars. If you missed that free pick, today he has another for you. [Click here for the ticker](. [The Surprising JULY 25 TWIST Could Lead to Joe Biden's LANDSLIDE Re-election]( A July 25 disclosure might be the most important U.S. government document in 50 years. The secret it reveals has helped deliver $62 billion in cash to regular Americans. It could also make YOU a lot of money... and hand Joe Biden a landslide re-election victory. [Click here for details](. There's no question about it... The price of gold has defied many investors' expectations since the start of the pandemic. It's easy to see the precious metal's "rangebound" behavior on the chart. Take a look... [Chaikin PowerFeed] Sideways with a dash of volatility. That about sums it up. Now, we could play armchair economist trying to explain why this is happening. But the reality is that academics will be writing papers on the current era's gold prices for years. Instead of waiting on those papers, we can turn to the Power Gauge today... Now, the Power Gauge doesn't directly rate the price of gold. That's because its 20 factors cover technical-focused price movement and fundamentals. And we all know that gold doesn't have price-to-earnings or earnings-per-share measures. With that said, the Power Gauge does rate many of the world's top gold miners – like Newmont (NEM) and Barrick Gold (GOLD). And it even produces a grade for the VanEck Gold Miners Fund (GDX). That means we can use the Power Gauge to get a "one click" look at the state of gold – and the businesses that depend on it. It's a way for us to quickly check the pulse of this space. Unfortunately for gold bugs, the picture is grim right now... The Power Gauge just turned "bearish" on GDX last week. Worse still, GDX is significantly underperforming the broad market so far this year. And the so-called "smart money" has started exiting the trade in recent weeks as well. It's not surprising... Of the 36 stocks the Power Gauge rates within GDX, only two earn "bullish" or better ratings today. And 15 stocks receive "bearish" or worse ratings. Put simply, gold miners look like a losing bet these days. And the Power Gauge is warning us about continued underperformance in the coming weeks and months. So if you've overallocated to gold, now is the time to look elsewhere. We've endured three years of sideways price action in this corner of the market. And even worse, the Power Gauge just turned "bearish" on the companies most connected to it. Consider yourself warned. Good investing, Marc Chaikin Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 +0.60% 12 15 3 S&P 500 +1.10% 176 241 82 Nasdaq +1.72% 61 32 7 Small Caps +1.44% 528 912 428 Bonds -0.26% Consumer Discretionary +2.15% 23 26 4 — 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 Materials +1.73% Industrials +1.09% Energy +0.73% Staples +0.71% Real Estate +0.35% Communication +0.23% Discretionary -0.27% Health Care -0.43% Utilities -0.44% Information Technology -0.54% Financial -0.75% * * * * Industry Focus Health Care Services 6 44 12 Over the past 6 months, the Health Care Services subsector (XHS) has underperformed the S&P 500 by -4.68%. 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] AHCO AdaptHealth Corp. [rating] MODV ModivCare Inc. [rating] HIMS Hims & Hers Health, * * * * Top Movers Gainers [rating] CCL +8.84% [rating] GNRC +8.79% [rating] NWL +7.42% [rating] ODFL +7.39% [rating] DAL +6.84% Losers [rating] WBA -9.34% [rating] REGN -8.71% [rating] CTLT -4.79% [rating] ILMN -4.40% [rating] TMO -2.38% * * * * Earnings Report Reporting Today Rating Before Open After Close MU GIS CNXC No earnings reporting today. Earnings Surprises [rating] WBA Walgreens Boots Alliance, Inc. Q3 $1.00 Missed by $-0.07 [rating] JEF Jefferies Financial Group Inc. Q2 $0.05 Missed by $-0.24 [rating] AVAV AeroVironment, Inc. Q4 $0.33 Missed by $-0.10 * * * * 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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