The Best Way to Avoid the Big Banks' Bad Calls

"Bottom fishing" is the most expensive sport in America... That's another name for buying a stock just because its price is lower than it was before. [Chaikin PowerFeed]( The Best Way to Avoid the Big Banks' Bad Calls By Pete Carmasino, chief market strategist, Chaikin Analytics "Bottom fishing" is [the most expensive sport in America](... That's another name for buying a stock just because its price is lower than it was before. It might look like a bargain. But in many cases... it's a trap. Trying to time the bottom is often a fool's errand. It just leads to more losses. Bottom fishing happens more than you think, too... Wall Street analysts are often forced to make calls on popular stocks that trend lower. And a lot of times, these analysts try to produce some sort of silver lining for investors. We'll talk about one of these popular stocks today. As you'll see, two analysts recently made "bullish" calls on this stock. They're almost begging investors like you to buy shares. But from my perspective, they're dead wrong. Fortunately, as I'll explain, you only need one tool to help you avoid these bad calls... Recommended Links: [Breakthrough Treatment for a 'Death Sentence' Disease Could 5X Your Money]( The chance to be an early investor in a life-changing medical breakthrough doesn’t happen often... but Stansberry Research's longest tenured and most successful health tech analyst says that’s exactly the opportunity in front of us right now. It doesn’t matter which way the market moves from here – by tomorrow, [get the full details on this urgent opportunity right here](. [Prepare Now: A Massive Wave of Bankruptcies Is Coming]( In 2009, Joel Litman warned investors about 57 different companies that were about to go bankrupt – 50 collapsed within days. Now Litman is stepping forward with another big bankruptcy warning. If you own a single share of stock – much less a business... a mortgage... or a loan of any kind – this will affect you. [Click here to learn more](. The stock I'm focusing on today is First Solar (FSLR). You've likely heard this name before. It's a popular stock in the renewable-energy space. Specifically, it makes semiconductors that convert sunlight into electricity. As you can see in the following chart, First Solar is clearly in a downtrend today. The stock has plunged around 31% over the past five months. Take a look... [Chaikin PowerFeed] Notice that our proprietary relative strength indicator for First Solar turned negative in June. Regular readers know this indicator measures a stock's performance against the benchmark S&P 500 Index... When a stock is outperforming the S&P 500, it's a sign that the trend is on our side. And when a stock underperforms (like First Solar is doing today), it's a negative setup. But Wall Street analysts don't always consider price trends... For example, on September 23, Bank of America Merrill Lynch analysts called out a buying opportunity in First Solar. They said the stock was "mispriced" based on valuation. The stock traded for around $162 per share at the time. It was already down around 10% over the previous month. But Wall Street analysts highlighted a buying opportunity. And a lot of investors likely thought it was time to go bottom fishing. That would've been a big mistake... First Solar's stock has continued to fall. It now trades at roughly $158 per share. That's about 3% below where it was when analysts said the stock was mispriced. Wall Street analysts aren't finished trying to bottom fish... Last week, a Barclays analyst upgraded his outlook on First Solar. He explained that the stock was trading at a discount to its peers in terms of its projected earnings for 2025. Folks, how can anyone know what 2025 will bring for this stock (or any stock)? The analyst set his target price at $224 per share. That's funny to me because the stock peaked at almost $232 per share in May. But again, price is just a number to some folks. Our takeaway is simple... Don't try to bottom fish – even if Wall Street says you should. That's the case with First Solar today. And the Power Gauge helps us avoid this bad call. Good investing, Pete Carmasino Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 -0.99% 6 17 7 S&P 500 -1.28% 89 271 137 Nasdaq -1.31% 28 58 13 Small Caps -2.06% 337 1086 511 Bonds -0.86% — According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks remain somewhat Bearish. Major indexes are mixed. * * * * Sector Tracker Sector movement over the last 5 days Energy +5.03% Staples +1.61% Health Care -0.50% Utilities -0.55% Financial -0.63% Information Technology -1.85% Communication -2.08% Materials -2.52% Industrials -2.84% Real Estate -3.05% Discretionary -3.05% * * * * Industry Focus Health Care Equipment Services 1 28 41 Over the past 6 months, the Health Care Equipment subsector (XHE) has underperformed the S&P 500 by -29.79%. 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] NVCR NovoCure Limited [rating] CNMD CONMED Corporation [rating] BAX Baxter International * * * * Top Movers Gainers [rating] DXCM +4.51% [rating] NDAQ +3.99% [rating] ABT +3.71% [rating] DVA +3.09% [rating] PG +2.58% Losers [rating] ALB -9.79% [rating] UAL -9.67% [rating] JBHT -8.85% [rating] BIO -7.93% [rating] WBA -7.00% * * * * Earnings Report Reporting Today Rating Before Open After Close No earnings reporting today. Earnings Surprises [rating] STT State Street Corporation Q3 $4.64 Beat by $2.81 [rating] TRV The Travelers Companies, Inc. Q3 $1.95 Missed by $-1.12 [rating] DFS Discover Financial Services Q3 $2.59 Missed by $-0.58 [rating] LRCX Lam Research Corporation Q1 $6.85 Beat by $0.72 [rating] TSLA Tesla, Inc. Q3 $0.66 Missed by $-0.08 * * * * 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. Chaikin Analytics, LLC, does not recommend or endorse any brokers, dealers, or investment advisors. 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