How Uncle Sam's Meddling Leads to a 'Very Bullish' Rating

We've all seen how things can go off the rails when the government steps in... During the COVID-19 pandemic, that's exactly what happened in the health care space. [Chaikin PowerFeed]( How Uncle Sam's Meddling Leads to a 'Very Bullish' Rating By Pete Carmasino, chief market strategist, Chaikin Analytics We've all seen how things can go off the rails when the government steps in... During the COVID-19 pandemic, that's exactly what happened in the health care space. Specifically, in March 2020, Congress passed the Families First Coronavirus Response Act. This stimulus package was designed to help during one of the toughest times in our history. Through this law, the federal government basically gave out continuous Medicaid coverage. Importantly, individuals didn't need to be evaluated for coverage at the state level. In other words... people didn't need to qualify. Now, let's fast-forward to earlier this year... You see, the federal government subsidized the continuous enrollment provision and related programs under an emergency authority. And that authority ended on March 31. The states are now taking over the Medicaid coverage. But there's a problem... Not everyone qualifies under the state's guidelines. As you might imagine, this process is creating a huge mess in many states. In turn, it has also created a huge mess for the insurance industry... Recommended Links: [TODAY: 'The End of America? It's Here.']( Today at 3:30 p.m. Eastern time, Porter Stansberry is returning for the first time in more than three years to issue one of the most important warnings of his career. If he's right, the next several years could be a very, very difficult period for investors and everyday Americans. [Click here to learn more](. ['I Found the Answer to Retirement']( A man from New York came forward with his unique story of how he retired early and worry-free WITHOUT stocks... thanks to ONE single idea that anyone can use. Now he sees 16%-plus annual returns with legal protections... and he NEVER has to worry about another market crash again. [Get the full story right here](. Insurance companies that focus on Medicaid lost millions of customers overnight. And relatedly, their stocks tumbled. But on the flip side, the insurance industry is now full of opportunities for new customers... Remember, Uncle Sam was offering blanket coverage in the past. Now, individuals need to qualify for insurance. And many of them are heading back to the private-insurance markets. Today, insurance is one of the market's few bright spots. In fact, only three subsectors in the market currently earn a "bullish" or better rating in the Power Gauge... Two of these subsectors relate to oil and gas. The third is the insurance industry. Specifically, I'm talking about the SPDR S&P Insurance Fund (KIE). Take a look... [Chaikin PowerFeed] Notice that KIE currently features zero "bearish" or worse stocks. Folks, in today's volatile market, that's incredible. And when we use the Power Gauge to look closer at KIE's chart, the story gets even better. Take a look... [Chaikin PowerFeed] I want you to focus on a couple of things in this chart... First, you can see that KIE is up about 8% over the past six months. That's better than the S&P 500 Index's roughly 3% gain in that span. Next, look at the dramatic shift in the bottom panel for relative strength... At Chaikin Analytics, we use a proprietary formula to measure an asset's relative strength. And in the end, it helps us answer a simple-but-critical question... Is the asset we're looking at outperforming the broad market? In KIE's case, we see a dramatic change. The exchange-traded fund underperformed the S&P 500 for a lot of the past six months. But since early September, it's beating the market. Folks, our takeaway is clear... Not much is working in today's market. So we want to pay attention when a subsector with a "bullish" or better grade starts outperforming the broad market. That's the case with KIE today. With the Power Gauge's help, I'll keep a close eye on the insurance industry. And I'll use our system to dig deeper into the 17 "bullish" or better holdings in this fund as well. I recommend you do the same. Good investing, Pete Carmasino Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 -0.33% 4 20 6 S&P 500 -1.44% 52 294 151 Nasdaq -2.45% 14 72 13 Small Caps -1.65% 242 1161 531 Bonds -2.23% — According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks remain Bearish. Major indexes are mixed. * * * * Sector Tracker Sector movement over the last 5 days Utilities +0.19% Staples -0.13% Health Care -2.57% Information Technology -2.63% Industrials -2.93% Financial -3.06% Materials -3.45% Communication -3.69% Real Estate -4.62% Discretionary -4.87% Energy -4.97% * * * * Industry Focus Mining Services 5 14 13 Over the past 6 months, the Mining subsector (XME) has underperformed the S&P 500 by -5.41%. Its Power Bar ratio, which measures future potential, is Weak, with more Bearish than Bullish stocks. It is currently ranked #11 of 21 subsectors and has moved up 3 slots over the past week. Indicative Stocks [rating] CDE Coeur Mining, Inc. [rating] MP MP Materials Corp. [rating] RGLD Royal Gold, Inc. * * * * Top Movers Gainers [rating] WM +6.10% [rating] TRV +4.31% [rating] WAB +4.12% [rating] GD +4.03% [rating] HRL +3.75% Losers [rating] GOOGL -9.51% [rating] MKTX -9.26% [rating] ADP -9.20% [rating] FTV -8.04% [rating] CZR -7.49% * * * * Earnings Report Reporting Today Rating Before Open After Close NOC ACGL, EQT MAS, WTW, VMC, VLO, AON, STX, AOS, RCL, BG, BMY, MRK, MO, MA, CARR, LKQ, LIN, LH, CMCSA, KDP, IP, DHR, GWW RSG, LHX, MHK, PFG, GOOGL, TXT, V, VRSN, WM, WY, JNPR, INTC, ENPH, DXCM, DLR, CPT, COF, CINF, BKR, AMZN, AJG AMT, WST, UPS, SPGI, PCG, NEM, LUV, KO, KIM, HSY, HON, HAS, ECL, ALLE, CNP, CMS, GLW, BSX BIO, IEX, CMG, UDR, ESS, RMD, EMN No earnings reporting today. Earnings Surprises [rating] EQT EQT Corporation Q3 $0.30 Beat by $0.40 [rating] EG Everest Group, Ltd. Q3 $15.21 Beat by $3.75 [rating] HES Hess Corporation Q3 $1.64 Beat by $0.39 [rating] BA The Boeing Company Q3 $-3.26 Missed by $-0.65 [rating] VICI VICI Properties Inc. Q3 $0.69 Beat by $0.11 * * * * 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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