Why You Shouldn't Panic if the Market Takes a Breather

For the first time ever, the S&P 500 Index closed above 5,000 earlier this month... [Chaikin PowerFeed]( Why You Shouldn't Panic if the Market Takes a Breather By Marc Chaikin, founder, Chaikin Analytics For the first time ever, the S&P 500 Index closed above 5,000 earlier this month... And despite a brief pullback early last week, it went on to hit a new all-time high just two days later. Meanwhile, the U.S. economy is surprisingly strong... The American consumer and the knock-on effects of the artificial-intelligence ("AI") boom are a big reason for that strength. And it's pushing many large-cap stocks to new highs. We can see the enhanced productivity through rising profit margins. And in turn, companies are reporting earnings surprises and generally positive forward guidance this quarter. In the end, as I've [stressed previously]( everything matches up with the price action of stocks in prior presidential-election years. That's great news for the year ahead. So, the reality is that I'm not worried about a bit of a pullback in the short term. In fact... I'm looking forward to it. Recommended Links: [This appeared before the 2001 and 2008 crashes – and now it's back]( Two Wall Street insiders are sounding the alarm about a trend NO ONE seems to be talking about. It's a phenomenon that's appeared before EVERY major market downturn – including the dot-com crash, the 2008 financial collapse, and the following recessions. But they say this very trend also leads to a tremendous opportunity in ONE corner of the market with the potential for triple-digit gains... and with way less risk. [Click here for the full details](. ['I Found the Answer to Retirement']( A Stansberry Research subscriber 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](. Hopes of interest-rate cuts sooner rather than later – along with other factors – have propelled stocks higher over the first six weeks of 2024. And the mainstream financial media led some market participants into unrealistic expectations of five to seven interest-rate cuts this year. The prevailing narrative was that these cuts could start as soon as next month. Well, the market just got a reality check. Last week, the U.S. Bureau of Labor Statistics released the January update of the Consumer Price Index ("CPI"). It showed an unexpected (but minor) uptick in the core inflation rate. Notably, it dashed hopes of an imminent rate cut. That means an early rate cut is effectively off the table now. A more realistic scenario is three to four rate cuts starting in the second half of the year. Now, the market will need to process this "later than hoped for" rate-cut timeline. That could play out in the days and weeks ahead. But when the dust settles, it means one thing... We're likely going to get another great entry point into this market. And remember, we're in a special environment this year with a presidential election looming. Since 1950, the S&P 500 has rallied in 14 of 18 presidential-election years. The strength was concentrated in the back half of the year, too. It was up from the end of May through year-end in 16 of those 18 years – with an average gain of 10% over that six-month period. But we haven't gotten to June yet. In other words, the next three to four months are historically the most challenging period in a presidential-election year. And this year will be no exception... I expect to see volatile and choppy price activity until we get closer to the Democrats' and Republicans' national nominating conventions. They'll both happen later this summer. Don't let any brief profit-taking scare you. Keep your eye on the ball and stay "bullish"... I certainly still am for 2024. Good investing, Marc Chaikin Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 -0.53% 13 17 0 S&P 500 -0.5% 192 229 76 Nasdaq -0.91% 46 43 11 Small Caps -1.37% 579 997 342 Bonds -0.58% — 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 Energy +2.71% Materials +2.44% Utilities +1.59% Financial +1.46% Health Care +1.12% Industrials +0.93% Staples +0.23% Real Estate -0.16% Communication -0.28% Discretionary -0.49% Information Technology -2.54% * * * * Industry Focus Regional Banking Services 75 58 7 Over the past 6 months, the Regional Banking subsector (KRE) has underperformed the S&P 500 by -4.87%. However, its Power Bar ratio, which measures future potential, is Very Strong, with more Bullish than Bearish stocks. It is currently ranked #9 of 21 subsectors and has moved up 2 slots over the past week. Top Stocks [rating] IBCP Independent Bank Cor [rating] BPOP Popular, Inc. [rating] LOB Live Oak Bancshares, * * * * Top Movers Gainers [rating] AMAT +6.35% [rating] VMC +5.23% [rating] DG +4.78% [rating] ALB +4.33% [rating] TRGP +3.93% Losers [rating] DLR -8.34% [rating] ADBE -7.41% [rating] PARA -4.69% [rating] UBER -3.66% [rating] CARR -3.66% * * * * Earnings Report Reporting Today Rating Before Open After Close KEYS, PANW ALLE, MDT, WMT CE, FANG, IFF, MOS, NDSN, PSA, PXD NI CSGP, CZR, O No earnings reporting today. Earnings Surprises [rating] PPL PPL Corporation Q4 $0.40 Beat by $0.02 [rating] VMC Vulcan Materials Company Q4 $1.46 Beat by $0.06 [rating] CNK Cinemark Holdings, Inc. Q4 $-0.10 Missed by $-0.06 * * * * 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. © 2024 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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