Six New 'Bullish' Sectors Signal a Market Shift

Editor's note: It's time to prepare for a shift in the markets...

The broad market has been in a downtrend for most of the year. With inflation remaining high and geopolitical tensions still ongoing, investors have been keeping their money on the sidelines. But the "smart money" has been changing its tune.

That's why Marc Chaikin – founder of our corporate affiliate Chaikin Analytics – used his unique system to identify six market sectors that recently entered bullish territory. And he says this resurgence of broad market sectors could indicate that we're about to undergo a massive rearrangement...

In today's Masters Series, originally from the August 19 issue of the Chaikin PowerFeed daily e-letter, Marc highlights a few broad market sectors that recently turned bullish... explains why this could signal a massive shift... and reveals how it could create buying opportunities for individual investors...


Six New 'Bullish' Sectors Signal a Market Shift

By Marc Chaikin, founder, Chaikin Analytics

The S&P 500 Index packed an entire year of performance into a single month...

It's up roughly 10% since July 18.

Despite that, the broad market index is still down around 12% from its all-time high in early January. That means we remain firmly in "market correction" territory.

You've likely also noticed the unending talk about recession in the mainstream media. Folks still can't decide whether we're officially in one or not.

Yes, we still face headwinds from the Federal Reserve. Another interest-rate hike seems to be already in the works.

And yes, we still face supply constraints and energy shortages. Those problems will drag our fight with inflation out longer than anyone wants.

But none of that changes this simple fact... A dramatic change is underway in the market.

On July 28, I released a recommendation to the subscribers of my top-tier service Power Gauge Investor. At the time, no broad market sectors earned "bullish" or "very bullish" ratings from the Power Gauge.

However, the tide has shifted over the past few weeks. And today, I want to make sure you know about it...

Six of the 11 broad market sectors recently entered "bullish" or "very bullish" territory. Remember, just a few weeks ago... none of the 11 sectors were "bullish" or better.

Drilling down, eight of 22 key subsectors are ranked as "bullish" or better today.

Now, this doesn't mean the market is currently risk-free. But folks, this is a significant shift. Here's what I told Power Gauge Investor subscribers earlier this month...

Put simply, the market is starting to "figure out" the challenge it's facing. When that happens, the challenge remains... but it enables us to make tactical decisions.

In other words, Wall Street is transitioning from a "run for the hills" mindset to trying to figure out how to get the most out of this situation. That's an encouraging step.

That's playing out in real time right now. And here's another important point...

All six market sectors with new "bullish" or better ratings experienced positive Chaikin Money Flow readings over the past four weeks.

My subscribers know I developed the Chaikin Money Flow in the early 1980s as a way to measure the accumulation (buying pressure) versus the distribution (selling pressure) of a stock over time. More specifically, it tracks "smart money" (or institutional) buying.

In other words, Wall Street is once again putting money to work in broad market sectors.

That signals a major shift.

Will we see further volatility? Absolutely.

But there is opportunity in the market right now. Don't ignore it.

Good investing,

Marc Chaikin


Editor's note: This isn't Marc's first encounter with anticipating market shifts. Just a few months ago, he issued a dire warning for U.S. stocks that played out just as he predicted. But the worst is still ahead...

You see, his systems are able to identify "tremors" before a full-blown earthquake hits the market. And they just detected the next massive shift headed straight for U.S. stocks. There's simply no time to wait. Marc says this is his most important message yet. Click here to learn more.

Subscribe to Stansberry Digest for FREE
Get the Stansberry Digest delivered straight to your inbox.
Back to Top