The Chaikin Power Gauge rates individual company stocks based on 85% fundamental and 15% technical factors. The Power Gauge is a powerfully predictive model that gives me confidence about the likely performance of a particular stock compared to the overall market over the next few quarters. I think of it as a way of predicting relative strength 6 months from now.
Power Bars represent the aggregate relationship between Bullish and Bearish classified stocks within a particular group, like sector or industry group for example. So, if the Power Gauge gives me an idea of how a stock is likely to perform relative to the market months into the future, for me, it stands to reason that comparing Power Bars on individual ETF's should give me an edge by showing which are likely to perform better than the market (SPY tracks the stocks in the S&P 500)
Based on the chart above, Utilities remain solid and unwavering. We expect outperformance to continue. Financials (XLF) and Tech (XLK) have rebounded, and there's a bullish case for both sectors. Materials (XLB) and lower are poised to perform at-market or worse, though things are changing, with more ETF's trending from Bearish to at least neutral.
I use the above chart NOT to examine where the market has been, but where it's likely to go next. That's the beauty of Chaikin Analytics.
Based on the chart above, Utilities remain solid and unwavering. We expect outperformance to continue. Financials (XLF) and Tech (XLK) have rebounded, and there's a bullish case for both sectors. Materials (XLB) and lower are poised to perform at-market or worse, though things are changing, with more ETF's trending from Bearish to at least neutral.
I use the above chart NOT to examine where the market has been, but where it's likely to go next. That's the beauty of Chaikin Analytics.
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