You Can Still Find Opportunities That Are 'Bucking the Trend'

Editor's note: The right investing strategy can help you thrive in any market. Even in this historically bad year, opportunities are still out there. That's why we're sharing this essay by Marc Chaikin, founder of our corporate affiliate Chaikin Analytics. In it, he shares two opportunities that the Chaikin Ideas panel – one of his favorite proprietary tools – identified for investors...

Also, later this morning at 10 a.m. Eastern time, Marc is stepping forward with an important prediction. You don't want to miss it... Learn how to tune in for free right here.


Folks, I'm sure you're tired of hearing this by now...

But the reality is that most investors have endured a miserable year in the markets.

The broad market S&P 500 Index is still down roughly 17% in 2022. And the tech-heavy Nasdaq Composite Index remains down about 28% over the same span.

That's a historically bad year. But importantly, not everyone is suffering that much. For example, subscribers to my Power Gauge Investor newsletter are likely thriving.

We've closed four positions in the "Industry Monitor" portion of our model portfolio this year. The average return on these positions was around 8%. And the remaining nine open positions in our portfolio are outperforming the broad market as well. They're currently up an average of about 1.4%.

Now, that doesn't mean it's time for me to take a victory lap... Most investors would prefer much better returns, of course. But compared with just sitting in an index fund, we've weathered the storm well so far.

Put simply, even a handful of winning trades can offset an otherwise terrible year. And by continuing to focus on the "best of the best" opportunities in Power Gauge Investor, we'll keep offsetting the broad market pains that most investors have faced.

Now, what does all that have to do with you? Well, it's time for an early Thanksgiving treat...

Power Gauge Investor subscribers receive access to the Power Gauge system. In it, they can access nearly every tool I've developed at Chaikin Analytics, including one of my favorites: the Chaikin Ideas panel...

In short, this tool allows subscribers to quickly access the top 10 rated stocks listed in specific categories. So with just a few clicks of the mouse, these folks can find many "bullish" opportunities that are bucking the terrible trend in the broad market.

And today, I'd like to share a few of those opportunities with you...

First, let's cover the Best of the Large Caps section of the Chaikin Ideas panel. More specifically, I'd like to call your attention to health insurer Cigna (CI). Take a look...

As you can see, Cigna earns a "very bullish" overall rating from the Power Gauge. In fact, this company has maintained a "bullish" or better rating for most of the year.

Not surprisingly, Cigna's stock is soaring. It's up roughly 30% since early February. But be careful with this one... It just experienced a huge run higher. And I wouldn't be surprised to see traders take profits in the coming days.

That being said, the Power Gauge sees further opportunity here. So you'll want to keep a close eye on this stock.

Next, let's turn our attention to the Best of the Nasdaq category. In this case, it makes the most sense to share a telling tidbit rather than focus on an individual stock...

Five of the 10 stocks in the Best of the Nasdaq category are biotechnology companies. Even better, they're not flash-in-the-pan stocks. Most investors would recognize all five of them.

Put simply, we've spotted a trend. And using a tool that the highest-level Chaikin Analytics subscribers can access, I've confirmed that the biotech subsector is "bullish" right now.

I hope the takeaway is clear... Most investors have endured an awful year in the markets. But that doesn't mean you can't find any opportunities.

When the S&P 500 is down roughly 17% like it is this year, just preserving capital can be a strategic win. And the Power Gauge is helping us find opportunities to do just that. Even better, it can identify opportunities in outperforming stocks, like Cigna.

And finally, the Power Gauge can help us spot burgeoning trends. That's the case in the biotech sector today.

So thank you for joining me on this journey. It's a privilege to be able to share my research with you. And we'll continue using the Power Gauge as a guiding light in this market storm.

Good investing,

Marc Chaikin


Editor's note: Wall Street legend Marc Chaikin sees a major financial reset on the horizon. And as it plays out, it'll be critical to move your money out of cash and popular stocks... and into an opportunity with the potential to double, triple, or even quadruple your money. Marc's urgent broadcast will start at 10 a.m. Eastern time today. Sign up to attend this free event right here.

Further Reading

"Too many folks become their own worst enemies by ignoring what should be obvious," Marc Chaikin writes. But by using an investing strategy that keeps your emotions in check, you can find opportunities in any market environment. Read more here: Don't Become Your Own Worst Enemy.

The biotech sector might seem like the wrong place to invest in today's unforgiving market... But Marc Gerstein, director of research at our corporate affiliate Chaikin Analytics, says this sector can be a "godsend for investors." Read more here.