On January 6, I warned readers that 2025 had started with a "triple yellow" signal in the Power Gauge...

In a Volatile Environment, Remember These Two Points By Vic Lederman, editorial director, Chaikin Analytics On January 6, I warned readers that 2025 had started with a "triple yellow" signal in the Power Gauge... As regular readers know, we use three exchange-traded funds ("ETFs") to measure the S&P 500 Index, the tech-heavy Nasdaq 100 Index, and the small-cap Russel 2000 Index. These are the SPDR S&P 500 Fund (SPY), the Invesco QQQ Trust (QQQ), and the iShares Russell 2000 Fund (IWM), respectively. As I noted in January, all three had kicked off the year in "neutral" territory in the Power Gauge...   Regular readers know that Marc Chaikin and I both expect to see a lot of opportunity with stocks in 2025. But as the year starts, the "triple yellow" warning is something we need to take seriously. Meanwhile, I also looked deeper...    Combining the three ETFs, 654 of their holdings are rated "bearish" or worse right now. And 469 stocks currently earn a "bullish" or "very bullish" rating. In other words, today you're more likely to pick a stock in "bearish" territory than one in "bullish" territory. Or more simply, you can't just "throw a dart" and hope to win in this market right now. That's still true today... Combined, SPY, QQQ, and IWM hold 340 stocks with "bullish" or better ratings. And they hold a staggering 638 "bearish" or worse stocks. Things have gotten worse in the world of small caps, too... IWM now earns a "bearish" rating in the Power Gauge. And it's down roughly 7% so far this year. Folks, I'm sure you're feeling it... Recommended Links: See by Midnight: Rare Market Signal Warns the 'Mega Melt-Up' Is Underway Our friends at TradeSmith studied 125 years of market history and 5.2 billion data points, developing a brand-new algorithm. But there's a reason they didn't cut corners. For the first time, their advanced algorithm – made possible by a brand-new technological breakthrough – points to a once-in-a-generation opportunity to build wealth in 2025, regardless of the volatility we're seeing today. Here's everything you need to know about the "mega melt-up." 'How I SAVED My Retirement and Stopped Worrying About Money Forever' This is a stunning story. Since 2009, a real reader from our friends at our corporate affiliate Stansberry Research has used just ONE strategy to retire early and stop worrying about money completely. Through different presidents... wars... crises... market ups and downs – it doesn't matter to him. His income and potential gains are OBLIGATED to him by law (something stocks can never, ever do). See his astonishing story... and claim your one-step plan to do the exact same thing. The market is processing real uncertainty right now. And some of the cracks in the economy seem like they're growing wider. In their most recent earnings releases, retail giants Target (TGT) and Walmart (WMT) both warned of slowing spending. And there's no question that politically spurred uncertainty is adding to the market's woes. On Friday, Marc Chaikin warned readers that the S&P 500 was trading between two key levels. The lower level, when looking at SPY, was $580. As Marc noted, a breakdown below that level means the possibility of a full-blown correction of 10%. Yesterday, SPY closed just below that mark. So we're right around a key support level. Of course, that doesn't mean it's time for full-blown panic. There are two important points to keep in mind... First, corrections are normal. Last year, the S&P 500 soared a staggering 23%. And now, it's processing the new realties it faces. Wall Street will reprice. But after the cycle of fear, traders will find new areas of optimism. The second key point is that drawdowns create opportunities... Amid pullbacks and corrections, quality stocks will defy the downtrend. And others will move into "discount" territory. Now, with the help of the Power Gauge, our job is to identify them. The "bearish" stocks may outweigh the "bullish" ones right now. But the Power Gauge still shows us that there are 340 "bullish" and "very bullish" names across the S&P 500, the Nasdaq 100, the Russell 2000. And the fact is, even when the world is uncertain... stocks continue to trade. Good investing, Vic Lederman 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 STEVENMAGALLANES520.NIMS@BLOGGER.COM. For questions about your account or to speak with customer service, call +1 (877) 697-6783 (U.S.), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. Please note: The law prohibits us from giving personalized financial advice. © 2025 Chaikin Analytics, LLC. 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