There's a major driver of uncertainty in this market... And it has to do with America's global economic prowess.

The Truth About America's 'Reserve Currency' Status By Pete Carmasino, chief market strategist, Chaikin Analytics There's a major driver of uncertainty in this market... And it has to do with America's global economic prowess. I'm talking about the fear that the U.S. dollar will lose its global "reserve currency" status. Folks, let me be clear from the jump... That isn't going to happen. Now, cynics will point to an anomaly in the markets right now. Both the prices of U.S. Treasury bonds and the value of the U.S. dollar have fallen together in recent months. That doesn't usually happen. Typically, one rises while the other falls. That's because of the relationship between interest rates and the yield curve. But a massive shift is happening right now. If you don't understand it, you risk losing a lot of money. However, you can protect yourself if you see what's really going on... Recommended Links: Crisis Alert: 'No. 1 Recommendation in the Face of Financial Turmoil' For stocks and the economy, things could soon go from bad to worse. But for ONE strategy (outside of stocks), it's about to become a field day... because it actually works BETTER in a recession and a possible stock market crash. It's a way to see income and capital gains with LEGAL obligations... on a reliable schedule and with a 93% win rate since the pandemic. Click here to learn more. 72-HOUR ALERT (Buy These Stocks) In April, our corporate affiliate Altimetry issued a massive buy alert for a handful of unknown stocks at the heart of AI adoption across the U.S. government. Since then, their entire buy list has surged. Until this Wednesday, they're giving you a rare second chance to learn more. Full story here. Wall Street Is Spooked About Falling Demand for U.S. Treasurys First, think about it like this... You likely have a checking account. Money comes in from your job. And money goes out for groceries, gas, and other stuff. If you spend more money than you bring in, you're technically running a "deficit." How do you pay for the difference? You borrow. You use your credit card or take out a loan that you'll pay for down the road. The U.S. does the same thing... For a long time, the U.S. has bought a lot more stuff from other countries (imports) than it has sold to them (exports). We make up the difference with "IOUs" – U.S. Treasury bonds. This strategy worked fine for decades. Countries like China would sell us phones and TVs, get a big pile of U.S. dollars, and then use the dollars to buy U.S. Treasury bonds. For China, it's a bonus that everyone considers U.S. Treasury bonds the safest in the world. But beyond that, the Chinese government follows this strategy to protect its own currency. China gets the best of both worlds. With this approach, it can own the world's best bonds and not convert U.S. dollars to yuan. In the meantime, the U.S. funds its operations on bond sales. So over the long run, it has been a good relationship. The overall system of inflows and outflows is tracked in the "balance of payments." Ultimately, everything coming in and going out just needs to balance. And for a long time, foreign countries willingly helped us support our spending deficit. But that's now changing... Put simply, the trust that held this system together is being tested. President Donald Trump and his administration want more balance today. By that, I don't mean they're looking to completely erase the trade deficit. They just want to reduce it. New White House policies could lead to the U.S. buying less from the rest of the world. That means fewer dollars are flowing out of the U.S. to countries like China. When these countries have fewer dollars coming in, they have fewer dollars to buy U.S. Treasury bonds. So demand is falling. And that has Wall Street spooked. But that's not the only pressure that the bond market and the U.S. dollar are facing... Tomorrow, I'll explain why China is selling U.S. debt and what it means for us going forward. Good investing, Pete Carmasino Market View Major Indexes and Notable Sectors     # Hld:     Bullish     Neutral     Bearish Dow 30 -1.78% 9 14 7 S&P 500 -1.12% 89 259 152 Nasdaq -1.26% 24 61 16 Small Caps -1.83% 399 1107 381 Bonds -0.96% Energy +1.74% 5 12 6 — According to the Chaikin Power Bar, Small Cap stocks remain somewhat more Bullish than Large Cap stocks. Major indexes are mixed. *  *  *  * Sector Tracker Sector movement over the last 5 days Energy +5.62% Health Care +1.3% Information Technology +0.34% Utilities +0.28% Real Estate +0.02% Consumer Discretionary -0.2% Materials -0.46% Consumer Staples -0.89% Communication -1.09% Industrials -1.57% Financial -2.57% *  *  *  * Industry Focus Retail Services 5 44 26 Over the past 6 months, the Retail subsector (XRT) has underperformed the S&P 500 by -8.32%. Its Power Bar ratio, which measures future potential, is Very Weak, with more Bearish than Bullish stocks. It is currently ranked #17 of 21 subsectors and has moved down 1 slot over the past week. Indicative Stocks AEO American Eagle Outfi ASO Academy Sports and O AZO AutoZone, Inc. *  *  *  * Top Movers Gainers ORCL +7.69% CF +6.5% BG +5.69% HAL +5.51% APA +5.31% Losers CPAY -7.66% CZR -6.41% MPWR -6.34% DECK -5.78% SHW -5.7% *  *  *  * Earnings Report Earnings Surprises No significant Earnings Surprises in the Russell 3000. *  *  *  * 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. All rights reserved. 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