Tactical Turning Points Are the Secret to Finding Winners

Episode #350 | February 26, 2024

Episode #350 | February 26, 2024

Tactical Turning Points Are the Secret to Finding Winners

In This Episode

On this week's Stansberry Investor Hour, Dan and Corey are joined by Chaikin Analytics Chief Market Strategist Pete Carmasino. With more than 25 years in the financial-services industry, Pete is an authority on strategy and technical analysis. He joins the podcast to share some investing advice, opinions on today's market, and his process for selecting stocks.

Dan and Corey kick off the show by discussing new highs in the S&P 500 Equal Weight Index, Japan's Nikkei 225 Index, and chipmaker Nvidia's stock. They analyze what these new highs mean, whether the U.S. is still in a mega-bubble, what's happening with the Japanese economy, and if Nvidia can continue its outperformance.

Next, Pete joins the conversation and describes his investing style. He notes that he mainly looks at price. By using technical analysis and studying the fundamentals, trends, and the relative strength versus the market, he can decipher whether a stock is overbought...

I'm a trend follower, and I look for the specifics of what I call the "turning point." It could be down or up. We want to avoid the ones that are turning down and obviously try to get involved with the ones that are turning up.

Further, Pete talks about the importance of risk management and taking advantage of tactical moves. He gives investors advice for how to determine when something is a tactical sell or a tactical buy, discusses the relationship between technicals and fundamentals, and explains why he looks at both offensive and defensive sectors for investing opportunities...

You have to have peripheral vision too, right? You can look at your one position straight on, but look at the peer group as well. If they're all breaking down, something is changing... Determine if it's oversold or a change in trend. That's two different things.

Pete then details why he's never too bullish or bearish at any given time, plus how the Chaikin Analytics Power Gauge system helps him find potential winners. He describes his process for interpreting the signals and discusses the fundamentals he needs to see to be interested in a stock.

The strategy is always to find names that are moving higher, no matter the environment. And if there's an outside catalyst that's pushing a group to the downside, you need to be aware of it.

Lastly, Pete hammers home the importance of rates – particularly the unemployment rate, since the Federal Reserve uses it to determine the federal-funds rate. He also shares the top five subsectors currently and names a few stocks within those sectors that could be worth keeping an eye on.