Pick Bullish Stocks and Avoid the Bearish with Chaikin Analytics

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The Chaikin Approach

Eric Chaikin

June 18, 2014Director of User Experience / Product Strategy

To Finding Winners and Avoiding Landmines

Welcome

Chaikin Analytics for Desktop

What We’ll Cover

1. Welcome new clients

2. Review the Chaikin approach

3. FAQs

4. What we’re working on

5. Q&A

Chaikin Power GaugeClear summary of a stock's potential – with a record of success

• Financials

• Earnings

• Technicals

• Experts

Universe Annualized Return

SP500 Index +18.3%

Power Gauge Very Bullish +26.52%

Period: Jun 2013-Jun 2014 - annualized performance including dividends, monthly rebalancing.

Results look at ‘raw’ Power Gauge rating without technical overlay.

SP500 is index is cap-weighted.

Very Bullish & Bullish stocks outperforming the S&P.

Performance ResultsTrailing 12 mos vs. S&P 500

Very Bearish & Bearish stocks underperforming.

Note: performance of Bearish stocks this year is higher than usual; expect retracement

Chaikin Approach: Classic Bulls

1. Very Bullish/Bullish Power Gauge

2. Above rising long-term trend

3. Strong Money Flow persistency

4. Strong Relative Strength

5: Timing: Signals, OB/OS, Support levels

Confirm w/ Strong Industry Group

Bullish Examples

Strong Industries: Oil: HES etc Banks: BMA, BMO, TD !Alcoa, AAPL, Allergan (takeover bid)

Ryder, PL, Trinity

Let’s go to the Desktop…

Chaikin Approach: Classic Bears

Confirm w/ Weak Industry Group

1. Very Bearish/Bearish Power Gauge

2. Below falling long-term trend

3. Weak Money Flow persistency

4. Weak Relative Strength

5: Timing: Signals, OB/OS, Resistance levels

Bearish Examples

SPLK COH ATHN LULU LNKD HD WF

Some are pure shorts, some avoiding landmines - We won’t always find exact tops - But we will often keep you from greater harm - Playing defense just as important to total return

Let’s go to the Desktop…

“Personality Changes” - When to Exit

Examples in the Desktop…

- Factor questions - Analyst Ratings - Technical factors vs Technical Rating - Industry Strength

!- Overlay questions

- Neutral+/- meaning - Why Bullish below Trend? !

- Chaikin Money Flow - Is negative money flow a ‘dealbreaker’? Not always - Persistency: Strong persistency can confirm a buy Very weak = deal-breaker - Short-Term

- Some regions of red expected on as pullbacks; not a deal breaker - Strong non-confirmation of a rally: warning sign

- Putting on Options positions - Chaikin helps w selecting the underlies and timing - Stay in-the-money and leave 3-6 months - careful of very ST positions

!- Model Portfolio

- It’s a published rule-based portfolio; not a managed portfolio - Russell 1000 w/ a low Price-to-Book & Very Bullish overlay - Neutrals remain; Bearish replaced weekly (only 1 so far) - Similar to how we build our NASDAQ/Chaikin Indices - Doubled the S&P so far in 2014

What We’re Up To

!- Better clarity

- In-app help, better explanation of Ratings, Charts, Indicators, Signals, etc !

- Easier access to Great Ideas - Filtering the low-quality names - Clarifying the “Best of the Best” - Make them easier to find; less hunting and

pecking - Pushing them to the top in an easy-to-scan view

!- ETF Ratings

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Pick Bullish Stocks and Avoid the Bearish with Chaikin Analytics

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