The Chaikin Approach

To Finding Winners and Avoiding

Landmines

Eric Chaikin
Director of User Experience / Product
Strategy

June 18, 2014

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Confidential.

Welcome

Chaikin Analytics for Desktop

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Confidential.

What Well Cover

1. Welcome new clients

2. Review the Chaikin approach

3. FAQs
4. What were working on
5. Q&A
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Confidential.

Chaikin Power Gauge

Clear summary of a stock's potential with a record of
success

Financials

Earnings

Technical
s

Experts

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Confidential.

Performance Results
Trailing 12 mos vs. S&P
500

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. Very Bearish & Bearish stocks
underperforming.
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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
Group

w/ Strong Industry
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Confidential.

Bullish Examples

Lets go to the
Desktop
Strong
Industries: Oil:
HES etc
Banks: BMA,
BMO, TD
Alcoa, AAPL,
Allergan (takeover
bid)

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Confidential.

Chaikin Approach: Classic Bears

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

Confirm

w/ Weak Industry

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Confidential.

Bearish Examples

Lets go to the Desktop

SPLK
COH
ATH
N
LULU
LNKD
HD
WF

Some are pure shorts, some avoiding landmines

- We wont always find exact tops
- But we will often keep you from greater harm
- Playing defense just as important to total return

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Confidential.

Personality Changes - When to

Exit

Examples in the Desktop

CMCSA
KMP

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Confidential.

FAQs
-

Factor questions
-

Overlay questions
-

Analyst Ratings
Technical factors vs Technical
Rating Industry Strength

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 = dealbreaker Short-Term
- Some regions of red expected on as pullbacks; not a deal breaker
- Strong non-confirmation of a rally: warning sign
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Confidential.

FAQs

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
-

Its 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

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Confidential.

What Were Up To
-

Better clarity
-

Easier access to Great

- Filtering the low-quality names
Ideas
- Clarifying the Best of the Best
-

In-app help, better explanation of Ratings, Charts,

Indicators, Signals, etc

Make them easier to find; less hunting and

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

ETF Ratings
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Confidential.

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Word Earn 20% for
referrals!
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2013 Chaikin Analytics LLC. All Rights Reserved. Proprietary and

Confidential.