The Chaikin Approach

Eric Chaikin
2014 Chaikin Analytics All Rights Reserved. Proprietary and Confidential.
June 18, 2014
Director of User Experience / Product Strategy
To Finding Winners and Avoiding Landmines
Welcome
2013 Chaikin Analytics LLC. All Rights Reserved. Proprietary and Confidential.
Chaikin Analytics for Desktop
What Well Cover
2013 Chaikin Analytics LLC. All Rights Reserved. Proprietary and Confidential.
1. Welcome new clients
2. Review the Chaikin approach
3. FAQs
4. What were working on
5. Q&A
Chaikin Power Gauge
Clear summary of a stock's potential with a record of success

Financials

Earnings

Technicals

Experts
2013 Chaikin Analytics LLC. All Rights Reserved. Proprietary and Confidential.
5
2013 Chaikin Analytics All Rights Reserved. Proprietary and Confidential.
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 Results
Trailing 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
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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
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Strong Industries:
Oil: HES etc
Banks: BMA, BMO, TD

Alcoa, AAPL, Allergan (takeover bid)
Ryder, PL, Trinity
Lets go to the Desktop
Chaikin Approach: Classic Bears
2013 Chaikin Analytics LLC. All Rights Reserved. Proprietary and Confidential.
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
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SPLK
COH
ATHN
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
Lets go to the Desktop
Personality Changes - When to Exit
2013 Chaikin Analytics LLC. All Rights Reserved. Proprietary and Confidential.
Examples in the Desktop
CMCSA
KMP
FAQs
2013 Chaikin Analytics LLC. All Rights Reserved. Proprietary and Confidential.
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Factor questions
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Analyst Ratings
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Technical factors vs Technical Rating
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Industry Strength

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Overlay questions
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Neutral+/- meaning
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Why Bullish below Trend?

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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
FAQs
2013 Chaikin Analytics LLC. All Rights Reserved. Proprietary and Confidential.
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Putting on Options positions
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Chaikin helps w selecting the underlies and timing
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Stay in-the-money and leave 3-6 months
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careful of very ST positions

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Model Portfolio
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Its a published rule-based portfolio; not a managed portfolio
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Russell 1000 w/ a low Price-to-Book & Very Bullish overlay
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Neutrals remain; Bearish replaced weekly (only 1 so far)
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Similar to how we build our NASDAQ/Chaikin Indices
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Doubled the S&P so far in 2014
What Were Up To
2013 Chaikin Analytics LLC. All Rights Reserved. Proprietary and Confidential.

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

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Easier access to Great Ideas
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Filtering the low-quality names
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Clarifying the Best of the Best
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Make them easier to find; less hunting and
pecking
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Pushing them to the top in an easy-to-scan view

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ETF Ratings
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