The Chaikin Approach

Eric Chaikin

© 2014 Chaikin Analytics All Rights Reserved. Proprietary and Confidential.

June 18, 2014Director 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 We’ll Cover

© 2013 Chaikin Analytics LLC. All Rights Reserved. Proprietary and Confidential.

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

© 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 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

© 2013 Chaikin Analytics LLC. All Rights Reserved. Proprietary and Confidential.

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

Let’s 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 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

© 2013 Chaikin Analytics LLC. All Rights Reserved. Proprietary and Confidential.

Examples in the Desktop…

CMCSA

KMP

FAQs

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- 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

FAQs

© 2013 Chaikin Analytics LLC. All Rights Reserved. Proprietary and Confidential.

- 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

© 2013 Chaikin Analytics LLC. All Rights Reserved. Proprietary and Confidential.

!- 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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