Rachel fox shortterm trading tips and strategies with chaikin analytics by Chaikin Analytics, LLC

Great Summer Stock Plays Finding Short-Term Performers with Chaikin Analytics

Rachel Fox - creator FoxOnStocks.com Eric Chaikin - Chaikin Analytics

Welcome

What We’ll Cover (Intros…) 1. What is the Chaikin approach? 2. How do I use Chaikin to find winning trades? 3. Specific Buy and Sell Patterns 4. Special Offer & Opportunity 5. Q&A 3 © 2013 Chaikin Analytics LLC. All Rights Reserved. Proprietary and Confidential.

Challenge: Information Overload

Solution

The Solution: Chaikin Analytics

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

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Financials

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Earnings

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Technicals

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Experts

What is the Chaikin Power Gauge? Chaikin Power Gauge A reliable indication of a stock’s potential, a history of success Clear summary of a stock's potential – withwith a record of success

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Very Bullish-to-Very Bearish rating •

Financials

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Indicates likely relative performance over 1-to-6 months

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Earnings 20-factor• quantitative model looks at: Financials, Earnings, Technicals, Experts •

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Covers 5,000 U.S. equities •

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Technicals Experts

12 years backtesting, 3 years real-world performance

Power Gauge Performance

Results thru Q1 2014

Russell 3000 - Large, Mid, & Small Cap stocks

Very Bullish stocks

Period

Dates

All Real-World Performance

Jan ’11 Mar ‘14

+20.70%

Last 12 Months

Apr ‘13 Mar ‘14

+34.29%

Year 2013

Jan ‘13 Dec ‘13

+49.59%

Life-To-Date

Jan ‘99 Mar ‘14

+22.28%

(includes test period)

annual return

Russell 3000

SP500

ETF

SPDR ETF

14.99%

15.01%

22.93%

22.21%

32.83%

32.13%

5.07%

4.64%

Very Bullish stocks are highly likely to outperform index benchmarks.

Annualized return by Rating group vs. benchmarks. Note: Test results are equal weighted; R3000 and SPDR ETF are cap-weighted. © 2014 Chaikin Analytics LLC. All Rights Reserved. Proprietary and Confidential.

Play Offense Well: What to buy

What to Buy: Classic Bulls • Power Gauge Rating Bullish • Price Trend Up

• Relative Performance Strong • Chaikin Money Flow Strong

• Buy Signal in Chaikin Analytics

Play Good Defense Turn Land Mines into Gold Mines

What to Sell: Classic Bears •

Power Gauge Rating Bearish

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Price Trend Down

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Relative Performance Weak

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Chaikin Money Flow Weak

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Sell Signal in Chaikin Analytics

Why I Love Chaikin Analytics

• Can be added to any trading process • IS the missing puzzle piece of conﬁrma:on • Fits all styles: Growth, Value, Momentum, Long Term, Short Term • Fits all levels: Beginners, Intermediates, Pro Traders

Rachelâ&#x20AC;&#x2122;s 4-Step Process

1. Find Strong Stocks in Strong Groups 2. Confirm Fundamentals & Technicals 3. Find the Carrots! (Buy/Sell Signals) 4. Identify Technical Patterns 15 ÂŠ 2013 Chaikin Analytics LLC. All Rights Reserved. Proprietary and Confidential.

My Process: Step 1 • Find heavily saturated industries: Highly bullish

Highly bearish

My Process - Step 2 Loop through: Very Bullish stocks in strong industries (Longs) & Very Bearish stocks in weak industries (Shorts): Do the fundamentals confirm the technical trends?

! • Chaikin Analytics - great for finding strong fundamentals; it incorporates predictive factors: •

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Analyst Estimate Revisions, Short Interest, Insider Activity

! Confirm Chart Technicals: •

My Process: Step 3 • •

Find the CARROT Of “Very Bullish” or “Very Bearish” stocks ﬁnd Buy/ Sell signals

! ! ! That’s the Buy/Sell TODAY indicator. Gives me lower risk entry/exit point.

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Step 3: Buy/Sell Signals Focus on 2 types: 1. Overbought/Oversold Buys & Sells 2. Relative Strength Buys & Sells Overbought Sell – Finds Bearish stocks which are overextended rela:ve to their recent short-‐term trading range.

Oversold Buy – Finds Bullish stocks which have become Oversold rela:ve to their short-‐term trading range.

Rela<ve Strength Sell – Measures the stock’s performance rela:ve to the market as a whole. If the price has a risen but not as much as market, Chaikin will give a sell signal.

Rela<ve Strength Buy -‐ Measures the stocks price rela:ve to the market as a whole. If the price has fallen but not as much as market, Chaikin will give a buy signal © 2013 Chaikin Analytics LLC. All Rights Reserved. Proprietary and Confidential.

Step 4: Identify Patterns Technical Patterns 1. Consolidations 2. Reversals 3. Continuations Look for these in another intraday trading system -‐ complementary to Chaikin If the stock has been bullish for a while & Chaikin’s system shows there is a buying signal BUT there is a technical consolida:on pa\ern forming, I’ll wait to see if the stocks next technical pa\ern breaks higher or lower. 20 © 2013 Chaikin Analytics LLC. All Rights Reserved. Proprietary and Confidential.

Consolidations

Channel

Symmetrical Triangle

Ascending Triangle •

Descending Triangle

If the stock breaks lower out of a consolida:on pa\ern, my guess would be that a reversal pa\ern is forming and I would NOT buy the stock. © 2013 Chaikin Analytics LLC. All Rights Reserved. Proprietary and Confidential.

Reversals

Double Top

Double Bottom

Multiple Top

Multiple Bottom

Continuations

Bearish Pennant

Bullish Pennant

Bullish Flag

Bearish Flag •

If the Consolida:on pa\ern breaks higher, then my guess would be a Con:nua:on pa\ern is coming next. If I get conﬁrma:on of a Con:nua:on pa\ern, I’ll move forward and buy the stock.

Wedge

Chaikin Analytics Demo

Trades I Made with Chaikin

EL - Estee Lauder 3/11 (short) SGMA Sigma - 3/13 (long) CKH- Seacor 3/13 (short) N - NetSuite 4/3 (short) - also just shorted it today! TFM - The Fresh Market 3/14 (short) HII - Huntington Int’l - 3/20 (long) - “personality change” TTM - Tata Motors - 4/30 (long)