Chaikin PowerSuite User Guide
Welcome to Chaikin
Chaikin Power Suite helps you manage your U.S. equity portfolio by providing sophisticated analytics in an easy-to-use application, to help you increase returns, minimize risk, and combat information overload.
The core of the system is the Chaikin Power Gauge Rating, which combines 20 fundamental, technical, and sentiment-based factors into a clear indication of a stock’s likelihood of outperforming or underperforming the market over an intermediate term horizon.
Chaikin Power Suite is a browser-based application that delivers Chaikin’s proprietary stock ratings, portfolio reports, and market commentary. There are two tiers of service – only Power Suite Premium subscribers have full access to Chaikin Insights – Chaikin’s home for premium market commentary and actionable stock ideas, updated daily.
Investors who want Chaikin’s full complement of analytical tools may wish to upgrade to the full Chaikin Analytics service, which includes, historical Charts, Buy/Sell Signals and Alerts, and Industry Ratings, as well as a companion iPad application. Click here to learn more about Chaikin Analytics.
With Chaikin Power Suite you can:
- See reliable Chaikin Power Gauge Ratings on any stock.
- Manage a custom watchlist of up to 99 symbols.
- Access In-depth research reports on 5,000 U.S. equities, updated daily.
- Identify risks and opportunities in your holdings with a customized Portfolio Health Check.
- View, downloaded, and print any report.
- Access Chaikin Insights for expert commentary on markets, industries, and specific stocks to watch each week (Power Suite Premium subscribers only).
Chaikin Power Suite runs on both Windows PCs and Macs, inside HTML5-compliant versions of the following browsers:
- Internet Explorer (IE 10 and above)
Windows Users: If your browser does not support HTML5 and upgrading it is not possible, Chaikin Analytics is available as a standalone application. Chaikin support staff can assist with downloading and installing this.
To use Chaikin Power Suite, you must have a username and password which are permissioned for Power Suite access.
Your username will be the email address you specify when you subscribe.
Visit app.chaikinanalytics.com and sign in with your username and password.
Check “Remember Me” to have your password remembered across sessions.
Note: You may only be signed in to 1 session at a time. If you attempt to sign in a second time, your previous session will be signed out.
Reset or Forgot Password
If you forget your password or want to reset it, press “Reset Password”
Enter the email associated with your account and press “Reset Password”. An email will be sent to your address – follow the link to reset your password.
Press “Return to Sign In” to return to the Sign-in screen.
After signing in, you will see the Chaikin Power Suite workspace.
Chaikin provides quotes, Power Gauge Ratings, and Reports on approximately 5,000 U.S. equities, including all NYSE and NASDAQ listed stocks (except Bulletin Board and Pink Sheet stocks).
Quotes are updated once per minute during the trading day, and do not require an exchange agreement.
Power Gauge Ratings are calculated for any stock in the symbol universe with at least 1 calendar year of trading data, and valid values for at least 10 of the 20 model factors.
Enter a ticker symbol or company name into the Symbol Entry Box to see matching results.
Press < Return > or click to add a stock your “My Stocks” list (up to 99). A Power Gauge Report will load.
Press to clear text, and click outside the Symbol Entry Box to hide the results.
In the top right of the workspace, you’ll see an S&P500 quote (updated once a minute during the trading day).
Your Username is displayed near the right corner of the Main Controls area. Press the drop-down arrow and to Upgrade your subscription or “Log out” of your Chaikin Power Suite session.
Press the Settings button to:
- See application information and Terms of Service
- Access this User Guide
- Log out of your current session.
Select one the 3 Reports to display in the main window of the application.
These are described later in this User Guide
A .PDF file of the Report will be downloaded to your browser’s Downloads folder. From there, you can move it to your Desktop or desired location to save, email, or print.
As you add stocks, your My Stocks list will automatically sort by Power Gauge Rating, from strongest to weakest, enabling you to quickly spot risks and strong points in your portfolio.
At top, you’ll see a green/yellow/red Power Bar showing number of Bullish/Neutral/Bearish stocks in the list.
Select any stock to see a Power Gauge Report on it.
Press the Up/Down Arrow keys while in the Watchlist to move through stocks. Reports will automatically load as you move through the list.
Each stock shows Power Gauge Rating, Symbol, Last, and daily Change (and Percent Change.)
To delete a stock, hover over it in the Watchlist and press .
Sorting the Watchlist
By default, lists are sorted by Power Gauge Rating, from strongest to weakest.
- Press “Symbol” to sort alphabetically, once for ascending, again for descending.
- Press “Rating” to sort the list by Power Gauge Rating – once for strongest on top, again for weakest on top.
Signals and Alerts – What Are They?
Signals and Alerts are premium features – in the Chaikin Analytics application, the Watchlist would indicate stocks triggering Chaikin Buy and Sell Signals today, as well as important Alerts – these are listed below:
|Power Gauge Alerts||Stocks whose Power Gauge Rating has become Bullish or Bearish as of a result of the most recent update.|
|Price Trend Alerts||Stocks which have crossed above or below their long-term on a closing basis as a result of the most recent update.|
|Earnings Surprise Alerts||Companies which have reported quarterly earnings different from the analyst consensus estimate.|
|Estimate Revision Alerts||Companies whose consensus earnings estimate for the upcoming quarter has changed (by at least $.02 or 2%).|
Power Gauge Rating
The Chaikin Power Gauge Rating (PGR) is the core of the Chaikin Analytics system. It combines 20 factors into a simple, reliable indication of a stock’s potential performance relative to the market over the next 1-6 months. It is supported by 10 years of independent backtesting and 5 years of successful real-world performance.
The model looks at the following components:
- Financial Metrics
- Earnings Performance
- Price/Volume Activity
- Expert Opinions.
The rating ranges from Very Bearish (likely to underperform) to Very Bullish (likely to outperform).
How is it computed
Each market day, a Power Gauge Rating is computed for all stocks in the system which have at least one year of trading history and report earnings. Recent IPOs and ETFs will not have a Power Gauge Rating.
Twenty factors are weighted and combined into a daily PGR value. The end-of-week rating is stored as the historical value for the week.
The model is designed so that in non-trending markets there will be a consistent percentage of stocks with each rating at any given time. In strongly trending markets there may be more Bullish or Bearish stocks.
Calculations are performed by our portfolio modeling provider, portfolio123.com, which sources data from S&P Compustat.
How Do I use it
Since it includes so many key technical and fundamental metrics, the PGR can be an important building block in a Buy/Sell evaluation.
In short, the easiest way to benefit from the PGR is: consider buying or holding Bullish stocks, and avoiding Bearish stocks.
Of course, any investment decision depends on many factors, including suitability relative to your financial goals. The PGR should not be used in isolation — you may want to consider other factors such as Industry Group strength and timing, which Chaikin Analytics Signals are designed to assist with.
Components and Factors
The following are the 20 Power Gauge Factors, grouped into 4 top-level Components.
These can be seen by expanding the chart header.
Definitions of each factor can be found in the Power Gauge Factor Guide
Each Factor starts with a raw value which is normalized for consistency across different types of stocks, then given a 1-100 score reflecting its relative rank within the comparison universe (either the Russell 3000 or the stock’s Industry Group). Factors have been selected for their predictive value and lack of covariance.
Factors are combined with a proprietary weighting system into a raw rating, which is adjusted for strongly trending stocks to arrive at a final Power Gauge Rating.
Note. Factors in the Earnings and Experts Components are based on data from S&P Compustat. Earnings and Estimate values displayed in the Chaikin Analytics application are sourced from Zacks Investment Research. Both are industry-leading providers, however they use different methodologies. See the Earnings section for more detail.
Raw Power Gauge Rating
Factors are combined with a proprietary weighting system into a score which is ranked across the Russell 3000. This ranking is turned into a “raw” rating by dividing the universe into 7 equal parts, or “septiles” and assigning into “rating buckets” as follows:
This rating indicates a stock’s likely performance relative to the Russell 3000 over an intermediate time frame (1-6 months). Independent backtesting has confirmed the correlation between the Power Gauge Rating and relative performance at 1, 3, and 6 month intervals, in real-world performance as well as during test periods with known data.
Distribution of Ratings
Raw Power Gauge Ratings for Russell 3000 stocks have a consistent distribution at any given time.
The process is run separately on the broader 5,000 stock universe to determine Power Gauge Ratings for approximately 2,000 small cap stocks not in the Russell 3000. This is done so the very small cap stocks do not distort the rankings of the Russell 3000 stocks.
As a final step, the raw Rating may be adjusted to account for strongly trending stocks by applying a “technical overlay”, which can clip the Rating to “Neutral+” or “Neutral-“.
If a Very Bullish or Bullish stock closes below its long-term trend (the 200-day double-exponential average, or orange line on the Chaikin chart), the Power Gauge Rating will be clipped to Neutral+. The Bullish rating will be restored once the stock closes back above this line, assuming the raw Rating remains Bullish.
Conversely, If a Very Bearish or Bearish stock crosses above its long-term trend, the Power Gauge Rating will be clipped to Neutral-. The Bearish rating will be restored once the stock closes back below this line, assuming the raw Rating remains Bearish.
The overlay is applied when the raw Rating does not agree with the actual technical condition of the stock, as this indicates there may be some information driving the market which the model has not factored in yet.
When a Bullish Stock crosses below its long-term trend, it is at higher risk for a breakdown. By clipping to Neutral +, this is like applying a circuit breaker – it lowers the risk of the model, and reduces volatility in your returns if you are following the model, until price activity agrees with the Rating again, when the confidence level of the Rating is higher.
This allows the Chaikin Power Gauge model to respond to overall market trends: at times when many stocks are breaking down, the overall distribution of ratings will skew Bearish, and in times when many stocks are breaking out, rating distribution will Bullish.
Exception. A Bearish stock which closes above its long-term trend will remain Bearish if DEMA is falling.
Power Gauge Reports
Chaikin Power Gauge Reports are generated daily on over 5,000 U.S. stocks which have a valid Chaikin Power Gauge Rating. They provide a clear explanation of each of the 4 Power Gauge components – Financials, Earnings, Technicals, and Experts. Each component has a section describing how each the factors within it contributed to its Bullish/Bearish value, and has related supporting data and charts not available elsewhere in the application.
For a full explanation of Power Gauge Factors, see the Power Gauge Factor Reference Guide.
Below is a sample Power Gauge Report. The Report consists of a section explaining the overall Rating, and sections explaining Power Gauge Components. The Explanation is automatically generated based on logic which summarizes the most important elements.
Financials & Earnings
Technicals & Expert Activity
Notes on Data Sources
Data internal to the Chaikin Power Gauge model is sources from our model vendor Portfolio 123, which in turn sources fundamental information from S&P Compustat (including Industry classifications).
Data and Industry Groups displayed in the Report body itself, and in the Chaikin Analytics application are sourced by Chaikin directly from Zacks Investment Research.
Both of these are reputable, high-quality content sources, however there may be occasional slight differences due to financial accounting methods or Industry classification schemes.
Notes on Power Gauge Factors
The Power Gauge is designed as an indicator of likely relative performance over 1-6 month time frame. As such, all Component and Factor values are scaled relative to a comparison group – which is either the stock’s Industry Group or the overall market (the Russell 3000), depending on the factor, as listed in the Power Gauge Factor Reference Guide.
If you look closely at factor values, you may notice some seeming idiosyncrasies. Here are some things to keep in mind:
- A factor may have what seems like a “high value” but it may not be so high when ranked relative to its comparison group.
- Some factors – such as “Analyst Earnings Trend – look at the direction of a metric, rather than its absolute value. In these cases the current value may be high, but the factor value may score low because its trend has been down more than others in its comparison group.
- The “Technicals” Component looks at 5 price/volume-related factors, again all scaled relative to others in the market. This is not the usual way that technicals are considered, but it is appropriate and most effective in the Power Gauge model. So for instance, a stock could have what seems like a strong position relative to its trends, but not rank high in times of strong overall market uptrends.
- All factors in the Power Gauge have been normalized so that GREEN IS GOOD and RED IS RISK. If a factor value says “Bullish” this means that it is strong relative to its comparison universe. For most factors, a high absolute value is good. But for some, such as “Short Interest”, the inverse is the case – a high value is a Bearish indication. Again, in all cases: Green is Good.
- All language used in the Explanations describes these relative factor values. So if the Explanation says a stock has a “high price to book value”, this means the value is high relative to its comparison group.
- As mentioned, there may be some stocks whose Industry classification differs between Zacks and S&P Compustat. This generally accounts for cases where the factor value seems high – even relative to its Industry – but has a Bearish value.
If, after considering these notes, you still see data which seems incorrect, please contact us at email@example.com or 1 877 MYPORTFOLIO and we will look into it.
Portfolio Health Check
Portfolio Health Check is a concise look at important recent and upcoming events in your portfolio, that clearly identifies strengths, weaknesses, and opportunities. It can be viewed online, downloaded and printed as a 3 page PDF.
Refresh (Chaikin Power Suite only)
In Chaikin Power Suite, press the Refresh button to update the Portfolio Health Check Report to reflect additions or deletions you have made to your My Stocks list.
Portfolio Health Check Display
The section describes the overall health of your portfolio, as determined by looking at the percentages of Bullish, Neutral, and Bearish stocks in your list.
Last Week In Your Portfolio
This section recaps events from the previous calendar week, for stocks in your “My Stocks” list at the time the Report was run.
- Stocks with most positive percent change during the previous calendar week (Top 3).
- Stocks with most negative percent change during the previous calendar week (Top 3).
- Stocks whose Chaikin Power Gauge Rating turned Bullish during the previous calendar week (first 9, alphabetically)
- Stocks whose Chaikin Power Gauge Rating turned Bearish during the previous calendar week (first 9, alphabetically)
- Stocks reporting Earnings above the Consensus Estimate* (up to 4 largest positive surprises)
- Stocks reporting Earnings below the Consensus Estimate* (up to 4 largest negative surprises)
- Stocks whose Consensus Estimate* was raised during the previous calendar week (up to 4 largest positive revisions)
- Stocks whose Consensus Estimate* was lowered during the previous calendar week. (up to 4 largest negative revisions)
*A Consensus Estimate is a figure based on the combined estimates of the analysts covering a public company. Generally, analysts give a consensus for a company’s earnings per share and revenue; these figures are most often made for the quarter, fiscal year and next fiscal year. The Consensus Estimates used here are earnings estimates for the upcoming quarter.
Earnings Reports This Week
This sections is a day-by-day listing of the stocks in your list reporting earnings during the current calendar week, including Chaikin Power Gauge Rating and stock symbol. It is important to be positioned carefully ahead of Earnings, especially if you are holding Bearish rated stocks.
Industry Group Breakdown
The Chaikin Power Grid is one of the most powerful tools in the system. Chaikin suggests an approach of holding strong stocks in strong Industries. The Power Grid plots the stocks in your portfolio with Industries you hold listed strongest at top, weakest at bottom, and stocks displayed along the horizontal axis, weakest to strongest, going left to right.
Note: (Not all stocks may be displayed – Neutral stocks or groups may be dropped, and stocks may be dropped if many cluster in the same area of the grid.)
Our backtesting has shown that stocks in the green Upper Right quadrant (Strong Stocks, Strong Groups), have a significantly higher chance of outperforming stocks in the lower right quadrant (Weak Stocks, Weak Groups), and the market as a whole.
FIX: Stocks in the other two quadrants, where either the Stock or Industry is Strong, but not both, require other information (such as technicals) to make a statistically valid statement.
This section lists all of the stocks in your list, grouped by rating.
- Chaikin Power Gauge Rating
- Stock Symbol
- Last Price, as of end of previous calendar week
- Pct Chg from end of prior week to end of previous calendar week
Note: For simplicity of display, Very Bullish are combined with Bullish, Neutral+/- aren’t shown, and Very Bearish are combined with Bearish).
Chaikin Insights delivers weekly and daily market commentary and actionable stock ideas to Premium subscribers:
Market Insights is a weekly piece written by Marc Chaikin, available on Sundays and intended to prepare you for the coming trading week.
Regular Features Include:
- Market Overview
- Index, ETF, and Sector Overview
- What Should I do With My Portfolio?
- Bullish and Bearish Stock of the Week
- Strongest & Weakest Industries
Morning Insights is a daily service written by Certified Market Technician John Schlitz, available before the open each trading day.
Inside the Power Suite workspace, basic subscribers will see a summary of the most recent weekly Market Insights piece. Power Suite Premium users will see the full piece, and will have access to the full Chaikin Insights area.