Finding Long and Short Ideas

Using Chaikin Analytics and the Chaikin Power Gauge™ rating

Classic Bulls

Classic bulls are stocks with...

(1) Very/Bullish Rating, with persistent green

(2) Above a rising long-term trend

(3) Strong Chaikin Money Flow (persistent green)

(4) Strong Relative Strength (persistent green)

(5) Strong Industry Group is preferred.

These stocks are statistically likely to outperform. Look for oversold pullbacks to a support level, or other Buy Signals (6), as low-risk buy opportunities.

Steer clear of...

  • “Low-quality names”
  • Illiquid stocks & choppy charts
  • Micro-cap (< $50-$75m)
  • Price under < $3-$5
Classic Bulls Chart

Classic Bears

Classic Bears chart

Classic bears are stocks with...

(1) Very/Bearish Rating, with persistent red

(2) Below a falling long-term trend

(3) Weak Chaikin Money Flow (persistent red)

(4) Weak Relative Strength (persistent red)

(5) Weak Industry Group is preferred.

These stocks are statistically likely to underperform. Look for overbought rallies to a resistance level, or other Sell Signals (6), as low-risk short opportunities.

Turnarounds

A stock which has been out of favor...

(1) Crosses back above its long-term trend

(2) Rating becomes Bullish, and stays

(3) Money Flow becomes positive, and stays

(4) Relative Strength becomes positive, and stays

These may happen in any order.

(5) Oversold Buys or other Buy Signals after the Turnaround is solidified can be very strong entry points.

These stocks offer opportunities to get in earlier in an intermediate-term move. The earlier in the move, the higher the risk that the turnaround is not complete yet. Consider a stoploss a few percent below the 200-day DEMA (long-term trend).

Turnaround Chart

ETFs

To find ETFs with Signals, select ETFs — Top 100 from Chaikin Hotlists, then sort by Signal in the Watchlist.

Bullish ETFs have...

(1) Strong constituent Power Gauge Ratings

(2) Above a rising long-term trend

(3) Solid Chaikin Money Flow

(4) Solid Relative Strength

(5) Look for Relative Strength Buy Signals or oversold conditions on Bullish ETFs for low-risk entry points

Before buying a Sector or Industry ETF, compare it to the others in its Category. ETFs are sorted Strong to Weak in the List Navigator, ranked by constituent Ratings.

General Tips

For Buy Ideas; vice versa for Shorts...

Start with a desired list. If small, arrow through all Very Bullish, all Bullish if possible. Confirm chart technicals.

If list is large, sort by Signal. Arrow through all Buys. Confirm technicals.

If too many Signals, Filter By Signal. Start with Oversold Buys and Relative Strength Buys. Arrow through stocks, confirm technicals.

3 Ways to Find Ideas

1. Start w/ the SP500

  • Select SP500 from Indices
  • Sort by Signal
  • Arrow through Buy Signals
  • Confirm chart technicals

Strong Industry Groups preferred

2. Start w/ Industry Groups

  • Arrow through top 5 to 7 Industries
  • Arrow through Very/Bullish stocks
  • OR Sort by Signal
  • Confirm w/ chart technicals

Consistently Weak Industries are a great place to find Shorts

3. Start w/ Signals

  • Select the All Signals hotlist
  • Arrow through Very/Bullish stocks, OR
  • Filter for Oversold then Rel Strength Buys
  • Confirm w/ chart technicals

“All Signals” has all stocks triggering any Signal today and may be a large list.