Dan Russo, Chaikin Analytics’ new Market Strategist struck gold with a stock pick on Monday 4/16, and passed it on to Chaikin Analytics members. This was published in the Market Insights daily newsletter, Morning Insights, on Monday, April 16th.
Here’s what happened…
On 4/16, Dan picked Philip Morris (PM) as his Very Bearish Stock of the Day, when it was trading at $105.
As you can see from the intraday chart below, it is trading below $86 and has dropped 16% today alone.
How Did He Know?
What is instructive is that Dan spotted this as a bearish opportunity by combining the Very Bearish Power Gauge Rating with some technical signals (Money Flow and Overbought/Oversold), which is a perfect way to use Chaikin Analytics. First, he found a stock with a Very Bearish Rating. This generally gives the direction a stock is going to head in 3 to 6 months. By then overlaying the Money Flow and Overbought Indicators, he concluded that the direction may happen in a shorter timeframe than usual.
If you follow the Chaikin Analytics Webinars and the Chaikin Analytics training, this is exactly what investors should look for. The Power Gauge Rating gives confidence in the direction a stock will go. Then, using the technicals on the main screen, and the signals, it is possible to entry and exit decisions.
Philip Morris (PM) on April 19th, 2018
Here’s the excerpt from 4/16 Morning Insights (Included in Chaikin Analytics memberships) where Dan made the call:
Stock of the Day – Philip Morris – (PM) – Very Bearish
PM has a Very Bearish Power Gauge Rating and has been lagging the SPY since last summer. The stock is currently overbought based on our OB/OS Indicator and Chaikin Money Flow is near the worst levels of the past 12 months. Despite a recent rally, PM remains below a falling long-term trend line and has triggered an Overbought Sell signal today. Below $105, the stock will likely continue to move lower.