Rachel Fox of FoxOnStocks.com discusses her short-term trading tips and strategies using Chaikin Analytics. More info: https://www.chaikinpowertools.com/

1. Great Summer Stock Plays
Finding Short-Term Performers with Chaikin Analytics
Rachel Fox - creator FoxOnStocks.com
Eric Chaikin - Chaikin Analytics
June 24, 2014
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Confidential.

2. Welcome
Chaikin Analytics for Desktop 2
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3. 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
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4. 4
Challenge: Information Overload

5. 5
Solution

6. 6
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Confidential.
The Solution: Chaikin Analytics

7. 7
Chaikin Power Gauge
Clear summary of a stock's potential – with a record of success
• Financials
• Earnings
• Technicals
• Experts
Improves your trading batting average!
© 2013 Chaikin Analytics LLC. All Rights Reserved. Proprietary and Confidential.

8. Chaikin Power Gauge
Clear summary of a stock's potential – with a record of success
• Financials
• Earnings
• Technicals
• Experts
8
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What is the Chaikin Power Gauge?
• Very Bullish-to-Very Bearish rating
• Indicates likely relative performance over 1-to-6 months
• 20-factor quantitative model looks at:
Financials, Earnings, Technicals, Experts
• Covers 5,000 U.S. equities
• 12 years backtesting, 3 years real-world performance
© 2014 Chaikin Analytics LLC. All Rights Reserved. Proprietary and Confidential.
A reliable indication of a stock’s potential, with a history of success

9. 9
Power Gauge Performance
Russell 3000 - Large, Mid, & Small Cap stocks
Annualized return by Rating group vs. benchmarks. Note: Test results are equal weighted; R3000 and SPDR ETF are cap-weighted.
Very Bullish stocks are highly likely to outperform index benchmarks.
Results thru Q1 2014
© 2014 Chaikin Analytics LLC. All Rights Reserved. Proprietary and Confidential.
Period Dates Very
Bullish
stocks
Russell 3000
ETF
SP500
SPDR ETF
All Real-
World
Performance
Jan ’11 -
Mar ‘14
+20.70%
annual return
14.99% 15.01%
Last 12 Months Apr ‘13 -
Mar ‘14
+34.29%
annual return
22.93% 22.21%
Year 2013 Jan ‘13 -
Dec ‘13
+49.59%
annual return
32.83% 32.13%
Life-To-Date
(includes test period)
Jan ‘99 -
Mar ‘14
+22.28%
annual return
5.07% 4.64%

10. 10
Play Offense Well: What to buy

11. • Power Gauge Rating Bullish
• Price Trend Up
• Relative Performance Strong
• Chaikin Money Flow Strong
• Buy Signal in Chaikin Analytics
What to Buy: Classic Bulls
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12. Play Good Defense
Turn Land Mines into Gold Mines
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13. 13
• Power Gauge Rating Bearish
• Price Trend Down
• Relative Performance Weak
• Chaikin Money Flow Weak
• Sell Signal in Chaikin Analytics
What to Sell: Classic Bears

14. 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
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15. Rachel’s 4-Step Process
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1. Find Strong Stocks in Strong Groups
2. Confirm Fundamentals & Technicals
3. Find the Carrots! (Buy/Sell Signals)
4. Identify Technical Patterns

16. My Process: Step 1
• Find heavily saturated industries:
Highly bullish
• Select based on likely market direc: on over next (1‐2 weeks)
Highly bearish
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17. 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:
• Strong Chaikin Money Flow (accumulation), Strong Relative Strength, OB/OS
My Process - Step 2

18. 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.
• Tells me when something it hot and ready to pop.
• Perfect for the short term.
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19. 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 19
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20. Step 4: Identify Patterns
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© 2013 Chaikin Analytics LLC. All Rights Reserved. Proprietary and Confidential.
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.

21. 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.
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22. Reversals
Double Top Double Bottom
Multiple Top Multiple Bottom
22Head & Shoulders
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23. Continuations
Bullish Pennant
Bullish Flag
Bearish Pennant
Bearish Flag
Wedge 23
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• 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.

24. Chaikin Analytics Demo
Let’s look at the system
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25. Trades I Made with Chaikin
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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)