Whether we're being lead through another shallow sell-off to a buying opportunity or this is the start of a more significant pullback, the nice thing about a predictive tool which gets right so consistently stock performance in the intermediate term, is that our Chaikin Analytics portfolios "get the memo" in advance! Not only can we divine better stock trend trades, but paying heed to data driven alarm bells like the ones I believe are roaring at the moment, gives us the opportunity lock in our trading gains before we give our profits back to the market. And we can set up hedge positions using option strategies like these while incorporating Chaikin sell signals.
This coming Wed at 4:30 ET, Marc Chaikin will will share more ways for you do trade "the memo" that Chaikin Analytics subscribers get every day. Pre-regster here. These sessions are blessedly high in actionable advice and low on sales pitchiness factor.
For the time being, the relationship between equity Bulls and Bears has gone south according to Chaikin's decidedly fundamental-rooted equity modeling tool. The 20 factors that go into the Power Gauge give heavy weight to valuation metrics, earnings growth and consistency, and analyst/insider/short seller opinions that so often drive the market. Only about 20% of the model is derived from Marc's bread and butter Technical Analysis..but it's the important...like timing low risk trade entries. Here's one (CI) that's bucking market's neutral to bearish trend: Very Bullish PG, Oversold, with positive money flow in a strong industry group and sector. While analysts have been raising estimates, the stock has undergone some downgrades mostly due to its rich valuation. My "memo" is to trade the Oversold Buy signal to the upper volatility band only, and I'll be out by earnings. The valuation ding and current market conditions are encouraging me to trade with a shorter time horizon. Stop loss 5% below the short term Chaikin trendline.