Marc Chaikin, Founder of Chaikin Analytics
After 40 years on Wall Street as a trader, stock broker analyst and options trader, Marc founded Chaikin Analytics LLC to deliver proven stochastic analytics to investors and traders, based on the Chaikin Power Gauge, a 20-factor alpha model proven effective at identifying a stock’s potential. Chaikin pioneered the 1st real-time analytics workstation for portfolio managers and stock traders, now part of Thomson Reuters’ institutional workstation, and developed computerized stock selection models and technical indicators, including Chaikin Money Flow, which are industry standards.
After 40 years on Wall Street as a trader, stock broker analyst and options trader, Marc founded Chaikin Analytics LLC to deliver proven stochastic analytics to investors and traders, based on the Chaikin Power Gauge, a 20-factor alpha model proven effective at identifying a stock’s potential. Chaikin pioneered the 1st real-time analytics workstation for portfolio managers and stock traders, now part of Thomson Reuters’ institutional workstation, and developed computerized stock selection models and technical indicators, including Chaikin Money Flow, which are industry standards.
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NewsTranscript
00:00 - Good morning.
00:00 - Good morning.
00:01 How are we doing, Mark?
00:02 It's good to have you, of course,
00:04 founder of Kenkin Analytics,
00:05 ready to talk a little bit about the markets.
00:08 It seems like we're in a little bit of a low time.
00:11 Of course, we got ourselves a nice little Q4 rally already.
00:16 Did we just get too much too fast
00:18 and this is all we're gonna get?
00:20 Or do you think Santa Claus is right around the corner?
00:24 - Yeah, you're missing the game here.
00:27 We did hit my year-end target of 40, minimum 4,600.
00:32 When you get a big move like you had,
00:35 one and a half to three days down in the major averages,
00:37 one and a half to 3%, that's normal.
00:41 So I think we've worked off the overbought
00:43 on a short-term basis
00:45 with a little weakness today for sure.
00:48 I've seen people, smart traders and investors,
00:51 stepping in and buying weakness in the tech stocks here.
00:55 But I think we're gonna rally into year-end
00:58 and you just gotta get on board.
00:59 You asked, Joel, you asked about support.
01:04 I think it's a little lower.
01:06 You're pretty tight there.
01:08 I mean, you could break that trading range
01:09 and flush out a couple of wavering bulls,
01:14 but 45, 30, there's a strong resistance,
01:18 which is pretty much the level that you were looking at.
01:20 But I think there's absolutely lock support at 4,400.
01:25 Hopefully we don't get down there,
01:27 but it would take some sort of a-
01:29 - How can we get down to 4,400, Mark?
01:32 - We're not, we're not.
01:33 - I mean, I don't think so either, no.
01:35 - The interest rates would have to tick back up.
01:37 Bond market would have to crap out.
01:39 That's not happening.
01:40 - Are you worried that rates are coming down too fast here?
01:45 I mean, you've had some big moves
01:47 and the bonds and TLT,
01:49 I mean, just like the market,
01:51 forced Powell and the raising rates on the upside.
01:54 Are they gonna do the thing in reverse here?
01:58 'Cause I really don't,
02:00 I mean, I've heard of five cuts in 2024.
02:05 I've heard one cut.
02:06 I mean, why can't interest rates stay steady?
02:10 Is that bad for the economy
02:12 if interest rates are just stable?
02:15 - No, as stable as good.
02:16 And I don't think they're gonna force the Fed
02:19 to do anything here.
02:20 This is just the bond market telling you
02:22 that there is no recession.
02:24 And the bond market knows more
02:29 than the stock market typically.
02:30 So I think what you have
02:33 is a wonderful interest rate environment.
02:35 The banks are amazing here.
02:38 Financials, they have been for two months.
02:40 We've been recommending the more conservative banks.
02:43 - Which ones?
02:45 What are the markets, sir?
02:46 JP Morgan?
02:47 - No, I don't wanna go there.
02:49 PNC, I love.
02:51 BK.
02:54 And then Truist.
02:56 TFC, which is down in Florida.
02:58 It used to be, I forget what it was.
03:01 But they- - What was it?
03:03 - It was, I don't know.
03:06 They have a good investment banking department.
03:08 Very good small stock research.
03:09 It's a merger, I think,
03:11 of some North Carolina bank and Truist.
03:15 And the bank down in Florida.
03:17 But all of these look great to me.
03:20 I'd stay away from BAC and JP Morgan.
03:23 I think there's more juice in the other names
03:26 and less exposure on the international front,
03:30 on the trading desk.
03:31 None of these companies have big trading desk exposure
03:34 or bond market exposure.
03:35 So that's a package that I love.
03:39 Bank of New York, PNC, and Truist.
03:42 But I love the conversation about the retail space.
03:46 Dollar General still has a bearish rating
03:50 in the power gauge,
03:51 and it's been underperforming for so long.
03:53 I just wouldn't touch that.
03:55 AbbVie has just reacquired a bullish rating,
03:58 so I'm more inclined there.
04:00 But healthcare is really tough.
04:03 And it's a tough place to be right now.
04:07 The closest, the stock that I really like
04:10 in healthcare is CVS.
04:12 - CVS, what do you like about CVS?
04:16 - Well, the power gauge likes it for one,
04:18 and it's starting to outperform the market.
04:20 It's breaking out of that double top range.
04:23 So, you've got to,
04:25 I think people don't realize that they own
04:28 a health insurance company,
04:29 and they're starting to leverage the benefits
04:33 of that relationship within store visits
04:37 and that go beyond vaccinations.
04:40 I just think it's a powerhouse.
04:41 But here's where the real excitement is outside of tech.
04:46 I mean, tech is just,
04:47 you can't even touch it until it pulls back.
04:50 A package of three retail stocks to buy.
04:52 - Okay. - Ready?
04:54 - It'll be with them.
04:55 - Etsy.
04:56 - Etsy.
04:58 - Shopify.
05:02 - Shop, of course.
05:05 - And Block.
05:06 - And Block, now that's an interesting one.
05:09 Block are emerging from a base,
05:12 and you just need to pull back to a rising 21-day average
05:16 if you get one.
05:17 But with Block and Etsy,
05:20 I think you can almost reach for them,
05:22 which you know me, I don't like to buy strength,
05:25 not at the upper bands.
05:27 But Shopify, you got to wait for it to pull back
05:31 to a 21-day average to have a comfortable entry point.
05:34 But I don't think it's going to go much below that.
05:37 But everywhere I went in doing my holiday shopping,
05:41 the shopping cart was Shopify.
05:45 And they're doing nice deals with analytics companies
05:50 and tie-ins.
05:51 And same thing is true with Square.
05:55 You go to a farmer's market up here in Connecticut,
05:58 or Block, symbol FQ.
06:00 Go to a farmer's market,
06:02 you go to a restaurant now,
06:06 you'll see even a taxi in Baltimore,
06:10 you're handed that little cube.