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Reports

Power Gauge Reports

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Chaikin Power Gauge Reports are generated daily on over 5,000 U.S. stocks which have a valid Chaikin Power Gauge Rating. They provide a clear explanation of each of the 4 Power Gauge components – Financials, Earnings, Technicals, and Experts. Each component has a section describing how each the factors within it contributed to its Bullish/Bearish value, and has related supporting data and charts not available elsewhere in the application.

For a full explanation of Power Gauge Factors, see the Power Gauge Factor Reference Guide .

Report Display

Below is a sample Power Gauge Report. The Report consists of a section explaining the overall Rating, and sections explaining Power Gauge Components. The Explanation is automatically generated based on logic which summarizes the most important elements.

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Content Notes

Notes on Data Sources

Data internal to the Chaikin Power Gauge model is sources from our model vendor Portfolio 123, which in turn sources fundamental information from S&P Compustat (including Industry classifications).

Data and Industry Groups displayed in the Report body itself, and in the Chaikin Analytics application are sourced by Chaikin directly from Zacks Investment Research.

Both of these are reputable, high-quality content sources, however there may be occasional slight differences due to financial accounting methods or Industry classification schemes.

Notes on Power Gauge Factors

The Power Gauge is designed as an indicator of likely relative performance over 1-6 month time frame. As such, all Component and Factor values are scaled relative to a comparison group – which is either the stock’s Industry Group or the overall market (the Russell 3000), depending on the factor, as listed in the Power Gauge Factor Reference Guide.

If you look closely at factor values, you may notice some seeming idiosyncrasies. Here are some things to keep in mind:

  • A factor may have what seems like a “high value” but it may not be so high when ranked relative to its comparison group.
  • Some factors – such as “Analyst Earnings Trend - look at the direction of a metric, rather than its absolute value. In these cases the current value may be high, but the factor value may score low because its trend has been down more than others in its comparison group.
  • The “Technicals” Component looks at 5 price/volume-related factors, again all scaled relative to others in the market. This is not the usual way that technicals are considered, but it is appropriate and most effective in the Power Gauge model. So for instance, a stock could have what seems like a strong position relative to its trends, but not rank high in times of strong overall market uptrends.
  • All factors in the Power Gauge have been normalized so that GREEN IS GOOD and RED IS RISK. If a factor value says “Bullish” this means that it is strong relative to its comparison universe. For most factors, a high absolute value is good. But for some, such as “Short Interest”, the inverse is the case – a high value is a Bearish indication. Again, in all cases: Green is Good.
  • All language used in the Explanations describes these relative factor values. So if the Explanation says a stock has a “high price to book value”, this means the value is high relative to its comparison group.
  • As mentioned, there may be some stocks whose Industry classification differs between Zacks and S&P Compustat. This generally accounts for cases where the factor value seems high – even relative to its Industry – but has a Bearish value.

If, after considering these notes, you still see data which seems incorrect, please contact us at support@chaikinanalytics.com or 1 877 MYPORTFOLIO and we will look into it.

Portfolio Health Check

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Portfolio Health Check is a concise look at important recent and upcoming events in your portfolio, that clearly identifies strengths, weaknesses, and opportunities. It can be viewed online, downloaded and printed as a 3 page PDF.

Refresh (Chaikin Power Suite only)

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In Chaikin Power Suite, press the Refresh button to update the Portfolio Health Check Report to reflect additions or deletions you have made to your My Stocks list.

Portfolio Health Check Display

Prognosis

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The section describes the overall health of your portfolio, as determined by looking at the percentages of Bullish, Neutral, and Bearish stocks in your list.

Last Week In Your Portfolio

This section recaps events from the previous calendar week, for stocks in your “My Stocks” list at the time the Report was run.

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  1. Stocks with most positive percent change during the previous calendar week (Top 3).
  2. Stocks with most negative percent change during the previous calendar week (Top 3).
  3. Stocks whose Chaikin Power Gauge Rating turned Bullish during the previous calendar week (first 9, alphabetically)
  4. Stocks whose Chaikin Power Gauge Rating turned Bearish during the previous calendar week (first 9, alphabetically)
  5. Stocks reporting Earnings above the Consensus Estimate* (up to 4 largest positive surprises)
  6. Stocks reporting Earnings below the Consensus Estimate* (up to 4 largest negative surprises)
  7. Stocks whose Consensus Estimate* was raised during the previous calendar week (up to 4 largest positive revisions)
  8. Stocks whose Consensus Estimate* was lowered during the previous calendar week. (up to 4 largest negative revisions)

* A Consensus Estimate is a figure based on the combined estimates of the analysts covering a public company. Generally, analysts give a consensus for a company's earnings per share and revenue; these figures are most often made for the quarter, fiscal year and next fiscal year. The Consensus Estimates used here are earnings estimates for the upcoming quarter.

Earnings Reports This Week

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This sections is a day-by-day listing of the stocks in your list reporting earnings during the current calendar week, including Chaikin Power Gauge Rating and stock symbol. It is important to be positioned carefully ahead of Earnings, especially if you are holding Bearish rated stocks.

Industry Group Breakdown

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The Chaikin Power Grid is one of the most powerful tools in the system. Chaikin suggests an approach of holding strong stocks in strong Industries. The Power Grid plots the stocks in your portfolio with Industries you hold listed strongest at top, weakest at bottom, and stocks displayed along the horizontal axis, weakest to strongest, going left to right.

(Note: Not all stocks may be displayed - Neutral stocks or groups may be dropped, and stocks may be dropped if many cluster in the same area of the grid.)

Our backtesting has shown that stocks in the green Upper Right quadrant (Strong Stocks, Strong Groups), have a significantly higher chance of outperforming stocks in the lower right quadrant (Weak Stocks, Weak Groups), and the market as a whole.

FIX: Stocks in the other two quadrants, where either the Stock or Industry is Strong, but not both, require other information (such as technicals) to make a statistically valid statement.

Your Stocks

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This section lists all of the stocks in your list, grouped by rating.

  • Chaikin Power Gauge Rating
  • Stock Symbol
  • Last Price, as of end of previous calendar week
  • Pct Chg from end of prior week to end of previous calendar week

Note: For simplicity of display, Very Bullish are combined with Bullish, Neutral+/- aren’t shown, and Very Bearish are combined with Bearish).