Chaikin Analytics for ipad User Guide

Chaikin Analytics for ipad User Guide v1.3.4 1

Contents 3 Chapter 1: Welcome 4 Overview 6 Chapter 2: Getting Started 7 Sign In 8 Quick Start 9 Chapter 3: Watchlists 10 Overview 11 Main Controls 12 Alert View 13 Signals and Alerts Overview 14 List View 15 Selecting Lists 16 Custom Lists 17 Chapter 4: Charts 18 Overview 19 List Navigation & Symbol Entry 20 Chart Sidebar 21 Chart Display 24 Chart Controls 25 Chapter 5: Chaikin Power Gauge 26 Overview 27 How is it Computed? 28 Components & Factors 29 Chapter 6: Alerts 32 Chapter 7: Signals 33 Overview 34 Definitions 36 Chapter 8: Reports 37 Portfolio Health Check 38 Chaikin Power Gauge Report 39 Chapter 9: Appendix 2

Welcome 3

Welcome to Chaikin Analytics Overview Chaikin Analytics for ipad is a ground-breaking mobile stock research platform which provides actionable information on U.S. equities that enables you to make confident Buy/Sell decisions. The service is oriented toward the needs of the serious investor. It can be downloaded for free from Apple s App Store, but requires a subscription agreement to use it. Stock market expert Marc Chaikin created these analytics based on his 45 years in the industry, with an eye toward reducing information overload and a focus on making profitable investment decisions. The core of the system is the Chaikin Power Gauge Rating - a proprietary, independently backtested model which combines technical and fundamental factors into a simple Bullish/Bearish rating. The system also includes the charts and technical analytics Chaikin has long been known for, such as Chaikin Money Flow and trading Signals. 4

Welcome Key Features With Chaikin Analytics you can: Get reliable Chaikin Power Gauge Ratings on any stock or list. See ETF constituents, history, and technical analytics. Create unlimited custom watchlists. See actionable trading Signals and important Alerts for any list. Work with Industries, Indices - even the entire S&P 500. Swipe thru charts on any list, featuring industry-standard Chaikin indicators. Download powerful research reports on over 5,000 U.S. equities, or a Portfolio Health Check on the stocks you care about. 5

Getting Started 6

Getting Started Device Requirements Chaikin Analytics will run on an ipad 1 or above (including ipad Mini) with ios5 or later. Usage requires an Internet connection. WiFi is recommended for better performance. The app is designed for Landscape orientation. Subscribe To subscribe visit www.chaikinanalytics.com/ipad or call 1-877-9STOCKS. Sign-In Screen Sign in with your email and password. You may only be signed in on 1 device at a time. Tap Reset Password to receive a reminder or to reset your password. In the app, under Settings, you can sign out and sign back in as another user. 7

Getting Started Quick Start 1 4 Set Up your Watchlists. Enter stock symbols and tap + to add to your My Stocks list. Tap [Edit] to delete stocks. Create up to 500 custom lists. Drill Down to Charts. Tap a stock to drill down to a Chart. Swipe thru your whole list, or only stocks with Signals or Alerts. 2 5 Spot the Winners. Your stocks will be sorted by Chaikin Power Gauge Rating. Green = good! Make a Buy/Sell Decision. See Power Gauge components, check Trends, Indicators, Signals, and Rating history to make a quick, confident decision. 3 6 Focus on Actionable Events See Buy/Sell Signals and Bullish/ Bearish Alerts in your list. Find Stocks Top-Down. The List Selector shows industries, Indices, and Chaikin HotLists - with Strongest lists on top. Easily find Bullish stocks in strong Industries. 8

Watchlists 9

Watchlists Overview After you sign in, you will see an Alert View showing active Buy & Sell Signals and important Alerts for stocks in your default list. Initially, this will be the system s My Stocks list (AAPL, CMSA, GOOG, MSFT) but you can edit this list, create other custom lists, or set another list as your default. If you use another Chaikin app and sign in with the same username and password, your My Stocks list will be shared across devices. You can select another list. Or switch between Alerts, List or Panel views. On these screens you can get quotes, drill down to charts, or rotate the ipad for a Portfolio Health Check on the list you re viewing. 10

Watchlists Main Controls Select a View: Alerts, List, Panels List Options - Rename this List, set it as your Default or create a new Custom List Power Bar - Shows number of Bullish/ Neutral/Bearish stocks in List Symbol Entry: Select a stock to quote, chart, or add to list Refresh Quotes Settings Current List - Select another List Sort List: Alphabetically or by Power Gauge Rating Getting a Quote Enter a symbol or company name to see matching results. Tap a symbol to see a Quick Quote, to add to your current list or Chart. Symbol Universe Chaikin provides quotes, historical data, Power Gauge Ratings, and fundamentals on approximately 5,000 U.S. equities, including all NYSE and NASDAQ listed stocks (except Bulletin Board and Pink Sheets). NYSE and NASDAQ ETFs have quotes, history, and technical analytics. ETFs have limited fundamentals and do not have Power Gauge Ratings. We provide constituents for long-only U.S. equity ETFs. Quotes are 20 minutes delayed, updated once per minute during the trading day, and do not require an exchange agreement. 11

Watchlists Alert View The Alert View includes List Shortcuts, a Watchlist, and Alerts for the current list. Daily Buy and Sell Signals trigger when certain technical conditions are met, and are intended as actionable trading opportunities. Bullish and Bearish Alerts are important events that call attention to specific stocks for a closer look. These include Power Gauge Alerts, Price Trend Alerts, Earnings Surprises, and Estimate Revisions. List Shortcuts: Switch between My Stocks, the SP500, and the All Signals hotlist, which contains stocks triggering a Buy or Sell Signal today. Watchlist: Power Gauge Rating, Ticker Symbol, Last, Change, and Percent Change for all stocks in the active list. The list will be sorted by Rating, from Very Bullish to Very Bearish. Tap to sort alphabetically, or tap to sort by Rating again. Chart Drill-Down: Tap a stock in the Watchlist to loop thru Charts on all stocks. Tap a stock in one of the 4 Alerts sections (Buy Signals, Sell Signals, Bullish Alerts, Bearish Alerts) to loop through only stocks in that section. 12

Watchlists Signals and Alerts Overview Signal Oversold Buy/Sell Momentum Breakout/Breakdown Reversal Buy/Sell Money Flow Buy/Sell Rel. Strength Buy/Sell Rel. Strength Breakout/Breakdown Description Stocks at potential short-term reversal points. Stocks which have broken out of a trading band with momentum likely to continue. Stocks reversing direction relative to the market, with momentum likely to continue. Stocks with strong money flow and short-term momentum likely to continue. Stocks outperforming (or underperforming) the market, with momentum likely to continue. Strong (or weak) stocks which have started to outperform (or underperform) the market. Each Signal shows Effective Date and the stock s closing price at the time of calculation. Signals are stamped Today until the next closing market data is received, even on weekends and holidays. Signals for Today are shown first, grouped alphabetically within Signal type, then Signals for the previous market day. Alert Power Gauge Alert Price Trend Alert Earnings Surprise Estimate Revision Description Stocks whose Power Gauge Rating has become Bullish or Bearish as of a result of the most recent update. Stocks which have crossed above or below their long-term average on a closing basis as a result of the most recent update. Companies which have reported quarterly earnings different from the analyst consensus estimate. Companies whose consensus earnings estimate for the upcoming quarter has changed (by at least $.02 or 2%). 13

Watchlists List View The List View displays the following information for each stock. Technical Rating An indication of a stock s technical condition, determined as a weighted sum of its position relative to its short and long-term trends. Active Signals An indication of any Signals currently triggered for the stock. Filter By Signal Select All Signals Today, or show only stocks triggering a specific Signal. Panel View Panel view shows the same information as List View, but in a more compact display. Chart Drill-Down Tap any stock to drill down to a Chart and swipe thru Charts on all stocks in the current list. 14

Watchlists Selecting Lists To select a list for display: 1. Tap the current list name to pop up the List Selector. 2. Select from: User Lists - create up to 500 custom watchlists Industries - 62 groups provided by ZACKS Investment Research Indices - major indices including DOW30, NASDAQ100, OEX100, & S&P 500 ETFs Long-Only U.S. equity ETFs, grouped by Sector and Style. Chaikin HotLists - Important screened and curated lists 3. Sort lists either Strongest on top, or alphabetically. The Power Bar shows the breakdown of Bullish/ Neutral/ Bearish stocks in a list. Strongest lists are those with the highest percent of Bullish stocks. 4. Tap a List to select it. Charting an ETF If you select an ETF list, you can chart the ETF s composite history by pressing 15

Watchlists Custom Lists You can create up to 500 custom Watchlists in Chaikin Analytics. To Create a custom List: 1. Tap the List Options Button 2. Tap Create New List 3. Enter the list name 4. Tap Create List To Edit a List: 1. Type a symbol or company name into the Symbol Entry box. 2. Tap + to add to your list. 3. To delete symbols, either tap Edit or swipe a row to reveal the DELETE button. To set a List as your Default: 1. Tap List Options. 2. Then Set as Default. This list will load when you sign in. To Rename a List: 1. Tap List Options. 2. Tap Rename and enter new list name. To Delete a List: 1. Tap List Options. 2. Tap Delete List. You cannot delete your default list. Set another list as your default first. List Options 16

Charts 17

Charts Overview The Chaikin Analytics chart screen is designed to facilitate a quick, reliable Buy/Sell decision on a stock. On this screen you will see the Chart Sidebar, Chart Controls and Chart Display. Chart Controls Time Frames Chart Sidebar Quote Area Historical Signals Data Window (drag left or right) Ratings Expandable Power Gauge Chart Display Fundamentals 18

Charts List Navigation & Symbol Entry List Navigation When you drill down from the Watchlist, your list remains active. Swipe left or right on the chart to move through the list. If you drilled down from a section in the Alert View (Buy Signals, Sell Signals, Bullish Alerts, Bearish Alerts), or if you have filtered the List in List View or Panel View, you ll be swiping through those stocks only. Changing Lists If you select another list from the List Selector, your list will change, and will display when you return to the Watchlist. If you tap the stock s Industry Group, your list will change, and you can now swipe through stocks in this Industry. Entering a Symbol If you enter a symbol in your current list, you will jump to that stock. If the symbol is not in your current list, you will see a Chart for that symbol - just press DONE to return to your list. 19

Charts Chart Sidebar The Chart Sidebar shows a Quote Area, Ratings Area, and Fundamentals window. Quote Area Stock Symbol, Company Name. Industry Group. Tap to switch to this list. Info. Tap to see company description. Add To. Tap to add to any custom list. Ratings Area Expandable Power Gauge. Tap to see Components. Fundamentals Swipe for Performance, Earnings and Ratios. Tap a Component to see its Factors. Technical Rating Industry Rating Signals 20

Charts Chart Display The Chaikin Analytics Chart display shows 5 slices of high-value indicators. Price, Averages, Bands Price Bars. EMA21. 21-day Exponential Moving Average of closing price. Chaikin Bands. Computed as a percentage above and below EMA21. Chaikin Trend. 200-day Double-Exponential Moving Average. How to use it Chaikin Bands are an indication of a stock s normal trading range. When a stock hits a band, this is a potential decision point. If the stock drops to a Lower Band and the Power Gauge is Bullish and other factors in your decision process confirm, this can be a good entry point for a stock you are looking to own. Conversely, if a stock rallies to an Upper Band while the Power Gauge and other factors are Bearish, you might consider taking profits. 21

Charts Chart Display Chaikin Money Flow (CMF) Chaikin Money Flow is a propriety measure of net accumulation (green) or distribution (red). This is a simple, effective way of including volume in your analysis, and has become an industry-standard tool. A stock which is closing high in its daily range on high volume is considered to be under net accumulation, and conversely a stock closing nearer its daily low on high volume is considered to be under net distribution, as these patterns may reflect institutional trading activity. How to use it CMF ranges from +100 to -100. A stock which closes at its high 21 days in a row will have a value of 100. A value of +25 or -25 is considered strong accumulation or distribution. We have also found that strong Money Flow Persistency can be a Bullish indication. A solid region of green Money Flow over the preceding 6-month period is a useful supporting factor along with a Bullish Power Gauge Rating (see Cigna (CI) for 2013). Conversely, a solid region of red indicates strong distribution. 22

Charts Chart Display Overbought/Oversold (OB/OS) This indicator provides a smoothed, scaled cyclical indication of where a stock is in its normal trading range. How to use it When OB/OS drops below 30 then turns up, this can be a good entry point when confirmed by the Power Gauge. A level of 70 is considered Overbought. Relative Strength This indicator provides a consistently scaled indication of a stock s recent performance relative to the S&P 500. When the gradient gets to green, this indicates the stock has been strongly outperforming the market. How to use it Periods of very strong (or very weak) relative activity may indicate an underlying shift in the market s sentiment about a stock which is not yet picked up in the Power Gauge rating. Historical Power Gauge Rating A ribbon of the stock s Power Gauge Rating over time. How to use it The Chaikin Power Gauge is described in the following section. ETFs do not currently get a Power Gauge Rating. 23

Charts Chart Controls Time Frames Toggle between 1 year daily and 5 year weekly chart. Historical Signals Toggle a Buy/Sell signal pair historically on or off the chart. Data Window Tap a Chart, or press to turn on a data window, showing price and indicator values for a particular date. Drag the window to move it. Tap the chart or the icon again to turn it off. Active Signals An indication of which Signal or Signals are currently triggered for this stock. Tap to toggle on or off. ETF Charts Although they do not have Power Gauge Ratings, ETF charts have the same technical analytics as stock charts and can be used to make informed Buy/Sell decisions. Look for ETFs which have been above a rising long-term trend, outperforming the market, with persisent Chaikin Money Flow. Then be patient and wait for Oversold pullbacks. More detail on ETF Charts can be found here. 24

Chaikin Power Gauge Rating 25

Chaikin Power Gauge Rating Overview The Chaikin Power Gauge Rating (PGR) is the core of the Chaikin Analytics system. It combines 20 factors into a simple, reliable indication of a stock s potential performance relative to the market over the next 1-6 months, and is supported by 10 years of independent backtesting. The model looks at the following Components: Financial Metrics Earnings Performance Price/Volume Activity Expert Opinions. The rating ranges from Very Bearish (likely to underperform) to Very Bullish (likely to outperform). VERY BEARISH BEARISH NEUTRAL NEUTRAL NEUTRAL BULLISH VERY BULLISH How do I use it? Since it includes so many key technical and fundamental metrics, the PGR can be an important building block in a Buy/Sell evaluation. In short, the easiest way to benefit from the PGR is: consider buying or holding Bullish stocks, and avoiding Bearish stocks. Of course, any investment decision depends on many factors, including suitability relative to your financial goals. The PGR should not be be used in isolation - you may want to consider other factors such as Industry Group strength and timing, which Chaikin Analytics Signals are designed to assist with. 26

Chaikin Power Gauge Rating How is it Computed? Raw Power Gauge Rating Before each trading day, a raw Power Gauge is computed for all stocks in the system which have at least one year of trading history and report earnings. Recent IPOs and ETFs will not have a Power Gauge Rating. Twenty factors are weighted and combined into a daily PGR value. The end-of-week rating is stored as the historical value for the week. Technical Overlay A technical overlay is applied, which may clip a Bullish or Bearish rating to Neutral if the stock s technical trend does not confirm the raw Power Gauge Rating. A Bullish stock will be clipped to Neutral+ if it closes below its long-term trend (200-day DEMA, the orange line on the Chart) A Bearish stock will be clipped to Neutral- if it closes above its long-term trend. This acts as a circuit-breaker to minimize risk in cases where trading activity may not yet be reflected in the model. Exception: A spike in short-term volume indicates a potential change in direction and will remove the circuit-breaker, allowing the Power Gauge Rating to return to it s normal value. Rating Distributions The model is designed so that in non-trending markets there will be a consistent percentage of stocks with each rating at any given time. In strongly trending markets, there may be more Bullish or Bearish stocks, due to the technical overlay. 27

Chaikin Power Gauge Rating Components & Factors The following are the 20 Power Gauge Factors, grouped into 4 top-level Components. These can be seen by expanding the Power Gauge in the Chart Sidebar. Each Factor starts with a raw value which is normalized for consistency across different types of stocks, then given a 1-100 score reflecting its relative rank within the comparison universe (the Russell 3000 or Industry, depending on the factor). Factors are combined with a proprietary weighting system into a raw rating, which is adjusted for strongly trending stocks to arrive at a final Power Gauge Rating. Factors have been selected for their predictive value and lack of covariance. Financial Metrics Earnings Performance Price/Volume Activity Expert Opinions LT Debt/Equity Ratio Earnings Growth Relative Strength vs Market Earnings Estimate Revisions Price to Book Value Earnings Surprise Chaikin Money Flow Short Interest Return on Equity Earnings Trend Price Trend Insider Activity Price to Sales Ratio Projected P/E Ratio Price Trend Rate-of-Change Analyst Opinions Business Value Earnings Consistency Volume Trend Relative Strength vs Industry 28

Alerts 29

Alerts Power Gauge Alerts Power Gauge Ratings are generated before each trading day for stocks which have become Bullish or Bearish as a result of the daily update, generally by 7:30am EST. (Note: there is no Alert if a Bullish stock moves to Very Bullish or a Bearish stock moves to Very Bearish). Date. The effective date of the alert generally, the date of calculation. Price Trend Alerts Price Trend Alerts are generated after each trading day for stocks which have crossed above or below their long-term trend on a closing basis as a result of the nightly update, generally by 11:30pm EST. This may also trigger a Power Gauge Alert. The trend used is Chaikin Trend a 200-day double-exponential average the orange line on Chaikin Analytics charts. Date. The effective date of the Alert - the trading day following the cross over. Price. The closing price that triggered the Alert. 30

Alerts Earnings Surprises Earnings Surprises can be a primary driver of volatile market activity. Chaikin Analytics receives quarterly earnings announcements 5 times during the trading day, and again at 1:15am after each trading day. Stocks which report Earnings that differ from their consensus Estimate generate an Earnings Surprise Alert. We have found that stocks with Very Bearish Power Gauge ratings are at higher risk for negative earnings surprises, and the converse is true for Very Bullish ratings. You can use this fact to help position you ahead of earnings announcements. Date. Date of the earnings announcement. Act. Actual reported quarterly EPS. Est. Consensus estimate quarterly EPS. Pct. Percent difference between Estimate and Actual. Estimate Revisions Changes in analyst Earnings Estimates can also be significant drivers of market activity. Chaikin receives consensus quarterly estimates after each weekday, and generates Estimate Revision Alerts when the new estimate differs from the previous estimate by more than 2 cents per share (or 2%). Date. The date the Alert was calculated. Old. Previous consensus earnings estimate for upcoming quarter. New. New consensus earnings estimate for upcoming quarter. Pct. Pct difference between Old and New estimate. 31

Signals 32

Signals Overview Chaikin Analytics provides 6 pairs of Buy/Sell Signals to identify stocks with important patterns of trading activity. While Power Gauge Ratings are designed to help you decide which stocks to buy, Signals help you decide when. We recommend using Signals in conjunction with Power Gauge, Chart technicals, and Industry Ratings to arrive at a fully informed Buy/Sell decision. Signals are updated daily. If a Signal has not recently triggered, and its conditions are met at the Close, the Signal will be Active until the following Close. Features See a Buy/Sell icon for any stock in a Watchlist. Filter a list to see only stocks with a specific Signal triggered. See Active and Historical Signals on a Chart. 33

Signals Definitions The following are the Buy and Sell Signals in the Chaikin Analytics system. Signals are defined by a triggering event plus supporting conditions. Key conditions are noted - other filter criteria are included to improve the effectiveness of each Signal. Buy Signals Sell Signals Oversold Buy Stock makes a short-term low WHILE Price is Oversold Power Gauge is BULLISH Overbought Sell Stock makes a short-term high WHILE Price is Overbought Power Gauge is BEARISH Breakout Buy Stock breaks out of its Upper Band WHILE Stock has been outperforming the market Money Flow is strong Power Gauge is BULLISH Breakdown Sell Stock breaks down below its Lower Band WHILE Stock has been underperforming the market Money Flow is weak Power Gauge is BEARISH Reversal Buy Stock crosses over its short-term trend WHILE Stock has been underperforming the market Power Gauge is BULLISH Reversal Sell Stock crosses under its short-term trend WHILE Stock has been outperforming the market and Power Gauge is BEARISH 34

Signals Definitions Buy Signals Sell Signals Money Flow Buy Stock crosses over a rising short-term trend WHILE Money Flow is positive Power Gauge is BULLISH Money Flow Sell Stock crosses under short-term trend WHILE Money Flow is negative Power Gauge is BEARISH Relative Strength Buy Stock crosses over its short-term trend WHILE OB/OS is rising Stock has been outperforming the market Relative Strength Sell Stock crosses under its short-term trend WHILE OB/OS is falling Stock has been underperforming the market Relative Strength Breakout Relative Strength becomes strong WHILE Close is above Chaikin Trend OR Power Gauge is BULLISH Relative Strength Breakdown Relative Strength becomes weak WHILE Close is below Chaikin Trend OR Power Gauge is BEARISH Notes on Signal Calculations: Signals are computed after each trading day when new closing data is received, generally by 11:30pm EST each week night. They do not change intraday. Calculations are based on market data and Power Gauge Ratings at the time of calculation, and are valid until the next trading day s closing data is received. Ratings are updated before the following open and may change after Signals are calculated. ETFs may only trigger Relative Strength Signals. 35

Reports 36

Reports Portfolio Health Check Rotate your ipad to portrait orientation (vertical) while displaying viewing any stock list to automatically generate a Chaikin Portfolio Health Check report for that list. This can be your My Stocks list or any list in the system. Chaikin Portfolio Health Check is a weekly analysis tailored to your individual holdings that shows you where your stock portfolio is headed in the next 3-6 months a virtual watchdog that alerts you to key events in your portfolio. The Power Grid shows you at a glance whether your stocks are in strong or weak Industry Groups, and Potential Swaps gives you specific ideas for swapping weak for strong. 37

Reports Chaikin Power Gauge Report Rotate your ipad to portrait orientation (vertical) while displaying a Chart to automatically download a Chaikin Power Gauge Report for the current stock. This PDF provides an easily understood interpretation of the Chaikin Power Gauge Rating and all of its components, as well as other important technical and fundamental analytics. Power Gauge and Portfolio Health Check Reports can be emailed or printed for offline reading. 38

Appendix 39

Chaikin Analytics: RealTick Edition The RealTick edition of Chaikin Analytics is specifically designed for active investors who require access to fast and detailed transaction capabilities. It offers the active investor all the same rich functionality available in Chaikin Analytics combined with the ability to transact over RealTick s high speed data network. By clicking on the RealTick button at the top of Chaikin Analytics screen, the user will gateway to the RealTick service from within Chaikin Analytics using an embedded browser (see image). Once users have completed their trades, they can easily toggle back to full screen mode in Chaikin Analytics. Users must have valid RealTick credentials to access RealTick s real-time market data and advanced execution management services. The integration of Chaikin Analytics time tested analytics with RealTick s sophisticated trading tools provides the active investor with a powerful toolset to uncover actionable investment ideas and to transact quickly and reliably. 40

Disclaimer Chaikin Analytics (CA) is not registered as a securities broker-dealer or investment advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. CA does not recommend the purchase of any stock or advise on the suitability of any trade or investment. The information presented is generic in nature and is not to be construed as an endorsement, recommendation, investment advice or any offer or solicitation to buy or sell securities of any kind, but solely as information requiring further research as to suitability, accuracy and appropriateness. Users bear sole responsibility for their own investment research and decisions. www.chaikinanalytics.com/disclaimer 41

End of User Guide 42