Pete Carmasino, Chief Market Strategist at Chaikin Advisory Solutions, joined Keith Black, Managing Director of RIA Channel, to discuss the Chaikin Power Gauge Rating.
The Chaikin Power Gauge Rating combines 20 technical and fundamental factors to provide daily ratings on over 5,000 stocks. The ratings are objectively and quantitatively determined without any relationship with investment bank research analysts. Each day, the universe of stocks is scored on factors related to financials, earnings, experts, and technicals. The system produces detailed reports on the potential forward-looking performance of each stock, rating investment opportunities from very bearish to very bullish.
Carmasino notes that combining technical and fundamental information into stock ratings is essential, as a fundamentally strong stock may continue to trade on a downward price trend. While fundamentals can help determine which stocks to own, the technicals provide information on the timing of making those investments. Advisors can use the Chaikin system in various ways, such as working with clients to understand the potential price action of a concentrated stock position or using it as a screening method compatible with an advisor’s style, such as deep value or high dividends.
Resources: