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After more than 40 years on Wall Street, Marc Chaikin founded Chaikin Analytics LLC in 2009 to deliver proven stock analytics to financial service professionals and individual investors. With the Chaikin Power Gauge, an alpha-generating quantitative model as its centerpiece, Chaikin Analytics... More
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  • Market Closes At New Highs – Will There Be A Melt Up?

    Stock Tips by Market Expert Marc Chaikin

    Market Closes at New Highs - Will There Be a Melt Up?

    The S&P 500 Index closed on Friday at a new all-time high of 2,110.30, up 0.7% on the week.

    The U.S. stock market was aided by the strength of economic numbers coming out of France and Germany, which mitigate the risk of worldwide deflation, which spooked some equity market participants. The European stock markets have been outperforming the U.S. markets but we are still awash with liquidity, thanks to relatively high 10 year U.S. Treasury yields currently at 2.13%. This liquidity, along with the steady growth in corporate earning ex energy stocks, should give the stock market added fuel for a move to higher highs in 2015.

    With the stock market overbought and attracting bullish headlines, expect some minor pullbacks, but view them as buying opportunities in bullish Chaikin Power Gauge rated stocks in strong sectors and industry groups.

    The ability of the market to shake off negative economic reports in the retail and home building sectors, sharply reduced earnings estimates for 2015 for the S&P 500 Index, coupled with lower corporate guidance, is an example of the stock market climbing a wall of worry.

    Of course, earnings drive stock prices, but skeptical investors from individuals to institutions still have substantial cash on the sidelines and once again are underperforming the broad market averages. Liquidity and the performance game can trump poor economic reports, but not forever. The one bright spot is perhaps the most important. The employment picture continues to improve and hourly wages will soon begin to rise. Wal-Mart's (WMT) announcement on Friday of wage hikes for hourly workers will put pressure on other retailers to follow suit.

    To read more, including Marc's stock tips on the strongest and weakest stocks this week, subscribe to Chaikin PowerSuite, which includes Marc's weekly Market Insights: www.chaikinpowertools.com/links/pages/po...

    Disclaimer: Chaikin Analytics LLC is not registered as a securities broker-dealer or advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Chaikin Analytics does not recommend the purchase of any stock or advise on the suitability of any trade. The information presented is generic in nature and is not to be construed as an endorsement, recommendation, 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 stock research and decisions. Read the entire disclaimer.

    Feb 25 11:39 AM | Link | Comment!
  • Chaikin Market Insights – February 15, 2015

    by Marc Chaikin

    Market Breaks Out to New Highs - Everyone Noticed

    The S&P 500 Index closed on Friday at a new all-time high of 2,096.99, up 2.02% on the week. The S&P 500 Index broke out above the top of its 3 month trading range on Friday and should be able to move somewhat higher in the near-term. However, everyone took note of this, including popular internet web sites, and this unanimity of bullishness is likely to result in some choppy markets in the short-term. We are still bullish on the stock market for the first half of 2015 through the November elections, but we see an erratic path to the 2,250 - 2,300 target zone.

    The advance last week was fueled in part by a ceasefire in the Ukraine and some positive comments by the Greek finance minister about negotiations with the European Finance ministers over austerity reforms. The market was, in a sense, held hostage by the Greek financial crisis and is still vulnerable to negative headlines out of Europe.

    The Ukraine ceasefire is "generally holding" according to the BBC, but the peace accord brokered by France and Germany is fragile at best. Any change in either of these two negotiations will likely lead to short-term weakness in the stock market, and will be an opportunity to put cash to work in strong Chaikin Power Gauge rated stocks.

    The one irreversible positive last week was the resurgence in the German economy and the strength of stocks in Germany, France and India.

    According to my analysis, respect the strong technical picture in the stock market, but don't expect the advance to continue in a straight line to 2,200. Use short-term pullbacks to buy stocks and avoid chasing them at new highs….

    For more, subscribe to PowerSuite Premium, which includes Marc Chaikin's weekly stock market analysis, Market Insights.

    Feb 19 4:51 PM | Link | Comment!
  • Chaikin Market Insights - February 9, 2015

    Weekly Stock Market Tips by Marc Chaikin

    Lower and Upper Ends of Trading Range Seen in Volatile Week

    The S&P 500 Index closed on Friday at 2,055.47, up 3.03% on the week. The bumpy road for the stock market continued last week as the market broke below the 1,990 support level in early trading on Monday, only to rally and break above the upper 2,060 resistance area on Friday before closing down a fraction on the day.

    The market spoke loudly last week as it held support and then traded sharply higher. The drivers were a steep rally of over 20% in the price of crude oil, and a sharp increase in 10 year Treasury bond yields to above 1.9%. We are still locked in this 3 ½ month trading range between 1,990 and 2,060. Last week's turnaround, if not immediately reversed, may bring money in off the sidelines and enable us to finally see a resumption of the bull swing that has been on hold for the past 3 months.

    Mid-cap stocks made new all-time highs last week with small caps also stronger than the major averages. The market rallied from extreme levels of investor pessimism and is still subject to cross currents in Europe, China and the energy markets. It feels more comfortable with last week's rally to buy dips in bullish-rated Chaikin Power Gauge stocks, now that the market has spoken.

    Had I been more convinced of the market's ability to hold at the bottom of the trading range last week, I would still be a bit cautious today. That said, as we head into March, according to my stock research, the Financial and Technology stocks typically start to act better and that is a big plus for the market.

    What have we learned from earnings season?

    Analysts have been lowering their earnings estimates at the fastest clip in years and therefore expectations have generally been exceeded. Even when companies have disappointed, buyers have come in to provide support. The sector shift detailed in our ETF analysis out of Utility stocks and into Energy stocks may last a bit longer but there is no concrete evidence that crude prices have seen there lows. With crude stockpiles at very high levels and growing, supply is still a problem.

    For more, subscribe to Chaikin PowerSuite Premium.

    Disclaimer: Chaikin Analytics LLC is not registered as a securities broker-dealer or advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. Chaikin Analytics does not recommend the purchase of any stock or advise on the suitability of any trade. The information presented is generic in nature and is not to be construed as an endorsement, recommendation, 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 stock research and decisions. Read the entire disclaimer.

    Feb 12 11:28 AM | Link | Comment!
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