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Marc Chaikin
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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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Chaikin Power Gauge Stock Rating Blog
  • Autumn Panic Is Buying Opportunity 0 comments
    Sep 22, 2011 8:52 AM | about stocks: T, AAPL, AMGN, ARG, BBBY, CMCSA, HUM, IBM, LLY, M, MA, MSFT, SBUX
    Urgent Plea For Investors to Stay Calm

    Now that the Fed has done, not just the Twist, but the "Twist and Shout" and pointed out how vulnerable the U.S. and global economies are, it is time to take stock...literally and figuratively.

    We are in the time zone for an Autumn Panic Low. While common wisdom places these panic bottoms in October, we may see our buying opportunity as early as Friday in the late afternoon.

    Prepare a shopping list of buy candidates culled from the stocks below with Bullish potential based on the Chaikin Power Gauge Rating and try to ignore the headlines. In fact if there is a Bear on the cover of Barron's, Business Week or Time magazine all the better.

    Some of these stocks have just made new highs, a sure sign of positive earnings in the face of a stagnant economy. Others have traded more closely in line with the market but have bullish underlying potential based on the Power Gauge Rating.

    Investors with a long-term time horizon should view panic selling today and tomorrow as a buying opportunity. Traders need to be more nimble but should certainly be aggressive buyers on extreme weakness in the next few days.

    If past patterns are any guide, the rebound from these panic lows will be fast and violent, so this opportunity is for the decisive. That is why you want to find 2 or 3 stocks from this list and be prepared. Do not bottom fish in the pond of fallen angels but rather buy these stocks with positive potential over the next 3-6 months.

    Buy candidates on extreme market weakness:

    Airgas(NYSE:ARG), Bed Bath & Beyond(NASDAQ:BBBY)
    Comcast(NASDAQ:CMCSA), Humana(NYSE:HUM)
    Macys Inc.(NYSE:M), Mastercharge(NYSE:MA)
    Microsoft(NASDAQ:MSFT), Starbucks(NASDAQ:SBUX)

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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