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Friday, December 29, 2023
Giving Jon Najarian a Great Call
"Based on the bearish Power Gauge rating, I think the risk of a negative earnings surprise is too great." I said those words in 2012, as I was appearing for the first time on CNBC's Fast Money Halftime Report.
Editor's note: We've almost made it to the end of 2023...
When we write to you again in the Chaikin PowerFeed, we'll be in the new year.
Our offices and the markets are closed Monday for New Year's Day. So we won't publish the PowerFeed that day. You can expect to receive your next issue on Tuesday, January 2.
With that in mind, it's time to wrap up our special four-part holiday series...
Today's essay originally appeared in the PowerFeed on March 10, 2022. It's a valuable lesson about how the Power Gauge works. As you'll see, it can help you avoid stocks, too..
Giving Jon Najarian a Great Call
By Marc Chaikin, founder, Chaikin Analytics
"Based on the bearish Power Gauge rating, I think the risk of a negative earnings surprise is too great."
I said those words in 2012, as I was appearing for the first time on CNBC's Fast Money Halftime Report.
On the panel next to me was Jon Najarian. I'm guessing you've heard of him...
The NFL-linebacker-turned-high-profile-trader had become a household name in the financial world by then. He would go on to sell his publishing and trading platforms, optionMONSTER and tradeMONSTER, to E-Trade just a few years later for $750 million.
Najarian was at the peak of his financial career. And although I'd been making the rounds on CNBC, this was the first time we had crossed paths.
The stock we were talking about was online travel agency Priceline, which later changed its name to Booking Holdings (BKNG).
Priceline was one of Jon's bullish trades at the time. And I had just told CNBC viewers that it looked too risky.
The thing is, I didn't know anything about Priceline.
But I did have the Power Gauge to guide me. And that was all I needed...
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As I've said before, the Power Gauge is the culmination of my life's work.
It combines more than five decades' worth of data-driven market research. And it packages everything I've learned about the markets into actionable information for every stock it processes.
So I didn't need to know much about Priceline. I just typed in the ticker and got my report.
Immediately, I saw that Priceline was set up to release disappointing earnings. The Power Gauge made it clear.
Obviously, the interface for the Power Gauge has gotten more refined over the years. Here's an example of another stock that the Power Gauge turned "bearish" on recently...
You've probably never heard of AptarGroup (ATR).
But that's not important – because the Power Gauge has.
Each of these sliders is backed by data that can be further explored. And the data shows us that AptarGroup is in a risky spot for investors right now.
That was the kind of setup I saw when I told Jon that Priceline looked like a no-go. The Power Gauge had provided me with the most important (and most relevant) information.
Again, Jon was excited about the stock. But he was a professional. And he was willing to reexamine his ideas.
The interview ended with Jon saying, "I'm going to take a harder look, since Marc Chaikin doesn't like it."
That was Monday, August 6, 2012. On Wednesday, the day after Priceline's earnings, the Halftime Report did a highly unusual follow-up.
The host started by asking Jon, "Chaikin spooked you a little bit?"
"He did indeed. And I think... a lot of folks followed Mr. Chaikin. Those of us that picked up some cheap out-of-the-money puts... well, they worked out like a charm.
"Those puts went from like $1.80 last night to $15, $16," Jon continued. "Again, great call by Marc Chaikin. And thanks, Marc, for helping me out."
In short, the Power Gauge was right. Priceline missed earnings. And Jon listened to me, made a bet against the stock, and racked up big profits instead of taking major losses.
Now, one great call is just that – a single great call.
But it was only possible because I had the Power Gauge at my side.
The Power Gauge uses the best data available to help individual investors make consistently great calls. And my goal is to share that power with as many investors as I can.
Good investing,
Marc Chaikin
Market View
Major Indexes and Notable Sectors
# Hld: Bullish Neutral Bearish
Dow 30
+0.140%
12
16
2
S&P 500
+0.040%
161
288
48
Nasdaq
-0.050%
45
47
6
Small Caps
-0.400%
783
940
199
Bonds
-0.730%
— According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks remain Bullish. Major indexes are mixed.
* * * *
Sector Tracker
Sector movement over the last 5 days
Real Estate
+2.35%
Staples
+1.70%
Utilities
+1.60%
Health Care
+1.47%
Industrials
+1.37%
Financial
+1.23%
Materials
+0.94%
Communication
+0.69%
Information Technology
+0.66%
Discretionary
-0.49%
Energy
-0.83%
* * * *
Top Movers
Gainers
MTCH
+2.57%
AMD
+1.84%
WBD
+1.74%
BXP
+1.70%
MAA
+1.67%
Losers
TSLA
-3.16%
APA
-2.88%
HES
-2.58%
EOG
-2.37%
MPC
-2.00%
* * * *
Earnings Report
Reporting Today
Rating
Before Open
After Close
No earnings reporting today.
Earnings Surprises
No significant Earnings Surprises in the Russell 3000.
* * * *
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This work is based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors, and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.
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