EXCLUSIVE: Buy The Dip — There’s A Lot More Upside To Come, Says Marc Chaikin

Stocks have experienced a shaky beginning in 2024, with initial losses followed by slight gains on Thursday. However, Marc Chaikin, founder and CEO of Chaikin Analytics, believes that this does not signify an end to the rally that began in late October.

During his appearance on Benzinga PreMarket Prep, Chaikin highlighted his perspective, especially for the 493 stocks in the S&P 500 that fall outside the realm of the so-called Magnificent Seven tech giants. He pointed out that this period could be particularly significant for these stocks, suggesting potential opportunities outside the tech sector.

Despite a small gain during Thursday morning, the broad market index remains 1.1% lower since 2024 trading began on Tuesday. The exchange traded fund that tracks the index, the SPDR S&P 500 ETF (NYSE:SPY) is down by the same amount.

Chaikin puts this in context by explaining that on Tuesday, when the S&P 500 fell by 1%, there were more stocks that gained than stocks that lost. Because of the huge weighting of the Mag7 — Amazon.com Inc (NASDAQ:AMZN), Meta Platforms Inc (NASDAQ:META), Nvidia Inc (NASDAQ:NVDA) et al — the market was lower.

“If you’ve taken profits, you’ve got to look for the opportunities to get back in to the market,” Chaikin said.

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Look At The McClellan Summation Index

Chaikin said that there’s more upward potential for the markets, anticipating that the S&P 500 will not only breach its all-time high but will also continue to climb further. He observes a technical analysis tool called the McClellan Summation Index which, on the S&P 500, has moved over 1,000.

“This index only gets over 1,000 at the beginning of bull markets — not in bear markets, and not at the end of anything. So that’s telling you there’s a lot more upside,” Chaikin said.

“It summarizes the mood of the market and the flow of funds into stocks,” he added. “In the S&P 500, the Summation index went to a level that’s only been seen one other time. And in this case, you can’t take a contrarian view to that.”

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