Editor's note: The right information can mean a huge advantage...

As the market enters a new era of uncertainty, wise investors will look to the data to guide them. And according to Marc Chaikin, founder of our corporate affiliate Chaikin Analytics, that's where his "Power Gauge" tool comes in...

The Power Gauge is the culmination of Marc's 50 years on Wall Street – a system designed to give investors the best data available on thousands of different stocks. And in today's unpredictable environment, that data can mean the difference between catastrophic losses and massive gains.

In today's Masters Series – updated from the May 19 and 20, 2021 issues of our free DailyWealth e-letter – Marc details how he first learned about evidence-based investing in the '60s... reviews the advantages of the Power Gauge... and shares how he used it to save a famous trader from a bad call...

Using the Best Data Can Give You an Edge Like Nothing Else

By Marc Chaikin, founder, Chaikin Analytics

"You're not really going to only rely on the firm's research, are you?"

It was 1966. I had just landed a position as a broker. And at the time, I really did think my own firm's research would be plenty for me and my clients.

A member of the "old guard" had pulled me aside to tell me different. "Listen, you'll have to learn this on your own. But there's someone I think you should know about..."

It might sound like a random piece of advice. But it was actually a life-changing introduction... one that completely transformed my approach to helping investors.

Let me explain...

It started when my colleague introduced me to George Chestnutt's financial writing. I'm guessing you haven't heard of Chestnutt. But his work was pioneering at the time.

He used math to find the strongest industry groups... and the strongest stocks in those groups.

That made Chestnutt an outsider for sure. Back then, nearly everyone was looking at a smattering of fundamentals. Then, they'd assemble an interesting story around those few bullet points, and that was it.

The best storytellers turned out to be talented brokers. That is, they were talented at getting their clients to buy.

It was great for them... not so great for their clients.

The day of that conversation, I realized my mentor was right. I needed more than just stories.

My clients deserved better. Not only that, but to really be able to sell, I knew I'd need to have data to back up my claims.

So I did the most reasonable thing... I signed up for Chestnutt's newsletter service.

Chestnutt's work was my way of accessing the best data available at the time. And I knew that I wanted the best data available on my side.

Here's the thing, though. To get the best data, you have to go the extra mile...

Chestnutt was a bit "out there" compared to most analysts at the time. The guy spent his time meticulously tracking the major industries trading on Wall Street. He did a lot of it by hand. And he did the rest with early calculators.

Those of us who were around back then know what a monumental task this was. You'd have to be a little crazy to even pursue it.

I didn't realize where I was headed back in the '60s... not at first. But once I looked outside my own firm, I started to follow Chestnutt's path. My life's work became collecting data, parsing it, and using it to make evidence-based investing decisions.

I've been very fortunate and successful at it.

Bloomberg built my systems into its world-famous trading terminals. And its main competitor, Thomson Reuters, did too.

I made finding the best data my life's goal... and just as important, performing the best analysis on it.

I've found it deeply rewarding. And I'm passionate about sharing it. That's because the best data gives you an edge as an investor that nothing else can.

I saw firsthand exactly how important this was after the financial crisis in 2008...

I saw the little guy get creamed by Wall Street. So my focus shifted yet again. I developed a set of tools for individual investors. They're specifically designed to turn trading and investing into a fair fight for those who aren't Wall Street elites.

Together, this set of tools is called the "Power Gauge." And I've poured everything I've learned over my more than 50 years in finance into it.

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.

On the panel next to me was Jon Najarian...

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.

He 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). It 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...

The Power Gauge combines more than 56 years 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 simply typed in the ticker and got my report.

Instantly, I was able to see 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 Armour Residential (ARR). 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 Armour Residential is in a risky spot for investors right now.

That was the kind of setup I saw when I told Jon Najarian – one of the most famous traders in finance at the time – 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 that means 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 it, made a bearish bet, 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

Editor's note: The Power Gauge allowed Marc to accurately predict the most devastating stock crashes in 2020, at the height of the COVID-19 pandemic. Now, he's issuing what he says is the biggest warning of his more than 50-year career...

In short, Marc has identified a strange financial event that could lead to a wave of stock crashes – leading to huge losses for unprepared investors. On Wednesday, March 30, at 8 p.m. Eastern time, he's going on-camera to explain exactly what's happening... and to detail his "battle plan" for the next 90 days.

He'll also give away the name and ticker symbol of what he's calling the "No. 1 worst stock you could possibly own right now"... and the stock you should buy instead. Click here to learn more.