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May 5 newsletter

EVIDENCE BASED TRADING – Dr. James C Krider

May 5, 2017, momentum stock universe.

5-5-17 Dr Krider Performance

Dr. Krider’s managed portfolio YTD performance is 16.51% compared to the S&P 500’s 7.86%. These results are calculated and reported by Interactive Brokers using Dr. Krider’s own account.

Dr. James Krider creates monthly stock lists consisting of quality momentum stocks with associated weekly options. For each stock a stop loss and maximum position size is calculated. Stocks are entered and managed with options. For stocks we wish to own or control we purchase a call at or near the stop loss with an expiration of 3 months. Our excess cash is put to work selling PUTs for income on a one to two-week basis with a minimum annualized gain of 20%. To view the current portfolios, go to Dr. Krider’s momentum stock universe. It is completely free and updated weekly.

To follow all actual and pending trades, subscribe to our premium service.

Disclosure: I am long in AMAT, ANTM, ARCC, AVGO, BX, CEIN, ETN, FB, GLW, HPQ, JD, LRCX, ORN, SPY, TMUS, V and WDC.  I hold option positions In AAPL, AMAT, CC, CHTR, CIEN, DIS, DOW, ETN, FB, HPQ, JD, MU, NFLX, RACE, SODA, TMUS, TXN, UNH and WDC.

MARKET REVIEW        

Three-month chart: The 3-month chart continues to flatten. The current regression channel, blue, is lower than last week, red. The rate-of-change (ROC) is 4.5% (momentum = 9%) and the RSquared is not significant at 0.083.

5-5-17 3-month

One-month chart:  The current regression channel is higher than last weeks channel. The RSquared is increasing and currently is 0.708 (statistical significance is 0.08) while ROC is 1.81% (momentum = 3%). Moving average slope is 35.91.

5-5-17 1-month

Technical analysis is neutral for short-term and bullish for intermediate- and long-term.

Overall: The market is flat and near its highs. There is resistance at 240 (not shown on the chart) and we have a triple top. If we break above 240 the market could march much higher or it may fail falling back to resistance. We will play the market cautiously neutral.

NEXT WEEKS PLAN

I do not plan on doing anything different next week. I have several written calls in June and July and sold puts on May 12. I will reinvest my expired May 5 puts to sell new puts one to two weeks out.

The premium service has all my option trades that you can follow in real time. Dr. Krider is also available to manage your portfolio, call 760-242-1234 for more information.

Happy trading,Dr. James Krider MD

 

 

 

 

James Krider, MD

Dr. James C Krider is a practicing family physician in Apple Valley, CA.

Dr. James C Krider is an Investment Advisor Representative licensed in the state of Nevada and is President of Krider Wealth Management, an Investment Advisory corporation based in Nevada.

These comments were prepared by James Krider, MD, an investment advisor representative of Krider Wealth Management, LLC, a Nevada state registered investment advisor. The information herein was obtained from various sources believed to be reliable; however, we do not guarantee its accuracy or completeness. The information in this report is given as of the date indicated. We assume no obligation to update this information, or advise on further developments relating to securities discussed in this report. Opinions expressed are subject to change without notice. Opinions of individual representatives may not be those of the Firm. Additional information is available upon request. The information contained in this document is prepared for general circulation and is circulated for general information only. It does not address specific investment objectives, or the financial situation and the particular needs of any recipient. Investors should not attempt to make investment decisions solely based on the information contained in this communication as it does not offer enough information to make such decisions and may not be suitable for your personal financial circumstances. You should consult with your financial professional prior to making such decisions. PAST PERFORMANCE SHOULD NOT BE CONSIDERED INDICATIVE OF FUTURE PERFORMANCE. ANY INVESTMENT CONTAINS RISK INCLUDING THE RISK OF TOTAL LOSS. This document does not constitute an offer, or an invitation to make an offer, to buy or sell any securities discussed herein.


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