EVIDENCE BASED TRADING – Dr. James C Krider
May 5, 2017, momentum stock universe.
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.
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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.
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.
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.
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.
James Krider, MD
Dr. James C Krider is a practicing family physician in Apple Valley, CA.