EVIDENCE BASED TRADING – Dr. James C Krider
March 10, 2017, momentum stock universe.
Dr. Krider’s managed portfolio YTD performance is 5.58% compared to the S&P 500 6.42%. This includes option trades. The dip from February represents the downgrade of some option stocks with the stocks being assigned. These are temporary dips as we now place covered calls on those stocks and will average down over time.
Another important point to point reflects the momentum universe philosophy. The Dec to Feb portfolios were more defensive and represents value stocks more than momentum. That was in part due to the Trump presidency and widely anticipated market decline. This did not pan out and the March portfolio now is momentum again and is handily outperforming the market.
Dr. James Krider creates a new stock portfolio monthly consisting of quality momentum stocks. Most portfolios contain 20 stocks and are active for three months. The portfolio is managed per the guidelines provided in the educational section To view the currently active portfolios, go to Dr. Krider’s momentum stock universe. It is completely free and updated weekly.
To follow the actual and pending trades, subscribe to our premium service.
Dr. Krider’s managed portfolio includes option trades.
Disclosure: I am long in AAPL, ABX, AMAT, ANTM, ARCC, AVGO, BAC, BX, CI, CIEN, DD, DIS, DOW, FB, GLW, HCA, JPM, LRCX, LUV, MBT, MO, NVDA, OLN, ORN, PWR, S, SPY, ST, STX, TMUS, TSRO, TWTR, TXN, V, WB, WDC, and X. I hold option positions in AVGO, BAC, DAL, HCA, MBLY, NUE, NVDA, OLN, ORN, PHM, SPLK, STMP, and TWTR.
Three-month chart: We still have a major support level at $228 and a minor support has developed at $236. The RSquared is significant at 0.804 and the regression channel is increasing with the SPY at the top of the channel. The moving average slope is steady, but declining at 24-degrees. Minor support has been tested.
One-month chart: shows a weakening RSquared now at an insignificant 0.622. The MA20 slope is weaking but still steady at 40 degrees. The MA20 has been touched, but not broken. The ROC of 3.07 still qualifies as momentum.
Technical analysis is bullish for all three timeframes.
Overall: The market remains bullish. There was a pullback and it tested minor support and the MA20. If it retests and breaks thru we will remain neutral and watch the major support at 228.
NEXT WEEKS PLAN
I am currently 69% invested in stock. This represents momentum stocks and stocks assigned to me from option trades. Currently I have 10 stocks outside of the momentum group. I will be placing covered calls on all of them with the exception of apple which I intend to hold long-term.
I entered the momentum stocks with just a ½ position and will wait couple weeks to enter the second ½. Those stocks that remain positive will be entered again. Those stocks on the decline will be avoided.
The premium service has all my option and momentum trades that you can follow in real time.
To view the complete list of current momentum stocks, go to the momentum universe page. This is a free service.
James Krider, MD
Dr. James C Krider is a practicing family physician in Apple Valley, CA. Dr. Krider is a licensed insurance agent in the states of California (0I65488) and Nevada specializing in Medicare Advantage and Life insurance, an important aspect of wealth planning.
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.