EVIDENCE BASED TRADING – Dr. James C Krider
March 17, 2017, momentum stock universe.
Dr. Krider’s managed portfolio YTD performance is 10.65% compared to the S&P 500 6.72%. This includes option trades. Dr. Krider’s 30-day trailing performance, including option trades, relative to the S&P 500 is 4.46% to 1.33%.
The dip from February dip has been completely erased and the managed portfolio is doing quite nicely. As explained in previously newsletters, the temporary underperformance represented the downgrade of NVIDIA and we weathered the storm. We added to the position by selling puts and further made money selling covered calls. The NVIDIA stock was called on Friday from the covered call leaving our performance well above the S&P 500. Also, the March portfolio once more reflects a pure momentum selection and is outperforming the S&P 500 2:1. Not bad.
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.
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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, MBT, MO, OLN, ORN, PWR, S, SPY, ST, STX, TMUS, TWTR, TXN, V, WB, WDC, and X. I hold option positions in ACAD, AMAT, COH,MU, NVDA, STMP, TWTR, and WB.
Three-month chart: We still have a major support level at $228 and minor support at $236. RSquared remains tight at 0.88 and the regression channel is increasing with the SPY near the bottom of the channel. The moving average slope is drifting down and is currently 23 degrees. Minor support is being tested once more.
One-month chart: shows a continued weakening at RSquared and insignificant at 0.224. The MA20 slope is also continuing down and is currently 25 degrees. The MA20 was broken on Friday, 3/17.
Technical analysis is neutral for the short-term (30-days) and remains bullish for intermediate- and long-term timeframes.
Overall: The market remains bullish long term. However, we appear to be consolidating and moving sideways. We broke the MA20 and will look to Monday for confirmation or rejection. We are also at the bottom of 30-day regression channel and testing minor support.
NEXT WEEKS PLAN
I am currently 60% 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 cautious on Monday to determine which way the market wants to move. I will be placing some covered calls only if the market is down.
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.