EVIDENCE BASED TRADING – Dr. James C Krider
May 12, 2017
While the S&P 500 slipped slightly from 7.86% last Friday to 7.58% on the 12th, Dr. Krider’s managed portfolio YTD performance increased from 16.51% 18.79. These validated performance results are calculated and reported by Interactive Brokers using Dr. Krider’s own personal trading account.
Dr. James Krider creates a monthly stock lists consisting of quality momentum stocks with associated weekly options. A stop loss and maximum position size is calculated for each stock. ALL trades are entered and managed with options. For stocks we want 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. For a more detailed explanation of how the options are managed read the newly formatted May portfolio. It is completely free and updated weekly.
To follow all actual and pending trades, subscribe to our premium service. If you would like Dr. Krider to manage your account simultaneously with his own call 760-242-1234.
Disclosure: I am long in AMAT, ANTM, ARCC, AVGO, BX, ETN, FB, GLW, HPQ, JD, LRCX, ORN, SPY, TMUS, V and WDC. I hold option positions in AAPL, AMAT, AVGO, BABA, CC, CCL, CHTR, DIS, DOW, EBAY, ETN, FB, HPQ, JD, MU, RACE, SODA, SWKS, TMUS, TXN, UNH, YAHOO.
Three-month chart: The 3-month chart continues to flatten. The current regression channel, blue, is essentially the same as last weeks, red. The rate-of-change (ROC) is now down to 1.73% (momentum = 9%) and the RSquared is not significant at 0.05.
One-month chart: The current regression channel is higher than last week’s channel. The RSquared is still increasing at 0.746 (statistical significance is 0.08) while ROC has increased to 2.78% (momentum = 3%). Moving average slope is 44.38.
Technical analysis is neutral for short- and intermediate-terms, bullish long-term.
Overall: The market is flat but it is technically in an uptrend with higher highs and higher lows. The one-month shows an increasing regression channel, but the market has been flat since April 24th closing within 0.5 points on Friday.
I will continue to play the market as flat which is GREAT for selling PUTS. I have several written CALLS which I will trail with a relatively tight stop.
NEXT WEEKS PLAN
I do not plan on doing anything different next week. I will continue to sell new puts one to two weeks out. I may purchase some more CALLS in July or August expiration.
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.
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.