EVIDENCE BASED TRADING – Dr. James C Krider
December 9, 2016, momentum stock universe.
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.
All three portfolios are well ahead of the S&P 500 during the same timeframe. Performance numbers are for comparison purposes only. Actual trades taken are from the stocks in the open portfolio, but not all stocks are traded. Most trades are entered by writing puts for premium collection.
Once a stock is assigned from an option it is traded using the rules proved in the education archive.
To follow the actual and pending trades, subscribe to our premium service.
Disclosure: I am long in AAPL, ATVI, BBL, BGFV, BHI, BHP, C, CFG, CNX, CRUS, CSX, ETFC, FL, HPE, INTC, MRK, MS, MTZ, MU, NVDA, PTEN, PWR, STM, SXC, TECK, TMUS, and UAL. I hold option positions in AAPL. ATVI, AWK, CBS, CMCSA, CRUS, MU, NAV, and NVDA.
How do we use the Fear & Greed Index? It is purely a sentiment indicator and we do not trade based upon this index.
Here are the seven components of Fear & Greed:
- Stock Price Momentum: extreme greed.
- Stock Price Strength:
- Stock Price Breadth:
- Put and Call Options: extreme greed.
- Junk Bond Demand: extreme greed.
- Market Volatility:
- Safe Haven Demand: extreme greed.
NOTE: to reduce clutter I do not show the ROC or slope indicators, however, I do report them.
The 3-month chart shows a continued increasing slope relative to last week. The ROC has increased to 5.22. The MA20 slope increased to 13.57 degrees. The candles are still above the MA20.
The one-month chart shows a slightly lowered slope from last week. The ROC increased to 4.42. The MA20 slope is a perfect 45.56 degrees. The candles are above the MA20.
Technical analysis is bullish for the short (30-days) timeframe, bullish for the intermediate (60-days) timeframe, and bullish for the long term (120-days).
Overall: The market is improving on the short timeframe. We will play the market in a positive manner.
This Weeks Education – value averaging.
I posted this as an educational article. Please read it here.
NEXT WEEKS PLAN
We will continue to play this market long and sell several put options near the ATM level. Our open long positions will be held. No covered calls now, but we will of course watch our trailing stop levels and ratchet them up daily.
I will also initiate two new types of plays. 1) I will invest equal amounts into each of the 20 new stocks, 1/2 on Monday, 1/2 in one week. 2) I will be investing in the value stock and begin contributing monthly according the rules of value averaging.
For a current list of Group 1, 2, and 3 stocks, and follow the new investments, check our premium services. The premium service has all option, momentum, and VA trades.
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.