EVIDENCE BASED TRADING – Dr. James C Krider
April 28, 2017, momentum stock universe.
Dr. Krider’s managed portfolio YTD performance is 16.15% compared to the S&P 500’s 7.16%. 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, CHTR, ETN, FG, GLW, JD, LRCX MO, OLN, ORN, SPY, TMUS, V and WDC. I hold option positions In AAPL, AVGO, CBC, CC, CCL, CHTR, DIS, DOW, EBAY, ETN, MU, NVDA, PCLN, RACE, TMUS, TXN, UNH, and WDC.
Three-month chart: We at the middle of the regression channel which continues to flatten. Neither the rate of change or RSquared is significant for momentum, however, the MA60 slope is increasing and shows upward momentum and the trend is UP
One-month chart: RSquared and ROC are not significant for momentum. Again, the MA20 is increasing and shows momentum.
Technical analysis is neutral for short- and intermediate-term and remains bullish for the long-term timeframe.
Overall: The market is flat. We will play the market neutral.
NEXT WEEKS PLAN
At this time, I do not plan to do anything different. I will continue to add to my purchased “calls” in momentum stocks when/if they pull back allowing me to average down. All excess cash will be used to sell puts going one to two weeks out.
The premium service has all my option trades that you can follow in real time.
James Krider, MD
Dr. James C Krider is a practicing family physician in Apple Valley, CA.