Sticking With the Program

After a flurry of activity during the past couple of weeks, the Stock Trader Alert system is holding its ground today amid the current market volatility.

So, let’s take a breather this week.

This pause gives me an opportunity to address a couple points. First, next week’s update will be delayed until Tuesday due to the Memorial Day holiday. I hope you all enjoy the break and get a chance to relax.

Second, I’ve noted some concerns in regard to the recent market turmoil.

While it may sound a little crazy at first, the Stock Trader Alert system was designed to remove you from the investment process. When you think about this staple of the portfolio, it makes sense.

It’s a scientifically proven fact that you’re better off implementing an investing system rather than letting your head — and your emotions, the No. 1 factor leading to underperformance — get involved.

By sticking with the Stock Trader Alert system, all investment decisions are made via pre-established rubrics that clearly define the what, when and why for buying and selling an investment.

It’s process-driven versus product-driven. Individual investments are less important than the method used to determine the right ones at the right time.

Here’s the critical point: If you want to eliminate as much risk as possible, you must implement the trades as the model dictates. Otherwise your results can — and will — vary.

Speaking of results, your Stock Trader Alert portfolio is currently sitting on a gain of more than 27%, with an average return of roughly 2.7% per position. With the S&P 500 Index up slightly more than 6% year to date, the value of the service should be readily apparent.

Honestly, it’s human nature to want to second-guess a trading model. We always think we’ve got great insights. And sometimes we do. But statistically … scientifically … speaking, the model always wins.

That’s something to keep firmly in mind at a time like now … when markets are in turmoil.

The Stock Trader Alert Portfolio

We continue to hold 50% of our portfolio in the SPDR S&P 500 ETF (NYSE Arca: SPY).

The remaining 50% of your portfolio should be divided evenly among the following 10 stocks:

Stock Trader Alert Portfolio

Position Ticker
Automatic Data Processing ADP
Clorox Co. CLX
CVS Health Corp CVS
Ecolab Inc. ECL
Genuine Parts Company GPC
Jack Henry & Associates JKHY
McDonald’s Corporation MCD
3M Company MMM
NewMarket Corporation NEU
Wal-Mart Stores WMT
* Positions updated as of May 15, 2017

Last, but certainly not least, if you have any questions about the ETF position, or any other part of the Stock Trader Alert system, please drop me a line at

I appreciate every bit of feedback you send my way.

As you know, we’re still in the beta-test stage, so we’re constantly looking at ways to improve this service in any way we can before releasing it in full.

Your comments are an integral part of that evolution. So a big thank-you to those who continue to write in with your thoughts.

Kind regards,

Ted Bauman
Editor, Stock Trader Alert