Trade Alert: 12 Trades and a Twist – Correction

Today, I have your first set of trades for the new year — and a slight adjustment to our system to make it more user-friendly.
In case you missed last week’s update due to the holidays, I’m happy to report that the Stock Trader Alert system handily bested the S&P 500 in 2016, gaining 18.37% compared to the S&P 500’s 10.76% gain.

In order to maintain that outperformance and make Stock Trader Alert a bit more trading-fee friendly going forward, we’re implementing a minor change in the system.

You may have noticed that the Stock Trader Alert system often moves in and out of the same stock from week to week. We’ve realized that this may cause some trading confusion in regard to the model. To remedy the situation, we’ve implemented a “time-out” rule for high-frequency stocks — with no impact to the portfolio’s performance, according to backtesting data.

I hope this makes things a bit easier for you to follow while trading. But be sure to let me know what you think by sending me a quick email to

The Stock Trader Alert Portfolio

For today’s recommendations, our system has triggered 12 new trades: six buys and six sells for those who have established a position in the portfolio. Please remember that to fully participate in this portfolio, you need to purchase all 16 positions.

With this Stock Trader Alert system, we designate half the portfolio to our stock positions (no more than 15 stocks at a time) and the other half to one exchange-traded fund (ETF).

If you’ve already established a position in the portfolio, here are your new trades:

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

With the remaining 50% of your portfolio, we are currently holding these stocks at the following allocations:

After you make today’s new trades, please take a moment to send me an email letting me know how the trading process went. Were the directions easy to follow? Do you have any questions about the system?

You can contact me at I appreciate every bit of feedback you send my way.

Kind regards,

Ted Bauman
Editor, Stock Trader Alert