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Today, the Stock Trader Alert system is off and running again with four new trades.
With retail stocks struggling this past week, it should come as little surprise that both Ross Stores Inc. (Nasdaq: ROST) and TJX Companies Inc. (NYSE: TJX) are leaving us. The system is replacing them with Ecolab Inc. (NYSE: ECL) and NewMarket Corporation (NYSE: NEU).
Markets stagnated last week, with the S&P 500 declining after three weeks of gains. Of particular interest is the fact that the CBOE Volatility Index (VIX) — aka, the “fear index” — hit its lowest reading since 1993. This would suggest an extreme in investor complacency, which we view as a contrary indicator.
As such, we will be keeping a close watch on our SPDR S&P 500 ETF (NYSE Arca: SPY) position, which comprises 50% of the portfolio and acts as a hedge against broader market moves. We still maintain our position in SPY, and we will certainly notify you as soon as anything changes. (For more information on returns, see our backtesting data and the full portfolio history.)
Finally, we’d like to thank you for participating in last week’s survey by providing feedback on your experience with the Stock Trader Alert system.
The survey is still open, so if you missed out last week, we’d appreciate it if you took a few minutes to answer just nine short questions so that we may better serve you. Remember, a crucial part of this beta test is your feedback.
Thank you again for your help. I’ve seen some great feedback and insights, and I truly appreciate all the time and thought you’re putting into our beta test.
The Stock Trader Alert Portfolio
If you’ve already established a position in the portfolio, here are your new trades:
Stock Trader Alert Trade Update |
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| Position | Ticker | Action |
| NewMarket Corporation | NEU | Buy |
| Ecolab Inc. | ECL | Buy |
| Ross Stores Inc. | ROST | Sell |
| TJX Companies Inc. | TJX | Sell |
| * Positions updated as of May 15, 2017 | ||
We continue to hold 50% of our portfolio in the SPDR S&P 500 ETF.
The remaining 50% of your portfolio should be divided evenly among the following 10 stocks:
Stock Trader Alert Portfolio |
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| 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 | |
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 overall system?
You can contact me at stocktrader@banyanhill.com. I appreciate every bit of feedback you send my way.
Kind regards,
Ted Bauman
Editor, Stock Trader Alert