Trade Alert: Navigating a Volatile Market

Today, the Stock Trader Alert system has kicked out a pair of new trades, with our Fastenal Company (Nasdaq: FAST) position getting stopped out early due to an unfortunate earnings reaction.

Despite meeting Wall Street’s earnings estimate, Fastenal’s shares declined sharply in the wake of the company’s quarterly report last week. It’s a testament to the markets’ volatile nature and the unease that stocks have rallied too far, too fast.

Those concerns are heightened by growing geopolitical unease, with Russian tensions now overshadowed by bombing runs in Afghanistan and increased saber rattling from North Korea.

As such, the Stock Trader Alert system continues to re-evaluate our 10 stock positions, which are currently trailing the S&P 500 by about 1% across the board since February. Furthermore, our portfolio hedge — the SPDR S&P 500 ETF (NYSE Arca: SPY) — remains in effect since our system is designed to shift out of this hedge only in the event of major market moves.

It’s at times like these that I most appreciate the Stock Trader Alert portfolio’s backtesting performance … which more than outperformed the market after the 2008 crisis.

It’s a situation I hope we don’t have to experience in real time … but I’m confident the portfolio will be up to the task if need be. (For more information on returns, see our backtesting data and the full portfolio history.)

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

Position Ticker Action
Automatic Data Processing ADP Buy
Fastenal Company FAST Sell
* Positions updated as of April 17, 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

Position Ticker
Automatic Data Processing ADP
Cintas Corporation CTAS
Genuine Parts Company GPC
Jack Henry & Associates JKHY
McDonald’s Corporation MCD
3M Company MMM
Ross Stores Inc. ROST
TJX Companies Inc. TJX
WEC Energy Group WEC
Wal-Mart Stores WMT
* Positions updated as of April 17, 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