About Us

Founded 1.12.00, at the peak of the Internet Bubble

About Us

Tip to get started:

After reading this prelude, skip to the bottom-timeline and listen to the short BNN video from June 17, 2011. That video sums up what we do quite nicely. After you do that, then take a trial or register for Platinum.

Stock Traders Daily has been offering proactive trading strategies to our clients through the internet since January 12, 2000, arguably longer than any of our peers. We have withstood the Internet Debacle, the Great Recession, and we are prepared for what lies ahead too. We have watched firms come and go, investors too, but when they fell it was always for the same reason, and we have developed our business in such a way as to avoid that mistake.

At some point those that we saw fail stopped adhering to risk controls, and material losses followed.  That told us that if we maintain control of our risk at all times, we’d be less likely to encounter the same problems as those that we saw fail.

Risk control started partly as a business decision, but it has evolved into our Mantra. Stock Traders Daily has developed strategies that can work in both up and down markets, macroeconomic analysis that measures the rate of change in the amount of new money available to be invested into the economy every year so we can assess asset demand into the future, and other tools that help investors navigate markets, but none of that mattered during stimulus.

Our risk controlled strategies and models worked during stimulus, as they should, but because there was a deflated interest in risk control at the time, our stuff was unpopular. In the good times the average investor forgets about risk controls, but they never should. Eventually the market is going to encounter problems, and we should be in strategies that can automatically adapt.

“It is what you do when you are wrong that defines you.” Thomas H. Kee Jr.

This is the approach taken by Stock Traders Daily from its inception, through the Internet Debacle, Credit Crisis, Corona Crash, and the up-periods in between, including stimulus. Below are some fun facts about the evolution of Stock Traders Daily:

Our Research can now be found on these institutional venues:

  • Reuters
  • Factset
  • Bloomberg
  • Refinitiv
  • Zacks
  • IB

Our Biggest Readers are:

  • Blackrock
  • Citadel
  • Two Sigma
  • Invictus
  • Renaissance Tech

How we got started

2000-2002

Stock Traders Daily was founded 1.12.00.  It had to manage risk at the peak of the Internet Bubble; that was required to survive back then.  The Trading results were approximately +250% in 2000, and about 150% in 2001 and 2002. Note (SEC Reviewed these with no contest).

2002 - Bottom Identified.

In 2002 the Investment Rate (IR) Model helped identify a maor market bottom within 5 SPX points.  The bottom was in October, but the call was made months before that, so everyone had plenty of time to prepare in advance.

2002 - The IR told us the peak would be 2007

IN 2002 the Investment Rate Model defined Dec 2007 as the next peak in the market, based on The Natural Lqiuidity Levels offered by the IR

Bottle of Dom on the CEO's Desk - MarketWatch

Thomas H. Kee Jr. put a bottle of Dom on the desk of the CEO of MarketWatch in late 2007, told him the market was going to crash, and agreed to come back and drink it after the crash happened. In 2008 the market crashed. That jump started our relationship with MarketWatch, and we have been close ever since.

The Most accurate leading stock market and economic indicator.

The Investment Rate was the most accurate leading longer term stock market and economic indicator in history at that time; it was the sole determinate of new asset demand prior to stimulus. The Investment Rate had accurately pinpointed longer term peaks and valleys in the market by analyzing liquidity, and it pinpointed this one 5 years in advance.

Our Evitar Corte Model supported the IR in 2007 too.

The Evitar Corte Model, which uses the FOMC to determine when market crash risks are high, was also supporting the findings of the Investment Rate.  That was meaningful.  

Stock Traders Daily began developing additional strategies.

Strategy Highlights

Evitar Corte

+647% vs 161% for SP 500 since Jan 2000, by avoiding market crashes.

CORE Portfolio Strategy

Protected from corona crash, is 17% better than S&P 500 YTD (as of Dec 2022). It is a slow but steady strategy designed for lower volatility while still getting decent returns. In CASH often, and that helps investors sleep well at night.

Strategic Plan Strategy

This Strategy’s average monthly return is 1.35% per month. It trades in clusters, around long term pivots.

Stock of the Week strategy

+424% since December 2007, vs 155% for SPX. This strategy selects one stock per week, and has integrated risk controls.

Additional Fun Facts

Our Fibonacci Calculator

may have had the best trading call in history? The market surged minutes after our video was published, it turned out to be the biggest 1-day reversal in the history of the DJIA, and our Fibonacci Calculator identified the turning point in advance. On a similar note, our Fibonacci Calculator captured 800 pts from SPX over 1.5 months while the SPX floundered. Videos are available for subscribers.

Trend Tracker

Automated Trading: Trend Tracker automates our Day Trading and Lock and Walk strategies. It requires windows and connects to Interactive Brokers.

Institutional Research

Institutional Research provided to Reuters, Factset, Bloomberg, Refinitiv, Zachs, and Interactive Brokers.

62,000 RIAs

62,000 RIAs and Family offices read us every quarter.

Biggest Readers

Biggest Readers are Blackrock, Citadel, Two Sigma, Invictus, Renaissance Tech. These are some of the biggest players on the street.

About $2.8 billion

About $2.8 billion follows Stock Traders Daily directly. This is a rough estimate because we do not know all of our clients well enough to identify exact AUM.

Our Global Liquidity Report

Our Global Liquidity Report for 2022 identified all the volatility in 2022 in advance. It was published in Dec 2021. The 2023 version is available as of Dec. 2022.

Timeline

  • 1999

    Thomas H. Kee Jr. (THK) was a broker for Morgan Stanley in 1999. He was actively buying and shorting Internet stocks, and charging clients hundreds of dollars for every trade. Online Trading had just started, and the fees that he was charging for trading seemed outrageous in comparison. Those high commission rates also impeded some options for managing risk. That was the first sign that something needed to change.

    The second reason was the unwritten law. The unwritten law at big brokerage firms is, you cannot short anything the firm has a strong buy rating on. At the end of 1999, Morgan Stanley, and almost all other big brokerage firms, had strong buy ratings on almost every Internet Stock. In hindsight, we all know that was a mistake, but THK didn’t abide by that unwritten law. As 1999 neared an end, THK began shorting them more and more. Eventually, that came to a head, and THK left Morgan Stanley.

    On January 2, 2000, THK began Stock Traders Daily. Our history since then is outlined below.

    • 2000 +250%*

    • 2001 +150%*

    • 2002 +150%*

    *These rounded results were reviewed by the SEC without contest. They were generated from proactive trading recommendations and correlated strategies, not unlike the ones we use today.

  • February 2002 - Will an improving Economy be Enough?

    In February 2002 the Investment Rate was developed. This identified the rate of change in the amount of natural new asset demand in the United States, and that prompted a report called “Will an Improving Economy be Enough?”

    In correlation, Stock Traders Daily identified what it believed would be the bottom in the S&P 500, and suggested that subscribers engage a Buy and Hold Strategy when support was tested. This was the first official issuance of The Investment Rate as a timing tool, and it was telling us to look for the bottom, because a sharp turn higher could follow.

    In 2002 the Investment Rate told us that the Market would head higher for a while, after support was tested, and our technicals were used to identify support. Using our prowess from active strategies, we identified support in the S&P 500 within 3.5 points in February 2002. The interesting thing is that support was not tested until many months afterwards.

  • October 2002 - Buy and Hold Strategies + The Upcoming Sell Signals

    The Market came within 3.5 points of stated support in October 2002 and turned higher. A Buy and Hold phase had begun, and it had an upside target. Our upside target was based on timing provided by The Investment Rate. In 2002, it told us that Dec. 2007 would be the peak in the Market. It was.

  • September 2006 - A warning was issued.

    In a report titled "Top of the Market to you!" subscribers were warned that 2007 would be the peak in the Market. They were advised to begin to consider liquidating longer term investments. That included Real Estate. This was an advanced warning, so everyone could get ahead of the curve.

    Read the Press Release

  • 2007 CNBC Interview - "This is the Top" - Dow 13,760

Proactive Trading Strategies Ruled.

  • Seeking Alpha - BAC buys Countrywide - The Worst Decision of 2008

    Dow 11842. Go to cash - sell stocks, real estate, and businesses

  • Short oil and wait for the buying opportunity in the Market. 6.20.08

    Enlarge the graph and listen to the interview.
    OIH

The Investment Rate and the risk of a Greater Depression

About Us Performance