Market Strategies

Covering High Return Balanced Investing Success Strategies For

Stocks ■ Bonds ■ Interest Rates ■ Natural Resources ■ Currencies ■ Venture Capital ■ Gold

 A Publication of Princeton Research, Inc. (www.PrincetonResearch.com)

 

January 23, 2012

Market Strategies Guide

To Successful Trading

 

To Read The Market Investing Strategies Newsletter PDF Version – CLICK HERE — http://www.princetonresearch.com/1-23-2012-Market-Strategies.pdf

  

To subscribe to the Options Only Acct Trades simply

TEXT the word UPDATES to 69302

and you will automatically be included.

 

$10,000 OPTIONS ONLY ACCT:

 

New Trades for this week:

 

BUY 10 ELX 2/8 CALLS @ $ .70  

BUY 5 HGSI 2/8 CALLS @ $1.15

BUY 10 CLNE 2/14 CALLS @ $ .60

BUY 4 KSU 2/75 CALLS @ $1.45

BUY 4 TZA 2/22 CALLS @ $1.40

 

The $10,000 Options Only account had gains last week of $586 last week, increasing our gains for the year to $3251.00. Two positions remain: the KRO February 22.5 Calls and CALM February 35 Calls. The Open positions are highlighted in the options table below.  Approximately $ 1840 funds are in use. 

 

The market has been acting better than expected and it feels to me like we are due for some pullback.  The BIG names, CSCO, MSFT, CRUS and others have had great moves up, but are all either getting overbought or are already there. I’m concentrating on charts that haven’t yet had extended moves for new longs and those that are approaching resistance for shorts. We continue to seek balance to avoid not participating in the trend as well as  making sure we are ready for setbacks…. The lack of a clear winner (or even leader) for the Republican race for nominee is taking a toll on those who feel that we need someone who can unseat the current administration and show a pro-business inclination……CAM

Remember, these trades are based on your participation in the TEXTING SERVICE TO RECEIVE ALL UPDATES. Previous closed out trades not listed here may be seen in the January 16 and 2011 weekly newsletters.

DATE	TRADE	PRICE	COST	PROCEEDS	RESULTS
1/20	Sold 8 ZSL February 14 Calls ( 50% rule)	.50		400	400 Loss
1/19	Sold 10 CSCO February 19 calls	1.18		1180	380 Gain
1/19	Bought 4 CALM February 35 Calls	2.40	960
1/19	Sold 3 January NFLX  100 Calls	2.59		777	336 Gain
1/19	Sold 15 BMY February 33 Puts	.55		825	270 Gain
1/17	Bought 8 ZSL February 14 Calls	1.00	800
1/17	Bought 8 KRO February 22.50 Calls	1.10	880
1/17	Bought 15 BMY February 33 Puts	.37	555
1/13	Bought 3 January NFLX  100 Calls	1.47	441
1/6	Bought 10 CSCO February 19 calls	.80	800

New trades $ 10,000 account…In Texting we have a limited amount of words. In the interest of brevity: OPTIONS ONLY: 2 February ; 3 March. The Quantity and Strike Price for each trade is specific.

For any questions please call 702 650 3000

 

Market Laboratory – Weekly Changes

Prices are copied from Barron’s Weekly and Yahoo Finance and may be incorrect

M1…all money in hands of the public, Time Deposits Traveler’s Checks, Demand Deposits

M2 adds Savings and Money market Accounts both compared with the previous year.

 

 

 

New Stock Recommendations

 

Last week we Bought DVR and we were stopped out of PVA.
With text alerts, we Bought CALM and Sold XOMA and WFR

 Each stock is allocated a theoretical $ 5,000 share of the portfolio unless otherwise indicated.

 

Note: Previous closed out stock and option positions can be found in the January 16 and newsletters dating back to July 20, 2009.  Some of the trades put are January Effect Trades. Stay alert on the free texting service for exits.

 

Model Portfolio Comments/Changes:

 

                                  INDEX OPTION RECOMMENDATIONS

BUY 8 TZA 2/22 CALLS @ $1.40
For those of you who do not buy puts to protect your portfolio, there are many ETF’s that are the inverse of the DOW. The symbols are DOG , SDS  and TZA,  whichgo up when the DOW , S&P 500 and Russell 2000 go down and down when they go up.

 

New Stock Option Recommendations

 

BUY 20 ELX 2/8 CALLS @ $ .70

BUY 12 HGSI 2/8 CALLS @ $1.15

BUY 20 CLNE 2/14 CALLS @ $ .60

BUY 8 KSU 2/75 CALLS @ $1.45

Option and overall Comments

 

We had a gain last week of $ 2636 in an up week. Our gain for the year was $ 5711 and with last week’s gain has increased to $ 8347.  We have two long options positions remaining, the KRO 22.5 Calls and the CSCO Jan13 20 Calls. The stock table includes eleven long stock positions: CALM, FCH, DVR, WG, AEZS, GMXR, LEI, KAJMY, LEOM, XBOR and SDS. The SDS is a double inverse SP500 ETF.

The options call for a $ 2,500 investment unless otherwise started, while each stock position requires $ 5,000 unless specifically stated.

We are basing money management on a hypothetical $ 100,000.00 and are using $2,500 in the options positions and $ 53,500 in the 11 long stock positions for a total of $ 56,000 with $ 44,000 in cash. These figures are approximate. We do not count commission costs and there may be errors.

Executions that have occurred at or near the open or close of trading sometimes vary from our actual numbers.  For example, when something opens down and it is through our price, we take the next trade whether it is an uptick or continues lower.  This sometimes results in a 50% trade that is slightly above or below the exact number…

 

Previous Week’s Recommendations and Rules for the $ 100,000 account

• Text UPDATES to 69302.
• All options count for about $ 2,500.00 for model portfolio calculations unless otherwise stated.
• When the option has doubled sell half the position.
• Stop Loss protection is either half or offered with each trade.
• The cost of the option is the asking price (or the price between the bid and ask, whichever is more realistic)
• The options will be followed until closed out.
• Option Symbols are stock symbol with expiration month and strike price
• Subscribers can follow us on Twitter or call  702 650 3000 for up to date information.

 

 

Note: Previous closed out stock and option positions can be found in the January 16 and newsletters dating back to July 20, 2009.                                                                                                       

                          

 

                               This Weeks’ Economic Numbers and Media Data

 

Economic Data

 

Initial Unemployment Claims for the week ended January 14th fell to 352,000, the lowest level since April, 2008. Continuing Claims declined to 3.432 mln. Remember, the week ended January 7^th when the initial claims were at 402,000, and Continuing Claims at 3.647 mln, there was still talk of a double dip.. The GDP will be out Friday and if close to projections, ( see above Table )  those thoughts might well be in the rear-view mirror. Both Industrial Production ( 0.4% )  and Cap Utilization ( 78.1% ) were about as expected. Consumer Inflation ( CPI ) was 0.0 while the Core was up just 0.1%. Net long term Tic flows for November improved to $ 59.8B from just $ 4.8B reported last month. ( TIC Flows measure investments in U.S. securities ) Empire Manufacturing was better at 13.5 up from 10.0 while the Phily Fed numbers were a little worse at 7.3 from 10.8 originally reported but revised down to 6.8.

The best number was Dec Existing Home Sales at 4.61 M units, up from 4.42M last month and besting the consensus of 4.55M indicating better times for the beleaguered housing sector.

 

Fundamentals ( previous letters may be seen at www.princetonresearch.com)

 

Earnings were quite volatile but mostly positive. IBM ( IBM: $ 187.46 ) + $ 6.91 or 3.8% was the best of all big caps.  Microsoft ( MSFT: $ 29.09 ) + 1.09 on the week, made its highest close since April 2010, surprised with both top and bottom line numbers impressive. Google ( GOOG: $ 588.68 ) disappointed off $ 40.96 or -6.5% on the week on terrible earnings and sales. Another poor showing came from Capital One Financial ( COF: $ 45.19 ) – $ 3.21or 6.6% on quarterly earnings of $ 0.88 when the street was looking for $ 1.55. GE, Citigroup and Union Pacific all had good news.

 

Overall, equities managed their third straight up-week led by Nasdaq, up 2.80% despite the poor showing by Google. All major  indices were higher as shown in the above table. Nine of the ten Dow industry Groups were higher led by technology, up 3.53%; Oil and Gas rose 2.80% and Consumer Services 2.32%; Both Financials and Industrials helped the uptrend by gaining another 2.2%. Basic Materials gained 1.72%; Health Care 1.15%; Telecomm 1.06% and Consumer Goods rounded out the winners at a plus 0.89%. Only Utilities lost off 0.5%.

 

In Global news China reported its fourth quarter GDP grew 8.9% from the prior year, a big surprise. The IMF wants to expand its lending capacity to meet a perceived global shortfall in the range of        $ 600 to $ 1 billion. The World Bank lowered its global growth forecast to 2.5% for 2012 and 3.1%    for 2013.

 

 

 

 

Technical Information

 

      Support Levels:   S&P 500          1304; 1274                    Resistance S&P 500   1334; 1346

                                        DOW           12,680; 12,530              Resistance DOW        12,890; 13,040

                                        QQQ            5945; 5855                    Resistance QQQ        6035; 6113                     

                                        Nasdaq        2758; 2716                    Resistance Nasdaq     2820; 2851

                                                 

                     CYCLES

 

The stock market has demonstrated a tendency to retreat after the first rally of the new year. The Dow has rallied 467 points going into Monday the day before the President’s State of the Union address.
Cycles indicate a peak early in the week , Monday / Tuesday  and weakness mid-week then a recovery in the latter part of  the week for stocks.

Once the New Year begins we often see a profit taking correction. It didn’t happen as the numbers were just too good. We are likely to see a reaction in oil prices as tensions ease in the Mideast. This could coincide with deflationary pressures in precious metals as well as they make a seasonal top toward the end of January/beginning of February.

 

 

Rule 17B requires disclosure of payment for investor relations*

 

Princeton Research has received about $ 2,500 per month from Lucas ( LEI ) marked with an asterisk.    Princeton has been paid for investor relations in the past and has negotiated a contract to be paid 100,000 restricted shares from Leo Motors. In addition Princeton has bought shares. Princeton is paid by Baron Energy ( BROE ) to do investor relations in the amount of 300,000 shares. Princeton has also bought separate shares about 327,600 and owns the shares for its own account. USPR paid us 200,000 restricted shares. Cross Border paid us 25,000 restricted shares and we bought and own another 25,000 purchased at higher prices.

 

Pursuant to the provisions of Rule 206 (4) of the Investment Advisers Act of 1940, readers should recognize that not all recommendations made in the future will be profitable or will equal the performance of any recommendations referred to in this Email issue. Princeton may buy or sell shares in companies it represents at ant time.

 

 

CONTACT

Please Direct All Inquiries To:

Mike King

Princeton Research

3887 Pacific Street, Las Vegas, Nevada 89121

Phone: (702) 650-3000

Fax: (702) 697-8944

mike@princetonresearch.com

Visit: www.princetonresearch.com

 

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