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)

April 16, 2012

Market Strategies Guide To

Successful Trading

 

 

To subscribe to the Options Only Acct Trades simply TEXT the word UPDATES to 69302

and you will automatically be included.

 

To Read This Market Strategies Newsletter In Adobe PDF Version – CLICK HERE – http://www.princetonresearch.com/4-16-2012-Market-Strategies.pdf

 

$10,000 OPTIONS ONLY ACCT

 

New Trades for this week:

The $10,000 Options Only account had a Loss last week of $975 decreasing our gains for the year from $3,078 to $2,103.  

 

Three positions remain:

The S April 2.5 Calls,

AMZN May 195 Calls and

IBM May 200 Puts.

 

The Open positions are highlighted in the options table below. 

Approximately $ 2,955 funds are in use.
Last week’s commentary spelled out the issues and the market actions bore it out.  The bad jobs number started the market lower on Monday with Europe closed for the Easter Monday holiday.  What followed was your basic Spanish problems and we had our first 200 point decline for the year and a 6 day decline of almost 600 Dow points.  We got a good rally on Wednesday and Thursday back to almost 13000.  Unfortunately we ended the week on a VERY soft note.  We are still long AMZN and Sprint calls, but for balance, we are also short IBM.  I have support in the form of the 25 week moving average around 12,500.  If we hold there we will sell the IBM puts and find some other new long positions.  I am watching the ZSL (Silver) and some of the stocks that held up (PNRA) and some others.  Make sure to keep on top of the Text Updates this week….CAM

 

Remember, these trades are based on your participation in the

TEXT MESSAGE TRADE ALERTS SERVICE TO RECEIVE ALL UPDATES.

TEXT the word UPDATES to 69302 To Get In Now

 

Previous closed out trades not listed here may be seen in the March, February and January weekly newsletters. See past issues at http://www.princetonresearch.com/market-strategies-newsletter/

DATE	TRADE	PRICE	COST	PROCEEDS	RESULTS
4/13	Bought 2 AMZN May 195 Calls	6.60	1320
4/13	Bought 3 IBM May 200 Puts	3.50	1050
4/10	Sold 6 ARIA April 15 Calls	.55		330	330 Loss
4/9	Sold 5 KRO May 25 Calls	.55		275	250 Loss
4/9	Sold 5 April SPY 140 Calls	.76		395	395 Loss
4/4	Bought  5 April SPY 140 Calls	1.58	790
4/3	Bought 5 KRO May 25 Calls	1.05	525
3/21	Bought  6 ARIA April 15 Calls	1.10	660
3/16	Bought 15 S April 2.5 Calls	.39	585

New trades $ 10,000 account…In Texting we have a limited amount of words. In the interest of brevity: OPTIONS ONLY: 5 May, 6 June . 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 were stopped on LVLT and PDLI.
With Text Alerts we bought AAPL, AMZN and TXGE, sold DVR and covered the Short on RCII.

 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 April 9 and newsletters dating back to July 20, 2009.  Stay alert on the free texting service for new trades and exits.

 

Model Portfolio Comments/Changes:      

 

INDEX OPTION RECOMMENDATIONS

 

Buy 200 RWM @ mkt

 

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. The DZZ goes up double when gold goes down.

 

New Stock Option Recommendations

Option and overall Comments

We had a Gain last week of $199 in a down week. Our gain for the year was $7,731 and with last week’s Gain has increased to $7,930  We have Four long options positions remaining, the CSCO Jan 20 Calls, S April 2.5 Calls, AMZN May 195 Calls and IBM May 200 Puts. The Stock table includes thirteen long stock positions: AMZN, AAPL, TXGE, EXM, CWTR, IYT, AIVN, SNTS, CISG, LEI, LEOM, XBOR (a double).

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 $6,150 in the options positions and $ 61,000 in the 13 long stock positions for a total of $ 67,150 with $ 32,850 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 April 9 and newsletters dating back to July 20, 2009.                                                                                                    

 

This Weeks’ Economic Numbers

and Media Data

 

 

 

Economic Data

 

The February Trade Balance was a minus $ 46.0 bil down from $ 52.5 bil in January and well below the consensus of $ 53.0 bil expected. Imports fell sharply, down $ 6.2 bil to $ 227bil from $ 233.4 bil in January. Exports rose slightly by just $ 300K to $ 18.2bil.

Higher prices for crude oil and the resulting higher gasoline prices curtailed demand. Petroleum products fell    $ 1.3 bil. The Goods Deficit decreased $ 6 bil to $ 61.4bil while services sold increased by $ 0.5 bil to $ 15.4 bil. Consumer Goods sold increased by $ 0.3bln much of it in diamonds.

The lower trade deficit will add to the GDP and as a result a nice rally followed the number.  Prior to the number, the Initial Unemployment Claims were higher again, up 25K to 380K  bringing doubt for the ability of the recovery to add enough jobs.

 

All ten Dow Industrial indexes were lower led by Health Care off 2.86% followed by Oil and Gas – 2.84% and then Financials -2.4%. Technology fell 2.06% and both Industrials and Utilities1.85%. Telecommunications fell 1.29% and Consumer Goods -1.51%. Consumer Services lost 0.92%. Basic Materials were off the least at -0.61%.

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

 

Nasdaq had its biggest down-week of the year falling 2.25%. The Russell was worse losing 2.68% followed by the Dow off 1.61% and the Transports down 1.65%. Bonds had a great week up 3 full basis points and leaving the bears behind. It was a full scramble to safety as the markets probe for what will become the recovery bottom. The China GDP fell to 8.1% from 8.4% expected.

 

The market broke following positive comments from Janet Yellen, Fed vice-Chairwoman that rates could be held low through 2015 and that quantitative easing could occur if needed. The markets broke on good news with the exception of China.

 

Worries persisted over Europe and this time the spotlight was on Spain as their need to borrow from the EU surged to Eu228 bil in March from Eu152 bil in February.

 

The dollar was about flat last week but has remained above its 200 day m.a. and if it rallies from here will be  a strong head-wind for the markets.

 

Technical Information

 

      Support Levels:   S&P 500           1361; 1346                  Resistance S&P 500   1383; 1399

                                        DOW            12,740; 12,680            Resistance DOW      12,890; 13,040

                                        QQQ             6577; 6483                  Resistance QQQ         6673; 6755                     

                                       Nasdaq          2972; 2937                  Resistance Nasdaq      3045; 3092                                          

                 
                                CYCLES

 

           Cycles suggest equity weakness early in the week with a more stable tone at end of week.

Crude  and Dollar seasonal  suggest strength in those markets.  

 

 

                    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. Cross Border paid us 25,000 restricted shares several months ago. We do not currently represent Cross Border. Princeton has 2,225,000 shares of AIVN.

 

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 any 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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