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)

To Read The Market Investing Strategies Newsletter PDF Version – CLICK HERE http://www.princetonresearch.com/2-27-2012-Market-Strategies.pdf

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

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$10,000 OPTIONS ONLY ACCT:

 

New Trades for this week:

New trades will be added via Updates…Remember to text UPDATES to 69302 to receive all new trades.

The $10,000 Options Only account had a Loss last week of $908, decreasing our gains for the year from $5,307 to $4,399.

 

Three positions remain:

The RVBD March 28 Puts,

MTOR March 8 Calls and

RCII March 35 Puts.

 

The Open positions are highlighted in the options table below. 

Approximately $ 1540 funds are in use.

 

This week was spent trying to capitalize on the overbought nature of the markets.  It didn’t work out as I expected, but that doesn’t necessarily mean that we aren’t overbought, only that the term is relative.  It was said by many that “the market can act irrationally longer than I can remain solvent.” 

We are having a very nice rotation from group to group, but I see the rally as getting more and more narrow in its scope.  Less new highs, lower volume, and lots of stocks that have taken any bad news as dramatic.  It seems to me that for the “surprises” the path of least resistance is the downside. 

Oil has had a run of $13 / barrel in the last 13 trading days. I’ve heard it said that “we can take it in stride since it’s not driving season yet.”  This is without question one of the most foolish and shortsighted quotes around.  It ranks right up there with “This time it’s different.”  It is not different and if you are unemployed, under-employed or have to use your car for work this has got to be one of the ways money disappears from your wallet the fastest.

In the current energy environment, it is of little doubt why the Transports have moved lower.  I would recommend that a “long transports..IYT..and short the Industrials” is a trade that maintains our balanced approach overall, while being long an oversold and short an overbought market.But since the Dow wants to work higher, I will wait to initiate the Long Transports /short Industrials until Dow tests résistance @ 13,250-350 or Transports test support @ 5,000…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 February, January and 2011 weekly newsletters. See past issues at http://www.princetonresearch.com/market-strategies-newsletter/

 

DATE	TRADE	PRICE	COST	PROCEEDS	RESULTS
2/24	Sold 4 WTW March 77.50 Puts	.60		240	240  Loss
2/22	Sold  8 ZSL March 10 Calls	.47		376	368  Loss
2/21	Sold 10 JEF  March 16 Calls	.30		300	300  Loss
2/21	Bought 5 RVBD March 28 PUTS	1.20	600
2/21	Bought  6 RCII March 35 Puts	.90	540
2/21	Bought 10 MTOR March 8  Calls	.40	400
2/21	Bought 4  WTW March 77.50 Puts	1.20	480
2/13	Bought 10 JEF  March 16 Calls	.60	600
2/9	Bought  8 ZSL March 10 Calls	.93	744

New trades $ 10,000 account…In Texting we have a limited amount of words. In the interest of brevity: OPTIONS ONLY: 3 March, 4 April . 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 XBOR and with text alerts we sold CALM and AOI.

 

 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 February 20 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

 

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 loss last week of $1,505 in an up week. Our gain for the year was $13,760 and with last week’s loss has decreased to $12,255.  We have four long options positions remaining, the CSCO Jan 20 Calls, MTOR March 8 Calls, RVBD March 28 Puts and the RCII March 35 Puts. The stock table includes twelve long stock positions: CISG, DZZ, ANX, ABR, PKRK, QUIK, DVR, AEZS, LEI, LEOM, XBOR and SDS. The SDS is a double inverse SP500 ETF,DZZ is a double inverse Gold 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 $3,500 in the
options positions and $ 58,000 in the 13 long stock positions for a total of $ 61,500 with $ 38,500 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 February 13 and newsletters dating back to July 20, 2009.                                                                                                       

                                                                     

                                This Weeks’ Economic Numbers and Media Data

 

 

Economic Data

It was a light week for economic reports and hardly noticed was Michigan Consumer Sentiment Survey which posted an improvement to 75.3 from the 73.0 consensus and just 72.5 last month. New Home Sales for January were lackluster as expected at 321,000 units, better than last month’s 315,000 units but a little off from a consensus which expected 324,000 units.

 

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

 

Nasdaq at 2963.75, made its highest close in 10 years 3 months since November 2010 confirming a ten year base for equities that appears to be a launching point at an appropriate time when almost everyone thinks the markets are too high. The markets are climbing a wall of worry. December 2010, the Nasdaq Composite closed at 3138.27 on a free fall down to its December close of 2728.51. Resistance will be formidable at the 3100 level but the power is in place to take out all the resistance as the whole world especially Asia continues to revere and buy American technology.

 

Technology was the second best performer ( + 0.79% ) of the ten Dow Industrial groups only behind Oil and Gas which was up 1.84%. Telecomm rose 0.51%; Basic Materials 0.4%; Industrials 0.35%; Utilities 0.315 and Consumer Goods 0.23%. there were three losing groups led by Financials, off 0.62% with Consumer Services down 0.51% and Health care 0.14%.

 

Technical Information

 

      Support Levels:   S&P 500          1361; 1346                  Resistance S&P 500   1377; 1383

                                        DOW           12,890 12,740              Resistance DOW        13,040; 13,100

                                        QQQ            6337; 6257                  Resistance QQQ        6430; 6509                     

                                       Nasdaq         2928; 2883                   Resistance Nasdaq     2990; 3036                                            

 

CYCLES

 

The market is a bit overbought, but will surge through 13,000 by February 29th, probably any weakness early in the week could lead us into some upside action by Wednesday.

 

The Stock Trader’s Almanac believes that a first half top will most likely occur in the March to May timeframe, but the much anticipated pullback of 2-4% may not occur and the market may push higher than we have forecasted before any significant decline takes hold.
As the market is nearing the DJIA 13,000-13,500 range it has become increasingly apparent that some contrary thinking may be in order. It may not be classic contrary analysis, but many traders, market professionals and people we know and talk to have been expecting a mild correction over the past several weeks.

 

             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 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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