Where To Invest Now March 2014 Market Strategies

Options Trading Newsletter

March 3, 2014

Where To Invest Now

Market Strategies Newsletter

Where To Invest Now March 2014 Market Strategies

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Options Trading Investing Strategies

Covering High Return Balanced Investing Strategies To

Make Money In Up Or Down Markets

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

Contributing Staff: Michael King, Charles Moskowitz

 

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Where To Invest Now Market Strategies

$10,000 Trading Account

Traders Comments

There are two open positions:

AA March 12 Calls

GRPN March 11 Calls

Funds in Use $ 854

 

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In 2013 YTD gains were $28,479

Over 284% Returns

A $10,000 Portfolio would be

worth $38,479

The last 3 years our gains have gotten progressively greater year over year.

 284% Returns for $28,400 Profits In 2013

171% Returns for $17,100 Profits In 2012

77% Returns for $7,700 Profits In 2011 (only 33 weeks)

 

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We had a small profit this week of $48

bringing our YTD performance back to a loss of $1,531

There is certainly no lack of worry in the markets. Russia / Ukraine is certainly in the forefront of the international press.  This can turn the market (as was seen on Friday) when we saw a sell off of $20 in the S&P 500 (1,865 to 1,847) in 35 minutes before a bounce back to $1,860.

This demonstrates the “priced to perfection” attitude for the market.  It doesn’t take much to turn it on a dime.  This is especially true of the momentum stocks.  Last week GRPN beat but gave poor guidance and the stock got pounded.  This week we saw several of these with DECK in the same situation gapping from $84.70 to $70.68 … Very unforgiving to any negative news.

Due to the volatility of the markets all new trades will be texted.  I am looking at the support in the metals a bit lower to initiate longs in the GLD as well as SLV and its leveraged ETF, the AGQ for call positions.

 

Where To Invest Now

Market Strategies

$10,000 Trading Account

Trade Table

DATE

TRADES

PRICE

COST

PROCEEDS

RESULTS

02/28

This Information

Is For Members Only

For Free Trade Alerts

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    0.31

310

02/28

    0.72

432

$ 426 Loss

02/28

    1.23

738

$ 234 Gain

02/27

    0.84

504

02/26

    0.80

400

$ 225 Gain

02/26

    0.84

336

$ 160 Loss

02/25

    1.43

858

02/24

     0.70

350

$ 175 Gain

02/20

   1.24

496

02/18

      0.35

350

02/18

0.68

544

Remember, these trades are based on your participation in the

Subscriber Members Only

TEXTING SERVICE TO RECEIVE ALL UPDATES.

 Previous closed out trades not listed here may be seen in previous market letters in the Subscribers Members Area.

 

Options Trading Strategies Notes: In Texting we have a limited amount of words. In the interest of brevity: we use 8=August , 9=September . The Quantity and Strike Price for each trade is specific.

We may trade weekly options and they are noted: SPY 1/25 147 for SPY Jan 25th 147 calls or puts.

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Market Laboratory

Weekly Changes For Market Indicators

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

Dow

16,321.71

+218.41

 +1.36%

Nasdaq

4308.12

+44.71

 +1.05%

S&P 500

1859.45

+23.20

 +1.26%

Transportation

7348.37

+39.77

+0.54%

Russell 2000

1183.03

+18.40

       +1.58%

Nasdaq 100

3696.10

+33.49

+0.91%

Gold (spot)

1321.40

-2.50

          -0.2%

Silver (Dec )

  2124.1

-57.4

  -2.6%

Crude

  102.59

 +0.39

  +0.4%

Heating Oil

301.63

-2.26

  -0.7%

Unleaded Gas

  2.9774

-0.0256

-0.9%

Natural Gas

  4.609

-0.403

-8.2%

VIX

 14.00

 -0.68

   -4.6%

Put/Call Ratios

S&P 100

141/100’s

+45/100’s

Put/Call Ratios

CBOE Equity

 58/100’s

 +1/100’s

Bonds

134-19 +1-16

  3.59% -0.11%

10 Yr Note

126-034 +16

 2.66%-0.07%

Copper

318.75

-7.25

  -2.2%

CRB Inflation

Index

 302.43

+0.85

  +0.3%

Barron’s Confidence

 71.7%

-0.06%

S&P100

818.24

+10.91

+1.35%

5 Yr Note

120-29 +09 1.51%-0.02%

Dollar

79.78

-0.48

 -0.6%

DJ Utilities

518.77

-4.70

 -0.90%

AAII

Confidence

Index

Bullish

  39.7%

-2.5%

Bearish

 21.1%

-1.7%

Neutral

  39.2%

 +4.2%

M1 Money  Supply

+9.71%

February 17th

M-2 Money

Supply

+6.94%

February 17th

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

Where To Invest Now Market Strategies

$100,000 Trading Portfolio

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

Stock Purchase Price Purchase Date Stop/Loss   Price/Date Sold   Profit/(Loss)

This Information

Is For Members Only

For Free Trade Alerts

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59.28

     02/26

58.49 02/27

( $ 79 )

59.97

     02/19

59.09 02/24

( $ 88 )

12.52

     02/07

15.37

     01/29

10.40

     01/28

11.79

     01/28

15.37

     01/16

10.06

     01/10

7.85

12/30

8.76 02/25

$ 455

0.78

12/30

16.22

12/23

32.64

12/23

4.31

12/23

4.08

8/12

6.56

7/11

12.10

5/23

4.10

3/04

2.64sco

538

11/08/12

636

10/9/12

0.22

10/22/12

.12 sco

 

Recommendations will be both listed in this letter and texted to members.

Previous closed out stock and option positions can be found in past Where To Invest Now Market Strategies Newsletter issues available in the Subscriber Members Area.

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, DXD, SDS,TZA and RWM, which go 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.

 

Where To Invest Now

Market Strategies

$100,000 Trading Portfolio

Recommendations And Overall Comments

Last week we gained just $48

reducing our total loss for the year to $ 4,729.

The SPXU’s ( a negative ETF ) were traded again for balance.

For the full year 2013 we had realized gains of $ 53,556.

We have open position losses of about $ 4,742 most of which are held over from last year. We also have not counted dividends received on stocks like Apple, Nordic American ( NAT ) and JP Morgan.

We have two long options positions:

The Stock table has the following 16 positions:

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

 

We are basing money management on a hypothetical $ 100,000

and are using $ 1,708 in two options positions and

$62,506 in 16 stock positions

totaling $ 64,214 with $ 35,786 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.

 

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Previous Week’s Recommendations and

Rules for the Where To Invest Now

Market Strategies

$100,000 Portfolio Trading Account

  • 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

Option

Cost

Date

Sold

Date

Profit/(Loss)

This Information

Is For Members Only

For Free Trade Alerts

CLICK HERE

Calls        0.31

02/28/14

Calls        0.84

02/27/14

1.23

02/28/14

$ 468

Puts         1.43

02/25/14

0.72

02/28/14

( $ 852 )

Calls        1.24

02/20/14

0.84

02/26/24

( $ 320 )

Calls        0.35

02/18/14

0.70

( Sold 10 100%Up Rule )

0.80

Sold Balance

02/24/14

02/26/14

$ 350

$ 450

Calls        0.68

02/18/14

Note: Previous closed out stock and option positions can be found in past Where To Invest Now Market Strategies Newsletter issues available in the VIP Subscribers Members Area.

 

This Weeks’ Where To Invest Now

Market Strategies

Economic Numbers and Media Data

Monday 08:30 hrs Personal Income Jan ( 0.3% vs 0.0% )

Personal Spending 0.1% vs 0.4% )

CORE PCE Prices ( 0.1% vs 0.1% )

 

10:00 hrs ISM Index Feb ( 51.6 vs 51.3 )

 

10:00 hrs Construction Spending Jan

( -0.1% vs 0.1% )

 

14:00 hrs Auto Sales Feb ( NA vs 5.1Mln )

 

14:00 hrs Truck Sales Feb ( NA vs 7.0Mln )

 

Tuesday  
Wednesday 07:00 hrs MBA Mortgage Index 03/01

( NA vs -8.5% )

 

08:15 hrs ADP Employment Change Feb

( 150K vs 175K )

 

10:00 hrs ISM Services Feb ( 53.5 vs 54.0 )

 

10:30 hrs Crude Inventories 03/01

( NA vs 0.068Mln Bbls )

 

14:00 hrs Beige Book Mar ( NA )

 

Thursday 07:30 hrs Challenger Job Cuts Feb

( NA vs 47.3% )

 

08:30 hrs Initial Claims 03/01 ( 338K vs 348K )

Continuing Claims 02/22  ( 2973K vs 2964K )

 

08:30 hrs Productivity-Rev 4th Qtr ( 2.5% vs 3.4% )

Unit Labor Costs-Rev ( -0.7% vs -1.6% )

 

10:00 hrs Factory Orders Jan

( -0.5% vs -1.5% )

 

10:30 hrs Natural Gas Inventories 03/01

( NA vs -95bcf )

 

Friday 08:30 hrs Nonfarm Payrolls Feb

( 163K vs 113K )

Nonfarm Private Payrolls ( 170K vs 142K )

Unemployment Rate ( 6.6% Unchanged )

Hourly Earnings ( 0.2% Unchanged )

Ave Workweek Feb ( 34.4% vs Same )

 

08:30 hrs Trade Balance Jan

( -$37.3B vs -$38.7B )

 

15:00 hrs Consumer Credit Jan

( $ 11.8B vs $ 18.8B )

 

 

 

Where To Invest Now

Market Strategies Economic Data

New home Sales jumped 9.6% in January from an upwardly revised 427,000, up from 414,000 originally reported for December. ( according to briefing.com ) Weather related problems were felt the most throughout the Midwest, where sales fell 17%. Otherwise sales were strong in the rest of the country. Sales gained 72% in the Northeast which more than recovered after a downward shock in December even though adverse weather conditions affected most of the area. That included the bearish contraction in the NAHB home builders survey. Sales reached their highest level since July 2008.

Median Home Prices increased 3.4% to $ 260,000. New Home inventory levels fell to a 4.7 months’ supply.

Affordability concerns from higher mortgage rates and new home prices could stall further sales.

Category JAN DEC NOV OCT          SEP
Total Sales 468K 427K 444K 452K        403K
Inventory (months) 4.7 5.2 4.9 4.9          5.4
Median Price Y/Y 3.4% 2.9% 9.9% 6.9%          6.0%

 

Where To Invest Now

Market Strategies Trading Fundamentals

The testimony of Federal Reserve Chair Janet Yellen helped the markets which were both dovish in tone and lacking in negative surprises, prompting some investors to return to the market.  Fed Chair Yellen said the Fed likely would continue tapering its asset purchases while tracking data to figure how much recent softness in the economy is due to the weather. Her admission of soft data was seen as supportive of dovish policy. Although there were a number of important US data releases, Q4 2013 preliminary, Chicago PMI, U. of Michigan Consumer Confidence, none provided enough of a surprise to be market moving. However, Russia’s invasion of the Crimea created enough uncertainty to destabilize the markets.

Index % Change YTD %
DJIA 1.4 -1.5
Nasdaq 1.0 3.1
S&P 500 1.3 0.6
Russell 2000 1.6 1.7

 

Where To Invest Now

Market Strategies Technical Information

Support Levels S&P 500    1848

Resistance S&P 500           1863

 

Support Levels DOW          16,080

Resistance DOW                 16,440

 

Support Levels QQQ           87.50                  

Resistance QQQ                  91.10

                  

Support Levels NASDAQ      4248

Resistance NASDAQ             4370

 

Where To Invest Now

Market Strategies Cycles

Tempestuous March markets tend to drive prices up early in the month and batter stocks at month end. Julius Caesar failed to heed the famous warning to “beware the Ides of March” but investors have been served well when they have. Stock prices have a propensity to decline, sometimes rather precipitously, during the latter days of the month.

March packs a rather busy docket. It is the end of the first quarter, which brings with it Triple Witching and an abundance of portfolio maneuvers from The Street. March Triple-Witching Weeks have been quite bullish in recent years. But the week after is the exact opposite, DJIA down 17 of the last 26 years—and frequently down sharply for an average drop of 0.4%. Notable gains during the week after for DJIA of 4.9% in 2000, 3.1% in 2007, 6.8% in 2009, and 3.1% in 2011 are the rare exceptions to this historically poor performing timeframe.

Normally a decent performing market month, March performs even better in midterm election years (see Vital Statistics table below). In midterm years March ranks: 4th best for DJIA and S&P 500 (October, November and December are better); and 3rd best for NASDAQ, Russell 1000 and Russell 2000 (October and November are better). Midterm March has produced solid gains across all five indices over the past four midterm years (2010, 2006, 2002 and 1998).

Saint Patrick’s Day is March’s sole recurring cultural event. Gains the day before Saint Patrick’s Day have proved to be greater than the day itself and the day after. Perhaps it’s the anticipation of the patron saint’s holiday that boosts the market and the distraction from the parade down Fifth Avenue that causes equity markets to languish. Or maybe it’s the fact that Saint Pat’s usually falls in Triple-Witching Week.

Whatever the case, since 1950, the S&P 500 posts an average gain of 0.2% on Saint Patrick’s Day (or the next trading day when it falls on a weekend), a gain of 0.11% the day after, but the day before averages a 0.23% advance. This year, Saint Patrick’s falls on Monday which has only occurred nine times in the past 64 years. In these years, S&P 500 averaged 0.07% on the Friday before, 0.06% on St. Patrick’s Day and 0.54% on the day after.

March (1950-2013)
DJI SP500 NASDAQ Russell 1K Russell 2K
Rank 6 4 5 5 5
# Up 42 42 28 24 26
# Down 22 22 15 11 9
Average % 1.1 1.2 0.9 1.2 1.4
4-Year Presidential Election Cycle Performance by %
Post-Election 0.4 0.6 -0.3 0.8 1.2
Mid-Term 1.3 1.4 2.1 2.2 3.3
Pre-Election 2.2 2.1 3.5 2.4 3.2
Election 0.6 0.8 -1.6 -0.6 -2.1
Best & Worst March by %
Best 2000 7.8 2000 9.7 2009 10.9 2000 8.9 1979 9.7
Worst 1980 -9.0 1980 -10.2 1980 -17.1 1980 -11.5 1980 -18.5
March Weeks by %
Best 3/13/09 9.0 3/13/09 10.7 3/13/09 10.6 3/13/09 10.7 3/13/09 12.0
Worst 3/16/01 -7.7 3/6/09 -7.0 3/16/01 -7.9 3/6/09 -7.1 3/6/09 -9.8
March Days by %
Best 3/23/09 6.8 3/23/09 7.1 3/10/09 7.1 3/23/09 7.0 3/23/09 8.4
Worst 3/2/09 -4.2 3/2/09 -4.7 3/12/01 -6.3 3/2/09 -4.8 3/27/80 -6.6
First Trading Day of Expiration Week: 1990-2013
#Up-#Down 17-7 17-7 11-13 15-9 13-11
Streak U2 U2 U1 U1 U1
Avg % 0.2 0.03 -0.3 -0.02 -0.3
Options Expiration Day: 1990-2013
#Up-#Down 12-12 15-9 9-15 13-11 8-15
Streak D2 D1 D2 D1 D2
Avg % 0.2 0.1 -0.1

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NOTE: This is a Sample Issue Only!

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Rule 17B Attestations

Princeton has approximately 2,581,578 shares of AIVN both free and restricted and represents them for I.R.. Princeton also has about 40,000 shares of TXGE. Princeton is paid $ 1,500 per month from RMS Medical Products. Princeton has bought 81,100 shares of RMS Medical Products. Princeton will be engaged by Target Energy. No contract is currently in place. When there is no movement in penny stocks, even though there is none or very small losses, we will liquidate ( sold AIVN on stop ) even though we like the company, if money is needed for better opportunities. We now believe REPR represents upside opportunity. The Target ADR trades at about $ 4.50 in U.S. vs 0.045 in Australia. Princeton owns 400,000 Australia shares and about 500 U.S. ADR’s. Princeton is paid about 500,000 shares of Leo Motors.

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 e-mail issue. Princeton may buy or sell its free-trading shares in companies it represents at any time.

 

CONTACT

Please Direct All Inquiries To:

 Mike King

(702) 650-3000

mike@princetonresearch.com

Princeton Research

3887 Pacific Street, Las Vegas, Nevada 89121

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Where To Invest Now March 2014

Market Strategies