Where To Invest Now – Market Strategies Newsletter Sept 23, 2013

September 23, 2013

Market Strategies Newsletter

Sample Issue

 Covering High Return Balanced Investing Strategies To

Make Money In Up Or Down Markets

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

NOTE: This is a Sample Issue Only!

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THE COMPLETE VIP MEMBERS ONLY

MARKET STRATEGIES NEWSLETTER ISSUES

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Market Strategies Stock Options Trading

$10,000 Account 

There are 3 open positions:

4 WTW Oct 37.50 Calls,

6 DECK Oct 62.50 Calls and

10 DSX Oct 12 Calls

Funds in Use 2,220

Market Strategies Stock Options Trading

$10,000 Account Traders Comments

 

This week we had a loss of $1,558

bringing out YTD performance down to

a gain of $25,814

 

Returns of 258%

A big piece of the loss came from the surprise trading halt and early release of the Blackberry earnings (more specifically the lack thereof).

The other major component was the Sunday withdrawal of Larry Summers from the Fed Chairmanship with the gap in the SPY and our put position.  Makes me wonder, how would I feel if I were either Summers, or Steve Ballmer the week before, when he announced stepping down and saw MSFT jump 8%…..

The market seems both tired and stretched here.  Friday’s reversal of fortune took a bit of overbought out of the Dow but the S & P 500 can still use some more work.

One of the things that bothers me the most is the continued reoccurrence of gaps in both directions … since 6/19 we have had a total of 7 gaps … 4 up and 3 down …. The reason it disturbs me is simple; more news-related surprises fail to give participants the ability to make and act on decisions when the market gaps either way…it is a lack of liquidity at the prior prices.

I will continue to try to find shorts near resistance and longs near support.  If we can get a bit of “horizontal” trading to better identify current support and resistance and show me some way to control risk I will have new trades via text.

There will be no radio show this week as travel will keep both Mike and I unavailable on Tuesday.

…CAM

Market Strategies Stock Options Trading Chart

$10,000 Account 

New Trades:

1)  BUY   8  SPY 9/27  171 PUTS @ $ .95 OB   

2)  BUY  15 XCO 10/7  CALLS @ $ .30 OB

 

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 VIP 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.

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 25^th 147 calls or puts.

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

Market Strategies $100,000 Trading Portfolio

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 past Market Strategies Newsletter issues available in the VIP Subscribers 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.

 

Market Strategies $100,000 Trading Portfolio

Recommendations And Overall Comments 

New Trades:

1)  BUY 16 SPY 9/27 171 PUTS @ $ .95 OB  

2)  BUY 30 XCO 10/7 CALLS @ $ .30 OB

 

We lost $ 3116 in closed out positions last week

reducing our profits for the year to a hypothetical $ 56,740

not counting open positions losses of about $ 12,100.

 

We also have not counted dividends received on stocks like Apple and JP Morgan.

We have three long options positions:

The Stock table has the following 25 positions:

Last week’s stock and option tables had typo mistakes and have been updated. The stock table did not include BBRY, NBG, ARRY and PPHM positions. Also the stock table has been updated to reflect the reverse split on NBG. The option table had a typo mistake where 168 SPY puts were listed as 167 Puts.

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 $ 4,440 in three options positions and

$ 85,366 in 25 stock positions

totaling $ 89,806 with $ 10,194 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 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

 

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

 

NOTE: This is a Sample Issue Only!

 

TO GET OUR TRADE ALERTS BY TEXT MESSAGE AND

THE COMPLETE VIP MEMBERS ONLY

MARKET STRATEGIES NEWSLETTER ISSUES

Visit:

PrincetonResearch.com/investment-strategies.htm

 

To Lock In Your SPECIAL Low Subscription Rate

 

This Weeks’ Market Strategies

Economic Numbers and Media Data

Market Strategies Trading Fundamentals 

The Federal Reserve unexpectedly decided to maintain quantitative easing in the face of uneven economic results.  Mr. Bernanke said economic data received since June has not been strong enough to justify scaling back asset purchases just yet. Nine sectors of the stock market finished the week with gains while telecom services closed the week flat as investors poured money into the Stocks Funds at a pace not seen since the third quarter of 2007.

 

Market Strategies Economic Data 

The Fed lowered its GDP forecast for 2013 and 2014 GDP was also lowered.

The Fed’s Open Market Committee is expecting this year’s growth to range between 2.0% and 2.3% versus 2.3%-2.6% in June.  The Fed’s 2014 growth projections were lowered to a range between 2.9% and 3.1% versus 3.0% – 3.5% in June.

 

Market Strategies Technical Information 

Support Levels S&P 500    1696 and 1672

Resistance S&P 500           1738

 

Support Levels DOW          15,290

Resistance DOW                 15,740

 

Support Levels QQQ           77.63                  

Resistance QQQ                  80.29

                  

Support Levels Nasdaq      3743

Resistance Nasdaq             3682

 

Market Strategies Cycles

October Seasonalities; (from Stock Trader’s Almanac) 

Transports enter their historically favorable season at the beginning of October and it runs until May.

iShares DJ Transports (IYT) is attractive below current levels with a buy limit of $115.67. The stop loss is $104.10 and auto sell is $154.72. Top 5 holdings are: Union Pacific, Kansas City Southern, FedEx, UPS, and Alaska Air Group. A pickup in Chinese growth and exports usually translates directly to a pickup in the transportation sector. After all, those goods need to be moved from the factory to stores. With nearly 70% of U.S GDP coming from consumers, seasonal strength in the consumer sector overlaps nicely with the transportation sector.
Broker/Dealer has produced returns of 32.7% and 18.2% over the last 15 and 5 years respectively from early October to the middle of April. iShares DJ US Broker-Dealers (IAI) is our choice to trade this seasonality. Use a buy limit of $32.61 and a stop loss of $29.35 once a position has been entered. The auto sell is $47.60. Top 5 holdings are: Goldman Sachs, Morgan Stanley, Charles Schwab, Ameriprise Financial and CME Group. Solid year-to-date market gains and the end of the summer doldrums are likely to boost profits for this group. However, trading screw ups, software glitches and litigation costs are still major concerns.
Healthcare Providers enters its favorable season at the end of October and runs until mid-January. iShares DJ US Healthcare Providers (IHF) is attractive near current levels with a buy limit of $87.53. The stop loss is $78.78 and auto sell is $109.09. Top 5 holdings are: UnitedHealth, Express Scripts, Wellpoint, Aetna, and Cigna. Healthcare costs are an issue in the U.S., but much like food and shelter they are a necessity in life.

 

Rule 17 B 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 if money is needed for better opportunities. We now believe the two small penny stocks ( REPR and AIVN ) we represent for a total outlay of $ 4,725 is well worth the risk. The Target ADR trades at about $5.90 in U.S. vs 0.065 in Australia. Princeton owns 400,000 Australia shares and about 500 U.S. ADR’s.

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 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

 

Or

 

Charles Moskowitz (781) 826-8882

CAM@MoneyInfo-LLC.com

 

Princeton Research

3887 Pacific Street, Las Vegas, Nevada 89121

 

Phone: (702) 650-3000

 

Fax: (702) 697-8944