September 16, 2013

Market Strategies Newsletter

VIP Member Subscribers Edition

 

Read the full September 16, 2013 Market Strategies Newsletter – Investing Strategies Where To Invest Now Newsletter in .pdf format:

http://www.princetonresearch.com/9-16-2013-Market-Strategies.pdf

 

Covering High Return Balanced Investing Strategies To

Make Money In Up Or Down Markets

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

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Market Strategies Stock Options Trading

$10,000 Account

There are four open positions:

6 ARRY Sept 5 Calls

6 BBRY October 10 Calls

10 SPY Sept 167 Puts

4 WTW Oct 37.50 Calls

 

Funds in Use $ 3,438

Market Strategies Stock Options Trading

$10,000 Account Traders Comments

This weeks’ strong showing

in the major indices generated

a small gain of $214,

from our short position in

LULU ahead of earnings.

This brings our YTD performance

up to 273% gain,

or a total equity of $37,372

and confirms the idea that

this is a “market of stocks.”

 

This is an essential component of our method of constructing a “balanced” portfolio.  While it is sometimes not evident from the Options Only portfolio, we often carry reverse ETFs on the major sectors of the market in the larger $100,000 portfolio. While we carry some open losses, as long as we continue to grow the profits overall, we try to be protected from swift and sometimes deep reversals.

One of our faithful subscribers pointed out that I had incorrectly posted our position in SPY puts as 9/164 instead of 9/13 164s, so we have corrected the position with a loss of $340 (50% rule) in this weeks numbers.  Thanks Tim…

In case you haven’t seen or heard about the cover of Time magazine, it featured a picture of the Wall Street Bull statue in lower Manhattan dressed up and celebrating the bull market.

Traditionally, this is taken as a “contrary indicator,” since by the time a general interest magazine becomes aware of the party is usually over.  Just not sure this is the case right now with the markets within about 1% of the highs, but we shall see soon enough.

I’m of the opinion that while the new highs haven’t expanded in the NYSE or Dow, we are set up in the Russell 2000 and all the other broader indices to make new all-time highs at any moment.  Quite possibly this will also include a new Dow Theory breakout to the upside.

I think it is likely that we will pullback from this phenomenal start for the month and retrace anywhere from 25-40% of this run and turn higher again.  There is an awful lot of news coming in the weeks ahead and momentum can turn on a dime but I believe we will make new highs first

…CAM

 

Market Strategies Stock Options Trading Chart

$10,000 Account

New Trades

Buy 6 COH October $55 Puts @ $ 0.95 ( All Or Better )

Buy 6 October DECK $62.50 Calls @ $ 1.60

 

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.

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:

 

Buy 12 COH $55 Puts @ $ 0.95

Buy 10 DECK October $ 62.50 Calls @ $1.60

 

We gained $ 32 in closed out positions last week

reducing our profits for the year to a hypothetical $ 59,856

not counting open positions losses of about $ 7,411

 

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

 

We have four long options positions:

 

The Stock table has the following 20 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 $ 6,876  in four options positions

$ 67,086.00 in 20 stock positions

totaling $ 73,962 with

$ 26,038.00 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

 

This Weeks’ Market Strategies

Economic Numbers and Media Data

Sept ( 9.0 vs 8.6 )

 

09:15 hrs Industrial Production

Aug ( 0.5% vs 0.0% )

Capacity Utilization ( 77.8% vs 77.6% )

Tuesday08:30 hrs CPI

August ( 0.2% vs 0.2% )

CORE ( Also +0.2% vs Same )

 

09:00 hrs Net Long Term TIC Flows

July ( NA vs -$66.9B )

 

10:00 hrs NAHB Housing market Index

September ( 59 vs Same )

Wednesday07:00 hrs  MBA Mortgage Index 09/14

( NA  vs  -13.5% )

08:30 hrs Housing Starts

Aug ( 910K vs 896K )

Building Permits ( 943K )

 

10:30 hrs Crude Inventories 9/14

( NA vs -0.219Mln Bbls )

 

14:15 hrs FOMC Rate Decision with

Tapering discussions

.Thursday08:30 hrs  Initial Claims 09/14

( 340K vs 292K )

08:30 hrs Continuing Claims 09/07

( 2880K vs  2871K )
08:30 hrs Current Account Balance

2^nd Qtr ( -$ 100Bln vs -$106.1Bln )

 

10:00 hrs Existing Home Sales

Aug ( 5.30M vs 5.39M )

 

10:00 hrs Phila Fed Sept ( 9.0 vs 9.3 )

10:00 hrs Leading Economic Indicators

Aug ( 0.6% vs Same )

 

10:30 hrs Natural Gas Inventories 09/14 ( NA vs Same )

FridayGermany will know if Angela Merkel,

a huge favorite is re-elected.

 

Market Strategies Trading Fundamentals

Eight of the Ten Dow Industrial groups were higher with Health Care leading with a gain of 2.03%.

United Health Group ( UNH $ 74.06 ) helped the Dow with a nice week catapulting to an all-time high up $ 1.50 or 2.1% for the week. Having risen from a low of $ 27.13 in 2010.

Other health care stocks continued to rally to either new or equalling all- time highs:

Humana ( HUM: $ 95.64 ) + 1.29 or 1.4%; Wellpoint ( WLP: $ 87.29 ) + 1.01 or 1.2%; Aetna ( AET: $ 65.11 ) + $ 1.29 or 2.1%  and

HCA Holdings ( HCA: $ 39.52 ) + 1.33 or +3.5%.

 

Industrials added 1.83%; Financials gained 1.59%; Basic Materials rose .58% and Oil and Gas shares 1.57%; Consumer Services added 1.47%; Technology 1.39% and Consumer Goods 1.01%. Both Utilities – 1.2% and Telecommunications -1.33% were lower on the week.

 

Market Strategies Economic Data

All ten Dow Industrial groups were higher led by Consumer Services up 3.08%. Industrials gained 2.91%; Telecommunications added 2.66%; Basic Materials gained 2.60%; Fincancials 2.11%; Consumer Goods 2.05%; Health care 1.85%; Oil and Gas 1.34%; Technology 1.00% and Utilities 0.72%.

Economics

The Treasury Budget improved dramatically in the year from August 2012 from $ 1901 B in the Red to 148B. Revenues increased slightly by $ 6.5B from $ 179B in August 2012 to 185B this year. Outlays fell more steeply as the result of the sequester by $ 36B from $ 369B to $ 333B.

 

From the chart it is apparent that progress is being made although not yet to the halcyon days of

the year 2000-01 when there was a surplus..

 

Market Strategies Technical Information

 

Support Levels S&P 500    1665

Resistance S&P 500           1697 and 1709.67

 

Support Levels DOW          15,040

Resistance DOW                 15,365

 

Support Levels QQQ           75.45  (74.85)                 

Resistance QQQ                  77.10

                  

Support Levels Nasdaq      3576

Resistance Nasdaq             3760

 

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

 

Market Strategies Cycles

 

New Recommendations for 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 pick up 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 making it

 

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

Princeton Research

3887 Pacific Street, Las Vegas, Nevada 89121