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)

 

December 19, 2011

Market Strategies Guide to Successful Trading

 

Read PDF Market Investing Strategies Newsletter PDF Version – CLICK HERE

Special Note:  Charles Moskowitz appeared for an interview at StockLegends.com. http://www.stocklegends.com , we urge everyone to listen to the interview now available on our website at  

http://www.princetonresearch.com/princeton-research-featured-on-investment-news-show/

 

We have been asked to help those who do not wish to make a $100,000 commitment to an account to scale back the initial investment to a $10,000 account. 

We are answering this request with an account that will only trade options.  However, in order to take full advantage to this new account, you really need to also subscribe to our Texting service.  There is no cost involved, but in order to receive all of the trading suggestions, in a high volatility environment, we need to communicate more often than weekly.

To subscribe, simply TEXT the word UPDATES to 69302

and you will automatically be included.

 

$10,000 OPTIONS ONLY ACCT:

 

New Trades for this week:

The $10,000 Options Only account lost $301 last week, its twenty ninth week of trading.

We came into the week with gains of $9,249.00 and with the losses last week decreased the

gains to $8,948.00. 

 

Eight positions remain:

the QCOR Jan 44 Calls,

RMBS Jan 7.5 Calls,

BLK Jan 180 Calls,

TEN Jan 29 Calls,

WFR Jan 5 Calls,

APC 75 Calls,

TZA 35 Calls, and

YHOO Jan 16 Calls.

 

The Open positions are highlighted in the options table below.  Approximately $ 6305 funds are in use.

 

The market seems set to have a meaningful move this week, but I have little idea which way.  This is the

reason we try to have a balanced approach.  We have had little new information from the Eurozone or Iran/Iraq

for a couple of days, and I think left to our own recent economic news we can edge higher.  The current

impasse/negativity from Washington should subside with the holidays and give us a shot at a “Santa Clause” rally.  There are a great many stocks near lows that have been sold for tax losses that seem to be holding above recent lows and can rally from here.  Remember that we don’t need “GOOD” news to move up, just news that isn’t getting worse.  I will not be giving our long positions much room on the downside, so stay alert

for Text Updates…..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 December 12, December 5, November 28, November 21, and November 14 issues.

 

DATE	TRADE	PRICE	COST	PROCEEDS	RESULTS
12/16	Bought 10 YHOO January 16 CALLS	.70	700
12/15	Sold 10 CONN January 12.50 Calls	.45		450	550 Loss
12/14	Bought 5 TZA January 35 CALLS	2.95	1475
12/14	Bought 2 APC January 75 CALLS	3.40	680
12/14	Sold 3 TLT January 114 PUTS	.91		273	276 Loss
12/14	Bought 50  WFR January 5 CALLS	.12	600
12/14	Sold 5 MHS January 60 CALLS	.75		375	425 Loss
12/14	Sold 5  ZSL January  14 Calls	2.50		1250	800 Gain
12/14	Bought 5  TEN January 29 CALLS	1.00	500
12/14	Sold 5  ZSL January  14 Calls	2.30		1150	700 Gain
12/12	Bought 2 BLK January 180 CALLS	3.70	740
12/13	Sold 5 RIMM January 17.5 Calls	.90		450	450 Loss
12/12	Bought 10 RMBS January 7.50 CALLS	.45	450
12/12	Bought  3 TLT January 114 PUTS	1.83	549
12/12	Bought 5 MHS January 60 CALLS	1.60	800
12/9	Bought 10 ZSL January  14 Calls	.90	900
12/9	Sold 50 WFR Jan 5 Calls	.22		1100	250 Gain
12/7	Sold 10 QQQ December 57 Puts	1.35		1350	210 Gain
12/6	Bought 4 QCOR January 44 Calls	2.90	1160
12/6	Bought 10 CONN January 12.50 Calls	1.10	1100
12/6	Bought 50 WFR Jan 5 Calls	.17	850
12/5	Bought 10 QQQ  12/57 Puts	1.14	1140
12/5	Sold 50 BAC December 6 Calls	.22		1100	400 Gain
12/2	Bought 5 RIMM January 17.5 Calls	1.80	900
12/1	Bought 50  BAC December 6 Calls	.14	700

 

New trades $ 10,000 account…In Texting we have a limited amount of words. In the interest of brevity: OPTIONS ONLY:  1 January; 2 February
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 Bought GMXR, AEZS and covered shorts in STMP.
We also Bought HWD, AGQ and Sold RICK and CONN with text alerts.

 (A full position is $5,000)

 

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

 

Previous closed out positions can be found in the December 12, November 28, November 21, November 7, October 17, October 3, September 19, September 6th, August 15th, August 8th, August 1st and July 18th letters.

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 and SDS, whichgo up when the DOW and S&P 500 go down and down when they go up.

 

New Stock Option Recommendations

 

Option and overall Comments

We had a gain last week of $2398 in a down week. Our gains for the year were $ 62,518 and with last week’s gains are increased to $ 64,916. We have Eight long options positions remaining, the QCOR Calls, RMBS Calls, BLK Calls, TEN Calls, WFR Calls, APC Calls, TZA Calls a triple inverse Russell 2000 ETF, YHOO Calls. and the CSCO Spread . The stock table includes Eleven long stock positions: HWD, AEZS, GMXR, AGQ, WFR, CBOE, LEI, KAJMY, LEOM, SDS, and XBOR. The SDS is a double inverse SP500 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 $20,000 in the options positions and $ 55,000 in the eleven long stock positions for a total of $ 75,000 with $ 25,000 in cash. This is our 47th letter for 2011. 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)

at the close the previous Friday or at the open on Monday.

• The options will be followed until closed out.
• Option Symbols have changed. We will now use a new terminology. ( 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 December 5, November  28, November 21, November 7, October 17, October 3, September 19, September 6, August 22, August 8, August 1, July 18, July 11, July 5, June 20, May 16, April 25, April 11,  March 21, March 14, March 7, February 21, 2011 February 7, 2011 January 24, 2011, December 20,2010, November 22, 2010, October 11, 2010, September 13, 2010, July 26, 2010, June 14, 2010, May 10, 2010, January 25, 2010, November 23, October 23, August 24, July 20, 2009 newsletters.

 

                                                                      

                                  This Weeks’ Economic Numbers and Media Data

 

 

Economic Data

 

Unemployment Claims plummeted to just 366K, which was the most encouraging indicator. Philadelphia Fed numbers were much higher than anticipated at 10.3 vs 4.5 expected. Empire State Manufacturing improved to 9.5 more than triple the consensus.

 

Otherwise, economic Indicators were little changed on the week. The only major negative change was Retail Sales down to + 0.2% from both the previous week and expectations of + 0.6%. Business Inventories at 0.8% were down just 0.1%;  Export and Import prices were both slightly lower, Import prices – 0.2% and Export Prices-0.1%; CORE PPI was unchanged at 0.1%. Industrial Production       at -0.2% was a bit lower than the +0.2% expected but the Cap Utilization was unchanged at 77.8%.

 

 

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

 

All ten Dow Industrial Groups were lower led by Oil and Gas, down 5.95% and Basic Materials off 5.25%. Opec’s Xmas present pegging production at 30 million bbls a day helped topple oil and commodity prices. Technology fell 4.44%; Industrials lost 3.51%; Financials 3.15%; Consumer Services 2.40%; Consumer Goods 2.14%; Telecomm 1.13%; Health Care -0.51% and Utilities lost the least but down 0.46%.

 

The markets tried to rally but were unable to overcome resistance even though sovereign debt yields in European Nation’s bonds were lower a tacit sign that confidence may be returning. Spain had a successful debt offering and reports of improved manufacturing activity proved encouraging.

 

Dow component and semiconductor bellwether Intel (INTC 23.23, -0.08) disappointed investors at the beginning of the week by issuing a cautious outlook. This proved devastating as Intel is a bell whether issue. Retailer Best Buy (BBY 23.19, -0.17) posted earnings that came short of what Wall Street had expected. On the positive side of things, FedEx (FDX 84.89, +1.42) reported a better-than-expected bottom line, while Discover Financial Services (DFS 24.23, +1.16) posted an upside earnings surprise of its own. The company also increased its quarterly dividend. A strong quarterly report from Adobe Systems (ADBE 28.20, +1.74) proved pleasing to investors at week’s end.

The Net Long Term TIC Flows came in less than consensus at 4.8B vs 30 B expectations.  The trend of the data have been to the downside

 

Clearly, the flow of funds are showing a reluctance toward the US assets including equities, bonds and notes. This may be in response to the debt ceiling concerns that gripped the market in July (This number was for the month of October).

 

 

Technical Information

 

      Support Levels:   S&P 500          1203; 1192                    Resistance S&P 500     1238; 1253

                                        DOW           11,805; 11,690              Resistance DOW        12,030; 12,175

                                        QQQ            5430; 5356                    Resistance QQQ           5553; 5640                     

                                        Nasdaq        2511; 2469                     Resistance Nasdaq      2568; 2620

                      
                              CYCLES

 

Only twice since 1850 in America have 30-year bond returns been as close to equity returns as they are today. And both times multi-decade bond-bear markets followed. During these periods the stock market jumped as much as 7-fold.” – Oxford Club newsletter, 11/12/11

 

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. 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. .

 

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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