Investment Strategies – Newsletter April 22, 2013

April 22, 2013

Market Strategies Newsletter

VIP Member Subscribers Edition

  Where To Invest Now

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

 

Market Strategies

$10,000 Options Trading Account

There are six open positions:  

 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

USE THE SUBSCRIBE OFFER BUTTON ON YOUR RIGHT

 

Funds in Use: $ 4,486.00

 

Options Trading Strategies Comments

 

We had another positive week

while enduring a very hectic market.

 

The gain was $1,056

bringing YTD performance to

$15,603 or just over 156%

 

The biggest down and up market days for the year occurred back to back on Monday and Tuesday.

We used the weakness on Monday to add new positions at very favorable prices, buying IYT calls that closed at $2.10 on the previous Friday at a remarkable $ .78, and while they closed only slightly higher at $1.10 we have a great cushion of profit while we wait to see what develops.

We also added ARRY 5/5 calls @ $ .35 and we were already forced to sell half on the 100% up rule when they gaped up to $1.00.

Our new position in CLDX 5/13 calls at $ .60 on Thursday closed at $1.05 when the stock rallied from $11.00 on Monday to close the week at $13.19.

While the “Sell in May and go away” might seem like just another Wall St. adage without much sense, it often is a useful period for the market to take a bit of a rest. Some of the big names such as IBM had disappointing earnings.

For protection against other names failing to meet even the lowered expectations on the revenue side of the equation, we have bought some SDS Calls, which go up inversely to the S&P 500.

We will continue to manage risk with a balanced approach.

…CAM

Where To Invest Now

Options Trading Strategies Table

 

Remember, these trades are based on your participation in the

VIP Subscriber Members Only TEXTING SERVICE TO

RECEIVE ALL UPDATES.

 

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

USE THE SUBSCRIBE OFFER BUTTON ON YOUR RIGHT

 

Previous closed out trades not listed here may be seen in previous

Market Strategies Newsletters 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 25th 147 calls or puts.

For any questions please call (702) 650 3000.

 

Market Strategies Where To Invet Now

Market Laboratory – Weekly Changes

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

Dow

14,547.51

-317.55

-2.14%

Nasdaq

3206.06

-88.89

-2.70%

S&P 500

1555.25

-33.60

 -2.11%

Transportation

6,034.14

-109.61

-1.78%

Russell 2000

912.50

-30.35

-3.22%

Nasdaq 100

2780.46

-76.02

-2.66%

Gold (spot)

1395.30

 -105.70

   -7.0%

Silver

(Dec)

2296.0

-337.1

-12.8%

Crude

  88.01

 -3.28

   -3.6%

Heating Oil

278.76

-8.42

 -2.9%

Unleaded Gas

  2.7614

-.0487

 -1.7%

Natural Gas

  4.408
+0.186

  +4.4%

VIX

 14.97

+2.91

+24%

Put/Call Ratios

S&P 100

134/100’s

+16/100’s

Put/Call Ratios

CBOE Equity

 76/100’s

+15/100’s

Bonds

148-04 +19

 2.88% -0.04%

10 Yr Note

133.00+006  1.70% -0.02%

Copper

314.85

-20.15

 -6.0%

CRB Inflation

Index

 283.19

-4.02

 -1.4%

Barron’s Confidence

 66.3%

-1.6%

S&P100

700.82

-14.56

 -2.04%

5 Yr Note

124-127 -027                                                   0.71% +0.02%

Dollar

82.56

+0.25

 +0.3%

DJ Utilities

528.03

4.71

 +0.90%

AAII

Confidence

Index

Bullish

26.9%

+7.6%

Bearish

 48.2%

-6.3%

Neutral

24.9%

-1.3%

M1 Money  Supply

+9.02%

Apr 8th

M-2 Money

Supply

+6.74%

Apr 8th

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

 

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

 

No New Stock Trades for the coming Week unless they are Texted to you.

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

 

 

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

USE THE SUBSCRIBE OFFER BUTTON ON YOUR RIGHT

 

 

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.

 

$100,000 Trading Portfolio

Options Trading Strategies

Recommendations And Overall Comments

We lost $ 2,539.00 in closed out positions last week

mainly because of a TXGE sell stop.

 Our profits for the year fell to a hypothetical $ 27,872

 

We have six options positions:

The Stock table includes the following seventeen 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 $ 100,000.00 and are using $ 5,918

in six options positions, $ 66,454 in the17 stock positions, a total of $ 72,373 with $ 27,627 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 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: This is a Sample Issue Only!

 TO GET OUR TRADE ALERTS BY TEXT MESSAGE AND

THE COMPLETE VIP MEMBERS ONLY

MARKET STRATEGIES NEWSLETTER ISSUES

USE THE SUBSCRIBE OFFER BUTTON ON YOUR RIGHT

 

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

 

This Weeks’ Market Strategies

Economic Numbers and Media Data

 

Monday Caterpillar reports before the open

( 1.38 vs 2.37 )

 

10:00 hrs Existing Home Sales

( 5.01 vs 4.98 )

 

Crane reports (1.02 vs .88) Netflix

Tuesday Air Products reports before the open

( 1.37 vs 1.31 )

 

US Airways reports ( 0.26 vs -0.13 )

DuPont ( 1.52 vs 1.61 )

UTX and TRV

 

09:00 hrs FHFA Housing Price Index

( NA vs 0.6% )

 

10:00 hrs New Home Sales Mar

( 415K vs 411K )

 

Apple Reports earnings ( ? vs 12.30 )

Top Line ( $ 42.4 vs $ 39.2 )

Norfolk Southern NSC reports after close

( 1.17 vs 1.23 )

Yum ( .60 vs .76 )

Wednesday 08:30 hrs Durable Goods Mar

( -3.1% vs 5.6% )

 

DG ex-Trans ( 00% vs -0.7% )

 

Crude Inventories 04/20

( NA vs -1.233Mln bbls )

Thursday Exxon Mobil reports

 

08:30 hrs Initial Claims 04/13

( 351K vs 352K )

Continuing Claims 04/13

( 3060K vs 3068K )

 

10:30 hrs Natural Gas Inventories

4/20 ( NA vs 31 bcf )

Starbucks

( SBUX  earnings exp +21% top line + 12% )

Friday Chevron reports

 

08:30 hrs GDP-adv 1st Qtr

( 2.8% vs 0.4% )

Implicit Price Deflator

( 1.6% vs 1.0% )

 

09:55 hrs Michigan Sentiment Apr

( 72.4 vs 72.3 )

Market Strategies Trading Fundamentals

All stock markets were weak last week as earnings were not as strong as expected while top line revenues were mostly meager, either weak or barely nudging above expectations at best. The Russell Small Caps were down the most, 3.22%, followed by Nasdaq, off 2.70%.

Only two Dow Industrial Groups were higher: Telecommunications, up 1.09% and Utilities + 0.81%.

Technology was the worst performer, off 4.36%. Apple, the largest participant led the decline down 8.7%. Oil and Gas lost 4.11% and Industrials 3.47%. The Transportation Index which failed to make a new high in contrast to both the Dow and S&P only needs to close 20 points higher to catapult above modest  resistance.

Bonds had a real opportunity to take off but faltered at the 200 day M.A.

 

Market Strategies Economic Data

Economic reports last week were somewhat better than the week before.

Industrial production for March rose 0.4% and Capacity Utilization improved to 78.5%.

Housing Starts for March rose 7%, cracked the million mark 1,036K, the best since March ’08 when the market was cascading lower. However, multi-family construction made up the entire March gain and will likely be down considerably next month. Single Family Starts fell from 650,000 in February to 619,000 in March, the first decline 14720-14760 since November.

Building Permits declined 2.9% in March to 902,000 from 946,000 in February.

 

Market Strategies Technical Information

Support Levels S&P 500    1533 – 1537                    

Resistance S&P 500              1578 – 1587

 

Support Levels DOW         14,385 – 14,445                

Resistance DOW                   14,570 – 14,630

 

Support Levels QQQ           66.80 – 67.30                  

Resistance QQQ                     68.20

                  

Support Levels Nasdaq      3170

Resistance Nasdaq             3268

 

Market Strategies Cycles

The Stock Trader’s Almanac issued a sell signal with a negative crossing of the MACD Index.

They believe the bull market has ended and the bear run has begun. IBM has accurately set the mood for the street most of the time ( almost 75% ) with its earnings reports, this time very negative.  In the event they are right, volatility will need to pick up and the markets will be choppy if a top is in.  Since mid-November of last year the market has enjoyed a solid run that has provided sizable gains. The trend remains higher until the constructive patterns are broken.

The bulk of the gains have been made by the DJ Transportation Index up 13.7% for the year.

The DJIA, is up 11% year-to-date. Broader indices like S&P 500 and NASDAQ have lagged, gaining 9.0% and 6.2% at their respective closes this past Friday. The Russell 2000 is up 7.4%.

Apple ( $ AAPL: $ 390.53 ) is off 158.50 points or 28.9% this year making a big problem for both the Nasdaq and S&P indexes being an extremely high cap stock with heavy influence. The stock continues to appear technically weak, but the fundamentals are strong. Apple is 2x cheaper than Microsoft and 4x cheaper than Google. At this valuation the market is implying that net income will revert back to 2011 levels.

According to the Stock Trader’s Almanac, April is the best DJIA month since 1950, second best for S&P and fourth best for NASDAQ (since 1971). In post-election years April remains a strong month. Its DJIA’s second best month, gaining 1.9% on average, fourth best for S&P 500 and third best for NASDAQ. April is also the last month of the “Best Six Months.”  Apple could surprise positively which would ratify the April trend.

 

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

USE THE SUBSCRIBE OFFER BUTTON ON YOUR RIGHT

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. 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 three small penny stocks we represent for a total outlay of $ 9,725 is well worth the risk.

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

Or

Charles Moskowitz (781) 826-8882

 

Princeton Research

3887 Pacific Street, Las Vegas, Nevada 89121

 

Phone: (702) 650-3000

 

Fax: (702) 697-8944

 

mike@princetonresearch.com

Investment Strategies

Where to Invest Now

Investment Strategies