July 14, 2014
Market Strategies Newsletter
Sample Issue
Where To Invest $10000
Covering High Return Balanced Stock Market
Investing Strategies To
Make Money
In Up Or Down Markets
Over 284% Gains In 2013
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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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What Should I Invest In
How To Invest 10000
Market Strategies
$10,000 Trading Account
Traders Comments
There are six open positions:
BA August 130 Calls
IWM Aug 113 Puts
KIRK July 20 Calls
OSIR July 16 Calls
UNG August 24 Calls and
XLF Aug 22 Calls
Funds in Use $ 3,576
Gain for the week $ 670
TTD Gain $ 2,075
Over 20% Returns
SURPRISE FROM PORTUGAL !!!
We closed Week 27 with a gain of $670 to bring the YTD gain to $2,075, with the biggest funds in use number of the year at $3,576.
Well, as I stated in this space last week, it’s not the knowns, but rather the unknowns that hurt us.
I know of nobody who was looking for Portugal, with its $77 Billion market cap would cause such a stir. Also mentioned was the comparison to the year-end new high close and decline as if the flick of a switch.
However, a look at the daily chart of the S&P500 for the month of June and the first days of July we see 3 sharp 4-6 day declines. While it may be topping action, this is also typical action in a bull market that has extended itself beyond all expectations.
About a month ago, Mike King pointed out to me that the 13-day moving average has worked incredibly well in this market. Breaks above have caused strong moves to both the up and downside. If you’ve followed me for a while you’d know that I keep away from buying breakouts in favor of buying support. This is the way I try to manage risk. What this means is that I am often trying to buy stocks that have already been declining to meet that 13 day MA.
I mention this because on the gap-down S&P 20 pt. decline on Thursday we very briefly pierced the 13 day and then closed only $2 from the high and $12 from the low.
Friday we tested the 13 day and were up on the day. Great support around 1944 and a downtrend line that can easily be broken.
Simply following the pattern that the market has given us, this would mean that we should be looking for stocks at support that are oversold. On Friday afternoon I added several trades. We bought some out of the money IWM (Russell) puts for downside protection. From the pattern mentioned above we also bought some new BA calls.
A look at the chart makes it clear; a decline from $138 (on which we had several 100% trades) to the support around $125, an oversold condition, and the stochastic running along the lowest values matching the lows in February, March and April. On a short-term basis we can test $131-133 even if we don’t recover to new highs.
I also believe that the talking head crowd is almost all negative now…remember, “everybody is never right.”
…CAM
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Investing Strategies
Market Strategies $10,000 Trading Account
Trade Table
New Trades: No New Trades
DATE | Trades | PRICE | COST | PROCEEDS | RESULTS |
07/11 | Bought 3 IWM August 113 Puts | 1.72 | 516 | ||
07/11 | Bought 3 BA August 130 Calls | 2.22 | 666 | ||
07/11 | Sold 2 AMZN July 335 Calls 1 on 100% up Rule
One sold Later Same Day higher level |
8.00
10.80 |
800
1000 |
400 Gain
680 Gain |
|
07/10 | Bought 8 XLF August 22 Calls | 0.78 | 624 | ||
07/09 | Bought 10 UNG August 24 Calls | 0.78 | 780 | ||
07/08 | Sold 4 BA July 130 Calls
( 50% Loss Rule ) |
0.64 | 256 | 256 Loss | |
07/08 | Sold 2 CLDX July 16 Calls | 0.75 | 150 | 150 Loss | |
07/07 | Bought 2 AMZN July 335 Calls | 4.00 | 800 | ||
07/01 | Bought 6 OSIR July 16 Calls | 0.90 | 540 | ||
06/30 | Bought 6 TLT July 113 Calls | 0.74 | 444 | ||
06/26 | Bought 4 BA July 130 Calls | 1.28 | 512 | ||
06/19 | Bought 2 CLDX
( remaining 2 lots sold on 50% Loss Rule) Other 2 were sold 100% up Rule ) |
1.50 | 300 | ||
06/06 | Bought 10 KIRK July 20 Calls | 0.45 | 450 |
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.
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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Good Stocks To Invest In
MARKET LABORATORY – WEEKLY CHANGES
Prices are copied from Barron’s Weekly and Yahoo Finance and may be incorrect
Dow
16,943.81 -0.73% |
Nasdaq
4415.49 -70.43 |
S&P 500
1967.57 -17.89 -0.90% |
Transportation
8254.31 -40.43 -0.49% |
Russell 2000
1159.93 +1.57% |
Nasdaq 100
3904.58 -18.43 -0.47% |
Gold (spot)
1337.00 +16.60 +1.3% |
Silver (July)
2146.1 +32.4 +1.5% |
Crude
100.83 -3.23 -3.1% |
Heating Oil
287.34 -7.02 -2.4% |
Unleaded Gas
2.9085 -0.1113 -3.7% |
Natural Gas
4.136 -0.259 -5.9% |
VIX
11.26 +0.41 +3.9% |
Put/Call Ratios
S&P 100 199/100’s +33/100’s |
Put/Call Ratios
CBOE Equity 52/100’s -1/100’s
|
Bonds
137-12 +2-12 3.35% -0.12% |
10 Yr. Note
125-07 +1-00 2.53% -10.9% |
Copper
326.90 -1.05 -0.3% |
CRB Inflation
Index 297.07 –9.67 -3.2% |
B9arron’s Confidence
70.8% -1.0% |
S&P100
871.90 -6.24 -0.71% |
5 Yr. Note
119-112 + 158 1 65% -.0.20 |
Dollar
80.19 -0.01 flat |
DJ Utilities
559.43 +5.16 +0.93% |
AAII
Confidence Index |
Bullish
37.6% -0.9% |
Bearish
28.7% +6.3% |
Neutral
33.7% -5.4%
|
M1 Money Supply
+12.16% June 30th |
M-2 Money
Supply +6.60% June 30th |
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.
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New Stock Recommendations $100,000 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) | |||
BCRH 300 | 19.45 | 07/10 | ||||||
MVIS 2000 | 2.02 | 06/30 | 1.87sco | |||||
FCX 150 | 34.25 | 06/10 | 7/11 34.25 | $ 660 | ||||
SPXU 100 | 53.05 | 05/22 | 7/11 46.87 | ( $ 618 ) | ||||
NBG 300 | 2.95 | 05/19 | ||||||
GLXZ 5000 | 0.46 | 05/12 | ||||||
XRGYF 5000* | 0.407 | 03/14 | ||||||
OSIR 300 | 15.94 | 02/13 | ||||||
GRPN 500 | 10.40 | 01/28 | ||||||
RPTP 400 | 15.37 | 01/16 | ||||||
AA 300
Sold 200 |
10.06 | 01/10 | 6/26 14.87 | $ 854 | ||||
WLT 300 | 16.22 | 12/23 | ||||||
GSG 150 | 32.64 | 12/23 | 32.21 sco | |||||
NBG 300 | 4.08 | 8/12 | ||||||
TEXQY* 200 | 6.56 | 7/11 | ||||||
NBG 300 | 12.10 | 5/23 | ||||||
HL 1000 | 4.10 | 3/04 | 2.64 sco | |||||
AAPL 35 | 76.85 | 11/08/12 | ||||||
REPR* 5000 | 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 Market Strategies Newsletter issues available in the VIP Subscribers Members Area.
Subscriber Members Only
TEXTING SERVICE TO RECEIVE ALL UPDATES.
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
No new Trades
All trades will be Texted
There were two closed out stock positions last week:
SPXU and FCX making a small net gain of $ 42.
We had a gain in the options account of $ 1,382
bringing the year to-date realized gains of $ 13,166.
For the full year 2013 we had realized gains of $ 53,556.
We have open position losses now of about $8,551 some of which are in both coal stocks and
small cap bio-med stocks held over from last year.
We also have not counted dividends received on stocks like Apple, Nordic American (NAT) and JP Morgan.
We have six long options positions:
BA August 130 Calls; KIRK July 20 Calls; IWM Aug 113 Puts;
OSIR July 16 Calls; UNG August 24 Calls and XLF August 22 Calls
The Stock table has the following 16 positions:
AA, AAPL, GRPN, GLXZ; GSG, HL, MVIS, NBG (3),
OSIR, REPR, RPTP, TEXQY, WLT, XRGYF
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
$ 7,152 in six options positions and
$ 55,791 in 16 stock positions totaling
$ 62,943 with
$ 37,057 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
Option | Cost | Date | Sold | Date | Profit/(Loss) |
BA Aug 130
6 lots |
Calls
2.22 |
07/11/14 | |||
IWM Aug 130
6 lots |
Puts
1.72 |
07/11/14 | |||
XLF August 22
16 lots |
Calls
0.78 |
07/10/14 | |||
UNG August 24
20 lots |
Calls
0.78 |
07/09/14 | |||
AMZN July 335
4 lots |
Calls
4.00 |
07/07/14 | 8.00 sold 2 lots on 100% up Rule 10.80 Sold 2 lots later Same Day | 07/11/14
07/11/14 |
$ 800.00
$ 1360
|
OSIR July 16
12 lots |
Calls
0.90 |
07/01/14 | . | ||
BA July 130
8 lots |
Calls
1.28 |
06/26/14 | 0.64 Sold 8 on 50% Lo0ss Rule | 07/08/14 | ( $ 512.00 ) |
CLDX July 16 4 Lots |
Calls 1.50 |
06/19/14 | 2.35
( sold 4 Leaves 4 lots 4 lots stopped out 50% Loss Rule |
07/02/14
07/08/14 |
$ 340.00
( $ 300.00 ) |
KIRK July 20
20 lots |
Calls 0.45 | 06/06/14 |
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’ Economic Numbers and Media Data
Monday | Before the Open Citigroup reports Earnings ( $ 1.15 consensus )
ECB president Mario Draghi ts 1.25 ) is expected above |
Tuesday | Goldman Sachs ( 3.07 vs 3.70 )
JB Hunt ( 0.79 vs 0.73 ) JNJ ( !.54 vs 1.48 )
08:30 hrs Retail Sales June (, 0.7% vs 0.3% ) Ex Auto ( 0.6% vs 0.1% )
08:30 hrs Empire Manufacturing July ( 13.2 vs 19.3 )
08:30 hrs Export Prices ex-ag June ( NA vs 0.1% ) Import prices ex-oil ( NA vs 0.0% )
10:00 hrs Business Inventories May ( 0.6% vs 0.6% )
After the close Intel 0.53 vs 0.39 1B top line surging
|
Wednesday | Before the open:
Bank of America BAC 0.29 vs 0.32 Black Rock BLK 4.45 vs 4.15 MSC Industrial MSM ( 1.06 vs 1.05 )
07:00 hrs MBA Mortgage Index 07/12 ( NA vs +1.9% )
08:30 hrs PPI June ( 0.2% vs 0.2% ) CORE PPI ( 0.2% vs -0.1% )
09:00 hrs TIC Flows Long Term May ( NA vs -$24.2Bln )
09:15 hrs Industrial Production June ( 0.4% vs 0.6% ) Capacity Utilization ( 79.2% vs 79.1% )
10:30 hrs Crude Inventories 07/12 ( NA vs -2.370 Mln Bbls )
14:00 hrs Fed’s Beige Book for July
eBay 0.69 vs 0.63 United Rentals URI 1.51 vs 1.12 Yum 0.72 vs 0.56 Sad Disk SNDK 1.39 vs 1.21 Las Vegas Sands 0.90 vs 0.72
|
Thursday | Baker Hughes 0.90 vs 0.61 )
Baxter 1.22 vs 1.16 Canadian Pacific 2.10 vs 1.43 Family Dollar FDO ( 0.89 vs 1.05 ) Progressive PGR ( 0.48 vs 0.54 )
08:30 hrs Initial Claims 07/12 ( 311K vs 304K )
08:30 hrs Continuing Claims 07/05 ( 2563K vs 2584K ) Building Permits ( 1037 vs 991 )
10:00 hrs Philadelphia Fed July ( 12.5 vs 17.8 )
10:30 hrs Natural Gas Inventories 07/12 ( NA vs 93 bcf )
Athena Health ATHN 0.22 vs -0.08 Cap One 1.82 vs 1.87 Google 6.25 vs 9.56 IBM 4.31 vs 3.91 RMBS 0.15 vs 0.06 Schlumberger 1.36 vs 1.15 Stryker 1.09 vs 1.00
|
Friday | Fastenal FAST ) 0.44 vs 0.41 )
Wells Fargo WFC ( 1.01 vs 0.98 )
09:55 hrs Michigan Sentiment July ( 84.0 vs 82.5 )
10:00 hrs Leading Economic Indicators June ( 0.5% vs 0.5% ) |
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Market Strategies Fundamentals
Treasuries saw solid gains this week, supported by weakness in equities, a dovish Fed, and fears over the health of the Portuguese banking system. Traders returned from their 4th of July holiday weekend to two days of selling for equities, which provided a boost for Treasuries early on in the week.
Wednesday’s dovish FOMC minutes provided a small mid-week recovery as the Committee reiterated they were in no rush to any further tightening of the money supply.
The minutes from the latest Federal Reserve’s latest Federal Open Market Committee meeting, the June meeting, were released last week, and for the first time indicated a potential end to the Fed’s monthly asset purchase program, or Quantitative Easing (QE). The Fed has been reducing QE by $10 billion at each meeting since December 2013, and the latest minutes indicated that if the economy continues as the FOMC’s members expect, QE could end with a single $15 billion reduction at its October meeting.
Janet Yellen further stated, “ As was indicated in our policy statement, the Committee decided to make another modest reduction in the pace of its purchases of longer-term securities.
The Committee maintained its forward guidance regarding the federal funds rate target and reaffirmed its view that a highly accommodative stance of monetary policy remains appropriate. The Committee continues to anticipate, based on its assessment of these factors, that it likely will be appropriate to maintain the current target range for the federal funds rate for a considerable time after the asset purchase program ends, especially if projected inflation continues to run below the Committee’s 2 percent longer-run goal, and provided that longer-term inflation expectations remain well anchored.” Let me reiterate, however, that the Committee’s expectation for the path of the federal funds rate target is contingent on the economic outlook.
If the economy proves to be stronger than anticipated by the Committee, resulting in a more rapid convergence of employment and inflation to the FOMC’s objectives, then increases in the federal funds rate target are likely to occur sooner and to be more rapid than currently envisaged.
Conversely, if economic performance disappoints, resulting in larger and more persistent deviations from the Committee’s objectives, then increases in the federal funds rate target are likely to take place later and to be more gradual.”
Following the minutes release, Joe Brusuelas and Josh Wright, economists at Bloomberg LP, said, “Of special note, some on the committee observed that results from the primary dealer survey suggested that low realized volatility, generally favorable economic news and less uncertainty for the path of monetary policy might have generated complacency on the part of market participants about potential risks. Given that one purpose of the Fed’s quantitative easing policy is to encourage risk taking in order to suppress yields at the longer end of the curve, investors will probably now look closely at the Fed’s intentions regarding macro-prudential measures going forward.”
It’s Earnings season and volatility is increasing. Shares of Gigamon ( GIMO: $ 12.21 ) -7.38 off 38% following a lowering of earnings and revenue projections. It was the second time in two consecutive quarters that GIMO revised down its revenue and earnings outlook.
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Market Strategies Economic Data
All this is coming at a time when spending is very modest despite expanding credit card usage. Consumer Credit was up to $ 19.6B for May as reported last Tuesday, but might have fallen off some for June ( which we won’t see until August. Retail Sales continue surprisingly weak and there is no frigid weather to blame.
Until August. Consumer Credit rose about $ 20 billion each month this year. Inflation numbers have weakened substantially in the past month. On June 23rd the CRB Inflation Index was 312.83. This week it is just 297.07 a drop of 8.2% in just 3 weeks. Commodity prices including Oil and groceries have fallen 5 – 8 %.
The Retail Sales S&P ETF ( XRT: 85.81 ) down from 88.85 – 3.04 or 3.4%, was down four of the five trading days despite Wal-Mart ( WMT: $ 76.82 ) stores America’s largest retail chain having a good week, up from 75.75 to 76.82, gain of 1.4%. The Container Store Group ( TCS: $ 24.25 ) off 11% for the week. Kip Tindell, CEO of The Container Store, gave an ominous warnings about the state of retail activity. “Consistent with so many of our fellow retailer, we are experiencing a retail ‘funk,'” Tindell said. Shares of The Container Store fell 9%. as the company also reported same store sales that fell 0.8% and reported a loss of $0.07 per share.
Kroger has been reporting impressive revenue growth for years even as Wal-Mart has struggled. Kroger has even reported revenue gains in the dismal retail picture of the past few months. Kroger reported TTM Revenue figures of $98.33 billion in January 2014 and $101.29 billion on April 30, 2014. That’s an increase in revenue of $2.96 billion, or nearly $3 billion in just three months; not bad for “just a grocery store.”
The revenue gains at Kroger are actually similar to those at Amazon.com in a comparable period. Amazon reported a TTM revenue figure of $74.45 billion in December 2013 and $78.12 billion in March 2014, an increase of $3.67 billion. Kroger’s revenue growth was nearly as great as Amazon’s.
During the same period, Walmart’s revenue growth was positively anemic. Wal-Mart reported a TTM revenue figure of $476.41 billion in January 2014 and $477.3 billion in April 2014. That’s a gain of only around $1 billion.
Consumer credit increased by $19.6 bln in May after increasing a downwardly revised $26.1 bln (from $21.8 bln) in April. The Briefing.com consensus expected consumer credit to increase by $16.1 bln.Consumer credit typically goes through large monthly revisions, but any future revision is unlikely to alter the current trend of double-digit credit growth. .Revolving credit increased by $1.8 bln, from $870.4 bln in April to $872.2 bln in May.
Nonrevolving credit increased to $2,322.4 bln in May from $2,304.6 bln in April, a gain of $17.8 bln.
Consumer credit has increased by nearly $20 bln per month in 2014.
Category MAY APR MAR FEB JAN
Total Credit $19.6B $26.1B $20.2B $15.4B $15.9B
Revolving $1.8B $8.8B $2.2B -$0.9B $2.6B
Nonrevolving $17.8B $17.3B $17.3B $16.4B $13
Market Strategies Technical Information
Support Levels S&P 500 1944-1966
Resistance S&P 500 1985
Support Levels DOW 16,770
Resistance DOW 17,125
Support Levels QQQ 94.20
Resistance QQQ 96.50
Support Levels NASDAQ 4405
Resistance NASDAQ 4620
Market Strategies Cycles
As featured in the Commodity Trader’s Almanac 2013, active traders looking for a high probability play should pay heed to this potential market move. Selling the September S&P 500 futures contract on or about July 15 and holding until on or about July 24 has a 62.5% success rate registering 20 wins against 12 losses in the last 32 years. The best win was $19,150 in 2002, and the worst loss was in 2009, posting a $12,650 bereavement. This trade had been successful in 13 of 15 years from 1990 to 2004. However since then it has nearly the opposite record, posting losses in seven of the last nine years. This year the setup is compelling as the market has enjoyed a brisk rally since mid-April and appears to be running on fumes.
Dr Jan Vandersande writes, “ All momentum oscillators are negative (bearish) but were slightly oversold on Thursday. So the rally today was expected but was not impressive. The market could rally a bit more but the trend is down. This coming Friday is option expiration which usually has a bullish influence but I do not expect much upside. Sentiment indicators are still much too bullish (bearish). Cycles predict a low in early August (plus or minus a week). So I am using any additional upside to buy more puts.
I am buying puts on the XRT, XLY and SMH as well as more puts on the DIA and QQQ. I do not plan to buy stocks until the cycle low is in (for a rally into October/November) or when the market is oversold.
Today I bought the FAZ (double inverse Financial stocks ETF). Bank stocks report next week and I don’t think results will be very good. If bank stocks go down, the FAZ will go up.”
Healthcare products have produced returns of 10.7%, 9.6% and 9.6% over the last 15, 10, and 5 years respectively from early August to February. iShares US Medical Devices (IHI) is the top idea to trade this seasonality. Use a buy limit of $98.70 and a stop loss of $88.83 once a position has been entered. The auto sell is $120.19. IHI’s technical picture is that of an ETF that has enjoyed a solid run recently. Its stochastic, relative strength and MACD are stretched towards overbought (less so following today’s trading). A good entry point for a new long position would be right around IHI’s 50-day moving average (magenta solid line).
Cleveland BioLabs* ( Nasdaq: CBLI ) trading between $ 0.47 and $ 0.50. CBLI got top rankings on Google last Tuesday morning. CBLI is one of the few bio-med stocks that did not participate in the huge rally of Biotechnology/ Pharmaceuticals and is completely overlooked. They are very advanced in cancer research which they call Entolimod. They received contract from the Russian Ministry of Industry and Trade to support oncology development,. To date they have received about $ 23 Mln in both development grants and contracts awarded.
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Gold and silver funds took flight, claiming eight of ten spots on June’s Winners List. Global X Gold Explorers (GLDX) led the charge higher, up 31.4% in June. Silver was not far behind, Global X Silver Miners (SIL) surged 24.5%. SPDR Biotech (XBI) and db-X In-Target Date (TDX) rounded out the months winners. TDX’s gain was primarily due to its extremely thin trading volume, a fluke that is not likely to repeat.
Midterm-year July rankings are something of a mixed bag, ranking #5 for DJIA and S&P 500, averaging gains of 1.2% and 0.8% respectively (since 1950); while NASDAQ (since 1974) and Russell 2000 (since 1982) midterm Julys rank #11 and #12. NASDAQ has only advanced in three of the last ten midterm Julys with an average loss of 2.4%. Russell 2000 has advanced only twice in its last eight with an average decline of 4.3%.
But there are plenty of other ways to slice and dice ownership of this big-cap index. One of the most popular is the Rydex S&P Equal Weighted Index (RSP). Here, you abandon the idea of the S&P as a market-cap-weighted index (the biggest stocks get the biggest weighting) and instead all 500 stocks have the same weighting.
What this means is that you get proportionally greater exposure to the more “mid-cap” names in the S&P 500, since every stock is assigned the same weighting (0.2 percent of the fund). So the biggest stock by market cap, Apple (AAPL), with a $458 billion market cap, would have the same weight as, say, Union Pacific, with a $70 billion market cap. There’s also the old standby of investing in value or growth. The iShares S&P 500 Growth Index (IVW) invests in the faster-growing half of the S&P 500, while the S&P 500 Value Index (IVE) invests in the slower-growing half.
You might think that companies are defined as growth companies if they grow their earnings faster than their value counterparts, but it’s a little more complicated than that. Several different metrics are used, including price momentum, earnings per share, and sales per share, as well as price to book, price to sales, and price to earnings; S&P then ranks each stock by the ratio of its growth score to its value score.
There’s an opportunity to invest in value or growth. The iShares S&P 500 Growth Index (IVW) invests in the faster-growing half of the S&P 500, while the S&P 500 Value Index (IVE) invests in the slower-growing half.
You might think that companies are defined as growth companies if they grow their earnings faster than their value counterparts, but it’s a little more complicated than that. Several different metrics are used, including price momentum, earnings per share, and sales per share, as well as price to book, price to sales, and price to earnings; S&P then ranks each stock by the ratio of its growth score to its value score.
July Sector Seasonality (Stock Trader’s Almanac)
“One sector begins its favorable seasonality in the month of July, Gold & Silver based upon the Philadelphia Gold and Silver index. The Transport sector begins its seasonally weak period in July. As of this writing, there is still no Bear/Short ETF available that directly focuses on the Transport sector to take advantage of its seasonal weakness. No official trade will be made in the ETF portfolio. However, option traders could consider put options on iShares DJ Transportation (IYT) as it has a reasonably deep chain.
On the other hand, Gold & Silver offer numerous possibilities to trade. Because gold, silver and the companies that mine and explore for the metals have been significantly beaten down over the past month and are within striking distance of their respective 52-week lows, a diversified approach will be taken. As seasonal gold and silver strength begins, we will look to own both the physical metals and the miners at attractive prices. Global X Silver Miners (SIL), iShares Silver Trust (SLV), Market Vectors Gold Miners (GDX), SPDR Gold (GLD) can all be bought on dips below their respective buy limits (listed below in the ETF Portfolio). Should the buy limit for SLV be reached, we will simultaneously add SLV to the portfolio and sell ProShares UltraShort Silver (ZSL).
SIL top five holdings include: Silver Wheaton, Fresnillo, Primero Mining, Fortuna Silver Mines and Industrias Penoles. GDX top five holdings include: Goldcorp, Barrick Gold, Newmont Mining, Silver Wheaton and Newcrest Mining. SLV and GLD are physically backed ETFs that hold the actual metal in storage. GDX, GLD and SLV have billions of dollars in assets and trade millions of shares per day on average. SIL however, has assets of $206.7 million and daily trading volume around 200,000 shares per day, substantially less, but still sufficient to trade.”
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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 Research has been paid $ 2,500 to write a report on Xinergy.
Princeton has been 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 was 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.
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