Market Investing Strategies News – December 2, 2013

December 2, 2013

Market Strategies Newsletter

Sample Issue

Stock Market Investing Strategies  

 

Covering High Return Balanced Investing Strategies To

Make Money In Up Or Down Markets

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

Read the December 2, 2013 Market Strategies Newsletter in pdf format: CLICK HERE

Market Strategies Stock Options Trading

$10,000 Account

There are five open positions:

CSCO Dec $24 Calls

FDO Dec $72.50 Calls

NBG Jan 2015, $7 Calls

WTW Dec $32.50 Calls and

XCO December $5 Calls

 

Funds in Use $ 2,890

Market Strategies Stock Options Trading

$10,000 Account

Traders Comments

We had a loss of $580

on the only closed out trade to occur in this account during

a holiday shortened week.

 

YTD performance is $30,269

Over 300%

 

Unfortunately, we missed the market on AAPL with the $530 calls by $ .20 from our buy price of $5.00 OB to close @ $27.70.  We use these limit orders to manage risk and will continue to do so.

The markets continue to “melt higher” with small but steady gains in the all important financials.  The steepening of the yield curve set the stage for a better profit profile going forward.  One of the main things that you need to understand about this group is that with all the new regulations and increased capital requirements in place, they will not be able to get the outsized returns from the last cycle.  While continued buybacks will shrink the share count, it will be quite a while (if ever) before we can duplicate the earnings numbers that gave us a $40 BAC or an adjusted (1:10 reverse split) $35-40 Citi …. Not that there is anything wrong with a 300% gain on either from the 2008 lows.

 

I will continue to look for trades in stocks that are either near support and oversold, or just undiscovered, but they are few and far between.  I am also looking for “January Effect” stocks, but our favorite from the last 3 years, BAC “B” wts have just had a rally from $ .68 to $ .92 in the last two weeks so I’m guessing we’ll lose that candidate.

….CAM

 

NOTE: This is a Sample Issue Only!

 

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MARKET STRATEGIES NEWSLETTER ISSUES

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Market Strategies Stock Options Trading Chart

$10,000 Account

 

New Trades

 

No New Trades Yet. They will be Texted.

 

 

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.

 

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 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: Watch for Texting

 

We lost $ 1160.00 in closed out positions last week

decreasing our profits for the year to a hypothetical

$ 61,803

 

Over 61% Year To Date Returns

 

not counting open positions losses of about $ 12,355.

 

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

 

We have five long options positions:

The Stock table has the following 19 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 $ 5,780 in five options positions and

$ 68,802 in 19 stock positions

totaling $ 75,542 with
$ 24,458 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

10:00 hrs Construction Spending Sep

( 0.4% vs 0.6% )

Construction Spending Oct ( 0.3% vs NA )

Tuesday14:00 hrs Auto Sales Nov ( NA vs 5.4Mln Units )

Truck Sales ( NA vs 6.5 Mln Units )Wednesday07:00 hrs MBA Mortgage Index 11/23 ( NA vs -0.3% )

 

08:15 hrs ADP Employment Change Nov  ( 160K vs 130K )

 

08:30 hrs Trade Balance Oct ( -$40.5B vs-$41.8B )

 

10:00 hrs New Home Sales Sep ( 432K vs 421K )

 

10:00 hrs New Home Sales Oct ( 420K vs NA )

 

10:00 hrs ISM Services Nov ( 55.0 vs 55.4 )

 

10:30 hrs Crude Inventories 11/30 ( NA vs 2.953Mln Bbls )

 

14:00 hrs Fed’s Beige Book Dec ( NA )

Thursday07:30 hrs Challenger Job Cuts Nov ( NA vs -4.2% )

 

08:30 hrs Initial Unemployment Claims 11/30 ( 330K vs 316K )

Continuing Claims 11/23 ( 2850K vs 2776K )

 

08:30 hrs GDP-2^nd Estimate 3^rd Qtr ( 3.0% vs 2.8% )

GDP Deflator ( 1.9% vs Same )

 

10:00 hrs Factory Orders Oct ( -1.0% vs +1.7% )

 

10:30 hrs Natural Gas Inventories 11/30 ( NA vs -13bcf )

Friday08:30 hrs Nonfarm Payrolls Nov

( 188K vs 204K )

Private Payrolls ( 200K vs 212K )

Unemployment Rate Nov ( 7.2% vs Same )

Hourly Earnings Nov ( 0.2% vs 0.1% )

Average Workweek ( 34.5 vs 34.4 )

Personal Income Oct ( 0.3% vs 0.5% )

Personal Spending ( 0.3% vs 0.2% )

PCE Prices CORE ( 0.1% vs Same )

 

09:55 hrs Michigan Sentiment Dec

( 75.1 vs Same )

 

15:00 hrs Consumer Credit Oct

( $ 15.8B vs $ 13.7B )

 

 

Market Strategies Trading Fundamentals

The Dow rose 22 points or 0.1% to 16,086.41 for the eighth consecutive week. Technology was the strongest group up 1.83% and the Nasdaq Composite tech friendly Index closed up 68 points or 1.7% to 4,059.89. Consumer Services was up 0.93%; Industrials 0.06% and Health Care just 0.03% rounding out the winners. There were six losing Dow Groups led by Oil and Gas down 2.1% and utilities 1.58%. Basic Materials fell 0.77%; Telecommunications 0.57%; Consumer Goods 0.22% and Financials 0.02%.

 

The Dow had been up 77 points in the morning Friday but gave it all back by the close. The Russell 2000 Index fared well with a weekly gain of 1.59%. The DJ 20 Transportation Index made a new all-time high at 7,235.69, but gave some back Friday to close at 7,235.69 down on the day 19 points from Wednesday’s record high close.

 

Market Strategies Economic Data

Consumer Confidence plummeted to 70.4 as concerns about the economy following the government shutdown weighed heavily on the minds of consumers. Consumer Confidence is the year 2000 reached 180 and even in 2006 on the way down it got to 140. It is struggling to get a foothold while the Fed is cooperating. Retail Sales were buoyant over the Thanksgiving holidays and expected to have been up 3.6% better the last year on Black Friday.

                                           

Market Strategies Technical Information

Support Levels S&P 500    1778

Resistance S&P 500           1818

 

Support Levels DOW          15,734

Resistance DOW                 16,190

 

Support Levels QQQ           82.36                  

Resistance QQQ                  84.45

                  

Support Levels Nasdaq      3904

Resistance Nasdaq             4077

                                       

Market Strategies Cycles

Stocks moved seasonally making thanksgiving week good for the bulls. The next seasonal is the Santa Claus rally in three weeks. A good dip early in December is often a buy to hold until the first week of January. Tax Loss selling is expected to weigh on losing stocks only to be a buy toward month’s end for the January Effect.

Gold prices tend to move up prior to the holidays, and the trend has worked especially well over the last 13 years. Seasonally speaking, it is best for traders to go long on or about November 19 and
hold until about December 4. Over the last 38 years, this trade has worked 21 times for a success rate of 55.3% .The cumulative profit tallies up to $27,400. Up until last year this trade had been profitable for 12 straight years (2000-2011). The longer-term history of this trade is not as good, nonetheless profitable. Gold has had one of its toughest years this year, but this is a short-term trade and gold has become oversold and appears poised for a bounce. ( Stock Trader’s Almanac )

 

Disclaimer – 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

 

Phone: (702) 650-3000

 

Fax: (702) 697-8944