Options Trading Strategies
January 19, 2015
Market Strategies Newsletter
Sample Issue
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
Read the January 19, 2015 Options Trading Strategies Newsletter in .pdf format:
http://www.princetonresearch.com/1-19-2015-Market-Strategies.pdf
Stock Market Investing Strategies
Where To Invest In 2015 and
Options Trading Newsletter Covering:
Options Trading Strategies
How To Trade Options
Stock Options Trading Alerts
Best Stocks To Buy January 2015
Where to Invest in 2015
2015 Year To Date Profits $ 2,275
2014 Profits = $ 20,443
Over 204% Returns
$20,443 Profits for $10,000 Trading Account
By Following all trades in 2014 a
$10,000 account would be worth $30,443
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High Return Investments Trade Alerts
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Options Trading Strategies
Market Strategies
$10,000 Trading Account Traders Comments
We have five open long positions
GILD January 96 Calls
SWHC February 10 Calls
TBT February 43 Calls
USO Feb 20 Calls and
VLO Feb 47.50 Calls
Funds in Use $ 2828
Week 2 was impressive from the standpoint of the Options Only account’s return on equity.
We made $1,032 in profits on only $414 of funds in use.
This brings out YTD to $2,275 and funds in use has swollen to $2,828 as I have bought into
several positions that I feel are well overdue for rallies. NFLX was one of the best day trades
I’ve made in quite some time. As usual I thought I sold too soon as after selling on the 100% up rule and then the balance at $4.80, they closed at $6.50, but opened the next day down almost
50% and expired worthless on Friday.
GILD is a continuation play since we had to roll forward to the February options, and SWHC has a great base and with the World seemingly coming apart I feel like gun sales will continue on the rise.
But my positions in the USO, VLO (mentioned here last week) and TBT are markets that have had dramatic sell offs that I feel could present either bottoms or at least trade-able bounces.
Nobody likes oil, so USO seems like it will bounce from its waterfall decline from $38 to $17,
and the VLO is the most flexible refiner. The TBT is the leveraged 20 year T-Bond and
while everyone knows rates will move higher eventually, I feel like it may be sooner than later….
I am also watching the following stocks for possible trades;
OSIR, HUM, CNC, SLXP (WE OWN STOCK@ $100.80),
BMY, WU, OXY, UA, EW, CISG, MA, DKS, WFM, AAPL, HOG,
GEO, CREE, NYT, GALE, CSL, AKAM, CCOI, FORM
All of these have had meaningful pull backs and are oversold and near strong support. N
ew options trades will be issued via the new texting service.. If you need email service please
tell us and we will make other arrangements for you.
…CAM
For Free Where To Invest Your Money Now
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How To Trade Options
Market Strategies $10,000 Trading Account Trade Table
| DATE | TRADES | PRICE | COST | PROCEEDS | RESULTS |
| 01/16 | Sold 2 GILD January 96 Calls | 2.87 | 574 | 258 Gain | |
| 01/16 | Bought 10 SWHC February 10 Calls | 0.45 | 450 | ||
| 01/15 | Bought 4 VLO February 47.50 Calls | 1.36 | 544 | ||
| 01/14 | Bought 6 TBT February 43 Calls | 0.87 | 522 | ||
| 01/14 | Bought 2 GILD 100 Calls to cover short the written call done Dec 30th | 0.82 | 164 | 328 Gain | |
| 01/14 | Sold 10 NYT January 13 Calls | 0.10 | 100 | 100 Loss | |
| 01/13 | Bought 4 GILD February 105 Calls | 2.50 | 1000 | ||
| 01/13 | Sold 2 FB January 77.50 Calls ( 50% Loss Rule ) | 0.98 | 96 | 194 Loss | |
| 01/12 | Bought 8 USO February 20 Calls | 0.39 | 312 | ||
| 01/12 | Sold 2 NFLX January 320 Puts Later same day | 4.80 | 960 | 520 Gain | |
| 01/12 | Sold 1 NFLX January 320 Put ( 100% Profit Rule to sell Half ) | 4.40 | 440 | 220 Gain | |
| 01/12 | Bought 3 NFLX January 320 Puts | 2.20 | 660 | ||
| 01/05 | Bought 10 NYT January 13 Calls | 0.20 | 200 | ||
| 12/30 | Sold 2 GILD January 100 Calls | 2.46 | 496 Credit | ||
| 12/26 | Sold 2 GILD January 96 Calls | 3.00 | 600 | 284 Gain | |
| 12/22 | Bought 4 GILD January 96 Calls | 1.58 | 632 | ||
| 12/19 | Sold 2 FB January 77.50 Calls ( leaves 2 lots Open ) | 3.30 | 660 | 270 Gain | |
| 12/08 | Bought 4 FB January 77.50 Calls | 1.95 | 780 |
Remember, these trades are based on your participation in the
TEXTING SERVICE TO RECEIVE ALL UPDATES.
Previous closed out trades not listed here may be seen in previous market letters in the
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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Stock Options Trading Alerts
MARKET Laboratory – Weekly Changes
Prices are copied from Barron’s Weekly and Yahoo Finance and may be incorrect.
| Dow17,511.57
-225.80 -2.65% |
Nasdaq4634.38
-69.88 |
S&P 5002019.42
-25.39 -1.24% |
Transportation8764.12
-94.03 -1.06% |
Russell 20001176.65 -9.02 |
-0.76%
Nasdaq100 4142.14
-71.14
-1.69%
Gold (spot)1216.00
+60.90
+5.0%
Silver (July)1775.0
+133.1
+8.1%
Crude48.69
+0.33
+0.6%
Heating Oil166.56
-3.74
-2.2%
Unleaded Gas1.3588
+0.0356
+7.2%
Natural Gas3.127
+0.181
+6.1%
VIX20.95
+3.40
+19.4%
Put/Call RatiosS&P 100
82/100’s
-7/100’s
Put/Call RatiosCBOE Equity
70/100’s
+5/100’s
Bonds149-17 + 2-00
2.38% -0.17%
10 Yr. Note129-274+1-09 1.78% -0.17%
Copper261.70
-13.75
-5.0%
CRB InflationIndex
224.24
-1.33
-0.6%
Barron’s* Confidence76.3%
-2.9%
S&P100889.80
-12.33
-1.37%
5 Yr. Note120-254 +26
1.26% -0.18%
Dollar92.69
+0.77
+0.8%
DJ Utilities640.74
+17.13
+2.75%
AAIIConfidence
Index
Bullish41.0%
-10.7%
Bearish27.7%
+8.4%
Neutral31.3%
+2.3%
M1 Money Supply+9.13%
January 5th
M-2 MoneySupply
+6.15%
January 5th
* Component Change in the Confidence Index
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.
Market Strategies Technical Information
Support Levels S&P 500 1984-2008
Resistance S&P 500 2088
Support Levels DOW 17,165
Resistance DOW 17,620
Support Levels QQQ 98.50
Resistance QQQ 102.90
Support Levels NASDAQ 4515
Resistance NASDAQ 4678
Closes below support triggers sales/above highs buys
Best Stocks To Buy January 2015
$100,000 Trading Portfolio Stock Positions and
New Stock Recommendations
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/($ 920Loss) | |||
| ARRY 1000 | 4.78 | 01/05 | ||||||
| MOS 100 | 45.41 | 01/05 | ||||||
| BAC. Wts 5,000 lots | 0.7411 | 12/26 | ||||||
| SWHC 500 | 9.81 | 12/22 | ||||||
| BSBR 500 | 4.84 | 12/18 | 4.54 sco | |||||
| BCRH 300 | 17.50 | 12/18 | 17.35 sco | |||||
| SAN 600 | 8.40 | 12/16 | ||||||
| SLXP 50 | 100.80 | 11/25 | ||||||
| FB 100 | 74.18 | 11/24 | ||||||
| XCO 1200 | 3.10 | 11/28 | ||||||
| INO 500 | 9.92 | 11/17 | ||||||
| AA 500 | 14.21 | 10/16 | ||||||
| FCX 150 | 34.99 | 09/09 | ||||||
| NBG 300 | 2.95 | 05/19 | ||||||
| XRGYF 5000* | 0.407 | 03/14 | ||||||
| RPTP 400 | 15.37 | 01/16 | ||||||
| NBG 300 | 4.08 | 8/12 | ||||||
| TEXQY* 200 | 6.56 | 7/11 | ||||||
| REPR* 5000 | 0.22 | 10/22/12 | .12 sco | |||||
Remember, these trades are based on your participation in the
TEXTING SERVICE TO RECEIVE ALL UPDATES.
Previous closed out trades not listed here may be seen in previous market letters in the
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.
Where to Invest in 2015
Market Strategies $100,000 Trading Account
Additional trades and stop losses will be Texted and e-Mailed
There were five closed long option positions and in addition a profitable written call making
a profit of $ 2,024.
There were no closed out stock positions.
For the full year to date, we have gains of $4,405.
Open position losses increased to $ 9,404.
There are five long Open Options positions:
GILD February 105 Calls,
TBT Feb 43 Calls
SWHC Feb 10 Calls
USO Feb 20 Calls and the
VLO Feb 47.50 Calls
The Stock table has the following remaining 19 positions:
AA, ARRY, BAC, BWS, BCRH, BSBR, FB, FCX,
INO, MOS, NBG (2), REPR, RPTP, SAN, SLXP, SWHC, TEXQY, XRGYF
The options call for a $ 2,500 investment unless otherwise stated; each stock position requires $5,000 unless otherwise specifically stated.
We are basing money management on a hypothetical
$ 100,000 and are using a total of
$ 76,822 for 19 open stock positions plus five option long positions requiring
$ 79,650 leaving
$ 20,350 in cash.
These figures are approximate and there might be errors.
We have not counted the dividends received from Apple, JP Morgan, Santander, Blue Capital Reinsurance and others. We do not count commission costs and all trading once again is hypothetical.
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…
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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) |
| SWHC Feb 1020 lots | Calls0.45 | 01/16/15 | |||
| VLO Feb 47.508 lots | Calls1.36 | 01/15/15 | |||
| TBT February 4312 lots | Calls0.87 | 01/14/15 | |||
| GILD Feb 1058 lots | Calls2.50 | 01/13/14 | |||
| NFLX Jan 3206 lots | Calls2.20 | 01/12/15 | 4.40( Sold Half on100% profit Rule )
4.80 Sold Balance 3 lots |
01/12/15
01/12/15 |
$ 660
$ 780 |
| USO February 2016 lots | Calls0.39 | 01/12/15 | |||
| GILD Jan 1004 lots | Calls0.82
|
01/14/15 | 1.58 Wrote 4 Bought 4 to cover | 12/20/14 | $ 656 credit |
| NYT Jan 1310 lots | Calls | 01/05/15 | 0.10( Sold on 50% Loss Rule ) | 01/14/15 | ( $ 200 ) |
| GILD Jan 968 lots; 4 remain Open | Calls1.58 | 12/23/14 | 3.00 Sold 4 lots2.87 Sold Balance | 12/26/14
01/16/15 |
$ 568
$ 516 |
| FB Jan 77.508 lots
4 Open |
Calls1.95 | 12/08/14 | 3.30( Sold 4 leaves 4)
0.98 ( Sold Balance on 50% Loss Rule ) |
12/19/14
01/13/15 |
$ 540
( $ 388 ) |
Remember, these trades are based on your participation in the
TEXTING SERVICE TO RECEIVE ALL UPDATES.
Previous closed out trades not listed here may be seen in previous market letters in the
For Free Where To Invest Your Money Now
High Return Investments Trade Alerts
Go To: PrincetonResearch.com/alerts.htm
This Weeks’ Economic Numbers and Media Data
Earnings Reports Before the Open on Top of the Row; After the Close are Below the Economics Numbers.
| Monday | Martin Luther King Holiday Markets Closed |
| Tuesday | Allegheny Tech ( ATI -0.01 vs-0.08 ) Baker Hughes ( BHI 1.07 vs 0.62 ) Delta Airlines ( DAL 0.77 vs 0.65 ) Halliburton ( HAL 1.11 vs 0.93 ) Johnson and Johnson( JNJ 1.25 vs 1.24 ) Morgan Stanley ( MS 0.51 vs 0.50 )
10:00 hrs NAHB Housing Market Index ( 58 vs 57 ) IBM ( 5.42 vs 6.13 ) Netflix ( 0.44 vs 0.79 ) |
| Wednesday | General Dynamics ( GD 2.13 vs 1.76 ) TD Ameritrade ( 0.39 vs 0.35 ) U.S. Bancorp ( USB 0.77 vs 0.76 ) United Health ( UNH 1.50 vs 1.41 )07:00 hrs MBA Mortgage Index 01/17 ( NA vs 49.1% )
08:30 hrs Housing Starts Dec ( 1040 vs 1028 ) Building Permits Dec ( 1060 vs 1035 ) 14:00 hrs Fed’s Beige Book Jan ( NA ) Amer Express ( AXP 1.29 vs 1.21 ) Kinder Morgan ( KMI 0.32 vs 0.33 ) SanDisk (SNDK 1.28 vs 1.71) United Rentals (URI 2.08 vs 1.59 )Xilinx (XLNX 0.62 vs0.55 ) |
| Thursday | Alaska Air ( ALK 0.91 vs 1.10 ) Canadian Pacific ( CP ( 2.59 vs 1.91 ) Covidien( COV 1.05 vs 1.00 ) Flagstar Bancorp( 0.19 vs 2.77 ) JB Hunt ( JBHT 0.88 vs 0.77 )
Southwest Air ( LUV 0.55 vs 0.33 )Teledyne Tech ( TDY 1.37 vs 1.44 ) 08:30 hrs Initial Claims 1/17 ( 300K vs 316K ) Continuing Claims 01/10 ( 2380K vs 2424K ) 09:00 hrs FHFA Housing Price Index Nov ( NA vs 0.6% ) 10:30 hrs Natural Gas Inventories ( NA vs -236bcf ) 11:00 hrs Crude Inventories 01/17 ( NA vs +5.389 Mln Bbls ) Capital One ( COF 1.77 vs 1.45 ) Celanese ( CE 1.19 vs 1.04 ) Etrade ( ETFC 0.25 vs 0.20 ) Polycom ( PLCM 0.23 vs 0.16 ) Skyworks ( 1.19 vs 0.67 ) |
| Friday | BNY Melon ( BK 0.59 vs 0.54 ) First Niagara ( FNFG 0.17 vs 0.20 ) General Electric(GE 0.55 vs 0.53 ) Honeywell ( HON 1.42 vs 1.24 ) McDonalds ( MCD 1.23 vs 1.40)
10:00 hrs Existing Home Sales Dec ( 5.10M vs 4.93M 16:00 hrs Leading Economic Indicators Dec ( 0.4% vs 0.6% ) |
Market Strategies Fundamentals
Treasuries rallied throughout the week and extended their streak to 15 gains in 16 sessions.
Rate differentials with Europe remained a driver as money continued to pour into higher yielding U.S. debt. Aiding the advance was the decision by the Swiss National Bank to end its EUCHF1.20 floor. The announcement caused panic all over the world and pushed money into the safety of the complex. The Dollar Index made its best close in more than 11 years. The fallout from yesterday’s Swiss National Bank shocker has caused financial institutions around the globe to come clean on their sizable losses.
Buying at the long end pushed the 30Y down -12bps to 2.435%.
This week’s action dropped the yield on the long bond to a record low at 2.353%. This week’s auctions started off strong, but disappointed as the week progressed indicating a possible top in bonds. Monday’s strong $24B 3Y note auction drew 92.6bps and a 3.33x bid/cover. Indirect bidders (45.8%) provided support as directs (14.8%) were a bit light. Primary dealers were left with just 39.4% of the supply. Tuesday’s $21B 10Y note reopening disappointed. The reopening drew 1.930% (WI 1.916%) and a light 2.61x bid/cover. Indirect (50.0%) and direct (9.2%) bids both missed their 12-auction averages, leaving primary dealers with 40.8% of the supply. Wednesday’s $13B 30Y bond reopening was tepid. The reopening drew 2.430% (WI 2.411%) and a light 2.32x bid/cover. Indirect bids (48.9%) provided support as directs (13.7%) missed their 12-auction averages. Primary dealers ended up with 37.4% of the supply.
Meanwhile, stocks suffered through another losing week. The Dow Jones Transportation Index lost another 94 points when added to the previous week’s loss of 241 points makes a net loss of 335 or 3.65%. The Dow Jones Industrials lost 226 points last week, which when added to the previous week’s loss of 96 comes to a loss of 322 points, or second worst performance for the past two weeks but with a loss of 3.95%, the worst percentage loss of all indexes for the first two weeks of the year. The Dow has broken below its 50-day moving average at 17,609, but bounced nicely at the 17,250 mark closing above our support of 17.465 to 17, 511.57. The S&P500 lost 38 points or 1.85%. Nasdaq fell 92.75 points or 2% over the same period. Meanwhile volatility took off and rallied nicely last week up 19.4% to 20.95.
Bank stocks in particular, had a terrible week. Their losses will be even further exacerbated when the dust settles from those involved with currency trading. Looking at the Fab Five Bankers will tell the story: Bank of America ( BAC: $ 15.38 ) – $ 1.60 of 9.7%, reported $ 0.32, not so bad as earnings were a penny better than expected by most, but top line revenue fell 7.1%. Citigroup ( C: $ 47.61 )
-$ 3.16 or 6.2% earned 6 cents a share, well below expectations of a dime and $ 0.82 a year ago.
JP Morgan ( JPM: $ 55.93 ) fell $ 3.41 or 5.7% and missed on both top and bottom lines.
Goldman Sachs, caught up with JP Morgan and B of A in manipulations, ( GS$ 187.35 ) – $ 10.12 or -5.4% earned a respectable $ 4.38, better than the consensus of $ 4.32 but well below the $ 4.60 earned a year ago.
The XLF ( XLF: $ 70.37 ), closed higher by 0.16, a new all-time high. Since its low point April 2009 at 24.46, the index has rallied all but three quarters up 187% for the period. The top ten holdings in the XLV, Heathcare ETF, are as follows: Johnson and Johnson ( JNJ: $ 104.04 ) comprising 11.19% had a nice reversal Friday closing just below its 13-day moving average.. Pfizer is next ( PFE: $ 32.80 ) 7.55%. Pfizer is at a new yearly high with $33Bln in cash and $ 50Bln in Revenue paying a respectable 3.5% dividend. Merck ( MRK: $ 63.03 ) is third with 6.23% of the index and $ 43 Bln revenue. Gilead Sciences is fourth ( GILD: $ 100.71 ) with 5.47%. Amgen is fifth: ( AMGN: $ 158.43 ) made a mirror image pattern reversal Friday and is an immediate buy. AbbVie is sixth ( ABBV: $ 64.54 ) having 4.015 of the index: Bristol Myers Squibb ( BMY: $ 62.31 ). Celgene 3.46% ( CELG: $ 121.81 ) and lastly followed by Biogen ( BIIB: $ 352.75 ) at 3.16%. The ten leaders making up 53.24% of the Healthcare ETF, which is the best looking sector going into 2015. It appears to be an immediate buy for those who have no position in the index. We have been long the Gilead Sciences.
The VIX is now almost as popular as the Dow Jones Industrial Average and the Standard and Poors 500 index. A Google search reveals about 28 million mentions for the VIX, 32 million for the Dow and 37 million for the S&P 500. The VIX ( VXX: 31.98 ) usually rises when stocks fall and trades above both its 13 and 50 day moving averages. For the fifth straight year, VIX futures set an annual trading record of about 50 million contracts in 2014, up 27% from about 40 million contracts in 2013. A close below the 30 level is needed to ensure a good year for stocks.
Market Strategies Economic Data
U.S. economic data was mixed. Retail sales (-0.9% actual v. +0.1% expected) and Philly Fed (9.9 actual v. 6.5 expected) missed while Empire Manufacturing (9.9 actual v. 6.5 expected) and Michigan Sentiment (98.2 actual v. 94.1 expected) outpaced estimates. Pricing pressures were mixed as Core PPI (0.3% actual v. 0.1% expected) was hot and Core CPI (0.0% actual v. 0.1% expected) was cool.
December Retail Sales
Updated: 14-Jan-15 09:00 ET
The sharp pullback in sales was a direct result of low wages and poor income growth plus statistically lower prices paid for gasoline. Sales at gasoline stations declined 6.5% in December after falling 3.0% in November. The December employment report showed a contraction in the average hourly wage. Without income growth or higher sales prices Retail Sales will stagnate or head lower.
Motor vehicle sales declined 0.7% in December after increasing 1.6% in November, which was in-line with the pullback in unit sales reported by the motor vehicle manufacturers last week.
Consumption growth requires income growth. Flat income growth in December resulted in a sharp pullback in retail sales.
| Category | DEC | NOV | OCT | SEP | AUG |
| Retail Sales | -0.9% | 0.4% | 0.3% | -0.1% | 0.6% |
| Excluding Autos | -1.0% | 0.1% | 0.2% | 0.1% | 0.3% |
| Durable goods | |||||
| Building Materials | -1.9% | 1.6% | 0.1% | -0.2% | 0.7% |
| Autos/parts | -0.7% | 1.6% | 0.7% | -0.7% | 1.8% |
| Furniture | 0.8% | 0.2% | 1.3% | -0.5% | 1.6% |
| Nondurable goods | |||||
| General Merchandise | -0.9% | 0.3% | -0.1% | -0.2% | 0.2% |
| Food | 0.3% | 0.3% | 0.2% | 0.4% | 0.5% |
| Gasoline stations | -6.5% | -3.0% | -2.2% | -0.8% | -1.5% |
| Clothing | -0.3% | 2.2% | 0.9% | -1.3% | 0.4% |
| e*retailing/non-store | -0.3% | 0.7% | 1.5% | 0.0% | 0.7% |
Stocks and ETF’s bought over the past few weeks:
Notice the Flexibility for whatever the market direction. Both the VIX and SPXU protect against declines while the UDOW and various stocks are from the long side. Last week the UDOW lost another 4.4% its third consecutive weekly loss. Last week it lost 1.6% following the loss of 3.4% the previous week.
The VXX ( volatility Index ) gained 10.9% after 3.2% the previous week and following 9.5% the week before. The VXX remains quite lofty and higher for the month reflecting uncertainty and fear of the market.
It is up three weeks consecutively, while the Dow is off the same period. The SPXU gained 3.8% following gains of 1.29% in each of the first two weeks of the year.
Both the Deere ( DE: $ 87.30 ) +$1.65 or + 1.9% and DuPont ( DD: $ 74.25 +0.75 cents on the week had some profit taking following explosive gains last year. They should rally this week and be sold with nice gains. Exon ( XOM: $ 92.10 ) has held quite well considering the huge drop in oil prices and if it can close above $ 92.50, the 13 day M.A., we would be long. Otherwise the weekly $ 91 SCO ( stop close only should be observed. We would add Amgen, a biotech company. We are already long Gilead.
| Symbol | Name | Business Description | PE | P/S | MV mln | Price | Buy Limit | Stop LossOr sold |
| XLV | Kealth Care Spider | ETF | 70.37 | 70 | 68.20sco | |||
| AMGN | Amgen, Inc | Biotechnology | 17 | 5.85 | 121B | 158.43 | 158 | 154sco |
| SWHC | Smith and Wesson Holding Corp | Firearms; Handguns Metal Processing | 8.5 | 0.93 | 527.37 | 10.02 | 9.81 | |
| AA | Alcoa | Aluminum and Metals | 14.30 | 0.8 | 17.53B | 15.28 | 14.57 | 14.60 |
| DSX | Diana Shipping | Dry Cargo Shipping | N/A | 3.7 | 611 | 6.51 | 6.60 | 5.90 |
| STNG | Scorpio Tankers | Oil Transportation | 26 | 5.6 | 1.47B | 9.37 | 7.46 | 7.48 |
| IIIN | Insteel industries | Metal fabrication | 29 | 0.7 | 411 | 22.14 | 21.22 | 21.22 |
| KR | Kroger | Retail Food | 17 | 0.24 | 24.6K | 66.74 | 48.90 | 46 |
| XOM | Exxon Mobil | Energy | 13.4 | 1.1 | 420K | 91.12 | 90.50 | 91 sco |
| UAL | United Cont Hld | Transportation | 16 | 1.2 | 18.1K | 65.75 | 46 | 48 |
| UDOW | Ultra Pro Dow 30 | ETF | 133.27 | 104.81 | 131 | |||
| DE | John Deere | Farm Equipment | 9.4 | 0.80 | 29.0K | 87.30 | 80 | 84.30sco |
| SPXU | Ultra Short S&P | Hedge purposes | 38.58 | 43.20 | 38sco | |||
| DD | DuPont | Chemicals | 21 | 1.71 | 61.3K | 74.25 | 64.80 | 73sco |
| VXX | VIX Volatility | Hedge Portfolio | 35.47 | 27.10 | 26 | |||
| MOS | Mosaic Company | Agriculture Chemicals | 70 | 2.10 | 15.3K | 45.99 | 42.28 | 43.70 |
Undervalued Small Cap Stocks
We have bought positions in each of these companies.
Target Energy* ( TEX.AX 0.03 Australia ), In the USA, ( TEXQY: $ 2.50 ) a new ADR.
This company trading below a nickel could earn more than where it is now trading. Perhaps 7 to 10 cents is in the Cards. Their business valuation exceeds market cap.
Leo Motors ( LEOM $ 0.07 )*
Has merged with LGM, a wholly owned subsidiary has filed two patents that will significantly improve efficiency in the refrigerated cargo transportation of fresh food while dramatically reducing the carbon footprint of bulk refrigerated vehicles. They have the exclusive use of a new short-circuit technology for use in Cars, Boats, and energy storage world-wide.. Many new breakthroughs in electric energy are coming. Please go to www.leomotors.com ( English Version ) Risk is 3 cents.
RMS Medical Systems, Inc ( REPR 0.39 )*
Has doubled this year already and can double again .
RMS designs, markets, manufactures portable easy to operate infusion devices, including needles and tubing. It is easy to handle by patients. The Freedom 60 is being marketed in Europe as well as gaining a footing among home-care professionals in America. The RescueVac is used in ambulances and planes for emergency suction.
Cleveland BioLabs, Inc ( CBLI $ 0.30)*.
CBLI has done much research on cancer as well as developing a prevention for radiation sickness. This is a two for one play both cancer research and radiation protection. Just imagine the catastrophe if radioactive material falls into the wrong hands. The Russian Medical Federation has also invested heavily ( $ 23 million ) The Roswell Park Cancer Institute ( PPCI ) announced the publication of studies in “ Oncotarget” describing the preclinical efficacy of Curaxin CBLO137 as a single agent and in combination with the current standard-of-care therapy, gemcitabine, against different models of pancreatic ductal adenocarcinoma ( PDA ), including models of gemcitabine-resistant tumors. The studies were conducted by scientists at Roswell Park, SUNY Downstate Medical Center and Buffalo Biolabs, LLC. Pancreatic cancer is the fourth leading cause of cancer-related death in the United States and is one of the few cancers for which survival has not improved. Pancreatic cancer has the highest mortality rate of all major cancers; 94% of pancreatic cancer patients will die within five years of diagnosos. ( American Cancer Society: Cancer Facts and Figures 2014 )
Entolimod is being developed as a radiation treatment. Please go to www.cbiolabs.com for more pertinent information.
Southern ITS (SITS: $ 0.08 )*
Southern ITS delivers proprietary innovative electronic security systems to highly regulated market sectors. Such installations include Gaming Properties, Medical Marijuana (MMJ) dispensaries and similar businesses with high compliance mandates. Their systems go beyond simple security and are designed to support their clients in dealing with the expanding burden of compliance and financial auditing. Greeniosk is complete system that allows Medical Marijuana (MMJ) Dispensaries and Recreational Marijuana (MJ) Dispensaries to document and provide an audit and verification trail of each individual MMJ/MJ dispensary transaction.
The majority of MMJ Dispensaries have limited bank service access mainly due to requirements of the Racketeer Influenced and Corrupt Organizations Act (RICO). The Greeniosk system incorporates a large physical ATM Kiosk, with a state of the art CRM reporting system that provides a detailed financial transaction audit trail and addresses and resolves issues of the propriety of the dispensary operations. MMJ Dispensaries currently transact between $250,000 and $5,000,000 in annual revenues. The majority consist of cash transactions, however small numbers of dispensaries accept debit card payments. Because RICO concerns cause the majority of banks to decline dispensary deposits, they also miss out on potential MMJ credit card transactions.
Labor Smart ( LTNC: $ 0.001 )
It is unusual to say the least to find a company doing $24 million is top line revenue which appears to be the case for 2014 and projecting over $ 30 million for 2015 to be trading at one-tenth of a penny. Debt has been paid down from about $ 3 million to $ 2.5 million from the sale of shares by the debt holders, but a good banker is needed to turn this stock around as the overall business itself is good.
Market Strategies Cycles
| Not Rushing to Pass Judgment | By Christopher Mistal |
At the half-way point in January, the market is looking a bit shaky. Since their respective late-December highs, DJIA is down 4.1%, S&P 500 4.7%, NASDAQ 4.9% and Russell 2000 5.3% as of today’s close. This brings January’s decline so far to 2.8% for DJIA on up to 4.2% for Russell 2000 and these indices are now nearing their mid-December lows. All are currently trading below their 50-day moving averages (solid magenta line), but remain above their 200-day moving averages (solid red line) and projected monthly support (green dashed line). Stochastic, MACD and relative strength indicators are all negative and nearing oversold levels.
| Cold Winter Could Heat Up Natural Gas | By Christopher Mistal |
Based upon the US Nat Gas ETF (UNG: $ $ 14.99 ) there is a seasonal tendency for natural gas companies to enjoy gains from the end of February through the beginning of June. Detailed in the Stock Trader’s Almanac 2015 on page 94, this trade has returned 17.7%, 11.5%, and 9.8% on average over the past 15, 10, and 5 years respectively. Concurrent with this is a featured trade on page 32 of the Commodity Trader’s Almanac 2013 that is based upon natural gas, the commodity.
One of the factors for this seasonal price gain is consumption driven by demand for heating homes and businesses in the northern cold weather areas in the United States. In particular, when December and January are colder than normal, we see depletions in inventories through February. This has a tendency to cause price spikes lasting through mid-April. This was precisely the situation in December 2013 through February 2014 when natural gas rallied from around $3.75/mmBtu to nearly $6.00/mmBtu.
A relatively mild start to winter this year combined with plunging crude oil prices has sent natural gas back below $3/mmBtu this week, even as many parts of the U.S. are unseasonably cold. Inventories are healthier now than a year ago, but are still below the 5-year average for this time of year. This combination of a recent sharp price decline and below average inventories represents an excellent opportunity for new long positions, especially with the coldest winter months still ahead.
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Rule 17B Attestations and Disclaimers
Princeton Research, Inc. has approximately 2,581,578 shares of AIVN both free and restricted and represents them for Investor relations. 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 was paid $ 2,500 to write a report on Xinergy. Princeton has signed a contract with CBLI to be paid $ 2500 for July and August for investor relations. Princeton has been engaged by Target Energy. No contract is currently in place. Princeton was paid about 500,000 restricted shares of Leo Motors.
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 0.05 in Australia. Princeton owns 400,000 Australia shares and about 900 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 e-mail issue. Princeton may buy or sell its free-trading shares in companies it represents at any time.
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