Options Trading Strategies – Market Strategies Newsletter

March 25, 2013

Market Strategies Newsletter

Sample Issue

 

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Covering High Return Balanced Investing Strategies To

Make Money In Up Or Down Markets

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

Market Strategies

$10,000 Options Trading Account

We had a good week in a

challenging seesaw market,

making $1,612 to take us to

a new YTD performance high of up $13,520

 

 Our 5 open positions are using a total of $4,100.

 

Options Trading Strategies Comments

 

The market refuses to decline for more than 2 consecutive days and has disappointed everyone looking for a 3 – 5% pullback.  We have several influences this week, including a short week (Good Friday closure) the month and Q1 end coming Thursday.

 

The weekly sentiment numbers have fallen back in line with Bullish, having declined to 38.9%, right on its long term average of 39% and bearish down @ 27.7% still just below its 30% average.

As always, the end of the quarter puts us back into earnings season.  There have been plenty of misses this year.  The market is a lot less forgiving up here at 1550 on the S&P and 14,500 on the Dow than back at 1400 or 12,000.  If anything could derail us now, it would be earnings or poor guidance.

We traded Apple again this week and made another $975.  This lowers our cost basis on the long 20 shares in the $100,000 account almost $50/shr. on that position.  As mentioned last week, we will continue to work against our $594 cost until we can profit on Apple’s return to its former status of innovator.  At this point we have taken over $4800 in profits against the position, lowering the cost basis to about $354/ share.

…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.

 

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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.

 

For any questions please call (702) 650 3000.

 

Market Strategies Where To Invest Now

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

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.

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

 

NOTE: This is a Sample Issue Only!

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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 gained $ 2,859

in closed out positions last week.

Our profits for the year

increased to a hypothetical $ 30,441

 

We have four 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 $ 7,200.00 in five options positions, $ 77,311.00 in the 17 stock positions, a total of $ 84,511.00 with $ 15,489.00 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!

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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

 

Market Strategies Trading Fundamentals

It looks like a great quarter with just 4 days to go. Transportation ( DJ 20 Index ) was the leader so far with a resounding gain of 16.44%. The DJ 20 had eleven up-weeks out of twelve. The Dow had twelve up-weeks so far ( every week ). An up-week is characterized by a higher high and higher low. The weeks ended Feb 22^nd, and Feb 28th had lower lows early in the week but managed to make a higher high and close higher also. The Dow closed slightly lower last week ( 2 points ) but made a higher high. The Dow also had difficult openings just like the Tranny the last two weeks of February.

Meanwhile, to illustrate the power of the U.S. equities, the Dollar was a headwind all the way gaining 3.12 points from 79.87 to 82.99, up 3.9%. The Asian countries are more consumer oriented- less export dependent making them better prospective customers of American products. They have more workers, less unemployment. For example the U.S. Unemployment Rate is 7.7%, good compared with the Eurozone at 11.9%. However, with a higher birthrate per capita of 3.14 children for every woman, the Philippines has even a lower unemployment rate than the U.S. at 6.8%. Thailand  has the lowest at 0.5 %.

The Following table is a brief comparison of Equity Performances:

 

Index                          Change for first 3 Months

Dow Jones Trans                 +16.44%

Philippine  EPHE                + 12.53%

Russell 2000                                    +11.41%

Dow Jones 30                      + 10.74%

S&P 500                                + 9.16%

Nasdaq Comp                      + 7.47%

Indonesia IDX                      + 7.12%

 

Market Strategies Economic Data

 

February Leading Indicators

Print version     Archive

Highlights Big Picture The Conference Board’s Index of Leading Indicators increased 0.5% in February after increasing an upwardly revised 0.5% (from 0.2%) in January. The Briefing.com consensus expected the index to increase 0.5%. Key Factors Since eight of the 10 components of the index are known prior to the release, the difference between the actual number and the consensus is typically minor. In this case, the consensus accurately predicted the Conference Board’s estimated growth rates for manufacturing orders of nondefense capital goods excluding aircraft and manufacturing orders of consumer goods.   A sizeable jump in the average workweek for production workers was the main catalyst for the gain in the leading indicators. Growth should remain strong in March as improving initial claims levels enter the equation. The Leading Indicators Index continues a positive trend. Category FEB JAN DEC NOV OCT Total Index 0.5% 0.5% 0.4% 0.0% 0.2% Manufacturing Workweek 0.13% -0.07% 0.13% 0.07% 0.00% Initial Claims 0.02% 0.07% 0.44% -0.36% 0.08% Cons. Gds Orders 0.01% -0.02% -0.10% 0.09% 0.07% ISM New Orders 0.05% -0.04% -0.11% -0.09% -0.05% Nondef. Cap Gds Orders, exc. Aircraft -0.10% 0.27% -0.03% 0.12% 0.12% Building Permits 0.14% -0.02% 0.03% 0.11% -0.08% Stock Prices 0.18% 0.16% 0.08% -0.12% -0.01% Leading Credit Index 0.14% 0.17% 0.10% 0.09% 0.07% Interest Rate Spread 0.20% 0.19% 0.17% 0.16% 0.17% Consumer Expectations -0.08% -0.14% -0.15% -0.03% -0.03%

 

Market Strategies

Technical Information

Support Levels S&P 500    15.33-15.37                    

Resistance S&P 500           15.70-15.77

 

Support Levels DOW        14.385-14.145                

Resistance DOW               14.570-14.630

 

Support Levels QQQ           67.60-68.00                   

Resistance QQQ                  69.29-70.70

                   

Support Levels Nasdaq      30.70                             

Resistance Nasdaq              34.78                                    

  

Market Strategies Cycles

The downside test seems to be coming to completion as quarter-ending book-squaring is now in focus. With four days left, opportunity remains with companies able to use low interest rate money.

The cyclical stocks like Arcelor Mittal ( MT: $ 13.55 );

BHP Billiton ( BHP: $ 69.64 );

Vale SAADR ( VALE: $ 17.16 ); U.S. Steel Corp ( X: $ 19.81 );

Freeport McMoran ( FCX: $ 33.00 ); Rio Tinto ( RIO: $ 47.45 );

Posco ( PKX:$ 72.41 ) and even AKI Steel ( AKS: $ 3.31 )

are either at a low point or they are going to inevitably pull the rest of the markets down.

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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

Princeton Research

3887 Pacific Street, Las Vegas, Nevada 89121

Phone: (702) 650-3000

Fax: (702) 697-8944

mike@princetonresearch.com

Visit: www.princetonresearch.com