Where to Invest August 17, 2015 Investing Strategies Newsletter

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August 17, 2015

Market Strategies Newsletter

Sample Issue

How to trade binary options

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

 

Where To Invest In 2015 Newsletter Covering:

Where to Invest August 2015

Best Stocks To Buy August 2015

Stock Market Investing Strategies

Stock Options Trade Alerts

Options Trading Strategies

How To Trade Options

 

Net Gain Last week $ 1106

 

2015 Year To Date Profits $ 7,849

 

Over 78% Returns

 

 

2014 Profits = $ 20,443

Over 204% Returns

 

 

For Free Where To Invest Your Money Now

High Return Investments Trade Alerts

Go To: PrincetonResearch.com/alerts.htm

 

NOTE: This is a Sample Issue Only!

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Charles Moskowitz Discussion

 

We  have 5 open  long  positions:

 

DIS Aug 107 Calls;

HACK Aug 31 Calls

MOS  Sept 45 Calls

SPY  Sept  210 Calls and

SNSS Aug 3 Calls

 

Funds in use = $2,460               

 

WHY OPTIONS NOW ??

 

Week 33 was another good one even with all of the volatility.  We made money on both sides of the market with gains in MOS and DIS calls and SPY puts.  Gains were one of the best of the year at $1,106, bringing YTD gains to a new high of $7,849.  Open positions are using a total of $2,460 down just slightly week to week.

 

The market continues to confound many of the players.  The   AAII sentiment numbers for this week are truly unusual in that we had an increase in both bullish and bearish numbers with the losses coming from the neutral players.

 

There are several notable indexes that are starting to show some bottoming action that includes the change in the daily ranges during a period (summer) when we see lower volume and diminished ranges. The Transports, Energy, and Russell are all trying to make a stand.  As I mentioned last week, the   Financials are all that is needed to tip the scales to an overall positive market.  The Chinese have possibly caused a delay as their devaluation makes the dollar stronger and the economic numbers including multinational earnings weak enough to possibly delay the rise in interest rates,  previously due at the September meeting.  A  look at the 10 year treasuries action this week tells the story.  I was ready to buy the calls on the TBT  ( leveraged short 20yr ) on Wednesday only to see it fail to follow through to the upside.  I’m still looking at this trade but need to see how it develops.

 

The reason that options are the way to play this market right now is simple.  It limits our risk while the market makes up its mind on direction.  If you look at some of the high volatility stocks that have had news, like AXP last week or histories of major upside breakouts, with gaps, like AMZN, or AAPL, the only “safe” way to play them is by buying puts.  That way, if you want to play a reversal at market highs, you limit your risk.

 

Last week AXP looked like it might have been completing a fairly major top when an activist reported taking a $! Billion position.  If you were short this one you saw a dramatic reversal from recent lows around $75 straight up to $80…a quick $5 loss.  However, the $75 puts could have been bought for $1, and your loss  was limited to that $100 spent.

 

While we don’t recommend trying to call a top or “catch a falling knife,” it can be the biggest reversal and gain…Risk=Reward……but the only way to play is to limit your risk.  Options clearly is the answer.  It also plays into my trading philosophy of either “being right, or right out….CAM.

 Where To Invest Your Money Now March 2014 Market Strategies

Market Strategies $10,000 Trading Account Trade Table

DATE TRADES PRICE COST PROCEEDS RESULTS
08/13 Bought 10 MOS September 45 Calls 0.58  580
08/12 Bought 8 SPY September 210 Calls 0.74  592
08/12 Sold 2 SPY August 209 Puts 3.28       656        154 Gain
08/10 Sold 2 DIS August 107 Calls 3.90       780        412 Gain
08/10 Sold 3 MOS Aug 42.50 Calls  ( Balance  of 6 ) 2.85       855        540 Gain
08/06 Bought 2 SPY August 209 Puts 2.51  502  
08/06 Bought 4 DIS August 107 Calls 1.84  736  
08/05 Sold  3 MOS August 42.50 calls ( 100% Profit Rule ) 2.40        720        405 Gain
08/03 Bought  12 HACK August 31 Calls 0.30  360
08/03 Bought 6 MOS August 42.50 Calls 1.05  630
07/17 Bought  8 SNSS August 3 Calls 0.70  560

 

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.

 

MARKET Laboratory – Weekly Changes

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

 

Dow

17,477.40

+104.02

+0.60%

Nasdaq

5048.24

+4.69
+0.09%

S&P 500

2091.54

+13.97

+0.67%

Transportation

8318.70

+67.85

+0.82%

Russell 2000

1212.69

+5.79

+0.48%

Nasdaq100

4530.74

+10.66

+0.24%

Gold (spot)

1112.90

+18.80

+1.7%

  Silver

1521.3

+39.2

+2.7%

Crude

42.50

-1.37

-3.1%

Heating Oil

155.79

+1.43

+0.9%

Unleaded Gas

1.6869

+0.0639

+3.9%

Natural Gas

2.801

+0.003

+0.1%

VIX

12.83

-0.56

-4.2%

Put/Call Ratios

S&P 100

102/100’s

+3/100’s

Put/Call Ratios

CBOE Equity

74/100’s

-4/100’s

 

Bonds

158-04  -13

2.84% +0.01%

10 Yr. Note

127-114 -03          2.20%+0.03%

 

Copper

235.15

+1.90

+0.8%

CRB Inflation

Index

197.97

-0.35

-0.2%

Barron’s* Confidence

76.7

-0.8%

S&P100

920.75

+4.43

+0.48%

5 Yr. Note

119-187  -007

1.60% +0.02%

 

Dollar

96.52

-1.04

-1.1%

DJ Utilities

604.29

+13.84

+2.34%

AAII

Confidence

Index

Bullish

30.5%

+6.2%

Bearish

36.1%

+4.4%

Neutral

33.4

-10.6%

M1 Money  Supply

+7.99%

Aug 3rd

 

 

M-2 Money

Supply

+5.61%

Aug 3rd

 

 

 

 

* 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.

 

For Free Where To Invest Your Money Now

High Return Investments Trade Alerts

Go To: PrincetonResearch.com/alerts.htm

 


Market Strategies Technical Information

 

                              Support/Resistance Levels:                SUPPORT                         RESISTANCE

 

S&P 500           2074                                2,112

Dow               17,270                               17,760

QQQ           109.10                              111.70

Transports      8120                                  8470

NASDAQ         4920                              5110

      

 

 

$100,000 Trading Portfolio Stock Positions and Trades

                      

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)

MOS  100 43.55       08/14
ETSY  500

200 lots

14.98

 

      08/05 17.80  08/12   $ 846
SNSS 1200   2.95       06/26
DSX  500   7.05       05/18
CRM  100 72.90       04/29
GILD  50 102.73       03/03
ARRY 500   8.02       02/24
NAT   300

Sold 200

10.16       02/13 14.40  06/25    $ 848
NBG  600 1.40       02/17
BAC. Wts 5,000 lots 0.7411       12/26
BSBR  500 4.84      12/18
SAN  600 8.40      12/16
AA  500 14.21      10/16
FCX 150 34.99      09/09
NBG 300   2.95      05/19
RPTP 200

Sold 200

15.37      01/16 16.09  06/25   $ 144
NBG 300 4.08 8/12
TEXQY* 200 6.56 7/11
REPR* 5000 0.22 10/22/12 .28 sco

 

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.

 

For Free Where To Invest Your Money Now

High Return Investments Trade Alerts

Go To: PrincetonResearch.com/alerts.htm

 

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.

What Should I Invest In

Market Strategies $100,000 Trading Account

 

There were three closed long option position;  the S&P August 8th 209 Puts bought at $ 2.51 and then sold at $ 3.28  for a gain  of $ 308  The balance of the  MOS August 42.50 Calls having been bought at $ 1.05 were sold at $ 2.85 for a profit of $ 1080.  Half of the DIS were sold on a double making $ 824.

 

The total gain for the week in options trading was $ 2,212.

There was one closed out stock position, 300 shares of the ETSY sold at $ 17.80 for a profit of $ 846.

 

For the full year to date, we have gains of $ 22,422.

 

Open position losses decreased to $12,795.

 

The options expire on the third Friday of each Month unless otherwise posted.

 

The Stock table has the following 18 positions:

 

AA,  ARRY,  BAC.B.WS,  BSBR, CRM,  DSX, ETSY, FCX, GILD, MOS, 

NAT  NBG (3),  REPR, RPTP,  SAN,  SNSS, TEXQY: 

 

The options call for a $ 2,500 investment unless otherwise stated; each stock position requires $5,000 unless otherwise mentioned specifically.

 

We are basing money management on a hypothetical

$ 100,000 and are using a total of

$   65,856 for the 19 open stock positions. There are five long option positions requiring

$     4,920 totaling

$   70,776 leaving

$   29,224 in Cash.

 

These figures are approximate and there might be errors.

 

We have not counted the dividends received from Apple, JP Morgan, North American Tankers, Santander, Blue Capital Reinsurance which was sold for a profit  and many others.

 

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…

how to invest $10000

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)

MOS Sep 45

20 lots

Calls

0.58

08/13/2015
SPY Sep 9th210

16 lots

Calls

0.74

08/12/2015
SPY Aug 209

4 lots

Puts

2.51

08/06/2015 3.28 08/12/15 $ 308
DIS Augst 107

4 lots Open

Calls

1.84

08/06/2015 3.90 ( 100% Profit Rule ) 08/10/15 $ 824
HACK August31 24 lots Calls

0.30

08/03/2015
MOSAug 42.50

6 lots )pen

 

Calls

1.05

08/03/2015 2.40

( 100% profit Rule sold half )

 

2.85

( Sold Balance)

08/05/15

 

 

08/10/15

 

 

 

$ 810

 

 

$ 1080

SNSS August 3

16 lots

Calls

0.70

07/17/2015

 

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.

 

For Free Where To Invest Your Money Now

High Return Investments Trade Alerts

Go To: PrincetonResearch.com/alerts.htm

 Stock Market News Today

This Weeks’ Economic Numbers

Earnings Releases and Media Data

 

Before the Open on top of the Row.

After the close below the Economics Information

 

MONDAY Estee Lauder ( EL 0.34 vs 0.66 )

08:30 hrs Empire Manufacturing Aug ( 5.0 vs 3.9 )

10:00 hrs NAHB Housing Market index  Aug ( 61 vs 60 )

16:00 hrs Net Long term TIC Flows June ( NA vs + 93.0Bln )

Agilent ( A 0.41 vs 0.78 ) China Lodging ( HTHT 2.09 vs 2.08 ) Prospect Capital ( PSEC  0.26 vs 0.25 ) Urban Outfitters  ( URBN 0.49 vs 0.49 )

TUESDAY Dicks Sporting Goods ( DKS 0.75 vs 0.67  )  TJX ( TJX  0.76 vs 0.75 )

08:30 hrs Housing Starts July ( 1200K vs 1174K )

Building Permits ( 1257K vs 1343 K

Analog Devices ( ADI 0.74 vs 0.63 ) DeVry Education ( DV 0.61 vs 0.73 )

WEDNESDAY Hormel Foods ( HRL 0.55 vs 0.51 ) Lowe’s ( LOW 1.25 vs 1.04 )  Malibu Boats ( MBUU 0.31 vs 0.24 ) Staples ( SPLS 0.12 vs 0.12 ) Target ( TGT 1.11 vs 0.78 )

07:00 hrs MBA Mortgage Index 08/15 ( NA vs + 0.1% )

08:30 hrs CPI July ( +0.2% vs +0.3% )

CORE CPI ( 0.2% vs 0.2% )

10:30 hrs Crude Inventories   08/15  ( NA vs -1.682 Mln Bbls )

14:00 hrs FOMC Minutes(  from 07/29th meeting

L Brands ( LB 0.68 vs 0.63 ) Net App ( NTAP 0.23 vs 0.60 ) Spartan Stores ( SPTN 0.59 vs 0.65 ) Synopsys ( SNPS 0.59 vs 0.65 ) Youku Tudou ( -0.23 vs -0.07 )

THURSDAY Ann ( ANN 0.69 vs 0.70 ) Bon-Ton Stores ( BONT -1.79 vs -1.86 ) Jinko Solar Holdings ( JKS 0.88 vs 0.92 ) Kirklands ( -0.11 vs -0.06 ) QIWI ( QIWI 16.86 vs 16.90 )  Sears Holdings ( SHLD -2.50 vs -2.87 ) Tech Data ( TECD 0.98 vs 1.12 )

08:30 hrs Initial Claims 08/15  ( 272K vs 274K )

08:30 hrs Continuing Claims 08/08  ( 2265K vs 2273K )

10:00 hrs Existing Home Sales July ( 5.42Mln vs 5.49 Mln )

10:00 hrs Philadelphia Fed  Aug  ( 7.0 vs 5.7 )

10:00 hrs Leading Economic Indicators July ( 0.2% vs 0.6% )

10:30 hrs Natural Gas Inventories 08/15  ( NA vs 65 bcf )

Hewlett Packard ( HPQ  0.86 vs 0.89 ) Intuit ( INTU -0.11 vs -0.01 ) Ross Stores ( ROST 0.62 vs 1.14 ) Salesforce.com ( CRM 0.17 vs 0.13 )

 

FRIDAY John Deere ( DE 1.42 vs 2.33 ) Foot Locker ( FL 0.69 vs 0.63 )

Hibbett Sports ( HIBB 0.29 vs 0.32 )

 

Options Trading Newsletter

Market Strategies Fundamentals

 

It was a wild week for the stock markets. The DJ Transportation Index ended the week up 68 points to 8318.70, up 0.82%. The S&P 500 gained 13.97 points or 0.67%  to 2091.54 while the Dow rose 104 points or 0.60% to 17,477.40. The Russell 2000 was also positive for the week gaining 5.79 points or 0.48% to 1212.69.

 

The Chinese government devalued their currency 1.9% Tuesday and then another 1% Wednesday aiming to boost their weakening economy. The markets opened the day Tuesday sharply lower with the S&P opening down 16.3 and Nasdaq off 26.2. The fear of decelerating world economic growth had sent  the  Dow  down 277 points  early Wednesday morning to  a low of 17,125.81 before its dramatic recovery of  more than 350 points off the low to close in positive territory for the week.

 

The S&P 500 had fallen on Wednesday 24.48 points  for the week, breaking its 200-day moving average at about  2075,  to a low of 2052,  before its dramatic recovery to end the week in positive territory at 2091.54.

 

The Nasdaq Composite finished the week at 5048.24, up 4.69 or 0.09%, virtually flat after having fallen to a low of 4945.79, still above its 200-day moving average of 4,900. However, the Nasdaq has fallen below both its 13 day and 50 day price moving averages which now together form a band of resistance at 5095. The XLK, which is the Technology spider, had a huge volume spike Tuesday before breaking down to 41.44 on Wednesday, well below its 200-day moving average at 42.00. The XLK recovered to 42.42 Friday, up 0.30 for the week or +0.7%. However, it has huge resistance just above at 42.50-60.

 

The Russell 2000 had dropped to 1189.42 before recovering to 1212.69. The Russell has its major resistance just above at 1224 where the 13 and 50 day moving averages coincide. On Thursday, the Russell fell 0.35% to close at 1,204.74, its lowest close since February 11th.

The Russell is without a doubt the weakest of all indexes as the small caps do not do well in an atmosphere of rising interest rates.

 

The DJ Transportation Index was the best performer up 0.82%. The positive economic releases for both Industrial Production and Retail Sales helped the weekly recovery. The Tranny had dropped to a low of 8141 before recovering to 8318.70. The DJT needs to close above its 50 day moving average looming just above at 8355, for the recovery to be meaningful.

 

Economic numbers in the U.S. were very good last week. Productivity was up with wage gains up but not inflationary; Industrial Production was solid and Retail sales were outstanding.

All Ten Dow Industrial Groups ended the week higher. Oil and Gas stocks led the way, up 3%; Utilities rose 2.46%; Telecommunications 1.30%; Industrials 1.10%; Technology gained 0.71%; Basic Materials added 0.57%; Financials added 0.37%; Consumer Services 0.33%; Health Care 0.11% and Consumer Goods plus 0.02%.

 

Market expectations, as the result of China’s devaluation and general global weakness, are for the Fed not to raise interest rates in September.

Balanced Investing Strategies

Market Strategies Economic Data

 

Consumer sentiment is strong and there is labor market security. Initial Claims are near a 40-year low. Consumers should increase spending. This number bears out Fed thinking that the economy is strong.        

Retail sales increased 0.6% in July after an upward revision brought sales to the flat line (from -0.3%) in June. The Briefing.com Consensus expected retail sales to increase 0.5%. Excluding autos, retail sales increased 0.4% in July after increasing an upwardly revised 0.4% (from -0.1%) in June. Core sales – which exclude sales at motor vehicle dealers, gasoline stations, and building material and supply stores – increased 0.3% in July, up from a 0.2% gain in June. These sales more closely track the goods component of GDP than the headline retail sales.

Category JUL JUN MAY APR MAR
Retail Sales 0.6% 0.0% 1.2% 0.0% 1.5%
    Excluding Autos 0.4% 0.4% 1.0% 0.2% 0.9%
  Durable goods
    Building Materials 0.7% 0.2% 0.2% -1.8% 2.8%
    Autos/parts 1.4% -1.5% 1.9% 0.6% 3.5%
    Furniture 0.8% -1.0% 1.6% 0.7% 2.4%
  Nondurable goods
    General Merchandise -0.5% 0.8% 1.3% -0.6% 1.4%
    Food 0.0% 0.0% 0.6% -0.3% 0.7%
    Gasoline stations 0.4% 1.8% 3.9% -0.9% 1.1%
    Clothing 0.4% -0.9% 1.9% 0.2% 1.1%
    e*retailing/non-store 1.5% -0.2% 0.7% -0.1% 0.6%

 

Motor vehicle demand played a large part in the increase in sales growth. Motor vehicle manufacturers reported that unit sales increased to 17.6 mln SAAR in July from 17.0 mln SAAR in June. That gain pushed up sales at motor vehicle and parts dealers by 1.4% after declining 1.5% in May. Sector wise, large gains were reported in the furniture (0.8%), sporting goods (0.9%), and non-store (1.5%)sectors. Sales declined at electronics and appliance stores (-1.2%) and department stores (-0.8%).

Industrial  Production increased 0.6% in July after increasing a downwardly revised 0.1% (from 0.2%) in June. The Briefing.com Consensus expected industrial production to increase 0.3%.

This was the largest increase in industrial production since a 0.9% gain in November 2014.

Manufacturing production increased 0.8% in July after declining 0.3% in June. That was the largest increase in manufacturing production since a 0.9% gain in November 2014.

 

Nearly the entire increase in industrial production was the result of historic gains in the auto industry. Excluding autos, total industrial production was flat in July and manufacturing production increased only 0.1%.

 

Motor vehicle assemblies increased to 13.61 mln annualized in July from 11.81 mln in June. To put that number in perspective, July assemblies were the most since 13.89 mln  were assembled in November 1978, and assemblies have only exceeded the July level twice since data started being collected in January 1967. The level  of July assemblies also helps to  explain the large increase in the Chicago PMI Production Index, which rose to 61.8 from 49.8 in June.

 

The record increase in motor vehicle assemblies caused a surge in industrial production growth. Even mining increased as a result of better weather.

 

Category JUL JUN MAY APR MAR
Industrial Production
Total Index 0.6% 0.1% -0.3% -0.3% -0.1%
    Manufacturing 0.8% -0.3% 0.1% 0.3% 0.2%
    Utilities -1.0% 2.3% -0.6% -2.7% -2.5%
    Mining 0.2% 0.7% -2.0% -1.7% 0.4%
Capacity Utilization
Total Industry 78.0% 77.7% 77.7% 78.0% 78.3%
    Manufacturing 76.2% 75.7% 76.0% 76.0% 75.8%

Both Productivity  and Wages improved in the second quarter.

Nonfarm productivity increased 1.3% in Q2 2015 after declining an upwardly revised 1.1% (from -3.1%) in the first quarter. Both Productivity and labor costs increased even while in the midst of a slowdown in oil production. Compensation per hour rose 1.8% in the second quarter, topping the 1.1% gain in the first quarter. The second quarter gain, however, was still well below the growth rates from the second half (3.2% and 3.4%) of 2014.

Productivity gains help keep cost-push inflation pressures from rising wages in check. Over the long term, it is productivity gains that provide the increase in output that have led to the consistent gains in living standards in free market economies.

Category Q2 Q1 Q4 Q3 Q2
Nonfarm Business Sector
Productivity Q/Q 1.3% -1.1% -2.2% 3.1% 2.8%
Unit Labor Costs Q/Q 0.5% 2.3% 5.7% 0.1% -3.5%
Productivity Y/Y 0.3% 0.6% 0.0% 1.4% 1.0%
Unit Labor Costs Y/Y 2.1% 1.1% 2.8% 1.1% 0.9%

 

 

For Free Where To Invest Your Money Now

High Return Investments Trade Alerts

Go To: PrincetonResearch.com/alerts.htm

 

 

Market Strategies Cycles

 

Volatility tends to pick up in August. In the following chart, weekly bars of CBOE’s Volatility Index (VIX) are plotted with its 1-year seasonal pattern plotted below. In an average year, VIX typically reaches a low in July and then begins to steadily climb toward a high sometime during October and then begin to decline once again. Note how over the last year VIX has tracked its seasonal pattern rather closely. The UVXY 25.82 gives a better bang for the buck and is trading near its  lowest  level of the year.

 

 

            

 

Look for a short-term snap back rally before a resumption of downward pressure at the end of August and into September. In addition to seasonal pressure, economics and market action both here and abroad are not encouraging and then there is the possibility  of a Fed rate hike sooner than later  which is not historically bullish for the market in the near term.

 

 

On Tuesday DJIA’s 50-day moving average fell below its 200-day moving average registering what is ominously known as the death cross. Unfounded rumor has it that this death cross is negative indication for the stock market. Research shows this is not always the case. DJIA’s last death cross on August 24, 2011 came 40 calendar days before the subsequent correction low was made on October 3, 2011, a modest 5.9% lower low.  A July 7, 2010 death cross was even milder with a low arriving 50 calendar days later at a mere 0.3% below the day of the cross. Most of these death crosses occur near intermediate or short-term lows. The flipside of the death cross, the golden cross, when the 50 DMA crosses above the 200 DMA is more indicative on the upside.

 

 

 

 

In the above chart the 30 trading days before and 60 trading days after all 43 DJIA death crosses since 1950 have been plotted. On average, there was little difference in the severity of the decline whether it was during the “Best Six Months” or the “Worst Six Months.” The 43 previous death crosses were split nearly down the middle between the two periods, 22 were in the “Worst Six Months” and 21 in the “Best Six Months.” What is clear in the chart is that by the time the death cross occurred; the bulk of DJIA’s move lower had already taken place.

 

 

 

 

 

 

Undervalued Small Cap Stocks

 

Enzo Biochem ( ENZ  2.90  )  Buy on a dip to below $ 2.80..  The company has revenue of about $ 100 million per year. This pressure has been against the stock since May and now may be ending. I would expect the stock to start to recover to much higher levels.  When AmpiProbe is approved the top line revenue should start to show a increase within 3-4 months of approval (product rollout, packaging, etc..). Enzo should be included in the Russell next year if all of this comes to pass. Upside pressure is likely for the stock.

 

RMS Medical Systems, Inc ( REPR 0..295)*  . The company is poised for world-wide growth. The Freedom 60 is being marketed in Europe as well as gaining a footing among home-care professionals in America. International sales increased 47.8% first quarter 2015 up from same quarter 2014. U.S. sales were down 10%. Some of the First Quarter Sales were completed in the previous quarter. The RescueVac is used in ambulances and planes for emergency suction.

 

Immune Therapeutics, Inc. (  IMUN 0.20  )* Buy now. IMUN  is a specialty pharmaceutical company formed by patients funded by patients involved in the manufacturing, distribution and marketing of patented therapies to combat chronic, life-threatening diseases through the activation and modulation of the body’s immune system.   The Company’s technology platform is built on two different immunotherapies, Low Dose Naltrexone (LDN) and Methionine-Enkephalin (MENK).  These proprietary technologies exploit the power of the body’s own immune system to find and kill diseased cells. We have bought the shares.

Low Dose Naltrexone (LDN) is a proprietary immunotherapy for the treatment of autoimmune diseases, HIV/AIDS, opportunistic infections, cancer and a range of other serious diseases. LDN works by boosting levels of endorphins (peptides produced in the brain and adrenal glands). These natural peptides are also powerful modulators of the immune system. In order for the body to maintain good health and wellness, there is a balance of the immune system between the cellular (Th1) and the humoral (Th2) immune systems. Immune balance is regulated through T-helper cells that produce cytokines. The Th1 lymphocytes help fight pathogens that are within cells like cancer and viruses through activation of interferon-gamma and macrophages. The Th2 lymphocytes target external pathogens like parasites, allergens, toxins through the activation of B-cells

In order for the body to maintain good health and wellness, there is a steady state of balance of the immune system between the cellular and humoral immunity as well as the regulatory T-cells that keep things under control.

When there is an excess of Th1 responses or cellular immunity conditions such as Crohn’s disease, Type 1 diabetes mellitus and graft versus host diseases result. When there is over activity of the humoral immune system the body over reacts to allergens or even itself (autoimmunity). And with less cellular surveillance cancer can occur. What the body needs to remain healthy is a balance of the immune system. LDN is a compound that works on the body’s natural opioid system to restore immune balance..

International Star (OTC Pink: ILST 0.003 )*  Please call for a report. This is a local gold venture.

 

International Sustainability Group, Inc (OTC Pink:  ISGP: $ 0.05 )*  Production of commercial algae for both nutraceutical and environmental uses. They have a patented commercial indoor commercial algae development technology which it uses to produce a line of nutraceuticals. Another benefit of commercial algae is algae has the ability to capture carbon-dioxide ( CO2 ) and help reduce greenhouse emissions.

 

 

Stocks and ETF’s bought over the past few weeks

 

The  HDGE has been  unable to close above 11.04 which would be a bear signal. We bought the HDGE @ 11.04.  HDGE is the BEAR hedge.   We   were  unable to buy  Golar.  We want  to buy  Mosaic  MOS,     Southwest Air LUV and Harley Davidson HOG..   We would also like to be long Virgin Air ( VA ) on a dip. Please check on the previous weekly market letters if there are questions.  We are long in Diana Shipping at 6.60.   DSX  is looking better and you should  buy now if not already long .  We would buy Bank of America  and continue to like the banking sector.

 

 

Symbol Name Business Description PE P/S MV mln Price Buy Limit Stop Loss

Or sold

VA Virgin Air Regional Airlines 7.2 1.0 1.5B 35.07 32.20 29.50
MOS Mosaic Fertilizer 14.6 1.70 15.68B 43.28 43.00 41.90x
OSIR Osirus Therapeutics Biotechnology 690 9.06 664M 18.22 18.90 18.50 x

Stopped out

LUV Southwest Air Regional Airlines 16 1.15 22.6B 39.36 33 32.31sco
HOG Harley Davidson Consumer Goods 14 1.87 11.6B 59.23 54 52.39sco
ENZ Enzo Biochem Life Sciences NA 1.35 134M  3.11 2.78 2.44x
BAC Bank of America Commercial Bank 10 2.02 165.3B 17.70 16.45 15.22x
HDGE Advisor Shares Ranger Bear ETF 10.98 11.04 X 10.65X if filled
GLNG Golar Liquefied N.G. Hedging NA 30.39 3.14B 37.97 32.44 30.50
SAN Santander Banking world-wide 14 2.34 91.6B 6.60 7.10 6.80
DSX Diana Shipping Dry Cargo Shipping N/A 3.7 611 7.16 6.60 5.90

 

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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.

 

CONTACT

 

Please Direct All Inquiries To:

 

Mike King

(702) 650-3000

mike@princetonresearch.com