Where To Invest November 2016
Read the October 31, 2016
Where to invest November 2016
Investing Strategies Newsletter in .pdf format here
October 31, 2016
Market Strategies Newsletter – Sample Issue
Where To Invest November 2016
Where To Invest 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 2016 Newsletter Covering:
Where To Invest November 2016
Investing Trade Alerts
Text Message Investing Alerts
Options Trading Alerts Service
Undervalued Small Cap Stocks
Stocks To Buy With Stops November 2016
Proven Trading Profits
Results From Recent Text Message Investing Trade Alerts:
58% Profits on SPY Nov 2nd Puts n 3 Days
55% Loss on SPY Oct 28th Puts in 5 Days
123% Profits on SPY Oct 19 Puts in 2 Days
300% Profits on SPY Oct 12 Puts in 2 Days
15% Profits on SPY Oct 19 Puts in 2 Days
50% Loss on LMT Calls in 1 Day
45% Profits on SFM Calls in 6 Days
50% Profits on TBT Calls in 8 Days
86% Profits on AA Calls in 6 Days
66% Profits on SPY Puts in 2 Days
47% Profits on SLV Calls in 3 Days
58% Profits on SUN Calls in 3 Days
85% Profits on SPY Puts in 3 Days
82% Profits on SLV Calls in 2 Days
51% Profits on AA Calls in 7 Days
157% Profits on NEM Calls in 4 Days
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Where To Invest November 2016
Options Investing Trade Alerts
Charles Moskowitz Discussion
This market has me pretty perplexed since as I have stated (and included the chart of the S&P500 in prior issues). I believe we are in a well-constructed “Bear Flag”. The problem with this particular formation is that if it goes on for too long without breaking lower, it becomes just another consolidation for a move higher. In the past two weeks we have had several tests of the 2150 area all of which have failed. While it has broken the uptrend lines, it has yet to close below its low close of 2125.77.
We’re only $0.64 above that close and $11.69 from the low print after the massive $53 break in early September. The other issue is that seasonally this tends to be a positive time for the market. The massive neutral sentiment numbers (now well over 30% above historical norms) means that there are plenty of dollars to jump in on either side. I guess that the point here is that the market is dramatically over anxious.
The S&P500 was trading around the high of the day @ 2140 when news on the FBI’s new email news hit and in three 5 minute bars it fell to 2126. It stabilized for a bit and then sold off further to a new low on the day @ 2119, an almost 1% decline in less than an hour with really no clarification of what the actual new might entail; then in the next hour back to unchanged only to finish slightly lower (-6.63 or -.31%). For these reasons I am keeping positions small and will text new trades to subscribers.
Options Investing Trade Alerts Summary
DATE | TRADES | PRICE | COST | PROCEEDS | RESULTS |
10/28 | Bought 4 SPY November 4th 212 Puts | 1.29 | 516 | ||
10/28 | Sold 2 SPY November 2nd 214 Puts
Sold 2 SPY November 2nd 214 Puts |
1.85
1.89 |
370
378 |
134 Gain
142 Gain |
|
10/25 | Bought 4 SPY November 2nd 214 Puts | 1.18 | 472 | ||
10/24 | Sold 4 SPY October 28th 213 Puts
( 50% Loss Rule plus Gap ) |
0.46 | 184 | 228 Loss | |
10/19 | Bought 4 SPY October 28th 213 Puts | 1.03 | 412 |
3rd Week expiration when the month is listed without a date
Previous closed out trades not listed here may be seen in previous market letters in the
VIP Subscribers Members Area.
Remember, these trades are based on your participation in the
Subscriber Members Only
TEXTING SERVICE TO RECEIVE ALL UPDATES.
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Where To Invest November 2016
Undervalued Small Cap Stocks
Lower Priced stocks that look to be a buy:
Repro-Med Systems,Inc ( OTCQX: REPR 0.41 )*
For the quarter ended August 31st, net revenues were $3,147,930 compared with $3,166,177 in the comparable quarter last year. REPR had strong organic growth both domestically and internationally in the quarter as well as new customer wins, which are expected to continue going forward. Results were masked by the non-recurring contribution from a large clinical trial last year. Net revenues increased in Q2 compared with Q1 of the current fiscal year by 5%.
For the six months ended August 31st, net revenues were $6,138,096, an increase of 5.9% compared with $5,796,722 for the same period last year, driven by increased sales of infusion products to existing customers as well as the addition of new customers.
For the three months ended August 31st, gross profit was $1,954,592 compared with $2,006,729 for the same period last year. RMS continues benefiting from lean manufacturing initiatives to streamline operations, which have resulted in increased capacity and decreased direct assembly labor costs, as well as the moratorium on the medical device tax. For the six months ended August 31st, the gross profit margin increased 2.6% to 63.4%, up from 60.8% for the same period last year. Gross profit for the six months ended August 31st was $3,891,404 compared with $3,524,589 for the comparable period.
RMS continues to incur professional fees related to regulatory and litigation and has made significant investment over the last twelve months in its sales, regulatory and operations management to help launch RMS to the next level of growth. As a result, the Company reported for the quarter ended August 31st, a net loss of $82,612, compared to net income of $335,214 in the same period last year. For the six months ended August 31st, net loss was $315,928 compared with net income of $270,574.
Enzo Biochem ( ENZ: $ 5.93 )*
Enzo Biochem stock moved from approximately $5 a share to approximately $7.00 from May 1 to July. In the last few days Enzo stock has been under heavy pressure. There is nothing fundamental to cause the slide in price. So the business model remains in place and hopefully will add new products over the remainder of the year. They completed the 2016 fiscal year at the end of July and probably had a cash position of some $65 million and no debt to speak of. When the stock cleared the $7 level, the Relative Strength Index was over 70, which is overbought. That $7 number was a 4 year high The last two days has brought the Index close to 30 which is oversold and we should see a bounce in the stock price this week.(just a guess) We have to remember the Russell Indexes that bought close to 3 million shares in late June also shorted close to a million shares as a hedge. That short position declined by some 300,000 shares from July 1 to July 15.
Over the rest of the year we could see more AmpiProbe panels being approved; NIH comments on the Optiquel trial for Uveitis; positive outcomes in the litigations.
The stock is oversold and the upside opportunity becomes bigger. The fundamentals haven’t changed and in fact have become stronger with the latest AmpiProbe approval. Enzo has cash of $50 million and no debt. There are 7 more cases to get settled in Delaware which can provide significant additions to the cash position. AmpiProbe will have more submissions to the New York regulatory agency this year. AmpiProbe is cheaper, better and faster than existing technology and that is a $3 billion market.
This is an awesome potential for a 47 million share company and who knows what will happen if the NIH has positive statements on their Optiquel test for Uveitis. The stock is 50% owned by Institutions and funds, 15% by insiders and I guess 10% by hedge funds. That leaves some 11 million shares in the float. If the Russell causes 2-3 million shares to be bought the float then become 8-9 million shares. Good news can really move the price.
Pressure BioSciences PBIO ( 0.34 )*
Pressure BioSciences has identified significant “needs” and the means to fill them in the world of today and the foreseeable future:
NEEDS IN MEDICINE: In the world of medicine our dramatically improved ability for early detection or to confirm and refine diagnosis ranging from over a hundred types of cancer to tuberculosis and a hundred other maladies and conditions is “bottlenecked” by 30 year old methods of preparing test samples. Collectively such diagnostic samples exceed a hundred million annually.
NEEDS IN RESEARCH: Globally there are over a half a million medical and pharmaceutical research scientists working in over eighty thousand laboratories who are hampered by the time consuming and outdated methods of preparing test samples.
NEEDS IN FORENSICS: Globally, in millions of cases, swift and sure exoneration of the innocent and / or justice for the guilty is often delayed or even denied because of the ponderous means of preparing and conducting DNA and other forensic testing.
PBIO is focused on solving the challenges of biological sample preparation, a crucial laboratory step performed globally by the biological life sciences research scientists. Sample preparation refers to a wide range of activities that precede most forms of scientific analysis. It is often complex, time-consuming and, in our opinion, one of the most error-prone steps of scientific research. Sample preparation is a ubiquitous laboratory undertaking – the requirements of which drive a large and growing worldwide market. PBIO has developed and patented a novel, enabling technology platform that can control the sample preparation process while improving both efficacy and quality. It is based on harnessing the unique properties of high hydrostatic pressure. This process, called pressure cycling technology, or PCT, uses alternating cycles of hydrostatic pressure between ambient (normal atmosphere) and ultra-high levels i.e., 35,000 pounds per square inch (“psi”) or greater to safely, conveniently and reproducibly control the actions of molecules in biological samples, such as cells and tissues from human, animal, plant and microbial sources.
The PBIO pressure cycling technology uses proprietary and internally developed instrumentation that is capable of cycling pressure between ambient and ultra-high levels at controlled temperatures and specific time intervals, to rapidly and repeatedly control the interactions of bio-molecules, such as deoxyribonucleic acid (“DNA”), ribonucleic acid (“RNA”), proteins, lipids and small molecules. Their laboratory instrument, the Barocycler®, and their internally developed consumables product line, which include Pressure Used to Lyse Samples for Extraction (“PULSE”) tubes, and other processing tubes, and application specific kits such as consumable products and reagents, together make up their PCT Sample Preparation System (“PCT SPS”).
The PBIO pressure cycling technology takes a unique approach that has the potential for broad use in a number of established and emerging life sciences areas, which include:
- Biological sample preparation in potentially thousands of research laboratories worldwide working in human, animal, plant, and microbial diseases and disorders – including but not limited to sample extraction, homogenization, and digestion in genomic, proteomic, lipidomic, metabolomic and small molecule study areas;
- Pathogen inactivation (useful in vaccine development, infectious disease research, and more);
- Protein purification, and in the control of chemical reactions, particularly enzymatic (useful in drug design and development);
- And immunodiagnostics (useful in the development and detection of biomarkers).
INTELLECTUAL PROPERTY
PBIO has secured their technology through fourteen issued United States patents and ten issued foreign patents covering multiple applications of pressure cycling technology in the life sciences field. They also have additional patents pending. Research indicates that Pressure BioSciences Inc is the ONLY Company globally to have patents in this new science sector.
Night Food, Inc. NGTF ( 0.10 )*
is a wholly-owned subsidiary of Night food Holdings incorporated in Nevada in 2013 to manufacture and distribute healthy-choice bedtime snacks. The Company has an exclusive agreement with RFI, natural ingredient manufacturer and proprietor of Chocamine, a patented chocolate ingredient
Americans keep gaining more weight. People have the tendency to grab for goodies at the end of the evening as they relax to enjoy some T.V. Eating and snacking too late at night is a contributing factor to gaining weight. Seventy percent of adults, ages 18-54, eat right before bed. Chocamine delivers the health benefits of chocolate to the body (amino acids, minerals and polyphenols) without the added sugars, caffeine or fat.
People give in to the intense hunger cravings that leads to the consumption of sugary, salty or calorie dense foods to satisfy their appetite. Most of the snacks that people typically eat create a disturbance in sleep, causing a person to wake up feeling unrested. Night Food offers nutrient filled alternatives to high-calorie junk foods. There are flavor filled snack bars-either Cookies and Dreams or Midnight
Chocolate Crunch that will help curb hunger, satisfy cravings, improve rest and give the body essential vitamins and minerals.
Consumers spend over $50 billion/ year on night-time snacks, nearly 1 billion a week. More people desire healthy alternatives to late night consumption of the traditional fattening ice cream, chips and cookies.
Sugar and caffeine in most snacks causes disruptive sleep. Each bar has only 142 calories and 5 grams of fiber for slow absorption of energy and gives a feeling of fullness and satisfaction. There is also 132 mg of calcium and zinc for replenishing the body and feeling well rested in the morning.
iSIGN Media Solutions ISDSF ( 0.085)
iSIGN Media Solutions ( ISDSF: $ 0.085 )y Announces Signed Contract Between We Build Apps and a Major Shopping Complex Located in Ohio. The contract covers installation of 500 Smart Antennas into a first Shopping Complex; Minimum Revenue to iSIGN is $2.7 million Canadian.
Recent news has pushed it above its 30 day moving average and it had exceeded $0.15 Canadian on a high volume breakout. The stock has been disappointing failing to move above its next resistance at $0.20 and move towards its 2 yr high of $0.28.
The Crocker people and their 22 developments could bring iSign significant revenues. Homeland Security and a major insurance company deemed the smart antenna as a safety device as well as a security device making the potential for new markets is limitless. One deal brings in 3 million times that by 20 deals because the insurance company theoretically gives a 20-25% premium discount to companies that use the smart antenna.
According to the iSign Media reseller, JEA Technologies, eHealth Consortium Group’s intention is to start installations in hospitals located in the State of Victoria.
Leo Motors LEOM ( $ 0.19 )*
Leo Motors ( LEOM: $ 0.19 )* has patents for the electric battery industry which we will be writing about in upcoming weekly reports. They have developed a lithium battery that can operate vehicles in sub-zero climates. Their subsidiary LGM has developed battery technology supported by the Korean government to make it possible to use electric battery technology for fishing boats. They have a cartridge system which is a light-weight replacement method of swapping electric batteries.
Fishing has been harmed by the noise and oil leaks from internal combustion engines. LGM has solved that problem and besides eliminating the toxic problem, operating costs are reduced by 25%.
In addition they have a special patent for averting electric hazards and shocks. Leo developed the Internet of Things for e-boats which is networked and connected with an Android Operating System. Leo’s power supply system is CAN ( Controller Area Network ) based, which enables mobile diagnosing between mobile devices and boats using the Leo technology.
Leo is developing a battery swap system for Kalmado in Puerto Princesa, Philippines, a world famous tourist attraction, which is focused on green energy. They will be converting 100 boats as the environment is expected to become 100% free of the toxicity from internal combustion engines. Also, Leo has developed a battery swap system for Go-Karts to be used in malls in China, Korea and Myanmar. Leo Motors has a new carbon nanotube battery power pack that functions and supplies full power in extreme low temperatures such as below 49 degrees without the need for grid electricity.
Where To Invest November 2016
Stocks To Buy November 2016
Fundamental Analysis Stocks To Buy with Stops
Using fundamentals the following are stocks to trade hypothetically. They have done well.
The table is hypothetical. We have taken numerous profits as indicated on the table below.
Balance is critical.
The Boeing closed over the 50-day M.A. at $ 132 in early October thus suggesting a long position. Defense spending is on the upswing.
We bought Bristol Myers at $49.20 with a stop loss at 47.42.
We sold short the Amazon at 828 .
We are long FFIC at $ 19.10 and very much interested in the Flushing Financial.
You should have bought the HDGE on a close above 9.65. We paid $ 9.76 on a theoretical buy on the opening Sept 12th. Stop-loss at $ 9.47.
Symbol | Name | Business Description | PE | P/S | MV mln | Price | Buy or Sell Limit | Stop Loss
Or offset |
SAVE | Spirit Airlines | Discount Airline | 12 | 1.5 | 3.5B | 48.05 | 46.15 | 43 |
AMZN | Amazon | Catalogue and Mail Order | 200 | 3.18 | 388B | 776.32 | 828 Sold Short
10/24 16 |
800x |
BMY | Bristol Myers | Manufacturer
Biopharmaceutical |
28 | 4.8 | 83B | 51.00 | 49.20 | 49.42x |
DY | Dycom | Materials. Construction Cell Towers internet Infrastructure | 25 | 1.1 | 2.7B | 75.45 | Buy 83 | 81.80x
stopped out on 10/26/2016 |
BA | Boeing | Aerospace, commercial jetliners, military systems | 14 | 0.85 | 81B | 143.01 | Long at
132 |
Stop at 129.70 |
HL | Hecla Mining | Basic Materials | 44 | 3.61 | 1.7B | 5.81 | 3.95 | Try to get Long |
FFIC | Flushing Financial | Bank Holding company Savings and loans | 13 | 3,5 | 592Mln | 21.30 | 19.10
06/27 |
19.90x |
AA | Alcoa | Aluminum Processing and Technology | N/A | 0.4 | 9.5B | 28.37 | 21.15 originally bought 2/8/16 | Must hold 30
No new position |
T | AT&T | Communications | 36 | 1.54 | 211.7B | 36.51 | 34.10 | No Current position |
VA | Virgin Air | Regional Airlines | 7.2 | 0.9 | 1.5B | 54.56 | 30.30
Bought 02/10/16 |
Sell to take profits |
ENZ | Enzo Biochem | Life Sciences | NA | 1.35 | 134M | 6.00 | Bought
at 5.13 10/7/16 |
Must hold 50 day m.a. |
BAC | Bank of America | Commercial Bank | 10 | 2.02 | 165.3B | 16.68
|
Bought at 15.42 | 14.60x |
HDGE | Advisor Shares | Ranger Bear ETF | 9.88
|
Bought at 9.76 | 9.47sco |
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Where To Invest November 2016
Stocks To Buy
$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) |
||
AMBA 100 | 63.75 | 10/13 | |||||
LMT 20 | 233.20 | 10/10 | |||||
SAM 20 | 156.69 | 10/07 | |||||
SCO 20 | 83.31 | 09/28 | |||||
SAM 20 | 151.30 | 09/23 | |||||
SPXU 150 | 24.70 | 09/13 | |||||
HDGE 300 | 9.76 | 09/12 | |||||
SCO 20 | 87.22 | 08/16 | |||||
AA 500 | 10.43 | 07/25 | |||||
SPXU 200 | 23.86 | 07/14 | |||||
HL 1000 | 3.95 | 05/03 | |||||
MOS 200 | 27.53 | 05/02 | |||||
EYES 500 | 5.04 | 04/04 | |||||
EYES 1000 | 6.49 | 12/28 | |||||
TWTR 200 | 28.51 | 10/28 | |||||
MOS 100 | 43.55 | 08/14 | |||||
NBGGY 600 | 1.40 | 02/17 | |||||
SAN 600 | 8.40 | 12/16 | |||||
AA 500 | 14.21 | 10/16 | |||||
TEXQY* 200 | 6.56 | 7/11 | |||||
REPR* 5000 | 0.22 | 10/22/12 |
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.
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 November 2016
Market Strategies $100,000 Trading Account
There were two closed out options positions:
SPY October 213 Puts were sold on the 50% Loss Rule plus an unfortunate Gap down for a loss of
$ 456.
The SPY November 2nd 214 Puts were profitable; 2 lots sold at 1.85 and 2 at 1.89 for a gain of $ 552.
There were no closed out stock positions.
For the entire year on closed out trades, our hypothetical profits gained by $ 96 to $21,224.
The options expire on the third Friday of each Month unless otherwise posted.
The Stock table has the following 21 positions:
AA ( 2 ) ,AMBA, EYES ( 2 ), FAST, HL, MOS( 2 ), NBGGY,
REPR, SAM ( 2 ), SAN, SCO( 2 ), SPXU ( 2 ), SPY, TEXQY, TWTR
The options call for a $ 2,500 investment unless otherwise stated; each stock position requires $5,000 unless otherwise mentioned specifically.
The money management is based on a hypothetical $ 100,000.
We are using a total of $81,149 for the 21 open long stock positions.
There is one option position, the 8 SPY November 212 Puts requiring $ 1032,
which totals $ 82,181 leaving $ 17,819 in cash.
These figures are approximate and there might be errors.
We have not counted the dividends received from many previous trades such as Apple, Colgate Palmolive, JP Morgan, Mosaic, North American Tankers, STNG, Santander, which pays over 5%, their Brazil affiliate BSBR and Blue Capital Reinsurance which was sold for a profit and many others. The trading is hypothetical and we do not count commission costs.
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.
Where To Invest November 2016
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) |
SPY Nov 4th 212
8 lots |
Puts
1.29 |
10/28/16 | |||
SPY Nov 2nd 214
8 lots |
Puts
1.18
|
10/25/16 | 1.85 Sold 4 lots
1.89 Sold 4 lots |
10/28/2016
10/28/2016 |
$ 268
$ 284 |
SPY Oct 28th 213
8 lots |
Puts
1.03 |
10/19/16 | 0.46
( 50% Loss Rule plus Gap |
10/24/2016 | ( $ 456 ) |
For Free Where To Invest Your Money Now
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Where To Invest November 2016
MARKET Laboratory – Weekly Changes
Prices are copied from Barron’s Weekly and Yahoo Finance and may be incorrect.
Dow
18,161.19 +15.48 +0.09% |
Nasdaq
5190.10 -67.30 |
S&P 500
2126.41 -14.75 -0.69% |
Transportation
8018.55 -8.10 -0.10% |
Russell 2000
1187.61 -30.48 -2.50% |
Nasdaq100
4805.59 -46.27 -0.95% |
Gold (spot)
1275.50 +9.60 +0.8% |
Silver
1779.60 +30.3 +1.7% |
Crude
48.70 -2.15 -4.2% |
Heating Oil
155.76 -3.50 -2.2% |
Unleaded Gas
1.4549 -0.0573 -3.8% |
Natural Gas
3.105 -0.256 -7,6% |
VIX
13.34 -2.78 -17.3% |
Put/Call Ratios
S&P 100 118/100’s -44/100’s |
Put/Call Ratios
CBOE Equity 59/100’s -9/100’s
|
Bonds
162-06 -2-20 2.62% + 0.13% |
10 Yr. Note
129-174-256 1.85%+0.11%
|
Copper
219.35 +10.50 +5.0% |
CRB Inflation
Index 189.21. -0.19 -0.01% |
Barron’s* Confidence
70.7 -0.1 |
S&P100
945.32 -4.34 -0.46% |
5 Yr. Note
120-234 -103 1.33% +0.09%
|
Dollar
98.35 -0.35 -0.4% |
DJ Utilities
661.99 +6.99 +1.07% |
AAII
Confidence Index
Average |
Bullish
24.8% +1.1%
38.4% |
Bearish
34.1% -3.7%
30.30% |
Neutral
41.1% +2.6%
30.96% |
M1 Money
Supply +11.76% Oct 10th
|
M2 Money
Supply +7.81% Oct 10th
|
* 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.
Where To Invest November 2016
Market Strategies Technical Information
Support/Resistance Levels: SUPPORT RESISTANCE
S&P 500 2114 2151
Dow 17,955 18,300
QQQ 114.20 119.50
Transports 7825 8125
NASDAQ 5100 5340
Where To Invest November 2016
This Weeks’ Economic Numbers
Earnings Releases and Media Data
This Weeks’ Economic Numbers and Earnings Releases:
Before the Open on top of the Row;
After the close, below the Economics information and News releases.
MONDAY | Cardinal Health CAH ( 1.20 vs 1.38 ) Honda HMC 61.84 vs 70.88 Next Era Energy NEE
1.67 vs 1.60 Williams Cos WMB 0.17 vs 0.22 Zimmer Biomet ZBH ( 1.79 vs 1.64 )
08:30 hrs Personal Income September ( +0.4% vs +0.2% ) Personal Spending September ( +0.5% vs 0.0% ) CORE PCE Price Index 09:45 hrs Chicago PMI October ( 54.0 vs 54.2 ) 10:00 hrs ISM Index October ( 51.7 vs 51.5 ) Amkor AMKR ( 0.20 vs 0.12 ) Anadarko APC ( -0,56 vs -0.72 ) Delek DK ( -0.20 vs 0.29 ) Olin OLN ( 0.33 vs 0.20 ) Tenet Healthcare THC ( 0.17 vs 0.29 ) Tesoro TSO 1.42 vs 6.13
|
TUESDAY | Archer-Daniels ADM ( 0.46 vs 0.60 ) Cummins CMI ( 1.96 vs 2.14 ) Eaton ETN ( 1.15 vs 0.97 ) Ecolab ECL 0.38 vs 0.61 Emerson EMR 0.89 vs 0.93 Kellogg K 0.87 vs 0.85 Martin Marietta MLM 2.60 vs 2.04 Royal Dutch RDS.A 0.24 vs 0.28 Sony SNE 13.89 vs 26.10 Thomson Reuters TRI 0.49 vs 0.52 ) Western Refining WNR 0.41 vs 1.69
10:00 hrs Construction Spending September ( +0.5% vs -0.7% ) 14:00 hrs Auto Sales October ( NA vs 5.30 Mln Units ) 14:00 hrs Truck Sales October ( NA vs 8.85 Mln Units ) Community Health CYH ( -0.35 vs 0.56 ) Devon Energy DVN 0.06 vs 0.76 ) Gilead Sciences GILD 2.85 vs 3.22 )Oneok OKE 0.42 vs 0.39 Sanmina SANM ( 0.66 vs 0.57 ) |
WEDNESDAY | AmerisourceBergen ABC ( 1.23 vs 1.21 ) Anthem ANTM ( 2.46 vs 2.73 ) Automatic data ADP ( 0.76 vs 0.68 ) Bunge BG 0.79 vs 1.24 Clorox CLX 1.42 vs 1.32 Delphi DLPH ( 1.43 vs 1.28 ) Estee Lauder EL 0.80 vs 0.82 Henry Schein HSIC 1.65 vs 1.55 Time Warner TWX 1.36 vs 1.25 TransCanada TRP 0.66 vs 0.62 Vulcan Materials VMC 1.10 vs 0.95
07:00 hrs MBA Mortgage Index 10/29 ( NA vs -4.1% ) 08:15 hrs ADP Employment Change October ( 165K vs 154K ) 10:30 hrs Crude Inventories 10/29 ( NA vs -0.553 Mln Bbls ) 14:00 hrs FOMC Rate Decision Nov ( 0.375% vs 0.375% ) American Intl AIG 1.20 vs 0.52 Avis Budget CAR 2.34 vs 1.98 CenturyLink CTL 0.55 vs 0.70 DaVita DVA 0.93 vs 1.12 Facebook FB 0.96 vs 0.57 Marathon oil MRO -0.19 vs -0.20 MetLife MET 1.18 vs 0.62 Qualcom QCOM 1.13 vs 0.91 Tutor Perini TPC 0.57 vs 0.68 Whole Foods WFM 0.24 v 0.24 |
THURSDAY | Agrium AGU 0.13 vs 0.71 Apache APA -0.14 vs -0.05 Avon AVP 0.04 vs -0.11 Becton Dickinson BDX 2.08 vs 1.94 Cigna CI 1.90 vs 2.28 Gartner IT 0.50 vs 0.45 Hyatt Hotels H (0.29 vs 0.30) IGT 0.44 vs 0.41 Level 3 LVLT 0.41 vs 0.48 Sprouts SFM 0.17 vs 0.21
07:30 hrs Challenger Job Cuts Oct ( NA vs -24.7% ) 08:30 hrs Initial Claims 10/29 ( 256K vs 258K ) 08:30 hrs Continuing Claims 10/22 ( NA vs 2039K ) 08:30 hrs Productivity-Prel 3rd Qtr ( +1.8% vs -0.6% ) 08:30 hrs Unit Labor Costs 3rd Qtr ( +1.2% vs +4.3% ) 10;00 hrs Factory Orders September ( 0.2% vs 0.2% ) 10:00 hrs ISM Services October ( 55.8 vs 57.1 ) 10:30 hrs Natural Gas Inventories 10/29 ( NA vs 73bcf ) Computer Sciences CSC 0.47 vs 1.19 EOG -0.31 vs 0.02 Kraft-Heinz KHC 0.74 vs 0.44 |
FRIDAY | AES AES 0.33 vs 0.39 Ameren AEE 1.37 vs 1.41 CenterPoint CNP 0.37 vs 0.34 Humana
HUM 3.13 vs 2.16 NRG 0.99 vs 0.18 Telus TU 0.68 vs 0.66 UNVR 0.20 08:30 hrs Nonfarm Payrolls October ( 175K vs 156K ) 08:30 hrs Nonfarm Private Payrolls October ( 170K vs 167K ) 08:30 hrs Hourly Earnings October ( + 0.3% vs +0.2% ) 08:30 hrs Unemployment Rate October ( 4.9% vs 5.0% ) 08:30 hrs Average Workweek October ( 34.4hrs vs 34.4hrs ) 08:30 hrs Trade Balance September ( -$38.5Bln vs -$40.7Bln ) Berkshire Hathaway BRK.B 3056.76 vs 2769 Endurance Specialty ENH 1.71 U.S. Oil Rig Count declined by 2 Rigs to 441 The Nat Gas rig count rose by 6 to 108, and there are two rigs listed as miscellaneous making a total US rig count of 557. . Crude closed lower at $ 48.70 down $ 2.15.The total rig count is lower by 230 from a year earlier. Natural Gas closed the week lower for the week, off 7.5% at $ 3.105 down $ 0.256. |
Where To Invest November 2016
Market Strategies Fundamentals
The past week was packed with earnings releases and the economic calendar also featured a few noteworthy reports, but all things considered, the S&P 500 respected a fairly narrow range. The index surrendered 0.7% for the week while the Dow Jones Industrial Average added 0.1% and the tech-heavy Nasdaq underperformed, falling 1.3%.
The advance estimate of third quarter GDP pointed to an expansion of 2.9% while the Briefing.com consensus expected a reading of 2.5%. The third quarter GDP Deflator came in at 1.5% while the consensus expected a reading of 1.4%. Economists were expecting a rate of 2.5%. The third-quarter rise in growth could help dispel any lingering fears the economy was at risk of stalling. Over the first half of the year, growth had averaged just 1.1 percent.
The underperformance in the Nasdaq was also mostly due to relative weakness in biotechnology. The iShares Nasdaq Biotechnology ETF (IBB) lost 2.7% for the week with Amgen (AMGN) falling 9.6% on Friday despite beating quarterly expectations. The Friday weakness in biotechnology was exacerbated by a poor quarterly showing from drug distributor McKesson (MCK -22.4%). The company’s report and guidance reminded that the pharmaceutical industry continues wrestling with pricing concerns that may become a regulatory issue once again, especially if Hillary Clinton wins the presidency.
However, Mrs. Clinton’s chances were called into question on Friday afternoon after Congressman Jason Chaffetz tweeted that the FBI is once again looking at the presidential candidate after new pertinent information came to the forefront. The news introduced uncertainty ahead of the upcoming election, knocking the stock market from its high. Interestingly, biotech names climbed off their lows after the news began making the rounds.
The US dollar ( DXYO: 98.35) -0.35 declined 0.4% last week. losing slightly after having three previous up weeks which took the greenback up to 98.70 from 94.42 an increase of 3.28 or + 3.3%.
Volatility ( VIX: $16.19 +2.85 ) declined 0.4% last week. Higher volatility is usually bearish for stocks. The more volatile ProShares Ultra Vix Short-Term volatility futures ( UVXY: $ 15.88 ) + $ 1.65 or +11.6% increased again, but less than the VIX. However, the index did close above its 13-day m.a.
One of the principal reason stocks, while overvalued, have remained resilient in the face of so many worries, the biggest of them being declining earnings, has been because there is little else out there in the investing world right now that can compete with equities on a total return basis.
Tutor Perini will be a beneficiary of enhanced infrastructure spending after the election regardless of who wins the presidency.
Where To Invest November 2016
Market Strategies Economic Data
Real GDP increased at a seasonally adjusted annual rate of 2.9% in the third quarter (Briefing.com consensus +2.5%), up from 1.4% in the second quarter and the highest rate since the third quarter of 2014. The GDP Deflator rose 1.5% (Briefing.com consensus +1.4%) after a 2.3% increase in the second quarter. Real final sales, which exclude the change in inventories, were up 2.3% versus up 2.6% in the second quarter.
As expected, the improvement was paced by personal consumption expenditures (contributed 1.47 percentage points), net exports (contributed 0.83 percentage points), and the change in private inventories (contributed 0.61 percentage points).
That was the first positive contribution from inventories since the first quarter of 2015, underscoring the point that businesses were re-stocking after an extended period of de-stocking.
The third quarter pickup was nice to see, yet it wasn’t all that one would want to see. Personal spending growth slowed to 2.1% from 4.3% in the second quarter, spending on equipment declined 2.7% (the fourth straight quarterly decline), and of course the re-stocking of inventories played a key role in pushing the growth rate up close to 3.0%.
The Export increase is the key to a U.S. economy which isn’t showing a ton of vitality. Incorporating the third quarter report, real GDP growth has averaged just 1.7% in 2016. However, exports increased 10%.
Altogether the third quarter real GDP report should be enough to convince the Fed to raise the fed funds rate before the end of the year, but it wasn’t convincing enough — nor is the earnings commentary out of the industrial companies — to suggest escape velocity is at hand.
Category | Q3 | Q2 | Q1 | Q4 | Q3 |
GDP | 2.9% | 1.4% | 0.8% | 0.9% | 2.0% |
Inventories (change) | $12.6B | -$9.5B | $40.7B | $56.9B | $70.9B |
Final Sales | 2.3% | 2.6% | 1.3% | 1.2% | 2.6% |
PCE | 2.1% | 4.3% | 1.6% | 2.3% | 2.7% |
Nonresidential Inv. | 1.1% | 1.0% | -3.4% | -3.3% | 3.9% |
Structures | 5.4% | -2.1% | 0.1% | -15.2% | -4.3% |
Equipment | -2.7% | -3.0% | -9.5% | -2.6% | 9.1% |
Intellectual Property | 4.0% | 9.0% | 3.8% | 4.5% | 2.1% |
Residential Inv. | -6.2% | -7.8% | 7.8% | 11.5% | 12.6% |
Net Exports | -$522.9B | -$558.5B | -$566.3B | -$566.6B | -$547.1B |
Export | 10.0% | 1.8% | -0.7% | -2.7% | -2.7% |
Imports | 2.4% | 0.2% | -0.6% | 0.7% | 0.7% |
Government | 0.5% | -1.7% | 1.6% | 1.0% | 1.0% |
GDP Price Index | 1.5% | 2.3% | 0.5% | 0.8% | 0.8% |
Durable Goods Orders for September were down 0.1% (Briefing.com consensus 0.0%), pulled lower by a 0.8% decline in transportation equipment orders. However, new orders in August were revised up to 0.3% from 0.0%.
Excluding transportation, durable orders increased 0.2% in September (Briefing.com consensus +0.3%) on top of an upwardly revised 0.1% increase (from -0.4%) in August Manufacturing activity remains spotty with minimal order activity that reflects the lingering sense of uncertainty about the demand outlook.
Category | SEP | AUG | JUL | JUN | MAY |
Total Durable Orders | -0.1% | 0.3% | 3.6% | -4.3% | -2.9% |
Less Defense | 0.7% | -0.7% | 2.9% | -4.0% | -1.6% |
Less Transport | 0.2% | 0.1% | 1.1% | -0.3% | -0.5% |
Transportation | -0.8% | 0.6% | 8.9% | -11.5% | -7.1% |
Capital Goods | 0.1% | -0.2% | 10.7% | -12.4% | -6.0% |
Nondefense | 1.5% | -3.9% | 7.7% | -10.9% | -1.7% |
Nondefense/nonaircraft (core cap gds) | -1.2% | 1.2% | 0.8% | 0.5% | -0.6% |
Defense Cap Goods | -7.7% | 27.4% | 38.4% | -24.3% | -30.1 |
Nondefense capital goods orders, excluding aircraft — a proxy for business spending — declined 1.2%. That wasn’t encouraging, yet the disappointment was mitigated somewhat by an upward revision for August to 1.2% (from +0.6%).
Shipments, which factor into GDP computations, were up 0.3% in September after being unchanged in August versus a previously reported 0.4% decline.
New orders for primary metals in September were down 0.3%. Similarly, there were declines in orders for fabricated metal products (-0.4%) and computers and electronic products (-1.0%).
Pockets of new order strength included machinery (+1.2%), electrical equipment, appliances and components (+1.5%), motor vehicles and parts (+1.2%), and nondefense aircraft and parts (+12.5%).
The Consumer Confidence Index, published by the Conference Board, fell to 98.6 in October from a downwardly revised 103.5 (from 104.1) in September. The downturn in October followed back-to-back monthly gains in the Index.
The Present Situation Index fell from 127.9 to 120.6. The Expectations Index dropped from 87.2 to 83.9
The key takeaway from the report is that consumers’ outlook for the labor market was less optimistic than in September, which is something that could curtail discretionary spending activity.
Category | OCT | SEP | AUG | JUL | JUN |
Conference Board | 98.6 | 103.5 | 101.8 | 96.7 | 97.4 |
Expectations | 83.9 | 87.2 | 86.1 | 82.0 | 84.6 |
Present Situation | 120.6 | 127.9 | 125.3 | 118.0 | 116.6 |
Employment (‘plentiful’ less ‘hard to get’) | 2.2 | 5.3 | 4.0 | 0.9 | -0.5 |
1 yr inflation expectations | 4.8% | 5.0% | 4.8% | 4.7% | 4.8% |
Single-family Home Sales jumped 3.1% in September to a seasonally adjusted annual rate of 593,000 from a revised August rate of 575,000 (prior 609,000). The September reading was lower than the Briefing.com consensus estimate of 610,000. Sales increased in all regions, with the exception of the West (-4.5%). The Northeast (+33.3%) led the way, followed by Midwest (+8.6%) and the South (+3.4%).
The median sales price of $313,500 increased 1.9% from last year while the average sales price rose 2.7% to $377,700. Notably, homes priced over $300,000 accounted for 57% of new homes sold in September versus just 49% in August, which perhaps speaks to some of the price and inventory constraints faced by lower-income buyers.
Based on the September sales pace, there is a 4.8-month supply of new homes for sale versus 4.9-months in August and 5.8-months in September 2015.
Where To Invest November 2016
Market Strategies Cycles
November begins the “Best Six Months” for the DJIA and S&P 500, and the “Best Eight Months” for NASDAQ. Small caps come into favor during November but don’t really take off until the last two weeks of the year. November is the number-three DJIA and number-two S&P 500 month since 1950. Since 1971, November ranks third for NASDAQ. November is best for Russell 1000 and Russell 2000 second best since 1979. The Stock Trader’s Almanac has more specifics.
November maintains its status among the top performing months as fourth-quarter cash inflows from institutions drive November to lead the best consecutive three-month span November-January. The month has taken hits during bear markets and November 2000, down –22.9% (undecided election and a nascent bear), was NASDAQ’s second worst month on record—only October 1987 was worse.
November’s is a mixed bag in presidential election years. DJIA has advanced in 9 of the last 16 election years since 1952 with an average gain of 1.5%. Significant DJIA declines occurred in 2008 (-5.3%) and 2000 (-5.1%). For S&P 500 November ranks second with a similar record to DJIA. NASDAQ, Russell 1000 and Russell 2000 are not as strong ranking #8, #6 and #8 respectively. Fewer years of data (11 for NASDAQ and 9 for Russell indices) combined with sizable losses in 2000 and 2008 drag down rankings and average gains.
Options expiration often coincides with the week before Thanksgiving. DJIA posted ten straight gains 1993-2002 and has been up 18 of the last 23 weeks before Thanksgiving. The Monday of expiration week had been streaky with the DJIA up five straight, 1994-1998, during the bulk of the last 20th Century bull market, down five in a row, 1999-2003, up three, 2004-2006, but has been mixed since 2007, up four and down four. The net result is a modestly bullish up eight of the last twelve. Options expiration day has a clearly bullish bias, up 12 of the last 14. The week after expiration has been improving lately with S&P 500, NASDAQ, Russell 1000 and 2000 up four straight.
Being a bullish month November has six bullish S&P days, though it does have weak points. NASDAQ and Russell 2000 exhibit the greatest strength at the beginning and end of November. Russell 2000 is notably bearish on the 12th trading day of the month (November 16, 2016), when the small-cap benchmark has risen just five times in the last 32 years (since 1984). The Russell 2000’s average decline is 0.49% on the day. Recent weakness around Thanksgiving has shifted DJIA and S&P 500 strength to mirror that of NASDAQ and Russell 2000 with the majority of bullish days at the beginning and end of the month. The best way to trade Thanksgiving is to go long into weakness the week before the holiday and exit into strength just before or after.
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
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Where To Invest November 2016
Investing Strategies Newsletter