Where To Invest Now
November 26, 2012
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)
Contributing Staff: Michael King, Bill Chippas, Charles Moskowitz
Market Strategies $10,000 Options Trading Account
New Trades for this week:
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Options Trading Strategies Comments
This was an excellent week for the account making $1,948
and bringing the YTD performance back up to $12,476
or almost 125%.
While the market has come back with a great Thanksgiving rally, the S. & P. 500 runs into resistance between 1420-1430 and I will not hesitate to buy puts to take advantage of what I expect to be another test of the 200 day moving average @ 1376.
I believe that the Dow Industrials and Transports do not look nearly as good. The best that can be said about these indexes is that they aren’t yet overbought. The QQQs have not even gotten back through the 200 day back to the upside.
Retailers seem to be happy with the new “Black Friday” which now starts Thursday afternoon but I have my doubts about what it will mean for the actual earnings for Q4. Deep discounts only help topline, and with all of the “We’ll match any price” plans, I’m guessing profits will suffer.
Have a great week….we’ll continue to balance our account management with trades in both directions….CAM
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 VIP Subscribers Members Area.
Note: In Texting we have a limited amount of words. In the interest of brevity: 8=August, 9=September. The Quantity and Strike Price for each trade is specific.
Market Strategies Laboratory
Weekly Changes
Prices are copied from Barron’s Weekly and Yahoo Finance and may be incorrect
Dow 13,009.68 +421.37 +3.35% |
Nasdaq 2966.85 +113.72 +3.99% |
S&P 500 1409.15 +49.27 +3.62% |
Transportation 5,051.76 +160.49 +3.28% |
Russell 2000 807.18 +30.90 +3.98% |
Nasdaq 100 2639.59 +105.43 +4.16% |
Gold (spot) 1751.30 +37.00 +2.2% |
Silver (Dec ) 3411.6 +174.6 +5.4% |
Crude 88.28 +1.61 +1.9% |
Heating Oil 308.68 +9.14 +2.2% |
Unleaded Gas 2.7204 +.0404 +1.5% |
Natural Gas 3.901 |
VIX 15.14 -1.27 -7.7% |
Put/Call Ratios S&P 100 104/100’s -16/100’s |
Put/Call Ratios CBOE Equity 60/100’s -13/100’s
|
Bonds 150-01-2-06 2.83% +0.11% |
10 Yr Note 133-104-276 1.693%+.123%
|
Copper 352.80 +7.65 +2.2% |
CRB Inflation Index 299.07 +5.51 +1.9% |
Barron’s Confidence 67.6% +1.0% |
S&P100 643.05 +24.02 +3.88% |
5 Yr Note 124-144-123 0.69%+0.08 |
Dollar 80.22 -0.96 -1.2% |
DJ Utilities 440.59 -2.49 -0.56% |
AAII Confidence Index |
||
Bullish 35.8% +7.0% |
Bearish 40.8% -8.0% |
Neutral 23.4% +1.0% |
M1 Money Supply +11.17% Nov 12th |
M-2 Money Supply +6.37% Nov 12th |
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
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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, whichgo 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 $ 4,226.00 last week.
Our gain for the year was increased to a hypothetical $48,835.
A Year to date return of over 48%
The options call for a $ 2,500 investment unless otherwise started, while each stock position requires $ 5,000 unless specifically stated.
We are basing money management on a hypothetical $ 100,000.00 and are using $ 6,464. in the four options positions and $ 61,140 in the 15 stock positions a total of $ 67,604.00 with $ 32,396.00 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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MARKET STRATEGIES NEWSLETTER ISSUES
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This Weeks’ Economic Numbers
and Media Data
Monday | 10:00 hrs Existing Home Sales Oct
( 4.75 mln vs 4.75 mln )
NAHB Housing Market Index ( 41 vs 41 )
President Obama visits Myanmar |
Tuesday | 08:30 hrs Durable Goods Orders Oct
( -0.4% vs 9.8% ) D.G. Ex-Transportation ( -0.4% vs 2.0% )
09:00 hrs Case-Shiller 20 City Index Sept ( 3.1% vs 2.0% )
10:00 hrs Consumer Confidence Nov ( 73.0 vs 72.2 )
10:00 hrs FHFA Housing Price Index Sep ( NA vs +0.7% ) |
Wednesday | 07:00 hrs MBA Mortgage Index
( 11/24 NA vs -2.2% )
10:00 hrs New Home Sales Oct ( 388K vs 389K )
10:30 hrs Crude Inventories 11/24 ( NA vs -1.466Mln bbls ) |
Thursday | 08:30 hrs Initial Unemployment Claims 11/24
( 395K vs 410K ) Continuing Claims 11/17 ( 3325K vs 3337K )
08:30 hrs GDP- Second Estimate 3rd QTR ( 2.8% vs 2.0% ) GDP Deflator- Second est ( 2.8% vs Same )
10:00 hrs Pending Home Sales Oct ( 1.0% vs 0.3% ) |
Friday | 08:30 hrs Personal Income Oct
( 0.2% vs 0.4% )
Personal Spending Oct ( 0.1% vs 0.8% )
CORE PCE Prices Oct ( 0.2% vs 0.1% )
09:45 hrs Chicago PMI Nov ( 50.7 vs 49.9 ) |
Market Strategies Trading Fundamentals
All ten Dow Industrial groups were much higher reversing the previous weeks’ trend. Basic Materials led all groups up 4.40% after falling 3.15% last week. Technology rose 4.38% almost double the amount of its 2.42%; loss the previous week. Consumer Goods gained 4.30%; Telecommunications added 4.01%; Oil and Gas 3.84%; Consumer Services 3.74%; Financials added 3.60%; Industrials rose 3.58% after losing 2.01%. Health Care added 2.86%. The only losing group was Utilities, off 0.55%.
Technology stocks were the second strongest group and gains were twice as strong as the losses from last week. Groupon ( GRPN: $ 3.95 ) + 1.05 or 36.2% led the way surprising the bears. As of the end of October 17.3% of the float was short. Research In Motion ( RIMM: $ 11.66 ) rose $ 2.87 or 32.7%. Taiwan Semi-Conductor ( TSM: $ 16.84 ) + 0.79 or 4.9%. Apple ( AAPL: $ 571.50 ) reversed its losing ways rallying a hefty 45.88 points up 8.7%. Cisco ( CSCO: $ 18.84 ) + 0.90 or 5%. IBM ( IBM: $ 193.49 ) + 7.87 or 4.3%. Even Microsoft made nice gains ( MSFT: $ 27.70 ) + 1.04 or 3.9%.
The Transport sector rebounded smartly. The IYT ( Transport ETF ) gained 2.8%. Union Pacific, JB Hunt Southwest Air and Ryder Systems, mentioned in the previous letter all had a nice week.
Market Strategies Economic Data
The Housing recovery continues to improve and now accelerate. Even Hurricane Sandy could not slow down the solid growth in numbers. Existing Home Sales gained to a 4.79 mln run rate in October from 4.69 mln in September. Many of the transactions were completed prior to the hurricane so as not to be deleterious to the trend. However, going forward may be more difficult as homeowners need to repair damages before transacting sales. Median home prices rose 11.1% to $ 178,000 in October.
Housing Starts in October rose to 894K from 863K which is the best showing since July 2008 when construction levels were trending lower. The number of homes currently under construction increased 1.8% from 508,000 in September to 517,000 in October. The improved steady improvement in housing will be an asset to current quarter GDP numbers.
Market Strategies Technical Information
Support Levels S&P 500 1378; 1388
Resistance S&P 500 1420; 1425
Support Levels DOW 12770; 12860
Resistance DOW 13164; 13240
Support Levels QQQ 6250; 6280
Resistance QQQ 6480; 6550
Support Levels Nasdaq 2830; 2880
Resistance Nasdaq 2940; 3040
Cycles
Strong tendency for stocks to rally into Thanksgiving. Bonds may go lower and Gold higher. Days before Thanksgiving call for going long Stocks and gold, short bonds until after the first few days of December
Whatever method you use to pick stocks, your ultimate success or failure will depend on your ability to ignore the worries of the world long enough to allow your investments to succeed. It isn’t the head but the stomach that determines the fate of the stock-picker. Peter Lynch ( Fidelity Investments Beating the Street 1994 )
NOTE: This is a Sample Issue Only!
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MARKET STRATEGIES NEWSLETTER ISSUES
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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.
When there is no movement in penny stocks, even though there is no or very small losses, we will liquidate when money is needed for other opportunities.
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
Visit: www.princetonresearch.com
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