Where To Invest Now – Market Strategies Newsletter

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
+0.111
+2.9%

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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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!

 

TO GET OUR TRADE ALERTS BY TEXT MESSAGE AND

THE COMPLETE VIP MEMBERS ONLY

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

mike@princetonresearch.com

Visit: www.princetonresearch.com

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