Market Strategies

Covering High Return Balanced Investing Success Strategies For

Stocks ■ Bonds ■ Interest Rates ■ Natural Resources ■ Currencies ■ Venture Capital ■ Gold

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

 

 April 2, 2012

Market Strategies

Guide to Successful Trading

To subscribe to the Options Only Acct Trades simply TEXT the word UPDATES to 69302

and you will automatically be included. 

To Read This Market Strategies Newsletter In Adobe PDF Version – CLICK HERE – http://www.princetonresearch.com/4-2-2012-Market-Strategies.pdf 

 

$10,000 OPTIONS ONLY ACCT

 New Trades for this week:

BUY 2 AMZN  APRIL 200 CALLS @ $4.75

BUY 5 KRO  MAY 25 CALLS @ $1.45

The $10,000 Options Only account had a Gain last week of $535 increasing our gains for the year from $4,182 to $4,717.

 

Five positions remain:

The CLNE April 22 Calls,

S April 2.5 Calls,

BAC April 10 Calls,

ARIA April 15 Calls and

IWM April 84 Calls. 

 

The Open positions are highlighted in the options table below.

Approximately $ 3699 funds are in use. 

This week contained the reminder that we are not alone or exempt from problems around the world. China and Spain came back to the forefront to make sure that we come to the realization that a soft economy and overbearing debt are restraining global growth.

 

Of course, China’s slowdown is predictable and we certainly wish our economy was struggling to grow at a rate equal to theirs. The consumption economy will have to grow to the extent that the export economy slows, and again, this is normal and expectable.

 

The political climate remains stuck along partisan lines on any and all subjects. The Supreme Court will keep us in suspense until June before handing down there decision on Obamacare while the Sunday morning pundits all tell us how things are going to turn out.

 

We had gains on both the long and short side of the market this week, again showing why it’s important to continue to maintain a balanced approach to investing. At week end we are long small-caps (IWM), financials, biotech and natural gas (CLNE). I expect that now that all of the end of Q1 cross-currents are over, we can settle back into finding stocks that have been basing and buying support and taking advantage of the breakouts….CAM

 

ALSO: FOR THE BIG ACCOUNT… 

We have continued to move stops on the open positions from their original technical points to cost plus commission and finally to represent the continued moves higher.  In this way, we continue to build equity in our open positions as well as to protect the account from allowing profits to erode….CAM 

 

Remember, these trades are based on your participation in the

TEXT MESSAGE TRADE ALERTS SERVICE TO RECEIVE ALL UPDATES.

TEXT the word UPDATES to 69302 To Get In Now

 

Previous closed out trades not listed here may be seen in the March, February and January weekly newsletters. See past issues at http://www.princetonresearch.com/market-strategies-newsletter/

 

DATE	TRADE	PRICE	COST	PROCEEDS	RESULTS
3/29	Bought 15 CLNE April 22 Calls	.64	960
3/29	Sold 3 PPO April 35 Puts	1.70		510	240 Gain
3/29	Sold 3 PPO April 35 Puts	1.85		555	285 Gain
3/26	Sold 10 KBH April 11 Calls	.17		170	170 Loss
3/26	Bought 6 PPO April 35 Puts	.90	570
3/26	Sold 6 LMT April 90 Calls	1.60		960	180 Gain
3/23	Bought 10 KBH April 11 Calls	.34	340
3/22	Bought 20 BAC April 10 Calls	.36	720
3/21	Bought  6 ARIA April 15 Calls	1.10	660
3/19	Bought 6 IWM April 84 Calls	1.29	774
3/16	Bought 15 S April 2.5 Calls	.39	585
3/12	Bought  6 LMT April 90 Calls	1.30	780

New trades $ 10,000 account…In Texting we have a limited amount of words. In the interest of brevity: OPTIONS ONLY: 4 April, 5 May . The Quantity and Strike Price for each trade is specific.

For any questions please call 702 650 3000

 

 

Market Laboratory – Weekly Changes

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

M1…all money in hands of the public, Time Deposits Traveler’s Checks, Demand Deposits

M2 adds Savings and Money market Accounts both compared with the previous year.

 

New Stock Recommendations

 

BUY 2500 CWTR @ MKT

BUY 1200 EXM @ $1.90

 Last week we bought MVIS and CLNE, Shorted RCII and sold SDS.
We were stopped on MVIS. With a Text Alert we bought IYT.

We remain long a good number of small cap stocks and we have raised stops.

 Each stock is allocated a theoretical $ 5,000 share of the portfolio unless otherwise indicated.

Note: Previous closed out stock and option positions can be found in the March 26 and newsletters dating back to July 20, 2009.  Stay alert on the free texting service for new trades and exits.

 

 

 

Model Portfolio Comments/Changes:

 

WE WILL BE WINDING DOWN SOME OF THE OPTION TRADES IN THIS ACCOUNT SINCE A GREAT MANY OF OUR SUBSCRIBERS DO NOT HAVE THE TIME TO FOLLOW MANY OF THE TEXT UPDATES WHILE WORKING.  WE WILL USE OPTIONS FOR THEIR VALUE OF LEVERAGE WITH THE HIGH-PRICED STOCKS THAT WE CANNOT BUY

ROUND  LOTS.  THIS MAY HINDER OUR ABILITY TO PRODUCE OUTSIZED GAINS, BUT WE BELIEVE THAT OUR BALANCED APPROACH IS STILL THE BEST WAY TO BE CONSISTENT AND PROFITABLE.

 

INDEX OPTION RECOMMENDATIONS

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, SDS and TZA, 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.

 

New Stock Option Recommendations

Option and overall Comments

We had a Loss last week of $1323 in an up week. Our gain for the year was $11,903 and with last week’s Loss has decreased to $10,580.  We have Five long options positions remaining, the CSCO Jan 20 Calls, S April 2.5 Calls, BAC April 10 Calls, ARIA April 15 Calls and IWM April 84 Calls. The Stock table includes fourteen long stock positions: IYT, CLNE, AIVN, SNTS, LVLT, CLWR, PDLI, CISG, ABR, DVR, AEZS, LEI, LEOM, XBOR (a double) and one short position; RCII.

 

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 $5,718 in the
options positions and $ 74,892 in the 14 long stock positions and one short for a total of $ 80,610 with $ 19,390 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 account

• Text UPDATES to 69302.
• 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
• Subscribers can follow us on Twitter or call  702 650 3000 for up to date information.

 

Note: Previous closed out stock and option positions can be found in the March 26 and newsletters dating back to July 20, 2009.   

                                                                                                

                                This Weeks’ Economic Numbers and Media Data

 

Economic Data

 

Economic Reports were slightly negative last week, which helped weaken the dollar and gave a little support to bonds which were still down on the week, 112.20 vs 117.50 but off the low of 109.69. However, markets were little fazed by any of the reports: Consumer Confidence fell to 70.2 from71.6 last month. Durable Goods came in at a plus 2.2% for February but below the consensus of 2.8%. Even Unemployment Claims had a bad week, rising against the trend by 9,000 to 359,000. GDP at 3.0% was in line, but was for the fourth quarter and not too interesting, but nearly two thirds of this advance was due to inventory building. Labor market gains have also been fair, but seasonal adjustments and unseasonably mild winter weather could be responsible for the bulk of the recent gains, not the economy. With the exception of a few select technology companies, earnings estimates are also being curtailed.

 

Fundamentals (previous letters may be seen at www.princetonresearch.com)

 

It was a week of little change but positive led by a weak dollar and window dressing. The Dow led all indices up 1.0% followed by the S&P 500 + 0.81%; Nasdaq up 0.77% and Transports gaining 0.68%. The Russell was just barely ahead +0.03%. The dollar fell 0.55% on the week, while volatility edged higher up 4.59%. Even though lethargic, the Dow reversed last weeks’ losses with a modest gain of 131.31 ( 1.0% ) but could never take out the highs of the previous two weeks, ominous in itself thus foreboding negative possibilities for the coming week.

 

Nasdaq has had 13  weeks of consecutive gains, while the Dow and S&P had eleven winners out of the last 13. and all along volatility cooperated but now deserves close watching as the bull seems a bit tired. The Dow broke above its 50-day M.A. the first week of the year, never looked back and is up 1,072 points or 8.8%. Put/Call ratios declined ( see above table ) quite sharply last week and although the bears are quite prominent their numbers declined taking away some short-covering ( Put Selling ) support.

 

Energy stocks staged a small recovery last Friday but still fell 0.5% for the week. The SCO ( Ultra Short ETF ) rose from 31.88 Thursday to 35.16 Friday, a gain of 10.2%. Crude oil Stocks are gaining robustly much faster than demand can keep pace. As a result Oil and Gas was second worst performer last week off 0.71%. Basic Materials was off 0.04%. Telecommunications fell 1.34%.

 

Health Care led all ten Dow Industrial Groups up 2.68% followed by Utilities plus 1.08% and then Technology 1.06%. Consumer goods gained 1.01% and Industrials 0.73%.

 

Technical Information

 

      Support Levels:   S&P 500           1399; 1383                  Resistance S&P 500   1415; 1421

                                        DOW            13,100; 13040             Resistance DOW        13,220; 13,340

                                        QQQ             6743; 6659                  Resistance QQQ         6836; 6906                     

                                       Nasdaq          3045; 2990                  Resistance Nasdaq      3102; 3157                                          

                                    

CYCLES

 

Bull mkts make highs early in month and dip into middle of month and close month firm.

So this week should be strong testing the highs but not by much.
Ben Bernanke’s lectures on the failures of financial policy during the depression years does no harm to equities. In fact it has been reassuring to those worried about economic contraction. He was be in the news prominent again last week recognizing employment growth to be slower than usual in a recovery atmosphere. Though we expect a bit more upside in the early part of April, if  MACD Sell indicators are triggered next week, Trader’s Almanac will issue a Sell Signal and adjust their portfolios accordingly.

          

                    Rule 17B requires disclosure of payment for investor relations*

 

Princeton Research has received about $ 2,500 per month from Lucas ( LEI ) marked with an asterisk.    Princeton has been paid for investor relations in the past and has negotiated a contract to be paid 100,000 restricted shares from Leo Motors. In addition Princeton has bought shares. Princeton is paid by Baron Energy ( BROE ) to do investor relations in the amount of 300,000 shares. Princeton has also bought separate shares about 327,600 and owns the shares for its own account. Cross Border paid us 25,000 restricted shares several months ago and we bought some. We sold part of our position at about what we paid. We do not currently represent Cross Border.

 

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 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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