Market Strategies

Balanced Investing

Options Trading and

Stocks To Buy Newsletter

 

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)

To Read The Market Investing Strategies Newsletter In Adobe PDF Version – CLICK HERE

http://www.princetonresearch.com/3-26-2012-Market-Strategies.pdf 

 

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

and you will automatically be included.

 

$10,000 OPTIONS ONLY ACCOUNT

New Trades for this week:

BUY 5 PAY APRIL 50 CALLS @ $1.90 OB
BUY 6 PPO APRIL 35 PUTS @ $ .95 OB

The $10,000 Options Only account had a Gain last week of $75 increasing our gains for the year from $4,107 to $4,182.

 

Six positions remain:

The S April 2.5 Calls,

LMT April 90 Calls,

BAC April 10 Calls,

KBH April 11 Calls,

ARIA April 15 Calls and

IWM April 84 Calls. 

 

The Open positions are highlighted in the options table below.  Approximately $ 3859 funds are in use.

Comments: We had a slightly positive week in this account, but the more important issue from my prospective is that in both this and the bigger $100,000 account we now have positions that are profitable and ready for what seems like major moves higher.

Fortunately the political headlines faded a bit and hopefully the Republicans can get to the business of starting to make it “us vs. them” instead of the constant infighting. Europe continues to be a problem despite all the promises that the issues have been settled, and the Middle East issues won’t go away.  That’s not really a big surprise since they’ve had centuries to ferment. I am looking for the market to move higher again but IF we run out of gas (no pun intended) we will be quick to be sellers and take on some new short positions.  The month of April during a presidential election year tends to produce a soft market and we will certainly be mindful. 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
3/23	Sold 5 LNG April 15 Puts	1.40		700	200 Gain
3/23	Bought 10 KBH April 11 Calls	.34	340
3/23	Sold 5 KBH April 10 Calls	.95		475	190 Gain
3/23	Sold 5 KBH April 10 Calls	1.14		570	285 Gain
3/23	Bought 10 KBH April 10 Calls	.57	570
3/22	Sold 5 RCII April 35 Puts	1.05		525	325 Loss
3/22	Bought 20 BAC April 10 Calls	.36	720
3/21	Bought  6 ARIA April 15 Calls	1.10	660
3/20	Sold  5 OXY April 105 Calls	.56		280	275 Loss
3/19	Bought 5 RCII April 35 Puts	1.70	850
3/19	Bought 6 IWM April 84 Calls	1.29	774
3/16	Bought  5 LNG April 15 Puts	1.00	500
3/16	Bought 15 S April 2.5 Calls	.39	585
3/12	Bought 5 OXY April 105 Calls	1.11	555
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

 

SELL SHORT 150 RCII @ $36.20 OB

BUY 1500 MVIS @ $3.00 OB, protect with $2.81 Stop close only

 Last week we were stopped on S. We remain long a good number of small cap stocks, most of which have nice gains and we have raised stops on some.

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 19 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

 

Sell the 100 shares SDS mkt.

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

BUY 10 PAY APRIL 50 CALLS @ $1.90 OB

 

 

Option and overall Comments

We had a Loss last week of $90 in a down week. Our gain for the year was $11,993 and with last week’s Loss has decreased to $11,903.  We have Seven long options positions remaining, the CSCO Jan 20 Calls, S April 2.5 Calls, LMT April 90 Calls, BAC April 10 Calls, KBH April 11 Calls, ARIA April 15 Calls and IWM April 84 Calls. The stock table includes Thirteen long stock positions: AIVN, SNTS, LVLT, CLWR, PDLI, CISG, ABR, DVR, AEZS, LEI, LEOM, XBOR (a double) and SDS. The SDS is a double inverse SP500 ETF, DZZ is a double inverse Gold ETF.

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 $7,958 in the options positions and $ 61,805 in the 13 long stock positions for a total of $ 69,763 with $ 30,237 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 19 and newsletters dating back to July 20, 2009.                                                                                                       

                                                                  

                                This Weeks’ Economic Numbers and Media Data

 

Economic Data

 

Economic Data continues to enhance the bullish confidence for investors in America. Leading Economic Indicators as well as the decline in unemployment claims continue positive unabated.

 

The Leading Economic Indicators published by the Conference Board jumped 0.7% in February, the largest monthly increase since March 2011, even above the 0.6% consensus. Two categories contributed the surprise 0.1%, both manufacturing: (1 ) Nondefense Capital goods excluding aircraft and (2) Manufactured orders of Consumer Goods.

 

Initial Unemployment Claims fell again last week to 348K down to March 2006 levels. Continuing Claims fell to 3.352 mln for the week ended March 10^th. The decline in initial Claims suggests that payroll growth will exceed 200,000 for a fourth consecutive month.

 

Housing starts and new Home Sales were down slightly. New Home Sales declined 1.6% February while Existing Home Sales fell to an annual pace of 4.59 million units down from 4.63 mill units the prior month.

Housing Starts fell to an annualized rate of 698,000 down from the upwardly revised 706,000 in January.

 

The modestly bullish data in America overshadowed very weak PMI data from Europe and China. The PMI in China dropped below 48. Anything below 50 implies a contracting economy. Otherwise it would have been a much more concerted bull week.

 

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

 

Nasdaq was the leader last week the only index to post a gain led by Apple ( AAPL: $ 596.05 ). Apple had traded up to 609.65 on news of a quarterly dividend to be paid of $ 2.65/share starting the fourth quarter of 2012. In addition they will begin a $ 10 billion a share repurchase program in fiscal 2013. Apple holds $ 100 billion in cash.

 

The dollar was very strong Thursday closing at a new high for the week which was depressing to both stocks and precious metals, but it reversed course Friday. Bonds were down sharply the entire quarter but finally rebounded for an up-week. Bonds fell irregularly from a high of 124.02 Dec 19th to a low of 109.69 last week before the modest rebound. The present level of the 110 area is major support. During this entire period of thirteen weeks, the only up-week with a higher close was February 2^nd.

Other notable corporate announcements this week include better-than-expected earnings and upside guidance from Accenture (ACN 64.88, +1.36). Nike (NKE 107.42, -3.57) announced an upside earnings surprise of its own, along with a double-digit annual percentage increase in futures orders. FedEx (FDX 92.38, -0.12), Discover Financial (DFS 33.83, +1.34), and Oracle (ORCL 28.55, -0.08) all announced upside earnings surprises this week. Tiffany & Co. (TIF 71.45, -1.03) reported earnings that came short of the consensus estimate, but the company made up for that failure by offering strong guidance. Financial plays and bank stocks provided leadership at the start of this week, but the sector later wavered. On Friday the Financial sector advanced 0.9% so that it was flat for the week. Up 21% year to date, Financials are still the top performers into the first three months of 2012.

Technical Information

 

Support Levels:   S&P 500           1383; 1377                  Resistance S&P 500   1415; 1421

                                DOW            13,040;12890              Resistance DOW        13,220; 13,340

                                QQQ             6673; 6591                  Resistance QQQ          6755; 6809                     

                                Nasdaq          3045; 2990                  Resistance Nasdaq     3092; 3148                                

 

CYCLES

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 will be in the news prominent again early next week. The bull market is intact very much reinforced by contracting volatility. Doubters should just pull up a chart of the VXX to see how it has been consistently declining. Lower volatility reinforces the bull. The bull has to be fed every-day and both hedge and mutual funds should be adding to positions in month-end window dressing.

         

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. AIVN is merging with Placer Gold of which Princeton or its principal owns shares and is a director. Cross Border paid us 25,000 restricted shares several months ago and we bought and own another 25,000 purchased at higher prices. 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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