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June 1, 2015
Market Strategies Newsletter
Sample Issue
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, Charles Moskowitz
Where To Invest In 2015
Stock Options Trading Newsletter Covering:
Where to Invest June 2015
Best Stocks To Buy June 2015
Stock Market Investing Strategies
Stock Options Trade Alerts
Options Trading Strategies
How To Trade Options
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Market Strategies
$10,000 Trading Account Traders Comments
We have six open long positions:
DD June 70Calls
GRPN July 7 Calls
SNSS July 2.50 Call
TXN June 55 Calls
VA June 30 Calls and
XLF June 24 Calls
Funds in use = $2368
Does anyone remember Stagflation??
Week 21 was a slow grind for us. We added new positions in GRPN 7/7 calls and SNSS 7/2.50 calls, bringing our number of positions to 6 with $2,368 of funds in use. Surprisingly most of our open positions are either very minor losses or good gains.
It looks to me as if we are at support in the S&P500 as well as very near important support in the DJ-20 (transports) between 8235-8250. Since we are already broken and followed thru the near term supports, the cost of “insurance” is too high for me to make new put purchases. If you add that to the fact that each and every break that has looked like the end of the world has arrived has been followed by yet another rally to new highs.
We are receiving a great many cross-currents among some of the top companies in the U.S.
Take a look at AA. We’ve made great money on the move from $8 (when it was dropped from the Dow) to the $15 range in both options and the actual stock. Since early January until today the stock is down from $17 to $12.50 or nearly 30%. If it gets anywhere closer to $12 I will step back into the options. We still own the stock in the $100,000 account.
I’m also of the opinion that the coming increase in rates is well overdue and it will greatly help what I consider to be the second most important group…Financials. The increase in rates and a steepening yield curve will greatly help the banks and cause them to increase lending across the board. This would have a positive effect on the earnings power of a group that has had abysmal results. We are already long the XLF June calls.
Stagflation is defined by stagnation in the economy during a period of very slow growth along with higher inflation and high unemployment. If you’re old enough to remember
Gerald Ford one of his “programs” was WIN…Whip Inflation Now… So you may ask, Don’t we have low inflation and low unemployment?? The answer isn’t as simple as it may seem.
If you follow the Labor Department number of 5.4% we are approaching what is considered “Full Employment.” However, if you follow the wider definition and include the U6 number of those who are underemployed or working part time because they can’t get full time, or have simply given up on looking the number doubles to well over 10%. Ask any newly minted
MBA who is working at Macys how they feel about whether the debt they’ve incurred was worth the time and money they expended.
On the inflation side the number is also somewhat deceptive. As I’ve mentioned in this space more than just a few times, I do the shopping for my family so I am acutely aware of pricing.
The games of changing the amount you receive by changing the manner in how pricing takes place abound. If you’re used to buying by the ounce or pound and now are faced with metric weights you have no clue. If you buy an already roasted chicken you are charged by the item. My experience is that the chicken that used to cost $5.49 is now $6.99 up 27.2%. If you take the time to really look around your grocery store it is undeniable that prices are up, and weights and measures are lower. So the bottom line is if you are getting less or paying more, there is some inflation.
There will be no new trades in this letter as I need to see if we hold support or really break lower.
The market is quiet (volume wise) and since the Sell in May and go away clearly didn’t work and all the “talking heads” are asking if we are in for a “June Swoon,”
I’m going with “Never sell a quiet market after a decline.”
… CAM
Market Strategies $10,000 Trading Account Trade Table
DATE | TRADES | PRICE | COST | PROCEEDS | RESULTS |
05/29 | Bought 10 SNSS July 2.50 Calls | 0.30 | 300 | ||
05/26 | Bought 15 GRPN July 7 Calls | 0.14 | 210 | ||
05/22 | Bought 10 VA June 30 Calls | 0.60 | 600 | ||
05/15 | Sold 2 TXN June 55 Calls( 100% Profit Rule Leaves 2 lots open ) | 1.80 | 360 | $ 180 Gain | |
05/14 | Bought 4 May 29th S&P 210 Puts | 1.20 | 480 | ||
05/13 | Bought 4 DD June 70 Calls | 1.60 | 640 | ||
05/11 | Bought 6 XLF June 24 Calls | 0.76 | 456 | ||
05/11 | Bought 4 TXN June 55 Calls ( filled on June 12th ) | 0.90 | 360 |
Remember, these trades are based on your participation in the
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Previous closed out trades not listed here may be seen in previous market letters in the VIP Subscribers Members Area.