Stocks to Buy and Options Trading Investment Strategies

Read the May 18, 2015 Where To Invest In 2015 Options Trading Newsletter in .pdf format – Click Here

May 18, 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 May 2015

Best Stocks To Buy May 2015

Stock Market Investing Strategies

Stock Options Trade Alerts

Options Trading Strategies

How To Trade Options

GAIN Last Week $396

Year To Date Profits $ 6,318

Over 63% Returns

2014 Profits = $ 20,443

Over 204% Returns

For Free Where To Invest Your Money Now

High Return Investments Trade Alerts

Go To: PrincetonResearch.com/alerts.htm

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

Visit: PrincetonResearch.com/join.htm

Market Strategies

$10,000 Trading Account Traders Comments

We have six open long position:

CRR June 45 Calls

DD June 70 Calls

ISRG May 29^th 510 Call

TXN June 55 Calls

SPY May29th 210 Puts and

XLF June 24 Calls

Week 19 produced a gain of $396 on the liquidation of the balance of our position in XLE puts and the sale of a half position on the 100% up rule on TXN 6/55 calls. Year to date gains now total $6,318 and our funds in use are $3,102 with 6 open positions.

This week produced some stunning divergences among the major indexes. While the S&P500 made new highs, it has formed (in my opinion) an “ascending triangle” and it actually remains UNDER its uptrend line from the bottoms at 1820 in Oct 2014, 1980 Feb 2nd, and 2064 on 3/13. While this uptrend line has been violated slightly on several occasions it helps to form a narrowing triangle that could go either way from here.

The reason I bring this up is that the DJ Transports are also dramatically divergent from the trend in both the S&P and DJ Industrials. The Transports are a solid 7% from their November 2014 high of 9310. The have also been flirting with the 200 day moving average and while I’m usually a buyer at support, the fact that the transports have been suffering while at the same time (Nov-April) the oil which fuels transportation has fallen from over $80 to $42 and has come back to $60.

On top of this, both retail sales and industrial production numbers have been poor and it wouldn’t be too much of a surprise to have the DJ Ind. and the S&P500 have some correction when we actually have a rate hike.

And by the way, I believe that the bond market, not the FED will give us that signal. Just because the 10 year notes got so oversold on Thursday and rallied hard does not indicate to me that rates have stopped moving higher. There are no new trades tonight since I rarely commit more than 30% of the original equity ($10,000) at any one time. The trade on Thursday was added specifically for balance within this portfolio. Watch the texting service since if the Transports hold I will probably buy IYT ETF calls as well to keep a ready trigger if the transports are right and the Industrials start to climb.

…CAM

Market Strategies $10,000 Trading Account Trade Table

DATE	TRADE	PRICE	COST	PROCEEDS	RESULTS
05/15	This information is for Members Get The Best Membership Deal HERE	1.80		360	$ 180 Gain
05/15		1.23		492	$ 216 Gain
05/14		1.20	480
05/13		1.60	640
05/11		0.76	456
05/11		0.90	360
05/08		1.91	764
05/07		1.97		788	$ 512 Gain
05/04		0.69	552
05/04		6.00	600

Remember, these trades are based on your participation in the

Subscriber Members Only

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:

The Quantity and Strike Price for each trade is specific. 1=January, 2=February

Trading is hypothetical. We may trade weekly options and they are noted: SPY 1/25 147 for SPY Jan 25^th 147 Calls or Puts.

For Free Where To Invest Your Money Now

High Return Investments Trade Alerts

Go To: PrincetonResearch.com/alerts.htm

MARKET Laboratory – Weekly Changes

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

Dow18,272.56+81.45

+0.45%

Nasdaq5048.29+44.74
+0.89%

S&P 5002122.73+6.63

+0.31%

Transportation8680.78-86.11

-0.98%

Russell 20001243.95
+9.02+0.73%

Nasdaq100 4494.29+35.64

+0.80%

Gold (spot)1225.50+36.40

+3.1%

Silver 1756.3+109.8

+6.7%

Crude59.69+0.30

+0.5%

Heating Oil200.48+5.11

+2.6%

Unleaded Gas2.0568+0.0650

+3.3%

Natural Gas3.016+0.136

+4.7%

VIX12.38-0.48

-3.7%

Put/Call RatiosS&P 100141/100’s

+25/100’s

Put/Call RatiosCBOE Equity59/100’s

-6/100’s

Bonds155-19 -202.92% +0.02%

10 Yr. Note128-01 +066 2.13%-0.01%

Copper292.45+0.40

+0.1%

CRB InflationIndex231.46

+2.30

+1.0%

Barron’s* Confidence77.8%+0.1%

S&P100933.12+2.43

+0.26%

5 Yr. Note120-062 + 081.46% –0.03%

Dollar93.23-1.59

-1.7%

DJ Utilities585.74+1.91

+0.33%

AAIIConfidenceIndex

Bullish26.7%-0.4%

Bearish26.4%-0.4%

Neutral46.9%+0.8%

M1 Money Supply+7.90%May 4^th

M-2 MoneySupply+5.55%

May 4^th

* Component Change in the Confidence Index

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.

Market Strategies Technical Information

Support Levels S&P 500 2088

Resistance S&P 500 2138

Support Levels DOW 17,860

Resistance DOW 18,218

Support Levels QQQ 106.90

Resistance QQQ 110.20

Support Levels NASDAQ 4950

Resistance NASDAQ 5120

$100,000 Trading Portfolio Stock Positions and Trades

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

Stock	Purchase Price	Purchase Date	Stop/Loss		Price/Date Sold		Profit/(Loss)
This information is for Members Get The Best Membership Deal HERE	38.68	05/01		44.03 05/12		$ 535
	72.90	04/29
	82.77	04/15
	34.46	03/23
	102.73	03/03
	8.02	02/24
	10.16	02/13
	1.40	02/17
	0.7411	12/26
	4.84	12/18
	16.84	12/18
	8.40	12/16
	3.10	11/28
	14.21	10/16
	34.99	09/09
	2.95	05/19
	0.407	03/14
	15.37	01/16
	4.08	8/12
	6.56	7/11
	0.22	10/22/12	.12 sco

Remember, these trades are based on your participation in the

Subscriber Members Only

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.

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, which go 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.

Market Strategies $100,000 Trading Account

There were two closed long option positions, the Texas Instruments ( TXN ) June 55 Calls making a gain of $ 360 and the remaining XLE May 22nd Puts with a profit of $ 432.

The net resulted in a gain of $ 792 for the week in options.

There was one closed out stock position, the Silver ( AGQ ) ETF resulting in a gain of $ 535, totaling $ 1327 in profits for the week.

For the full year to date, we have gains of $ 20,924.

Open position losses decreased to $ 6,204. There are six long Option positions: 8 CRR June 45 Calls; the 12 XLF June 24 Calls; 8 DD June 70 Calls; 2 ISRG Calls; 8 SPY May29th 210 Puts and the remaining 4 TXN June Calls. The options expire on the third Friday of each Month unless otherwise posted.

The Stock table has the following 20 positions:

AA, ARRY, BAC.B.WS, BCRH, BSBR, CRM, FB, FCX, GILD, IMAX NAT NBG (3), REPR, RPTP, SAN, TEXQY, XCO, XRGYF

The options call for a $ 2,500 investment unless otherwise stated; each stock position requires $5,000 unless otherwise specifically stated. We are basing money management on a hypothetical $ 100,000.00 and are using a total of $83,868.00 for the 20 open stock positions.

There are six long option positions requiring $ 6,204.00 totaling $ 90,072.00, leaving $ 9,928.00 in Cash.

These figures are approximate and there might be errors. We have not counted the dividends received from Apple, JP Morgan, BSBR ( Brazil ), Santander, Blue Capital Reinsurance and others. Blue Capital issued a special extra dividend of $ 0.66 per share which enabled us to reduce our cost by that amount. In addition it pays about 7% per year in regular dividends. We do not count commission costs and all trading once again is hypothetical.

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…

For Free Where To Invest Your Money Now

High Return Investments Trade Alerts

Go To: PrincetonResearch.com/alerts.htm

Previous Week’s Recommendations and

Rules for the Market Strategies

$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

Option	Cost	Date	Sold	Date	Profit/ (Loss)
This information is for Members Get The Best Membership Deal HERE	Puts 1.20	05/14/15
	Calls 1.60	05/13/15
	Calls 0.90	05/12/15	1.80 ( 100% Profit Rule )	05/15/15	$ 360
	Calls 0.76
	Calls 1.91	05/08/15
	Call 6.00	05/04/15
	Puts 0.69	05/04/15	1.97 Sold Half on 100% Rule 1.23 Sold Balance	05/07/15 05/15/15	$ 1,024 $ 432

Remember, these trades are based on your participation in the

Subscriber Members Only

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.

This Weeks’ Economic Numbers

Earnings Releases and Media Data

Earnings Reports Before the Open on Top of the Row;

After the Close are Below the Economics Numbers.

Monday	JA Solar ( JASO 0.07 vs 0.32 ) WP Carey ( WPC 1.04 ) 10:00 hrs NAHB Housing Market Index May ( 57 vs 56 ) Agilent ( A 0.39 vs 0.72 Orthofix ( OFIX 0.17 vs 0.29 ) Radiant Logistics RLGT 0.03 Take Two ( TTWO 0.28 vs 0.21 ) Urban Outfitters URBN ( 0.30 vs 0.26 )
Tuesday	Dick’s Sporting Goods ( DKS 0.53 vs 0.50 ) Home Depot ( HD 1.15 vs 0.96 ) Red Robin ( RRGB 0.88 vs 0.82 )TJX ( TJX 0.66 vs 0.64 ) Wal-Mart ( WMT 1.05 vs 1.10) 08:30 hrs Housing Starts April ( 1019K vs 926K ) Building Permits April ( 1065K vs 1039K ) Analog Devices ( ADI 0.72 vs 0.59 ) Computer Sciences ( CSC 1.20 vs 1.04 )
Wednesday	Hormel Foods ( HRL 0.62 vs 0.52 ) Lowe’s ( LOW 0.74 vs 0.58 ) Michaels Stores ( MIK 0.33 ) Staples ( SPLS 0.17 vs 0.18 ) Target ( TGT 1.03 vs 0.70 ) 07:00 hrs MBA Mortgage Index 05/16 ( NA vs -3.5% ) 10:30 hrs Crude Inventories 05/16 ( NA vs -2.191 Mln Bbls ) 14:00 hrs FOMC Minutes 4/29 Salesforce.com ( CRM 0.14 vs 0.11 ) Williams-Sonoma ( WSM 0.44 vs 0.48 )
Thursday	Best Buy( BBY 0.29 vs 0.33 )Dollar Tree ( DLTR 0.75 vs 0.67 )Kirklands ( KIRK 0.11 vs 0.12 ) Sears Holdings ( SHLD -2.59 vs -3.79 ) Trina Solar ( TSL 0.08 vs 0.37 ) 08:30 hrs Initial Claims 05/16 ( 270K vs 264K ) Continuing Claims 05/09 ( 2250K vs 2229K ) 10:00 hrs Existing Home Sales April ( 5.24 mln vs 5.19 mln ) 10:00 hrs Philadelphia Fed May ( 8.0 vs 7.5 ) 10:00 hrs Leading Economic Indicators April ( 0.3% vs 0.2% ) 10:30 hrs Natural Gas Inventories 05/16 ( NA vs 111bcf ) Aeropostal ( ARO -0.55 vs -0.52 ) Brocade ( BRCD 0.20 vs 0.19 ) Gap ( GPS 0.56 vs 0.58 ) Hewlett-Packard HPQ ( 0.86 vs 0.88 ) Intuit ( INTU 2.74 vs 3.53 ) Marvell ( MRVL 0.11 vs 0.27 ) Ross Stores ( ROST 1.28 vs 1.15 )
Friday	Ann ( ANN 0.32 vs 0.33 ) Campbell Soup ( CPB 0.52 vs 0.62 ) Deere ( DE 0.52 vs 0.62 )Foot Locker ( FL 1.23 vs 1.11 ) Hibbett Sporting ( HBB 1.13 vs 1.09 ) 08:30 hrs CPI April ( 0.1% vs 0.2% ) CORE CPI Apr ( 0.2% vs Same )

Market Strategies Fundamentals

The S&P 500 achieved a new all-time high closing record at 2,122.73, up just 0.31% for the week but enough to make history. The Dow moved up 81.45 points or 0.45% for the week but was not enough to push the Dow into new record territory. The Nasdaq Composite closed up to 5,048.29, a gain of 45 points for the week or 0.89%, but was down slightly, 2.50 points on Friday. The Dow Transportation average closed at 8,680.78, off 86.11 or 0.98% for the week as regulatory issues surfaced from the continuous train wrecks.

The Tranny closed right at its 13-day Price Moving Average, unable to break through and without a hint of direction. The VIX closed at 12.38, the lowest since November 8^th, 2014, too low to be bearish.

Mario Draghi, speaking in Washington, said that the ECB’s monetary policy stimulus will stay in place as long as needed for its objective to be achieved on a truly sustained basis.

Faith based stocks were not to be ignored, Netflix ( 602.81 )was up another 28.21 for the week after rallying 17.57 the previous week. For the five months gone this year NFLX is up 261 points or up 76.5% from its December 31, 2014 close at $ 341.61.Tesla ( TSLA: $ 248.84 ) rallied another 12.23 or up 5.2% following lat week’s gain of 10.58 or 4.7%. Tesla closed right at its all-time high. Amazon ( AMZN $ 426 ) -$ 7.69 or 1.8% was slightly lower on the week. Apple ( AAPL: $ 128.77 ) + 1.15 or 0.09% for the week, the world’s largest company by market cap is outselling both Xiaomi and Samsung in China.

The Euro had rallied above 113 against the dollar last week when it looked as if the Greece debt was insurmountable, but now it appears that they will soon make the first payment of EUR 773 mln to the IMF. The Greek bonds and some equities rallied on this.

Market Strategies Economic Data

Industrial production declined 0.3% in April for the fifth consecutive month, after declining an upwardly revised 0.3% (from -0.6%) in March. The Briefing.com Consensus expected industrial production to increase 0.1%. Manufacturing production was flat after increasing 0.3% in March. That was more-or-less in-line with the regional manufacturing surveys that showed minor contractions throughout the U.S.

Industrial production has been on a steady downturn since the end of 2014. The headwinds from low oil prices and a strong dollar are finally starting to waver.

Category	APR	MAR	FEB	JAN	DEC
Industrial Production
Total Index	-0.3%	-0.3%	-0.1%	-0.3%	-0.1%
Manufacturing	0.0%	0.3%	-0.2%	-0.6%	0.0%
Utilities	-1.3%	-5.4%	4.9%	3.3%	-5.0%
Mining	-0.8%	-0.1%	-2.1%	-1.2%	2.6%
Capacity Utilization
Total Industry	78.2%	78.6%	78.9%	79.2%	79.5%
Manufacturing	77.2%	77.3%	77.2%	77.4%	78.0

Market Strategies Cycles

Once again this pre-election year, the market is making a run at new all-time highs. Today, DJIA threatened its March 2 closing high of 18288.63 while S&P 500 closed a few points above its April 24 high of 2117.69. Bullish sentiment is running very low considering this point in the averages. The AAII Confidence Index is very low while the markets are continuing quite buoyant. But for all the attempts this year, no acceleration has taken place leaving ample opportunity for buyers who can identify risk. At yesterday’s close DJIA was up just 1.3% year-to-date and S&P 500 was a little better at 1.9%. This performance is well below the average pre-election year performance. Typically, by mid-May of a pre-election year, DJIA and S&P 500 would be higher.

Based upon a S&P 500 close of 2100, S&P Capital IQ calculates the S&P 500 (at 21.1x) is currently trading at a whopping 33% premium to the median of 15.9x earnings since 1936 using the S&P 500’s P/E on trailing GAAP EPS. This may not be the highest premium on record, but it is certainly another obstacle to new buying. It already has and shorts are getting whipped. Equities of course as Janet Yellen said, are not inexpensive and valuations are high.

Valuation at a Premium

No bell will be wrung to signal the top. Markets move anticipating the future. The expectations for the market are quite ebullient. Glamour stocks such as Netflix and Tesla are an example of leadership, glamour stocks including danger and froth in a bull market. According to S&P Capital IQ, first quarter 2015 earnings have beaten the low bar that existed at the end of March. Q1 estimates are now showing EPS growth of 2.9% compared to the expected 3% decline from a few months above. However, due to a large expected decline in energy sector earnings, which are horrendous, Q2 2014 earnings estimates, are predicting a small decline.

Bullish Sentiment Eases

Following early month market weakness, Investor’s Intelligence Advisory sentiment survey did show a decline in % bullish advisors from 52.5% to 47.5%, but % bearish advisors are still low at just 15.8%. This leaves the difference between the two at a still worrisome 31.7%. The AAII Investor Intelligence Sentiment published on page 3, suggests both bulls and bears have very low position inclinations. Both Bullish and Bearish sentiment levels are below 30% while Neutral is near 50%.

The combination of deteriorating seasonality, rather tepid Q2 economic numbers is not positive for the market. The unofficial start of summer, Memorial Day weekend, is just a week away. Using options with stops at a fifty percent exposure is the best strategy now to keep balance and still participate in the bull market.

Undervalued Small Cap Stocks

Spanish Bank Banco Santander (SAN: 7.58)

is ready to outperform right now. In the last six months, this $98 billion banking play has shed 30% of its market value, dragged lower by ongoing issues in the Eurozone financial system. But things could be about to change for long-suffering shareholders. SAN is starting to show signs of a bottom here. They will have better earnings having cut dividends.

Santander is currently forming a double bottom pattern, a bullish reversal pattern that looks just like it sounds. The double bottom is formed by a pair of swing lows that find support at approximately the same price level. The buy signal comes on a breakout through the peak that separates though two troughs. For SAN, that’s the $7.40 breakout level.

RMS Medical Systems, Inc ( REPR 0.425 )*

Has doubled this year already and can double again.

RMS designs, markets, manufactures portable easy to operate infusion devices, including needles and tubing. It is easy to handle by patients. The Freedom 60 is being marketed in Europe as well as gaining a footing among home-care professionals in America. The RescueVac is used in ambulances and planes for emergency suction.

Immune Therapeutics, Inc. (IMUN 0.08 )* Buy now. IMUN

is a specialty pharmaceutical company formed by patients funded by patients involved in the manufacturing, distribution and marketing of patented therapies to combat chronic, life-threatening diseases through the activation and modulation of the body’s immune system.

The Company’s technology platform is built on two different immunotherapies, Low Dose Naltrexone (LDN) and Methionine-Enkephalin (MENK). These proprietary technologies exploit the power of the body’s own immune system to find and kill diseased cells. We have bought the shares.

Low Dose Naltrexone (LDN) is a proprietary immunotherapy for the treatment of autoimmune diseases, HIV/AIDS, opportunistic infections, cancer and a range of other serious diseases. LDN works by boosting levels of endorphins (peptides produced in the brain and adrenal glands).

These natural peptides are also powerful modulators of the immune system. In order for the body to maintain good health and wellness, there is a balance of the immune system between the cellular (Th1) and the humoral (Th2) immune systems. Immune balance is regulated through T-helper cells that produce cytokines. The Th1 lymphocytes help fight pathogens that are within cells like cancer and viruses through activation of interferon-gamma and macrophages.

The Th2 lymphocytes target external pathogens like parasites, allergens, toxins through the activation of B-cells. In order for the body to maintain good health and wellness, there is a steady state of balance of the immune system between the cellular and humoral immunity as well as the regulatory T-cells that keep things under control.

When there is an excess of Th1 responses or cellular immunity conditions such as Crohn’s disease, Type 1 diabetes mellitus and graft versus host diseases result. When there is over activity of the humoral immune system the body over reacts to allergens or even itself (autoimmunity). And with less cellular surveillance cancer can occur. What the body needs to remain healthy is a balance of the immune system. LDN is a compound that works on the body’s natural opioid system to restore immune balance.

Symbol	Name	Business Description	PE	P/S	MV mln	Price	Buy Limit	Stop Loss Or sold
BAC	Bank of America	Commercial Bank	10	2.02	165.3B	16.11	16.45	15.22x
HDGE	Advisor Shares	Ranger Bear ETF				10.87	*11.04 X*	10.60X if filled
AA	Alcoa	Aluminum	11	0.66	16.06B	*13.82*	*13.03*	13.10stop
XOM	Exxon Mobil	Oil and Gas	11	0.96	351B	87.35	85.75	80
GLNG	Golar	Liquefied N.G. Hedging	NA	30.39	3.14B	48.30	32.44	30.50
SAN	Santander	Banking world-wide	14	2.34	91.6B	*7.61*	7.28	6.80
DSX	Diana Shipping	Dry Cargo Shipping	N/A	3.7	611	*7.23*	*6.60*	5.90
STNG	Scorpio Tankers	Oil Transportation	26	5.6	1.47B	9.50	7.46 unable	7.48

Where To Invest Now

Investing Strategies Newsletter and Trading Alerts Service

Best Stocks To Buy May 2015 – Investing Strategies Newsletter

Make Money In Up Or Down Markets

Where to Invest May 2015

Best Stocks To Buy May 2015

Stock Market Investing Strategies

Stock Options Trade Alerts

Options Trading Strategies

How To Trade Options

GAIN Last Week $396

Year To Date Profits $ 6,318

Over 63% Returns

For Free Where To Invest Your Money Now

High Return Investments Trade Alerts

Go To: PrincetonResearch.com/alerts.htm

Market Strategies Technical Information

Market Strategies $100,000 Trading Account

This Weeks’ Economic Numbers

Earnings Releases and Media Data

Market Strategies Fundamentals

Market Strategies Economic Data

Market Strategies Cycles

Undervalued Small Cap Stocks

For Free Where To Invest Your Money Now

High Return Investments Trade Alerts

Go To: PrincetonResearch.com/alerts.htm

Stocks and ETF’s bought over the past few weeks:

Best Stocks To Buy May 2015

Investing Strategies Newsletter