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 9, 2012

Market Strategies Guide to

Successful Trading

To Read The Market Strategies Newsletter PDF Version – CLICK HERE – http://www.princetonresearch.com/4-9-2012-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 ACCT

New Trades for this week:

The $10,000 Options Only account had a loss last week of $1639 decreasing our gains for the year from $4,717 to $3,078.

Four positions remain:

The SPY April 140 Calls,

KRO May 25 Calls,

ARIA April 15 Calls and

S April 2.5 Calls.

 

The Open positions are highlighted in the options table below.  Approximately $ 2,560 funds are in use.

This was an abysmal week for this account.  Part of the problem was the fact that we didn’t have enough balance in the positions, and the other issue was the fact that our markets were jerked around by the mess that Europe has become.

If you read my commentary you know that I absolutely do not believe anything that comes out of the EU.  They have made promises, some outright lies, that have lead the rest of the world to believe that everything is under control and will work out.

As Mr. Cramer stated in his now famous rant on the Fed several years ago,  THEY KNOW NOTHING… and frankly it should surprise no one that with the EU having no real power or ability to deal with all of the individual sovereign states, the odds dramatically favor a lack of accord and further problems.

Back here in the land of partisan politics we have the abilities but not the leadership to solve our jobs issue.  I focus on this issue because I believe it is the single most important that we face.  All other issues pale in comparison to the damage done to our collective psyche when we fear for our ability to support our families and better our lot in life.  The number of those who have given up is a national disgrace.  That those in power can continue to avoid responsibility and campaign on misinformation and manipulated statistics should make us all aware that we need to make our voices heard and our dissatisfaction known.  If not, we deserve what we get…….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 the March 26 and 2011 weekly newsletters.

DATE	TRADE	PRICE	COST	PROCEEDS	RESULTS
4/4	Sold 2 AMZN April 200 Calls	2.30		460	460 Loss
4/4	Bought  5 April SPY 140 Calls	1.58	790
4/4	Sold 6 IWM April 84 Calls	.65		390	384 Loss
4/3	Sold 15 CLNE April 22 Calls	.34		480	435 Loss
4/3	Bought 5 KRO May 25 Calls	1.05	525
4/2	Sold 20 BAC April 10 Calls	.18		360	360 Loss
4/2	Bought 2 AMZN April 200 Calls	4.60	920
3/29	Bought 15 CLNE April 22 Calls	.64	960
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

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

Last week we purchased CWTR and EXM, we were stopped on ABR, AEZS, CLNE and CLWR.
We remain long a 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 April 2 and newsletters dating back to July 20, 2009.  Stay alert on the free texting service for new trades and exits.

 

 

Model Portfolio Comments/Changes:

The $100,000 account had a negative week.  The light at the end of the tunnel is that almost 75% of the loss was generated was from one position that had bad news overnight and went from a 25% gain to a gap down open of 60%.  We have a great many gains built into our account and we have been moving our stops higher on a weekly basis.  Due to the jobs report on Friday, we expect a sharply lower open tomorrow and I am therefore changing all stops to “close only” status. This means that the stops will only be activated if the stocks close under the prices listed.  In the situation of a report issued when the market is closed for a holiday, there is the chance that the open will be more dramatic and therefore not as good an indication of what real values may be recovered by the close.   CAM

 

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 $2849 in a down week. Our gain for the year was $10,580 and with last week’s Loss has decreased to $7,731.  We have Four long options positions remaining, the CSCO Jan 20 Calls, S April 2.5 Calls, ARIA April 15 Calls and SPY April 140 Calls. The Stock table includes thirteen long stock positions: EXM, CWTR, IYT, AIVN, SNTS, LVLT, PDLI, CISG, DVR, 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 $4,310 in the options positions and $ 64,125 in the 13 long stock positions and one short for a total of $ 68,435 with $ 31,565 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 April 2 and newsletters dating back to July 20, 2009. 

 

This Weeks’ Economic Numbers and

Media Data 

 

Economic Data

The April Payroll number adding 120,000 new jobs was terribly disappointing, well short of the consensus which had forecasted 200,000 new jobs. The ADP report issued last Wednesday had expected an increase of 209,000 new jobs. The Unemployment Rate dropped to 8.2% from 8.3% as smaller numbers of disappointed job seekers were still looking for work. The Average Work Week remained at 34.5 hours and Hourly Earnings were the same up 0.2%.

This negative news followed a promising report from Global placement firm Challenger, Gray and Christmas who announced job cuts fell 8.8 percent from last year, Planned layoffs and firings are down from last March, the report says, another sign that the labor market is making a slow comeback. The ISM Manufacturing Report was slightly bullish at 53.4 vs expectations of 53.0.

Most other economic reports issued last week were negative: Factory Orders at + 1.3% were below the 1.4% expected. Likewise Auto and Truck Sales were 10.8Mln Units vs 11.4 Mln last month and Construction Spending fall 1.1% vs -0.8% last month and expectations of a 0.5% increase.

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

 

The Fed in their routine monthly FOMC comments last Tuesday put a damper on further quantitative easing and selling caused the stock market to fall sharply. Then, as though it was a warning as they get to see reports in advance, the employment report was a disappointment and all equities are much lower in after-hours trading.

 

All ten Dow Industrial Groups were lower led by Oil and Gas down 1.89%. Basic Materials was next off 1.81%. Financials fell 1.34%; Industrials 1.13%; Telecommunications 0.98% and Utilities 0.48%. Consumer Goods fell the least just down 0.02% as many retailers booked impressive same store sales results. Bed Bath and Beyond ( BBBY: $ 71.85 ) rose 9.2% for the week on a great quarterly report. Technology was only off 0.26% as Apple  (AAPL: $ 633.68 ) + 34.13 or 5.7% closed at a new all-time high.

 

Technical Information

 

      Support Levels:   S&P 500           1377; 1361.5               Resistance S&P 500   1399; 1415

                                        DOW            12890; 12740              Resistance DOW        13,100; 13,220

                                        QQQ             6659; 6577                  Resistance QQQ         6809; 6906                     

                                       Nasdaq          3036; 2972                  Resistance Nasdaq      3092; 3148                                          

 

CYCLES

 

New highs in the S&P 500 at 1422.38 the Dow at 13,297.11 and then the subsequent set-back the remaining three days set off MACD sell signals across the board as discussed in this section last week and illustrated in the Traders’ Almanac well-known for their seasonal forecasts.

 

“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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