High Yield Investing

Market Strategies 

January 6, 2014

Market Strategies Newsletter

Sample Issue

To Read the .pdf format of the newsletter – Click here

Covering High Yield 

Balanced Investing Strategies To

Make Money In Up Or Down Markets

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

 

Market Strategies Stock Options Trading

$10,000 Account

There are eight open positions:

CAT Jan $90 Calls

CF Jan $ 230 Calls

FCX Jan $36 Calls

DNKN Jan $ 47.50 Calls

NBG Jan 2015 $7 Calls

SLB January 90 Calls

SPY Jan 10^th 182.50 Puts

WTW Jan 35 Calls

 

Funds in Use $ 4,161

Market Strategies Stock Options Trading

$10,000 Account Traders Comments

 

For the week we had no closing trades.

 

YTD gains are $28,479

Over 284% Returns

The $10,000 Portfolio is worth $38,479

 

This is an excellent return, and makes the last 3 years gains progressively greater year over year.

 

For those of you who haven’t been a follower for that time frame, the actual returns were:

 

2011   77% (only 33 weeks)

2012  171%  full year

2013  284%  full year

 

I believe that the account is currently well positioned and with $4,161 in use, I will not initiate

any new trades tonight.  Our positions in both CAT and FCX have already been cut by

half based on our 100% UP Rule, and the balance are either slightly in or out of the money.

 

The position in SPY puts is a short term hedge against any continuing weakness in the coming week.

 

Personally, I am always unhappy with the turn of the year since it represents going back to

zero YTD returns.  However, I will continue to look for the opportunities where the risk can be quantified.  I get a lot of questions about why I am not more active in some of the “momentum” names, and the answer is simple…If I can’t have a defined risk in a name I don’t trade it.

 

Currently, I am watching FB (Facebook) as a short.  I’ve been bullish for the last several

months on the overall market but FB has formed a “bear flag” in the past 4 days or so

and although it has some support here I could easily see it test $46-48. I will watch for any rise

in price to initiate a position in the puts. In the coming year I intend to bring you a list of stocks

I am looking at on a more regular basis with what I see as support and resistance.

 

Statistically, we generally follow a great year with a good year, and I believe that picking

stocks will over-shadow the overall market as a means to better returns.

..CAM

 

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Market Strategies Stock Options Trading Chart

$10,000 Account

 

 

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.

 

Options Trading Strategies Notes: In Texting we have a limited amount of words. In the interest of brevity: we use 8=August , 9=September . The Quantity and Strike Price for each trade is specific.

 

The Quantity and Strike Price for each trade is specific.

 

We may trade weekly options and they are noted: SPY 1/25 147 for SPY Jan 25^th 147 calls or puts.

 

 

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

Market Strategies $100,000 Trading Portfolio

 

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 past

Market Strategies Newsletter issues available in the 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 Portfolio

Recommendations And Overall Comments

 

No New Trades

 

We had no closed out positions last week.

 

Our profits for the year came to $ 53,556

Returns of 53%

The $100,000 Portfolio Would Be Worth $153,556

 

We are not counting open positions losses of about $ 5,270.

We also have not counted dividends received on stocks like Apple, Nordic American ( NAT )

and JP Morgan.

 

We have eight long options positions:

 

The Stock table has the following 19 positions:

 

The options call for a $ 2,500 investment unless otherwise stated; each stock position requires $5,000 unless specifically stated.

 

We are basing money management on a hypothetical $ 100,000 and are using

$ 8,322 in eight options positions and

$ 62,498 in 19 stock positions

totaling $ 70,820 with $ 29,180 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 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

 

 

 

Note: Previous closed out stock and option positions can be found in past Market Strategies Newsletter issues available in the VIP Subscribers Members Area.

 

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:

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To Lock In Your SPECIAL Low Subscription Rate

 

This Weeks’ Market Strategies

Economic Numbers and Media Data

 

 

Market Strategies Economic Data

 

Auto and Truck Sales is the brightest area of the economy. At the beginning of the year expectations were for sales to reach 15.3mln units in 2013. At the current pace sales are exceeding all previous estimates.  Sales reached 16.4 mln units in November, the highest level since February 2007. Year over year sales increased 9% in November. Chrysler ( + 16% ) set November’s pace followed closely by GM up 14%. Ford rose 7%. Nissan sales also picked up in November, up 11%; Toyota gained a not too shabby 10% while Hyundai-Kia rose 7%.

 

December was not going to be as good having been affected by unusual holidays, a quirk in the calendar, inclement weather as much of the Midwest was buried in snow and of course huge competition from Christmas. Sales finished at 15.6 million units, still up 7.6% from 2012, while December results inched up 0.3%. The annual sales rate for the month was still a respectable 15.4 million units down a little from November.

 

Chrysler is majority owned by Italy’s Fiat. Last week Fiat announced they would buy the remainder of Chrysler that is owned by a United Auto Workers healthcare trust for $ 4.35 billion.

 

Market Strategies Trading Fundamentals

Although December got off to a bumpy start with a decline on its first trading day and weakness that lasted until mid-month, major indices rallied briskly to close out December with gains of 3% for DJIA, 2.4% for S&P 500, 2.9% for NASDAQ and 1.8% for Russell 2000. These gains brought full-year 2013 gains to a whopping 26.5%, 29.6%, 38.3% and 37.0% respectively for DJIA, S&P 500, NASDAQ and Russell 2000. Full-year 2013 was the best year for the markets in over a decade.

 

Interest rates rising is the biggest threat to continued stock market rallies. The Fed has quadrupled the size of its balance sheet to about $ 4 trillion. Last month the Fed cut its current quantitative easing program by $ 10 billion to $ 75 billion per month. Fed officials are watching employment numbers as a clue to further Fed action. U.S. unemployment  was 10% in 2009 and has now dropped to 7 % in November not that far from the Fed goal of 6.5% unemployment.

 

GDP surprised everyone by growing 4% in the third quarter, well above the 2% growth for most previous quarters since the recession ended in 2009. The Fed is looking for sustained economic growth which may not be friendly to stocks since costs of labor, money everything the market likes are likely to be much higher.

 

 

Market Strategies Technical Information

 

Support Levels S&P 500    1813

Resistance S&P 500           1854

 

Support Levels DOW          16,334 – 16,084

Resistance DOW                 16,564

 

Support Levels QQQ           86.86                  

Resistance QQQ                  87.75

                  

Support Levels Nasdaq      4084

Resistance Nasdaq             4187

                                         

     

Market Strategies Cycles

 

 

Santa was OK, but not great because Nasdaq was negative.

The January Effect Seasonal can be in play until February 15^th. However, one must consider

taking profits when offered as the individual stocks may have less merit.

 

Looking ahead volatility will be increasing: we have the dreaded employment report which

can have volatility if the rate is much different that 7% or if Nonfarm Payrolls are far from 200K.

Interest rate changes to the upside will hinder forward market progress.  Earnings season

begins Thursday afternoon when Alcoa reports.

 

Otherwise, it is possible that the full week or two of action ahead will influence the entire month and year.

When the first 3 days of the year are negative, ( as they were cumulatively ) there is a large chance that the year will be negative. Also, According to Ned Davis Research ( December issue of Barrons ) a 20% drop in the second year of the presidential cycle is possible. Also, years ending in “4” are bearish. However, they didn’t have QE.

 

The trend is still very much up. Any quiet sideways action is more likely friendly auguring for new highs. It is more difficult to get short than it is to go long because of volatility at the higher levels.

If going short is your choice, wait for your spots. Patience is very important.

 

 

Disclaimer – Rule 17 B Attestations

 

Princeton has approximately 2,581,578 shares of AIVN both free and restricted and represents them for I.R.. Princeton also has about 40,000 shares of TXGE. Princeton is paid $ 1,500 per month from RMS Medical Products. Princeton has bought 81,100 shares of RMS Medical Products. Princeton will be engaged by Target Energy. No contract is currently in place. When there is no movement in penny stocks, even though there is none or very small losses, we will liquidate if money is needed for better opportunities. We now believe the two small penny stocks ( REPR and AIVN ) we represent for a total outlay of $ 4,725 is well worth the risk. The Target ADR trades at about $ 4.50 in U.S. vs 0.045 in Australia. Princeton owns 400,000 Australia shares and about 500 U.S. ADR’s. Princeton is paid about 500,000 shares of Leo Motors.

 

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 e-mail issue. Princeton may buy or sell its free-trading shares in companies it represents at any time.

 

CONTACT

 

Please Direct All Inquiries To:

 

Mike King (702) 650-3000

mike@princetonresearch.com

 

Or

 

Charles Moskowitz (781) 826-8882

CAM@MoneyInfo-LLC.com

 

Princeton Research

3887 Pacific Street, Las Vegas, Nevada 89121

 

Phone: (702) 650-3000

 

Fax: (702) 697-8944

 

Visit: www.princetonresearch.com

 

 

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/investment-strategies.htm

 

To Lock In Your SPECIAL Low Subscription Rate