January 27, 2014

Market Strategies Newsletter

Sample Issue

Where To Invest February 2014

Investing Strategies News

Covering High Return

Balanced Investing Strategies To

Make Money In Up Or Down Markets

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

 

Where To Invest February 2014

Investing Strategies

Options Trading $10,000 Account

Traders Comments

There are three open positions:

AA February 11 Calls

CLDX Feb 28^th Calls

RPT February 15 Calls

Funds in Use $ 1,743

 

This week we had a loss of $260 on our position in

National Bank of Greece calls on our 50% down rule. 

 

This brings out YTD performance to ($1,652)

 

Where To Invest February 2014

In 2013 YTD gains were $28,479

Over 284% Returns

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

 

The last 3 years gains have been greater year over year.

 284% Returns for $28,400 Profits In 2013

171% Returns for $17,100 Profits In 2012

77% Returns for $7,700 Profits In 2011 (only 33 weeks)

Given the dramatic decline in the averages this week, it appears that the long awaited correction may have finally arrived.  However, I remind everyone that we’ve been here before and have pretty much turned on a dime and headed higher.

Disappointing retail earning and continued inability of corporations to grow topline and start hiring instead of announcing further layoffs to “raise productivity” is getting to be a grind on the public psyche.

We may continue lower Monday but many of the bedrock industrials like GE or “big” techs like IBM have come down awfully hard and are nearing support while being fairly oversold.

I will wait to see what develops Monday before putting out any new purchases of puts or calls. 

Also we have the State of the Union address Tuesday evening and you can be sure new issues will add fuel to the fire.

Last week we had a great trade in AA and the pullback Thursday and Friday gave us the Opportunity to get back into the stock.  While I don’t generally give much weight to the fundamentals, I feel Alcoa has a tremendous upside.  This is based on two specific facts; first we have the fact that once a “low-priced” stock is taken out of the DJ-30, unless it is going out of business (EK), it generally acts better. Look at BAC as a good example, up almost 30%….and second, the use of aluminum by Boeing and the introduction of an all-aluminum Ford truck (saving 700+ pounds) means that this company can see a rebirth of demand.  Technically, AA could easily see $18.

…CAM

 

Where To Invest February 2014

Investing Strategies

Options Trading $10,000 Account Trades 

New Trades Will be Texted

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.

 

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Where To Invest February 2014

Investing Strategies 

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.

 

Where To Invest February 2014

Investing Strategies 

New Stock Recommendations

$100,000 Trading Portfolio

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

Recommendations will be both listed in this letter and texted to members.

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.

 

NOTE: This is a Sample Issue Only!

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MARKET STRATEGIES NEWSLETTER ISSUES

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Where To Invest February 2014

Investing  Strategies

$100,000 Trading Portfolio

Recommendations And Overall Comments

We had one closed out options positions last week and one stock position.

Our losses for the new year were reduced to $ 1,485

 

For the full year 2013 we had realized gains of $ 53,556.

We have open position losses of about $ 8,840 most of which are held over from last year.

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

We have three long options positions:

The Stock table has the following 18 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 $ 34860 in three options positions and

$ 63,100 in 18 stock positions

totaling $ 66,586 with
$ 33,414 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 

Where To Invest February 2014

Investing 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

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This Weeks

Where To Invest February 2014

Investing Strategies

Economic Numbers and Media Data

 

Where To Invest February 2014

Investing  Strategies Economic Data

Leading Economic Indicators were up slightly in December ( 0.1% ).Published by the Conference Board in New York City, an independent tax-exempt non-profit business membership  and economic research group independently funded by 1200 public and private corporations and other organizations as members. The table confirms a slow but steady improvement in most economic conditions. There are ten leading economic indicators as listed in the following table. There are also four Coincident Indicators and seven Lagging Indicators. For more information please go to the www.conference-board.org.

 

 

Market Strategies Trading Fundamentals

 

It appears that worries about China provided the spark for this ongoing fire sale. We have not talked about China as a big risk factor in previous remarks, and yesterday two items arose front and center. The first was a weak Purchasing Managers Index (PMI) reading, indicating China’s economy has begun to contract. The second was renewed worries about the Chinese shadow banking sector and possible loan defaults.

To begin, an HSBC survey of Chinese manufacturing fell to its lowest reading in six months. After a reading of 50.5 in December, January’s reading came in at 49.6. With PMI data, any value above 50 indicates expansion while a reading below 50 indicates contraction. Analysts were quick to note that there may be some distortions related to the data, but regardless, the news was unwelcome. It’s somewhat common for manufacturing statistics to deviate around the Lunar New Year (January 31st this year) as Chinese factories wind down ahead of a week-long holiday. Meanwhile, buy Alcoa ( AA: $ 11.44 ) on this pullback. AA is a world leader and innovator in bauxite mining and aluminum production. Go to the Cycles section to read more.

 

Where To Invest February 2014

Investing  Strategies Technical Information

Support Levels S&P 500    1823 – 1775

Resistance S&P 500           1814

 

Support Levels DOW          15,660

Resistance DOW                 16,384

 

Support Levels QQQ           86.26-84.86                  

Resistance QQQ                  87.90

                  

Support Levels Nasdaq      4084 – 4000

Resistance Nasdaq             4197 – 4240

    

Where To Invest February 2014

Investing Strategies Cycles

Alcoa ( AA: $ 11.44 ) has and remains an undervalued global innovator in lightweight metals, products and solutions so valuable in moving vehicles especially aircraft. With auto and truck sales booming as well as aircraft sales, AA should be in the limelight and a worthwhile fundamental play. Alcoa reached a high on April 12, 2011 at $ 18.06 and should be heading there now. The shares were beaten down for all of 2012 and 2013 and should also be considered a “January Effect ” type trade.  Many new lightweight aluminum aircraft products can be found on Alcoa’s web site. We remain committed to the long side in both options and shares.

The biggest winner so far among the January Effect trades which go until February 15^th, was Origin Agritech ( SEED: $ 2.17 ) ( $ 1.27 ) now up  63% was up 110%;  followed by Rare Element Resources ( REE $ 1.59 ) plus 36%. Target Energy * ( TEXQY: $ 4.59 ) now positive on the year.  Princeton Research has bought shares and is also doing I.R. for the company. Target was bid higher as it circulates the new U.S. shares. Target  has rallied on the Australian market where it trades as TEX.AX. where it trades at $ 0.05. The U.S. ADR is 100/1.

Weight  Watchers ( NYSE: WTW $ 29.09 ) ( $ 32.13 ) stopped out. Disappointing…made its high point for the year on March 26th 2012 at $ 77.60. January is the time for New Year’s resolutions for many over-weight people. Also, as of the end of November 7 million shares were short out of just 27.5 million in the float out of 56.5 million shares outstanding. This is a legitimate takeover candidate.

Walter  Energy, Inc ( NYSE: WLT $ 11.35 )  ( $ 14.79 )  Book value $ 13.24. As low coal prices improve such will also help this leveraged play. 23.15 million shares were short as of the end of November. The stock reached $ 17.02 on January 2^nd.

Nuverra Environmental Solutions ( NYSE: NES $ 13.79 ) ( 16.28 ) Has been another loser so far. Prospects in waste management and water recycling has made a partnership with Halliburton. The high for the year  2013 was $ 44.20. A bounce is likely from current depressed levels.

Target Energy* ( ADR: TEXQY $ 4.10 ) ( 4.19 ) This Australia based oil explorer and producer is very undervalued. Go to www.targetenergyusa.com . Drilling is in both the Permian Basin and Louisiana. For more information go to www.princetonresearch.com web site as we do investor relations for them.

 

Cirrus Logic ( CRUS: $ 19.08 ) ( 19.67 ) No debt and a current ratio of 6.12. A nice opportunity.

Final although the event continues until mid-February.

 

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 Email 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

 

Princeton Research

3887 Pacific Street, Las Vegas, Nevada 89121 

Phone: (702) 650-3000

NOTE: This is a Sample Issue Only!

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MARKET STRATEGIES NEWSLETTER ISSUES

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Where To Invest February 2014