January 13, 2014

Market Strategies Newsletter

Sample Issue

 Where to Invest Your Money Now

Read the Market Strategies Where To Invest Your Money Now

Newsletter in .pdf format – Click Here

 

Covering High Return 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 two open positions:

AA February 10 Calls

NBG Jan 2015, $7 Calls

Funds in Use = $ 975

 

Market Strategies Stock Options Trading

$10,000 Account Traders Comments

We had an inauspicious start to the new year with losses of $1,857, all on executions on the 50% Down Rule.

Remember:

In 2013 YTD gains were $28,479

Over 284% Returns

The $10,000 Portfolio was 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

Basically we got whipsawed with the up opens and later declines we witnessed almost every day.  Unfortunately at least one of those 50% closeouts was in CF, which then rallied $19 to close the week @ $246 (options $16+).

We will continue to look for these BIG trades.  Anyone who has followed this letter knows we generally have several per year and of course I’m always looking….

The losses were partially offset on a week over week basis by the fact that we also took profits in FCX and CAT on the 100% Up Rule.  Still, a losing week is a losing week…..

I should have known that with EVERYONE talking about the first day, or first week, or even the first FULL week of the year being the harbinger of another “good” year to follow the “great” year we just completed, that I should have been expecting what we actually got … no direction what so ever.

This week I will be updating the Open Positions pages at www.dashover.com and including some names I am watching with both support and resistance along with which options I intend to utilize.  I will be updating trades in real-time, and the list of prospective trades as available.  Besides the texting service, this will become the best way to stay on top of whatever we are thinking.

…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 

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

Our losses for the first week of the new year came to $ 3,464.

 

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

 

We have open position losses of about $ 12, 148 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 two 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 $ 1,950 in two options positions and

$ 54,190 in 18 stock positions

totaling $ 56,140 with
$ 43,860.00 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.

 

NOTE: This is a Sample Issue Only!

 

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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.

 

This Weeks’ Market Strategies

Economic Numbers and Media Data

 Monday

Earnings before the open Xyratex ( XRTX .09 vs 0.24 )

14:00 hrs Treasury Budget Dec ( +$44B vs 1 $1.2B )

Dragonware DRWI ( -0.17 vs -0.36 ) after the close

 

Tuesday

JP Morgan reports ( JPM 1.32 vs 1.39 )

WFC 0.98 vs 0.91 )

08:30 hrs Retail Sales Dec ( 0.0% vs 0.07% )

Ex-Auto Dec ( 0.4% vs 0.4% )

08:30 hrs Export Prices ex-ag Dec ( NA vs +0.1% )

Import prices ex-oil ( NA vs 0.0% )

10:00 hrs Business Inventories Nov ( 0.3% vs 0.7% )

Linear tech after the close ( LLTC ( 0.45 vs 0.38 )

 

Wednesday

Bank of America BAC ( 0.27 vs 0.03 )

FAST ( 0.35 vs 0.33 )

07:00 hrs MBA Mortgage Index 01/11 ( NA vs 2.6% )

08:30 hrs PPI Dec ( 0.3% vs -0.1% )

CORE PPI ( 0.1% vs Same )

08:30 hrs Empire Manufacturing Jan ( 3.5 vs 1.0 )

10:30 hrs Crude Inventories 01/11 ( 333K vs 330K )

14:00 hrs Fed’s Beige Book Jan ( no estimates )

 

Thursday

BlackRock ( BLK: 4.35 vs 3.96 )

Citigroup ( 1.03 vs 0.69 )

GS 4.12 vs 5.60

UNH ( 1.40 vs 1.20 )

TSM 1.59 vs 1.61

08:30 hrs Initial Unemployment Claims

01/11 ( 333K vs 330K )

Continuing Claims 01/04 ( 2835  vs 2865 )

08:30 hrs CPI Dec ( 0.3% vs 0.0% )

CORE CPI ( 0.2% vs Same )

09:00 hrs TIC FLOWS Nov ( NA vs $ 35.4B )

10:00 hrs Philadelphia Fed Jan ( 8.0 vs 6.4 )

10:00 hrs NAHB Housing Market Index Jan ( 57 vs 58 )

10:30 hrs Natural Gas Inventories 01/11

( NA vs -157bcf )

After the close AXP (1.25 vs 1.09 )

 

Friday

GE ( 53 vs 44 )

MS 47 vs 45 and

SLB 1.33 vs 1.08

08:30 hrs Housing Starts Dec ( 986K vs 1091K )

Permits ( 1000 vs 1007 )

09:15 hrs Industrial Production Dec ( 0.3% vs 1.1% )

Capacity Utilization ( 79.1% vs 79.0% )

09:55 hrs Michigan Sentiment Jan ( 83.0 vs 82.5 )

10:00 hrs JOLTS- Job Openings ( NA vs 3.925M )

 

Market Strategies Economic Data

The U.S Trade Deficit fell to $ 34.3 bln in November. The decline in November Trade Deficit along with the lower revision in October ( 39.3b down from -$40.6b ) will cause fourth Qtr GDP to be revised higher.

The goods deficit decreased by $ 4.9 bln in November  to $ 53.9 bln from $ 58.8 bln in October. The services surplus grew slightly, $ 200 million to $ 19.7 bln.

The petroleum deficit continued to fall in November to $ 15.2bln in from $ 19.5 bln in October.

 

Market Strategies

Trading Fundamentals

Interest rates rising is the biggest threat to continued stock market rallies. Last week the Fed was a huge financial winner. The Fed has quadrupled the size of its balance sheet to about $ 4 trillion and its value blossomed. The Fed current quantitative easing program is working and the $ 10 billion in QE reductions to $ 75 billion per month is of little consequence. Fed officials are watching employment numbers as a clue to further Fed action and got no help last week with the small increase of jobs . U.S. unemployment  was 10% in 2009 and has now dropped to 6.7 % in December not that far from the Fed goal of 6.5% unemployment.

 

Nonfarm Payrolls were influenced by the worst weather in decades. Certainly not a harbinger of a trend. Seven of the ten Dow economic groups were higher led by Healthcare, up 2.86%. Utilities rose 2.33%; Financials continued their lofty ways, up 0.70%. Technology grew 0.61% despite the demise in Apple ( AAPL: $ 532.94 ) – $ 10.99 for the week and $ 38.09 on the year. Industrials, Consumer Goods and Services were all positive rounding out the winners. Oil and Gas was flat. Basic Materials fell 0.41%, while Telecommunications fell 1.94%, by far the most of any group.

 

Market Strategies

Technical Information

Support Levels S&P 500    1823

Resistance S&P 500           1864

 

Support Levels DOW          16,334

Resistance DOW                 16,584

 

Support Levels QQQ           86.86                  

Resistance QQQ                  87.90

                  

Support Levels Nasdaq      4084-4000

Resistance Nasdaq             4197-4240

 

Market Strategies Cycles

The biggest winner so far among the January Effect trades  which go until February 15^th, was Origin Agritech ( SEED: $ 1.84 ) up 106.5% followed by Rare Element Resources ( REE $ 1.57 ) plus 36.7%.

 

One of the losers so far is Target Energy  ( TEXQY: $ 3.51 ) down 16%. Princeton Research has bought shares and is also doing I.R. for the company.

 

Weight  Watchers ( NYSE: WTW $ 32.91 ) ( $ 32.13 )made its high point for the year on January 16^th at $ 60.30. 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.

 

Walters Energy ( NYSE: WLT $ 13.80 )  ( $ 14.79 )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 $ 15.14 ) ( 16.28 ) Has been the biggest 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 $ 3.51 ) ( 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.

 

Apache ( NYSE: APA $ 86.20 )  ( 86.41 ) Has been under siege in the past 30 days with avalanches of selling which must include some tax-loss selling. APA sells at a discount to peers with a PE of just 12x consensus forecasts of $ 7.50 a share for next year.

Cirrus Logic ( CRUS: $ 19.08 ) ( 19.86 ) No debt and a current ratio of 6.12. A nice opportunity.

 

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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

mike@princetonresearch.com

Princeton Research

3887 Pacific Street, Las Vegas, Nevada 89121

Phone: (702) 650-3000

Where to

Invest Your Money Now