December 23, 2013

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)

 

Market Strategies

Stock Options Trading

$10,000 Account

There are four open positions:

CF Jan $ 230 Calls

FCX Jan $36 Calls

DNKN Jan $ 47.50 Calls

NBG Jan 2015 $7 Calls

Funds in Use $ 2,500

 

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Market Strategies Stock Options Trading

$10,000 Account Traders Comments

This week we got stopped out of a couple of positions on the Wednesday Fed results just before we saw them rally strongly back to the upside.

This was one of the reasons for the loss of $1,384

bringing the YTD performance to $27,982

 

Over 279% Returns

This week will be a low volume affair with only a half day on Tuesday and of course no market on Wednesday.

I am concentrating on positions that should be the recipients of tax selling followed by a rally in the new year.  This is the so called “January Effect,” and we see these beaten down issues being re-bought in the new year.  I am currently looking at the BAC “B” wts. as well as many issues that did not participate in the overall rally.  WPRT, ACI, ANR and others we have followed fit this theory.  I have also already bought the FCX 1/36 calls for this move.

Now that we have the taper out of the way, and that good news is taken as good news, all we need now is for top-line growth to pick up so that earning can move higher.  I’m thinking that the retail sector should be avoided for now, as they are crushing margins in return for sales.  BUT, if things are really picking up, some of the big names can move back up.  CAT has both the tax selling and an 18 month consolidation at its back. The same can be said for many others like JOY.  I will be concentrating on finding those opportunities.

…CAM

                          

Market Strategies

Stock Options Trading Chart

$10,000 Account

New Trades

1) Buy 6 SLB January $ 90 Calls at mkt

 2) Buy 6 CAT January $ 90 Calls at 0.95

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

 Buy 1200 ACI Arch Coal at Mkt

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

New Trades:

1) Buy 12 SLB January $ 90 Calls at mkt

2) Buy 12 CAT January $ 90 Calls @ $ 0.95

 

We lost $ 6,410 in closed out positions last week

decreasing our profits for the year to a hypothetical $ 52,562

This is not counting open positions losses of about $ 7,705.

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

We have four long options positions:

The Stock table has the following 14 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 $ 5,000 in four options positions and

$ 43,130 in 14 stock positions

totaling $ 48,130

with $ 51,870 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.

These figures are approximate. We do not count commission costs and there may be errors.

 

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

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PrincetonResearch.com/investment-strategies.htm 

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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

Option	Cost	Date	Sold	Date	Profit/(Loss)
This Information Is For Members Only For Special Subscribers Offer Click Here	Calls        0.49	12/17/13
	Calls        5.59	12/17/13
	Calls        0.90	12/16/13
	Calls        2.05	12/09/13	1.03  ( 50% Loss Rule )	12/19/13	( $ 816 )
	Calls        1.32	12/06/13	0.66  ( 50%Loss Rule )	12/18/13	( $ 792 )
	Calls        0.58	11/11/13	0 (Expired Worthless)	12/20/13	( $ 1160 )
	Calls        0.45	10/18/13

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

Market Strategies Trading Fundamentals

The week featured a combination of excellent fundamental economic numbers in addition to an end to the feared Fed tapering. Third quarter GDP growth was revised up to 4.1% in the third estimate from 3.6% in the second estimate. That is the strongest reading since the economy expanded by 4.9% in Q4 2011 and well above the 2.5% gain in the second quarter.

All ten Dow Industrial Groups were higher led by Industrials up a significant 3.31%; Technology gained 2.61%;Financials 2.60%; Basic Materials 2.25%; Oil and Gas 2.45%; Health Care 2.34%; Consumer Services 2.33%; Utilities 1.98%; Telecommunications 1.37% and Consumer Goods 1.27%.

Market Strategies Economic Data 

Nonfarm business productivity in the third quarter was revised up to 3.0% from an originally reported 1.9% gain. Productivity increased 1.8% in Q2 2013. The entire revision in productivity came from an upward revision to output. Output grew 4.7% in the third quarter instead of the originally reported 3.7% gain. The upward revision reflects the gain in inventory growth reported in the second estimate to Q3 2013 GDP.

Hours worked were unrevised and increased 1.7% in the third quarter. The upward revision to output coupled with the unchanged hours worked resulted in the big upward revision to overall nonfarm business productivity. Unit labor costs declined 1.4%, as a result of the production increase, which has helped keep inflation in check.

 

Market Strategies Technical Information

Support Levels S&P 500    1803

Resistance S&P 500           1834

 

Support Levels DOW          16,064

Resistance DOW                 16,334

 

Support Levels QQQ           84.86                  

Resistance QQQ                  86.75

                  

Support Levels Nasdaq      4034

Resistance Nasdaq             4157

 

Market Strategies Cycles

Tax loss selling is a major factor for December trading which often causes stocks to be weaker the first half of the month. Stock traders tend to get rid of their losers near yearend for tax loss purposes, often driving these stocks down to bargain levels. Research has shown that NYSE stocks trading at a new 52-week low on or about December 15 will usually outperform the market by February 15 in the following year. We have found that the most opportune time to compile our list is on the Friday of December triple witching which often further depresses already distressed equities and leaves plenty of time to capitalize on both the Santa Claus Rally and January Effect.

Weight  Watchers ( NYSE: WTW $ 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 $ 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.

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

Target Energy* ( ADR: TEXQY $ 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 $ 86.41 ) 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.

The following is the list from Stock Trader’s Almanac. Included are many stocks in gold which like coal  is in a major down-trend.

 

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 $ 5.90 in U.S. vs 0.065 in Australia. Princeton owns 400,000 Australia shares and about 500 U.S. ADR’s.

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

 Investing Strategies