Investing Strategies
July 15, 2013
Market Strategies Newsletter
Sample Issue
Covering High Return Balanced Investing Strategies To
Make Money In Up Or Down Markets
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Where To Invest Now Investing Strategies
$10,000 Trading Account
There are five long open positions:
Funds in use $ 3,740
Where To Invest Now Investing Strategies
Traders Comments
We had a small gain of $70 this week
bringing YTD gains to $19,348
Over 193% Returns
The markets went ballistic with the Fed chairman’s clarification that “taper” is not a dirty word and that we are well away from fed-induced rate hikes.
Market indexes made new closing highs with the SP-500 closing in on its intraday high of 1687.
The Nasdaq has a long way to go, but also acts very well. One of the contrary indicators that causes me some concern is the Bullish/Bearish consensus. Bulls, as listed in the statistics below, are now 49.8% … a high but not necessary extreme condition — Just something to be aware of, since overbought is a “relative” statistic and markets can go higher while overbought.
The Fed and the markets are starting to disengage. Earnings are driving stock prices higher. Personally, I’m not convinced that the quality is great (you can’t cut jobs to create bottom line forever) until top line grows. But the market is the best predictor of future growth and asset values, so I won’t fight the tape.
Options Trade Alerts Conference Call
Our Wednesday morning “open conference call” continues to gain traction. Participation is growing weekly and if it continues we will be adding a Friday afternoon call.
Remember that the call-in is free and the numbers are:
712-432-0075 with the pin
# 614426.
There is a replay at 712-432-1085 using the same pin……….CAM
Where To Invest Now Investing Strategies
Economic Data
Consumer Credit increased by $ 19.6 Billion in May, after gaining $ 10.9 Billion in April, which was the largest monthly increase since May 2012. Revolving credit increased by $ 6.6 Billion in May. Non-revolving increased by $ 13.0 Bln to 1,982 Bln. Credit is on a solid expansionary track.
The producer price Index rose 0.8% in June mostly due to seasonal adjustments, the largest jump in prices since September 2012 and will be higher in July as a result of the increase in energy prices. CORE pricing remains muted increasing 0.1% in June indicating inflation pressures remained mild.
Where To Invest Now Investing Strategies
Trading Fundamentals
Both JP Morgan and Wells Fargo beat estimates kicking off bank earnings season. Financials as a group rose 2.54%. Utilities gained the most up 4.50%. Consumer Services added 3.62%; Health Care 3.56%; Consumer Goods 3.28% and Basic Materials 3.17%. Industrials rose 2.90% and Technology 2.75%. Oil and Gas rose by 2.46%. telecommunications was up the least, 0.26%.
Basic Material stocks finally made a recovery. The Fab Five, none of which are American: Posco ( PKX: $ 69.14 ) + 5.12 or 8%. BHP Billiton ( BHP: $ 60.68 ) added $ 4.36 or 7.7%. Rio Tinto ( RIO: $ 42.16 ) + 2.26 or 5.7%. Cliff Natural Res ( CLF: $ 16.86 ) + 1.18 or 7.3%; Vale ( VALE: $ 13.29 ) + 0.66 or 5.2%.
Investing Strategies
Technical Information
Support Levels S&P 500 1635
Resistance S&P 500 1684-1695
Support Levels DOW 15,110
Resistance DOW 15,495 – 15,545
Support Levels QQQ 73.20
Resistance QQQ 75.95
Support Levels Nasdaq 3389
Resistance Nasdaq 3655
Investing Strategies
Market Strategies Cycles
According to the Stock trader’s Almanac, the Monday before July options expiration has been up 7 of the last 9 years.
For the week as a whole, Corporate earnings will continue in earnest with most expectations having been already lowered. Rallies are expected to continue, but very modestly as gains will be muted by the reality of the past and present low top line including very modest earnings performance.
Since 1953, DJIA and S&P 500 have both averaged full-month July gains of 2% in post-election years. In 15 years, DJIA has declined just three times in July while S&P 500 has fallen six times. With just nine of twenty-two trading days complete this July, DJIA and S&P 500 have already eclipsed the average gains of the past 15 post-election year Julys.
Whether or not these gains will expand or evaporate will depend heavily on how well corporate earnings were in the second quarter which is something we will know soon now that earnings season has officially begun.
Gold begins a seasonal rally which tends to last through October. Phil Baker, CEO of Hecla, will be our guest on the Money Info Show Tuesday morning at 10AM Eastern Time.
NOTE: This is a Sample Issue Only!
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