As Of December 30, 2013

Our $10,000 Portfolio

Trading Account

Has Produced YTD

Gains Of  $28,479

Over 284% Returns

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

December 30, 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)

 

 

Read the Sample Issue in .pdf format:

December 30, 2013 Market Strategies Newsletter  –  Balanced Investing Strategies Where To Invest Now Newsletter

Market Strategies Stock Options Trading

$10,000 Account

There are seven 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

WTW Jan 35 Calls

 

Funds in Use $ 3,591

Market Strategies Stock Options Trading

$10,000 Account Traders Comments

This past week was an excellent setup for the year end and start of the new year.

While we only made a small gain of $497,

we are carrying over some nice half-positions due to 100% rule sales.

 

YTD gains are $28,479

Over 284% Returns

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

There will be no new orders tonight since we are already using $3,591 in existing positions and the crosscurrents of this market are somewhat confounding to me.  Many of the stocks that I like are quite extended and although we have had some good “counter-trend” trades I am not willing to buy any puts unless they reflect some really low risk, high reward profiles.

In an extended bull market,  it is a mistake to be short just because you have a good stop over the highs.  This is where probability outweighs possibility for calling a top.  Overbought is a relative term, and it takes little to prove you wrong if and when we make further new highs.

I hope everyone had a good holiday and I wish you all a Happy New Year.

Charles

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Market Strategies

Stock Options Trading Chart

$10,000 Account

New Trades

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 gained $ 994

in closed out positions last week

increasing our profits

for the year to $ 53,556

 

YTD Returns of over 53%

 

This is not counting open positions losses of about $ 5,562.

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

We have seven long options positions:

 

The Stock table has the following 17 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 $ 7,182 in seven options positions and

$ 60,773 in 17 stock positions

totaling $ 67,955 with
$ 32,045 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!

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THE COMPLETE VIP MEMBERS ONLY

MARKET STRATEGIES NEWSLETTER ISSUES

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This Weeks’ Market Strategies

Economic Numbers and Media Data

 

Market Strategies Trading Fundamentals

Durable goods orders increased 3.5% in November after declining an upwardly revised 0.7% (from -1.6%) in October, well above the consensus which had called for a 2.2% increase.

Excluding transportation, durable goods orders rose 1.2% in November, up from a 0.7% gain in October, and easily topped the consensus forecast of a 0.6% gain. As expected, a large portion of the increase in orders was a result of aircraft demand. Nondefense aircraft orders were up 21.8% and defense aircraft orders increased 10.1%. In all, transportation orders rose 8.4% in November after falling 3.5% in October. The gains in durable goods orders, however, did not stop with the transportation sector. Nearly every sector reported strong orders demand. That included a 3.8% increase in machinery orders and a 1.7% increase in computer and electronic products.

Business capital demand rose at its fastest rate since January. Orders of nondefense capital goods increased 4.5% in November after falling 0.7% in October.   More importantly, shipments of business capital surged 2.8% after falling 0.4% in October. For the past several months, shipments of business capital have severely lagged gains in orders demand. Manufacturers were stockpiling unfilled orders but neglected to begin production. While a one month data point is not a trend, it is encouraging to see manufacturers start producing at an accelerated pace.

 

Market Strategies Economic Data

The Dow had another great week rising 1.59% or 257 points to 16,478.41, up 26% for the year.

The S&P 500, Dow Transportation s and Russell also had decent gains. The S&P 500 rose 1.3% or 23 points to 1841.40, which put the S&P up 31.9%, the thirteenth best performance since the index was conceived.

                                            

Market Strategies Technical Information

Support Levels S&P 500    1813

Resistance S&P 500           1854

 

Support Levels DOW          16,264

Resistance DOW                 16,564

 

Support Levels QQQ           86.86                  

Resistance QQQ                  87.75

                  

Support Levels Nasdaq      4084

Resistance Nasdaq             4187

 

Market Strategies Cycles

Volatility will start coming into the levitated markets and names such as RWM, SPXU to buy long and TWTR and NFLX Puts. AAPL also looks extended. Interest rates will threaten a continuation of the rally The Fed might not be able to control the destiny of 10-30 yr Treasuries.

Tax loss selling is a major factor for December trading which often causes losing stocks to be weaker for tax loss purposes.  Stocks with huge gains tend to continue as traders are reluctant to declare big profits and wish to postpone profit-taking until the new year.  Stock traders tend to get rid of their losers and hold their winners near year end for tax purposes, often influencing higher highs on winning stocks and lower lows on losers.

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. Puts can be bought on Monday or Tuesday in some of the run-away upside stocks.

The following is a list of tax sold securities that might be purchased. In seeking shorts in the glamour stocks we recommend using Put options which have a limited risk. Always use stops. We do at 50%.

Molycorp ( NYSE: MCP $ 5.31 ) Rare earth production with a huge short interest;

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.

 

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

 

Strayer Education ( Nasdaq: STRA $ 34.62 ) Decent financials and only 10.51 mln shares outstanding. Substantial short position.. 26.30%..

 

Leo Motors* ( OTCQB: LEOM  $ 0.08-$ 0.10) OTC QB has sold off from much higher levels. Princeton also represents them.

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.

More Tax candidates: SQM; CRUS; STRA; NEM

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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 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

Princeton Research

3887 Pacific Street, Las Vegas, Nevada 89121

 

Phone: (702) 650-3000

Market Investing Strategies