Market Strategies

  

Covering High Return Balanced Investing Success Strategies For

Stocks ■ Bonds ■ Interest Rates ■ Natural Resources ■ Currencies ■ Venture Capital ■ Gold

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

Contributing Staff: Michael King, Bill Chippas, Charles Moskowitz

December 26, 2011

Market Strategies Guide To

Successful Trading

 

 Read The Market Investing Strategies Newsletter PDF Version – CLICK HERE

  Special Note:  Charles Moskowitz appeared for an interview at StockLegends.com. http://www.stocklegends.com , we urge everyone to listen to the interview now available on our website at:

 

http://www.princetonresearch.com/princeton-research-featured-on-investment-news-show/

We have been asked to help those who do not wish to make a $100,000 commitment to an account to scale back the initial investment to a $10,000 account. 

We are answering this request with an account that will only trade options.  However, in order to take full advantage to this new account, you really need to also subscribe to our Texting service.  There is no cost involved, but in order to receive all of the trading suggestions, in a high volatility environment, we need to communicate more often than weekly.

 

To subscribe, simply TEXT the word UPDATES to 69302

and you will automatically be included.

 

$10,000 OPTIONS ONLY ACCT

 

New Trades for this week:

( 1 ) BUY 5 SEARS ( SHLD ) January 50 CALLS @ 1.00

(2 )  BUY 5 FIRST SOLAR ( FSLR )January 35 CALLS @ $ 2.20

The $10,000 Options Only account lost $1975 last week, its Thirtieth week of trading.

We came into the week with gains of $8,948.00 and with the losses last week decreased the gains to $6,973.00 

 

Six positions remain: the QCOR Jan 44 Calls, TEN Jan 29 Calls, RIG Jan 40 Calls, APC 75 Calls, IBM Jan 185 Calls andZSL Jan15 Calls. The Open positions are highlighted in the options table below.  Approximately $ 5955 funds are in use.

This was a particularly tough week for this account. We had the market right but got stopped out of positions just before the expected moves came to fruition.  Our calls on RMBS and YHOO were stopped out on the 50% rule before moves up to over 100% gains based on our purchase prices.  It wasn’t a total loss, as we are long TEN, APC, and IBM all with substantial unrealized gains. We are also long ZSL (reverse Silver) calls and I feel it is likely to prove profitable in the coming weeks.

As was pointed out in the “cycles” section, the current yield on many solid equities has only been this close to the 30Yr. Treasuries twice since 1850.  This made way for an exponential long-term move in equities.  Even though the “high-yield dividend” stocks are a very crowded trade right now, but with the degree of uncertainty from the Eurozone, China, Iran/Iraq etc., still makes it an attractive option….CAM

 

Remember, these trades are based on your participation in the

TEXT MESSAGE TRADE ALERTS SERVICE TO RECEIVE ALL UPDATES.

TEXT the word UPDATES to 69302 To Get In Now

 

Previous closed out trades not listed here may be seen in the November 28, November 21, November 14, November 7, October 31, October 24, October 17, and October 10 issues.

 

 

DATE	TRADE	PRICE	COST	PROCEEDS	RESULTS
12/22	Bought 5 RIG January 40 Calls	1.78	890
12/22	Sold 50  WFR January 5 Calls	.06		300	300 Loss
12/21	Bought 10 ZSL January  15 Calls	1.20	1200
12/21	Bought  5 IBM January 185 Calls	3.05	1525
12/20	Sold 5 TZA January 35 Calls	1.48		730	735 Loss
12/19	Sold 2 BLK January 180 Calls	1.85		370	370 Loss
12/19	Sold 10 RMBS January 7.50 Calls	.23		220	220 Loss
12/19	Sold 10 YHOO January 16 Calls	.35		350	350 Loss
12/16	Bought 10 YHOO January 16 Calls	.70	700
12/15	Sold 10 CONN January 12.50 Calls	.45		450	550 Loss
12/14	Bought 5 TZA January 35 Calls	2.95	1475
12/14	Bought 2 APC January 75 Calls	3.40	680
12/14	Sold 3 TLT January 114 Puts	.91		273	276 Loss
12/14	Bought 50  WFR January 5 Calls	.12	600
12/14	Sold 5 MHS January 60 Calls	.75		375	425 Loss
12/14	Sold 5  ZSL January  14 Calls	2.50		1250	800 Gain
12/14	Bought  5 TEN January 29 Calls	1.00	500
12/14	Sold 5  ZSL January  14 Calls	2.30		1150	700 Gain
12/12	Bought 2 BLK January 180 Calls	3.70	740
12/13	Sold 5 RIMM January 17.5 Calls	.90		450	450 Loss
12/12	Bought 10 RMBS January 7.50 Calls	.45	450
12/12	Bought  3 TLT January 114 Puts	1.83	549
12/12	Bought 5 MHS January 60 Calls	1.60	800
12/9	Bought 10 ZSL January  14 Calls	.90	900
12/9	Sold 50 WFR Jan 5 Calls	.22		1100	250 Gain
12/7	Sold 10 QQQ December 57 Puts	1.35		1350	210 Gain
12/6	Bought 4 QCOR January 44 Calls	2.90	1160
12/6	Bought 10 CONN January 12.50 Calls	1.10	1100
12/6	Bought 50 WFR Jan 5 Calls	.17	850
12/5	Bought 10 QQQ  12/57 Puts	1.14	1140
12/5	Sold 50 BAC December 6 Calls	.22		1100	400 Gain
12/2	Bought 5 RIMM January 17.5 Calls	1.80	900
12/1	Bought 50  BAC December 6 Calls	.14	700

New trades $ 10,000 account…In Texting we have a limited amount of words. In the interest of brevity: OPTIONS ONLY:  1 January; 2 February
The Quantity and Strike Price for each trade is specific. For any questions please call 702 650 3000

 

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

 

         (1) Buy 675 Harvest Natural Resources ( HNR ) $ 7.40 stop out at $ 6.80

       (2)  Buy 1000 Power one ( PWER ) $ 3.80

       (3)  Buy 350 CVC at 14.25  stop out at 13.30 sco
       (4)  Buy 1000 FORM at 4.93 stop out at 4.45 sco

       (5)  Buy 2000 XOMA $ 1.24 stop out at $ 0.90

       (6)  Buy 600 Maxlinear ( MXL ) @ $ 4.35

       (7)  Buy 650 Penn Virginia Corp  ( PVA ) $ 5.10 stop out at 4.50

       (8)  Buy 300 Digital River ( DRIV ) $ 14.50 stop out at $13

       (9)  Buy 1500 Willbros Group ( WG ) $ 3.65 stop out $ 2.90

     

 

Last week we sold AGQ with a text alert.

 (A full position is $5,000)

 

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

 

Previous closed out positions can be found in the December 12, November 28, November 21, November 7, October 17, October 3, September 19, September 6th, August 15th, August 8th, August 1st and July 18th letters.

Model Portfolio Comments/Changes:

 

                                  INDEX OPTION RECOMMENDATIONS

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 and SDS, whichgo up when the DOW and S&P 500 go down and down when they go up.

 

New Stock Option Recommendations

 

( 1 ) BUY 15 SEARS ( SHLD ) January 50 CALLS @ 1.00

(2 )  BUY 10 FIRST SOLAR ( FSLR ) January 35 CALLS @ $ 2.20

 

Option and overall Comments

We had a loss last week of $4131 in an up week. Our gains for the year were $ 64,916 and with last week’s losses are decreased to $ 60,785. We have Six long options positions remaining, the QCOR Calls, IBM Calls, TEN Calls, RIG Calls, APC Calls, ZSL an inverse Silver ETF, and the CSCO Spread. The stock table includes Ten long stock positions: HWD, AEZS, GMXR, WFR, CBOE, LEI, KAJMY, LEOM, SDS, and XBOR. The SDS is a double inverse SP500 ETF.

 

The options call for a $ 2,500 investment unless otherwise started, while each stock position requires $ 5,000 unless specifically stated.

We are basing money management on a hypothetical $ 100,000.00 and are using $13,800 in the options positions and $ 43,100 in the Ten long stock positions for a total of $ 56,900 with $ 43,100 in cash. This is our 48th letter for 2011. 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 $ 100,000 account

 

• Text UPDATES to 69302.
• 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)

at the close the previous Friday or at the open on Monday.

• The options will be followed until closed out.
• Option Symbols have changed. We will now use a new terminology. ( stock symbol with expiration month and strike price )
• Subscribers can follow us on Twitter or call  702 650 3000 for up to date information.

 

 

Note: Previous closed out stock and option positions can be found in the December 5, November  28, November 21, November 7, October 17, October 3, September 19, September 6, August 22, August 8, August 1, July 18, July 11, July 5, June 20, May 16, April 25, April 11,  March 21, March 14, March 7, February 21, 2011 February 7, 2011 January 24, 2011, December 20,2010, November 22, 2010, October 11, 2010, September 13, 2010, July 26, 2010, June 14, 2010, May 10, 2010, January 25, 2010, November 23, October 23, August 24, July 20, 2009 newsletters.

                                                                      

                                  This Weeks’ Economic Numbers and Media Data

 

 

Economic Data

 

Most economic reports showed steady improvement in the economy. The lone negative showing was from 3rd QTR GDP which, the latest estimate down 0.2% to 1.8% from the 2.0% expected.

 

Housing Starts at 685K ( + 9.3% ) and Building permits of 681K ( + 7.6% ) were well above expectations. In addition, Unemployment Claims came in lower again at 364K showing encouraging signs of new jobs. Durable Goods were very strong up 3.8%, well above the consensus of 2.0% and last month which was flat. Michigan Sentiment was better at 69.9 vs 68.0 anticipated by most.

 

Fundamentals ( previous letters may be seen at www.princetonresearch.com)

 

The Oracle ( $ 26.06 ) – 10.8% earnings news was horrible and it fell 12% on Wednesday taking Nasqaq and the QQQ with it. American Greetings ( AM: $ 12.98 ) -21% for two days following its poor earnings report. Both Apple and IBM opened lower on the Oracle news. Apple closed higher on the day and we bought the IBM which recovered nicely.

 

Both Akamai ( AKAM: $ 31.93 ) + 19.8% and Delphi Financial ( DFG: $ 44.13 ) + 75.2% had big gains following M&A news.

 

All ten Dow Economic Groups were higher just the opposite of the previous week setting up the possibility of a mirror image up pattern if the up-coming week follows through. Oil and Gas led all groups up 5.40% reversing the 5.95% loss the previous week. Financials gained 4.63%; last week they lost 3.15%. Basic Materials gained 4.16% and Industrials 4.13%. Health Care rose 3.98%; Utilities gained 3.62%. Telecomm rose 3.47% and Consumer goods 3.32%. Consumer Services gained 3.10% and Technology, reeling from the poor Oracle earnings still managed to eke out a gain of a not too shabby 1.91%.

 

Technical Information

 

      Support Levels:   S&P 500          1253; 1232                    Resistance S&P 500   1274; 1289

                                        DOW           12,175; 11,920              Resistance DOW        12,380; 12,680

                                        QQQ            5553; 5492                    Resistance QQQ        5653; 5729                     

                                        Nasdaq        2568; 2511                    Resistance Nasdaq     2663; 2716

                      
                              CYCLES

 

Only twice since 1850 in America have 30-year bond returns been as close to equity returns as they are today. And both times multi-decade bond-bear markets followed. During these periods the stock market jumped as much as 7-fold.” – Oxford Club newsletter, 11/12/11

 

Rule 17B requires disclosure of payment for investor relations*

 

Princeton Research has received about $ 2,500 per month from Lucas ( LEI ) marked with an asterisk.    Princeton has been paid for investor relations in the past and has negotiated a contract to be paid 100,000 restricted shares from Leo Motors. Princeton is paid by Baron Energy ( BROE ) to do investor relations in the amount of 300,000 shares. Princeton has also bought separate shares about 327,600 and owns the shares for its own account. USPR paid us 200,000 restricted shares. Cross Border paid us 25,000 restricted shares and we bought and own another 25,000 purchased at higher prices. .

 

CONTACT

Please Direct All Inquiries To:

 

Mike King

Princeton Research

3887 Pacific Street, Las Vegas, Nevada 89121

 

Phone: (702) 650-3000

Fax: (702) 697-8944

mike@princetonresearch.com

Visit: www.princetonresearch.com

 

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