Market Strategies

 

Covering High Return Balanced Investing Success Strategies For

Stocks ■ Bonds ■ Interest Rates ■

Natural Resources ■ Currencies ■

Venture Capital ■ Gold

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

November 21, 2012

Market Strategies

Guide to Successful Trading

Read 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:

The $10,000 Options Only account lost $1286 last week, its twenty fifth week of trading.

We came into the week with a balance of $12,480.00 and with the loss last week reduced gains to $11,194.00.
One position remains: the AAPL Dec 400 Calls.

The Open position is highlighted in the options table below.  

Approximately $ 1240 funds are in use,  This was a particularly difficult week.  The action was driven by overnight news in the Eurozone…As happened here in 2008, the sellers in Europe are moving from country to country as they moved from bank to bank here…Fundamentally, the news this week was VERY positive but the tail is still wagging the dog. Since this is a short and under-attended week, and the fact that I will be traveling Sunday-Monday, there will be no positions added unless exceptional opportunities present themselves…Text users will be updated. The AAPL stop is $3.10 (50% Down Rule) and I believe it will probably be hit Monday unless we have some positive news. Have a good Thanksgiving…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 14, November 7, October 31, October 24, October 17, and October 10 issues.

DATE	TRADE	PRICE	COST	PROCEEDS	RESULTS
11/17	Sold 4 SPY December 128 Calls  (50% Rule)	1.35		540	(536)
11/17	Sold 10 BAC December 6 Calls (50% Rule)	.38		380	(370)
11/15	Bought 4 SPY December 128 Calls	2.69	1076
11/14	Sold 5 TZA November 30 Calls	1.78		890	250
11/14	Bought 2 AAPL  December 400 Calls	6.20	1240
11/14	Sold 6 JAZZ November 36 Puts (50% Rule gap down)	.40		240	(630)
11/11	Bought 5 TZA November 30 Calls	1.28	640
11/11	Sold 20 ZSL November 13 Calls (50% Rule)	.15		300	(400)
11/11	Sold 15 IBM November 190 Calls	.62		930	270
11/10	Sold 4 JEF December 12 Calls   (50 % Rule)	.90		360	(360)
11/10	Bought 20 ZSL November 13 Calls	.35	700
11/10	Sold 20 ZSL November 12 Calls	.50		1000	300
11/9	Bought  15 IBM November 190 Calls	.44	660
11/8	Bought 20  ZSL November 12 Calls	.35	700
11/8	Sold 5 APA November 105 Calls	2.00		1000	310
11/7	Bought 5 APA November 105 Calls	1.38	690
11/7	Sold 5 TLT November 117 Calls	2.60		1300	445
11/7	Sold 4 TZA November 32 Calls	2.32		928	156
11/7	Bought 10 BAC December 6 Calls	.75	750
11/7	Bought 5 TLT November 117 Calls	1.71	855
11/4	Bought 4 TZA November 32 Calls	1.93	772
11/3	Bought 4 JEF December 12 Calls	1.80	720
11/2	Bought 6 JAZZ November 36 Puts	1.45	870

New trades $ 10,000 account…In Texting we have a limited amount of words. In the interest of brevity: OPTIONS ONLY: 11 November; 12 December; 1 January:
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

 (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 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 5 SHLD Dec 65 Puts at $ 3.65

  ( 2 ) Buy 5 NFLX Dec 70 Puts @ $ 2.00

  ( 3 ) Buy  10  IBM December 190 Calls @ 2.10

 

Option and overall Comments

 

We had a loss last week of $5,335 in a volatile down week. Our gains for the year decreased to
$ 73,295.  We have five long options positions remaining, the SPY Calls, ORCL Calls, AAPL Calls,
DD Calls, MMM Calls. The stock table includesten long stock positions:  FCH, USPR, CDTI, CONN, BBVA, 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 an hypothetical $ 100,000.00 and are using $12,500 in the options positions and $ 45,000 in the ten long stock positions for a total of $ 57,500 with

$42,500 in cash.  This is our 43rd letter for 2011. These figures are approximate. We do not count commission costs and there may be errors. If the suggested stocks and options are executed another $ 8,000.00 would be in use.

 

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

 

• 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 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

Economic numbers were favorable, but dollar strength , weakness in Europe and the budget mess in Washington overtook market sentiment. Unemployment Claims fell to 388K.

 

Industrial Production soared to +0.7%, well above expectations of +0.4%. Capacity Utilization rose also 77.8% above the 77.7% consensus and more than double September’s meager 77.3%.

Retail Sales continued buoyant, up 0.5%, above the expectations of + 0.4% and without autos factored in gained 0.6%, above September’s revised 0.5%.

 

Unemployment Claims fell below 390,000 to 388,000 the lowest level of claims since last April. Continuing Claims fell to 3,608 million well below the consensus of 3,658 M. September TIC Flows continue favorable as $ 68.6Billions more of capital ( Treasury notes and bonds as well as corporate stocks and bonds ) flowed into the U.S. up from $ 58 B in August.

 

October Housing Starts rose to 628K above expectations of 604K , while building Permits increased to 653K vs 589K in September.

 

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

 

Stocks collapsed  on both dollar strength and Washington uncertainty. Political risk is back in the spotlight on Wall Street as all eyes fall on the Super-committee formed to find solutions to bulging deficits to trim a $ 15 trillion deficit by $ 1.2trillion over the next decade. Answers are due before

Wednesday and looking less likely to the market.

 

All ten Dow Industrial groups were lower: Basic Materials fell the most, off 6.17%. Oil and Gas lost 5.23% and Financials 5.08%. Technology fell 3.69%; Health Care 3.56% Consumer Services 3.51% and Industrials 3.2%. Telecommunications dropped by 3.14%; Utilities fell 2.08% and Consumer Goods declined 2.01%.

 

Technical Information

 

      Support Levels:   S&P 500         1192; 1169                      Resistance S&P 500    1232; 1253

                                        DOW           11,640; 11,500               Resistance DOW        11,920; 12,030

                                        QQQ            5492; 5344                    Resistance QQQ           5577; 5653                     

                                        Nasdaq        2552; 2461                     Resistance Nasdaq      2620; 2672

                      
                              CYCLES

 

Short term cycles this week suggest a higher market this week, with weakness likely early in the week and strength into the holiday. Historically Early November price levels are maintained or exceeded at the end of November.

 

 

 

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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