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 12, 2011
Market Strategies Guide to Successful Trading
Read PDF 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:
BUY 10 RMBS JANUARY 7.50 CALLS @ $ .63 OB
BUY 5 MHS JANUARY 60 CALLS @ $1.60 OB
BUY 2 BLK JANUARY 180 CALLS @ $4.00 OB
BUY 5 TEN JANUARY 29 CALLS @ $2.10 OB
BUY 3 TLT JANUARY 114 PUTS @ $2.25 OB
The $10,000 Options Only account made $860 last week, its twenty eighth week of trading. We came into the week with a balance of $8,389.00 and with the profits last week increased the gains to $9,249.00. Four positions remain: the RIMM Jan 17.50 Calls, CONN Jan 12.50 Calls, QCOR Jan 44 Calls and ZSL Jan 14 Calls. The Open positions are highlighted in the options table below.
Approximately $ 4060 funds are in use. If the new positions are filled another $ 3955 will be employed for a total of $8015.
We seem to be at a crucial point this week….There are many more charts that look like they can take-off higher. Without sounding like I’m hedging, that also means we are at an area that we could initiate shorts with limited risk, BUT in the $100M account we are long from lower levels and a failure here just means we take profits. European problems seem to have receded a bit, but there is still plenty to worry about…Iran / Iraq can easily take its place as a source of troubling overnight news. We are overall bullish but will continue to maintain a balanced stance until we see things unfold…CAM
Remember, these trades are based on your participation in the TEXTING SERVICE TO RECEIVE ALL UPDATES. Previous closed out trades not listed here may be seen in the December 5, November 28, November 21, November 7, October 17, October 3rd, August 22nd, August 8th, July 25th, July 18th and July 5, 2011 letters.
DATE |
TRADE |
PRICE |
COST |
PROCEEDS |
RESULTS |
12/9 |
Bought 10 ZSL January 14 Calls |
.90 |
900 |
|
|
12/9 |
Sold 50 WFR Jan 5 Calls |
.22 |
|
1100 |
250 |
12/7 |
Sold 10 QQQ 12 /57 Puts |
1.35 |
|
1350 |
210 |
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 |
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: 12 December; 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
Dow 12,184.26 +164.84 +1.37% |
Nasdaq 2646.85 +19.92 +0.76% |
S&P 500 1255.19 +10.91 +0.88% |
Transportation 4957.02 +10.35 +0.21% |
Russell 2000 745.40 +10.38 +1.41% |
Nasdaq 100 2318.68 +16.64 +0.72% |
Gold 1716.80 -34.50 -1.97% |
Silver 3225.3 -43.3 -1.32% |
Crude 99.41 +1.55 -1.54% |
Heating Oil 291.25 -7.75 -2.59% |
Unleaded Gas 2.5961 -0.0201 -0.77% |
Natural Gas 3.317 |
VIX 26.38 -1.14 -4.14% |
Put/Call Ratios S&P 100 158/100’s +24/100’s |
Put/Call Ratios
CBOE Equity 77/100’s +16/100’s
|
Bonds 141-05 -0-21 3.10% +0.06% |
10 Yr Note 129-27 +0-056 2.05% +0.08% |
Copper 355.75 -2.70 -0.75% |
CRB Inflation Index 306.55 -7.12 -2.27% |
Barron’s Confidence 69.3.% -1.3% |
S&P100 568.17 +6.32 +1.12% |
5 Yr Note 123-01 +0-078 .88% -0.04%
|
Dollar 78.68 -.05 -0.01% |
DJ Utilities 446.93 +3.30 +0.74% |
AAII Confidence Index |
Bullish 38.6 +5.6% |
Bearish 34.8 -4.6% |
Neutral 26.7% -0.8 %
|
M1 Money Supply +16.6%Nov 28th
|
M-2 Money. Supply +9.2%Nov 28th
|
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
BUY 2500 GMXR @ $1.60 OR BETTER
BUY 2500 AEZS @ $1.65 OR BETTER
BUY 200 STMP @ MKT TO COVER SHORT
Last Week Bought WFR, RICK and Shorted STMP.
We also Sold HWD and USPR all with text alerts.
(A full position is $5,000)
Each stock is allocated a theoretical $ 5,000 share of the portfolio unless otherwise indicated.
Stock |
Purchase Price |
Purchase Date |
Stop/Loss |
|
Price/Date Sold |
|
Profit/(Loss) |
WFR 1200 |
4.12 |
12/6/11 |
|
|
|
||
STMP 200 |
25.66 |
12/5/11 |
28.35 |
|
|
||
RICK 600 |
7.78 |
12/5/11 |
|
|
|
||
HWD 500 |
10.33 |
11/28/11 |
9.49sco |
11.574 12/5 |
$622 |
||
CBOE 100 |
26.37 |
11/28/11 |
24.98sco |
|
|
||
USPR * 20,000 |
.13 |
11/09/11 |
|
.181 12/09 |
$1020 |
||
CONN 500 |
8.50 |
10/25/11 |
7.49X |
|
|
||
SDS 100 |
25.55 |
10/5/11 |
|
|
|
||
XBOR* |
1.40 |
8/12/11 |
0.70sco |
|
|
||
LEI* |
2.06 |
8/10/11 |
1.03x |
|
|
||
KAJMY |
30.45 |
3/21/11 |
29.60 sco |
|
|
||
LEOM* |
0.30 |
12/17/10 |
0.03 sco |
|
|
|
|
Previous closed out positions can be found in the 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
BUY 20 RMBS JANUARY 7.50 CALLS @ $ .63 OB
BUY 10 MHS JANUARY 60 CALLS @ $1.60 OB
BUY 5 BLK JANUARY 180 CALLS @ $4.00 OB
BUY 10 TEN JANUARY 29 CALLS @ $2.10 OB
BUY 6 TLT JANUARY 114 PUTS @ $2.25 OB
Option and overall Comments
We had a gain last week of $3217 in an up week. Our gains for the year were $ 59,301 and with last week’s gains are increased to $62,518. We have six long options positions remaining, the ZSL Calls, CONN Calls, QCOR Calls, RIMM Calls, SDS Calls, UUP Calls (a US Dollar ETF) and the CSCO Spread . The stock table includes Nine long stock positions: WFR, RICK, CBOE, CONN, LEI, KAJMY, LEOM, SDS, XBOR and one short stock STMP. 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 $15,000 in the options positions and $ 45,000 in the nine long stock and one short stock positions for a total of
$ 60,000 with $ 40,000 in cash. This is our 46th 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 $16,500 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
- 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.
Option |
COST |
Date |
Sold |
|
Date |
Profit/(Loss) |
ZSL Jan 14 25 Lots |
Calls .90 |
12/9/11 |
|
|
|
|
OCOR Jan 44
10 lots |
Call 2.90 |
12/6/11 |
|
|
|
|
WFR Jan 5
50 Lots |
Calls .17 |
12/6/11 |
.22 |
12/9/11 |
$ 250 |
|
CONN Jan 12.5 25 Lots | Calls 1.10 |
12//5 |
|
|
|
|
QQQ Dec 57 25 Lots |
Puts 1.14 |
12/5/11 |
1.35 |
12/7/11 |
$ 525 |
|
RIMM Jan 17.5, 15 Lots | Calls 1.80 |
12/2/11 |
|
|
|
|
BAC Dec 6 100 Lots |
Calls .14 |
12/1/11 |
.22 |
12/6/11 |
$ 800 |
|
SDS Jan 20 15 Lots |
Calls 1.71 |
11/30/11 |
|
|
|
|
UUP Jan 22 20 Lots |
Calls .65 |
11/25/11 |
|
|
|
|
CSCO Jan 20 2012 Put short; longJan20;2013 Call | Put/Call Spread 0.07 |
2/14/11 |
|
|
||
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
Monday | 14:00 hrs Treasury Budget for November ( – 139.0B vs -150.0B )
3-Yr $ 32 Billion Note Auction takes place. |
Tuesday | 08:30 hrs Nov Retail Trade ( 0.6% vs 0.5% )
Ex-Auto ( 0.5% vs 0.6% ) 10:00 hrs Business Inventories October ( 0.9% vs 0.0% ) 14:15 hrs FOMC Rate Decision ( 0.25% vs 0.25% ) |
Wednesday | 07:00 hrs MBA Mortgage Index 12/10 ( NA vs 12.8% )
08:30 hrs Export Prices ex-Ag ( NA vs -1.5% ) Import Prices ex-oil ( NA vs -0.2% ) 10:30 hrs Crude Inventories 12/10 ( NA vs +1.336 mln bbls ) Opec meets in Vienna |
Thursday | 08:30 hrs Initial Claims 12/10 ( 385K vs 381K )
Continuing Claims 12/03 ( 3625K vs 3583K ) 08:30 hrs PPI Nov ( 0.2% vs -0.3% ) CORE ( 0.1% vs 0.0% ) 08:30 hrs Empire State Manufacturing Dec ( 3.0% vs -0.61% ) 08:30 hrs Q3 Current Account Deficit ( -$ 110.0B vs – $ 118.0B ) 09:00 hrs Net Long term TIC Flows ( NA vs $ 68.6B ) 09:15 hrs Industrial Production Nov ( 0.2% vs 0.7% ) Cap Utilization Nov ( 77.8% vs Same ) 10:00 hrs Phila Fed Dec ( 4.3 vs 3.60 ) |
Friday
|
08:30 hrs CPI Nov ( 0.1% vs -0.1% )
CORE ( 0.1% vs -0.1% ) |
Economic Data
The ISM Index came in a little short of expectations at 52.0 from 52.9 in October. The Unemployment Claims were surprisingly lowered to 381K; But all that news was unnoticed with the importance of Europe taking center stage.
Fundamentals ( previous letters may be seen at www.princetonresearch.com)
S&P put both Germany and France on “credit watch negative” while also placing all seventeen Euro Nations on a downgrade watch. This spilled some cold water on the positive news that the ECB intends to inject one trillion Euros for use in additional bond buying. The negativity, which caused a huge decline Thursday, was that the vote was not unanimous and the ECB became more cautious in its economic outlook. It was also announced that capital shortfalls increased in their latest stress tests. Then on Friday a positive spin came on the belief that weaker Euro members that need to rely on a cheaper currency would be deleted if they don’t adhere to administered criteria.
By the end of a tumultuous week in volatility, both the Dollar and Euro had almost no change and the equity markets were relieved that the dollar had little upward momentum.
Nine of the ten Dow Industrial groups were higher on the week led by Financials, plus 1.59% followed by Technology, up 1.28% and Industrials gaining just 0.78%. Oil and Gas was up just 0.12%, while Basic Materials fell 0.52% for the week as the lone loser.
Technical Information
Support Levels: S&P 500 1253; 1232 Resistance S&P 500 1274; 1289
DOW 12,175 11,920 Resistance DOW 12,320; 12,530
QQQ 5640; 5577 Resistance QQQ 5729; 5805
Nasdaq 2612; 2552 Resistance Nasdaq 2672; 2758
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
Visit: www.princetonresearch.com
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