Options Trading Alerts

Market Strategies Newsletter

Options Trading Alerts

Covering High Return Balanced Investing Strategies To

Make Money In Up Or Down Markets

A Publication of Princeton Research, Inc.

(www.PrincetonResearch.com)

September 17, 2012

Market Strategies Newsletter

Make Money In Up Or Down Markets.

 

To Read This Market Strategies Options Trading Alerts Sample Newsletter In Adobe PDF Version – Click Here

http://www.princetonresearch.com/9-17-2012-Market-Strategies.pdf

 

$10,000 OPTIONS Trading Account

New Trades for this week:

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The options only account had a

gain of $2,120

this week – bringing the

YTD performance up to $12,992.

 

A Return Of Over 129%

 

Options Trading Alerts

Traders Comments

The account does not utilize all of the hypothetical funds, and the average money at risk is generally at or below $4000.  Along with our balanced approach and our 50% down we are never at risk for even that much.

As I stated last week, I am always cautious, and the rally on the ECB and FED news only makes me more so. While I applaud the actions taken, especially in light of an inert Congress, I don’t believe that they do much for the American pocketbook or the unemployment problems.

The Middle East problem can cause downdrafts for the market, and spikes in the oil market.  Our balanced approach will help us weather these problems.

CAM

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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 Trading

Recommendations

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

 

INDEX OPTIONS TRADING ALERTS

RECOMMENDATIONS

( Any recommendations will be texted to VIP Subscriber members )

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, SDS,TZA and RWM, whichgo 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.

 

New Stock Options Trading Alerts

Recommendations

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Option Trading Alerts Comments

We made $ 8,338 last week.

Our gain for the year was increased to a hypothetical $ 52,416.

 

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 $ 5,962 in the four options positions and $ 52,062  in the 18 stock positions for a total of $ 78,637.00 with $ 21,363.00 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 $ 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)
• The options will be followed until closed out.
• Option Symbols are stock symbol with expiration month and strike price
• Subscribers can call  702 650 3000 for up to date information.

 

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This Weeks’ Economic Numbers and Media Data

Jewish New Year Holiday Rosh Hashanah may lighten trade

Tuesday08:30 hrs Current Account Balance ( -$125.6B vs -$ 137.3B )

09:00 hrs TIC Flows ( NA vs $9.3B )

10:00 hrs NAHB Housing Market Index for Sept ( 38 vs 37 )

A survey on sentiment.

New York Fed President William Dudley speaks during the day and Richmond Fed President Lacker speaks in the evening

Wednesday07:00 hrs MBA Mortgage Index 09/15 ( NA vs +11.1%)

08:30 hrs Housing Starts Aug ( 772K vs 746K )

Building Permits ( 800K vs 812K )

10:00 hrs Existing Home Sales Aug ( 4.58M vs 4.47M )

10:30 hrs Crude Inventories ( NA vs 1.994 mln bbls )

Several new IPO’s are in the market National Bank holdings; Spirit Realty Capital and Susser PetroleumThursday08:30 hrs Initial Claims 09/15  ( 375K vs 382K )

08:30 hrs Continuing Claims 09/08 ( 3292K vs 3283K )
10:00 hrs Phila Fed Sept ( -5.0 vs -7.1 )

10:00 hrs Leading Economic Indicators Aug ( 0.0% vs 0.4% ) FridayUnited Health Group replaces Kraft Foods in the Dow after market close. 

Fundamentals

The Fed came through is a dramatic fashion with even more stimulus than the markets had been expecting. The decision to increase policy accommodations by buying agency mortgage backed securities at a large rate- the tune of $ 40 bil per month or until the employment picture improves sent the markets soaring.

Basic Materials again led all nine of the winning Dow Industrial Groups for a second week gaining 4.75% making more than 8% in two weeks. Oil and Gas rose 4.26% and Financials 3.53%. Dow Industrials added 2.06%; Technology 1.59%; Consumer Services 1.58%; Telecommunications 0.95%; Health Care 0.39% and Consumer Goods 0.38%. Utilities were the lone loser off 0.3%.

Financials represented by their ETF ( XLF: 16.28 ) + 0.60 or + 3.8% for the week and 0.13 on Friday had reached a high at 16.44 a level not seen since April 2011,continued gaining even on Friday after the news from Thursday. Bank of America had the biggest percentage gains among major banks ( BAC: $ 9.55 ) + 8.5%; Morgan Stanley ( MS: $ 18.24 ) + 6.8%; JP Morgan ( JPM: $ 41.57 ) + 5.8%; Barclays ( BCS: $ 14.81 ) added 7.6% and U.S Bank made a new multi-year high ( USB: $ 34.93 ) + 2.8%.

Both Nasdaq and the QQQ reached their highest levels since December 6^th 2000.The Nasdaq Index had a decline that month from 3400 to 2523.  The following ten years were a horror.The high tech indexes lead the way prognosticating the direction of stocks.

Economic Data

Retail Sales rose 0.9% beating expectations of 0.7%. Motor Vehicle sales rose 1.3% after gaining just 0.1% in July. Motor Vehicle demand was the brightest spot of all the indicators. They surged in August. Sales rose to their highest level since the cash for clunkers program in August 2009. Total motor vehicle sales rose from 14.0 mln in July to 14.5 mln for August. Year-Year sales in August rose 20% up from a 9% gain in July. Chrysler led up 14%; Ford 13% and GM 10%. Hyundai-Kia rose 12%

Ex-Autos, however, the picture dimmed as higher gasoline prices accounted for 0.6% of the 0.8% increase. Core Retail Sales, which excludes Truck and Auto Sales, fell 0.1% in August which reflects consumer concerns about their future income prospects. Consumption does not look very good for the next couple months even with the ebullience of election year spending..

Industrial Production  was off 1.2%, well below the consensus of -0.2% and July’s reading of +0.5%.

Capacity Utilization fell sharply in August  to 78.2% a full percent below the 79.2% for July and expectations. Utilities were the weakest component falling 3.6% followed by Mining off 1.8% and Manufacturing -0.7%. The pullback in mining reflected the temporary closings of oil rigs in the Gulf of Mexico as a precaution for Hurricane Isaac.

Michigan Consumer Sentiment surged to 79.2 from 74.3 in August. The Expectations portion of the survey jumped from 65.1 to 73.4, probably influenced by positive expectations for the Fed and the stock market, while Present Conditions fell to 88.2 from 88.6 in August reflecting slower income, employment fears and rising fuel prices and other costs. The Index reached 79.3 in May before dropping to 72.3 – 74.3 in June through August.

Egan Jones lowered the credit rating of the U.S. from AA to AA- which brought about some late selling. It also gave sharp lift to the VXX.

 

Technical Information

Support Levels:   S&P 500       1427:1440

Resistance S&P 500      1468; 1489

 

DOW             13386: 13420

Resistance DOW        13,638; 13,710

 

QQQ              6790; 6860

Resistance QQQ           7070; 7152

 

Nasdaq         3040; 3085

Resistance Nasdaq       3310; 3435                                         

                                    

CYCLES

This week might be difficult for the bulls to make much more headway without some positive economic event as an encore to the euphoria from the latest fed stimulus program pumping $ 40 billion into the economy each month.  Some weakness is likely Monday. Following a little weakness, new highs then would be likely Tuesday.

Since 1950, September is the worst performing month of the year for DJIA, S&P 500, NASDAQ (since 1971), Russell 1000, and Russell 2000 (since 1979). September was creamed four years straight from 1999-2002 after four solid years from 1995-1998 during the dot.com bubble madness. Bullish election-year forces do little to improve on September’s poor overall performance over the same timeframe. September’s performance does improve slightly in election years, but it is still negative nearly across the board. Only the small caps of the Russell 2000 have been able to escape negative territory and post a modest 0.4% average gain in the last eight election year Septembers.

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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

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 ( LEOM ). In addition Princeton has bought shares. Cross Border paid us 25,000 restricted shares several months ago. We do not currently represent Cross Border but we like the company. We own about 3,000 shares. Princeton has 2,281,578 shares of AIVN.

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 Email issue. Princeton may buy or sell shares in companies it represents at any time.

Options Trading Alerts