Options Trading Balanced Investment Strategies Newsletter April 8, 2013

April 8, 2013

Market Strategies Newsletter

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Stock Market News

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Where To Invest Now

Covering High Return Balanced Investing Strategies To

Make Money In Up Or Down Markets

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

Contributing Staff: Michael King, Charles Moskowitz

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Market Strategies Newsletter

Sample Issue:

4-8-2013-Market-Strategies.pdf

 

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Market Strategies

$10,000 Options Trading Account

Open Positions:

There are nine open positions:

Funds in Use $ 6,850.00

 

Options Trading Strategies Comments

It was a difficult week with particularly vocal Fed members giving us a substantial dose of dovishness…right up until the numbers came out showing that they too can speak “off the cuff” and be completely wrong in their thesis of when the Fed can “pare down” its purchases of paper.

Okay, so we lost $370 bringing YTD performance back down to a 132.5% gain.

The real question now is:

Have we started a “real” correction or is the market still a buy on any dips?

I’m not sure, but I don’t recall any week where we were this committed (funds in use $6,850).

We did buy positions in AAPL, TIF, XLF, and Silver at points that showed maximum stress on prices…and it wouldn’t surprise me at all if we get a “tradable” rally early this week.

There are no new position right now but if you are an options trader you need to be part of the texting service NOW…This can be a make or break week for these markets.  We start earnings reporting and things can be quite erratic. Not the best time to watch the action from the following days newspaper.

…CAM

New Trades for this week:

None

 

Where To Invest Now

Options Trading Strategies Table

Remember, these trades are based on your participation in the

VIP Subscriber Members Only TEXTING SERVICE TO

RECEIVE ALL UPDATES.

 

NOTE: This is a Sample Issue Only!

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MARKET STRATEGIES NEWSLETTER ISSUES

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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 25th 147 calls or puts.

For any questions please call (702) 650 3000.

 

Market Strategies Where To Invest Now

Market Laboratory – Weekly Changes

Prices are copied from Barron’s Weekly and Yahoo Finance and may be incorrect

Dow

14,565.25

-13.29

-0.09%

Nasdaq

3203.86

-63.66

-1.95%

S&P 500

1553.28

-15.91

 -1.01%

Transportation

6,037.36

-217.97

-3.48%

Russell 2000

923.28

-28.26

 -2.97%

Nasdaq 100

2771.75

-46.94

 -1.67%

Gold (spot)

1575.40

 -19.40

   -1.2%

Silver (Dec )

2722.0

-110.3

-3.9%

Crude

  92.70

 -4.53

   -4.7%

Heating Oil

290.98

-13.72

-4.5%

Unleaded Gas

  2.8636

-.2470

 -7.9%

Natural Gas

  4.125
+1.01

 +2.5%

VIX

13.92

+1.22

 +9.6%

Put/Call Ratios

S&P 100

154/100’s

-20/100’s

Put/Call Ratios

CBOE Equity

 71/100’s

+5

Bonds

148-00 +3-17

 2.863% -0.237%

10 Yr Note

133-05 +1-056  1.694 -0.158%

Copper

334.40

-5.80

 -1.7%

CRB Inflation

Index

 288.28

-8.11

 -2.7%

Barron’s Confidence

 67.0%

-0.9%

S&P100

699.49

-5.08

 -0.72%

5 Yr Note

124-167+15                                                   0.675% -0.95%

Dollar

82.57

-0.42

 -0.5%

DJ Utilities

514.73

+6.33

 +1.25%

AAII

Confidence

Index

Bullish

 35.5%

-2.9%

Bearish

28.2%

-0.5%

Neutral

36.3%

+3.4%

M1 Money  Supply

+10.78%

Mar 25th

M-2 Money

Supply

+6.25%

Mar25th

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

Recommendations will be both listed in this letter and texted to members.

No New Stock Trades for the coming Week unless they are Texted to you.

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

NOTE: This is a Sample Issue Only!

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Note: Previous closed out stock and option positions can be found in past Market Strategies Newsletter issues available in the VIP 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.

 

$100,000 Trading Portfolio

Options Trading Strategies

Recommendations And

Overall Comments

We lost $ 3,247.00 in closed out positions last week.

Our profits for the year were decreased to

a hypothetical $ 27,822.00.

 We have seven options positions:

The Stock table includes the following sixteen 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 $ 100,000.00 and are using $ 11,220 in seven options positions, $ 66,768 in the 16 stock positions, a total of $ 77,988 with 22,012 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

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: This is a Sample Issue Only!

TO GET OUR TRADE ALERTS BY TEXT MESSAGE AND

THE COMPLETE VIP MEMBERS ONLY

MARKET STRATEGIES NEWSLETTER ISSUES

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Note: Previous closed out stock and option positions can be found in past Market Strategies Newsletter issues available in the VIP Subscribers Members Area.

This Weeks’ Market Strategies

Economic Numbers and Media Data

Monday Ben Bernanke gives the keynote speech in

Atlanta at the Financial Markets’ Conference.

 

Alcoa Kicks off earnings season reporting

after the close: ( 0.09 – 0.10 vs 0.10 )

TopLine ( 5,887 vs 6,006 )

Tuesday 10:00 hrs Wholesale Inventories

( 0.5% vs 1.2% )

 

Wednesday 07:00 hrs MBA Mortgage Index for 04/06

( NA vs -4.0% )

Fastenal Reports:

( 0.37 vs 0.34 )

 

10:30 hrs Crude Inventories 03/30

( NA vs 3.252.707Mln Bbls

 

14:00 hrs Treasury Budget Mar

( -$107.0B vs -$198.2B )

 

14:00 hrs FOMC Minutes 3/20

Thursday 08:30 hrs Initial Claims 04/06

( 365K vs 385K )

Continuing Claims 03/30

( 3058K vs 3063K )

 

08:30 hrs Export and Import Prices

(Last month export inflation ex agriculture

rose 0.6% while import inflation ex-oil was flat.

 

10:30 hrs Natural Gas Inventories 4/06

( NA vs -94BCF )

Friday JP Morgan Reports 1.38 vs 1.13:

Wells Fargo 0.89 vs 0.75 )

 

08:30 hrs Retail Sales Mar

( 0.0% vs 1.1% )

Ex-Auto ( 0.0% vs 1.0% )

 

08:30 hrs PPI Mar ( -0.1% vs 0.7% )

CORE ( 0.1% vs 0.2% )

 

09:55 hrs Michigan Sentiment April

( 78.0 vs 78.6 )

 

10:00 hrs Business Inventories Feb

0.4% vs 1.0% )

Market Strategies

Trading Fundamentals

Basic Material Shares continued to fall, down 3.11%, the third consecutive down week and had a deleterious effect on the other markets.

Technology didn’t perform much better , off 2.83%; Oil and Gas lost 2.41%; Industrials 2.27% and Consumer Goods minus 1.05%; Financials fell 1.03% and Consumer Services 0.5% rounding out the seven losers. There were three winners: Telecommunications continued very strong up 2.33% in a down market. Utilities added 0.91% and Health Care managed a 0.52% gain.

 

Market Strategies Economic Data

Nonfarm Payrolls increased by 88,000, about 104K below the consensus. Private Payrolls grew by 95K, down from 246K last month and well below expectations of 210K. It is possible that fears of sequestration caused uncertainty among employers. The Unemployment Rate fell to 7.6%.

The decline in the unemployment rate, however, was not due to job growth. The labor force participation rate dropped to levels not seen since the late 1970s and caused the unemployment rate to decline. If the labor force participation rate had remained at February levels, the unemployment rate would have increased to 7.9%.

Hourly earnings did not grow at all and the average workweek grew to 34.6 hours from 34.5.

The Feb Trade Balance fell to -$43.0 Blns, an improvement of $ 1.7 Blns from January. The number will help bolster GDP revisions for the first quarter.

 

Market Strategies

Technical Information

Support Levels S&P 500    1533 – 1537

Resistance S&P 500           1562 – 1568

 

Support Levels DOW          14,385 – 14,145

Resistance DOW                 14,570 – 14,630

 

Support Levels QQQ           67.10 – 67.30                  

Resistance QQQ                  69.09

                  

Support Levels Nasdaq      3150

Resistance Nasdaq             3278

 

Market Strategies Cycles

According to the Stock Trader’s Almanac, April is the best DJIA month since 1950, second best for S&P and fourth best for NASDAQ (since 1971). In post-election years April remains a strong month. Its DJIA’s second best month, gaining 1.9% on average, fourth best for S&P 500 and third best for NASDAQ. April is also the last month of the “Best Six Months.”

 

NOTE: This is a Sample Issue Only!

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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. 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 three small penny stocks we represent for a total outlay of $ 9,725 is well worth the risk.

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 its free-trading shares in companies it represents at any time.

 

CONTACT

Please Direct All Inquiries To:

Mike King

Or

Charles Moskowitz (781) 826 8882

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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