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

Market Strategies Guide to

Successful Trading

To subscribe to the Options Only Acct Trades simply TEXT the word UPDATES to 69302

and you will automatically be included.

Read PDF Market Investing Strategies Newsletter PDF Version – CLICK HERE – http://www.princetonresearch.com/2-13-2012-Market-Strategies.pdf

 

 

 

 

$10,000 OPTIONS ONLY ACCT:

 

New Trades for this week:
We don’t have any new listed trades this week, stay tuned for text alerts during the week for trades . 

The $10,000 Options Only account had a Gain last week of $1125, increasing our gains for the year to $5497.

 

Four positions remain: the CALM February 35 Calls, JAZZ February 48 Calls, HSGI March 12 Calls and ZSL March 10 Calls. The Open positions are highlighted in the options table below.  Approximately $ 3329 funds are in use.

   This was an interesting week for the markets.  Greece is still somewhere between nowhere and Never- Never Land.  It seems that they will give us all of the encouraging words while continuing to push toward the final act of this tragedy.  At least the market seems to not be held hostage on a daily basis…True to the MO of most politicians, the only way to know if they are lying is to see if their mouths are moving.  The Iran / Pakistan / Israeli / Syrian problems continue to percolate and keep us in suspense.
    But back to the actual market performance, we continue to have good rotation from groups that have yet to become overbought. Friday was not a particularly good day, but the banks are holding on to their gains and making the most of the opinion that it’s more dangerous to be out than it is to risk some of your profits by being unwilling to take positions into the weekend.  Many of the “dinosaur” technology stocks (MSFT, CRUS & CSCO) are acting like they did prior the NASDAQ crash in February 2000…It should also be noted that we are now at highs in the Composite that we haven’t seen for 12 years on a closing basis.  For those who didn’t participate in the “Lost Decade” this is quite impressive.

 

We will continue to keep a balanced portfolio to insure that if we do have a sustained down move, we will not be caught unaware….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 February 6 and 2011 weekly newsletters.

DATE	TRADE	PRICE	COST	PROCEEDS	RESULTS
2/10	Sold 10 WFR March 5 Calls	.72		720	330 Gain
2/10	Sold 3 LUFK February 80 Calls	.95		285	270 Loss
2/9	Bought  8 ZSL March 10 Calls	.93	744
2/9	Bought 10 HSGI March 12 Calls	.60	600
2/8	Sold 10 WFR March 5 Calls	.67		670	280 Gain
2/8	Sold 6 APOL March 50 Puts	.81		486	240 Loss
2/7	Sold 10 HSGI March 12 Calls	1.11		1110	470 Gain
2/7	Sold 3 LUFK February 80 Calls	3.70		1110	555 Gain
2/6	Bought 6 LUFK February 80 Calls	1.85	1110
2/6	Bought 6 APOL March 50 Puts	1.21	726
2/3	Bought 10 HSGI March 12 Calls	.64	640
1/27	Bought 5 JAZZ February 48 Calls	2.05	1025
1/27	Bought 20 WFR March 5 Calls	.39	780
1/19	Bought 4 CALM February 35 Calls	2.40	960

New trades $ 10,000 account…In Texting we have a limited amount of words. In the interest of brevity: OPTIONS ONLY: 2 February ; 3 March. 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

We do not have new stock recommendations this week.

 

Last week we Bought DZZ, ABR and ANX. 
With text alerts we Bought CISG and PNGN, and Sold WG.

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

 

Note: Previous closed out stock and option positions can be found in the February 6 and newsletters dating back to July 20, 2009.  Stay alert on the free texting service for new trades and exits.

 

Model Portfolio Comments/Changes:

 

                                    INDEX OPTION RECOMMENDATIONS

We don’t have New Stock Option or Index Option recommendations this week. Those who follow the texting service should stay tuned for text alerts during the week for trades.

 

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 and TZA, 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 Option Recommendations

 

Option and overall Comments

We had a gain last week of $ 3885 in a down week. Our gain for the year was $11,535 and with last week’s gain has increased to $15,420.  We have Four long options positions remaining, the JAZZ Feb 48 Calls, CSCO Jan 20 Calls, HSGI March 12 Calls and ZSL March 10 Calls. The stock table includes fifteen long stock positions: PRGN, CISG, DZZ, ANX, ABR, PKRK, QUIK, CALM, AOI, DVR, AEZS, LEI, LEOM, XBOR and SDS. The SDS is a double inverse SP500 ETF and DZZ is a double inverse Gold 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 $5,350 in the
options positions and $ 65,600 in the 15 long stock positions for a total of $ 70,950 with $ 29,050 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

• 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)
• The options will be followed until closed out.
• Option Symbols are 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 February 6 and newsletters dating back to July 20, 2009.                                                                                                       

                          

 

 

                     

                                

 

 

                                This Weeks’ Economic Numbers and Media Data

 

 

Economic Data

Domestic data was light last week. University of Michigan consumer sentiment for February slipped to 72.5 from 75.
The Treasury deficit for January dropped to $27.4 billion from the $50 billion deficit in December. The US trade deficit for December grew to $48.8 billion, larger than estimates of $48.2 billion. Initial weekly jobless claims continued to move in a positive direction at 358K, less than the estimated 370K. Consumer credit also came in much better than expected at $19.3 billion, twice the number expected. Wholesale inventories rose by 1% in December again more than expected. 

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

60 %of companies have reported results and about 60% of those results have exceeded analysts’ expectations.
Deere & Co. will issue first-quarter results Wednesday, earnings are expected to be $1.23 on sales of $6.6 billion. General Motors’ fourth-quarter results are on will be released Thursday analysts are expecting 43 cents a share of earnings on revenue of $37.9 billion.

Technical Information

 

      Support Levels:   S&P 500          1334; 1322                   Resistance S&P 500   1361; 1377

                                        DOW           12,740; 12,680             Resistance DOW        12,890; 13,040

                                        QQQ            6190; 6101                   Resistance QQQ        6270 6350                     

                                       Nasdaq         2883; 2829                   Resistance Nasdaq     2937; 2990                                               

                 

                     CYCLES

In the February Almanac, it was noted that February is typically the weak link in the Best Six Months ranking no better than ninth out of twelve months on the major U.S. indices we track. Even bullish election year forces have failed to lift February’s standings with no large-cap index ranked better than ninth (DJIA and S&P 500 since 1952, Russell 1000 since 1980) in election years since 1950. NASDAQ and Russell 2000 have better election year records largely due to a 19.2% and 16.4% gains, respectively in 2000. But, January finished with the best gain since 1997 and February began in typically bullish fashion. So what does history suggest about the rest of February?

Every S&P 500 January gain of 4% or more since 1930 is presented with the subsequent performance over the next 1-month, 3-months, 6-months and full-year. Even with three Depression-era years and post-WWII 1946 in the list, strong Januarys have been especially bullish indicators with average full-year gains of 15.0%. But, February was still a weak link in 9 of the previous 24 big Januarys.

After January’s typically strong finish February opens well for large cap stocks. The first trading day is bullish and it has traded higher in 15 of the past 21 years with an average S&P 500 gain of 0.5%, Strength fades after that until the stronger eighth, ninth and eleventh trading days. Expiration week is marred by two bearish days and begins an often weak second half of the month. Neither small caps nor technology shares completely escape mid-month weakness.

Presidents’ Day is the lone holiday that exhibits weakness the day before and after. (Stock Trader’s Almanac 2012, page 86). The Friday before this mid-winter three-day break is exceptionally treacherous and average declines persist for three trading days after the holiday. ( From Stock Trader’s Almanac must reading )

             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. In addition Princeton has bought shares. 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.

 

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.

 

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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