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October 13, 2014

Market Strategies Newsletter  Sample Issue

How to trade binary options


Options Trading Newsletter

Where To Invest Now and

Options Trading Newsletter Covering:

Options Trading Strategies

How To Trade Options

Stock Options Trading Alerts

Best Stocks To Buy October 2014

Where to Invest October 2014


Total Gains for 2014 Year $ 11,320

Over 113% Returns

Over 284% Gains In 2013

Options Trading Newsletter

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High Return Investments Trade Alerts

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In 2013 YTD gains were $28,479

Over 284% Returns

A $10,000 Portfolio would be worth $38,479

how to invest $10000

Options Trading Newsletter Options Trading Strategies

$10,000 Trading Account

There are No Open Positions

Funds in Use $ 0

Week 40 was a minor loss of $95 in the Options account.  We took losses on LVLT, FB, and ENDP on the 50% Down Rule and profits on MOS and JBLU positions.  Keep in mind that the LVLT, FB, and JBLU were carryover positions from gains taken on the 100% UP Rule in the last couple of weeks.  YTD gains are $11,320 and we have NO FUNDS IN USE.

As I’ve said here for the last several weeks, I am VERY wary of the action at these levels.

Increased daily ranges tend to be prevalent at turning points.  Since we are still awfully close to all-time highs, a change in direction would be ugly. If you follow these comments you know that I’ve been using smaller and smaller positions so that we can participate in the upside without too much risk of the kind of week we just had to endure.

We now go into the week with no open positions and plenty of buying power.

This was also accomplished in the $100,000 account by taking both gains and losses to bring the funds in use to the lowest level of the year.

We should be able to find stocks that are at or very near good long term support.  The flexibilityfrom having lightened up positions means we can pick and choose.  Monday should entail some follow-thru from the weakness Friday. The lack of a bond market on Monday for the Columbus holiday may exacerbate any one-sided action that may occur.  S & P500 has bottoms from August around 1900 and massive support from the tops from 1890-1900 as well as the 200 day moving average at 1896.

Is it “THE” correction everybody has wanted??  We shall see. I will be doing most of my trading at the extremes taking positions that will be of the “right or right out” nature.



Market Strategies $10,000 Trading Account Trade Table

New Trades:

  • Buy 6 SPY October 191 Calls @ $ 0.95
  • Buy 4 DD November 67.50 Calls @ $ 1.06
  • Buy 4 DE November 82.50 Calls @ 1.09


10/08 Sold 5 JBLU October 10 Calls 1.10           550       275 Gain
10/07 Sold 4 MOS November 42.50 Calls 1.74           696       276 Gain
10/07 Sold 6 ENDP October 75 Calls 0.15             90          96 Loss
10/06 Sold 3 LVLT October 48 Calls 0.35           105          60 Loss
10/06 Sold 5 FB October 80 Calls( 50% Loss Rule ) 0.48           240        240 Loss
10/06 Sold 5 AGQ October 51 Calls( 50% Loss Rule ) 0.50           250        250 Loss
10/06 Bought 6 ENDP October 75 Calls 0.31 186
10/06 Bought 4 MOS November 42.50 Calls 1.05 420
10/03 Sold 5 JBLU October 10 Calls( 100% profit Rule ) 1.20           600        325 Gain
09/30 Sold 5 FB October 80 Calls 1.52         760        280 Gain
09/30 Bought 5 AGQ October 51 Calls 1.00 500
09/30 Bought 10 JBLU October 10 Calls 0.55 550
09/25 Bought 10 FB October 80 Calls 0.96 960
09/18 Sold 2 LVLT October 48 Calls( 100% Profit Rule plus gap up leaving 3 lots long ) 1.15         220       120 Gain
08/28 Bought 5 LVLT October 45 Calls( Leaves 3 lots ) 0.55 275

Remember, these trades are based on your participation in the

Subscriber Members Only



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.

We may trade weekly options and they are noted: SPY 1/25 147 for SPY Jan 25th 147 calls or puts.


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MARKET Laboratory – Weekly Changes

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






S&P 5001906.13






Russell 20001053.32
Nasdaq 1003870.85



Gold (spot)1221.0



Silver (July)1730.3






Heating Oil256.02



Unleaded Gas2.2575



Natural Gas3.859






Put/Call RatiosS&P 100



Put/Call RatiosCBOE Equity




Bonds141-09 +2-02

3.03% -0.15%

10 Yr. Note126-174







CRB InflationIndex




Barron’s Confidence68.1%





5 Yr. Note119-144 +31

1.53% -0.23%




DJ Utilities561.67












M1 Money  Supply+9.44%

September 29th

M-2 MoneySupply


September 29th

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.

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Market Strategies Technical Information

Support Levels S&P 500        1903 – 1875

Resistance S&P 500              1958


Support Levels DOW          16,490

Resistance DOW                16,752


Support Levels QQQ            93.80

Resistance QQQ                  97.70


Support Levels NASDAQ      4255

Resistance NASDAQ            4558


New Stock Recommendations $ 100,000 Trading Account

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)
UDOW 100 122.10      10/08 121.60 10/08/14 ( $ 50 )
MDBX  400 9.32      10/06
UDOW 100 117.10      10/02 121.35x 124.40 10/06/14 $ 730
JBLU  300 10.32      09/30
AGQ  100

47.29 bought the original 200     09/30 45.60 10/03/14

49.10 10/09/14( $ 169 )

$ 272 FCX 15034.99     09/09    AUXL  20018.55     08/2929.39×32.92 10/09/14$ 2874 GALE 15003.05     08/11 2.06 10/06/14( $ 1485 ) GRPN  5006.35     07/31 6.76 10/06/14$ 205 BCRH 30019.45     07/1017.25sco17.25 10/10/14( $ 660 ) NBG 300  2.95     05/19    XRGYF 5000*0.407     03/14    GRPN 50010.40     01/28 6.76 10/06/14( $ 1820 ) RPTP 40015.37     01/16    AA 30010.06     01/10 16.03 10/09/14$ 1791 GSG 15032.6412/2332.21 sco   NBG 3004.088/12    TEXQY* 2006.567/11    NBG 30012.105/23    AAPL 3576.8511/08/12    REPR* 50000.2210/22/12.12 sco

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

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


Get The Options Trading Strategies 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, 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.

Stock market News Today

Market Strategies $100,000 Trading Portfolio

Recommendations And Overall Comments

New Trades:

Buy 12 SPY October 191 Calls @ $ 0.95

Buy   8  DD  November 67.50 Calls @ $ 1.06

Buy   8  DE  November  82.50 Calls @ $ 1.09


There were six closed out option positions last week with a small loss of $ 190.

There were also nine closed out stock positions with a net gain of $ 1,857.

The weekly result showed a profit of $ 1,667.

For the full year to date we have gains of $ 29,354.

There are less open stock positions in such volatile conditions.

We now have no open options positions.


The Stock table has the following 12 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 and are using

$ 35,860 in 12 stock positions and

no options positions totaling

$ 35,860 with

$ 64,140 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.

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Previous Week’s Recommendations and

Rules for the Market Strategies

$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
Option Cost Date Sold Date Profit/(Loss)
ENDP Oct 75

12 lotsCalls


( Stopped out on 50% Loss Rule )10/07/14( $ 192 )MOS Nov 42.50

8 lotsCalls

1.0510/06/141.7410/07/14$ 552JBLU Oct 10

20 lots

10 lots openCalls

0.5509/30/141.20 ( Sold Half on 100% Profit Rule

1.10 Sold Balance10/03/14


10/08/14$ 650


$ 550AGQ Oct 51

10 lotsCalls


( Stopped out on 50% Loss Rule )10/06/14( $ 500 )FB October 80

20 lots

10 lots openCalls

0.9609/25/141.52 Sold 10 half of the 20 lots


( Stopped out on 50% Loss Rule )09/30/14







$ 560




( $ 480 )AAPLOct3rd100

12 lotsCalls

1.1309/25/141.7209/30/14$ 708

LVLT Oct 48

12 lots

6 lots remainCalls

0.5508/28/141.15 Sold half on 100%  Profit Rule plus Gap

0.35 Sold Balance09/18/14



10/06/14$ 360



( $ 120 )

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’ Economic Numbers and Media Data

Monday Columbus Day in U.S. Thanksgiving Day in Canada

Stock markets are Open; However, earnings reports continue tomorrow

TuesdayBefore the Open:

Citigroup ( 1.13 vs 1.02 )

JP Morgan Chase ( 1.38 vs 1.42 )

Wells Fargo ( 1.02 vs 0.99 )

Johnson and Johnson ( 1.43  vs 1.36 )


After the Close: CSX ( 0.47 vs 0.46 )

Intel ( 0.65 vs 0.58 )

WednesdayBefore the Open:

Bank of America  ( 0.34 vs 0.20 )

Blackrock ( 4.71 vs 3.88 )


07:00 hrs MBA Mortgage Index 10/11 ( NA vs 3.8% )


08:30 hrs Retail Sales Sept ( -0.1% vs 0.6% )

Retail Sales ex-Auto  ( 0.3% vs 0.3% )


08:30 hrs PPI Sept ( 0.1% vs 0.0% )

CORE PPI ( 0.1% vs 0.1% )


08:30 hrs Empire Manufacturing Oct ( 20.0 vs 27.5 )


10:00 hrs Business Inventories Aug ( 0.4% vs Same )


14:00 hrs Fed’s Beige Book for October ( NA )


After the Close: American Express  ( 1.35 vs 1.25 )

eBay  0.67 vs 0.64 )

KMI ( 0.31 vs 0.27 )

LV Sands ( 0.87 vs 0.82 )

Netflix ( 0.90 vs 0.52 )

ThursdayBaker Hughes ( BHI 1.14 vs 0.81 )

Baxter ( 1.31 vs 1.19 )

Blackstone ( BX: 0.86 vs 0.56 )

Delta ( 1.18 vs 1.41 )

Goldman ( GS: 3.20 vs 2.88 )


08:30 hrs  Initial Claims 10/11 ( 290K vs 287K )


08:30 hrs Continuing Claims 10/04  ( 2400K  vs 2381K )


09:15 hrs Industrial Production Sept ( 0.4% vs -0.1% )

Capacity Utilization ( 79.0% vs 78.8% )


10:00 hrs Philadelphia Fed Oct ( 20.0 vs 22.5 )


10:00 hrs NAHB Housing Market Index Oct ( 59 vs Same )


10:30 hrs Natural Gas Inventories 10/11 ( NA vs 105bcf )


11:00 hrs Crude Inventories 10/11 ( NA vs 5.015 Mln bbls )


16:00 hrs TIC Flows Net Long term ( NA vs -$ 18.6Bln )

FridayBefore the Open:

GE ( 0.38 vs 0.36 )

Honeywell ( 1.42 vs 1.25 )

Morgan Stanley ( 0.54 vs 0.50 )

Sun Trust Banks ( 0.80 vs 0.66 )

Textron ( TXT: 0.53 vs 0.35 )


08:30 hrs Housing Starts Sept ( 1022K vs 956K )

Building Permits ( 1040K vs 998K )


09:55 hrs Michigan Sentiment Oct ( 84.0 vs 84.6 )



Market Strategies Fundamentals

Volatility catapulted 46% last week, its largest weekly move in many years. On Wednesday, the Dow travelled from a low of 16,663.36 to 17,006.91, closing at 16,994.22, up 274.83 points or 1.6%. Thursday was a complete reversal, the Dow dropping 334.97 points or 1.97%, which of course is a very bearish pattern to say the least, a mirror image down day on huge volume with a big range. Friday was a continuation of the trend adding another 115 points totaling 466 for the week.

The DJ Transportation Average, which had been positive all year, succumbed to an Ebola scare and lost the most, 588.73 points, or 6.94%, its largest loss in one week. Nasdaq Composite fell 199.39 or 4.45%; The S&P 500 lost 61.77 points or 3.14% while the Russell 2000 continued its losing ways, off another 51.42 points or 4.65% for the week.

The markets make their move; then the pundits, the experts look for a reason why. Foreign investors have bid a combined $ 325 billion for American firms this year spurting demand. The dollar has surged to its highest level in four years while sporting a current account deficit in the amount of 2.3% of GDP. The greenback remains well below levels in 2001 when it traded above 100. Those days will hardly be seen again as America spends heavily on defense in the Mideast not able to depend on NATO and with foreign policies inept at best in mishandling of Syria which now has evolved with ISIS, another worry and you can believe it,  another worrisome factor and a growing expense.

On October 7th, the IMF lowered its forecast for global growth in 2014 to 3.3% from 3.7% just six months ago. The biggest reductions of course are in Europe. German Industrial production fell 4% in August while factory orders dropped 6% both of which were the largest declines in five years. The MF reduced its forecast for Italy’s GDP growth to decline 0.2% fro a previously predicted + 0.3%. None of these European countries seem to have an interest to support Mario Draghi, or even NATO. That means we the U.S., with our overburdened account deficit  will again have to spend in the Mideast. Meanwhile, Germany, which is slow to commit funds and personnel to the Mideast, has a positive current account surplus of 7.2% of GDP.

France has posted worries over paying for its mounting debt obligations.  Both France and Italy are hampered by very high labor costs caused by strong labor unions  that makes them uncompetitive with the rest of the world.   The evolving emotional effects and emerging counter measures of Ebola has put downward pressure on transportation-related values.

The slowdown engendered by Russia’s involvement in the Ukraine has created minor havoc with some trade, but their economies are overshadowed by a high cost of doing business in the European block.

Concomitantly, student unrest in Hong Kong, the drop in the Japanese Yen  and general weakness in China’s industrial production and real estate market has slowed the perception of their forward raw material needs causing a drop in commodity prices. The weakness in the yen has been another competitive factor causing China to be headed for its worst year of economic growth since 1990.

All of this has propelled the greenback to higher levels. However, by historical standards, the dollar remains very cheap.

Alpha Pro Tech ( APT: 7.43 ) That we have shown in the bottom table makes the disposable protective apparel to retard the spread of infection like Ebola. The table at the bottom of this  letter  has had some good winners both long and short ( SPXU; VXX ) which have made profits on the long side when the markets go South.


Market Strategies Economic Data

The initial claims level fell to 287,000 for the week ending October 4 from a slightly downwardly revised 288,000 (from 287,000) for the week ending September 27. The Briefing.com consensus expected the initial claims level to increase to 295,000. Wages had been growing at a tepid rate, just 2%, barely above inflation, but now as inflation decreases and both wages and salaries increase there is a forward look.

The continuing claims level fell to 2.381 mln for the week ending September 27 from an upwardly revised 2.402 mln (from 2.398 mln) for the week ending September 20. The consensus expected the continuing claims level to increase to 2.425 mln.


Key Factors

The JOLTS-Jobs Openings news release last Tuesday October 7th revealed there were 4.8 million job openings on the last business day of August, well up from July and the highest level since January 2001. There are now less than 2 job openings per unemployed person. In January 2009 there were 6.8 unemployed for every job opening. As the pool of unemployed dries up, companies will need to increase salaries and incentives including higher wages which will increase consumer spending, the most significant part of GDP.


Over the past four weeks, the initial claims level has averaged 288,000 per week. That is the lowest 4-week moving average since January 2006 when the average briefly reached 287,000. The initial claims level hasn’t stayed below that level for two or more weeks since June 2000.

Clearly, the employment picture has improved dramatically.

Undervalued Small Cap Stocks

We have bought positions in each of these companies.
Target Energy* ( TEX.AX  0.05  Australia ), In the USA, ( TEXQY: $ 5.50 ) a new ADR.

This company trading at a nickel could earn more than where it is now trading.

Perhaps 7 to 10 cents is in the cards.

Their business valuation exceeds market cap.


Leo Motors ( LEOM $ 0.07 )*

Has merged with LGM,  a potential to be the Tesla of Asia. We like it now, above its 13-day moving average. Please go to www.leomotors.com ( English Version ) Risk is 2 cents. You will be hearing about a new short-circuit technology very soon. Many new breakthroughs in electric energy  are coming! Look at their most recent 8K.


Cleveland BioLabs, Inc ( CBLI $ 0.41 )*

CBLI has done much research on cancer as well as developing a prevention for radiation sickness. Just imagine the catastrophe if radioactive material falls into the wrong hands. The Russian Medical Federation has invested heavily in this.  Entolimod is being developed as a radiation treatment.

To learn more about Cleveland BioLabs, Inc., please visit the Company’s website at http://www.cbiolabs.com.

Cleveland BioLabs (CBLI) Announces

Green Light to Submit

Pre-Emergency Use Authorization Application for Entolimod

See news


Labor Smart, Inc. ( LTNC: $ 0.048 )* 

Top line sales growth is significant. They deliver labor solutions at assigned jobsites ready for work while other services are still sending candidates to be interviewed.  Labor Smart delivers people-power to small and medium sized businesses in warehousing, freight handling, light industrial services, manufacturing, social events, and retail industries. They also support commercial construction and demolition industries with general labor and skilled trades people. Labor Smart was founded in 2011, is based in Hiram, Georgia and currently operates 30 branch locations in the Southeast and Central States. Their growth model includes both new office establishments in addition to acquisitions.

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Latest Investment News

Market Strategies Economic Cycles


         October Volatility Strong Dollar & Geopolitics Deliver Seasonal Dip Setting Up Q4 Rally


Nineteenth century philosopher George Santayana once quipped,


“Those who cannot remember the past are condemned to repeat it.”


This is the cornerstone of our investing philosophy. Simply put, we analyze markets from an historical perspective, with an eye toward identifying cycles and patterns that tend to repeat year after year. On top of that, we focus on small cap/high growth stocks because we think this corner of the market Wednesday buying frenzy could not get the S&P 500 past the 50 day price moving average at about 1,970, which now becomes major resistance. The Dow equivalent is 16,994. The Russell 2000 needs to surpass 1,105.


Midterm election year Octobers have been downright stellar thanks to the major turnarounds mentioned above; ranking number one on the Dow, S&P 500, NASDAQ and Russell 1000 and second for Russell 2000. This is also the beginning of the sweet spot of the four-year-presidential-election-cycle. The fourth quarter of the midterm years combines with the first quarter of the pre-election years. However, this year we are encumbered with geopolitical events that are unsettling the whole world notwithstanding the markets making for unpredictable volatility. Patience is rewarded.


We like stocks that benefit from lower energy prices. Deere and Co ( DE: 80.98 ) is the largest manufacturer and distributor of agricultural equipment worldwide. Deere is in the midst of an $8 billion stock buyback program while offering a 3% dividend. Deere has amazing free cash flow generation.

The average P/E ratio for the peer group consisting of Exxon Mobil ( XOM: 91.60 ), Chevron ( CVX: 113.89 ) and ConocoPhillips ( COP: 70.36 ) ( BP: 41.54 )  stands at only 11.17x, highlighting that all the companies in the energy peer group are literally on sale which offers the best opportunities for portfolio appreciation.









Stocks to buy on an October dip:


Symbol Name Business Description PE P/S MV mln Price Buy Limit Stop Loss
APT Alpha Pro Tech Medical  Disposables 18 1.1 5.1 7.43  4.42 3.21
IIIN Insteel industries Metal fabrication 29 0.7 411 19.82 21.22 18.50
KR Kroger Retail Food 17 0.24 24.6K 53.92 48.90 46
XOM Exxon Mobil Energy 13.4 1.1 420K 91.60 94.40 89
SIL Silver Miners ETF Silver ETF NA NA 10.98 10.93 10.41
UAL United Cont Hld Transportation 16 1.2 18.1K 48.28 46 43
DE John Deere Farm Equipment 9 0.80 29.0K 41.62 40 37
BELFB Bell Fuse Inc B Electronics 9.5 0.74 276 23.60 23 21.50
SPXU Ultra Short S&P Hedge purposes 45.62 43.20 41
VXX VIX Volatility Hedge Portfolio 29.62 27.10 26
SAN Banco Santander World Banking 18 2.73 118.6K 9.22 9.30 8.50
MOS Mosaic Company Agriculture Chemicals 70 2.10 41.62 42.28 38.70

Highlighted numbers indicate execution



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Rule 17B Attestations and Disclaimers


Princeton Research, Inc. has approximately 2,581,578 shares of AIVN both free and restricted and represents them for Investor relations. 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. Princeton was paid $ 2,500 to write a report on Xinergy. Princeton has signed a contract with CBLI to be paid $ 2500 for July and August for investor relations. Princeton has been engaged by Target Energy. No contract is currently in place. Princeton was paid about 500,000 restricted shares of Leo Motors.

When there is no movement in penny stocks, even though there is none or very small losses, we will liquidate ( sold AIVN on stop ) even though we like the company, if money is needed for better opportunities.


We now believe REPR represents upside opportunity. The Target ADR trades at about $ 4.50 in U.S. vs 0.05 in Australia. Princeton owns 400,000 Australia shares and about 900 U.S. ADR’s.


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 e-mail issue. Princeton may buy or sell its free-trading shares in companies it represents at any time.




Please Direct All Inquiries To:

Mike King

(702) 650-3000


Princeton Research

3887 Pacific Street,

Las Vegas, Nevada 89121


Fax: (702) 697-8944

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Stock Market News Today


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