Options Trading Strategies

Market Strategies Newsletter

Covering High Return Balanced Investing Strategies To

Make Money In Up Or Down Markets

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

October 1, 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/10-1-2012-Market-Strategies.pdf

 

$10,000 OPTIONS Trading Account

New Trades for this week:

NOTE: This is a Sample Issue Only!

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The Options Trading Strategies

$10,000 Portfolio Had A

$1246 Gain This Week

to bring our yearly gains to

$14,733 before commissions.

 

This is a YTD Return of over 147%

We have 4 option positions.

We are using $ 2,805 of the $10,000 portfolio.

 

Options Trading Strategies Traders Comments

We started the week with low risk options positions in YELP, TBT (the interest rate yield etf ), GLD (which we partially liquidated on the 100% rule) and a short of JBHT (the trucking company).

We continued with our balanced approach and took profits on both puts and calls in a market that while down on the week, saw a couple of big up opens.  The Transports continued lower even though oil was little changed during a volatile week.  On a technical basis we have the lowest close for the DJ Transportation average of this year, and while support may be evident, we could test 4715, 175 points lower.

On the political front we will have the first face to face debate on Wednesday night which might actually be helpful for the market.  Markets dislike uncertainty; while the choice may not be evident, at least we should have some more specific information about the candidates.

As I mentioned last week, the difference between what the commentators refer to as volatility and what I see is the likelihood of an increase in volatility. Direction is not clear to me and so I will continue to watch my main market barometers, the financials, transports, gold, oil and technology for a clearer direction.

— CAM

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 Trading Strategies

Recommendations

(1)       Buy 5 AAPL Shares @ $ 645.00

(2)       Buy 1500 NBG @ $ 2.25

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

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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Previous liquidated positions may be found in all weekly market letters September 20^th,13^th, etc or every Monday.

 

INDEX OPTION RECOMMENDATIONS

( Any recommendations will be texted to 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 Option Recommendations 

NOTE: This is a Sample Issue Only!

 

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THE COMPLETE VIP MEMBERS ONLY

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Option Trading Strategies

Overall Comments

We made  $ 2,639 last week.

Our gain for the year was increased to a hypothetical $ 56,941.

 

We have three long options positions and one Put position plus seventeen stock positions remaining.

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 $ 5,660 in the  four options positions and $ 62,968  in the 17 stock positions for a total of $ 68,628.00 with $ 31,372.00 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
• Call  702 650 3000 for up to date information.

 

Note: Previous closed out stock and option positions can be found in all previous weekly newsletters.

This Weeks’ Economic Numbers and Media Data

Monday	10:00 hrs ISM Index September ( 49.7 vs 49.6 ) 10:00 hrs Constructon Spending ( 0.4% vs -0.9% ) Fed Chairman Ben Bernanke speaks at 12:30 edt.
Tuesday	14:00 hrs Auto and Truck Sales Sept ( Autos 5.4 mln Trucks 6.3 mln run rate ) a little lower than August.
Wednesday	07:00 hrs MBA Mortgage Index 09/15 ( NA vs +2.8%) 08:15 hrs ADP Employment Change ( ( 133K vs 201K ) 10:00 hrs ISM Services Sept ( 53.0 vs 53.7 ) 10:30 hrs Crude Inventories 9/29 ( NA vs -2.446M ) 14:00 hrs FOMC Minutes 9/12 meeting
Thursday	08:30 hrs Initial Claims 09/29  ( 365K vs 359K ) 08:30 hrs Continuing Claims 09/22 ( 3273K vs 3271K ) 10:00 hrs Factory Orders Aug ( -6.0% vs + 2.8% ) September Chain Store Sales reported
Friday	08:30 hrs Nonfarm Payrolls Sept ( 120 K vs 96K ) Unemployment rate ( 8.1% vs Same ) Hourly Earnings ( + 0.2% vs 0.0% ) Ave Workweek ( 34.4 hrs vs Same ) 15:00 hrs Consumer Credit Aug ( $ 5.0B vs -3.3B )

Fundamentals

Nine of the Ten Dow Industrial Groups were lower led by Technology off 2.58%. Apple (AAPL: $ 667.10 ) down 4.7% led the decline. Basic Materials fell 2.56%; Oil and Gas 1.75% and Financials 1.57%. Dow Industrials lost 1.30%; Consumer Goods 1.29%. Telecomm which outperformed last week lost 1.05% and some of the largest participants have appeared toppy. Consumer Services also fell by 1.05%; Health Care lost 0.35%. Utilities were the lone gainer up 0.87%.

The Dow Jones Transportation Index which led the decline last week, fell by just 0.37% and appears to have reached support.

Global growth is slowing and it was confirmed by warnings from Caterpillar ( CAT: 86.04 ) off $ 5.68 on the week or 6.2%.Also,  FedEx ( FDX: 84.62 ) warned but was actually up thirty cents for the week indicating possible support. Some Q3 corporate earnings announcements to come in the next two weeks are actually expecting year-over-year declines.

Economic Data

Consumer Confidence for September soared to 70.3 from 61.3 in August, a robust surprise to a nation facing a fiscal cliff. The attitude among participants about the current jobs market improved markedly. The present Situation Index jumped to 50.2 from 46.5 in August while Expectations rose to 83.7 from 71.1 in August.

Initial Unemployment Claims improved last week to 359K from 385K two weeks ago.

The recovery in the Housing Market continues: New Home Sales in August @ 373,000 units were off 0.3% from July but up over 27% from the same period a year ago. The Median price of $ 256,900 for New Homes sold is up 9% from July. Homes valued      at $ 400K and above accounted for 21% of new homes sold versus just 14% in July.

However, weakness persists in the manufacturing sector. The GDP was revised down sharply to just 1.3% growth. Durable goods orders fell 13.2%, while D.G. Ex- Transportation was down a significant 1.6%. A decline in new orders for nondefense aircraft and parts had a whole lot to do with the material decline in August, but going down the lines of the report it can be seen that new orders for primary metals, fabricated metal products, machinery, computers and electronic products, motor vehicles and parts, and capital goods all declined as well.

This all bodes poorly for the upcoming ISM Report on Monday

 

Technical Information

Support Levels:   S&P 500           1415:1427    

Resistance S&P 500      1455; 1474

 

Support Levels:  DOW            13186: 13350

Resistance DOW        13,438; 13,610

 

Support Levels: QQQ             6750; 6810

Resistance QQQ           6900; 6980                    

 

Support Levels: Nasdaq          3040; 3085

Resistance Nasdaq       3180; 3335                                         

                                    

CYCLES

The failure of the Transportation Average to confirm the rally has been a negative for Dow Theory and other trend followers. It seems to hold at the lower levels and acted well last week in light of overall weakness. After breaking out to new recovery highs, the market yielded to typical end-of-September weakness while digesting the Fed’s latest action. Provided the geopolitical environment and economic data do not deteriorate in any meaningful manner in coming weeks, the market is levitating constructively digesting all the bad news.

On September 13th, the Fed went “all in” with monetary policy. It extended a zero-rate pledge through mid-2015 and committed to expand its asset purchases by an additional $40 billion a month “until such improvement is achieved.” They specifically targeted the unemployment rate through the housing market. Of course this will be done within the context of their other mandate, price stability. Reading between the lines of the Fed’s statement it is clear that they are waging all-out war against unemployment. Also, China, the ECB, England and even Russia are trying to improve economic opportunity by the best they can, by making money easier to acquire. Whether the world will ultimately succeed or not is anyone’s guess. In the meantime, why fight the central banks.

 

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

USE THE SUBSCRIBE OFFER BUTTON On YOUR RIGHT

 

Rule 17 B Disclosures

Cross Border paid us 25,000 restricted shares over a year ago. We do not currently represent Cross Border but we like the company. We own about 3,000 shares. Princeton has approximately 2,581,578 shares of AIVN both free and restricted and represents them for I.R.. Princeton also has about 60,000 shares of TXGE. Princeton is paid $ 2500 per month from Lucas Energy.

When there is no movement in penny stocks, even though there is no or very small losses, we will liquidate when money is needed for other opportunities.

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

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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Options Trading Strategies