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$30,749 Profits Produced

January 2013 To November 18, 2013

 

The $10,000 Portfolio is now worth $40,749

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November 11, 2013

Market Strategies Newsletter

Sample Issue

Covering High Return Balanced Investing Strategies To

Make Money In Up Or Down Markets

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

 

Read the .pdf format of the

Stock Options Trading – Market Strategies Newsletter

November 18, 2013

http://www.princetonresearch.com/11-18-2013-Market-Strategies.pdf

 

Market Strategies Stock Options Trading

$10,000 Account

There are five open positions:

BAC Dec 14 Calls

CSCO Dec 24 Calls

DOW Dec 39 Calls

JPM Dec 55 Calls and

NBG Jan 2015, $7 Calls

 

Funds in Use $ 1,738

 

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Market Strategies Stock Options Trading

$10,000 Account

Traders Comments

 

This week we recorded a gain of $834

bringing the YTD performance to $30,749

 

2013 Total Returns Of 307%

 

The $10,000 Portfolio is now worth $40,749

 

This was a difficult week with the account getting caught in the CSCO surprise downside earning and forward guidance.  I texted on Thursday morning that you should not sell the 12/24 calls on the 50% Rule since there was nothing to gain from selling a call @ $ .02 and receive $2.00

for each call.  I believe that the stock may bounce back a bit and will text if and when we become sellers. The unrealized loss is roughly $580, so it still was a positive week.

 

One of the “unknowable” consequences that reared its head late in the week was the disclosure that several of our biggest international companies are seeing pushback on the sales of their products due to the security concerns based on the NSA spying issue.  This should be a reminder that trouble can come from anywhere, and that they don’t ring a bell at the top of the market.

 

That said, we continue to move higher…One of the factors that I consider, the participation of the financials, has finally arrived.  Moody’s downgrade, dramatically late, had no effect on the group as it seems ready to move to new recovery highs.  There are very few periods when we continue higher without this group……

We will continue to look for opportunities across all sectors.  With so many big names like INTC, with loads of cash, a good yield and riding the rising 200 day MA, I’m certain we can find some former favorites that are under appreciated.

…CAM

 

Market Strategies Stock Options Trading Chart

$10,000 Account

New Trades

Buy 8 INTC Dec 24 Calls @ $ 0.82

Buy 4 FDO December 72.50 Calls @ $ 1.40

Remember, these trades are based on your participation in the

Subscriber Members Only

TEXTING SERVICE TO RECEIVE ALL UPDATES.

 

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 25^th 147 calls or puts.

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

Market Strategies $100,000 Trading Portfolio

Buy 1500 GURE @ $ 2.55

Buy 500 NAT @ $ 8.94

 

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 past Market Strategies Newsletter issues available in the 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.

 

Market Strategies $100,000 Trading Portfolio

Recommendations And Overall Comments

New Trades:

1)  Buy 16 INTC December 24 Calls @ $ 0.82

2) Buy 8 FDO December 72.50 Calls @ $ 1.40

 

We gained $ 2,433.00 in

closed out positions last week

increasing our profits for the year

to a hypothetical $ 62,453

not counting open positions losses of about $ 11,104

 

We also have not counted dividends received on stocks like Apple and JP Morgan.

We have five long options positions:

The Stock table has the following 20 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 $ 3,476 in five options positions and

$ 60,776 in 20 stock positions

totaling $ 64,252 with
$ 35,748.00 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.

 

NOTE: This is a Sample Issue Only!

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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

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

 

10:00 hrs NAHB Housing Market Index Nov ( 55 vs Same )

Tuesday08:30 hrs Employment Cost Index 3^rd Qtr ( 0.5% vs Same )

Wednesday07:00 hrs MBA Mortgage Index 11/16 ( NA vs -1.8% )

 

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

Ex-Auto ( 0.1% vs 0.4% )

 

08:30 hrs CPI Oct ( 0.0% vs 0.2% )

CORE ( 0.2% vs 0.1% )

 

10:00 hrs Existing Home Sales Oct ( 5.20M vs 5./29M )

 

10:00 hrs Business Inventories Sept ( 0.4% vs 0.3% )

 

10:30 hrs Crude Inventories Sept ( NA vs 2.640 ( Mln bbls )

 

14:00 hrs FOMC Minutes ( Meeting of Oct 30^th )Thursday08:30 hrs Initial Claims 11/16 ( 333K vs 339K )

Continuing Claims 11/09  ( 2863K vs 2874K )

 

08:30 hrs PPI Oct ( -0.2% vs -0.1% )

CORE ( 0.1% vs Same )

 

10:00 hrs Phila Fed Nov ( 11.9 vs 19.8 )

 

10:30 hrs Natural Gas Inventories 11/16 ( NA vs 20 bcf )

Friday10:00 hrs JOLTS – Job Openings  Sept ( NA vs 3.883Mln )

 

Market Strategies Trading Fundamentals

The Dow Jones Industrial Average gained 200 points or 1.3% for the week or 21.8% for the year to close at 15,961.70 an all-time new high. ( 13,104.14 to 15,961.70 ) The S&P 500 Index rose 1.6% or 28 points for the week to close at 1798.13 or for the entire year up 26.1%. ( 1426.19 to 1798.18 ). Equity market all over the world rallied as well 1-2%. Stocks are benefitting from low interest rates and the apparent policies of the new regime, with new incoming chief Janet Yellen, coming into the Federal Reserve to maintain a policy of low interest rates, which in turn promote higher risk stock opportunities.

 

While stocks have surged the economy is looking forward to growth as presently it is operating at a low gear as indicated from results of major companies like Cisco ( CSCO: $ 21.53 ) down 8.4% for the week. Kohls ( KSS: $ $ 53.95 ) down 5.4% reported lower same store sales and quarterly earnings. It noted many of its customers are struggling with falling incomes amid economic uncertainty.

Market Strategies Economic Data

Many of the economics statistics remain skewed as a result of the government shut-down which had their effect on both September and October numbers.

The U.S. trade deficit widened to $41.8 bln in September from a downwardly revised $38.7 bln (from $38.8 bln) in August. The Briefing.com consensus expected the trade deficit to increase to $39.1 bln. The goods deficit increased by $3.0 bln, from $58.3 bln in August to $61.3 bln in September. The services surplus declined to $19.5 bln from $19.6 bln.

                   

Market Strategies Technical Information

Support Levels S&P 500    1758

Resistance S&P 500           1808

 

Support Levels DOW          15,734

Resistance DOW                 15,995

 

Support Levels QQQ           8236                  

Resistance QQQ                  8445

                  

Support Levels Nasdaq      3904

Resistance Nasdaq             4087

 

Market Strategies Cycles

Stock markets are in overbought territory. Interest rates must remain low or will be an impeding factor as they will tend to rise at this point in the economic cycle. Nevertheless, Second day down patterns should remain as good buy opportunities.

November begins the “Best Six Months” for the DJIA and S&P 500, and the “Best Eight Months” for NASDAQ. Small caps come into favor during November, but don’t really take off until the last two weeks of the year. November is the number-three DJIA and S&P 500 month since 1950.

Since 1971, November ranks third for NASDAQ. November is also third best for Russell 1000 and Russell 2000 fourth best since 1979.

November maintains its status among the top performing months as fourth-quarter cash inflows from institutions drive November to lead the best consecutive three-month span November-January. The month has taken hits during bear markets and November 2000, down –22.9% (undecided election and a nascent bear), was NASDAQ’s second worst month on record—only October 1987 was worse.

In post-election years, November’s market prowess is relatively unchanged. DJIA has advanced in 12 of the last 15 post-election years since 1953 with an average gain of 1.7%. S&P 500 has been up in 11 of the past 15 post-election years. Small cap perform well with Russell 2000 climbing in 6 of the past 8 post-election years, averaging 2.6%. The only real blemishes in the November post-election year record are 1969 (DJIA –5.1%) and 1973 (DJIA –14.0%, OPEC oil embargo).

 

Gold prices tend to move up prior to the holidays, and the trend has worked especially well over the last 13 years. Seasonally speaking, it is best for traders to go long on or about November 19 and hold until about December 4. Over the last 38 years, this trade has worked 21 times for a success rate of 55.3% .The cumulative profit tallies up to $27,400. Up until last year this trade had been profitable for 12 straight years (2000-2011). The longer-term history of this trade is not as good, nonetheless profitable. Gold has had one of its toughest years this year, but this is a short-term trade and gold has become oversold and appears poised for a bounce. ( Stock Trader’s Almanac )

 

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Disclaimer – 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. Princeton will be engaged by Target Energy. No contract is currently in place. 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 two small penny stocks ( REPR and AIVN ) we represent for a total outlay of $ 4,725 is well worth the risk. The Target ADR trades at about $ 5.90 in U.S. vs 0.065 in Australia. Princeton owns 400,000 Australia shares and about 500 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 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 (702) 650-3000

mike@princetonresearch.com

Princeton Research

3887 Pacific Street, Las Vegas, Nevada 89121

 

Phone: (702) 650-3000

 

Fax: (702) 697-8944