Where To Invest June 2015 – Market Strategies Newsletter

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May 25, 2015

Market Strategies Newsletter

Sample Issue

 where to invest $10000

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

 

Where To Invest In 2015

Stock Options Trading Newsletter Covering:

Where to Invest June 2015

Best Stocks To Buy June 2015

Stock Market Investing Strategies

Stock Options Trade Alerts

Options Trading Strategies

How To Trade Options

 Year To Date Profits $ 5,421

Over 54% Returns        

 

2014 Profits = $ 20,443

Over 204% Returns

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High Return Investments Trade Alerts

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Market Strategies

$10,000 Trading Account Traders Comments

We have 6 open long positions:

CRR June 45 Calls

DD June 70 Calls

ISRG May 29th 510 Calls

TXN June 55 Calls

SPY May29th 210 Puts and

XLF June 24 Calls

 

Funds in Use $ 1858

 Best Stocks To Buy March 2015

Do they mislead, or are they just inept ??

Clearly I am now more concerned about the divergence of the Transports since we broke all of the prior bottoms made since the new highs of late November last year.  I made the “percentage play” in the IYT buying the calls with a “right or right out” strategy.  The trade was a loss, but only $120.

The other balance position in the SPY puts was a loss at the 50% down rule, so basically it turned into an “alligator spread” where I got eaten alive from both sides.

The problem for me in the divergence issue is the fact that people are again starting to over use the term “bubble,”  and it’s a very scary term.  If it’s not social media or biotech or momentum stocks, or venture-cap funds, it’s the bond market.  While I realize that everyone from CNBC to CNN to the multitudes of sell side analysts need content to deliver, and add to the fact that we haven’t had a  10% correction in years, this area is ripe for the talking heads to exploit.

But if you look for the text book version of what creates a bubble, you will find that the word is tossed around every time any asset class has a dramatic increase in value.  I call it rotation since the term bubble requires a mania that includes not only overvaluation, but also over leverage.

The “Dot-com” bubble clearly was in fact a bubble…The housing crisis was a bubble since besides the extreme overvaluation, it was accompanied by a dramatic increase in the leverage used to fuel purchases.  Funders issued mortgages with no money down and gave people who clearly  didn’t have the ability to meet the requirements of that mortgage the ability to buy.

While we will in fact get that correction, the market sentiment is still solidly neutral and the issue of over-leverage does not exist.  The amount of money sitting on the sidelines and the participation of the public is near dramatic lows. Until that changes we will grind higher. If you want something to worry about just follow the Chinese/American dispute over whether the new man- made islands in the South China Sea extend the Chinese sovereignty as we continue to fly-over and to be warned by the Chinese that we are violating their airspace. This is a prescription for news that causes immediate and dramatic actions.

My question of the week is why are we so reliant on numbers like home sales or housing starts or employment numbers?  This week we learned that the GDP has been misleading for the last 10 years.  Taken along with the number of times that all these numbers are “seasonally-adjusted” or adjusted in the weeks and months that follow their release, what is the point??   They are not to be utilized to decide on a day by day or even month by month basis.  If you want to invest, you already know how things are going by your paycheck and how confident you feel.

Enjoy your long weekend and we’ll get started on Tuesday.

CAM

how to invest $10000

 Market Strategies $10,000 Trading Account Trade Table

New Trades: Options Account:

( 1 ) Buy 15 GRPN July 7 Calls @ $ 0.14

( 2 ) Buy 10 SNSS July 2.50 Calls @ $ 0.35

DATE TRADE PRICE COST PROCEEDS RESULTS
05/22 Bought 10 VA June 30 Calls 0.60 600
05/22 Sold 3 IYT June 152 Calls 1.45     435    $ 120 Loss
05/20 Bought 3 IYT June 152 Calls 1.85 555
05/19 Sold 4SPY May 29th210 Puts (50% Loss Rule ) 0.60     240    $ 240 Loss
05/19 Sold 4 CRR June 45 Calls ( 50% Loss Rule ) 0.95     380    $ 384 Loss
05/18 Sold 1 ISRG May29th 510 Call 4.47     447    $ 153 Loss
05/14 Bought 4 SPY May29th 210 Puts 1.20 480
05/15 Sold 2 TXN June 55 Calls( 100% Profit Rule Leaves 2 lots open ) 1.80     360    $ 180 Gain
05/14 Bought 4 May 29th S&P 210 Puts 1.20 480
05/13 Bought 4 DD June 70 Calls 1.60 640
05/11 Bought 6 XLF June 24 Calls 0.76 456
05/11 Bought 4 TXN June 55 Calls ( filled on June 12th ) 0.90 360
05/08 Bought 4 CRR June 45 Calls 1.91 764
05/04 Bought 1 ISRG May 29th 510 Calls 6.00  600

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.

 

For Free Where To Invest Your Money Now

High Return Investments Trade Alerts

Go To: PrincetonResearch.com/alerts.htm

 

NOTE: In texting we have a limited amount of words. In the interest of brevity:

 

The Quantity and Strike Price for each trade is specific. 1=January, 2=February

 

Trading is hypothetical. We may trade weekly options and they are noted: SPY 1/25 147 for

SPY Jan 25th 147 Calls or Puts.

What Should I Invest In

MARKET Laboratory – Weekly Changes

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

Dow

18,232.02

-40.54

-0.22%

Nasdaq

5089.36

+41.07
+0.81%

S&P 500

2126.06

+3.33

+0.16%

Transportation

8482.31

-198.47

-2.29%

Russell 2000

1252.22
+8.28

+0.67%

Nasdaq100

4527.16

+32.87

+0.73%

Gold (spot)

1204.30

-21.20

-1.7%

  Silver

1705.1

-51.2

-2.9%

Crude

59.72

+0.03

+0.05%

Heating Oil

195.73

-5.05

-2.5%

Unleaded Gas

2.0390

-0.0066

-0.3%

Natural Gas

2.887

-0.129

-4.3%

VIX

12.13

-0.25

-2.0%

Put/Call Ratios

S&P 100

169/100’s

+28/100’s

Put/Call Ratios

CBOE Equity

64/100’s

+5/100’s

 

Bonds

153-25 -1-26

2.98% +0.06%

10 Yr. Note

127-09 -24           2.21%+0.06%

 

Copper

281.10

-11.35

-4.3%

CRB Inflation

Index

225.58

-5.90

-2.6%

Barron’s* Confidence

77.7%

-0.1%

S&P100

934.08

+0.96

+0.10%

5 Yr. Note

119-21 -172

1.55% +0.05%

 

Dollar

96.01

+2.78

+2.9%

DJ Utilities

588.13

+2.39

+0.41%

AAII

Confidence

Index

Bullish

25.2%

-1.5%

Bearish

25.0%

-1.4%

Neutral

49.8%

+2.9%

M1 Money  Supply

+6.94%

May 11th

M-2 Money

Supply

+5.71%

May 11th

 

 

* Component Change in the Confidence Index

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.

Where to Invest June 2015

Best Stocks To Buy June 2015

Market Strategies Technical Information

Support Levels S&P 500        2105

Resistance S&P 500              2138

 

Support Levels DOW          17,910

Resistance DOW                18,440

 

Support Levels QQQ            108.40

Resistance QQQ                  110.90

 

Support Levels NASDAQ      4980

Resistance NASDAQ            5150

 

$100,000 Trading Portfolio Stock Positions and Trades

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)

AGQ 100 43.28       05/22      
DSX  500   7.05       05/18      
AGQ  100 38.68       05/01   44.03 05/12 $ 535
CRM  100 72.90       04/29      
FB  100 82.77       04/15      
IMAX  100 34.46       03/23      
GILD 50 102.73       03/03      
ARRY 500   8.02       02/24      
NAT   500 10.16       02/13      
NBG  600 1.40       02/17      
BAC. Wts 5,000 lots 0.7411       12/26      
BSBR  500 4.84      12/18      
BCRH  300 16.84      12/18      
SAN  600 8.40      12/16      
XCO 1200 3.10      11/28      
AA  500 14.21      10/16      
FCX 150 34.99      09/09      
NBG 300   2.95      05/19      
XRGYF 5000* 0.407      03/14   0.014 5/19 ( $ 1965 )
RPTP 400 15.37      01/16      
NBG 300 4.08 8/12      
TEXQY* 200 6.56 7/11      
REPR* 5000 0.22 10/22/12 .12 sco    

 

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.

Stock Options Trade Alerts


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.

 

For Free Where To Invest Your Money Now

High Return Investments Trade Alerts

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Stock Market Investing Strategies

Stock Options Trade Alerts

Market Strategies $100,000 Trading Account

New Options Trades:

1) Buy  30 GRPN July 7 Calls @ $ 0.14

2) Buy  20 SNSS July 2.50 Calls @ $ 0.35

 

There were four closed long option positions, the CRR June 45 Calls, the ISRG May 29th 510 Calls, the  June IYT 152 Calls and the SPY May 29th 210 Puts netting a loss of $ 1,794.00. We also liquidated the XRGYF stock position for a loss of $ 1,965 for a totaling $ 3,759.00.  We bought 100 shares of the AGQ for $ 43.28, the Silver  ETF.  For the full year to date, we have gains of $ 13,406.00. Open position losses increased to $ 9,607.00. There are four long Option positions: 8 DD June 70 Calls; 4 TXN June Calls; 20 Virgin Airways ( VA ) June 30 Calls and 12 XLF June 24 Calls. The options expire on the third Friday of each Month unless otherwise posted. The Stock table has the following  20 positions: AA,  ARRY, AGQ, BAC.B.WS, BCRH, BSBR, CRM,  FB, FCX, GILD, IMAX  NAT  NBG (3),  REPR, RPTP,  SAN, TEXQY,  XCO:

 

The options call for a $ 2,500 investment unless otherwise stated; each stock position requires $5,000 unless otherwise specifically stated. We are basing money management on a hypothetical $ 100,000.00 and are using a total of $89,631.00 for the 20 open stock positions. There are four long option positions requiring $ 3,716.00 totaling $ 93,347.00, leaving $ 6,653.00 in Cash.  These figures are approximate and there might be errors. We have not counted the dividends received from Apple, JP Morgan, BSBR ( Brazil ), Santander, Blue Capital Reinsurance and others. Blue Capital issued a special extra dividend of $ 0.66 per share which enabled us to reduce our cost by that amount. In addition it pays about 7% per year in regular dividends. We do not count commission costs and all trading once again is hypothetical.

 

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…

Options Trading Strategies

How To Trade Options

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)
VA June 30

20 lots

Calls

0.60

05/22/15      
IYT June 152

6 lots

Calls

1.85

05/20/15 1.45 05/22/15 ( $ 240 )
SPYMay29th 210

8 lots

Puts

1.20

05/14/15 0.60

( 50% Loss Rule )

05/19/15 ( $ 480 )
DD June 70

8 lots

Calls

1.60

05/13/15      
TXN June 55

4 lots remaining

Calls

0.90

05/12/15 1.80

( 100% Profit Rule )

05/15/15 $ 360
XLF June 24

12 lots

Calls

0.76

       
CRR June 45

8 lots

Calls

1.91

05/08/15 0.95 05/19/15 ( $ 768 )
ISRGMay29th510

2 lots only

Call

6.00

05/04/15 4.47 05/29/15 ( $ 306 )

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.

 

investing trade alerts

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

Visit: PrincetonResearch.com/join.htm

 

This Weeks’ Economic Numbers

Earnings Releases and Media Data

Earnings Reports Before the Open on Top of the Row;

After the Close are Below the Economics Numbers.

Monday Memorial Day Holiday U.S. Markets Closed. Markets are also closed in the U.K. Germany and France for various holidays.

Cleveland Fed President Mester speaks on “ the influence of research on financial stability”TuesdayAutoZone ( AZO 9.51 vs 8.46 )

Vice Chair Fischer speaks on the Federal Reserve and the Global Economy

08:30 hrs Durable Goods Orders April ( -0.6% vs 4.4% )

D.G. Ex Transportation ( 0.3% vs 0.4% )

09:00 hrs  Case-Shiller 20 city Index March ( 4.6% vs 5.0% )

10:00 hrs FHFA Housing Price Index May ( NA vs 0.7% )

10:00 hrs  New Home Sales April ( 510K vs 481K )

10:00 hrs Consumer Confidence May ( 94.0 vs 95.2 )

21 Vianet ( VNET -0.02 vs 0.08 ) Fairway Group Holdings ( FWM -0.11 vs -0.21 )WednesdayBank of Montreal ( BMO 1.66 vs 1.63 ) Brown Shoe ( BWS  0.35 vs 0.35 )

DSW ( DSW 0.48 vs 0.42 ) Michael Kors ( KORS 0.91 vs 0.78 ) Tiffany ( TIF 0.70 vs 0.97 ) Toll Brothers ( TOL 0.35 vs 0.35 ) Valspar ( VAL 1.10 vs 1.07 )

07:00 hrs MBA Mortgage Index 05/23 ( NA vs -1.5% )

13:00 hrs $ 35 billion 5-Yr Note auction

G-7 Finance Ministers meet in Dresden through to discuss Greece.

Costco ( COST 1.16 vs 1.07 ) Palo Alto Networks ( PANW 0.20 vs 0.11 )  ThursdayAbercrombie & Fitch ( ANF -0.34 vs -0.17 ) Flower Foods ( FLO 0.30 vs 0.32 )

Jinko Solar ( JKS 0.45 vs 0.20 ) Royal Bank Canada ( RY 1.59 vs 1.47 ) Seadrill ( SDRL 0.63 vs 0.66 ) Sears ( SHLD – 2.59 vs -3.79 ) Toronto  Dominion Bank TD 1.10 vs 1.09 ) Xcerra ( XCRA 0.08 )

08:30 hrs Initial Claims 05/23 ( 274K vs 274K )

Continuing Claims 05/16 ( 2250K vs 2211K )

10:00 hrs Pending Home Sales April ( +1.0% vs +1.1% ) )

10:30 hrs Natural Gas Inventories 5/23 ( NA  vs 92 bcf )

11:00 hrs Crude Inventories 5/23 l ( NA vs -2.674 MlnBbls )

Deckers Outdoor ( DECK 0.00 vs -0.08 ) Gamestop (GME 0.58 vs 0.59 )FridayBig Lots BIG 0.60 vs 0.50 ) China Mobil Games ( CMGE 0.39 vs 0.20 )

08:30 hrs GDP Second Estimate 1st Qtr ( -0.7% vs 0.2% )

Implicit Price Deflator ( -0.1% vs -0.1% )

09:45 hrs Chicago PMI May ( 53.0 vs 52.3 )

10:00 hrs Michigan Sentiment May  ( 89.0 vs 88.6 )

 

Stock Market News Today

Market Strategies Fundamentals

Both the Dow and S&P made new all-time highs Thursday, but lost some momentum Friday going into the long weekend. The S&P 500 closed up 3.33 to 2,126.06 after achieving a new all-time high close of 2130.82. The Dow closed at 18,232.02 after reaching a record close of 18,312.39 on Thursday. Meanwhile the DJ Transportation Average was only able to add 47 points on the big day Thursday and then continued Friday to make new lows closing at 8,482.31, off 198.47 or 2.29% for the week. The Tranny had been the leading sector for the last five years until now they have decided to increase capacity. The DJ Utilities averages have also lagged. The DJU closed at 588.13 for the week up 2.39 or 0.41%, but down from 643,23 off 8.6% from the high for the year.

 

Aside from the most recent deluge in the prices of airline stocks, truckers and railroads have lagged as a result of poor demand for basic materials and traditional necessities such as steel, oil, coal. They have been overtaken in importance by Health Care, which let all Dow Industrial Groups last week up 1.03%. Technology stocks were up 0.73% and was second best. Meanwhile Basic Materials fell 0.77% and continued to be among the worst performing. Oil & Gas was off 0.72%.

 

Meanwhile, it is unlikely that the small 2% expected increase in airline capacity will have much effect on denting their profits going forward. There are only four major carriers; Southwest, Delta, American and United which are dominant at their major hubs and terminals with smaller airlines like Virgin America and Spirit likely to increase their capacity more but hardly making a dent in the overall profitability. U.S. airline air-travel demand is up about 3% this year above the perceived expansion of capacity. American Airlines  ( AAL: $ 48.67 ) -$ 6.06 or 12.6% and United ( UAL: $ 53.69 ) – $ 7.91 or 12.8%, fell the most. Southwest Airlines ( LUV $ 36.86 ) – $ 5.03 or -12%; Delta ( DAL: $ 43.18 ) -$ 3.82 or 8%; Spirit ( SAVE: $ 62.34 ) fell $ 4.77 or 7% while Virgin Air ( VA: $ 28.49 ) + $ 0.21 or 0.7% was actually higher on the week.

   

 

Market Strategies Economic Data

After a big pullback in housing starts in the first quarter, construction levels rebounded in a big way in April. Starts are now back on its 2014 upward path. Single-family starts increased 16.7% in April to 733,000 from 628,000 in March. That was the most single-family homes started since January 2008 when 773,000 were started. It  was also the largest monthly increase, in both percentage and absolute terms, since November 2013. Housing starts increased 20.2% in April to 1.135 mln from an upwardly revised 944,000 (from 926,000) in March. The Briefing.com Consensus expected Housing Starts to increase to 1.019 mln.

Category APR MAR FEB JAN DEC
Starts 1135K 944K 900K 1080K 1080K
  1 Unit 733K 628K 600K 706K 724K
  Multi Units 402K 316K 300K 374K 356K
Permits 1143K 1038K 1098K 1059K 1077K

The Core CPI rose 0.3% in April, well above the consensus and Fed objective of 0.2% which stunted what was the possibility of a solid bond rally. The strong dollar was boosting bonds prior to the CPI notice. A 7% increase in medical costs was the biggest monthly increase since January 2007. While medical costs soared, commodity prices were lower again led by WTI Crude, off 1.53% Friday to 69.79/bbl while copper fell sharply all week down $ 11.35/ton or 4.3%.

 

Fed Chair Janet Yellen speaking in Providence R.I. said that a rate hike would be forthcoming if the economy performs as the FOMC expects. She went on to say the increases would be gradual following the first rate increase. She said the economy still faces headwinds from persistently low business investment and energy sector weakness and that it will be several years before the Fed Funds Rate is back to normal levels.

 

The Conference Board’s Leading Economic Index increased 0.7% in April after increasing an upwardly revised 0.4% (from 0.2%) in March. The Briefing.com Consensus expected the index to increase 0.3%. That was the largest increase in the leading indicators since a 1.0% increase in July 2014. Building Permits easily topped expectations ( 1.143 mln units vs 1.065 mln units ) contributing 0.29 percentage points to the Leading Indicators growth Rate. Nine of the Ten indicators were higher.

The Leading Economic Index maintains steady growth

Category APR MAR FEB JAN DEC
Total Index 0.7% 0.4% -0.2% 0.2% 0.4%
  Manufacturing Workweek 0.00% -0.07% -0.13% 0.00% -0.06%
  Initial Claims 0.07% 0.22% -0.18% -0.01% 0.08%
  Cons. Gds Orders 0.00% 0.17% -0.12% 0.01% 0.05%
  ISM New Orders -0.04% -0.07% -0.06% -0.05% 0.05%
  Nondef. Cap Gds Orders, exc. Aircraft 0.06% 0.00% -0.22% -0.02% 0.04%
  Building Permits 0.29% -0.17% 0.11% -0.05% -0.01%
  Stock Prices 0.03% 0.00% 0.10% -0.05% 0.02%
  Leading Credit Index 0.07% 0.08% 0.11% 0.07% 0.10%
  Interest Rate Spread 0.20% 0.21% 0.21% 0.20% 0.23%
  Consumer Expectations 0.06% 0.07% 0.07% 0.12% 0.05%

Market Strategies Cycles

One of the six basic tenets of Dow Theory states that market averages must confirm each other. When major indices diverge, it is a potential warning sign. DJIA and S&P 500 have broken out to new all-time highs once again this year, mostly on tepid economic data and the rather low bar set for first quarter earnings. NASDAQ and Russell 2000 recently reached new all-time highs, but are not yet participating in the breakout by DJIA and S&P 500. This lack of support from techs and small-caps is worrisome. When the Transports (DJTA) and Utility (DJUA) indices are added to the mix, the broader picture is even more concerning.

 

 

In the above chart, DJIA, DJTA and DJUA have been plotted since last October’s market bottom. All three major indices moved in relative unison from mid-October through the end of last year. In January, DJIA and DJTA both struggled while DJUA average soared on to new highs on hopes of zero interest rate policy lasting even longer. DJIA and DJTA rebounded in February while DJUA crumbled and since the end of February DJUA has gone nowhere, the DJTA has drifted lower as energy moved higher while DJIA moved sideways and finally on to new highs.

 

Although timing is rarely perfect, the duration of time that DJTA and DJUA has languished is becoming significant. This week’s new highs by DJIA and S&P 500 are not likely to last long without the support of tech, small caps, utilities and/or the transports.

 

Oil Prices making a significant low

Along with the drop in production, demand for crude oil is also rising in the U.S. For instance, gasoline demand is expected to reach an eight-year high this year, climbing to 9.1 million barrels per day as shown below:

Source

The improvement in gasoline consumption will be a result of an increase in road travel in the U.S. this year. As per the American Automobile Association, there will be a 5.3% jump in Memorial Day travel this year, which will play a crucial role in powering gasoline consumption higher this year. As such, the combination of lower production and higher demand will lead to an improvement in pricing, and this will help crude oil sustain its recent momentum.

 

On the other hand, the oil war between the OPEC and the OECD could give many oil producers another shot in the arm. Since there are huge stockpiles of oil and gas in the U.S., there is a possibility that the export ban on crude oil exports will be lifted. As per the U.S. Senate:

 

“U.S. Sens Lisa Murkowski, R-Alaska, and Heidi Heitkamp, D-N.D., along with 11 of their Senate colleagues today introduced the Energy Supply and Distribution Act of 2015 (S.1312). This bipartisan legislation would modernize federal energy policy by ending the outdated ban on crude oil exports.”

This will allow Continental Resources to compete in the international market and tap the expected growth in global demand as shown below.

 

Moreover, the absence of a ban will ease the oversupply situation in the U.S. market as well, thereby leading to better pricing. Hence, there are a number of positive indicators regarding crude oil pricing going forward.

 

 

NOTE: This is a Sample Issue Only!

TO GET OUR TRADE ALERTS BY TEXT MESSAGE AND

THE COMPLETE VIP MEMBERS ONLY

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Undervalued Small Cap Stocks

 

Spanish Bank Banco Santander  (SAN: 7.38) is ready to outperform right now. In the last six months, this $98 billion banking play has shed 30% of its market value, dragged lower by ongoing issues in the Eurozone financial system. But things could be about to change for long-suffering shareholders. SAN is starting to show signs of a bottom here. They will have better earnings having cut dividends.

 

Santander is currently forming a double bottom pattern, a bullish reversal pattern that looks just like it sounds. The double bottom is formed by a pair of swing lows that find support at approximately the same price level. The buy signal comes on a breakout through the peak that separates though two troughs. For SAN, that’s the $7.40 breakout level.

 

 

RMS Medical Systems, Inc ( REPR 0.42 )*  Has doubled this year already and can double again .

RMS designs, markets, manufactures portable easy to operate infusion devices, including needles and tubing. It is easy to handle by patients. The Freedom 60 is being marketed in Europe as well as gaining a footing among home-care professionals in America. The RescueVac is used in ambulances and planes for emergency suction.

 

 

Immune Therapeutics, Inc. (IMUN 0.08 )* Buy now. IMUN  is a specialty pharmaceutical company formed by patients funded by patients involved in the manufacturing, distribution and marketing of patented therapies to combat chronic, life-threatening diseases through the activation and modulation of the body’s immune system.   The Company’s technology platform is built on two different immunotherapies, Low Dose Naltrexone (LDN) and Methionine-Enkephalin (MENK).  These proprietary technologies exploit the power of the body’s own immune system to find and kill diseased cells. We have bought the shares.

 

Low Dose Naltrexone (LDN) is a proprietary immunotherapy for the treatment of autoimmune diseases, HIV/AIDS, opportunistic infections, cancer and a range of other serious diseases. LDN works by boosting levels of endorphins (peptides produced in the brain and adrenal glands). These natural peptides are also powerful modulators of the immune system. In order for the body to maintain good health and wellness, there is a balance of the immune system between the cellular (Th1) and the humoral (Th2) immune systems. Immune balance is regulated through T-helper cells that produce cytokines. The Th1 lymphocytes help fight pathogens that are within cells like cancer and viruses through activation of interferon-gamma and macrophages. The Th2 lymphocytes target external pathogens like parasites, allergens, toxins through the activation of B-cells

In order for the body to maintain good health and wellness, there is a steady state of balance of the immune system between the cellular and humoral immunity as well as the regulatory T-cells that keep things under control.

 

When there is an excess of Th1 responses or cellular immunity conditions such as Crohn’s disease, Type 1 diabetes mellitus and graft versus host diseases result. When there is over activity of the humoral immune system the body over reacts to allergens or even itself (autoimmunity). And with less cellular surveillance cancer can occur. What the body needs to remain healthy is a balance of the immune system. LDN is a compound that works on the body’s natural opioid system to restore immune balance..

 

Stocks and ETF’s bought over the past few weeks:

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The heavy black marks indicate execution. We are further away from getting buy stopped into the HDGE. Buy the HDGE on a stop above 11.04. It only got to 11.02 a week ago Thursday.  HDGE is the BEAR  Finacial Services ETF.  The VIX is too low to initiate shorts or to be too bearish in the markets. We like having both long and short positions because of the tremendous uncertainty of the markets and world events.

 

Please check on the previous weekly market letters if there are questions. 

 

We were stopped out of the  Alcoa at 13.10.  We are long in Diana Shipping at 6.60. The Scorpio Tankers were not ever filled as the market never got to our price. Try to buy a scale down on this move.  The tanker shippers like NAT and GLNG are doing much better than dry shippers like Diana Shipping.

 

We missed Buying GLNG in liquefied N.G. at $ 32 about the 50 day moving average. 

 

We would initiate longs in oil stocks on the next down turn   and would buy Exxon below  $ 85 this week.( All trading is hypothetical  and intended as guidance)

 

Symbol Name Business Description PE P/S MV mln Price Buy Limit Stop Loss

Or soldBACBank of AmericaCommercial Bank102.02165.3B16.7516.4515.22xHDGEAdvisor SharesRanger Bear ETF   10.6411.04 X10.60X if filledAAAlcoaAluminum110.6616.06B12.9413.0313.10stop

Stopped OutXOMExxon MobilOil and Gas110.96351B86.5285.7580GLNGGolarLiquefied N.G. HedgingNA30.393.14B49.4632.4430.50SANSantanderBanking world-wide142.3491.6B7.387.286.80DSXDiana ShippingDry Cargo ShippingN/A3.76116.896.605.90STNGScorpio TankersOil Transportation265.61.47B9.387.46 unable7.48

 

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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.

 

CONTACT

Please Direct All Inquiries To:

Mike King

(702) 650-3000

mike@princetonresearch.com

Where To Invest June 2015

Market Strategies Newsletter