Where to Invest Now February 2016 Newsletter

Market Strategies Fundamentals

Where To Invest Now

February 2016

Read the February 8, 2016 Where To Invest Now Newsletter in .pdf format — Click Here

February 8, 2016

Market Strategies Newsletter

Sample Issue
Where to Invest Now February 2016

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 Now In 2016 Newsletter Covering:


Where to Invest February 2016

Best Stocks To Buy February 2016

Stock Market Investing Strategies

Stock Options Trade Alerts

Options Trading Strategies

How To Trade Options

Gain For The Week $ 994

2016 YTD Profits $ 2295

Over 22% Returns


2015 Over 66% Returns

 2014 Over 204% Returns


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Where To Invest options trading news

$10,000 Trading Portfolio
Charles Moskowitz Discussion

We have One Open Long Position:


6 TLT Feb 128 Puts


Funds in use = $ 684                      


Week 5 was short on trades and primarily short the market.

We had only 3 trades and one of those was a 50% down loss in the GLD.

The other 2 were great gains in the QQQ puts and SIG puts.

For the week we came pretty close to doubling our entire month of January performance (which wasn’t too shabby).


We netted $994 bringing our YTD performance up to a whopping $2,295 almost 23% in some of the ugliest and erratic market action.


We closed the week with only 1 position in TLT (interest rate ETF) puts…seeking higher rates, and funds in use of $684.


There are several issues at work here and none of them are positive.  The path of least resistance is down, and most notable are the massive vacuum of buyers under anything that doesn’t meet even lowered expectations or gives anything but great guidance.


Personally, I believe a big part of the problem is the unexpected consequence of the Dodd/Frank prohibition of “prop” trading.  It prohibits banks from trading for their own accounts.  In case you didn’t see it back in 2008 or so, many, like Goldman Sachs and Morgan Stanley and most of “the street” became banks.


What this means to you is that since they are not as involved, they have no interest or motivation from maintaining an orderly market in the stocks they own.  This is similar to the major difference between the NASDAQ market-maker system of decentralized players and the NYSE specialist system.  At the NYSE, specialists function to “maintain an orderly market.”  There are financial incentives that have nothing to do directly with profits, but rather to limit the financial exposure of these firms.  At the NASDAQ, the market makers have nothing but the profit motive at work.  If you don’t have the carrot of gain why would you bother to be involved with a falling stock?  You just wait for the dust to settle and then come back…or not……..


We’ve had several discussions in this space about “stuff,” being the building blocks of our economy, and the fact that this “stuff” can’t go to zero…and low and behold, basic materials have come roaring back in the past 10 days.  Copper, Gold, and other commodities based investments were the standouts this week. I mean really, LinkedIn worth 46% less than last week, and Alcoa worth 12% more??


We are certainly oversold again in many names and approaching important support in many indices and I’m looking to buy any further decline on Monday.  There will be no new trades tonight.  Use the free texting service for new trades….It’s free, and we’re up over 22% to start Week 6…If you’re not a subscriber, you should be……..CAM



Market Strategies

$10,000 Trading Account Trade Table


02/05 Bought 6 TLT February 128 Puts 1.14  684
02/03 Sold 2 SIG February 110 Puts 3.80       760      550 Gain
02/03 Sold 6 QQQ February 100.50 Puts 2.08     1248      468 Gain
02/02 Sold 3 SIG February 110 Puts 1.85       555      240 Gain
02/02 Sold 6 GLD February 105.50 Puts ( 50% Loss Rule ) 0.44       264      264 Loss
02/02 Bought 6 QQQ February QQQ Puts 1.30  780
02/01 Bought 5 SIG February 110 Puts 1.05
01/28 Bought 6 GLD February 105.50 Puts 0.88  528

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.


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MARKET Laboratory – Weekly Changes


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









S&P 500








Russell 2000








Gold (spot)












Heating Oil




Unleaded Gas




Natural Gas








Put/Call Ratios

S&P 100



Put/Call Ratios

CBOE Equity





163-08 +2-07

2.68% -0.07%

10 Yr. Note

130-114 +25         1.85% -0.08%






CRB Inflation





Barron’s* Confidence







5 Yr. Note

121-012 +118

1.25% -0.09%






DJ Utilities








Long Term

















M1 Money  Supply


Jan 25th





M-2 Money



Jan 25th





* 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.


Market Strategies Technical Information

                              Support/Resistance Levels:                SUPPORT                         RESISTANCE


S&P 500           1846                                      1940

Dow                  16,950 16,155                     16,663

QQQ              96.70                                   102.90

Transports        67.48 64.40                           7287

NASDAQ          4290                                   4680

$100,000 Trading Portfolio Stock Positions and Trades

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




Purchase Price Purchase Date Stop/Loss   Price/Date Sold   Profit/


UNG     500 7.57       02/05   6.89 x
CRM     100  64.05       02/04 61.55 x 61.55 02/05 ( $ 250 )
SIG         50 110.67       02/03 ShortSale 115.72 02/01 $ 253
SLCA    300 16.92       01/26 17.28 sco 18.48 02/04 $ 468
SBH      200 25.53       01/25 26.84  01/26 $ 262
KRO      800 5.13       01/04
EYES  1000 6.49       12/28
APC      100 51.21       12/10
VA         200 36.50       12/08
APC      100 53.53       12/07
LVLT    100 50.81       11/23
TWTR  200 28.51       10/28
CUBA   500   7.58       09/28
MOS  100 43.55       08/14
CRM  100 72.90       04/29      66.25 66.25  01/28 ( $ 665 )
NBGGY  600 1.40       02/17
BAC. Wts 5,000 lots 0.7411       12/26
BSBR  500






SAN  600 8.40      12/16
AA  500 14.21      10/16
NBGGY 300  2.95      05/19
NBGGY 300 4.08 8/12
TEXQY* 200 6.56 7/11
REPR* 5000 0.22 10/22/12

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.



For Free Where To Invest Your Money Now

High Return Investments Trade Alerts

Go To: PrincetonResearch.com/alerts.htm

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 Account


There were three completed option positions:


The February GLD Feb 105.50 Puts lost $ 528 being stopped out on the 50% loss rule.

The SIG Feb 110 Puts bought at $ 1.02 made a total of $ 1,668, while

The QQQ Puts were also profitable gaining $ 936 for a total profit for the week of $ 2,574 in options.


There were two successful stock trades and one loser:


Silica Holdings ( SLCA ) was bought at $ 16.92 and sold at $ 18.48 for a gain of $ 468.

The 50 shares of Signet Jewelers shorted at $ 115.72 made a profit of $ 253.

The Salesforce ( CRM ) was topped out for a loss of $ 250.


The net for the week in stock trading was a gain of $ 471, which increased the total win for the week to $ 3,045.


The yearly total gain in all closed out trades rose to $ 4,832. 


The options expire on the third Friday of each Month unless otherwise posted.


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 otherwise mentioned specifically.


We are basing money management on a hypothetical

$ 100,000 and are using a total of $76,588 for the 20 open stock positions. There is one long option position requiring $ 1,368 which totals a requirement of $ 77,956 leaving $ 22,044 in cash.


These figures are approximate and there might be errors.


We have not counted the dividends received from many previous trades such as Apple, Colgate Palmolive, JP Morgan, North American Tankers, Santander, their Brazil affiliate BSBR and Blue Capital Reinsurance which was sold for a profit and many others. We will begin adding them soon.


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 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/


TLT Feb 128

12 lots



QQQ Feb 100.50

12 lots



02/02/16 2.08 02/03/2016 $ 936
SIG Feb 110

12 lots



02/01/16 1.85

Sold Half

3.80 sold Balance




$ 498


$ 1668

GLD Feb 105.50

12 lots



01/28/16 0.44 02/02/2015 ( $ 528 )


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.


For Free Where To Invest Your Money Now

High Return Investments Trade Alerts

Go To: PrincetonResearch.com/alerts.htm


Where To Invest Your Money Now

This Weeks’ Economic Numbers

Earnings Releases and Media Data


Before the Open on top of the Row;

After the close below the Economics Information


MONDAY CNA Financial CNA ( 0.89 vs 0.76 ) Cognizant Tech CTSH ( 0.78 vs 0.67 ) Diamond Offshore

( 0.53 vs 0.72 ) Hasbro HAS ( 1.30 vs 1.22 ) Loews Corp L ( 0.77 vs 0.57 )


21sr Century Fox FOXA ( 0.44 vs 0.53 ) Brookdale Senior Living BKD ( -0.19 vs -0.58 ) Molina Healthcare MOH ( 0.62 vs 0.69 ) Owens and Minor OMI ( 0.49 vs 0.49 ) Owens-Illinois

OI ( 0.40 vs 0.46 ) PartnerRe PRE 2.67 vs 4.37 Qualys ( QLYS 0.17 vs 0.15 )  Regal-Beloit RBC ( 1.11 vs 0.82 )  Waste-Connections WCN ( 0.47 vs 0.51 ) Yelp  YELP ( 0.12 vs 0.08 )

TUESDAY Agrium AGU ( 1.38 vs 0.46 ) CDW CDW ( 0.71 vs 0.59 ) Centene CNC ( 0.87 vs 1.74 ) Coca-Cola KO ( 0.37 vs 0.44 ) CVS Health CVS ( 1.53 vs 1.21 ) Goodyear Tire GT ( 0.75 vs 0.59 )

Omnicom OMC ( 1.33 vs 1.30 ) Regeneron Pharms REGN 3.31 vs 2.79 Spirit Airlines SAVE

( 0.97 vs 0.80 ) Tenneco TEN ( 1.14 vs 1.05 ) Viacom VIAB 1.17 vs 1.29 WellCare WCG ( 0.61 vs 0.41 ) Wendy’s WEN ( 0.11 vs 0.10 ) Wyndham Worldwide WYN ( 0.97 vs 0.90 )

10:00 hrs Wholesale Inventories December  ( 0.0% vs -0.3% )


Akamai AKAM 0.62 vs 0.65  Arch Capital ACGL ( 1.06 vs 1.15 ) Assurant AIZ ( 1.54 vs 0.87 ) Computer Sciences CSC ( 0.69 vs 1.18 ) NCR Corp NCR ( 0.86 vs 0.88 )

Panera Bread PNRA ( 1.78 vs 1.82 ) Regal Entertainment RGC ( 0.33 vs 0.30 )

ScanSource SCSC ( 0.76 vs 0.68 )Disney DIS ( 1.44 vs 1.27 ) Wynn ( 0.78 vs 1.20 )

WEDNESDAY Amtrust Financial AFSI ( 0.67 vs 1.46 ) ARAMARK Holdings ARMK ( 0.49 vs 0.47 ) Axalta Coating Systems AXTA ( 0.25 ) Berry Plastics BERY 0.39 vs 0.27 DTE Energy DTE (  0.99 vs 1.17 ) Health Net HNT ( 0.66 vs 0.06 ) Henry Schein HSIC ( 1.65 vs 1.56 ) Humana HUM ( 1.46 vs 1.09 ) Owens Corning OC 0.45 vs 0.47 Time Warner TWX ( 1.00 vs 0.98 )

07:00 hrs MBA Mortgage Index  02/06   ( NA vs -2.6% )

10:30 hrs Crude Inventories 02/06  ( NA vs +7.79 Mln Bbls )

14:00 hrs Treasury Budget Jan ( NA vs -$14.4B )

Cisco Systems CSCO ( 0.54 vs 0.53 ) Expedia EXPE ( 1.01 vs 0.86 ) Fidelity National FNF

( 0.52 vs 0.50 ) Insight Enterpr NSIT ( 0.60 vs 0.55 ) Mylan Labs MYL ( 1.27 vs 1.05 ) O’Reilly Auto ORLY ( 2.08 vs 1.76 ) Pilgrim’s Pride PPC ( 0.40 vs 0.83 ) Prudential PRU ( 2.30 vs 2.12 ) Service Corp SCI ( 0.37 vs 0.37 ) Sun Life SLF ( 0.88 vs 0.83 ) Tesla Motors TSLA ( 0.09 vs -0.13 ) Twitter TWTR ( 0.12 vs 0.12 ) Whole Foods WFM 0.40 vs 0.46 

THURSDAY Advance Auto AAP ( 1.21 vs 1.37 ) Alcatel-Lucent ALU ( 0.09   vs 0.08 ) Bunge BG ( 1.58 vs 1.20 ) Cenovus Energy CVE ( -0.17 vs -0.78 ) Diebold DBD ( 0.68 vs 0.48 ) First American Financial FAF ( 0.67 vs 0.74 ) Group 1 Auto GPI ( 1.79 vs 1.67 ) Huntsman HUN ( 0.21 vs 0.33 ) Jarden JAH ( 1.19 vs 1.15 ) Kellogg K ( 0.75 vs 0.84 ) Mosiac MOS ( 0.44 vs 0.97 )

Nielsen NLSN ( 0.80 vs 0.81 ) Nokia NOK ( 0.11 vs 0.09 ) Telus TU ( 0.54 vs 0.51 ) Teva Pharma TEVA ( 1.28 vs 1.31 ) Thompson Reuters TRI ( 0.58 vs 0.53 )

08:30 hrs Initial Claims 02/06 ( 280K  vs 277K )

08:30 hrs Continuing Claims 01/30 ( 2258K vs  2255K )

08:30 hrs Productivity 4thQtr  ( -1;7% vs +2.2% )

Unit Labor Costs Prel 4th Qtr ( + 3.8% vs + 1.8% )

10:30 hrs Natural Gas Inventories 02/06 ( NA vs -152 bcf )

American International  AIG ( -0.92 vs 0.97 ) CBS CBS ( 0.93 vs 0.77 ) DaVita DVA ( 0.97 vs 1.09 ) FireEye FEYE ( -0.37 vs -0.38 ) Groupon GRPN ( 0.00 vs 0.06 )  Liberty Global LBTYA

( 0.04 vs -0.62 ) Republic Services RSG ( 0.49 vs 0.50 ) VeriSign VRSN ( 0.78 vs 0.70 )

FRIDAY ArcelorMittal MT ( -0.17 vs 0.53 ) Brookfield Asset Management BAM ( 0.47 vs 0.78 )

Calpine CPN ( -0.06 vs 0.54 ) Interpublic IPG ( 0.62 vs 0.57 ) XRAY ( 0.65 vs 0.60 )

08:30 hrs Export Prices ex-ag Jan   ( NA vs -1.0% )

Import Prices ex-oil Jan  ( NA vs -0.4% )

08:30 hrs Retail Sales Jan  ( +0.2% vs -0.1% )

Retail Sales ex-auto Jan  ( 0.0% vs -0.1% )

10:00 hrs Business Inventories Dec  ( +0.1% vs -0.2% )

10:00 hrs Michigan Sentiment February ( 92.7 vs 93.3 )

Cameco CCJ ( 0.46 vs 0.52 )


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Market Strategies Fundamentals


The Transportation Index performed well for the second week consecutively being the only major index to show a gain for the week. The S&P 500 closed at 1880.05, down 60 points or 3.10%. It has established a new trading range of 1,870 to 1,940. Meanwhile the Nasdaq Index was again the worst performer:

The DJ Transportation Index ( DJT: 6942.82 ) + 36.06 or +0.52%. The Nasdaq Index ( NASDAQ: 4363.14 ) – 250.81 or -5.44% had the worst weekly performance of all major indexes. Tech stocks were particularly hard hit. In this bear market the optimum strategy has been the selling of rallies as opposite to the Buying of dips that has made money in most prior years.

High PE stocks suffered the most.  Netflix ( NFLX: $ 82.79 ) – $ 9.05 or -9.9% declined for the second  week after losing 8.8% the previous week. For the new- year Netflix is off a huge $ 31.59 or -27.6%. Linkedln ( LNKD: $ 108.38 ) – $ 89.53 or -45.2% for the week was the catalyst  as they put out deleterious forward guidance. The magnitude of these numbers confirms a bear market which hurt many stocks. Alphabet ( GOOG: $ 688.14 ) lost $ 54.81 or 7.4%. Facebook ( FB: $ 104.07 ) – $ 8.14 or -7.2% fell sharply while announcing excellent results.

Volatility remains great as bear market rallies can be huge as we witnessed last Wednesday when the Dow rallied from Tuesday’s close of 16,153.54 to Thursday’s high of 16, 485.84 a gain of 332 points or 2.1%. The Dow ended down 212 points on Friday or 1.29% and 1.59% for the week but has held up much better than either the S&P 500 or the Nasdaq. DuPont ( DD: $ 58.89 ) + $ 6.13 or 11.6% was the top performer followed by much beleaguered Caterpillar ( CAT: $ 66.12 ) + $ 3.88 or + 6.2%. IBM, which goes ex-dividend on Monday, rose 3%. Other  quality, previously highly regarded rallied stocks were also smashed: Home Depot ( HD: $ 116.43 ) fell $ 9.33 or -7.42%; Nike ( NKE: $ 57.17 ) – $ 4.84 or -7.8%;  Microsoft ( MSFT: $ 50.16 ) – $ 4.93 or -9%; McDonald’s ( MCD: $ 115.40 ) – $ 8.38 or -6.8%. Intel lost 6.42% and Pfizer 5%. Below is a chart showing the demise of high PE stocks.


Material stocks rebounded: Alcoa ( AA: $ 8.12 ) + $ 0.83 or + 11.4%, had been up to $ 8.50 benefitted from a weaker dollar. Freeport McMoran ( FCX: $ 5.68 ) added $ 1.08 or + 23.5%. We expect Alcoa to go much higher bear market or not. They have both technology and activist backing.

The Dow Jones Transportation rose in the face of deteriorating airline stocks because of the Zika, a new virus threat, which have some health officials near panic. The Ebola scare caused airline stocks some weakness several months ago and the same attitude affected them last Friday as they declined for no other apparent reason. The effort to cut CO2 greenhouse emissions eliminated the use of DDT which had effectively controlled this disease more easily killing the mosquitos that carry the disease.

Utility stocks continued their ascent. They pay nice dividends and benefit from low energy costs.

The Select sector Utilities Spider ( XLU )  has catapulted to $ 46.57 yields 3.5% and should be bought on any two days down. The buying opportunity is for the next 30 days going by the Trader’s Almanac chart.


 undervalued stocks to buy October 2015

Market Strategies Economic Data

Nonfarm payrolls increased by 151,000 (Briefing.com consensus 188,000).December nonfarm payrolls revised lower to 262,000 from 292,000. November nonfarm payrolls were revised higher to 280,000 from 252,000 Private sector payrolls increased by 158,000 (Briefing.com consensus 183,000). December private sector payrolls revised to 251,000 from 275,000. November private sector payrolls revised to 279,000 from 240,000. November additions were off-set by December deletions.

The Unemployment rate was 4.9% (Briefing.com consensus 5.0%) versus 5.0% in December.

The U6 unemployment rate, which accounts for the total unemployed plus persons marginally attached to the labor force and the underemployed, was unchanged at 9.9%. The labor force participation rate was 62.7% versus 62.6% in December. Persons unemployed for 27 weeks or more accounted for 26.9% of the unemployed versus 26.3% in December.

Hourly earnings were up 0.5% in January (Briefing.com consensus 0.3%) after being unchanged in December. Over the last 12 months, average hourly earnings have risen 2.5% versus 2.7% in December.

Aggregate earnings were up 0.9%, which should be a positive portent for consumer spending.

The average workweek was up 0.1 to 34.6 hours (Briefing.com consensus 34.5). January manufacturing workweek was up 0.1 hours to 40.7 hours. Factory overtime was unchanged at 3.3 hours.

Establishment Survey
Nonfarm Payrolls 151K 262K 280K 295K 149K
  Goods-Producing 40K 54K 53K 31K -12K
    Construction 18K 48K 65K 33K 10K
    Manufacturing 29K 13K 3K 2K -9K
  Service-Providing 118K 197K 226K 273K 174K
    Retail Trade 58K -1K 52K 21K 6K
    Financial 18K 10K 18K 11K 3K
    Business 9K 60K 48K 91K 40K
       Temporary help -25K 25K 1K -9K -13K
    Education/Health 6K 54K 45K 78K 55K
    Leisure/Hospitality 44K 31K 46K 53K 50K
    Government -7K 11K 1K -9K -13K
Average Workweek 34.6 34.5 34.5 34.5 34.5
 Production Workweek 33.8 33.8 33.7 33.7 33.7
Factory Overtime 4.3 4.2 4.2 4.2 4.2
Aggregate Hours Index 0.4% 0.3% 0.2% 0.3% -0.2%
Avg Hourly Earnings 0.5% 0.0% 0.2% 0.3% 0.1%
Household Survey
Civilian Unemp. Rate 4.9% 5.0% 5.0% 5.0% 5.1%
Civilian Labor Force 502K 466K 271K 229K -194K
Civilian Employed 615K 485K 247K 255K -101K
Civilian Unemployed -113K -20K 25K -26K -93K

Manufacturers added 29,000 jobs, tied for the best gain since 2012. However, that statistic does not agree with the ISM Manufacturers Survey released last Monday showing factories shedding jobs at the fastest pace since 2009. The ADP Report last Wednesday was not as dismal as the ISM report reporting that factory payrolls were unchanged in January. The prominent headlines from the January Employment Situation Report were mixed, but on balance there were some key developments in the labor market in January that could keep the Fed inclined to raise the fed funds rate again in 2016  which may have been a factor in the deterioration of equities late Friday. The Fed Funds Futures market does not have a rate hike  priced in.

Productivity decreased at a 3.0% annual rate. That was worse than the Briefing.com consensus estimate, which called for a 1.7% decline, and the largest drop in productivity since the first quarter of 2014.


Productivity is up just 0.3% year-over-year. Annual average productivity increased 0.6% from 2014 to 2015, with output and hours increasing 2.8% and 2.2%, respectively.

Productivity has increased at an annual rate of less than 1.0% in each of the last five years, which helps explain the stagnant growth of the US economy. That is well below the long-term rate of 2.1% from 1947 to 2015. Productivity gains help keep cost-push inflation pressures from rising wages in check. Over the long term, it is productivity gains that provide the increase in output that has led to consistent gains in living standards in free market economies.

Category Q4 Q3 Q2 Q1 Q4
Nonfarm Business Sector
Productivity Q/Q -3.0% 2.1% 3.5% -1.1% -2.2%
Unit Labor Costs Q/Q 4.5% 1.9% 2.0% 2.6% 5.7%
Productivity Y/Y 0.3% 0.6% 0.8% 0.6% 0.0%
Unit Labor Costs Y/Y 2.8% 3.0% 2.6% 1.2% 2.8%

Consumer Credit, ex mortgages rose by $21.3 billion in December. Annualized the use of credit swelled by 5.1% the strongest since 2008. Revolving credit, mostly credit cards, rose by $ 5.8 billion or + 7.5%. Non-revolving credit, mostly student and auto loans, increased by $ 15.4bil a 7.1% rate.


The Trade gap widened to $ 43.4 billions in December from November’s revised deficit of $ 42.2 bil which is  a reflection of the dollar’s strength. Exports fell 0.3% to $ 181.5 bil, while imports rose 0.3% to $ 224.9 bil. The trade gap with China narrowed by $ 3.4 bil to $ 27.9 billions.



Market Strategies Cycles

After closing out an otherwise miserable January on a positive note, the market appears to have run out of gas again here in February. Our January Indicator Trifecta combined with DJIA violating its December closing low does suggest more weakness and volatility are likely.


To gain a better perspective, the following One-Year Seasonal pattern charts were constructed from the other seven years since 1950 that our January Indicator Trifecta was negative across the board and DJIA’s December low was breeched. Seven years is not a large data set, but it is significant enough. Average election year and 2016, through today’s close are also plotted for reference. Should the market trade in similar fashion to the previous negative Trifecta years, it could be early March before the market reaches an interim bottom and makes a tradable, multi-month trek higher.




New Sector Trade Idea


From the Stock Trader’s Almanac 2016, page 94, Sector Seasonality, there are two sectors that begin their seasonally favorable periods in March: High-Tech and Utilities. Some tech exposure remains in the Almanac Investor ETF Portfolio. Last year, the Utilities sector started off the year on a near chart-perfect bullish climb from the bottom left to the top right. That trend however, only lasted until the end of January.


So far this year, Utilities have been a bright spot with a solid year-to-date gain while many other sectors are currently in the red. Perhaps Utilities could be rallying because interest rates are falling and their dividends are attractive or perhaps they are advancing because global growth and deflation concerns are making the sectors’ highly regulated and stable revenues look like a safe place to park capital. Most likely, Utilities’ success thus far is a combination of these reasons and others.


As can be seen in the following chart of the Utility Sector Index (UTY), seasonal strength typically begins following an early March bottom and usually lasts through mid-October although the bulk of the move is typically done by early May. Seasonal factors combined with the current trend suggest the Utilities still has room to run.


Undervalued Small Cap Stocks


Lower Priced stocks that look to be a buy:


Repro-Med Systems, Inc ( OTCQX:  REPR 0.47 )*   


Repro Med Systems, Inc. dba RMS Medical Products (OTCQX: REPR) has been one of the best performing stocks in 2016.


They announced that its net revenues for the third quarter ended November 30 for fiscal 2016 increased 18% over the previous year’s Q3, led by the Company’s sales of proprietary infusion products. The Company’s current fiscal year ends February 28, 2016.


Revenues for the third quarter of fiscal 2016 were $3,145,000 compared with $2,655,000 for the third quarter of fiscal 2015. Revenues for the first nine months of the fiscal 2016 were $8,942,000 compared with $7,797,000 for the same period last year, an increase of 15%.


RMS continues to benefit from recent lean manufacturing initiatives, which have resulted in increased capacity and decreased direct assembly labor costs compared to last year. Gross margin improved in fiscal Q3 to 67% from 60% in the same quarter last year, and from 63% in fiscal Q2.


Driven by the strong sales in the quarter, net income for the third quarter was $168,000, an improvement of 81% compared with the same period last year. In addition, net income was negatively impacted due to costs associated with several trade shows in the quarter, the hiring of new sales representatives, and continued legal and consulting fees, all of which reflect an investment for growth in future periods. Excluding certain of these non-recurring items, net income margin would have been in excess of 10% for the quarter.


“We continue to see growth in all sectors of the homecare infusion market both domestically and internationally,” commented Andy Sealfon, President and CEO of the company. “I am also very excited about our newest board member, Cyril N. Narishkin and have appointed him as Interim Chief Operating Office to support our expanded management team and accelerate our growth opportunities. Cyril brings a wealth of experience consulting with companies of all sizes, and will also be instrumental in assisting the Company on its lean initiatives and growth plans,”

Mr. Sealfon added.


The Company manufactures medical products used for infusions and suctioning. The Infusion product portfolio currently includes the FREEDOM60(R) and our latest FreedomEdge(TM) Syringe Infusion Pumps, RMS Precision Flow Rate Tubing(TM) and RMS HIgH-Flo(TM) Subcutaneous Safety Needle Sets. These devices are used for infusions administered in professional healthcare settings as well as at home.


The company’s RES-Q-VAC line of medical suctioning products is used by emergency medical service providers in addition to a variety of other healthcare providers.

The Company’s website may be visited at www.rmsmedicalproducts.com.


Repro-Med Systems, Inc has had an increase in sales each of the last four years. They finished the year of 2014 with $ 11.2 million in sales reflecting top line growth of  29% from 2013.In each of the previous two years they had a 12% increase in sales.


The company has had at least $ 700 thousand of net income in each of the past four years and has no debt. The patented needle sets alone can give the company a huge growth potential. In my opinion, with new products coming on stream, the stock should trade between $ 3 and $ 8 in the next two years.



Immune Therapeutics ( OTCQB: IMUN  $ 0.18 )*


Could be ready to go; although down 20% on the week.
This biotechnology company is seeking to commercialize patented therapies in emerging nations that combat chronic, life-threatening diseases by rebalancing the immune system. The trials in Africa are going well.


The value of Naltrexone as an immune modulator was recognized by Dr. Ian Zagon at the University of Pennsylvania.2,3 The late Dr. Bernard Bihari, a Neurophysician from New York, USA (who passed away on May 16th, 2010) began treating his patients in the late 1980s4,5.


Since that time, many doctors throughout the United States prescribe LDN for a number of indications including Multiple Sclerosis (MS), Parkinson’s disease, Crohn’s disease, HIV/AIDS, cancer and other autoimmune and inflammatory diseases.


A number of research and clinical trials have been completed and undergone in regards to LDN immunotherapies, with phase I and phase II clinical trials successfully run at a number of universities in the United States and Europe, including Pennsylvania State University Medical School at Hershey; University of Chicago; State University of New York; SUNY Upstate Medical University; London Health Sciences Centre – University Hospital, USA; Alpert Medical School of Brown University; Department of Neurology, San Raffaele Scientific Institute; Division of Rheumatology, St. Louis College of Pharmacy; Department of Internal Medicine, University of Utah; Jondi-Shapoor University of Medical Sciences; Department of Psychiatry & Behavioral Sciences, Duke University Medical Center; and Multiple Sclerosis Center at UCSF6.


These efforts were pioneered by leading immunologists Dr. Nicholas Plotnikoff, Dr. Ronald Herberman, Dr. Bernard Bihari, Dr. Angus Dalgleish, Dr. Ian S. Zagon, Dr. Jill Smith, Dr. McLaughlin, Dr. Jacqueline McCandless, and Moshe Rogosnitzky, among others.



Oakridge Global Energy Solutions, Inc. ( OTCQB: OGES $ 0.75) *


Oakridge Global Energy Solutions Inc., is a publicly traded company, trading symbol: OGES on the OTCQB with a market capitalization of approximately USD $ 250,000,000, whose primary business is the development, manufacturing and marketing of energy storage products.


Oakridge Global Energy Solutions, Inc. (OGES) is an integrated energy storage solutions company that uses state-of-the-art technology in the design, development and manufacture of high-quality cells, batteries, and energy storage systems.


The company’s innovative ‘Made in the USA’ product line includes multiple lithium-ion chemistries, technologies and form factors that are optimized to address four high-demand target markets – motive applications, such as electric and hybrid electric fleet vehicles (especially golf cars and local area electric vehicles), stationary living space power for domestic, commercial and grid applications (homes, businesses, RVs, boats, and uninterruptable power supplies), remote control and portable devices (including medical devices), and also starter motor batteries for motorcycles, jet skis, snow mobiles and boats, as well as cars and trucks.


All the company’s batteries and power systems also have major application to the military, aerospace, marine, medical and telecom sectors generally.



Fundamental Analysis Stocks To Buy with Stops


Dycom we finally were able to buy and were stopped out.


LUV and  VA were stopped out  with very nice gains.


We bought Virgin Air once again at $ 30.30.


We were stopped out of both the Intel and Kroger with profits.  We bought Kroger again.


Continue to buy Bank of America on dips.


We were finally able to get filled on theoretical orders to buy Microsoft and took profits.


Enzo is on our radar just waiting for a much better chart pattern to rebuy. We had originally bought at $ 2.78.


Both Ericsson and Church and Dwight are worth a try at the long side. The HDGE has been a major success for those who believe in hedging. It may be topping out now.


Call 702 650 3000 for questions.



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

Or sold

AA Alcoa Aluminum Processing and Technology N/A 0.4 9.5B 8.12 7.05 6.77X
NFLX Netflix New Short Internet Television Network 300 6.25 42B 82.79 Sell @ 101 103.50X
SBH Sally Beauty Holdings Specialty Retailer and distributor beauty supplies 16 1 4B 30.28 26.30 28x
ERIC Ericsson Communications Technology 24 1 30.3B 8.76  9.32 8.48x
CHD Church & Dwight Consumer Products Sodium bicarbonate Arm and Hammer 25 3 10.6B 86.90 79.80


T AT&T Communications 36 1.54 211.7B 35.14 34.10 32x
DY Dycom Industries Internet Cable Provider 28 1.10 2.5B 62.49 61.54 57 stopped out
MSFT Microsoft Technology Software, Services, Devices 17 4.7 431B 55.09 50.90


55.09 sold at the 50 DMA
KR Kroger Food Mfg and Processing 18 0.33 37B 37.63 36.76


VA Virgin Air Regional Airlines 7.2 1.0 1.5B 31.35 30.30

Suggested buy

ENZ Enzo Biochem Life Sciences NA 1.35 134M  4.63 4.15


BAC Bank of America Commercial Bank 10 2.02 165.3B 12.95 13.56 11.90x
HDGE Advisor Shares Ranger Bear ETF 12.33 Buy 11.68 11.46x


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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:


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Charles Moskowitz

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Princeton Research

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Where To Invest Now – February 2016 

Where To Invest Now February 2016