December 17, 2012

Market Strategies Newsletter

Sample Issue

 

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Covering High Return Balanced Investing Strategies To

Make Money In Up Or Down Markets

 

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

Make Money In Up Or Down Markets.

 

$10,000 OPTIONS Trading Account

 
New Trades for this week:

 

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Options Trading Strategies Comments

 

We had another good week making $1,587 and

bringing our YTD performance

to a new record $17,696

 

Returns of over 176%

 

We maintained our balanced approach market strategies using puts and calls to be both protect against selloffs and take advantage of weaker stocks. 

The market seems to have discounted the possibility of going over the Fiscal cliff and set it up as “it’s okay if we have to go over” for a couple of days….It is NOT okay, and the headline risk still remains. 

We are impressed by the underlying strength, but are made wary by the closeness of overhead resistance.  The disruption from the automatic tax increases as well as cuts in defense are unknown at this point, but would be cause a drastic reduction to first quarter GDP. 

—CAM

 

New Trades for this week:

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Remember, these trades are based on your participation in the 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.

For any questions please call 702 650 3000.

 

Market Strategies Where To Invest Now

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

 

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Recommendations will be both listed in this letter and 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, DXD, 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.

 

$100,000 Trading Portfolio

Options Trading Strategies

Recommendations And Overall Comments

We gained $ 3,939 last week.

Our gain for the year increased to $ 58,863

 

We have four long options positions plus sixteen stock positions remaining:

The Stock table includes the following sixteen positions:

 

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 $ 3,600

in the six options positions and $ 56,256.00 in the 16 stock positions a total of $ 59,896.00

with $ 40,104.00 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 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

 

 

Market Strategies Trading Fundamentals

 

The ten Dow Industrial Groups were mixed with 3 higher and seven lower. Basic Materials rose 2.46%, by far the largest move of any group. The other nine were slightly up or down but mostly ignoring the perils of a fiscal cliff. Telecommunications gained 0.58% and Industrials 0.33%. The remaining seven groups were all negative. Consumer Services fell 0.93%; Oil and Gas lost 0.65%.

Utilities lost 0.64%; Consumer goods 0.64%; Technology fell just 0.46% because Apple, the largest company in U.S. is not in the Dow. Financials fell 0.36%; Health Care 0.15%.

Apple ( AAPL: $ 509.79 ) – $ 23.46 or 4.4% fell sharply on the day the iPhones began selling in China.

Advance reports of sales of iPads were also negative influencing tech stocks resulting in losses for Nasdaq and the S&P 500. Apple suppliers were also hit with losses:

Transportation stocks fared the best as the DJT rose 58.89 points to 5,186.95 or 1.13%.

 

Market Strategies Economic Data

 

Economic reports were robust. The Trade Balance began the week at a -$ 42.2B number, lower than expected and a positive impetus to GDP.

Industrial Production for November rose 1.1% well above expectations of + 0.3% as rebuilding following hurricane Sandy is in full force. Capacity Utilization for November grew to 78.4% from 77.7% in October.

Retail Sales came in at +0.3% for November reversing October’s -0.3%. Initial Claims were down sharply to 343K from 375K the previous week while Continuing Claims continued to decline to 3,198K from 3,221 the previous week.

The inflation numbers were soft. The PPI was -0.8% while the CORE was plus 0.1%. The CPI fell 0.3% while the Core was also plus 0.1%.

 

Market Strategies Technical Information

 

Support Levels S&P 500        1390;1405

Resistance S&P 500               1428;1440

 

Support Levels DOW            12940;13000

Resistance DOW                   13275;13480

 

Support Levels QQQ               6240;6300

Resistance QQQ                      6640;6730

                   

Support Levels Nasdaq          2950;2980

Resistance Nasdaq                 3040;3090                                      

                                                  

Market Strategies Cycles

 

Whatever method you use to pick stocks, your ultimate success or failure will depend on your ability to ignore the worries of the world long enough to allow your investments to succeed. It isn’t the head but the stomach that determines the fate of the stock-picker.

— Peter Lynch ( Fidelity Investments Beating the Street 1994 )

 

Every year the “January Effect” seasonal comes into play. For tax purposes traders tend to sell their losers. This is an extremely short-term strategy. Patience is needed to be sure the selling has taken place and run its course significantly because these stocks are not selected necessarily on a quality basis. This strategy eliminates preferred stocks; closed end mutual or hedge funds; new issues. We only consider fully traded shares on listed exchanges including AMEX, NYSE or Nasdaq.

This strategy is designed to get in and out as soon as there is a significant gain. One has to be nimble as the stocks were bought on a technical basis rather than a fundamental although it doesn’t hurt to utilize some logic. These stocks all behave differently, and there is no standard trading rule that applies to these trades. In general, it is best to close out of all these stocks after the first of the year.

 

NOTE: This is a Sample Issue Only!

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*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. 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