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Market Strategies Newsletter

Covering High Return Balanced Investing Success Strategies For

Stocks ■ Bonds ■ Interest Rates ■ Natural Resources ■ Currencies ■ Venture Capital ■ Gold

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

Contributing Staff: Michael King, Bill Chippas, Charles Moskowitz

 

May 14, 2012

Where To Invest Your Money Now

Market Strategies Newsletter

 

To subscribe to the Options Only Acct Trades simply

TEXT the word UPDATES to 69302

and you will automatically be included.

To Read This Market Strategies Newsletter In Adobe PDF Version – CLICK HERE – http://www.princetonresearch.com/5-14-2012-Market-Strategies.pdf

 

$10,000 OPTIONS ONLY TRADING ACCOUNT

New Trades for this week:

BUY 4 DD JUNE  50 calls @ $2.15 or better.

The $10,000 Options Only account had a Loss last week of $200 decreasing our gains for the year from $2,291 to $2,091.  

Three positions remain:

The ROK June 67 Puts,

PRGO June 105Calls and the

TLT June 120/122 Call Spread.

 

The Open positions are highlighted in the options table below.

Approximately $ 1505 funds are in use.

There are so many stocks that look bad, and if you check the next page Market Lab of Sentiment Numbers show that no one wants to be bullish ( only 25.4% bullish ) …I feel like the contrary opinion has merit…As said here in the past, “Everybody is never right…”

There are many stocks that are at or approaching their 200 day moving average (I consider this major support) that from my prospective, risk is at a minimum….IF you follow the rule that if they break you must sell them.  I like DD @ $50.50-51.00 but would sell it if it breaks 49.35 on a closing basis.  The same goes for CRM @ $130-133 with a stop if it closes below $126.77.

In the meantime, BUY 4 DD 6/50 calls @ $2.15 or better.

 

We will have to see how the market reacts Monday morning and the best way to keep up is to use the Texting Service by texting the word UPDATES to 69302…CAM

 

 

Remember, these trades are based on your participation in the

TEXT MESSAGE TRADE ALERTS SERVICE TO RECEIVE ALL UPDATES.

TEXT the word UPDATES to 69302 To Get In Now

 

Previous closed out trades not listed here may be seen in the March, February and January weekly newsletters. See past issues at http://www.princetonresearch.com/market-strategies-newsletter/

DATE	TRADE	PRICE	COST	PROCEEDS	RESULTS
5/11	Sold 10  TLT June 122 Calls  (call spread )	1.00	(1000)
5/11	Bought 10 TLT June 120Call ( call Spreads)	1.68	1680
5/11	Sold 4 CSCO June 17 Calls	.36		144	140 Loss
5/10	Bought 4 CSCO June 17 Calls	.71	284
5/9	Sold 4 FDX May 87.5 Puts	1.68		672	200 Gain
5/8	Bought 5 PRGO June 105 Calls	.95	475
5/7	Bought 5 ROK June 67 Puts	.70	350
5/7	Sold 4 GLD May 162 Calls	.65		260	260 Loss
4/30	Bought 4 GLD May 162 Calls	1.30	520
4/30	Bought 4 FDX May 87.50 Puts	1.18	472

New trades $ 10,000 account…In Texting we have a limited amount of words. In the interest of brevity: OPTIONS ONLY: 6 June, 7 July . The Quantity and Strike Price for each trade is specific.

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 Recommendations

BUY 2000 SNSS @ MKT.

BUY 800 MTOR @ MKT.
                                  Last week with text alerts we bought LULU, GMCR and FCH.
                                      We also have adjusted stops on some positions. 

 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 the  May 7 and newsletters dating back to July 20, 2009.  Stay alert on the free texting service for new trades and exits.

 

Model Portfolio Comments/Changes:         

This week was about balance and using whatever the market gave us to work with.  We started the week Short LULU with the put leftover from the Long Stock, long put position.  We were also long FAZ (3X short financial index). When the market gave us the chance to take a profit on the LULU put we did, and then bought back the stock at support.  When the financial sector fell on Thursday morning but didn’t break, we locked in our gain on FAZ position, buying an “at the money” put while maintaining the long FAZ (short financial) position.  This way we have the opportunity to be on both sides of the financials, and will profit regardless how the market moves.

 

INDEX OPTION RECOMMENDATIONS

 

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 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

Option and overall Comments

We had a loss last week of $ 314 in a down week. Our gain for the year was $9,703.05 and with last week’s loss has decreased to $9,389.05. We have Four long options positions remaining, the FAZ June 22 Puts, LULU June 65 Put, TLT June 120/122 Call Spread and the CSCO Jan 20 Calls.
The Stock table includes Sixteen long stock positions: FCH, LULU, GMCR, FAZ, RWM, SIRI, AAPL (a double), TXGE, CWTR, IYT, AIVN, SNTS, CISG, LEI, LEOM and XBOR (a double). FAZ and RWM are inverse ETF’s.

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 $2,014 in the four
options positions and $ 86,500 in the 16 long stock positions for a total of $ 88,514 with $ 11,486 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

 

• Text UPDATES to 69302.
• 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
• Subscribers can follow us on Twitter or call  702 650 3000 for up to date information. 

Note: Previous closed out stock and option positions can be found in the May 7 and newsletters dating back to July 20, 2009.                                                                                                    

            This Weeks’ Economic Numbers and Media Data

 

Fundamentals (previous letters may be seen at www.princetonresearch.com)

 

Bearish developments in Europe and the J.P. Morgan Trading debacle were enough to offset  great first-quarter corporate earnings news and cause another poor performance week. The dollar conversely continued its upside momentum after clearing its 200-day moving average last week. Treasuries continued their surge as rates on the long bond fell to 3.01% and the 10-year Note 1.84%.

The dollar surge early in the week was in response to the socialist victory in France in which Socialist candidate Hollande defeated the incumbent Sarkozy which put in jeopardy the Euro coalition. Then Greece continued to show political impasse and commitment to austerity. Sentiment improved mid-week as the EFSF made it known that 5 billion euros will be available to Greece. Dollar strength provides a headwind to equities.

The greenback has gained 1% in each of the last two weeks to surge above its 50-day moving average. Conversely, the Euro has retreated to a multi-month low. Commodities continue on the defensive. Gold, Silver and Oil have dropped significantly.

Volatility is likely to continue. The VIX ( market’s fear gauge ) rose 0.73 or 3.8% to 19.89, but still not above 20 which is considered the dividing line of bullish to bearish sentiment. M1 continued to shrink up only 16.3% and M2.. 9.8%.. no sign yet of QE3.

The Dow fell 217.67 points or 1.67%; The Transportation index lost 88.94 points or 1.66%, while the Russell fell the least just 1.78 or 0.22%. Seven of the ten Dow Industrial Groups were lower. Basic materials fell the most 2.09% followed by Technology, down 1.76% and Oil and Gas 1.68%. Industrials fell 1.63% and Financials 1.44%. Surprisingly, Telecommunications weathered the avalanche of selling to improve 1.53% is a lousy week.

 

Economic Data

A surprise improvement in the Michigan Consumer Sentiment Survey to 77.8 was much better than both the consensus of 76.0 and 76.4 last month. A lower number had been expected in line with lower economic expectations. The PPI at 0.0% was a surprise to most although the CORE at + 0.2% was exactly as expected.

The Initial Jobless Claims at 367K were in line with expectations of 365K and 368K the previous week.

The Trade deficit widened to -$ 51.2 billion, a horrible number, showing our reluctance to increase domestic oil production for export. The administration has not been friendly to oil.

 

 

Technical Information

 

Support Levels:   S&P 500           1346; 1334                 Resistance S&P 500   1373; 1383

DOW            12,740; 12,680           Resistance DOW         13,040; 13,100

                                        QQQ             6417; 6337                 Resistance QQQ         6509; 6591                     

                                       Nasdaq          2928; 2874                 Resistance Nasdaq      2972; 3036                                          

                                         

CYCLES

“Have not great merchants, great manufacturers, great inventors done More for the world than preachers and philanthropists. Can there be any doubt that cheapening the cost of necessities and conveniences of life is the most powerful agent of civilization and progress?”

 

— Charles Elliot Perkins 1888 Railroad Magnate (1844-1907)

 

Rule 17B requires disclosure of payment for investor relations*

 

Princeton Research has received about $ 2,500 per month from Lucas ( LEI ) marked with an asterisk.  

Princeton has been paid for investor relations in the past and has negotiated a contract to be paid 100,000 restricted shares from Leo Motors. In addition Princeton has bought shares. Princeton is paid by Baron Energy ( BROE ) to do investor relations in the amount of 300,000 shares. Princeton has also bought separate shares about 327,600 and owns the shares for its own account. Cross Border paid us 25,000 restricted shares several months ago. We do not currently represent Cross Border. Princeton has 2,225,000 shares of AIVN.

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 shares in companies it represents at any time.

 

CONTACT 

Please Direct All In

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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