Issue 308

Posted: May 31st, 2010 | Author: WMS

Market Strategies

Covering 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 and Dr. Jan Vandersande

June 1, 2010; Market Strategies Guide To Successful Trading

We give great entries Trading Options are a timely event, Since we can only report weekly, Your Own Money Management on Options Trading may be more timely to Take your Profits/Losses

Index Option Recommendations (count for $2500 in our model portfolio)

We bought the DOW June 100 call at the open last Monday at 4.05 to play the expected rally. We are holding this option with a small loss. Take half profits at DOW 10,400 and place a stop at 9,900 on a closing basis.

We will look to buy puts on any further rally into our cycle high expected early-June to play the subsequent selloff.

For investors it has continually been recommended that some puts are held to protect one’s portfolio (portfolio insurance) against sharp market sell-offs exactly as we had early last week. For those who have no put options to protect your portfolio we recommended the following options, especially on any rally: the DOW (DIA) July 104 put and the QQQQ July 46 put.

For those of you who do not buy puts to protect your portfolio, there is an ETF that is the inverse of the DOW. The symbol is DOG and goes up when the DOW goes down and down when the DOW goes up.