Issue 316

Posted: July 26th, 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

July 26, 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

FUNDAMENTAL NEWS

Positive earnings reports from major companies plus Fed Chairman Ben Bernanke stating the Fed is prepared to take unusual steps to bolster the economy, caused dollar weakness which buoyed equities. The Fed Chairman went on to say the future remains “ unusually uncertain .” Meanwhile, jobless benefits were extended putting money back in the pockets of 3 million long-term unemployed. When benefits hit probably next month, about $ 4 billion in back pay will help spur a rebound in retail sales.

Apple, on Tuesday reported blow-out numbers. AT&T, eBay, Ford, Verizon, Qualcomm and Morgan Stanley exceeded expectations, while Amazon and IBM disappointed.

Basic Materials surged 8.38%, one if its best performances the whole year followed by Industrials, up 6.90%. Telecommunications gained 4.43% and Consumer services 4.16%; Oil and Gas was up 3.89% followed by Technology, gaining 3.66%. Financials also had a good week, up 3.47%. Consumer Goods gained 3.29%. Utilities added 2.97% rounding out the winners. Health Care was the lone loser off 0.49% on the week.

Issue 315

Posted: July 19th, 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

July 19, 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

Technical

The June selloff ended on July 1 with intraday lows at DOW: 9,614, S&P 500: 1010 and QQQQ: 41.77 with the DOW and S&P 500 closing below the triple bottoms of February 5/May 25/ June 8. That was a serious technical breakdown and confirmed that the cyclical bull market has ended and the secular bear market has resumed (this scenario will hold as long as the April 26 highs are not broken on a closing basis). At that July 1 lows the short term advance/decline oscillator was very oversold, the RSI (relative strength index) was at 1 1/2 year lows and put option buying has picked up sharply so we stated that an oversold bounce was expected. The rally came with a vengeance two weeks ago and continued into last week (except for Friday) exactly as we predicted. We pointed out that last week was option expiration week and as often is the case it has a bullish bias because the shorts and option writers usually get squeezed. That is exactly what appears to have happened the first four days of last week. After the sharp selloff on Friday the short term advance/decline oscillator is now neutral and option put/call ratios are also neutral (call option buying picked up last week but on Friday put option buying picked up sharply) so a pullback and/or resumption of the downtrend could continue until the market becomes oversold (similarly the market could rally until it gets overbought but we consider that less likely). The market now appears to have made a lower high at the July 13 intraday highs at DOW: 10,408, S&P 500: 1100 and QQQQ: 45.81 (below the June 21 highs) and has turned down suggesting that it should now continue lower. The next important intermediate cycle is late July (plus or minus a week) and then there is a shorter term cycle in mid-late August. At the moment we expect the late July cycle to be a low. If this is scenario is correct we then expect the mid-late August cycle to be a high. Initial resistance is at the July 13 highs and key resistance is at the June 21 highs at DOW: 10,594, S&P 500: 1132 and QQQQ: 47.68. Closes above the July 13 highs would mean the market is rallying rather than selling off into our late July cycle. As long as the indices hold below the July 13 and the June 21 highs it is still in a downtrend. Closes above those resistance levels would indicate a larger rally was taking place. The parameters to watch are thus very clear and let the support and resistance levels govern your trading and your stops.

Issue 314

Posted: July 11th, 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

July 12, 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

Significant profits made the past eight weeks. We remain long the SDS ETF from March 26th with a stop loss at 28. We are still winning in this position even though it lost over 400 points last week.The SDS is a triple inverse S&P ETF, which goes up as the S&P goes down. The portfolio is designed to have balance between longs and shorts. Investors could have made over $ 49,000 this year already while having minimal exposure to market direction. Make money whether the market goes up or down with Balance in your Portfolio

Model Portfolio Comments/Changes:

Last week’s recommendation (AAPL) opened higher last Monday but by the close had come back down to our recommended price. Last Thursday it opened above our take half profit level ($260) and we used the opening price for portfolio calculations. Many of our portfolio stocks are just too cheap to sell (selling at P/E ratios below 10 and some are even selling at P/E’s around 5). The downside appears very limited for those stocks and we will hold them for now.