About Our Newsletter
Weekly Market Strategies is a weekly on-line market letter commenting on the economy, economic indicators and the fundamental and technical aspects of the stock market.
Technical indicators and cycles are used to analyze the stock market and to predict the expected direction of the market during the next week and also the next few weeks and months.
We accurately predicted weeks in advance the October 2007 top and warned our subscribers about the coming sell-off. We recommended the purchase of put options to protect one’s portfolio. We also accurately predicted months in advance that the market would bottom late February/early March 2009 (actual date was March 9).
We also predicted in advance most of the tops and bottoms in the market during the past two years. Our past predictions can be found in our past news letters located in the past news letter file.
Issue 325
Posted: September 27th, 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
September 27, 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
Stocks continued a brisk rally at the expense of the dollar which fell 2.5% last week following another 1.5% drop the previous week. The fed release at the FOMC meeting last Tuesday left little doubt that they would try to help the economy resist deflation at the cost of expanding the money supply and injecting more funds into the economy if deflation threatened.
However, the money supply dropped last week with M1 falling over 1% to 5.2%, which remains a pretty high number. However, expansion of money is only the denominator of the equation and transactions need to grow to make their work effective.
All 10 Industrial Groups were higher but none significantly, led by Consumer services up 2.93% followed by Technology + 2.86%; Basic materials managed to gain 2.78% and Health care 2.42%; Oil and Gas were buoyed by the weak dollar despite huge oil supplies rising 2.41%. Industrials gained 2.36% and telecommunications 2.21%; Consumer goods gained 1.42% and rounding the list of ten Financials eked out a gain of 0.38%.
Adobe got sold off issuing mixed earnings and shares plunged 19% on the week. M&A activity continues to pick up. IBM announced they will buy Netezza ( NZ ) for $ 27 per share which comes to $ 1.6 billion. So far in 2010 M&A activity has included 274 public companies and is roughly 20% ahead of 2009. Microsoft, also loaded with cash, announced a 23% dividend increase.
Issue 324
Posted: September 20th, 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
September 20, 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 Information
In last week’s letter we wrote that last week was option expiration week which often has a bullish bias because the shorts and option writers frequently get squeezed so the market might hold up last week. We also pointed out that put option buying had picked up again and the put/call ratio was bullish but not at extreme levels but on the other hand the advance/decline oscillator was overbought so the indicators were mixed. We did thus not expect a big move last week but there would be a bullish bias. That is exactly what happened. The next short term cycle is now in mid-September which will be a high that came in on Friday or will come in this week. Call option buying has picked up and the put/call ratio is now slightly bearish. Some other sentiment indicators show much too much bullishness which is bearish. The market does appear to have lost upside momentum. The advance/decline ratio was not impressive at all during the rally last week and as a result the short term advance/decline oscillator is now only slightly overbought. This means that the market can rally more if it wants to but it looks like it is struggling. A pullback is more likely, especially after an up expiration week. On the other hand a close over S&P 500: 1132 would be a chart breakout and could lead to melt up for a few days because of short covering and under invested mutual funds jumping in. So watch that level closely. To confirm the S&P 500 breakout the DOW would have to close over 10,720 (the August 9 high). The cycle after the mid-September cycle is an intermediate cycle in mid-October plus or minus a week and we expect it to be a low. Strong resistance is at the August 9 high for the DOW at 10,720, and at the June 21 high for the S&P 500 at 1132. The QQQQ closed above its June (at 47.68) and August (at 47.19) highs last week so we have a bearish inter-market divergence with the DOW and S&P 500 badly lagging the QQQQ. The DOW and S&P 500 would have to close above the June /August highs to eliminate the bearish divergence. Closes above those levels would indicate that a larger rally was taking place. Initial support is at DOW: 10,340-10,380, S&P 500: 1090 and QQQQ: 45.60-45.80. Important support is at the August 27 lows at: DOW: 9,936, S&P 500: 1039 and QQQ: 42.97 and a close below these lows would confirm that the test of the July 1/2 lows at DOW: 9,614, S&P 500: 1010 and QQQQ: 41.77 had started. The parameters to watch are thus very clear and let the support and resistance levels govern your trading and your stops.
We are in a secular bear market that appears to be far from over and we expect another big selloff this year. However, every bear market has several good rallies that can last from a few weeks to many months. We had one of those rallies (called a cyclical bull market in a secular bear market) which lasted into the April-May time frame (exactly as we predicted based on longer term cycles). It looks like the expected top came in on April 26. It is now likely that the secular bear market has resumed. Only closes above the April 26 highs would negate the resumed bear market scenario.
Support Levels: S&P 500 11:10; 10:87;10:65 Resistance S&P 500: 11:33; 11:45-1150;11.80
DOW 10:330; 10,130 Resistance DOW: 10:660-690; 10, 730-40
QQQQ 46.90-47.10 Resistance QQQQ: 48.80
Issue 323
Posted: September 13th, 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
September 13, 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
The markets were lackluster with the absence of any major corporate news is a holiday shortened week. Four of the five major indexes had small gains of less than one percent, while the Russell the only loser, fell 1.07 percent ( see above table ) The most notable change is the increase of M1 Money Supply up 8.7% the largest weekly gain of the year.
Six of the ten Dow Industrial groups were a little higher, while four groups were slightly lower. Healthcare led all groups with a 1.85% gain followed by Telecommunications which rose 1.48%. Utilities fell the most off just 0.73% followed by Financials down 0.40%. Basic Materials after being strong the past few weeks fell a little, – 0.20%. The economic fundamentals became the support which justified the modicum of strength for the week.