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

August 16, 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

Last week we wrote that the advance/decline oscillator was slightly oversold and the put/call option ratio had turned slightly bullish (put option buying picked up the previous week but not at the extreme levels seen at bottoms). Hence, a snap back rally was likely last week especially since last week was option expiration week which frequently has a bullish bias because shorts and option writers often get squeezed (this does not happen as often during down trends as compared to up trends- so caution was advised). The market rallied after making intraday lows last Monday and the rally lasted into Wednesday, after which the selling resumed. On Friday the DOW and S&P 500 made lower intraday lows at DOW 10,147 and S&P 500 1063 below Monday’s lows while the QQQQ held above Monday’s low (44.54 compared to 44.30). This is a possible bullish divergence that could result in a rally or which would be negated when the QQQQ trades below 44.30. The advance/decline oscillator is only slightly oversold and put/call ratios have increased with increased put option buying last week but are not at the extreme levels usually seen at bottoms. This means that the market could rally a bit early this week to work off the oversold condition and then selloff again or continue lower immediately to a more oversold condition and then rally into early September (the latter is our preferred scenario). We had an intermediate cycle in mid-late August (plus or minus a week) and we expected it to be a high. It now looks like the high came in slightly early on August 9 (just within our cycle time frame). The next short term cycle is in mid-September which we expect to be a low after a rally into early September. Initial resistance is at the August 9 highs at DOW: 10,720, S&P 500: 1129 and QQQQ: 47.19 and market will remain in a short term/intermediate term downtrend as long as the indices hold below the June 21/August 9 (for DOW) highs (at DOW: 10,720, S&P 500: 1132 and QQQQ: 47.61). Closes above those levels would indicate that the August high is not in yet and that a larger rally was taking place. Initial support is at the July 20 lows (at: DOW: 10,007, S&P 500: 1056 and QQQQ: 43.86) and closes below these lows would indicate a test of the July 1 lows was in progress. 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.

The support and resistance levels to watch now are: S&P 500: support is at 1056, then 1040 and then 1010 while resistance is at 1129-1132 and then 1175 for the QQQQ: support is at 43.86, then 43.23-43.59 and then 41.77 while there is resistance at 47.19, then 47.58-47.68 and the 48.79 and for the DOW: support is at 10,007, then 9,757 and then 9,614 while there is resistance at 10,702, then 10,920 and then 11,258.

CONTACT

Please Direct All Inquires To:

Mike King
Princeton Research
3887 Pacific Street, Las Vegas, Nevada 89121

Phone: (702) 650-3000
Fax: (702) 697-8944
mike@princetonresearch.com
www.PrincetonResearch.com

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

August 16, 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

New Stock Recommendations

LINC- Lincoln Educational Services- 12.07- provides career-oriented post-secondary education services in the United States. It offers degree and diploma programs for high school graduates and working adults in the areas of health sciences, automotive technology, skilled trades, hospitality services, and business and information technology. Has dropped from 22 to 12 in three weeks, mainly due to pending federal regulation of the for profit schools. Is selling at around 5 times company guidance earnings for 2010. Is extremely oversold and dirt cheap. We will try to play that bounce. Place a stop at 9 and take half profits at 16.

LEI- Lucas Energy- 1.70- a small producing independent Oil & Gas company. We have played this one before with great success. It has now pulled back to support so we will buy it again. Place a stop at 1.40 and take half profits at 2.20.

• Each stock is allocated a $ 5,000 share of the portfolio unless otherwise indicated. We recommend a double position in ENZ and MTBR.

CONTACT

Please Direct All Inquires To:

Mike King
Princeton Research
3887 Pacific Street, Las Vegas, Nevada 89121

Phone: (702) 650-3000
Fax: (702) 697-8944
mike@princetonresearch.com
www.PrincetonResearch.com

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

August 9, 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

Economic numbers continued weak, however, the markets continued to be supported by a weak dollar and the hope that the Fed can reverse the effects of deflation through increasing the monetary base. In his most recent testimony before Congress, the Fed Chairman Ben Bernanke stated the economic outlook was “ unusually uncertain.” Since these remarks, the greenback has plummeted going from a high of 88.71 June 7th to 80.34 and even slightly below the 200 day moving average.

Health care led all ten Dow Industrial Groups last week rising 4.10%. Oil and Gas was next up 3.35% and Basic Materials gained 2.51%. Utilities were next gaining 2.04% followed by Telecommunications plus 1.61%.Industrials were up 1.57% and Technology 1.56%; Consumer Services rose 1.24% followed by Consumer Goods, up 1.11% and then Financials last up 0.37% in what was a modest up week with all ten Dow Indexes slightly higher.

The elevated unemployment rate has many observers urging the adoption of deflation-fighting tactics a strategy for trying to avoid the deflationary type economy, similar to that of Japan, by pumping more liquidity into the financial system.

CONTACT

Please Direct All Inquires To:

Mike King
Princeton Research
3887 Pacific Street, Las Vegas, Nevada 89121

Phone: (702) 650-3000
Fax: (702) 697-8944
mike@princetonresearch.com
www.PrincetonResearch.com

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

August 2, 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

It was a slow week with counterbalancing fundamentals. The dollar was very weak which buoyed equities. On the other hand, economic news was poor which kept a rally from occurring.

The earnings quarterly calendar for the S&P 500 is almost complete with 2/3rds having reports. Operating earnings are on track to grow 36% while revenues are on pace to improve 9% according to “Briefing.Com”.

Stocks barely moved. The best performing sector, Telecommunications was up 1.57% and the worst, Technology was down 1.62%. In between there was not much movement: Financials were second best performer up 0.94% followed by Health care, up 0.33%. Rounding out the winners, Oil and Gas was up just 0.14% and Industrials 0.10%. Basic Materials lost 0.08%and Consumer Services 0.43%; Consumer Goods fell a little more, off 0.57% and Utilities were weak falling 0.72%.

The treasury markets were strong as another $ 100 billion of offerings were easily digested in 2,5, and 7 year maturities. The 2-yr Note fell to another record low, 0.546%. The 10-Yr Note fell 9 basis points to 2.90%.

The S&P 500 was little changed at the week’s end having risen above the 200-day moving average, but unable to hold and closing the week slightly below.

CONTACT

Please Direct All Inquires To:

Mike King
Princeton Research
3887 Pacific Street, Las Vegas, Nevada 89121

Phone: (702) 650-3000
Fax: (702) 697-8944
mike@princetonresearch.com
www.PrincetonResearch.com

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.

CONTACT

Please Direct All Inquires To:

Mike King
Princeton Research
3887 Pacific Street, Las Vegas, Nevada 89121

Phone: (702) 650-3000
Fax: (702) 697-8944
mike@princetonresearch.com
www.PrincetonResearch.com

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.

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.

The support and resistance levels to watch now are: S&P 500: support is at 1040 and then 1010 while resistance is at 1100-1106 and then 1132 for the QQQQ: support is at 43.23-43.59 and then 41.77 while there is resistance at 45.81 and then 47.58-47.68 and for the DOW: support is 9,757 and then 9,614 while there is resistance at 10,408, then 10,594 and then 10,920.

CONTACT

Please Direct All Inquires To:

Mike King
Princeton Research
3887 Pacific Street, Las Vegas, Nevada 89121

Phone: (702) 650-3000
Fax: (702) 697-8944
mike@princetonresearch.com
www.PrincetonResearch.com

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.

CONTACT

Please Direct All Inquires To:

Mike King
Princeton Research
3887 Pacific Street, Las Vegas, Nevada 89121

Phone: (702) 650-3000
Fax: (702) 697-8944
mike@princetonresearch.com
www.PrincetonResearch.com

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 5, 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

For a third consecutive week, the economic news was horrible and the markets accelerated to the downside falling every day last week, with hardly a bounce, facing continued unabated selling pressure in a holiday atmosphere..

The Long Bond fell below 4%; the 10-yr Note below 3% and the 2-Yr below 0.60%, record lows amid a flight to safety and panic all over.

All ten industrial groups were led by Basic Materials, off a whopping 8.09% Financials fell 7.33% followed by Industrials, down 6.50%. Technology fell 5.62% followed by Oil and Gas off 5.41%. Consumer Services fell 5.26%; Health Care lost 3.58%, Utilities fell 2.52%; Consumer Goods dropped 2.01% and Telecommunications was down the least, off 1.90%.

CONTACT

Please Direct All Inquires To:

Mike King
Princeton Research
3887 Pacific Street, Las Vegas, Nevada 89121

Phone: (702) 650-3000
Fax: (702) 697-8944
mike@princetonresearch.com
www.PrincetonResearch.com

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 28, 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 seven weeks. We remain long the July SDS ETF from March 26th with a stop loss at 28. 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 $ 46,000 this year already while having minimal exposure to market direction. Make money whether the market goes up or down with Balance in your Portfolio

New Stock Recommendations

SKBI- Skystar Bio-Pharmaceutical Corp – 6.59- engages in the research, development, production, marketing, and sale of veterinary healthcare and medical care products in China. Dropped from 12 to 6 in three months. Is only selling at less than 5 times earnings based on estimates by three analysts so should have limited downside and lots of upside. Only has around 7 millions shares outstanding so is volatile. Has no debt and a book value of around $8. Is speculative so be cautious. Place a stop at 5.50 and take half profits at 8.50.

Model STOCK PORTFOLIO

• Each stock is allocated a $ 5,000 share of the portfolio unless otherwise indicated. We recommend a double position in ENZ and MTBR.

CONTACT

Please Direct All Inquires To:

Mike King
Princeton Research
3887 Pacific Street, Las Vegas, Nevada 89121

Phone: (702) 650-3000
Fax: (702) 697-8944
mike@princetonresearch.com
www.PrincetonResearch.com

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 21, 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

New Stock Recommendations

DJSP- DJSP Enterprises- 6.09- engages in providing non-legal services supporting residential real estate foreclosure, other related legal actions, and lender owned real estate (REO) services in the United States. Dropped from 12 to 5 in a month when last quarters earnings disappointed. Is only selling at less than 5 times earnings based on guidance by the company ($1.29 per share) and is expected to do around $300 million in revenues this year. We expect the foreclosure rate to increase so their business should pick up. Is speculative so be cautious. Place a stop at 4.50 and take half profits at 8.00.

LEOM* Leo Motors 0.95 is potentially one of the leading electric vehicle makers with excellent battery management systems for handling volatile lithium. The stock has dropped from the 3.00 level in November 2009 and could easily go back there. Place a stop at 0.45 risking 0.50 on the trade.