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 317
Posted: August 1st, 2010 | Author: Michael King and Dr. Jan Vandersande
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
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.
Issue 316
Posted: July 26th, 2010 | Author: Michael King and Dr. Jan Vandersande
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: Michael King and Dr. Jan Vandersande
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.