Covering High return Balanced Investing Strategies To
Make Money In Up Or Down Markets
A Publication of Princeton Research, Inc. (www.PrincetonResearch.com)
April 10, 2016
Charles Moskowitz Discussion
Are the Financials the Problem ???
Week 14 was very productive in both accounts. We had gains of about 5% in total value in both, and both accounts have open positions in SIG that not only have no cost, but due to the gap from $2.10 to $4.30 we executed out on the 100% up rule at 207%. The gain for the week was $572 and YTD is now $3455.
Today’s question is really a major issue for this market. Financials is the second largest sector of our market and it couldn’t look worse. The dovish Fed comments and the weakness in retail give some very important clues to direction. This coming week we have the biggest bank earnings, and frankly, the news is ugly. Internationally, even with our tepid performance, banks look terrible. DB (Deutsche Bank) and HGSBF (Hong Kong Shanghi Bank) are either at new all-time lows or approaching them. The only good news is that we have such dramatically lowered expectations that the Q1 earning are already in the market and any good news (and I don’t expect any) would send bank stocks higher. As I’ve said repeatedly in this space, you can’t have a sustained up market without the financials. The biggest hint of things to come may be the strength of the Jap Yen. Not only is it not good news for Japanese manufacturing, but the “Yen carry trade” where you borrow Yen at depressed levels to buy stocks, can cause a major problem for the S & P500. As the Yen strengthens they must be repaid and stocks liquidated to provide the monies needed. Added to this are the dramatic losses in the retailing business both in Japan and here in the US.
On Friday GPS (Gap Stores) lived up to its name and gapped down and closed down 13.84%. It was not alone, since most of our biggest retailers had a terrible week, with GPS -19%, M -8%, JWN -11% and ANF – 9%. Coincidentally, Japans biggest retailer, Fast Retailing gapped and fell from 298 to 244. This company has a 7% weighting in the Nikkei average.
The S&P500 and Nikkei have moved in tandem at the bottom and both rallied in concert, but this is no longer the case. To use the example of our market as “the best house in a bad neighborhood” I think it is unlikely that the rest of the world is going to be dragged up to our performance. The political climate, the continued demonization of our banks and Wall Street, and the data driven Fed all make me believe we are headed lower. We are well positioned for that move, but hyper-aware of the risk, and will keep a vigilant eye on being wrong.
Lastly, the Gold continues to find support at the 1210-1220 range. With the banking and currency issues in play, we will continue to maintain positions near support and watch the prior resistance near 1280-1290…..CAM
All trades were based on your participation in the texting service to receive updates. Previous closed out trades not listed here may be seen in previous market letters.
New trades $ 10,000 account...In Texting we have a limited amount of words. In the interest of brevity: OPTIONS ONLY: 1 January , 2 February. The Quantity and Strike Price for each trade is specific. Trading is hypothetical. We may trade weekly options and they are noted: SPY 1/25 147 for SPY Jan 25th 147 Calls or Puts.For questions please call 702 650 3000. Closed out positions are found in previous letters dating back four years: April 4th; March 28th;21st;14th;7th; Feb 29th22nd; 15th; 8th; 1st;Jan 25th; 18th; 11th; 4th; Dec 28th;21st;14th; 7th; Nov30th; 23rd; 16th; 9th; 2nd; Oct 26th;19th;12th; 5th
3887 Pacific Street, Las Vegas, Nevada 89121
781 826 8882
Princeton is paid $ 1,500 per month from RMS Medical Products. The SITS contract calls for $ 1,500 per month. Princeton had been engaged by Target Energy. No contract is currently in place. . Princeton is paid $ 2500 per month by Immune Therapeutics. Princeton was paid about 300,000 restricted shares of Leo Motors. Princeton is paid $ 2,500 per month for International Star. Princeton is paid $ 2,500 from International Sustainability and is due $ 5,000 per month. Pursuant to the provisions of Rule 206 (4) of the Investment Advisers Act of 1940, readers should recognize that not all recommendations made in the future will be profitable or will equal the performance of any recommendations referred to in this Email issue. Princeton may buy or sell its free-trading shares in companies it represents at any time.
Crown Equity Holdings Inc. has received $1,000 dollars for the publication of Princeton Research, Inc.'s Weekly Market Strategies within the CRWE World network for 12 months