– The Stock Market Companion –
15MinuteStocks
Market Update
May 4, 2010
——- Stock Market Investing since the 1980’s ——-
Published all Market Days
Monthly Subscription $29.95
 Today’s SMC Watchlist

– Executive Summary – 

Some folks realized today that they may have arrived a little too late to the party.  They’ve had time to look around and have tried the appetizers and found them a bit stale.  They don’t want to stick around, so they are starting to head out the door.

The markets were all down significantly today as the Greenback soared on concerns in Europe that Greece and other European nations such as Portugal, Spain, Italy, and Ireland may break the confidence in the Euro.  In terms of Greece, what was initially priced as a $40 billion or so fix, has become a $147 billion repair job – with an uncertain guarantee on the lifetime of the repair.

The DOW broke the 11,000 support line like it was a Tinker-Toy under the wheel of a car leaving the driveway. 

There is an old saying on Wall Street that the bulls go up the stairs, and bears head out the window.  There were bears seen falling out the window today.  As an example, Google was down $24 and change today, and broke through its 200 day moving average in the process.  Not good.  Remember that we reported AOL saying a week ago that ad revenues weren’t so hot….

(For our concise market assessments, market details, stock ideas, and SMC return on investments – see below)   

– Markets “At a Glance” –

(Please scroll down to the end of the report to see your favorite benchmarks – Dollar, Oil, Gold … closing prices and daily direction.)

Market	Price (Today’s Close)	Unit of Measure	Today’s Direction
SP-500	1,173.60	Index	Down = -28.66 points
DOW-30	10,926.77	Index	Down = -225.06 points
NASDAQ	2,424.25	Index	Down = -74.49 points
NASDAQ 100	1,968.97	Index	Down = -62.63 points

 

– Market Trends –

Trend	SP-500	DJ-30	NASDAQ	NASDAQ 100
Short Term	Down	Down	Down	Down
Intermediate	Lateral	Lateral	Lateral	Lateral
Long Term	DOWN	DOWN	DOWN	DOWN

*Summary of terms from Trader Vic II-Principles of Professional Speculation (pg. 140-141)
*_________* Represents a change in trend rating.

 At the SMC, we exited our last holding last Thursday.  We have no stock holdings at this time.

At the SMC we teach investors to first observe the behavior of the market indices and then proceed to individual stocks.

– Today’s Highlights –

The focus of attention in the financial community is on the European Union and a possible crisis concerning the Euro.  The US Dollar has moved up vertically in kind as investors seek safety there.  To the surprise of many gold bugs, the yellow metal was down today.

– Stock Investing Specifics and Strategies –

While the market is finding its way, we would like to remind everyone that some American companies have been posting excellent earnings.  So we are going to stick our neck out here and simply say – we don’t expect another financial meltdown.  However, a 10% retrace in the markets would not surprise us and on some days like today, it will feel like the sky is falling.  Using our 2x to 4x rule of thumb that we shared with you yesterday, a negative 10% move in the market will mean that stocks will be down 20% to 40% from their recent highs.  Some – such as AK Steel Corp. (Ticker: AKS) are well on their way there.  There are many charts that look like AKS right now in the market.  The SMC may engage some of these oversold stocks of excellent companies soon.

Please keep a look out for an SMC Intra-Day Update with some rather unusual ideas.

Rentech Inc. (RTK) = looks strong.

 Please remember – at the Stock Market Companion we do not and cannot give individual investment advice. According to the State of Washington RCW 21.20.005 the Stock Market Companion is not a Registered Financial Advisor and we do not render any advice on the basis of the specific investment situation of a particular individual. This information is for a wide readership and is not intended for any particular individual,  and under no circumstances should our SMC Intraday Update, SMC 15MinuteStocks Market Update or Watchlist be considered an investment recommendation or plan for any specific individual.  By accessing this material, you agree that the Stock Market Companion will not be held liable for any actions taken by a subscriber or other parties.  Please seek the council of a broker or other licensed investment professional for accurate pricing and concerning the suitability of all investments that you may be considering. Disclosure : Please understand that the Stock Market Companion holds positions in the above mentioned securities.  Based on market related or personal events these positions may change without notice.         

 

– Stock Market Companion – Current Holdings –

Nr.	Co.	Ticker	Action	Entry Date	Current Gain (Loss)

If there was a company with a ticker labeled “100% CASH”, we would have to report our holdings in the above table.

– Stock Market Companion – Previous Holdings –

Nr	Co.	Ticker	Entry Date	Exit Date	Total Gain or (Loss)
1	YRC Worldwide	YRCW	2/26/2010	4/29/2010	+35%
2	US Natural Gas ETF	UNG	4/9/2010	4/29/2010	(-4%)
3	Ford Motor Co.	F	4/14/2010	4/27/2010	+5.4%
4	ProShares Ultra Short SP-500	SDS	4/7/2010	4/9/2010	(-1.8%)
5	US Natural Gas ETF	UNG	4/5/2010	4/8/2010	(-8.2%)
6	Apple Inc.	AAPL	3/23/2010	4/7/2010	+5.7%
7	Ford Motor Co.	F	3/31/2010	4/7/2010	(-2%)
8	Somaxon Pharmaceuticals	SOMX	3/23/2010	4/6/2010	(-15.9%)
9	Dendreon Inc.	DNDN	3/23/2010	3/31/2010	(-1.4%)
10	ProShares Ultra Short SP-500	SDS	3/19/2010 (1/2 Position)	3/23/2010	(-1.5%)
11	Dendreon, Inc.	DNDN	2/11/2010	3/19/2010	+14.5%
12	General Electric Co.	GE	3/16/2010	3/19/2010	+1.4%
13	Apple Inc.	AAPL	3/5/2010	3/19/2010	+1.3%
14	Ford Motor Co.	F	2/25/2010	3/18/2010	24%
15	RINO International	RINO	3/3/2010	3/17/2010	3.1%
16	Nutri-System Inc.	NTRI	10/16/2009	12/28/2009	+79.7%
17	Palm Inc.	PALM	11/11/2009	11/27/2009	-8.6%
18	Research In Motion	RIMM	12/8/2009	1/5/2010	+6.8%
19	Simple Tech, Inc.	STEC	12/15/2009	1/5/2010	+62.2%
20	US Natural Gas ETF	UNG	12/10/2009	1/8/2010	+6%
21	Human Genome Sci.	HGSI	12/22/2009	1/8/2010	(-0.2%)
22	Ford Motor Co.	F	11/9/2009	1/12/2010	+48.6%
23	Western Refining Inc.	WNR	1/5/2010 (1/2 Share Count)	1/12/2010	(-5.5%)
24	RINO International Corp.	RINO	1/8/2010 (1/4 Share Count)	1/12/2010	(-5.1%)
25	Bank of America Inc.	BAC	1/4/2010	1/12/2010	+4.7%
26	YRC Worldwide	YRCW	1/12/2010 (1% only)	2/4/2010	(-17.1%)
27	Dendreon Inc.	DNDN	2/3/2010 (1/4 Share Count)	2/4/2010	(-2.7%)

* Gains (losses) do not include brokerage fees

– Benchmarks “At a Glance” –

US Dollar	1.2983 USD = 1 Euro	USD / EUR	Dollar = UP (HOT)
Gold	$1,173.00	Ounce	Gold = Down
Oil	$82.23	Barrel (West Texas Crude)	Oil = Down
30 Yr. Fixed Mortgage	5.11	Percent	Down
30 Yr. Bond Yield	4.43	Percent	Down
1 Yr. CD	1.38	Percent	Flat

(Data Source : Finviz.com Financial Visualizations)

Tuesday night is bath night here for the kids… We all love it.  (Editor’s Note: Mama and Papa bathe more frequently:) It’s the one night when we are almost certain to watch a video.  Last week we watched “Benji”.  This afternoon, Gideon is working on his Lego aircraft carrier and other ships of a flotilla that he designed and has built for “Tuesday’s in the Tub”.  When the water is gone, the lurking submarine remains as a reminder of the battle that took place.

Aircraft on Gideon’s Aircraft Carrier	Gideon’s Submarine

We wish you all a fine evening.

Remember to invest on your own, but not alone.

Signing off for today, your –

Stock Market Companion

** Stock Market Companion Disclaimer **

The Stock Market Companion (SMC) Market Update and Watchlist are published documents to subscribers that show how we (SMC) are viewing the markets and what we are watching, investing in or selling today.  This information is for a wide readership and is not intended for any particular individual,  and under no circumstances should this Market Update or Watchlist be considered an investment recommendation or plan for any specific individual.  By accessing this material, you agree that the Stock Market Companion will not be held liable for any actions taken by a subscriber or other parties.  You understand that the Stock Market Companion holds positions in the above mentioned securities.  Based on market related or personal events these positions may change without notice.

Furthermore, the Stock Market Companion, Inc. is a content provider and publisher and not a registered broker-dealer or licensed investment professional.  Our intent is to publish very accurate market information for an audience of subscribers (1000+ subscribers).  By accessing the Stock Market Companion website and/or using the Stock Market Companion products and services such as this Market Update and accompanying Watchlist, you understand and agree that the material provided in the Stock Market Companion products and services is for informational and educational purposes only, and that no mention of a particular security in a Stock Market Companion product or service constitutes a recommendation to buy, sell, or hold that or any other security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.  To the extent any of the information contained in any Stock Market Companion product or service may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.  Before selling or buying any stock or other investment you should consult with a qualified broker or other financial professional to verify pricing information and to solicit advice as to the appropriateness of a given transaction or investment.<

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