– The Stock Market Companion –
15MinuteStocks
Market Update
May 5, 2010
——- Stock Market Investing since the 1980’s ——-
Published all Market Days
Monthly Subscription $29.95
 Today’s SMC Watchlist

– Executive Summary – 

The primary and secondary markets were down again today.  343 stocks of the SP-500 were down.  That’s 68% of them.  21 stocks out of the DOW 30 (DJ-30) were down.  That’s 70%.  Please click on the DOW 30 link to open today’s SMC daily chart.

Many have opinions about the market.  What you need are significantly fewer opinions, a few insightful and key facts, some excellent ideas, and the steady hand of a companion who views the stock market as a place to multiply wealth when the time is right, and understands the importance of staying out when the time isn’t right – and is practiced at it. That’s what the SMC is all about.

A good stock at the wrong time is still wrong.  We’ve witnessed directors of companies buying hundreds of thousands of shares of companies over a series of days, watched that information be sold as “valuable” insider buying news on the web at expensive subscription rates, and then watched the stock get cut 90% in value in a matter of weeks.  In some cases those same companies have gone bankrupt.  No kidding.

Right now, there is no one who can accurately tell you what is going to happen in the stock market tomorrow.  For the majority of stocks, we are now in what we call – no man’s land.  Some are over-sold, but if things blow-up financially in some corner in Europe tonight or tomorrow, what’s over-sold today is going to become more over-sold tomorrow.  On the other hand, the market is at key support and may bounce up from here.  We simply don’t know yet.

We can’t have a liquid market that – when the time and story is right – can multiply the value of an asset 100% or more in the matter of months, weeks, or in some cases days, and expect this same market to act like a purring kitten sleeping sweetly in our lap at all times.  This market can and regularly does destroy financial fortunes and doesn’t think twice about it.  It’s liquid and it is driven by the most basic human emotions = fear and greed.

Fear is controlling this market right now, but if there appears to be some kind of predictable outcome to the European Union’s financial distress, greed will kick-in quickly.

There will be plenty of great opportunities to come.  The current, great opportunity that we are enjoying right now is called, “not losing money”.  We are very comfortable with that, and hope you are too.

(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	1,165.87	Index	Down = -7.73 points
DOW-30	10,868.12	Index	Down = -58.65 points
NASDAQ	2,402.29	Index	Down = -21.96 points
NASDAQ 100	1,958.26	Index	Down = -10.71 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.

We’re going to watch how the market handles its 50 day moving average and it’s current support line before we declare it in an intermediate downtrend.

– Today’s Highlights –

Just like yesterday, the focus of attention in the financial community is on the European Union and a possible crisis concerning the Euro.  The US Dollar again moved up vertically as investors seek safety there.  Today gold was up a bit.

– Stock Investing Specifics and Strategies –

 Dendreon Inc. (Ticker: DNDN) held on pretty well today.  Click on the link to see the SMC daily chart of Dendreon. Tonight we totalled up (using Finance.yahoo) the number of shares sold by insiders at Dendreon and came up with 1.08 million shares.  That’s a lot of shares.  We would prefer that they held on.  Insiders still hold plenty and institutions have stepped up to buy shares.  Unless the stock begins to show significant weakness, we will simply look at this event as a time in the company’s history that insiders transferred a significant portion of their ownership to institutions.  For insiders, this is prudent.  For institutions, this may be an opportunity.  We’ll see soon enough if there is an opportunity for us too.

 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	1.2832 USD = 1 Euro	USD / EUR	Dollar = UP (HOT)
Gold	$1,175.70	Ounce	Gold = Flat
Oil	$80.09	Barrel (West Texas Crude)	Oil = Down
30 Yr. Fixed Mortgage	5.11	Percent	Down
30 Yr. Bond Yield	4.39	Percent	Down
1 Yr. CD	1.38	Percent	Flat

(Data Source : Finviz.com Financial Visualizations)
 

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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