-Executive Summary-

• SP-500 = FLAT ;  Dow-30 moved higher on strength in Asia.  Overall, the U.S. markets appear somewhat weary.  Nasdaq stocks retreat… Apple Inc.  hardly budged on a strong Goldman Sachs upgrade.  See more below.
• We issued two Stock Market Companion Intra-Day Alerts today.   See more below.

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– 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 Trends –

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

– Market Perspectives –

For your added perspective, we’ve included these two different views of the broader market –

1. SMC SP-500 ETF Daily Chart (Click to open helpful chart in a separate browser window).

2. SMC SP-500 Weekly Chart (Spanning back through 2007)

– Today’s Highlights –

Throughout the day, the market was behaving strangely.  Let’s start with what we think is driving this market –

1. The value of the U.S. dollar.  Since the first week of November, the dollar has been on an upswing, fueled mostly by strong concerns about European sovereign debt and a meltdown in Ireland.  Two weeks ago the dollar peaked and has been retracing.  Today brought a significant decline in the dollar.

From the day that the U.S. dollar recently peaked = Nov. 30th,  the U.S. stock market has been advancing.  Today was no different as the declining dollar brought buyers in commodity based stocks like steel.

2. Tech and Nasdaq stocks are acting tired. For instance, Apple Inc. (AAPL) was not able to capture investors imaginations today even though Goldman Sachs put it on its Conviction Buy List and gave it a $430/share target … which is +$108/share higher than today’s price.  Apple closed higher by $1.11/share, which is peanuts compared to what should have been a big day.  Netflix is no different.  It closed down approx. -$10/share  at $183.80/share.  Amazon.com also hasn’t been able to put on any additional value for over two weeks, even though they have clearly captured the attention of consumers able to shop online.

When excellent stocks like Apple Inc. and Amazon.com can’t put on steam when the overall market is advancing, it is a warning flag to careful investors.

3. The Shanghai stock market advanced over +2.9% yesterday on news that China would not immediately hike interest rates. This is a pro-growth development that should have positive implications over time for equities, worldwide.

4. U.S. Politics – Today’s vote in the U.S. senate concerning the fate of the Bush-era tax cuts had its influence, as did the U.S. federal judge in Virgina who ruled against the keystone of Obamacare = mandatory insurance coverage for individuals.

– Story-Stock Investing –

Today we issued two Stock Market Companion Intra-Day Alerts –

Dear Subscriber-Friend –

When a high-flying stock like Zagg Inc. (Ticker: ZAGG) crosses into new high territory, and then turns DOWN on high volume – we do more than just take note.   We have increased our stop to $8.00/share.  A stock like this shouldn’t be behaving like this on a good day in the market.  It should be pressing higher or quietly building a higher “base” to push higher from when the time is right.  We are giving it an extra 30 cents from here to mend its ways this afternoon.

We are interested in Zagg Inc. because its earnings are excellent, its target market of smart phone and Ipad buyers is very strong, this Christmas season is undoubtedly going to see strong sales in both smart phones and Ipads, and the stock price chart has shown the excellent characteristics of a stock ready to march higher.  This morning the stock crossed above $9.00 a share and was looking good.  Since 10:30 am, the stock has been heavily sold and is now at $8.32/share.  We are cautious.

Dear Subscriber-Friend –

At the SMC, we are interested in a bounce opportunity in Cisco Systems Inc. (Ticker: CSCO).  The stock is showing resilience to market fluctuations this morning at $19.88/share.  Our stop is down around $19.00.

Your – Stock Market Companion

Our sojourn into Cisco Systems Inc. (Ticker: CSCO) which we initiated today, may require patience.

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