– The Stock Market Companion –
15MinuteStocks
Market Update
December 17, 2010
—— Stock Market Investing since the 1980’s ——
Published all Market Days
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-Executive Summary-
- The markets continued to show lack of enthusiasm today, after Ireland received a 5 notch downgrade on their rating from Moody’s. The markets were basically FLAT at the close. See more below.
- Bank of Ireland (Ticker: IRE) held up modestly well in the face of the Moody’s downgrade of Ireland “credit” rating.
- InterMune Inc. (ITMN) was UP over 100% on their tentative drug approval in Europe. 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 |
Price (Today’s Close) |
Unit of Measure |
Today’s Direction |
SP-500 |
1,243.91 |
Index |
Flat = +1.04 points |
DOW-30 |
11,491.91 |
Index |
Flat = -7.34 points |
NASDAQ |
2,642.97 |
Index |
Flat = +5.66 points |
NASDAQ 100 |
2,218.29 |
Index |
Flat = +0.27 points |
– Market Trends –
Trend |
SP-500 |
DJ-30 |
NASDAQ |
NASDAQ 100 |
Short Term |
Lateral/Down |
Lateral/Down |
Lateral/Down |
Lateral/Down |
Intermediate |
UP |
UP |
UP |
UP |
Long Term |
Lateral |
Lateral |
Lateral |
Lateral |
*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 –
This morning many of the world’s leading bourses were negative. Not largely so, but simply negative.
At the SMC – as Bank of Ireland (Ticker: IRE) shareholders – we were watchful as to how the stock would handle the 5 NOTCH Moody’s credit rating of Ireland. Normally such a dramatic change would drive a stock with such a central role in the country down significantly. BUT in this case, the Bank of Ireland closed down -$0.13 or -4.9%. It could have been much, much worse. Needless to say, Ireland and the Bank of Ireland are on the ropes. That’s why the stock sells for $2.55/share today.
Click here to see the detail on Moody’s AND what the Moody’s BAA1 rating means. In summary BAA1 means – Moody judges obligations rated Baa to be “moderate credit risk”. They are considered medium-grade and as such “protective elements may be lacking or may be characteristically unreliable”
We simply know this – it’s darkest before the dawn. At the SMC, we may need to quickly sell if investors give up hope. We know that $2.45/share from the other day is an important line in the sand.
This isn’t a popularity contest. We have invested and so far made strong gains on a significant, pivotal enterprise in Ireland that has been scorned.
Here’s a note today from Moody’s analyst Dietmar Hornung that has our attention – “Ireland has managed high levels of indebtedness in the past and has shown political cohesion and commitment to enacting difficult fiscal consolidation measures,” Hornung said. “The government is making considerable investments in its banking system that might ultimately generate income.”
In Ireland, they call entrepreneurial risk-takers “Chancers”…
– Story-Stock Investing –
Zagg Inc. (Ticker: ZAGG) sagged below $8.00/share today. Here’s what we wrote yesterday, “We need to see a repeat attempt for the stock to get above $8.60/share with some conviction and push higher without sellers coming along to take their profits, before we re-establish our position. Currently there is a seller or sellers up in the mid to high $8/share which need to be satisfied before or IF the stock can move higher.”
A drug company – InterMune, Inc. gapped up +120% today and increased those gains modestly on news of the European equivalent of the FDA Advisory Committee – The Committee for Medicinal Products for Human Use (CHMP) (Yes – that’s CHIMP without the “I”) – gave the go ahead for the single drug in their pipeline. Here’s the skinny on that one. We’ll keep an eye on it and see if we can get an entry.
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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 counsel 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 may hold 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) |
| 1 | Bank of Ireland | IRE | Holding | 11/29/2010 “Add To” on 12/6/2010 |
+32% |
| 2 | Cisco Systems Inc. | CSCO | Raised Stop Today to $19.31 | 12/13/2010 | -2% |
– Stock Market Companion – Performance –
Please click on this chart to see the Stock Market Companion 15MinuteStocks stock performance versus the SP-500. It will open in a separate browser window.
* Gains (losses) do not include brokerage fees. Our returns are very strong … BUT … WE have to remind everyone just like all other financial sites in America – Past Performance is No Guarantee of Future Returns. Unlike others however, our objective is to teach you to be able to make these types of strong returns On Your Own.
All of the investments – stocks, entries, and exits are listed on our Stock Market Companion Watchlist at the bottom of the spreadsheet, in the section labelled Former Holdings.
– Benchmarks “At a Glance” –
US Dollar |
1.3186 USD = 1 Euro |
USD / EUR |
Dollar = Flat |
Gold |
$1,379.20 |
Ounce |
Gold = Flat/UP |
Oil |
$88.21 |
Barrel (West Texas Crude) |
Oil = Flat |
30 Yr. Fixed Mortgage |
5.00% |
Percent |
UP |
10 Yr. Bond Yield |
3.33 |
Percent |
Flat |
1 Yr. CD |
1.36 |
Percent |
Flat |
Data Source : Financial Visualizations Inc.
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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