– The Stock Market Companion –

15MinuteStocks

Market Update

December 20, 2010

—— Stock Market Investing since the 1980’s ——

Published all Market Days
Monthly Subscription $29.95

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-Executive Summary-

  • Participation is low on Wall Street as the Christmas season unfolds.  The markets closed flat to slightly higher.  See more below.
  • Bank of Ireland (Ticker: IRE) held up again well in the face of financial downgrades to other Irish financials like Allied Irish Bank.  The DIVERGENCE that we have been waiting for has now come to these two Irish banks … Bank of Ireland and Allied Irish Bank.  See more below.

Do you know someone who has a Roth IRA or traditional IRA that needs some real growth, or someone unhappy with their over-diversified mutual funds which get them nowhere yet keep them continuously at risk to the overall market? Share the great story of the Stock Market Companion with them.

– 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

1,247.08

Index

UP = +3.17 points

DOW-30

11,478.13

Index

Down = -13.78 points

NASDAQ

2,649.56

Index

UP = +6.59 points

NASDAQ 100

2,223.04

Index

UP = +4.75 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 –

Divergence!  But first a view of the landscape –

– The markets were holding their breath as South Korea pressed-on with their military exercises near its border with North Korea.  Asian markets were down.

– European markets were firm.

– U.S. markets closed flat to slightly higher.

There is markedly less activity on Wall Street this time of year.

– Story-Stock Investing –

Here’s the divergence that we would like to bring to your attention today.   It involves our SMC holding: the Bank of Ireland (Ticker: IRE) –

For most of the day the Bank of Ireland was trading in the green = UP from Friday’s close.  It finally closed flat for today on pretty strong volume of approx. 10.2 million shares.

Meanwhile, Allied Irish Banks (Ticker: AIB) closed down approx. -8%.

When we made our decision to invest in the Bank of Ireland on November 29th, it was our conclusion from our analysis that the Bank of Ireland was the better investment.  In the following days and now weeks, we were a bit surprised to find AIB moving also robustly higher – mostly in step with the Bank of Ireland.  That convergence in stock behavior was more than a bit disappointing for us.  IT WAS A WARNING SIGN.   We wanted to see the Bank of Ireland stock head firmly north and continue in an uptrend, and see AIB lag considerably.  It’s not that we have anything against AIB, it’s just that it has much more Irish government ownership and trouble.  If our decision to purchase stock in Bank of Ireland is going to prove a longer term success story, then there MUST at some point be a differentiation in these two stocks.

But we weren’t getting that differentiation … until today.

The Bank of Ireland stock held firmly today while AIB sank down farther on news that the bond rating agency Moody’s downgraded their rating on senior debt.

So far, with the Bank of Ireland stock being able to hold +/- 0 in the face of today’s news – the stock is handling things well.  That doesn’t mean that big sellers can’t come along tomorrow and decide that there is simply too much risk associated with the stock.  We’ll simply have to see.


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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 Holding 12/13/2010 -1%


– 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

1.3137  USD = 1 Euro

USD / EUR

Dollar = Flat

Gold

$1,384.80

Ounce

Gold = UP a bit

Oil

$89.28

Barrel (West Texas Crude)

Oil = Flat

30 Yr. Fixed Mortgage

5.00%

Percent

UP

10 Yr. Bond Yield

3.34

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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