– The Stock Market Companion –

15MinuteStocks

Market Update

December 21, 2010

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

Published all Market Days
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-Executive Summary-

  • The markets continue to march gradually higher on low volume.  See more below.
  • Whereas yesterday the theme was Divergence, today the theme is Global Cooperation … See more below.
  • We’ve changed our SMC Market Trends table Short Term condition … Recognizing this steady, low volume rise in the market.

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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

1,254.60

Index

UP = +7.52 points

DOW-30

11,533.16

Index

UP = +55.03 points

NASDAQ

2,667.61

Index

UP = +18.05 points

NASDAQ 100

2,234.57

Index

UP = +11.53 points

– Market Trends –

Trend

SP-500

DJ-30

NASDAQ

NASDAQ 100

Short Term

*Lateral/UP*

*Lateral/UP*

*Lateral/UP*

*Lateral/UP*

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 –

Yesterday the theme in our minds was “divergence” –

1. Bank of Ireland (Ticker: IRE) debt not being downgraded and the stock moving higher vs. Allied Irish Bank (AIB) debt being downgraded and the stock moving lower.  As an investor in the Bank of Ireland, that was a divergence that we had been looking for.

2. Amazon.com (AMZN) moving to 52 week highs, while Wal-Mart (WMT) a bit weak and going nowhere.

Today the theme in our minds is – “cooperation and coordination” –

1. China – Headlines this early morning reported that China had stepped up to help with the European sovereign debt problem by buying bonds.

2. North Korea had chosen not to respond militarily to South Korea’s military exercises.  There was with certainty a lot of diplomacy taking place to achieve this outcome.

This cooperation and coordination theme also is very evident in today’s announcement by the U.S. Federal Reserve that they are extending the “temporary” dollar liquidity swap arrangements with the European Central Bank, and the central banks from Japan, Canada, Switzerland, and the U.K.

Decades-long trade imbalances, overspending by governments, asset bubbles… have all taken a tremendous toll and placed our world economy in a precarious state.   It will take lots of coordinated efforts – such as those mentioned above – combined with hard decisions, to establish a “new normal”.

During this time of heightened global coordination and increased U.S. Federal Reserve activities – designed to strengthen and improve global growth – we are on the hunt for excellent stock ideas.

– Story-Stock Investing –

Stocks are moving higher today – inching higher on low volume.  We are uncomfortable establishing new positions during this Christmas holiday season, unless there is a compelling reason – such as a high volume push, demonstrating strong institutional interest in a certain stock.  We aren’t getting this at this time.  We are seeing stocks floating in a low volume environment.

Compelling events may occur during this time.  RF MicroDevices (Ticker: RFMD), Ford Motor Co. (F), Motorola (MOT) are all looking excellent.  American International Group (AIG), Spreadtrum Communications (SPRD) are all too far advanced to establish safe entry.  These are all stocks from our SMC Watchlist.

These are strange times in which we have the need globally for such coordination as mentioned above.  We believe that this is an unusually favorable time to own stocks.  The Christmas season however needs to be handled carefully when considering new investments.

We would have liked a stock like Zagg Inc. (ZAGG) taking off on smart-phone accessory sales strength.  The Christmas season is ideal for low float, specialty retail stocks like Zagg – to do race higher.  But this hasn’t happened.

Patience is one of the keys to success in this work.

—————————————————————————————————————————————————

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 		+35%

2 Cisco Systems Inc. CSCO Holding 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

1.3098  USD = 1 Euro

USD / EUR

Dollar = UP

Gold

$1,388.80

Ounce

Gold = UP a bit

Oil

$90.02

Barrel (West Texas Crude)

Oil = Flat

30 Yr. Fixed Mortgage

5.00%

Percent

UP

10 Yr. Bond Yield

3.32

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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