– The Stock Market Companion –

15MinuteStocks

Market Update

December 22, 2010

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

Published all Market Days
Monthly Subscription $29.95

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-Executive Summary-

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

1,258.84

Index

UP = +4.24 points

DOW-30

11,559.49

Index

UP = +26.33 points

NASDAQ

2,671.48

Index

UP = +3.87 points

NASDAQ 100

2,235.91

Index

UP = +1.34points

– 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 –

The markets floated higher again today.  The low volume is leaving the impression in our minds that the market is a bit stretched.  Due to the holiday season however, we are left with the same uncertainty as others as to whether a bit more “backing and filling” is necessary to support higher prices in the new year.

Gross domestic product (GDP) numbers were released for the U.S. for the 3rd quarter 2010, representing an annual rate of +2.6%.  O.K.  The markets looked favorably on this number, if for no other reason than there were no surprises.

We’ve added 4 short videos (about 2 minutes each) to the Stock Market Companion website to provide a bit more of an understanding of what we are all about.  You can check them out here when your schedule allows… These videos help answer questions like –

1. What do I receive with my subscription?

2. What is Story Stock Investing?

3. How do we use Story Stock Investing to invest in stocks?

4. Why should I invest in stocks in this economy?

We will be ramping-up video production and hopefully webinars in the new year to help you see what we are seeing in the markets and help you make money.

– Story-Stock Investing –

There are certain times of the year that it is best to “sit on our hands” and not over-engage the market.  This is one of those times.

We are watching Ford Motor Co. (Ticker: F) as it navigates this $17/share threshold.  We need a buyable pullback on American International Group (AIG) and AK Steel (AKS).

AK Steel has announced several price increases and has signaled strengthening demand over the past week.

We don’t like how the Bank of Ireland (IRE) is simply sitting on support and not moving higher when there is noticeable strength in our domestic financial stocks like Bank of America (BAC) and American International Group.  On the other hand, there is a striking similarity in the price pattern of Deutsche Bank (DB) and the Bank of Ireland (IRE).  Allied Irish Banks (AIB) is moving lower.

My father called the other day to mention that YRC Worldwide (Ticker: YRCW) appeared on the move again and ask our take on it.   Since our big move in July on the stock – which we sold at a very strong profit (+104%!) -the stock basically gave all its ground back after a reverse stock split.  Part of the problem has been uncertainty as to whether the new contract that YRCW negotiated with the union was in conflict with broader industry-wide agreements.  A competitor ABF Freight System Inc. brought forth a lawsuit, which was dismissed this week.

We don’t think that there is a whole lot of hope left in a major turn-around at YRCW.  That hope evaporated as the increasing shipping volumes that we saw late last winter dried up and further financing questions surfaced at YRCW.  On the other hand, the stock price pattern looks pretty good here and YRCW is continuing to communicate about a Comprehensive Plan. We learned a long time ago that it is wise to keep old ideas in the field of vision, while looking for new ones.  Warren Buffett made his early money investing in companies that were like burned out cigarettes – but with one puff left in ’em!

It may be also that the underlying expectation for a favorable first half of 2011 for the economy can lift transport stocks like YRCW.  We may pull the trigger on YRCW again.  There is a close in area of support that allows for a prudent stop to be placed on any investment.

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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 		+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

1.3116  USD = 1 Euro

USD / EUR

Dollar = Flat

Gold

$1,387.50

Ounce

Gold = Flat

Oil

$90.77

Barrel (West Texas Crude)

Oil = Flat / UP

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.

This late afternoon we celebrated Noelle’s 3rd Birthday …  Everyone had a great time.

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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