-Executive Summary-

• “A bit lower”… AGAIN.  Yesterday’s news about retail sales for December was a disappointment.  Today the problem is the U.S. Bureau of Labor Non-Farm Payroll Report and a “Not so small” problem for banks …See below.
• The Stock Market Companion SOLD it’s entire stock of Bank of Ireland today and issued an SMC Intra-Day ALERT.  See more below.
• Zagg Inc. (Ticker: ZAGG) moved UP higher into the close… 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 –

Today was a big day for the market for these reasons –

1. The U.S. government Bureau of Labor reported Non-Farm Payrolls for December  that were in stark contrast to the ADP report from earlier this week.  It was a disappointment … The market didn’t like it and sold off some..

2. The Massachusetts Supreme Court ruled against Wells Fargo and US Bank concerning two house foreclosures – BECAUSE the banks didn’t prove that they owned the mortgages!  It is uncertain how the banks are going to proceed with foreclosures on properties where the mortgages have been re-packaged by “securitization” and sold as investments.  Normally, you could expect the market to have absolutely IMPLODED on this news, BUT it didn’t.  In fact, Wells Fargo stock was down a modest -2.1%.  That’s NOTHING compared to the possible significance of this news.

So what’s going on?  Why didn’t the banks plummet?  A lot has to do with earnings and earnings expectations.  It may just be that the banks are doing well enough from an earnings standpoint that they can wallow through the uncertainties of this situation and not take too large a hit on earnings.  It may also be that this ruling today doesn’t put so much into question after all.

For us at the SMC, what’s interesting is that given the significance of these two events above – both of them disappointments from an investors standpoint – the broader market and secondary markets were down ONLY -0.2%.  This gives you an idea that – at least today – there is not very much fear in the markets.

Sometimes the market takes a day or two before the real response to significant news evident.

– Story-Stock Investing –

Today we let sold all of our SMC holdings of the Bank of Ireland (Ticker: IRE) stock and issued this SMC Intra-Day Alert –

Dear Subscriber-Friend –

At the SMC, we have sold ALL our shares in the Bank of Ireland at $2.36/share.  We don’t like how the stock is behaving today AND we don’t like this UNCERTAINTY about “undefined radical strategies”.

We could have written off today’s weakness in the Bank of Ireland stock to be associated with the broader weakness today in financial stocks in general, but the more we dig, the more we find too much stacked against our investment in IRE at this time.  We are prepared to change our mind and get back on board if / when things become clearer or if we see big money participation in the stock.

Our cumulative break-even on this investment was +22%…. in a little over a month!  We have higher hopes for IRE, but at this time it is simply too unwise to keep our large exposure on this one at the SMC.

For your protection and our own, we would like to remind everyone that this is not an investment recommendation for any particular individual.  We cannot possibly know the risk tolerance and investment suitability of such investments for any particular subscriber. Successful investors know their own objectives, purposes, and risks associated with any investment – whether in real estate, stocks, or other investments.  Each investor is on their own.

We are simply reporting the SMC actions in the market place.

Your – Stock Market Companion

Concerning IRE, it’s hard for us to imagine “radical strategies” being favorable at this time for common stock shareholders.  We will however continue to watch out on this one.

We like how Zagg Inc (ZAGG) closed above $9.04/share today into the close.   Closing positive on a modestly down day for the market is a bullish sign for this small/micro-cap stock.   Stocks in small companies often magnify broader market moves – so a -4% down day for Zagg today was entirely possible.  It moved higher instead.  Let’s make this real clear however – Zagg is a consumer electronics accessories manufacturer – and as such movements in these types of stocks can be enormous – BUT they are rarely lasting.   We are not falling in love with this stock.  If or when this stock makes an extended move higher – we will not hesitate to take our profits.  ZAGG is not the next Qualcomm or Apple Inc.  … BUT it can make a big move.

SMC Watchlist Stocks – ZIXI Corp. (ZIXI) and Dendreon (DNDN) are looking significantly better today.

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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 –

– 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” –

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.