-Executive Summary-

• Higher.  The markets moved favorably today … see below.
• +$10 Billion!  Intel announced repurchasing $10 billion of their stock … see below.

This Stock Market Companion 15MinuteStocks Market Update is a powerful tool designed to help you make money in the stock market.  It’s web-based, therefore available wherever and whenever you are.  It is your essential link to the markets, delivers a broad to narrow summary of important market and company specific conditions and events, and prepares you to be ready for actionable ideas.  We show you when/where we put our own money to work… and when/where we take our profits/losses.  Please see our short (2 minute) website videos for more information.

– 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 –

The markets closed favorably today, with many stocks moving higher off their multi-day lows.  OK.

We continue to observe and evaluate.  Let’s talk about what we are seeing –

1. Apple Inc.  – Americans aren’t the only ones who own Apple Inc. stock.   Overseas investors also must weigh out the considerations as to whether Mr. Steve Jobs will ever come back to run the company, whether the company’s momentum can continue in his absence, and what the stock would do if he dies.  As uncomfortable as it is to discuss things like this, we have to face the reality.  It felt like mutual funds and other institutional investors on Friday decided that they would prefer to not be holding the stock in the event of a tragic announcement.   This makes sense – their clients would be wondering why they had held onto the stock after such an impressive run in order to scratch a bit more return at the risk of the stock taking a -10% or more hit if something tragic was reported.

Today however, Businessweek’s overview of Apple Inc. this weekend and the suggestion that it can very likely continue its momentum for the foreseeable future emboldened investors and got them focused again on Apple’s strong earnings momentum and device adoption rate.

2. Saudi Arabia announced today that they may be pumping more oil in order to meet additional worldwide demand.  Friends, we haven’t heard about additional worldwide demand in quite a while, so such words are an encouragement for those who see global business in a favorable light.  At the Stock Market Companion, we fall in this category.  Double-dip recessions don’t start with oil producers declaring that demand is expanding.  Of course conditions can change rapidly, so we remain vigilant and try not to overstay any particular course based on an underlying bias that requires adjustment.

Crude oil prices dropped hard today on the idea that supply will perhaps soon be expanded to meet anticipated additional demand.

3. The U.S. dollar remained flat today.

4. Over in Ireland, Mr. Prime Minister Cowen appears to be content shooting himself repeatedly in the foot. We would certainly appreciate clearer sailing when it comes to the Bank of Ireland.  The stock is quiet here and we are currently not on-board.

– Story-Stock Investing –

A subscriber friend mentioned today that he appreciated very much being completely on the side-lines now with his investments.  He also mentioned that Level3 Communications Inc.  (Ticker: LVLT) was looking better today.  We agree.

Another subscriber friend asked for our impression of HerbaLife (HLF) stock.  After last week’s aggressive sell-off the stock is currently what we would identify as “no-mans land” – and susceptible for further stock price depreciation.  At the SMC, we would have to wait for this stock to push above $70/share before we would be interested in an investment.

Intel Corp. (INTC) announced a $10 billion stock repurchase plan today.  (ie. available for investment) $10 billion / $21.2 (today’s share price) = approx. 472 million shares to be repurchased.  472 million / 5.5 billion shares currently representing the “float” of the stock = +8.6% stock repurchase plan.  All things being equal (which they often are NOT), the stock price should over time move +8.6% to accommodate this news.

The last time we had a large semi-conductor manufacturer make this kind of announcement the stock moved approx. +39% – this was Texas Instruments (TXN) and their announcement was an approx.  +25% re-purchase plan on 9/16/10.  A 39% move is excellent AND also coincided with a strong market rally.

While we may not have as strong of market tailwind as TXN enjoyed, we believe that Intel’s announcement should move the stock higher – although there is significant concern of whether Intel has missed the mobile market, compared to NVIDIA Inc. (NVDA).  To give you an idea of what INTC looks like from a technical (stock price) perspective, here is a Stock Market Companion daily chart of Intel Corporation with our comments on it ….

NVDIA moved higher today on favorable news.  If NVDA appears to be able to hold its vertical move, we may venture on board.  The momentum here is significant.  We prefer however to catch moves like this much earlier.

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

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 –

AS of 1/19/2011, the Stock Market Companion is entirely in cash.

– 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.