-Executive Summary-

• HIGHER.  The Dow (DJ-30) crossed above the 12,000 point line today, for the first time since the fall of 2008 – It closed however below this level.  The NASDAQ posted nice gains (again, thanks to Apple Inc. and Intel Corp)… see below.
• SMC Watchlist stocks Ford Motor Co. (F) and LVLT closed higher.  RF MicroDevices closed sharply lower  after beating earnings, but missing on revenues.   At this time we are not holding any of these stocks.  Our current single holding – Intel Corp.  advanced modestly today.
• We are always cautious, be we are doubly cautious at this time.  We still like stocks such as Ford and Apple …etc … but each of them could use with a few weeks of price discovery before advancing further.  What we want or what we would like to see however has no bearing on what the market is going to deliver.
• After hours, Netflix (NFLX) delivered excellent earnings and the stock is higher.  Starbucks (SBUX) disappointed investors and the stock is down in thin, after hours trading.

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 –

This afternoon, the Federal Reserve released its statement from the Federal Open Market Committee (FOMC) meeting over the past two days.  Many were surprised at the “softness” towards monetary policy coming forth from the meeting – in spite of modest economic growth.  The FOMC clearly has its eye very strongly focused on employment – or rather – the unchanging unemployment landscape. From the Federal Reserve website, here is the FOMC Press Release in its entirety (it’s a short read and important) –

Press Release

Information received since the Federal Open Market Committee met in December confirms that the economic recovery is continuing, though at a rate that has been insufficient to bring about a significant improvement in labor market conditions. Growth in household spending picked up late last year, but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit. Business spending on equipment and software is rising, while investment in nonresidential structures is still weak. Employers remain reluctant to add to payrolls. The housing sector continues to be depressed. Although commodity prices have risen, longer-term inflation expectations have remained stable, and measures of underlying inflation have been trending downward.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. Currently, the unemployment rate is elevated, and measures of underlying inflation are somewhat low, relative to levels that the Committee judges to be consistent, over the longer run, with its dual mandate. Although the Committee anticipates a gradual return to higher levels of resource utilization in a context of price stability, progress toward its objectives has been disappointingly slow.

To promote a stronger pace of economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate, the Committee decided today to continue expanding its holdings of securities as announced in November. In particular, the Committee is maintaining its existing policy of reinvesting principal payments from its securities holdings and intends to purchase $600 billion of longer-term Treasury securities by the end of the second quarter of 2011. The Committee will regularly review the pace of its securities purchases and the overall size of the asset-purchase program in light of incoming information and will adjust the program as needed to best foster maximum employment and price stability.

The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels for the federal funds rate for an extended period.

The Committee will continue to monitor the economic outlook and financial developments and will employ its policy tools as necessary to support the economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate.

After hours, both gold and crude oil are increasing in price as investors come to grips with the idea that the Federal Reserve is continuing with its purchases of $600 billion in treasuries.

Last night President Obama presented his State of the Union address.  Job creation and the economy was the primary focus.  We just have to see how things pan out in the U.S. Congress.  At the Stock Market Companion, we continue to suggest that jobs will be created when –

1. Indirect labor costs are reduced.

2. Companies are provided incentives to hire and manufacture in America.

3. Taxes are kept low.  However – low taxes without cuts in government spending is destructive.  Government must significantly cut expenses.

– Story-Stock Investing –

YRC Worldwide Inc. (Ticker: YRCW) came strong out of the gate today, but faltered and has taken back more than today’s gains.  We are keeping a close eye on it.

Level3 Communications (LVLT) firmed up a bit today.  It has announced some excellent contracts over the past few days for internet content delivery.  Its chart however is very choppy.  We like stock charts with tight consolidations that are predictable.

Stock Market Companion holding Intel Corp. (INTC) marched another +1% higher today.

The DOW (DJ-30) crossed up through the 12,000 point level today, but didn’t hold it.  Many market leading stocks have improved off last weeks lows, but are still below their highs – although the overall market has shown itself resilient.  We are cautious here.  Intel Corp. as an investment has made sense because it has lagged the market, and because they have –

1. Fantastic earnings.

2. Announced a significant stock buyback program.

3. There is room for the stock to “catch up” with the overall market.

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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.