-Executive Summary-

• BOUNCE!  … But NOT SAFE.  See more below…
• Intel Corp. (Ticker: INTC) announced a design FLAW in its notebook SUPPORT (as opposed to the main micro-processor) chip… BUT INCREASES revenue forecast. Stock has sold-off more from Friday’s close.  We like the late day volume on today’s move in the low $21’s and the fact that the stock has stabilized into the close.  Look, we like this stock – Here’s why:  Big stock repurchase plan announced last week, very strong revenue AND profits AND margins from the last quarter’s show a strong business, it’s not gone anywhere in a long while, management is excellent and hungry to increase shareholder value, company announces higher expectations today for the quarter, AND McAfee acquisition is going to start helping bottom line too.  BUT the background market needs to be more stable or predictable before we re-engage.  It won’t take much of a nudge to get us back on board this one.
• Check out our note and chart on Motorola Mobility Holdings … 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 this chart of the broader market (Successful stock investors develop and start with a minds-eye view of the broader market and keep it clear) –

1. SMC SP-500 ETF Daily Chart (Click to open helpful chart in a separate browser window).

– Today’s Highlights –

On Friday, we wrote this about events in the Middle East HEAVILY influencing our markets –

THEN CAME THE HAMMER.  Information started to filter in about increasing unrest in Egypt focused on President Mubarak’s government.  Egypt controls the Suez Canal which is a key transport piece related to crude oil coming out of the Middle East.  Egypt also has the largest Arab population.  Any significant change in government –  for instance (in worst case) if the Muslim Brotherhood came into power – would be disastrous for stability in the Middle East.

The market began to drop hard as investors began receiving news about the escalation of this unrest in Egypt.   The fact is that no one knows what the ultimate outcome will be in Egypt and with the weekend ahead – offering plenty of time for things to get out of hand –  and after such a strong run in the market, there was immediate profit taking taking place.

The markets have quieted today ONLY MODESTLY concerning events in Egypt.  Energy stocks are the key drivers in the market today.  Previous market leading stocks – Ford Motor Co. (F), Apple Inc. (AAPL), Chipotle Mexican Grill (CMG), Amazon.com (AMZN), Nvidia (NVDA) … have each either pulled back significantly or are in uncertain holding patterns.  One notable exception is Netflix (NFLX) which advanced further today (see below).

Until there is resolution in Egypt, the stock markets remain susceptible to further down-drafts driven by fear and profit-taking.   Except for possible energy stock investments – such as Patriot Coal (PCX) or investments in ETF’s that profit when the markets diminish in value – like the Rydex Ultra-short SP-500 Fund (SDS), other stock investments involving growth stocks or favorable transformational events at individual companies – face strong headwinds.

– Story-Stock Investing –

On Friday afternoon, we exited all stock investments.  That meant selling holdings in Intel Corp. (INTC) and YRC Worldwide (YRCW).  Today, Intel announced that there was a glitch in one of their notebook processor chips that were shipped after January 9th and that will need to be replaced – at an estimated cost of $1 billion for the company.  Intel still guided their first quarter earnings higher –

“Despite the setback, Intel raised its overall revenue outlook for the first quarter because of the recent acquisition of the phone-chip business of Infineon Technologies AG. It also expects to complete the acquisition of McAfee by the end of the first quarter.”

We remain bullish on Intel Corp. (INTC), however we are glad to currently be on the sidelines and able to determine a new entry for the stock when the background market is suitable for investing long in stocks (buying stocks).

We also remain vigilant concerning any and all opportunities and are weighing things against current geo-political risk and possible rapid resolution or further deterioration.

Motorola Mobility Holdings Inc. (Ticker: MMI) is the new business unit and publicly traded stock related specifically to Motorola’s wireless products.  They STOLE THE SHOW at the Consumer Electronics Show in LasVegas in January with their Android based phone and iPad competing product.  BUT look at what happened to the stock before the show and after.

Look HERE at the Stock Market Companion Daily Chart of MMI…

There was a good entry, but we left it alone and now we are glad we did.  We are watchful for a safe entry off a solid consolidation.  Last week MMI disappointed investors with a luke-warm outlook – which is confusing to everyone who understood the strength of their product base displayed at the consumer show.  No matter how good the story SOUNDS, we always NEED THE STOCK CHART TO BE IN AGREEMENT AND NOT TOO WIDE AND LOOSE for a good entry.

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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

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