– The Stock Market Companion –

15MinuteStocks

Market Update

February 17, 2011

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

Published all Market Days
Monthly Subscription $29.95

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-Executive Summary-

  • UP some more! ….  The markets have advanced 10 out of the 13 market days in February.  For our comments on the sustainability of this rally … see more below.
  • The Stock Market Companion purchased shares in Intel Corp. (Ticker: INTC) at $22.04/share this afternoon.  We write more about this below, for those not yet on board and in response to an excellent question by subscriber-friend Gary.  In retrospect, we believe that we acted out of IMPATIENCE on this entry and should have waited for a clean break above the December 9th high of $22.07.
    Click here for today’s Stock Market Companion chart of Intel Corp. (INTC)

    In light of the unsustainable, continuous advance in the markets, combined with signs of political unraveling in the Arab world, AND high demands for liquidity in European intra-day lending – we will be ready at a moments notice to remove our Intel position and simply chalk it up to IMPATIENCE.  It is NOT WISE to chase the market.

    Please see our short (2 minute) website videos for more information.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.

– 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

1,340.43

Index

UP = +4.11 points

DOW-30

12,318.14

Index

UP = +29.97 points

NASDAQ

2,831.58

Index

UP = +6.02 points

NASDAQ 100

2,397.57

Index

Flat = -.37 points

– Market Trends –

Trend

SP-500

DJ-30

NASDAQ

NASDAQ 100

Short Term

Flat/UP

Flat/UP

Flat/UP

Flat/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 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 –

The broader market (SP-500) has ADVANCED on 10 of the 13 total market days in February.  The market is UP +4.2% for the month of February alone.  Friends, the only way that the market can sustain an uptrend is to at least pull-back some in order to chase out the “weak hands” and attract strong buyers at “higher-lows”, which provides a foundation for higher levels.

On the other hand (Didn’t President Harry Truman wish for a one-armed advisor?), this market may still push higher until it exhausts itself of buyers.

Market leading stocks like Apple Inc. (Ticker: AAPL), Netflix (NFLX), and Amazon.com (AMZN) did not advance today.

Materials stocks like AK Steel Corp. (Ticker: AKS) led the market higher today.  The silver ETF (exchange traded fund) is at multi-year highs.

Gold too is on the advance.


– Story-Stock Investing –

Twenty minutes or so before the closing bell we pulled the trigger on a purchase of Intel Corp. (Ticker: INTC) at a price of $22.04/share.  We like INTC for their –

1. Record setting earnings and revenue over the past quarters.

2. Aggressive stock-repurchase program.

3. Lack of participation (so far) in the market’s current rally. The stock is NOT overextended like many of its brethren.

4. Excellent management.

5. Re-investment in state of the art manufacturing facilities.

6. Stocks resilience in the face of bad news two weeks ago, related to their secondary chip set trouble in laptops – which is going to cost them a cool $1 billion or so on earnings.  The stock “blinked”, but didn’t break below $21.03/share.

Subscriber-Friend “Gary”, asks this very good question due to the unfortunate late arrival of the SMC Intra-Day Alert due to a delay at Mailchimp for executing the email –

Hi Eric,

I appreciate and fully agree with your caution in the current market.

One procedural question based on the earlier alert: Since the update came after the market closed, what do you recommend? Would you put in an order to execute when the market opens tomorrow? Or typically would you wait to see what happens when the market opens? (I want to put something in INTC. I waited for 22.07 and would expect it to advance more tomorrow from today’s close??)

“Gary”.

Here’s what we are thinking … At the Stock Market Companion, we believe very strongly in EXCELLENT entries as well as having a real REASON when buying stocks.  In terms of reasons for owning Intel, we have listed some of them above.  In terms of getting an excellent entry and in light of the market’s relentless advance, it may be that we JUMPED THE GUN on our INTC purchase this afternoon.  Ideally, we would like to see Intel push UP through its $22.07/share MULTI-MONTH high set on December 9th, before entering into the stock.

For those who are not yet in the stock (some subscribers may not have sold their INTC shares on the Egypt unrest), why not wait until Intel Corp. proves itself a bit with a break above $22.07?.  In other words, if we were in the situation of not already being in the stock, we would definitely wait until the dust clears following the opening bell and see if Intel is above $22.07/share and if the market is holding steady before entry.  In fact, we are going to keep our hand near the trigger to see if this is simply a head-fake by Intel and bide our time for a proper entry above $22.07.  As we write this note, I am more and more convicted of having acted out of IMPATIENCE this late afternoon.  Thank you for your excellent question.


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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 Intel Corp. INTC Purchased Today 2-17-2011 +/- 0

– 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

1.3613 USD = 1 Euro

USD / EUR

Dollar = Flat

Gold

$1,385.10

Ounce

Gold = UP

Oil

$86.43

Barrel (West Texas Crude)

Oil = UP

30 Yr. Fixed Mortgage

5.02%

Percent

Flat

10 Yr. Bond Yield

3.574

Percent

Down

1 Yr. CD

1.16

Percent

Flat

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.

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