– The Stock Market Companion –

15MinuteStocks

Market Update

March 3, 2011

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

Published all Market Days
Monthly Subscription $29.95

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-Executive Summary-

  • Hot Hot!  The market rose strongly in the face of higher oil prices as the initial jobless claims data released by the federal government confirmed a downward trend heading below 400,000 for the week over the last weeks.   The U.S. dollar weakened further.
  • We are not opposed to entering this market if the stocks that have our attention show a desire to press higher.  Stay tuned.  Silicon Image Inc. (Ticker: SIMG $9.36) recovered well today but validated the importance of giving a stock time to show its hand after an important announcement like yesterday.  See below.
  • Click here to see our latest Stock Market Companion Video Update – How to Time the Market – which we posted on YouTube.  We cover one aspect of timing the market that we hope you will find very useful for years to come.

– 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

1,330.97

Index

UP = +22.53 points

DOW-30

12,258.20

Index

UP = +191.40 points

NASDAQ

2,798.74

Index

UP = +50.67 points

NASDAQ 100

2,371.76

Index

UP = +44.99 points

– Market Trends –

Trend

SP-500

DJ-30

NASDAQ

NASDAQ 100

Short Term

Down/Flat

Down/Flat

Down/Flat

Down/Flat

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 –

We mentioned yesterday that the markets were acting resilient.  Today’s +191.40 point UP move in the DOW (DJ-30) sure supports that conclusion.  The primary catalyst for today’s move was jobless claims data released today (On Thursday’s the government releases last week’s new jobless claims numbers = those seeking assistance for the first time last week) showing a decline of jobless claimants for last week to well below 400,000 and IMPORTANTLY bringing the 4-week moving average to 388,500.  For economists, the 400,000 line is a line in the sand concerning jobless benefits.  As the economy strengthens and the WEEKLY jobless claim data begins to show a downward trend and drops below 400,000 economists identify this as a very positive trend for the economy.

Here’s what we are thinking about as we sit back and review various aspects of the market –

  • Market tops are often punctuated with high range Up and Down movement.  -180, +190 …
  • The Federal Reserve’s bond buying program is still “on” and encouraging investment in stocks.
  • Many stocks are not over-priced and some new stories are emerging that we really like (EBAY, SIMG, INTC, …)
  • We’ve had several geo-political events that in other times would have sent the markets crashing down… but they have stayed stable.  Some individual stocks have corrected off their highs… some of them quite significantly.
  • There’s room in almost any climate for new story stocks to materialize and multiply in value, as long as the market remains “predictable”.
  • European Central Bank Chairman has spoken rather hawkish about raising rates … while keeping the rate on the Euro at +1%.
  • Increasing signs of stability in the U.S. economy – like today’s possible confirmation in a downward trend in jobless claims – could cause the U.S. Federal Reserve to raise rates sooner than many expect.  Even a quarter point change would send a clear signal to the markets and perhaps cause stocks to jitter.
  • Earnings at U.S. corporations are very good.
  • There’s more for us to write … but the family is waiting for me for dinner.  God bless you all.

– Story-Stock Investing –

Yesterday we reported on Silicon Image Inc. (Ticker: SIMG $9.36/share) and wrote this –

“Here’s an important one that we will purchase on a move above $9.98/share – Silicon Image Inc. (Ticker: SIMG $9.66/share).  It’s close now.  Today, Steve Jobs unveiled the new iPad 2.  According to Briefing.com, the new iPad will have an accessory that supports HDMI (High Definition Multimedia Interface) – which allows for the iPad to be extended onto a separate monitor.

We called the Apple store to confirm this and they are quite excited about this feature add-on because many people have complained about the lack of this functionality.  This means that all applications on the iPad will now be able to be presented on a separate screen.

The developer and marketer of this technology is Silicon Image Inc.  The stock moved UP +21% on this news today, but it is still selling for less than $10/share.

Silicon Image Inc. (SIMG) has just 78 million shares outstanding and a float (shares available to the public) of 73 million shares.  So it can really move if institutions get behind it.

With Apple Inc. announcing its adoption of this HDMI standard for mobile devices, others manufacturers may follow.”

For us, our desire for an entry at around $10/share kept us out of trouble today as the stock sold down into the mid-$8/share range, BUT THEN RECOVERED STRONGLY and pushed back up towards $9.60 and closed at $9.36/share.  Whew.  OK.  The chart is not as tight as we like, but the catalyst of being included now in Apple’s product line is VERY SIGNIFICANT.  We are very attentive to this one.

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)

– 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

1.3955 USD = 1 Euro

USD / EUR

Dollar = Down BIG

Gold

$1,418.00

Ounce

Gold = Down a bit

Oil

$102.10

Barrel (West Texas Crude)

Oil = Flat

30 Yr. Fixed Mortgage

4.87%

Percent

Down a Bit

10 Yr. Bond Yield

3.572

Percent

UP sharply

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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