– The Stock Market Companion –
15MinuteStocks
Market Update
March 7, 2011
—— Stock Market Investing since the 1980’s ——
Published all Market Days
Monthly Subscription $29.95
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-Executive Summary-
- Down Again! The markets are under pressure by the steady increase in unrest and oil prices resulting from conflict in the Middle East. See more below.
- Special “Thank You” to subscriber-friend “Cathy” who encouraged us on our service AND recommended that we move our “Current Holdings” table to just below the Executive Summary. We’ve done so and we like it. Please let us know by email what you would like to see different at support@stockmarketcompanion.com. We want to make this the best tool possible for you to make money and KEEP IT in the Stock Market.
- When you can, check out this new Stock Market Companion Video Update – Make Money and Reduce Risk (3 Steps for investing successfully in a turnaround) which we posted on YouTube. These three steps have made us a lot of money in stock investing over the years.
– Stock Market Companion – Current Holdings –
| Nr. | Co. | Ticker | Action | Entry Date | Current Gain (Loss) |
If the above “Current Holdings” table is empty it means that we are not holding ANY stocks at this time and that we are therefore 100% in cash.
– 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 |
1,310.13 |
Index |
DOWN = -11.02 points |
DOW-30 |
12,090.03 |
Index |
DOWN = -79.85 points |
NASDAQ |
2,745.63 |
Index |
DOWN = -39.04 points |
NASDAQ 100 |
2,387.07 |
Index |
DOWN = -31.89 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 –
All eyes are on the price of oil and gasoline.
Here’s what to like about the markets –
- With the S&P 500 having recovered significantly off the March 2009 lows, people are willing to consider stocks again. BUT financial service companies and individuals like Bernie Madoff and others have led people to the CORRECT conclusion that they must have a more hands-ON understanding of what is going on in the markets. This was our premise in creating the Stock Market Companion.
- Stock investing is becoming more acceptable again, as the effects of low interest rates are pushing investors of all kinds to think of more profitable ways to invest their money.
- Corporate earnings are in many, many cases excellent.
- There are growth stock stories that will continue to emerge and make money for people who are attentive.
- So far the markets have been pretty resilient in the face of crisis. If anything happens to the government of a large oil producing nation (like Saudi Arabia), this resilience will end.
- The Federal Reserve has implemented a very accommodating monetary policy that is controversial, BUT helping the markets.
Some Federal Reserve Open Market Committee voting members like Mr. Fisher are coming out clearly stating that this accommodative stance must soon change. Click here for today’s comments by Mr. Fisher. - The markets are by and large functioning correctly – rewarding companies with excellent forward looking earnings and neglecting and punishing those which don’t have excellent earnings.
- The U.S. congress has a stronger conservative force that may be politically able to address issues that will make the U.S. more competitive in the future and improve the future financial prosperity of our nation. This will support investment in America.
Here’s what we don’t like about the markets –
- The markets have advanced strongly without much of a pull-back, allowing for profit taking and establishing a higher base from which to establish the next trend.
- Uncertainty in the Middle East is primarily keeping us on the sidelines.
- As the U.S. government begins to evaluate how to limit the government involvement in mortgages, there may be turbulence in the markets.
- The markets will need to navigate through changes in Federal Reserve monetary policy at some point, when rates are adjusted higher.
- The markets are continuously at risk of a ratings agency readjusting the AAA rating DOWNWARD of America’s Treasury Bonds, as we wrestle with our unfunded liabilities on a national level. This risk has been with us for a long time, but last years budget deficit and recent decisions by the U.S. government have perhaps brought this possible outcome closer.
– Story-Stock Investing –
The RAPID increase in oil prices has basically placed a large warning sign on the stock market. Our key to success is to be invested in the stocks of excellent companies when the background markets are FAVORABLE or – at least – stable. With crude oil now above $105/barrel, concerns being raised about whether there will be American ground troops used in Libya, and whether Saudi Arabia will have some form of unrest is keeping us very quiet.
We don’t know if this trouble in the Arab speaking world is going to spread further. We DO KNOW that one of the greatest advantages for an individual stock investor is to be in the market when it is favorable and be out of the market when it is not favorable. We apply this principle rigorously at the Stock Market Companion.
Recent, SUCCESSFUL Stock Market Companion stock selections – The ones which we bought, held until it was no longer prudent for us personally to hold them, and sold for good gains from the past few months have been getting hammered with the rest of the market.
Ford Motor Co. (Ticker: F $14.01) – which we sold at $18.19 is now at $14.01/share. That’s a -23% hit from our sell-point.
Cisco Systems Inc. (CSCO $18.20) – which we sold at 20.82 is now at $18.20/share. That’s a -12.5% hit from our sell-point .
And the list goes on.
Millions of people believe what financial service companies have told their investors over two generations = that you cannot time the market. We believe otherwise and our results prove it.
Early on in the creation of the Stock Market Companion, I asked my father who lives 3 time zones away if he would describe what his experience has been working with me over many years in stock investing. He thought about it and came up with something I didn’t expect.
I thought that he was going to mention some of the great ideas and strong profits that we’ve had over many years and concepts that he had learned and and and. Nope. Instead he wrote me a short email a few days later that said, “When Eric say’s to “Sell” and I don’t do it, I generally regret it.”
From time to time, subscribers are presented with this wonderful saying that a dear, wealthy friend told me long ago about a rich man being asked how he had become so successful, to which the rich man replied, “From selling too soon.” I don’t think that we can repeat that one enough.
If the selling of Ford Motor Stock (F) gets severe enough and we see a volume wave of buyers, we will get on board too for a nice bounce. This type of bounce play is easiest when there is real selling that drops the stock hard enough to get bargain hunters interested. It’s harder when the stock simply dribbles downward and you can’t discern noticeable buying interest. The stock is then always susceptible to that final, brief plunge that gets the early bargain hunters hurt.
Blessings to you all.
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 – 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 |
1.3971 USD = 1 Euro |
USD / EUR |
Dollar = Flat |
Gold |
$1,436.50 |
Ounce |
Gold = Higher |
Oil |
$105.26 |
Barrel (West Texas Crude) |
Oil = UP MORE |
30 Yr. Fixed Mortgage |
4.87% |
Percent |
Down a Bit |
10 Yr. Bond Yield |
3.497 |
Percent |
UP |
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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