-Executive Summary-

• FLAT!  Everyone is holding their breath concerning the ultimate outcome in Libya. The tech sector was a bit divergent with the broader market, with semiconductors losing a little of their recent strength.  See more below.
• SMC holding Ford Motor Co. (Ticker: F) and other stocks of interest did not gain any traction today.  In fact, Ford lost a bit of its luster… but it wasn’t alone.  GM (GM) was down too today.  Toyota (TM) was flat.
• Check out our SMC Investor Quiz “Question for Today” – which we challenge you with below.  The answer is not difficult and it reveals an important concept for successful investing.
• 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 –

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 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 –

Uncertainty remains the key word for the markets as Mr. Ghadaffi plays out his cards in Libya, sending a messenger to Egypt and his own surprise visit to journalists in a Tripoli hotel.

We know from yesterday that OPEC and separately Saudi Arabia on its own (although also the leading member of OPEC) stated that supply of crude is not in jeopardy.  We know that there are limits to that argument, but something really drastic would need to take place to negate that claim.  Of course, unrest could also occur in Saudi Arabia.

Somewhere along the line, we read yesterday that famous investor George Soros predicted that U.S. federal government budget cutting will snap the recovery.  At the SMC we say – we need to get used to taking some medicine now in order to avoid giving a mortally sick patient to our children.  Oil prices – leading to higher fuel prices at the pump – are also bringing on headwinds for the economy.  Retail stocks are all well off their highs.  Here’s a good example of trouble in the retail space = Urban Outfitters (Ticker: URBN) plunged yesterday -18% on missed earnings.  O.K.  You can rightfully say, “Urban Outfitters is a niche retailer, and not an indicator of the broad retail landscape.”  Here’s a retailer that represents the broader retail landscape = Target Inc. (TGT).  Target  is -15% off its early January 2011 highs.

– Story-Stock Investing –

– 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.

Answer to today’s SMC Investor Quiz “Question for Today” –

Even on Valentine’s Day, we don’t fall in love with a stock! The stock in question is that of company Finisar Corp. (Ticker: FNSR).  At the Stock Market Companion we take all of our profits before earnings are released on a stock that has had such a strong run in such a short period of time.  In this case, we would have taken our profits at the latest yesterday (March 8th) at around $40/share.  We teach that we can always try to find a suitable entry later.  A +90% return in 3 months is fantastic and should be taken without question.   Some investors may choose to leave a “runner-on” – meaning that they leave a little bit of money on the table just in case the stock shoots higher.  We say “OK” to that, as long as we take 90% of ALL our money off the table.  From time-to-time we may leave 5-10% of our initial investment “ON” as a “runner”.

In the case of Finisar (FNSR), the company guided future earnings lower and the stock plunged today to approx. $25/share.  The original investment at approx. $22/share is still profitable, but a pittance compared to what would have been made selling the stock before earnings at approx. $40/share.

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.

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