-Executive Summary-

• The markets moved a bit higher again today, BUT couldn’t hold the morning highs.  See our observations below.
• At the SMC we purchased a Very Modest holding in Nexxus Lighting Inc. (Ticker: NEXS) at $4.10/share.  We have our stop in at around $2.87/share, in order to give the stock some room to breathe.  Please see our SMC Intra-Day Alert below.
• Here’s our first Stock Market Companion Customer Testimony video.  We are very grateful to “Everett” and “Mike” for their generous offer of their personal testimony and time yesterday for our video shoot.  THANK YOU, Everett and Mike!  Thanks also to OTM Video Productions for their excellent work.
  

– 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 –

The G-7 is the group of finance ministers from the leading 7 industrial nations.  The G-7 announced a coordinated effort today to WEAKEN the YEN.   If you wanted to weaken the Yen against the U.S. dollar, you would buy dollars and sell Yen.  Today, the U.S. dollar DID NOT DO what you would expect – instead of marching higher – it went down to December 2009 lows.  The Yen did come down in price and the Euro strengthened.

Remember, we have said at the Stock Market Companion – the Federal Reserve wants a cheaper U.S. dollar in order to equalize the trade imbalance in Asia.  Their plan is working.

Here are some other observations –

The situation in Japan is just as unclear today as it was yesterday.

In Germany this early morning, we noticed that their industrial giant = Siemens = was UP quite a bit.  We have kept a close eye on our U.S. equivalent = General Electric to see if there may be an opportunity in the wings.  We have in the back of our mind that the GE CEO did buy a fair number of shares at $21/share a few weeks ago.  Some early buyers were putting a bid under the GE stock this morning, pushing it up towards $19.70/share, but stock sold off throughout the afternoon and is now at approx. $19.25/share.

Apple Inc. is getting little support today as concerns of Steven Jobs health continue to spread.

Oil is up in price, offsetting the drop in value of the U.S. dollar.

U.S. Shoe and Sportswear market leader Nike (Ticker: NKE) had their stock dumped today on yesterday’s disappointing earnings call.  Nike is a great company – but the stock is taking it in the chops today.  In less than a month, the stock has dropped from approx. $90 to today’s $77 and change.  A little over a week ago we talked about how retail stocks are taking heat.  Nike is another example.

We were asked about YRC Worldwide (Ticker: YRCW) today as the stock bounced +20% off yesterday’s low of approx. $1.47/share on bankruptcy concerns.  Here is the Reuters.com article identifying on Wednesday some of the trouble at YRCW.  Today we weren’t too excited about the stock – even though it was selling yesterday at a pre-split equivalent price of 0.08/share.  Here’s why –

1. Last year we had the “goodwill” or favorable tailwind in the stock as investors were not yet clear to what degree the improving shipping rates, re-negotiated labor agreement, pension obligation settlements, and asset sales would POSITIVELY impact the company.  The stock was bid higher as certain positive outcomes for the company were in the realm of possibility.  Now however, those events and the momentary benefits for the company have become clear and factored in.
2. As of this mid-morning today – there were comparatively few people nibbling on the stock.  At that time this morning about 2/3 fewer investors were interested today at a share price that was less than half the price that attracted a lot of interest a year ago.
3. The company’s CEO and CFO have both left the company in the last 9 months.
4. Last year we “felt the TUG” on the stock twice.  The “tug” is what we call the moment when we can be reasonably sure that an intermediate bottom is in or a significant breakout occurs.  We don’t want this to sound anything special – Just ask a lifelong fisherman when he “knows” he has a fish nibbling on his hook.  We’ve had it over the past 18 months several times = YRCW at 0.36/share and again at 0.17/share; FORD at $8.01/share, $10.90/share, and $13.95/share; STEC at $12.90/share; Apple Inc. at $215/share; Dendreon on the breakout above $30/share … etc …

– Story-Stock Investing –

We tracked down the story on a strong runner  this morning Nexxus Lighting, Inc.   The stock is up approx. 50% today.

For those who are interested, here is their 2009 annual report.  We don’t have their 2010 yet.  It’s a good read for anyone so inclined as we are, and for those who are using our work here as a teaching tool for family members.  Their growth strategy starts on page 6 and their balance sheet is on page 38.

We sent out this SMC Intra-Day Alert concerning Nexxus Lighting (Ticker: NEXS) –

– 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

** 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.