-Executive Summary-

• Flat to lower.  The markets closed lower as the recent move higher off intermediate lows is digested.
• American automotive stocks weaker – GM more so than Ford.  See more below.
• Here’s our first Stock Market Companion Customer Testimony video.  THANK YOU, Everett!  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 equities markets were relatively quiet today.  The energy markets were stimulated with continued uncertainties surrounding the Middle East.

Oil (West Texas Intermediate) closed at approx. $105/barrel, up $2.50 from yesterday’s close.

– Story-Stock Investing –

American auto manufacturing stocks Ford Motor Co. (Ticker: F $14.34) and General Motors (GM $30.74) slipped today as the reality of production schedule reductions took root, due to supply chain disruptions caused by the tsunami, and consequences thereof, in Japan.  Another step lower in the Ford stock – driven by concerns for earnings erosion – may offer the SMC an attractive buy point for the stock.

Former Stock Market Companion holding, China Shen Zhou Mining (Ticker: SHZ $4.48) rose strongly today on the back of hot “rare earth” commodity stock movements.  BUT there is this news out on the company that keeps us cautious.  When we did our research on the company in December, which led to our purchase on 12/28 and exit two days later on 12/30 for a +54% return, we wrote explicitly that we were dependent on accurate financial information from the company.   As stock market investors, we are always dependent on the quality of financial information that we are working with, but in this case we highlighted this fact specifically, when we almost never mention this.  Why?  Because micro-cap companies and particularly those with “far-out” foreign addresses like this one – Chinese company with operations in Mongolia – may have not been subject to the regular due-diligence of other stocks “closer to home”.  Think about how much effort would be required to check the accuracy of the financials of a Chinese company with mining operations in Mongolia.  We are reliant on the good faith of the company to post accurate information, and it’s in their best interest to do so.  However in the case of “SHZ”, there is cause for concern.

In the last 10 years we have experienced several Chinese companies that been aggressively sold, and or de-listed due to false financial statements. Click here for a recent one – RINO.  The destruction in share price was severe.

– 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.