-Executive Summary-

• Higher!  The markets moved higher – led primarily by energy stocks.
• The market has transitioned from a confirmed up-trend to a lateral consolidation.  There are opportunities in lateral consolidations for strong stocks to emerge.  The end of quantitative easing (QEII) however, lies ahead at the end of June.
• Tech stocks are having difficulties.  Apple, Inc. erased its 2011 gains today.  It’s not good when the market leader is having trouble holding its value. See more below.
• Inflation!  Yes…But primarily in the developing world.  See more below.
• Bank of America = Terrible earnings today.
• Pharmaceutical and medical stock ideas.  See more below.
• Here’s our SECOND Stock Market Companion Customer Testimony video.
  

– Stock Market Companion – Current Holdings –

Nr.	Co.	Ticker	Action	Entry Date	Current Gain (Loss)
1	Nexxus Lighting	NEXS	Holding	3/18/2011	-22%
2	Dell Inc.	DELL	Holding	3/21/2011	+0%
3	Cisco Inc.	CSCO	Holding	4/6/2011	-5%
4	Ford Motor Co.	F	Holding	4/1/2011	-4%
5	China Shen Zhou Mining	SHZ	Holding	4/7/2011	+20%

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	1,319.68	Index	UP = +5.16 points
DOW-30	12,341.83	Index	UP = +56.68 points
NASDAQ	2,764.65	Index	Flat =+4.43 points
NASDAQ 100	2,307.58	Index	Flat = -3.67 points

– Market Trends –

Trend	SP-500	DJ-30	NASDAQ	NASDAQ 100
Short Term	Flat	Flat	Flat	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 –

Everyone is talking about INFLATION.  Let’s consider these data points released TODAY –

1. CHINA and the developing world IS EXPERIENCING inflation.  Today, China reported that prices increased +3.5% in March alone.

2. The USA and much of the first world IS NOT EXPERIENCING much inflation (aside from fuel and food – which is an argument that has its limitations when gas costs $3.80/gal at the pump and grocery costs are higher).  Today, the USA reported that the March core CPI (Consumer Price Index) rose +0.5%.

These data points are as clear as can be.  There is little inflation in the developed world (read: USA and EUROPE and elsewhere), and BIG inflation concerns in the developing world (read: CHINA and elsewhere).

Gold and silver prices are reflecting these two things –

1. Precious metals are acting as an inflation hedge by world-wide investors (not just developed world investors).

2. Lack of confidence in the U.S. dollar.

Quantitative easing by the U.S. Federal Reserve is scheduled to be finished by the end of June 2011. The U.S. Federal Reserve is NOT at all concerned with inflation right now, BUT has stated that they will move quickly if inflation becomes a risk.

The European Central Bank increased rates last week to +1.25% = NOT because there IS inflation there, but to SHOW that they are vigilant and ready should it appear.

Gold at $1,487.60/oz. is not a bargain – BUT it may still have upside.  Beware however, that simply “buying gold” at any price is not a good inflation hedge.  You want your inflation hedge to GO UP in price, and not already pricing in the risk or level of inflation expected – AND THEN – get nailed when interest rates go higher.

Stocks are priced where they are priced, BUT do not carry any premiums for growth at this time.  Please recall that many companies have made acquisitions at +30% to +75% premiums to existing market prices.

The Bank of America (Ticker: BAC) reported earnings this morning before the bell that were basically atrocious.  They would have lost money if they hadn’t been able to apply a credit towards earnings.

Google, Inc. (GOOG) reported earnings after the close last night that were a NEAR TERM disappointment.  Google shares lost a cool $47/share today.  That’s quite a response to Mr. Larry Page’s (Google Co-founder) first quarterly report presentation after taking over the reigns at the company from Mr. Eric Schmidt.

– Story-Stock Investing –

We continually monitor all sectors for signs of sector rotation.  We ARE seeing some strength in pharmaceuticals and medical stocks – as technology stocks show weakness.  This is why we are attentive to Dendreon, Inc. (DNDN), Impax Labs (IPXL), and Akorn, Inc. (AKRX).

Dendreon is quite strong and needs to settle down a bit.  Impax Labs got a downgrade today – due to anticipated earnings NOT matching 2010 levels. Akorn, Inc. is a cheap stock with lots of potential.  It’s price is $6.45/share.  We’ll report more next week on Akorn.

Dell, Inc. is where we purchased it, and Apple, Inc. (which we do not currently own) is DOWN again today and has erased all gains since January 2011.  That’s not very impressive action for the stock of a company that is the BEST IN CLASS.  We booked a +3.4% profit on Apple, Inc. on 1/19/2011 on the first sign of trouble in the Middle East.  We like Apple, Inc. stock – BUT we don’t like how tech stocks are behaving currently – Cisco Systems (CSCO) being a perfect example of our discontent.

We mentioned yesterday that we may warm up to airline stocks if oil prices head in the direction forecast by Goldman Sachs this week.  We are not yet seeing much interest in the sector – and oil marched right back higher today as gold and silver reached higher.  We mentioned yesterday that we would be interested in American Airlines (Ticker: AMR) on a move above $6/share.

Some time ago we mentioned that we were attentive to Motorola, which split its company in two segments – it’s legacy business and its Mobility Business in December.  We are interested in the Motorola Mobility business = Motorola Mobility Holdings, Inc. (Ticker: MMI).  They took the “Best of the Show” at the Consumer Electronics show in January.  At that time the MMI shares were at $36.34.  No one has been rewarded for their best in show award, as the shares have since steadily dropped now to $23.75/share = below their company split IPO price of around $24.50 in December.   Needless to say, some investors who purchased the shares on the news of their technology prowess at the show are disappointed.   Today the company received a broker upgrade… We’ll see.  Right now we are steering away from technology stocks as our attempts to make money there have been recently thwarted.  A 36% decline however now in the MMI share price and their strong product offerings may get us over our reluctance to purchase technology stocks.  Maybe.

As we approach the June time frame and the end of Quantitative Easing II, we may simply raise cash completely and exit the market for a while to see how the market responds without the Federal Reserve’s input.

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 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 council of a broker or other licensed investment professional for accurate pricing and concerning the suitability of all investments that you may be considering. Disclosure : 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.

– 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	1.4491 USD = 1 Euro	USD / EUR	Dollar = Down some.
Gold	$1,486.00	Ounce	Gold = Up at High’s Again.
Oil	$109.39	Barrel (West Texas Crude)	Oil = Up another $1.50/barrel.
30 Yr. Fixed Mortgage	4.85%	Percent	Flat
10 Yr. Bond Yield	3.41	Percent	Flat
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.