-Executive Summary-

• Markets could NOT attract buyers this morning and sank further before finding some support this afternoon.  The S&P 500 and DOW (DJ-30) closed DOWN for today again; the NASDAQ closed positive.  See below.
• Crude oil and gasoline inventory data was released today showing very strong inventory BUILD for both commodities.  Oil moved sharply down on the news due to valid concerns about forward weak demand.  This is yet another data point showing that the economy is slowing down and high fuel costs are causing people to drive less.  No surprise.
• May retail sales figures were released today and showed weakness.  One bright spot = Saks, Inc. (Saks 5th Ave.) (Ticker: SKS) Here’s an interesting read on SKS results.
• FCEL and other “Story-Stock” ideas, below.
• The Stock Market Companion is entirely in cash at this time – but may move into FCEL soon.  See below.

• Here is a video interview of a father and son using the Stock Market Companion successfully together – as a teaching and investing tool.
  

– Stock Market Companion – Current Holdings –

Nr.	Co.	Ticker	Action	Entry Date	Current Gain (Loss)
1	Cisco Systems,Inc.	CSCO	Sold Today (Reduced Size)	5-10-2011	-9.4% Final
2	Amarin Corp. PLC	AMRN	Sold Today	5-19-2011	+4.8% Final
3	Hewlett Packard Co.	HPQ	Sold Today	5/26/2011	+0.3% Final

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	1,312.94	Index	Down = -1.61 points
DOW-30	12,248.55	Index	Down = -41.59 points
NASDAQ	2,773.31	Index	UP =+4.12 points
NASDAQ 100	2,326.70	Index	UP = +4.22 points

– Market Trends –

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

Even in a healthy market environment, there are occasional sell-off days – when for a variety of reasons market participants begin selling a bit more aggressively, and that aggressive selling causes others to get nervous and sell.  Often, on the next morning after such days the stock futures are pointing higher, bargain hunters come, the sun comes out, more buyers show up and the market makes up for a majority of the previous day’s sell-off.  Not so today.  Bargain hunters showed-up this early morning and were chased away as sellers looked to exit holdings at marginally more favorable prices than yesterday.  The market rolled over until this late afternoon, when news came out that a deal had been reached to stabilize Greece’s immediate budget problems.  The U.S. dollar gave up its early morning strength and the market rose a bit.  The market rallied a bit into the close, with the DOW closing down approx. -40 pts. and the NASDAQ actually scurrying to a positive close at approx. +4 pts.  That was it.

Our markets and economy are advanced.  We are only in the second day of the month and retail sales figures for last month have already been consolidated by the various retailers and today were communicated to investors.  Sales were weak.  This is no surprise as consumer sentiment numbers have been a disappointment recently.

Banks have been getting punched in the nose as of late.  This morning was more of the same, but by the afternoon bargain hunters there too had pushed share prices more towards flat-line for the day.  It’s hard for us to get warmed up enough to  buy on this big dip on the financials, when we know that at some point the banks are going to have to mark-to-market the distressed properties on their balance sheets.  The capital that they raised a year ago has insulated them from doing so, so far.

Please click on this chart to see the Stock Market Companion 15Minute Market Update 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	1.4486 USD = 1 Euro	USD / EUR	Dollar = Flat
Gold	$1,534.70	Ounce	Gold = Flat
Oil	$100.72	Barrel (West Texas Crude)	Oil = Flat (but shaken around today)
30 Yr. Fixed Mortgage	4.69%	Percent	Flat
10 Yr. Bond Yield	3.03	Percent	Flat at lows.
1 Yr. CD	1.16	Percent	Flat

Data Source : Financial Visualizations Inc.

Please help us by sending your valuable feedback to – Support@stockmarketcompanion.com

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.