– The Stock Market Companion –

15Minute Market Update

June 6, 2011

—— Stock Market Investing since the 1980’s ——

Published all Market Days
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-Executive Summary-

  • The markets closed DOWN as individual stocks continue to bleed.  Bank of America (Ticker: BAC) broke through $11/share to the south and printed a new 52 week low.
  • There were no specific catalysts driving the markets today.  The U.S. dollar recovered a bit from its recent sharp pullback.
  • We cover ideas like Wal-Mart, Apple, Research in Motion and others, below.
  • Apple, Inc.’s world-wide developers conference started today and Steve Jobs was “out in front” – what a great company!  The shares however were sold-off today in the market place.
  • We’re glad to be in cash as the market comes a bit more unglued.  We are looking for some upcoming “bounce” opportunities.  The SPY (S&P 500 ETF) is coming down to the lower edge of its lateral channel, rapidly.  There maybe a bounce here soon.  HPQ, RIMM, and maybe BAC… are some of many possible bounce candidates.  Meanwhile we are enjoying seeing how emerging growth stories like ZAGG or possibly FCEL are handling the market pull-back.
  • Today marks the 67th anniversary of D-Day in Normandy, France.  “Thank you” to our veterans and those serving our country today.
  • Please give us your feedback at support@stockmarketcompanion.com.

– Stock Market Companion – Current Holdings –

Nr. Co. Ticker Action Entry Date Current Gain (Loss)

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

1,300.16

Index

Down = -13.99 points

DOW-30

12,151.26

Index

Down = -61.30 points

NASDAQ

2,732.78

Index

Down =-30.22 points

NASDAQ 100

2,274.48

Index

Down = -27.33 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 –

For the markets there were two things absent today –

  1. There were not ANY significant economic reports released to give the market direction.
  2. Buyers.  There were very few buyers as stocks continued to sag by the “weight of the market”.

Apple, Inc. (Ticker: AAPL) hosted their world wide developers conference, where Steve Jobs (Apple CEO) took the stage.  We’ll cover some of the more interesting aspects of this below in our SMC Story-Stock section.

Precious metals recovered a bit this morning and held onto their gains – modestly.  At the same time the U.S. dollar appears that it may be putting in a “higher-low” – but nothing is clear at the moment.

American Society of Clinical Oncology continued with their annual meeting in Chicago.  This is often a good place for us to hunt for interesting stories related to pharmaceutical companies.

– Story-Stock Investing –

This weekend we caught an article about WalMart developing this smaller store model – Walmart Express.  Here’s a brief article which covers the details well.  For a company like WalMart, something like a roll-out of the Walmart Express IS innovative.  We are attentive to this.  We covered WalMart in detail in our Friday, June 3 edition of the Stock Market Companion 15Minute Market Update.

WalMart shares moved above $54/share today, but couldn’t hold the move.  Friday’s news of WalMart’s big $15 billion share repurchase program attracted buyers this morning.  We’ll see what tomorrow brings.  Ideas like the Walmart Express, combined with new leadership at the company, their share repurchase program, and their plans to increase products at the regular stores may warm us up to the story.  Innovation in the retail space often takes the shape of something like “Walmart Express”.

Today Apple’s big world wide developers conference was significant for the company, but Apple shares sold off once the event started.  Hmmm.  Apple shares closed at the end of December at approx. $322/share.  Today the shares closed at $338.04 and they are weaker in after hours trading.  That’s only a +4.9% gain on the shares for the year.  At the Stock Market Companion, we purchased Apple shares on the 3rd of January this year on a nice breakout and sold them for a +3.4% profit a few weeks later as the uncertainty around Steve Jobs health was bringing on turbulence.  We like the company and expect it to move higher at some point in time, but not now.  It may need to move lower to attract more investor interest.  A share split would certainly help attract retail investors.

We read today that there have been 24 million iPads sold in 14 months.  That’s approx. 69,000/day or 1.7 million / month.  That’s great news.

The Apple iCloud development is good.  Apple is offering 5 GB of storage on the web and the files sync automatically at the end of the day to store the latest version in the iCloud.

We read also that there are now 54 million Mac users.  We think that more iPhone customers will become iPad or Mac users in the years ahead.

The stock market however is not currently positively inclined toward Apple shares and unless they go on sale sharply, we will not hold the shares until the market improves and there is a clear catalyst moving the stock and the technicals suggest buying.

Today, Research in Motion shares gapped-down to new 52 week lows.  We are attentive to this one as they confirmed FY2012 earnings at $7.50/share, while reducing guidance for the current quarter.  Many analysts and the news are negative on RIMM.  We too would not want to have to get up every day to compete with Apple, Inc., and Google.  Nonetheless, we are attentive to RIMM.  The shares are down approx. -46% in 3.5 months and could put in a bounce.  If RIMM were to hold those forecast earnings, then their forward P/E is roughly 5.2.  That’s pretty cheap – as long as they can hold onto market share.

We read today that Office Depot is rolling out ZAGG, Inc. (Ticker: ZAGG) products.  We are keeping a close eye on ZAGG.

FCEL shares held on reasonably well today.

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 counsel 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 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

1.4572 USD = 1 Euro

USD / EUR

Dollar = UP a bit.

Gold

$1,544.10

Ounce

Gold = Flat

Oil

$98.86

Barrel (West Texas Crude)

Oil = Down some.

30 Yr. Fixed Mortgage

4.69%

Percent

Flat

10 Yr. Bond Yield

3

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.

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