-Executive Summary-

• UP!  The equity markets moved higher in a broad-based “relief rally” that unfortunately lacked PUNCH (volume).  See more below.
• The European Central Bank (ECB) signaled increasing rates ahead, but not now (maybe in July).
• At SMC we purchased a quarter-position (5%) worth of Research in Motion (Ticker: RIMM $37.60) shares at $37.35/share.  Our stop is at $35.89 – just below today’s low of $36.08 and tucked-in under the $36.00 round number.  We sent out our SMC Intra-Day Alert on the purchase.   Click here for your SMC Daily Chart of RIMM. See more below.
• Please click here to send us your feedback.  Let us know how we are doing – We are here to serve you.  Support@Stockmarketcompanion.com

• 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	Research in Motion	RIMM	Purchased Today	6/9/2011	+/- 0%

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	1,289.00	Index	UP = +9.44 points
DOW-30	12,124.36	Index	UP = +75.42 points
NASDAQ	2,684.87	Index	UP = +9.49 points
NASDAQ 100	2,256.65	Index	UP = +3.76 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 –

Relief Rally!  (Please see our Story-Stock section for more on “relief rallies”) This early morning the equities markets opened modestly higher.   Over in the financial sector, large national banks like JP Morgan-Chase, Wells Fargo, and Bank of America quickly put in strong jumps in price immediately at the open – but volume was very low.  These three banks finished the day in the green, with Wells Fargo in the lead with a +3.39% move over yesterday’s close.  JP Morgan-Chase and Bank of America closed +1.46% and +1.04% higher.

The technology sector was very lackluster, following Texas Instrument’s (TXN) somewhat disappointing earnings results were reported last night.  TXN managed to close positive today, but Apple Inc. (AAPL) closed in the red.

Stocks that have been roughed-up significantly over the past 5 weeks (while we have been shorting silver, raising cash and watching from the sidelines), were able to brush-up a bit.  Volume today was very uninspiring.

Early on we were attentive to action in Research in Motion’s (Ticker: RIMM) shares.  Please see our Story-Stock section below for more details.

The single most influential event today for the financial markets was the European Central Bank’s declaration that they would likely INCREASE interest rates at their next meeting in July, while leaving rates unchanged today.  This put a brake on the U.S. dollar’s upward thrust today – BUT – the greenback still closed higher today than yesterday. At this point, the U.S. dollar has put in a higher low this week and appears positioned to move higher – unless speculators decide in favor of the euro and the benefits of a possible rate hike in July.  The next few days will make this clearer.

Corn prices surged as USDA inventory information showed -22% drop!

For the moment, the selling in equities has subsided.  We’ll simply have to see if the markets can hold today’s gains.  Here are a few observations –

1. Volume was very low, therefore today’s move has a strongly tentative feel to it.
2. Gains were broad based, with the tech sector under performing.
3. Basic material stocks were in the lead today.

– Story-Stock Investing –

Today we sent out these SMC Intra-Day Alerts –

SMC Intra-Day Alert #1 –

Dear Subscriber-Friend –

This morning, the market is displaying the first signs of what may become what we call a “relief rally”.  Instead of a final high volume capitulation marked by a grand finale of selling that leads to a change in short AND intermediate term trend, a relief rally often starts with sellers simply not selling any lower and a gradual increase in buyers coming in to test the “thickness of the ice”, engaging stocks with modest purchases.

Relief rallies can also lead to changes in trend as buyers increase their participation over a few days and sellers retreat into the woods, but more often than not they lead to a reduction in selling pressure and a gradual run-up in share prices that is hammered again sharply by a return of sellers still desiring to take their money, new lows driven by the market, and early buyers wondering why they needed to get into the market again so quickly and wishing that they had waited.

That being said, those who are nimble can use relief rallies to their advantage by buying early enough to catch 5% – 10% moves, and being ready to sell their shares quickly on sudden strength.  Importantly, they are not lured into thinking about holding their shares longer than a few days, because they know that early buyers will often be tested with hard moves by the market down to near new lows – resulting in a “higher low” which is then “buyable again” or into new lows as the market seeks final capitulation selling over time and grinds out each new wave of early buyers.

Of note this morning –

1. Strong “tech” stocks like Apple (AAPL) and Netflix (NFLX) are attracting NO buyers as of yet and are still sitting in the red.  Research in Motion (RIMM)  is now sitting positive for the day, up a dollar off its lows.  RIMM may offer nimble investors a good choice.
2. Possibly “over-sold” financials like JP Morgan Chase (JPM) and Bank of America (BAC) are getting a little interest, but not much.
3. The market is not attracting much volume at all today, even after the relatively aggressive selling that we have seen over the last 5.5 weeks.

At the SMC, we are going to nibble on a quarter position (4-6% of our investment capital) of RIMM on a break above $37.30 and would not consider any price higher than $37.65.  The low of the day is $36.08, so we will tuck our stop in at $35.89 – below the important round number of $36.

Our target for something like RIMM would be $39 to $40…

For your protection and our own, we would like to remind everyone that this is not an investment recommendation for any particular individual.  We cannot possibly know the risk tolerance and investment suitability of such investments for any particular subscriber. Successful investors know their own objectives, purposes, and risks associated with any investment – whether in real estate, stocks, or other investments.  Each investor is on their own.

We are simply reporting the SMC actions in the market place.

Your – Stock Market Companion

SMC Intra-Day Alert #2 –

Click here for an SMC Daily Chart of RIMM to go along with our earlier SMC Intra-Day Alert.

On a side note, we’ve heard from our banker friend and SMC subscriber in Tacoma this morning who believes that the large U.S. banks are looking attractive now.  At SMC, we agree – but we aren’t seeing ANY volume come along yet.  We’ll see.

Perhaps what is most interesting in RIMM’s favor today is that two downgrades were not able to push the stock further down.  Tomorrow we will see more.

Microsoft lost an important patent case before the U.S. Supreme Court today.  At SMC, we believe that this case is very important to continue to foster innovation at small companies.  Click here for more details. We are certain that there are many investors and business people who – along with us at SMC – wish TIVO had been so fortunate against DISH.

Fusion-io, Inc. (Ticker: FIO) appeared to many to have rallied strongly in its first day of trading.  There was nothing there for retail investors today as the stock sold-off HARD from early morning highs as IPO investors cashed out.  FIO makes flash-memory based hard drives for network servers.

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	1.4506 USD = 1 Euro	USD / EUR	Dollar = UP
Gold	$1,545.20	Ounce	Gold = UP some.
Oil	$101.87	Barrel (West Texas Crude)	Oil = UP a buck.
30 Yr. Fixed Mortgage	4.69%	Percent	Flat
10 Yr. Bond Yield	3	Percent	UP a little.
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.

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