-Executive Summary-

• The markets closed down MORE.  Selling was again strong today.  See details below.
• The U.S. dollar is moving higher.  We noted that the U.S. dollar had perhaps put in a higher low this week.  Precious metals, commodities, and oil moved lower.
• We cover Fuelcell Energy, Inc. (Ticker: FCEL $1.39)  See below.
• ZAGG Inc. (Ticker: ZAGG $11.63) closed at a 52 week high today.  We cover the details of this interesting story below.
• Apple, Inc. closed lower and ERASED this year’s gains for investors.  At SMC, we locked in our +3.4% gains on Apple on 1/19/2011 as the trouble in the Arab world began to escalate.  At the time +3.4% seemed meager, but we wanted to be on the sidelines as the geo-political troubles unfolded.  We were also unsure of how the Apple stock would ultimately respond to issues related to Steve Jobs health.  On extreme weakness we will be looking to re-position ourselves in the stock.
• 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	-2%

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	1,270.98	Index	Down = -18.05 points
DOW-30	11,951.01	Index	Down = -172.45 points
NASDAQ	2,643.73	Index	Down = -18.02 points
NASDAQ 100	2,221.09	Index	Down = -35.56 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 –

The equities markets experienced NO reprieve today from what felt at times like relentless selling.  This morning, we sent out this SMC Intra-Day UPDATE on what was happening in the markets-

Yesterday – as the market showed early signs of stabilization after the last 5.5 weeks of selling – at SMC we went ahead and entered a small investment in a highly oversold, yet very good company – Research in Motion (RIMM).   You can see both of our SMC Intra-Day Alerts related to our decision in yesterday evening’s SMC 15Minute Market Update.

This morning, instead of finding the market pushing gradually higher as more buyers step forward to purchase shares of quality stocks at discount prices, we find sellers again pushing the market south.

Here’s what is keeping the market from catching a spark –

1. French industrial production was weaker than expected – adding to the broad picture in our minds of a global slowdown in growth.  On the positive side of things, the German Bundesbank increased (very modestly) estimates in Germany for GDP.
2. On-going concerns about sovereign debt problems in Europe.
3. The U.S. dollar is marching higher – even though the European Central Bank yesterday gave a signal for a possible further interest rate increase in July.
4. Overall a lack of appetite for risk at the moment, due to concerns about  global economic conditions and specific uncertainties related to U.S. politicians and their ability to find the right path forward regarding fiscal policy.

We are cautious at this time about the markets, but optimistic of finding profitable opportunities ahead.

If the overall market can stabilize and the RIMM share price can move to yesterday’s mid-range – we may find ourselves quickly adding-to our position for a quick move higher in our favor.  Our stop remains fixed at $35.89/share.  RIMM reports earnings next week Thursday, June 16^th – after the close.  We probably will NOT hold our shares going into the close that day.  Our investment in RIMM is targeted for a short term bounce.

We found these articles this morning of particular interest related to world events –

1. US Secretary of Defense – Gates – Rebukes European allies.  Here Mr. Gates really puts his finger on significant issues.
2. The Saudi’s step UP oil production in OPPOSITION to OPEC.

Financial stocks had quite a day today when the Federal Reserve announced that they may “only” require a 2.2-2.5% buffer above current international (Basel) requirements of 7% reserve capital.  Financial stocks soared quickly on this news, BUT DID NOT finish at their high’s of the day.  We also noted today that the Fed may require large banks to perform yearly “stress-tests”.

The broader market (SP-500) closed at it’s lows for the day, but has since recovered a bit in after-hours trading.

– Story-Stock Investing –

Let’s quickly cover where Fuelcell Energy, Inc. (Ticker: FCEL) is today.  Last week shares of the stock shot higher as the company received their largest order EVER – Over a $100 million dollar order.  The shares reached $1.97/share – up from $1.34/share a week or so before and then on subsequent days – while the overall market was bouncing around – built a nice, quiet “pennant” formation.  We were attentive to this development and had notified you of our plan to purchase shares if / when they crossed $1.90 or so / share, on the way UP out of this formation.  That event never occurred.  Instead, the pennant resolved to the downside as the shares weakened with the overall market this last week.  The shares are now back down almost to where they came from at $1.39/share.   Click here for your SMC Daily Chart of FCEL showing a clear picture of what we were looking for and what happened.

Today, in the face of this strong selling ZAGG, Inc. shares SHOT higher (Ticker: ZAGG).  Here’s what we like –

1. Last 3 quarters of earnings look like this (most recent, first): $0.13, $0.13, $0.16/share.  Let’s say that ZAGG can hold $0.16/share, then the co’s current / trailing cumulative earnings / share is = $0.58.  Today the shares closed at $11.63.  Therefore the co’s p/e = 20 (approx.).  Notice how earnings per share is expanding.
2. Revenue grew 206% year over year for the last quarter reported.  That’s strong.  Paying a p/e of 20 for 206% growth can be very acceptable.
3. The company announced This Week receiving a patent for their clear plastic protective covering for smart phones and tablets.  How did they get a patent for that?  We don’t know, but they did.  They have apparently been working on it since 2006.  They may be able to press their competition for royalties or force them out of the market?
4. The Zaggmate case and keyboard for the iPad looked like it was ill-timed, when Apple came out with its own clever cover.  But it appears that sales are strong and ZAGG partnered with Logitech to manufacture / market this tool.  That’s good.  Logitech is known in the marketplace for QUALITY.
5. Zagg is expanding distribution channels of its plastic coverings for smart phones and tablet pc’s – well beyond BestBuy.  Excellent.
6. Zagg’s margins are obviously strong.  BUT the balance sheet shows inventory marching strongly higher and some new debt.
7. What is very interesting is that the stock has only 24.5 million shares outstanding, of which ONLY 17.6 are available to the investing community.  Of these, there 44% are sold SHORT !!

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	1.4345 USD = 1 Euro	USD / EUR	Dollar = UP Strongly
Gold	$1,529.20	Ounce	Gold = Down.
Oil	$98.92	Barrel (West Texas Crude)	Oil = Down
30 Yr. Fixed Mortgage	4.69%	Percent	Flat
10 Yr. Bond Yield	2.98	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.