-Executive Summary-

• The broader market (SP-500) and the DOW (DJ 30) were able to scratch their way into positive territory today.  The tech-laden NASDAQ closed again lower for the day.
• Large U.S. banks are attracting interest down at significant lows. Earlier today, shares in Bank of America (BAC $10.97) was still being sold hard, but investors stepped-up this afternoon to bid the shares higher. Click here for an article that got our attention this late afternoon on BAC.
• The STOP in our modest SMC holding Research in Motion (RIMM $36.20) came within 1 penny of being triggered today.  We’ll see what tomorrow brings.  When we purchased the reduced shares last Thursday, we were hoping for a sudden push higher.  We got a little that same day, but selling has knocked the stock back down.  With earnings approaching this Thursday, we are NOT going to open up our stop.  We are going to hold firm.
• 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	-3%

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	1,271.83	Index	FLAT = +.85 points
DOW-30	11,952.97	Index	FLAT= +1.06 points
NASDAQ	2,639.69	Index	Down = -4.04 points
NASDAQ 100	2,222.28	Index	FLAT = +1.19 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 –

Initially, the markets were unable to attract investors even at relatively weak levels today.   The old adage “Sell in May and go away”, referring to the equities markets in the days when participants would leave for their summer residences – and not the modern environment of global electronic investing, appears this year to be rather pertinent.  These near term uncertainties are keeping investors on the sidelines –

1. The  U.S. government debt and when and to what degree and under which conditions the U.S. congress may increase the debt ceiling
2. Concerns of slowing in the global economy

As of late, the U.S. dollar has been marching higher as globally, investors have lost their appetite for risk.  You may rightly ask – “Isn’t it risky to hold U.S. dollar assets, considering the wobbly fiscal condition of the U.S. government and our large national debt?”  From certain perspectives, it is risky – however large investors have relatively few choices when moving very large quantities of money.  Lately they have decided that they would rather be holding U.S. dollars than than the euro or equities.

Influencing market action today was a pull-back in the U.S. dollar.  Even though the dollar was a bit weaker today, crude oil sold off as did precious metals.  This is indicative of concerns of a global slowdown in growth.

The Timberland Co. (Ticker: TBL) was solicited for acquisition today by VF Corp (owner of Wrangler…) – at an approx. +44% premium to Friday’s selling price.  Stock buyers in April above $43.50/share are still underwater on their investment.

– Story-Stock Investing –

For those who didn’t get a chance to glance through our 15Minute Market Update on Friday, we mentioned this about Zagg, Inc. (Ticker: ZAGG)

Today, in the face of strong selling in the markets 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	1.4402 USD = 1 Euro	USD / EUR	Dollar = Down a bit.
Gold	$1,518.20	Ounce	Gold = Down.
Oil	$96.78	Barrel (West Texas Crude)	Oil = Down
30 Yr. Fixed Mortgage	4.69%	Percent	Flat
10 Yr. Bond Yield	2.99	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.

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