-Executive Summary-

• The markets were crushed today – initially by increasing uncertainty in Europe, related to Greece and a flight to the U.S. dollar from the euro.  Then, the Empire State Manufacturing index and Consumer Price Index data added their weight to convince investors to sell.  See more below.
• The broader market (S&P 500) closed very close to its 200 day exponential moving average AND very close to the market lows in March during the nuclear meltdown in Japan.  The last time it was at this line was early September last year.  The broader market has now erased this year’s gains.
• Today was a classic “bull-trap” – see below.
• IPO Pandora (Ticker: P) launched today and reached as high as $26/share just after the open. It closed at $17.42/share.  That’s a quick -33% loss for those gambling on IPO successes.  The stock must move UP +49% to recover the day’s loss in value.
• At Stock Market Companion, we are steering for a new Internet home page design.  Our transition to the new design may take place this evening.  Please don’t be surprised if you see a new web-page concept soon.
• 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)

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	1,265.42	Index	DOWN = -22.45 points
DOW-30	11,897.27	Index	DOWN= -178.84 points
NASDAQ	2,631.46	Index	DOWN = -47.26 points
NASDAQ 100	2,209.01	Index	DOWN = -41.33 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 –

Starting early today it was clear that the markets were in for trouble.  The triggering event was confusion and protests in Greece.  This is what we mentioned yesterday in our SMC Intra-Day Update – when we said, “

Sure, the market can continue to go down, and the most likely catalysts in our minds would be –

1. Sudden downgrade in U.S. treasuries to AA+ from AAA.  That would shake up the financial markets in general.
2. U.S. government mis-steps.
3. Geo-political event.
4. Stronger negative data on the condition of the economy

People are asking, “How can one small country have such a significant impact on the market?”  The answer is simple – Uncertainty over a resolution of the financial trouble in Greece puts pressure on the European currency the “euro” and makes investors more concerned about the overall indebtedness of sovereign nations – like Ireland, Portugal, Spain, and even the U.S.   The result is – Investors quickly pull their money from higher yielding, more risky, liquid markets like stocks and purchase lower yielding, less risky, and still liquid U.S. Treasuries.  When the euro decreases in value, the U.S. dollar increases in value and commodity denominated stocks like energy stocks and metals initially take a hit on days like today.  That puts an additional, initial drag on the U.S. markets.

The stock market CAN go up when the U.S. dollar increases in value, but currently the U.S. dollar is going UP because of a flight to less volatile investments than stocks – resulting in an Inverse Relationship between the stock market and the U.S. dollar.  An inverse relationship simply means that when one item moves in one direction, the other item moves in another – OPPOSITE direction.

Today we also had some more negative data on the U.S. economy – industrial utilization is modestly lower, the consumer price index (CPI) was HIGHER than expected, AND the Empire Manufacturing Index was a sharply negative -7.8 compared to an expected +12.0.  That’s a big difference.  Click Here for the report directly from the New York Federal Reserve Bank.

Of course, there were many investors buying into yesterday’s UP move – hoping to sell into a further, higher squeeze this morning – who were caught in a “bull-trap” immediately turned around sold what they purchased yesterday.  A bull-trap is a FALSE signal showing that a declining trend has reversed and heading higher.  Instead the market knifes sharply south, trapping those optimistic bulls in losing positions.  Our RIMM toe-in this last week was a bull-trap.

– Story-Stock Investing –

We are preparing for an upcoming conference presentation and need to both get this Market Update posted AND prepare our presentation materials.  We want to draw your attention to GMCR, which we mentioned yesterday.  The shares moved a bit higher today – in spite of the market.  Remember, they manufacture the K-cup, individual coffee packets.

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	1.4190 USD = 1 Euro	USD / EUR	Dollar = UP BIG
Gold	$1,527.40	Ounce	Gold = UP a little.
Oil	$95.36	Barrel (West Texas Crude)	Oil = DOWN
30 Yr. Fixed Mortgage	4.69%	Percent	Flat
10 Yr. Bond Yield	2.98	Percent	Down
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.