– The Stock Market Companion –

15Minute Market Update

December 28, 2011

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

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-Executive Summary-

  • Sharply lower.  The markets hit clear resistance and caved-in today, as uncertainty in Europe continues to confuse and confound investors.  Volume today = Extremely low.  It is unwise to draw any conclusions from today’s market action in these thinly traded days between Christmas and New Year’s.
  • Market Overview = The market is in a confirmed uptrend since the October 4th pivot point that we identified at its inception and profited from.  Click here for today’s SMC S&P 500 (ETF) chart. A move below 118 on the SPY will again put this rally in jeopardy.  A move above 126.60 … will be favorable.
  • Keep an eye on the S&P 500 SPY ETF and a move above 126.60/127.10 and ultimately 129.42.  These are close-in resistance levels that the market has to successfully overcome to move significantly higher.
  • We highlight three stocks below with SMC charts and notes for each.
  • Italy was able to re-engage the bond market with sharply reduced yields.  The U.S. dollar increased further against the euro nonetheless.
  • We are interested in this year’s upcoming IPO (Initial Public Offering) schedule, particularly as it pertains to Facebook.
  • Please click here to send us your feedback.  Let us know how we are doing – We are here to serve you. Support@Stockmarketcompanion.com

– Stock Market Companion – Current Holdings –

Nr. Co. Ticker Action Entry Date Current Gain (Loss)
1 Gentiva Health GTIV Holding 11/15/2011 +12%
2 Boeing, Co. BA Holding 12/22/2011 -2%

GTIV – in our opinion – is no longer in buying range.  The move above $6.25 put it out of buying range.  In our opinion, Boeing (BA) is perhaps best purchased on a pull-back, although it is below our buy-point.

– 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 1,249.64 Index DOWN = -15.79 points
DOW-30 12,151.41 Index DOWN = -139.94 points
NASDAQ 2,589.98 Index DOWN = -35.22 points

 

– Market Trends –

 

Trend

SP-500

DJ-30

NASDAQ

Short Term Down Down Down
Intermediate Flat Flat Flat
Long Term 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) –

 

SMC SP-500 ETF Daily Chart (Please click on the chart to see a bigger, easy to read chart on a separate browser tab window).

 



 

– Today’s Highlights –

We provide you with continuous measures of the broader market using the S&P 500 ETF (Ticker: SPY).   This is your road-map which defines the condition of the market and gives you a clear idea if the environment is suitable for investing in stocks.

Successful investors know at all times the short, intermediate, and long term trend condition of the broader market.   From over 24 years of investing in the markets, we have found that this is the most efficient means of keeping a pulse on the market.  We have designed your SMC 15Minute Market Update so that within a few minutes you can stay in-step with the market.  Over time, SMC subscriber friends are able to engage the market with confidence based on this understanding of trend analysis.

It was this trend analysis that kept us out of trouble during the 2008-early 2009 financial crisis and that allowed us to achieve very strong returns in 2010.  This year, we have been able to beat the market again (but not by much).  This year, we simply avoided a lot of heartache – but not completely.  We also had several nice investment victories.

When you look at today’s SMC Daily S&P 500 ETF (Ticker: SPY) Chart, you will see that the market “jack-knifed” back down from the key resistance line that we have drawn boldly on your chart.  Volume increased a little over yesterday, but still volume is running only at about half of average daily volume.  So we caution anyone from making any conclusions from today’s action in the markets.  If today’s volume was significantly higher, we would expect more weakness to come.

The U.S. dollar rose in value against the euro today, even though the European markets breathed a sigh of relief with Italy being able to sell bonds at dramatically reduced rates from recent highs.

 

 

– Story-Stock Investing –

By the end of this year, we are going to expand this section to include a new structure and  format that we have developed to communicate much clearer and from different perspectives the relevance and emergence of new stocks.  We believe that you will like this approach very much and that it will positively influence your investing for years to come.  It will give you a very useful lens from which to see individual company stocks CLEARLY.   Stay tuned!

Here are three charts with notes to give you a picture of developments at some interesting companies.  Please click on each one separately to make them big and easy to read on a separate browser tab – automatically.

 


 




– Benchmarks “At a Glance” –

 

US Dollar

1.2903 USD = 1 Euro

USD / EUR

Dollar = UP

Gold

$1,556.10

Ounce

Gold =DOWN

Oil

$99.53

Barrel (West Texas Crude)

Oil = Down a bit from recent highs.

30 Yr. Fixed Mortgage

4.04%

Percent

Flat

10 Yr. Bond Yield

1.93%

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.  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.

  • The markets were AGAIN divergent today, just as yesterday revealing further weakness in the technology sector while the broader market (S&P 500) and the DOW (DJ-30) held POSITIVE.
  • Research in Motion (Ticker: RIMM $27.75) reported earnings last night that were a major disappointment.  We go through the details below.  The company received 2 broker upgrades going into earnings.  The stock then lost -21.45% from yesterday’s close into today.  We go through our steps in handling our brief investment in the stock this last week – AND WHY, below.
  • Crude oil continued to descend today, reflecting a drop in value of the U.S. dollar – BUT also  concern of future demand as the global economy slows down.
  • The S&P 500 is finding support at its 200 day exponential moving average.  If the broader market doesn’t find strength here and begins to sink further, the next near point of support is the low it plumbed during the recent nuclear crisis in Japan.  If it fails that point, then the intermediate term trend will be DOWN.
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