• Today the markets were slightly DIVERGENT =  S&P 500 flat, the DOW a bit lower, and the NASDAQ Flat.  Wednesday 2/29’s gap-up DOWNSIDE REVERSAL no longer significant.  S&P 500 (+.11%), DOW (-0.15%), NASDAQ (-0.04%)
  

 

• 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 SPY) chart. So far, the uptrend is very much in tact.

 

• The DOW has pressed above 13,000.  This marks a very significant move in the market.  We have adjusted our trend table, below.  The market does not yet appear in any way exhausted, although pull-backs are always a possibility.  In the November time frame we thought about the 10 year or so bond rally that has taken place as now finished.  We are perhaps moving into a period of extended favor for equities (stocks).  Interest rates have nowhere to go but UP, which will pressure bond prices lower.
  

 

• Yesterday we announced our re-entry into our Ford Motor Co. investment at $12.98/share.    We are giving our investment in Ford a wide stop at $10.90. 

• Today we have some signs of a possible opportunity unfolding in the steel industry.  We made 2 SMC Successful Investing Videos to highlight what we are seeing.  The first video provides background information, and the second video provides more detail.    Here are the links =  Video 1;  Video 2

 

• The Federal Reserve Open Market Committee confirmed THIS WEEK its intentions to keep interest rates low (currently at 0.25%) until the end of 2014.  This is good for drawing money off the sidelines that are in under-performing investments and investing in equities (stocks).
  

 

• U.S. Bank stress test results were released THIS WEEK by the Federal Reserve.  The test results were very good and gave a real boost to financial stocks yesterday. Here is an excellent summary of what happened and what it means (Businessweek)

 

• Validating the increasing flow of money from under-performing areas (like bonds and CD’s), bond yields INCREASED as US Treasuries were sold and cash is moving (at least momentarily) into equities (stocks).  Notice that we track the 10 year bond yield in our Benchmarks at a Glance at the bottom of the 15Minute Market Update.  When the 10 year bond yield is on the rise, as it is now – that is a good barometer for fair weather for stocks.  PLEASE NOTICE ALSO that the 30 year fixed mortgage rate moves IN-STEP with the 10 Year Bond YIELD.  When the 10 Year Bond Yield Moves HIGHER

 

 

• Did you know that SMC members ALWAYS get 1 free month for each new paying member they recommend who joins our 15Minute Stocks Program?  It’s a great way to help friends and gives everyone something new to talk about!  Please feel free to contact us at 360-695-6985 or email support@stockmarketcompanion.com for a special, significant discount code to give them.

 

• 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 – ADVANCED INVESTOR OPPORTUNITIES –

We are introducing this section so that at SMC, we can “get out of the way” and let you decide for yourselves and not influence members so greatly with our own risk-tolerances and objectives at the time.  We WILL point out key characteristics that we think are important to consider, or logical areas to place stops or offer realistic targets based on our over two decades of investing experience, but we will be less inclined to judge these opportunities beyond that.  What we list in this section will be cover many dimensions:

• Growth stories following our successful S.I.M.P.L.E. investing method
• Unusual opportunities arising from oversold or overbought conditions
• Opportunities presenting themselves due to key technical developments in the shares (key support and resistance line engagement, high volume clues…)
• Stocks that offer excellent dividend yields and measurable risk
• Covered Call ideas
• Higher risk but possibly quite unique investment opportunties
• Excellent mutual funds and ETF ideas (including off-shore)

At this time, we are including this section in the SMC Basic Membership.  Our advisors may determine that these insights should be offered outside of the basic membership for a modest additional fee. That decision is for sometime later.  Let’s proceed …

Nr.	Introduction Date	% Gain or (Loss) (Introduction)	Co.	Ticker	Possible Opportunity NOW	STOP Level or Other Considerations	Possible TARGET	REWARD / Risk Ratio	S.I.M.P.L.E. Notes +
1	2/29/2012	-6%	Proshares Ultrashort SP 500 or QQQ	SDS or QID	Capture short term retracement in the market.	A stop just below today’s low.	5%-15%	6:1	No longer currently an opportunity for entry.  There was profit on the second and third day after this announcement of +4% ; that profit would have only be available for nimble investors.
2	3/7/2012	+/- 0%	Vermillion	VRML	WAIT for break above 3/6 highs for entry ($2.95)				With 12 Million shares outstanding, this company could possibly really run on news that its OVA1 test becomes a standard.

– Markets “At a Glance” –

• 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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