• Markets modestly weak.  The broader market is navigating its 50 day moving average in price and consolidating early year gains.  S&P 500 (-.41%), DOW (-.63%), NASDAQ (-.37%)
  

 

• 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. The U.S. broader equity market (S&P 500) is bouncing around near its 50 day moving average in price.  As we have written over the past days, the S&P 500 ETF chart that we show below, shows strong support for the markets at 135.  The markets may test that level before market participants decide what to do next. 

• Today we reflect on the idea of Apple, Inc. executives moving into other leading business roles at other American companies like J.C. Penney.  We talk about this NOT because this is a problem for Apple (we believe that Apple has a “deep bench” of excellent leaders), but because this will hopefully have FAR REACHING positive influence on American businesses for the next generation.  We contrast these leaders with the more – may we say “self-interested” leaders like Mr. Bob Nardelli who came from the school of GE’s Mr. Jack Welch.   We are not here to “pick on” Mr. Nardelli – but rather to highlight what may be something of great significance to investors who can catch “wind” of a new, well positioned leader at a company whose board made a great decision – like J.S. Penney’s board may have. 

• Retailer Wet Seal, Inc. (WTSLA) has a CEO – Susan McGalla – who has been on board since Jan. 2011.  She comes with 14 years of experience from American Eagle Outfitters.  From WTSLA’s own Press Release last year … “Ms. McGalla joins the Company after her 14-year tenure with American Eagle Outfitters, Inc. She most recently served as its president and chief merchandising officer, leading a portfolio of four brands reaching customers ranging across the children’s, teen and young contemporary demographic spaces. Ms. McGalla served in key roles throughout American Eagle Outfitters’ high-growth era, a period during which that company grew to nearly 1,100 stores and $3.0 billion in annual revenue.”  Although we personally like more conservative clothing, we reflect on this possible POSITIVE development in our S.I.M.P.L.E. Stock Investing section below.  WTSLA shares sell for $3.47 now.
  

 
• Please let us know if you would like us to perform a S.I.M.P.L.E. Stock Investing Method analysis on a stock that has your interest.  Support@stockmarketcompanion.com
  

 

• 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	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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