• Globally, the equities markets were DOWN BIG today!  S&P 500 (-2.40%); DOW (-2.22%); NASDAQ (-2.82%)

• Market Overview = FEAR is now entering the market, leading to quite possibly strong irrational moves.  The market has – at least for the moment – entered the realm of unpredictability.   The broader market looks like it may re-test the $125 line on the S&P 500 (SPY), which would be a -50% retracement of the entire six month rally off the October 4, 2011 lows.  With fear and irrationality come OPPORTUNITY for those willing to step forward when the market is bleak.  We will be ready.   Click here for today’s SMC S&P 500 (ETF SPY) chart

• With today’s decisive break to the south of the SPY $130 line, and now landing BELOW  the broader market (S&P 500) 200 day moving average (200 MA), the markets COULD bounce aggressively higher on Monday / Tuesday – once participants come to the realization that the world is not coming to an end, or selling may continue until it exhausts itself.  One thing is certain, selling is nowhere near exhaustion levels at this time.  The fact however that STILL 60,000 jobs were added to the economy and the IDEA that the Federal Reserve could implement more stimulus, may at some point cause buyers to step forward and purchase shares of excellent companies that are oversold – like FORD (F) , GM, Hewlett Packard (HPQ), Freeport McMoran (FCX), US Steel (X), Alcoa (AA), Dell (DELL) .

• We made 3 Successful Investing Videos today profiling the market and reviewing many individual company stocks…  Please click on these links to watch them –
  Successful Investing Video 1, Video 2, and Video 3

• We transmitted our SMC Intra-Day Alert on our plan to immediately sell our holdings of Ford and Alcoa, and raised 100% cash.

• Although the market could abruptly swing higher on Monday, the market has now entered a realm of strong unpredictability.

• If the market continues to sell-off, there will be excellent opportunities for outstanding returns when the market reverses.  We are now watchful for a key, upside reversal day – preferably after some REAL exhaustion selling

• Arena Pharmaceutical (ARNA $6.50) held its own today and was quiet in the face of the market’s big slide.  The shares are showing excellent relative strength.
  

• 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 …

– 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.
  
• Please click here to send us your feedback.  Let us know how we

Categories: Archives, Daily Updates
Tags:

Comments are closed.