• Today we experienced a whopper of a move higher for the markets!  S&P 500 (+2.49%); DOW (+2.20%); NASDAQ (+3%)

• Market Overview = The markets have moved to the UPPER BOUNDARY of the lateral consolidation that we have sketched out and that the markets have been working through for the past two months.  The U.S. markets are in a confirmed “uptrend”.  Today’s move validates our exposure to the markets and early today we “added-to” our positions in Alcoa (AA $8.75) and Nvidia (NVDA $13.82) – and transmitted an SMC Intra-Day Alert to that affect.KB Homes (KBH $9.80) confirmed that they are seeing what may be a significant improvement in the housing market.  Unfortunately, in the world of cars and trucks, Ford Motor Co. does NOT see an improving landscape.    From Wednesday … “While uncertainty in Europe and concerns of global economic slowdown are continuing to impact the equities (stock) markets negatively, steady – modestly – favorable economic news continues to emerge in the USA.  New home sales are IMPROVING, durable goods (think refrigerators and cars) data released today was FAVORABLE, and pending home sales are IMPROVING.  The U.S. equities markets, as represented by the S&P 500 are maintaining a lateral formation.  Europe however is staging another summit – with low expectations for resolution of issues.  Today’s favorable news (better than expected durable goods orders for May and pending home sales) pushed the markets higher.  We are cautious, but do NOT want to miss an opportunity if basic material processing stocks like Alcoa (AA) and AK Steel (AKS) begin moving higher.”    Click here for today’s SMC S&P 500 (ETF SPY) chart. 
• Today’s huge move in the markets resulted primarily from announcements from Europe that suggest that there will be funding made available to battle increasing bond yields for “cash-strapped” European rim nations, a way forward for Spanish banks, AND a EURO 120 billion stimulus plan initiated.  These announcements encouraged big money players to rebalance their U.S. dollar holdings and increase their exposure to the EURO.  As the U.S. dollar plunged, energy stocks soared higher.  As the word of possible stimulus emerged, other stocks joined in the rally.  We’ll see over the next weeks if this rally has legs.  Please see click here for this Success Investing Video 1  for a picture of what has developed today.
• Please click here for this Successful Investing Video 2 to see how crude oil, the U.S. dollar, and the euro performed today.

• Alcoa (AA $9.75) has our attention here and we have “added-to” our position.  Today we learned that Alcoa has sold its Tapoco hydroelectric plant and will raise $600 million by doing so.  This is another subtle signal that management is pursuing many avenues to focus the company on what it does best and to raise cash.  Click here for a Reuters article. We DO NOT like how Ford Motor Co. is predicting losses for Europe due to dramatically reduced demand there.  This will have an impact on aluminum demand.  Please click here for this Successful Investing Video 3 to see what we are seeing in the charts of Alcoa and other stocks like NVDA!
  
  
• Ford Motor Co. (F $9.59) is predicting perhaps as much as triple its losses in Europe from the 1st quarter, equally between $500 – $600 million in losses in Europe.  Strong sales in North and South America will help balance these losses, but Ford shares sank HARD below the important $10/share support line.  Here is an excellent article from Reuters on this development.  Towards the end of this article you will get a picture as to how much Ford is investing in Asia.  We want to be BUYERS of Ford shares on extreme weakness in the shares.

• We “Added-to” our investment in Nvidia shares today and transmitted an SMC Intra-Day Alert.  From Wednesday … “Google (GOOG $539) launched their Nexus 7 Android 4.1 tablet PC.  Google announced that the Nvidia Tegra 3 mobile processor is powering the device.  At SMC we initiated an investment in NVIDIA last week (NVDA $13.14).  Here is a good article (Reuters) describing the Nexus launch and size of the tablet market = $78.7 billion!  We may “add-to” our NVDA investment.”

• U.S. Congress passed a very broad and expensive transportation bill today.  We will be looking for possible investments in companies that directly benefit from this bill.   Here is a good overview on the transportation bill from Businessweek.

• 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.
  
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