• Market Overview = Although “jolted”, the market remains fixed in a confirmed lateral consolidation as measured by our broader S&P 500 ETF (SPY).  That said, there is little to like about this week’s market action.  The market is acting very “narrow”.  This means that there are some company shares that are performing reasonably well, whereas the overall market is behaving like it has a wet blanket smothering most investor enthusiasm.  We are looking for S.I.M.P.L.E. Stock investments that offer us a clear “story” which includes expanding earnings and a catalyst for change that we can understand.  The pickings are thin.  Active trading without a clear understanding of catalyst and expanding earnings is a failed proposition. 
• We like how SMC holding Nvidia (NVDA $13.09) was able to buck the overall negative NASDAQ performance today and appears to be possibly “coiled” to spring HIGHER.   We know that there  is room for individual stock stories to emerge and perform, as demonstrated in early June in our investment selection of Arena Pharmaceuticals (ARNA $10.95) and its subsequent significant move higher (over +65% at one point).

•  Click here for today’s SMC S&P 500 (ETF SPY) chart. 
• Market participants are stymied.  There are certain bright spots (eBay; Lumber Liquidators; …) but overall things are certainly “stuck in the mud”.  Opportunities will present themselves – they always do, but patience is certainly required at this point in time.

• US housing industry continues to be a bright spot with last week’s housing start data for JUNE (which measure the number of new single and multi-family dwellings initiated for construction) helping the equities (stock) market to remain somewhat stable.  At SMC, we have pointed out – since Hovnanian’s (home builder) excellent quarterly earnings report in early June – that the home building industry is improving.   Shares of Hovnanian are UP +27% since our report.  We pointed it out for risk tolerant investors, but did not initiate an SMC position at the time.  

• Traditional material processing companies, represented by U.S. Steel, Alcoa, AK Steel, and others have all been hammered with concerns of global growth diminishing and shares lie at or near decade lows, excluding the March 2009 bottom in the market.  Successful U.S. enterprises like Dell, Inc. and Hewlett Packard, Inc. also continue to print new lows – even though we know that some of the largest private capital funds have purchased significant shares at much higher prices (in the case of Hewlett Packard).  At this point it doesn’t matter.  Selling begets more selling.

• 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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