– The Stock Market Companion –

15Minute Market Update

March 23, 2013

—— Stock Market Investing since the 1980’s ——

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-Executive Summary-

• Friday’s Market Results = S&P 500 ETF (SPY) (+.72%), DOW (+.63%), NASDAQ (+.70%)
  

   

• Markets – Since the UPSIDE Reversal day for the broader U.S. market (S&P 500) on November 16th, the markets have been demonstrating relative STRENGTH.  Last week, the S&P 500 – as measured by the “SPY” (SPDRs S&P 500 Trust Series ETF) broke to new ALL-TIME High’s 10 $156.80.  The previous all-time high was $156.70, established in 2007.  Yes, there was a time before that – in 2000 – when the broader U.S. market was at similar high’s = $154.94 in the week of March 30, 2000.
  
  

• Market Overview = The market has been in a rally for over 4 months (Please see your SMC Daily Chart of the “SPY” (SPDRs S&P 500 Trust Series ETF, below)).  We haven’t been much at all involved in this particular rally, although we identified several excellent investments = Hewlett Packard (HPQ); Radio Shack (RSH), Acadia (ACAD) …  It’s easy to begin feeling left behind and begin “running after the market”.  We don’t do that at SMC.  We wait for prudent entries, on investment stories that we understand.
  

   

• Please click here to view today’s Stock Market Companion Daily Chart of the S&P 500 ETF (SPY) – Our Roadmap for Successfully Investing in the U.S. Domestic Stock Markets.
  

   

• How about +3.9% in a week, with a leading U.S. company stock?  Our Apple, Inc. investment idea from last week is looking pretty good.  Please see the chart below to see what is going on.  Friday’s closing price = $461.91 = +3.9% over $443.66.   Here’s how we presented this idea – “Interested in a possible +5% – +10% move in a high quality stock that has been sold-down hard?  How about shares of Apple, Inc. (AAPL) at $443.66 and an initial target of  $465/share (+4.7%) or next target of $480 (+8%), with a stop/loss protection at $418.8 (-6%).  This doesn’t at all meet the stringent guidelines of a 2x to 3x reward / risk ratio – but – with the down -40% in 6 months, and 4 “down-legs” printed, this is an interesting opportunity for investors.”
  

   

  Please click on the above chart or on this link for a picture of this possible opportunity unfolding with Apple, Inc. shares.

• WOW!  How about Acadia’s blistering reach HIGHER to $8.81 this week?  Those on board since our highlight in January on the move above $5.18/share have experienced a +70% increase.Here’s a short (5 minute) teaching video on how this has worked out.  (Please click on the link and the video will open in a separate tab on your browser).Here’s what we have written on this one, since it came on our radar in late November (most recent to earliest posting sequence)… “A move above $6.65, with a favorable background market will have us involved with Acadia Pharmaceuticals, for those not invested in the shares on the move above $5.18 in January.

  Warning = Do not run after this one.  There may be an entry here or maybe not.  Now is the time to see if investors sell strongly.  There will be normally be a clear signal in the days or weeks ahead if this is still a viable investment.

  We have previously posted this on ACAD – “(ACAD $4.95) continues to establish itself in a lateral fashion, and appears at the moment to be perhaps ready to move HIGHER.  A move above $5.18 will get us on board.  We have highlighted Acadia Pharmaceuticals (ACAD $4.95) as a stock to watch, after the shares JUMPED +43% in value almost 1.5 months ago.  We wrote …”The company has received brokerage upgrades to approx. $9/share, after demonstrating very positive Phase III results for their drug that fights Parkinson’s Psychosis (PSD).Please click here for the company’s press release highlighting this very significant development.  The shares need to consolidate in a predictable pattern before we will consider an investment.”  Selling has continued in the shares, pushing their value back below recent consolidation support at $4.81.  We have time to watch this one carefully.””
  

• Here’s our early alert on Hewlett Packard which has led to a +47% return in 3 months time = “Hewlett Packard (HPQ) has now advanced +11% from our last update, when we shared this chart – “Click here for our SMC Daily Chart of Hewlett Packard Co. (HPQ $13.68), which shows how we are viewing possibilities.””
  

• Our investment in Arena Pharmaceuticals has so far been a disappointment, but this week’s share price development, which includes “flushing out of stops” and then bolting higher is quite possibly a favorable development.  We have taken time to create this 5 minute teaching video on this one to give you an idea of how we are seeing things now.  (Please click on the link and the video will open in a separate tab on your browser).
  

   

• There are pockets of strength and “oversold” conditions that we at Stock Market Companion will engage in – like our first Facebook investment at approx. $19.20 / share in September 2012 – which recently increased to over $32/share = +66% in 5 month’s time!
• Please click here to send us your feedback.  Let us know how we are doing – We are here to serve you.  Support@Stockmarketcompanion.com