Indices
Dow - 98.65 at 10,630.78  -   Nasdaq - 44.29 at 2,107.86  -  S&P 500 - 14.04 at 1,188.04 

Market Wrap
(From Briefing):

Inflation concerns, profit taking and higher oil prices were just some of the catalysts that fueled a selling frenzy that kept virtually every sector underwater all afternoon... While a summary of the FOMC's December 14 meeting minutes viewed a rise in equity markets and an improving job outlook as supporting consumption, it also renewed worries about inflation and raised concerns about risk taking in the market, prompting investors to lock in two months of profits... Some of the FOMC members were worried that stronger price pressures could result from weakness in the greenback, a slowdown in productivity growth and higher energy prices... With regards to the latter, a 4.3% rebound in crude oil prices ($43.91/bbl +1.79) only exacerbated selling interest that even pushed energy stocks lower and kept market internals negative throughout most of the session... Not even stronger than expected November factory orders of 1.2% (consensus 1.0%), which lifted stocks in the early going as the data confirmed continued strength in demand and business investment, was enough to keep buyers from heading for the exits... Meanwhile, the greenback hit its best levels since mid December, surging more than 1% against both the euro (1.3270) and the yen (104.63) as an increased probability of further Fed rate hikes pushed the currency even higher... The stronger dollar sent basic materials stocks and other commodities plummeting while a series of analyst downgrades kept several technology names under pressure... Technical support levels on the Nasdaq were tested throughout the session, as the Composite posted its largest one day loss (-2.1%) in about five months, while the Dow (-0.9%) and the S&P (-1.2%) also closed noticeably lower... As far as bonds were concerned, the release of FOMC's minutes sent treasuries into a tailspin, crushing the 10-year note and lifting yields to as high as 4.30%... The benchmark 10-year note closed down 18 ticks to yield 4.28%...NYSE Adv/Dec 803/2555. ..NASDAQ Adv/Dec 783/2399.

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Today's Picks - January 05, 2005

1.   WAG - Walgreens

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-05		Long	Above 40.46	Sell 1/2 once risk covered	Below LOD at time of setup
	* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 40.46

2.   MON - Monsanto

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-05		Long	Above 15 min high	Sell 1/2 once risk covered	Below LOD at time of setup
	* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 52.51

3.   NEW - New Century Financial

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-05		Long	Above 15 min high	Sell 1/2 once risk covered	Below LOD at time of setup
	* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 61.48

4.   ACAS - American Capital Strategies

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-05		Long	Above 15 min high	Sell 1/2 once risk covered	Below LOD at time of setup
	* Please Note: If the stock gaps down at the open do not enter the trade unless it trades above 32.05

5.   FRE - Freddie Mac

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-05		Short	Below 15 min low	Cover 1/2 once risk covered	Above HOD at time of setup
	* Please Note: If the stock gaps up at the open do not enter the trade unless it trades below 71.85

6.   RYL - Ryland Group

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-05		Short	Below 15 min low	Cover 1/2 once risk covered	Above HOD at time of setup
	* Please Note: If the stock gaps up at the open do not enter the trade unless it trades below 54.38

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EOD = End of day.
LOD = Low of day.
PDC = Previous Day's Close.
S/R = Support/Resistance.
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