Indices
Dow + 77.16  I   Nasdaq + 28.75  I  S&P 500 + 11.97 

Market Wrap
(Briefing):

Closing the week with an average 3.2% gain, the equity market's major averages continued 2006's streak Friday. A mixed interpretation of the December employment report triggered some intra-day melee, but buyers ran back post-lunch and carried the market to a fourth straight day of advances.

Each of the ten economic sectors finished on positive ground. A 2.3% surge in the price of crude futures was the Energy sector's gain, with which it closed the week 6% higher. While the energy price action drove that sector, it did little to dampen buying across the broader market. Speaking of commodities, gold futures rose to the highest closing price in 25 years, and helped incite surges across the Materials sector (+1.2%). It was Technology that retained the spotlight Friday, though; on account of still-surging semiconductors, soaring communication equipment issues, and an altogether general extension of bullishness across the board, Tech rose a weighty 1.4% and continued the 2006 Tech theme. The SOXX index jumped 2% -- up 8% on the week -- and the Nasdaq hit a four and a half year high. Some upbeat corporate news helped to extend the sector's recent rally. Goldman Sachs upped its price target and profit estimates on Google (GOOG 465.15 +13.91) and Yahoo (YHOO 43.20 +1.67) shares, and The Wall Street Journal ran an article discussing those companies' partnership with Motorola (MOT 24.47 +0.95) - an example of their efforts to reach consumers beyond the traditional PC. Signifying strong end-market demand, Samsung asserted that it will raise DRAM contract prices by 10%. Garnering particular attention was IBM's (IBM 84.95 +2.45) announcement that it plans to freeze its $48 billion pension plan in 2008. Hardware rallied, and that stock led the Dow, which also hit a four and a half year high Friday. A lone sore spot was Microsoft (MSFT 26.91 -0.08), which declined following an analyst downgrade.

With respect to the jobs data, investors took somewhat of a mixed interpretation. For a market focused upon the interest rate environment, a lower than expected rise in December non-farm payrolls supported the argument that the Fed may end its current monetary tightening cycle sooner than later. Futures trade jumped, and the indices ran upon the market's launch. However, the consideration of November's upside revision, which essentially puts Friday's data in-line with what had been expected, served as a tempering factor. A greater than expected uptick in hourly earnings was an additional offsetting element; although the rise was unalarming, that caveat nonetheless fanned inflation concerns. As a result, the Treasury market spent another session submerged and bond traders further flattened the yield curve. The rate-sensitive Financial sector took a bearish cue, but banks reversed course and pushed the influential sector to a supportive 0.5% gain.

Aside from the four and a half year highs hit by the S&P 500, the Dow, and the Nasdaq this week, the NYSE Composite, S&P Financial, Oil Services, S&P Midcap, and Russell 2000 also touched historic highs...NYSE Adv/Dec 2450/843...NASDAQ Adv/Dec 2020/1037.

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Trade system guidelines (edited):
Only available to Newsletter Subscribers.

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Today's Picks - January 09, 2006

1.   AAPL - APPLE COMPUTER

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-09-06		Long	Above 15 high	Sell 1/2 once risk covered	Below LOD at time of setup
	* Please Note: If the stock gaps down at the open not enter the trade unless it trades above 76.70

2.   CELG - CELGENE CORP

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-09-06		Long	Above 15 high	Sell 1/2 once risk covered	Below LOD at time of setup
	* Please Note: If the stock gaps down at the open not enter the trade unless it trades above 69.26

3.   SNDK - SANDISK CORP

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-09-06		Long	Above 15 high	Sell 1/2 once risk covered	Below LOD at time of setup
	* Please Note: If the stock gaps down at the open not enter the trade unless it trades above 74.40

4.   DRI - DARDEN RESTAURANTS

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-09-06		Long	Above 15 high	Sell 1/2 once risk covered	Below LOD at time of setup
	* Please Note: If the stock gaps down at the open not enter the trade unless it trades above 40.46

Previous Trades

ENER - ENERGY CONVERSION DEVICES

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-06-06	01-06-06	Long	46.25	47.19	Closed Below 45.19	up to -$1.12 per share

CVA - COVANTA HLDG CORP

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
		Long	Above 15 high	Sell 1/2 once risk covered	Below LOD at time of setup
	* did not setup

NVDA - NVIDIA CORP

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-06-06		Long	40.71	42.25	Below 39.05	up to + 28 cents per share (40.99)

BZH - BEAZER HOMES

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
		Long	Above 15 high	Sell 1/2 once risk covered	Below LOD at time of setup
	* did not setup

CTXS - CITRIX

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
		Long	Above 15 high	Sell 1/2 once risk covered	Below LOD at time of setup
	* did not setup

FE - FIRSTENERGY

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-05-06		Long	50.77	Reached (51.02)	Below 50.77	up to + 45 cents per share (51.22)

SIRF - SIRF TECHNOLOGY

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-05-06		Long	32.57	Reached (33.13)	Below 33.50	up to + $2.18 per share (34.75)

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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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