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Market Wrap
(From Briefing):

Stocks began the day higher following Intel's stellar Q4 performance and, despite a wider-than-anticipated trade deficit and growing concerns about earnings visibility, a late resurgence in buying interest pushed the major indices into positive territory for good... Stronger than expected earnings, record revenues and upbeat guidance from Intel (INTC 23.17 +0.63) served as the underlying impetus early on for buyers to revisit equities despite Tuesday's lackluster performance... But a worsening trade balance, which topped $60.0 bln for the first time on record (consensus -$54.0 bln), did anything but calm investor's uneasiness ahead of slowing earnings growth and expected rate hikes... Within seconds of the Commerce Dept's release, which showed exports falling to five-month lows and imports hitting record levels, the dollar plummeted against both the euro (1.3264) and the yen (102.40)... Weakness in the greenback, however, lifted gold futures ($426.60/oz) nearly 1.0% and helped materials close higher... Energy (+1.7%) recorded the largest gains, trading higher as crude oil prices surged 1.5% to close at $46.37/bbl (+$0.69) despite mixed weekly oil inventories data... While crude supplies fell 3.0 mln barrels, further than the expected 1.9 mln barrel decline, distillates, which had risen 8 out of the last 10 weeks, surpassed economists forecasts by 1.0 mln barrels... Semiconductor (+1.4%), lifted by Intel's Q4 report, paced the way in technology as strength in networking and hardware, ahead of Apple Computer's (AAPL 65.37 +0.81) earnings, offset modest weakness in software... Managed health was also strong, extending two days of gains, while biotech, retail, health care and utility also closed higher... Transportation (-1.6%), which was off more than 2.0% most of the session, led the list of laggards, after United Parcel Service (UPS 76.69 -6.61) lowered Q4 earnings guidance... Also losing ground was homebuilding, airline, financial and telecom services... Meanwhile, treasuries, which bounced around near the flat line most of the session, caught a bid after indirect bidder participation at the bond auction came in at a healthy 39.8%, pushing the 5- through 30-year notes to new session highs... The benchmark 10-year note closed up 1 tick to yield 4.23%... ..NYSE Adv/Dec 1887/1442. ..NASDAQ Adv/Dec 1543/1554.

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Today's Picks - January 13, 2005

1.   ELN - Elan Corporation

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-13		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 do not enter the trade unless it trades above 29.14

2.   MIPS - Mips Technologies

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-13		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 do not enter the trade unless it trades above 11.09

3.   DO - Diamond Offshore Drilling

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-13		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 do not enter the trade unless it trades above 40.65

4.   WLP - Wellpoint

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-13		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 do not enter the trade unless it trades above 121.70

5.   GENZ - Genzyme

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-13		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 do not enter the trade unless it trades above 59.95

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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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