Indices
Dow - 111.95 at 10,505.83  -   Nasdaq - 21.97 at 2,070.56  -  S&P 500 - 10.26 at 1,177.45 

Market Wrap
(From Briefing):

Stocks held rather tight ranges in negative territory most of the session, on the heels of higher oil prices and mixed economic data, but a late day drubbing, exacerbated by a GM warning, erased anything positive... The market suffered a material, and expeditious, sell-off in the final hour with relatively disappointing FY05 EPS guidance of $4.00-5.00 (Reuters Estimates consensus $4.91) from General Motors (GM 37.37 -1.02) and consternation over the market's inability to follow through on Wednesday's gains driving the selling interest... Separately, it was reported by CNBC that the late slide also stemmed from disappointment in a Treasury Dept. ruling that companies won't be allowed to repurchase stock or pay dividends with repatriated foreign earnings... Whatever the precise cause was, the late sell-off was a reflection of the bearish bias that has permeated the market since the year began... Also contributing to the market's overall weakness was a 3.5% surge in crude oil ($48.04/bbl +$1.67), fueled by supply disruptions, colder weather forecasts and further proof of OPEC production cuts, as the commodity broke through technical levels, hit a 6-week high and renewed fears of oil reaching $50/bbl before hitting $40/bbl... Meanwhile, December retail sales came in relatively in line with economists' expectations, suggesting a decent 2004 holiday shopping season, but weekly jobless claims rose for a second straight week, hitting 367K (consensus 340K), lifting treasuries and leaving investors more uncertain about the pace of economic growth... Telecom services (-1.5%) closed lower for the fourth straight day, pressured by weakness in Verizon Communications (VZ 37.00 -1.23), which was downgraded by both CSFB and Robert W. Baird to Neutral from Outperform... An FDA warning about Pfizer's (PFE 25.37 -0.66) controversial painkiller ads assisted in health care's 1.3% decline while biotech (-2.3%) also plummeted... Also showing weakness was semiconductor, transportation, retail, financial, materials and consumer staples... Interest-rate sensitive groups like homebuilding (+1.8%), REITs and utility closed higher, taking advantage of lower bond yields... Treasuries closed near session highs following the morning's mixed batch of economic data, sending the benchmark 10-year note up 13 ticks to yield 4.18%... Hardware also posted modest gains following a stronger than expected quarterly performance from Apple Computer (AAPL 69.80 +4.34) while disk drive, managed health, and energy also showed strength... The dollar rebounded against both the euro (1.3202) and the yen (102.62), recovering some of the ground it lost, sending gold futures lower for the first time in three days to close at $425.10 an ounce...NYSE Adv/Dec 1492/1832...NASDAQ Adv/Dec 1138/1955.

---

Today's Picks - January 14, 2005

1.   TOY - Toys R Us

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-14		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 20.89

2.   KBH - Kb Home

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-14		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 106.23

3.   UCL - Unocal

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-14		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 46.31

4.   TLT - iShares: Lehm 20+ Trs

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-14		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 90.18

5.   DHR - Danaher

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-14		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 54.96

6.   CSC - Computer Sciences

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-14		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 52.61

7.   BAC - Bank Of America

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-14		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 44.40

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