Indices
Dow - 88.82 at 10,539.97  -   Nasdaq - 32.45 at 2,073.59  -  S&P 500 - 11.35 at 1,184.63 

Market Wrap
(From Briefing):

Little enthusiasm on the part of buyers, despite better than expected economic data, as investors remained more concerned about the overall pace of earnings growth following mixed quarterly results than to extend Tuesday's strong gains... There were just too many earnings disappointments from the likes of PFE, JPM, AMD, NWAC and LUV (to name a few) to embrace better than expected results from leaders like IBM, GM, MOT, STX, WB and YHOO... The bulk of sector leadership was negative and market internals were bearish as not even a 1.7% decline in crude oil prices ($47.55/bbl -$0.83) and solid economic reports provided enough upside momentum to thwart a correction in equities... Meanwhile, investors were reminded that the worst inflation fears were overdone as December CPI was down 0.1% (consensus 0.0%), due to falling energy prices, and the more critical core rate checked in at 0.2% for the third straight month, in line with forecasts... An indication that the broader trend in weekly jobless benefits remains near 335K, consistent with nonfarm payroll gains of 175-200K, was also seen when initial claims for unemployment of 319K (consensus 34K) recorded its largest decline (-43K) in claims since Sept 2001... Evidence that the overall trend in housing remains flat, another bullish signal erased by the bears, was witnessed when housing starts jumped 11% to 2.0 mln (consensus 1.91 mln) and building permits came in at 2.0 mln (consensus 1.99 mln)... Technology was hardest hit on the day, with losses in every major sub-sector exceeding 1.0% and the tech-heavy Nasdaq losing 1.5%... Airline (-3.2%), following poor Q4 results due in large part to higher fuel costs, was also lower as were financial, health care, retail, energy, materials and consumer staples... The only areas that showed strength intra-day were interest-rate sensitive groups like homebuilding, utility and REITs, but intensified selling interest in late trading left the housing group as the only major sector standing in positive territory... Separately, the Fed Beige Book cited continued economic expansion, well-contained inflation, strong manufacturing activity and a firming labor market, but as a lagging indicator providing little surprise to the strong economic data, the report was largely ignored... Treasuries ended the session near mid-range, with the benchmark 10-year note finishing unchanged to yield 4.18%, while the dollar surged to its best levels against the euro (1.2989) since pre-Thanksgiving trade; the yen (102.89) clung to recent highs...NYSE Adv/Dec 1267/2094...NASDAQ Adv/Dec 947/2173.

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Today's Picks - January 20, 2005

1.   ANF - Abercrombie & Fitch

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-20		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 53.03

2.   CFC - Countrywide Financial

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-20		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 37.77

3.   MCO - Moody's

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-20		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 85.73

4.   CIT - CIT

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-20		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 41.83

5.   TXT - Textron

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-20		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 70.98

6.   EBAY - eBay

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-20		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 102.87

7.   COP - ConocoPhillips

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-20		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 89.27

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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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