Indices
Dow + 21.38  I   Nasdaq + 0.77  I  S&P 500 + 2.33 

Market Wrap
(Briefing):

While gains remained moderate Monday, equities rebounded from sharp selling action that sunk Friday's market. Buyers eyed bargains left in the wake of last week's average 2.6% drop in the indices, and some positive news on the corporate front helped provide incentive to snatch them.

The ten economic sectors stood in split fashion for most of the session. Despite retreats in prices across the energy complex, the Energy sector (+1.1%) managed to attract further buying interest and led the advancers. Oil services stocks paved the way higher, as SLB enjoyed follow-through interest following its much better than expected fourth quarter report, and as investors optimistically await result from BJS. As a side note, the latter is one of Briefing.com's suggested holdings for active investors, and is scheduled to report prior to Tuesday's open. Although declines in energy prices were a positive for the broader market Monday, the fact that supply-related geopolitical concerns (Iran) persist worked to somewhat undercut the declines' effects.

Largely to the credit of a soaring brokerage industry, Financials were stocks' strongest source of support. Upside profit results from Dow component American Express (AXP 51.47 +0.07) were released ahead of schedule and, especially in light of some recent disappointments across both the sector and the Dow, lent further muscle. Along that line, Bank of America (BAC 53.94 -0.25) fell $0.08 short of analysts' earnings estimate this morning. Its subsequent decline was kept in check, though, as investors perhaps acknowledge that Wall Street's estimates on many stocks are too high amid a decelerating earnings growth environment, and that BAC remains attractive on account of its growth prospects, dividend yield, and valuation.

Benefiting from across-the-board jumps in metal stocks, Materials (+1.3%) was also a bright spot Monday. Following its GE-induced plunge on Friday, Industrials (+0.2%) recovered; Utilities (+0.1%) also closed higher. Facing relative weakness in drug retail, which surging Albertson's shares helped to offset, the Consumer Staples sector ended the day on the flat line. This morning, the grocer agreed to a $17.4 billion buyout led by CVS (CVS 26.67 -0.46), Supervalu, and private equity firm Cerberus. The Discretionary sector similarly closed unchanged. The auto industry led Monday's S&P, following a much better than expected Q4 report alongside details of an aggressive turnaround plan from Ford (F 8.33 +0.43), but declines across the retail arena and the aforementioned oil overhang challenged its effect.

While buying efforts were generally modest, selling action was even more so. A wavering Technology sector finished 0.3% lower and led the laggards; Intel (INTC 21.37 -0.39) was the primary culprit, and its extended weakness eclipsed some relative strength across the semiconductor industry. Recovered Yahoo (YHOO 34.20 +0.46) and Apple (APPL 77.64 +1.55) shares were particular sources of support that helped limit the sector's slide, however. Reports that the U.S. Supreme Court denied Research in Motion's (RIMM 64.25 -2.37) petition to review a patent infringement ruling added to the Nasdaq's rocky day, but rebounding GOOG shares helped counter that challenge. With respect to RIMM's woes, the news served as a bullish cue for rival Palm (PALM 33.61 +0.41).

Monday's economic front featured just a slightly lower than expected read on leading indicators. Investors within both the stock and bond markets essentially overlooked the dated (December) data, though, and remain focused upon the week's housing data and Q4 GDP report.

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

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Today's Picks - January 24, 2006

1.   PKD - PARKER DRILLING

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-24-06		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 12.24

2.   THE - TODCO

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-24-06		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 47.12

3.   CRK - COMSTOCK

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-24-06		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 33.58

4.   UNH - UNITEDHEALTH GROUP

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-24-06		Short	Below 15 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 57.72

Previous Trades

HAL - HALLIBURTON

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-23-06		Long	75.56	Reached (76.55)	Below 75.56	up to + $1.79 per share (77.35)

MCD - MCDONALDS

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

LVS - LAS VEGAS SANDS

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

BZH - BEAZER HOMES

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
07-23	07-23	Short	74.24	Reached (73.58)	Closed Above 74.24	up to + $1.53 per share (72.71)

MCO - MOODYS CORP

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
		Short	Below 15 low	Cover 1/2 once risk covered	Above HOD at time of setup
	* did not setup

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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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