Indices
Dow - 31.19 at 10,467.40  -   Nasdaq + 1.06 at 2,047.15  -  S&P 500 + 0.48 at 1,174.55 

Market Wrap
(Briefing):

The market showed little follow through at the open, despite another batch of good earnings reports, but found enough buying support in late trading to close in split fashion... A cautious underlying sentiment was intact at the onset as investors mulled over whether or not two consecutive sessions of gains were sustainable or none other than a technical bounce from oversold conditions... In the end, it was difficult to tell as market internals were slightly mixed and gains remained modest at best... Sure the majority of quarterly results from S&P constituents (27 out of 38) again came in ahead of forecasts compared to just 6 misses, but mixed guidance and disappointing Q4 results from Caterpillar (CAT 86.46 -4.66), which kept the Dow under pressure all day, weighed on equities throughout the session... An early surge in oil prices closer to $50/bbl, amid concerns of violence ahead of Sunday's Iraqi elections and uncertainty regarding OPEC's upcoming output decision, also kept a lid on buying interest; but while the commodity closed relatively unchanged ($48.84/bbl +$0.06), energy (+0.7%) still maintained most of its gains... Strength in semiconductor, networking and disk drive offset weakness in hardware and software, with the latter, despite upcoming earnings from bellwether Microsoft (MSFT 26.11 +0.10), trading lower after Smith Barney downgraded SAP AG (SAP 38.52 -0.86) to Hold from Buy... Also gaining ground were brokerage, consumer staples, materials, utility, retail and transportation while aerospace/defense (+1.4%), footwear (+1.5%) and health care services (+1.1%) were also higher following better than expected results from LMT, RBK and DGX, respectively... Telecom services (-1.2%) led the list of laggards following reports that suggested SBC Communications (SBC 23.83 -0.75) was in talks to acquire former parent AT&T (T 19.58 +1.13) for over $15 bln... Also posting losses were health care, financial, homebuilding and airline... December durable goods new orders rose 0.6%, nearly matching forecasts of +0.7% while November's figure was revised to 1.8% (from 1.4%) and orders (excluding transportation) were up 2.1% (consensus 1.3%), further suggesting continued strength in underlying business investment... New claims for unemployment checked in a bit lower than expected at 325K, marking the second straight week below 330K and essentially erasing figures reported over the holidays that may have been adversely affected by seasonal factors, and further reflected an encouraging employment situation... But while decent employment data and good trends in orders had little influence on equities, the data added pressure to treasures... The benchmark 10-year note fell 9 ticks to yield 4.23% but rebounded to close down 2 ticks yielding 4.20%... With traders focused on next week's G7 meeting, the dollar traded in relatively tight ranges against the euro (1.3033) and yen (103.13) throughout most of the session...NYSE Adv/Dec 1859/1428...NASDAQ Adv/Dec 1479/1564.

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Today's Picks - January 28, 2005

1.   BHI - Baker Hughes

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-28		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 43.86

2.   TXU - Txu Corp

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-28		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 67.45 Exit this trade before the close on Feb 1st due to pending earnings announcement.

3.   UPL - Ultra Petroleum

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-28		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 52.74

4.   VLO - Valero Energy

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-28		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 51.20 Exit this trade before the close on Jan 31st due to pending earnings announcement.

5.   TSO - Tesoro Corp

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-28		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 31.20 Exit this trade before the close on Feb 3rd due to pending earnings announcement.

6.   MEE - Massey Energy

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-28		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 35.95

7.   AMLN - Amylin Pharmaceuticals

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-28		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 21.65

8.   DHI - D.R.Horton

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-28		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 38.69

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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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