Indices
Dow - 40.20 at 10,427.20  -   Nasdaq - 11.32 at 2,035.83  -  S&P 500 - 3.19 at 1,171.36 

Market Wrap
(From Briefing):

Stocks were under pressure most of the session and closed in negative territory, despite noteworthy M&A news and a sell off in oil, as mixed earnings/guidance reports, disappointing GDP figures and worries related to Iraqi elections fueled broad-based weakness... If not for last-minute, futures-related buying, the major indices may have posted weekly declines for the fourth consecutive week... While Proctor & Gamble's (PG 54.15 -1.17) $57 bln, all-stock bid to buy Gillette (G 51.60 +5.92) fueled modest market gains at the open, little follow through on the part of buyers, despite a resurgence in M&A activity (i.e. SBC - AT&T merger), only added to the frustration... MSFT, PG, ADM, CVX and TRB were just a few of the companies to have their better than expected quarterly results offset by disappointments from blue chips like MCD, MYG, HAL and APC while a weaker than expected advance Q4 GDP read of 3.1% (consensus 3.5%), due in large part to a steep decline in exports, also weighed on equities... Investors were also reluctant hesitant to hold stocks heading into a weekend filled with uncertainty regarding the risk of violence and possible pipeline disruptions related to Sunday's Iraqi elections... News late in the day that the U.S. Court of Appeals found Merck's (MRK 28.02 -3.16) patent claims for Fosamax to be invalid just added to the overall negative sentiment... Electronics manufacturing services (-2.9%) led the charge lower after Sanmina-SCI (SANM 6.37 -1.05) was downgraded by multiple brokers following weaker-than-expected Q1 results and lowered Q2 revenue guidance... Energy (-1.0%) was also weak on the heels of disappointing Q4 earnings from Halliburton (HAL 40.84 -2.67) and a 3.4% decline in crude oil prices ($47.18 /bbl -$1.66)... The commodity, which flirted with the psychologically critical $50/bbl level earlier, sold off as traders expected OPEC to leave output unchanged at this Sunday's meeting in Vienna... Technology was under pressure across the board, as modest gains in disk drive (+0.7%), following strong Q4 results from SanDisk (SNDK 24.91 +2.66), failed to offset weakness in software (-1.2%) and semiconductor (-1.0%)... Health care, financial, retail, biotech and transportation (excluding a 1.3% gain in airline) were also weak while brokerage, materials and utility posted modest gains and homebuilding (+0.8%) halved losses (-1.6%) as bond yields fell toward their lowest levels of the week... That said, treasuries closed near their highs of the session following the Commerce Dept.'s weak Q4 GDP figure, lifting the benchmark 10-year note up 15 ticks to yield 4.16%... The rally closed the 10-year up 20 ticks to yield 4.13%, but the benchmark treasury closed nearly unchanged on the week as yields bounced around between 4.12% and 4.38%... Other economic news included the Q4 employment cost index, which rose a smaller 0.7% (consensus +0.8%), the weakest overall rise since Q2 1999...NYSE Adv/Dec 1532/1774...NASDAQ Adv/Dec 1263/1793.

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Today's Picks - January 31, 2005

1.   AAPL - Apple Computer

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-31		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 73.98

2.   JOE - St. Joe

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-31		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 68.37 Exit this trade before the close on Feb 1st due to pending earnings announcement.

3.   MAS - Masco

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-31		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 36.90

4.   GPRO - Gen-Probe

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-31		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 48.71

5.   K - Kellogg

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-31		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 45.29

6.   HAL - Halliburton

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-31		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 40.42

7.   SII - Smith

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-31		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 57.28

8.   CI - Cigna

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
01-31		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 78.60

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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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