Indices
Dow - 18.03 at 10,811.97  -   Nasdaq - 3.75 at 2,067.50  -  S&P 500 - 0.33 at 1,210.08 

Market Wrap
(Briefing):

No negative news from Greenspan was good news for stocks, however, surging oil prices were too much for investors to ignore, as the indices closed just below the flat line... The market was on pace most of the day to close higher for the fifth session in six days, as the Dow touched a new 52-week high intra-day, but a 4-month high in oil prices weighed on sentiment and turned market breadth modestly bearish in light of unsurprising comments from Greenspan... Soon after the Fed Chairman began his testimony before Congress, the stock market staged a noticeable rally effort that erased opening losses... Presumably, comments from Greenspan that the U.S. economy is growing at a reasonably good pace, that capital spending is picking up, and that there is little evidence of foreigners selling Treasurys prompted the rebound try... It was somewhat incongruent, though, that the rally effort would occur in conjunction with rising oil prices and falling bond prices... Arguably, that would suggest that the mid-morning rally try may have had more to do with money mangers trying to put early month inflows to work than it did with genuine enthusiasm about Greenspan's commentary... There seemed to be some validity to that assertion later in the day when the stock market retreated as oil prices continued to surge, crossing $53/bbl; meanwhile, the Treasury market continued to languish... Crude oil futures ($53.05/bbl +$1.37) closed up 2.7% at 4-month highs, due in part to a surge in gasoline futures, which hit a record high above $1.47 a gallon, following a mixed EIA inventories report... Crude supplies climbed 2.4 mln barrels (consensus +1.0 mln) while gasoline supplies rose 1.0 mln barrels (consensus +1.1 mln), but distillate stockpiles fell 1.8 mln (consensus -1.2 mln), as cold weather in the Northeast and Europe raised increased demand for heating oil... The surge in oil prices underpinned recovery efforts in energy (+1.3%), which were off 2.1% yesterday amid widespread profit taking... Also gaining ground was biotech, after a U.K. agency gave Chiron's (CHIR 37.69 +2.27) Liverpool facility the go ahead to resume production of its Fluvirin vaccine, while modest gains were also seen in disk drive, hardware and brokerage... Auto parts & Equipment (-3.9%) paced the way lower after Lear (LEA 47.00 -5.76) issued disappointing Q1 EPS guidance while profit taking in airlines (-2.6%) dragged down transportation... Extensive weakness was seen in semiconductor (-1.6%), after Novellus Systems (NVLS 28.90 -1.28) suggested potential margin erosion and Advanced Micro Devices (AMD 17.68 -0.28) hinted at lower than expected microprocessor sales while retail, despite showing modest intra-day strength ahead of Feb same store sales reports, also closed lower... Construction and development delays at MDC Holdings (MDC 77.57 -2.33), coupled with a third consecutive decline in mortgage applications and average 30-year rates climbing to their highest levels (5.74%) since the end of Nov. 2004, kept a lid on buying interest in homebuilding (-1.1%)... Materials also closed lower, despite a respectable recovery in steel (+1.4%), as the dollar strengthened against both the euro (1.3132) and the yen (104.72) on Greenspan's comments... Treasurys initially recovered from earlier lows through Greenspan's Q&A session, but stalled upon the conclusion of his comments as traders turned their attention to Friday's non-farm payrolls report... Yields on the benchmark 10-year note had climbed to as much as 4.39% ahead of his testimony, but improved somewhat to close off 3 ticks at 4.37%... Separately, American Eagle Outfitters (AEOS 58.87 +3.57) beat analysts' Q4 expectations by a penny and raised Q1 guidance while Costco (COST 45.02 -1.69) missed forecasts by a penny...NYSE Adv/Dec 1531/1762...NASDAQ Adv/Dec 1354/1752.

---

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

---

Today's Picks - March 03, 2005

1.   AEOS - Amer Eagle Outfitters

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
03-03		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 59.17

2.   STK - Storage Technology

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
03-03		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 33.04

3.   STX - Seagate

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
03-03		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 18.51

4.   CME - Chicago Merc Exch

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
03-03		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 195.10

5.   EV - Eaton Vance

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
03-03		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 25.90

6.   STJ - St. Jude Medical

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
03-03		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

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