Indices
Dow - 3.69 at 10,936.86  -   Nasdaq + 19.60 at 2,090.21  -  S&P 500 + 3.19 at 1,225.31 

Market Wrap
(Briefing):

Broad-based buying in technology and fresh M&A activity extended last week's rally throughout most of the session, but late-day weakness closed the indices in split fashion... The Dow flirted with the 11,000 mark midday but failed to hold onto minimal gains into the close while modest gains in the S&P, largely benefiting from strength in technology, closed at another 3 1/2 year high... Qualcomm (QCOM 37.14 +1.64) increased its Q2 EPS outlook by a penny to $0.26-0.28, which was still in line with forecasts of $0.27, but still enough to help lift technology stocks ahead of several mid-quarter updates this week from leading chipmakers... An upbeat article in Barron's about Cisco Systems (CSCO 18.24 +0.20), and its lower P/E multiple possibly attracting more value-oriented investors, also acted as a supportive factor that renewed widespread interest in the Nasdaq, which has continued to lag the blue chip indices in 2005... Also contributing to the early momentum were proposed M&A deals in banking and defense contracting... Capital One Financial (COF 76.00 -2.08) said it will buy Hibernia Corp. (HIB 32.21 +5.64) for $5.35 bln while British firm BAE Systems Plc agreed to acquire United Defense Industries (UDI 73.35 +15.09) for $3.97 bln... Crude oil prices ($53.89/bbl +$0.11), which were lower throughout most of the day after OPEC said it could pump an additional 2 mln barrels a day if needed, also added to the positive sentiment... Technology paced the day's gains as semiconductor was lifted by strength in Intel (INTC 25.11 +0.43) ahead of its mid-quarter update (Mar. 10), communications equipment got a boost from QCOM, software surged amid positive comments about Oracle Corp (ORCL 13.60 +0.32) at Prudential and computer storage closed higher after QLogic (QLGC 42.68 +1.55) was upgraded... Biotech also finished higher after Celgene (CELG 33.88 +5.20) announced strong Phase III results on its Revlimid treatment while continued strength in airline stocks helped transportation post strong gains... Strength in medical equipment stocks helped health care finish the day on an upbeat note... Positive stent study data and a Prudential upgrade helped Medtronic (MDT 53.99 +0.52) hit a new intra-day 4-year high while data that showed Johnson & Johnson's (JNJ 68.44 +0.70) Cypher stent performed better than Boston Scientific's (BSX 30.73 -0.66) Taxus product helped lift the industry group... Financial (+0.2%), utility (+0.7%) and consumer discretionary (+0.4%) also closed in positive territory while energy (-0.8%), materials (-0.8%) and consumer staples (-0.3%) closed lower... Consolidation and lower oil continued to pressure energy while overbought conditions in steel stocks and a rebound in the dollar weighed on the materials sector... The greenback strengthened against both the euro (1.3209), as Friday's 1.0% sell off spurred by hopes for a widening interest-rate margin between the U.S. and Europe was arguably overdone, and the yen (105.21), after a report showed Japanese capital spending in Q4 slowed more than expected... Treasurys traded in lackluster fashion for the most part, as the 10-year note finished up just 1 tick to yield 4.30%... In company-specific news, Boeing (BA 58.30 -0.08) was in focus after CEO Harry Stonecipher failed to set the standard for "unimpeachable professional and personal behavior" and was subsequently fired for having an affair with a co-worker while Sony (SNE 39.30 +0.76), amid ongoing troubles in its consumer electronics business, also made headlines after it named a new CEO...NYSE Adv/Dec 1763/1522. ..NASDAQ Adv/Dec 1549/1611.

---

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

---

Today's Picks - March 08, 2005

1.   URBN - Urban Outfitters

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
03-08		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 48.06

2.   JBHT - J B Hunt

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
03-08		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 48.72

3.   SNDK - Sandisk Corp

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
03-08		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 27.55

4.   CMCSA - Comcast

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
03-08		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 33.56

5.   NTE - Nam Tai Electronics

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
03-08		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 25.99 * Please Note: This is a low volume stock.

6.   X - United States Steel

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
03-08		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 58.56

7.   K - Kellogg Co

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
03-08		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 43.99

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