Indices
Dow - 77.16 at 10,774.36  I   Nasdaq - 18.12 at 2,041.60  I  S&P 500 - 9.17 at 1,200.08 

Market Wrap
(Briefing):

Renewed inflation fears, spurred by higher oil prices, a wider than expected trade deficit and surging bond yields weighed on overall sentiment, erased early bullishness from Intel's strong outlook and closed the major indices lower for the week... Crude oil futures ($54.43/bbl +$0.89), which were off 1.0% in pre-market trading and contributed to an upbeat bias, abandoned early weakness after the IEA raised its demand forecasts for the third straight month... Daily oil consumption forecasts have been increased to 84.3 mln barrels, 330K per day more than previously expected... Meanwhile, concerns about the Fed's measured pace of interest-rate hikes were heightened following the second largest trade deficit reading ever (behind the Nov. 2004 figure)... The January trade deficit swelled from a revised $55.7 bln in December to $58.3 bln (consensus -$56.8 bln), showing record highs for both exports and imports... While Greenspan noted that he is not "overly" concerned about the current account, he remains concerned about the deficit... The news fueled a selling frenzy in Treasurys, as the 10-year note recorded its largest weekly decline since last May, closing down 17 ticks to yield 4.53%... Earlier comments out of Japan regarding the possible diversification out of U.S. debt instruments and continued weakness in the dollar also contributed to the sell off in bonds... The greenback, which flirted with two-month lows against the euro (1.3452), was also weak against the yen (104.02), which lifted gold futures ($446.80/oz. +$3.40) to levels not seen since late Dec. 2004... Meanwhile, Technology was weak across the board... Semiconductor paced the way to the downside, failing to embrace Intel Corp's (INTC 24.23 -0.61) raised Q1 revenue guidance, to $9.2-9.4 bln from $8.8-9.4 bln, and higher gross margins of 57% (from 55%)... Widespread losses in Brokerage, Banking and Insurance weighed on Financial while declines in Drug stocks dragged Health Care to the downside... Consumer Staples and Utility, with broad-based weakness in the latter overshadowing strong Q4 results from Edison International (EIX 33.57 -0.33)... Transportation, however, closed modestly higher, but gains were minimized by losses in Airline, amid news that Delta Air Lines (DAL 4.26 -0.07) may face a renewed threat of bankruptcy... Energy closed higher as oil prices staged a 3.0% reversal while strength in Steel, after Nucor (NUE 62.46 +4.81) raised Q1 EPS guidance to $1.95-$2.15 from $1.70-$1.90 (consensus $1.81), helped lift the Materials sector... Telecom Services also made headlines after reports suggested that Qwest Communications (Q 3.86 +0.02) may sweeten its $8.0 bln bid for MCI Inc. (MCIP 24.06 +0.33) next week...NYSE Adv/Dec 1282/2051...NASDAQ Adv/Dec 1352/1747.

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

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Today's Picks - March 14, 2005

1.   NUE - Nucor Corp

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
03-14		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 62.68

2.   SWFT - Swift Transporation

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
03-14		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 26.09

3.   USG - USG

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
03-14		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 33.85

4.   FINL- Finish Line

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
03-14		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 22.19

5.   LMT - Lockheed Martin

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
03-14		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 59.44

6.   ROH - Rohm & Haas

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
03-14		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 48.38

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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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