Dow + 8.21    I  Nasdaq + 4.37    I  S&P 500 + 2.84    

Market Wrap
(Briefing):

With the Dow and S&P 500 finishing a holiday-shortened week in record territory, it wasn't surprising to see another sell-off in China create some nervousness in early trading. The market's bullish momentum resurfaced late in the day, though, and once again, the major indices ticked higher, albeit in modest fashion.

Overnight, the Shanghai Composite plunged 8.3%, its biggest one-day decline since the 8.8% drubbing in late February that caused widespread panic. However, the recognition that the China sell-off was a localized affair, and a drop in market rates closer to home, proved to be mitigating factors for investors.

After climbing 10 basis points last week as expectations of a Fed easing continued to fade, the yield on the 10-year note fell four basis points Monday. The rate-sensitive Financials sector, which had been noticeably weak early in the session, managed to pare its loss to a 0.1% decline and provided a spark for the afternoon rebound effort.

Of the five sectors closing higher, Energy paced the way. It gained 1.3% in sympathy with oil prices which jumped 1.6% on top of Friday's 1.7% surge.

Technology was also an influential leader to the upside. Apple (AAPL 121.33 +2.93) was a notable source of sector support (+2.5%) after it confirmed June 29 will be the launch date for its highly anticipated iPhone.

The sector's best performer, though, was Solectron (SLR 3.88 +0.51). Shares soared 15% after rival Flextronics (FLEX 11.54 -0.16) said it will acquire SLR for $3.6 bln. Avaya (AV 16.74 +0.66) surged 4% following reports that TPG and Silver Lake Partners are nearing a deal to buy it for roughly $7.8 bln.

The Industrials sector also contributed to the S&P 500 finishing in record territory for a fourth straight day after Dow component General Electric (GE 37.80 +0.35) was mentioned favorably in Barron's. Consumer Staples closed slightly lower, but an upgrade-induced 3.4% rally in the sector's third most influential constituent -- Wal-Mart (WMT 51.14 +1.67) -- helped the Dow log its 27th record close this year.

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

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Today's Picks - June 05, 2007

1.   CF - CF Industries Holdings

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-05-07		Long	Above 15min 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 48.65

2.   WMB - Williams Companies

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-05-07		Long	Above 15min 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 32.45

3.   LTR - Loews Corp

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-05-07		Long	Above 15min 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 52.36

4.   TSN - Tyson Foods Inc

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-05-07		Long	Above 15min 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 22.90

5.   XLE - Energy Select Sector SPDR

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-05-07		Long	Above 15min 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 70.07

Previous Trades

TGT - Target Corp

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
		Long	Above 15min high	Sell 1/2 once risk covered	Below LOD at time of setup
	* 06-04-07 - stock gapped down and did not setup

DD - E I du Pont de Nemours

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
		Long	Above 15min high	Sell 1/2 once risk covered	Below LOD at time of setup
	* 06-04-07 - stock gapped down and did not setup

OXY - Occidental Petroleum

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-04-07		Long	56.92	Reached (57.30)	Below 56.99	up to + $2.06 per share (58.98)

RTN - Raytheon

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-04-07		Long	56.32	Reached (56.61)	Below 56.32	up to + 43 cents per share (56.75)
	* 06-04-07 - stock gapped down