Dow + 157.66    I  Nasdaq + 32.16    I  S&P 500 + 16.95    

Market Wrap
(Briefing):

After three consecutive sessions of broad-based selling, stocks bounced back in impressive fashion Friday as investors rallied around the resurgence of several catalysts that have contributed to this year's rally.

Everything from lower bond yields and takeover talk to plunging oil prices and some late-day short covering activity armed the bulls with enough momentum to lift all three major averages more than 1.0% on the day. Only three of 147 S&P industry groups closed in negative territory.

With the spike higher in interest rates this week feeding concerns that the record pace of deal making might slow, a report hitting the wires around 1:00 ET that ThyssenKrupp might be interested in buying U.S. Steel (X 124.92 +9.12) was the main driver behind the market's strong recovery. The news earmarked Steel (+4.2%) as the day's best performing S&P industry group and helped Materials (+1.8%) pace the way among all 10 sectors closing higher.

Technology turned in a similarly strong performance but was an even more influential leader to the upside.

Semiconductors (+3.0%) were the sector bright spot after National Semiconductor (NSM 29.58 +3.79) beat expectations last night, unveiled a $2 bln buyback and posted a drop in inventories that offered some reassurance about the influential Tech sector's growth prospects. Tech is still slated to be among the largest contributors to aggregate EPS growth on the S&P 500 this year.

Financials, still this year's biggest laggard, climbing back into positive territory for the year was also noteworthy.

Before the bell, the yield on the 10-year note was as high as 5.24%, setting the stage for a continuation of Thursday's selling and another dismal day for the likes of rate-sensitive banks and REITs. However, Chicago Fed President Moskow saying that inflation expectations remain well contained and that the fed funds rate is appropriate for now helped Treasuries pare their losses and eventually finish higher on the session.

The 10-year note made a striking reversal, in fact, ending the session with its yield at 5.11%.

Oil prices plunging 3.2% to $65.80/bbl was another source of support behind Friday's bounce. Despite the drop in oil prices, the energy sector was an active participant in Friday's broad-based gains.

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

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Today's Picks - June 11, 2007

1.   EFD - eFUNDS Corp

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-08-07		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 36.05

2.   Q - Qwest Communications International

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-08-07		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 10.17

3.   TYC - Tyco International

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-08-07		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 33.89

Previous Trades

CEG - Constellation Energy Group

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-08-07	06-08-07	Long	83.81	Reached (84.60)	Closed Below 83.81	up to +$1.16 per share (84.97)

EQT - Equitable Resources

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-08-07	06-08-07	Long	51.23	Reached (51.31)	Closed Below 51.23	up to + 23 cents per share (51.46)

NKE - NIKE

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
	* did not setup

GEF - Greif

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
		Short	Below 15 low	Cover 1/2 once risk covered	Above HOD at time of setup
	* did not setup

EWW - iShares MSCI Mexico Index Fund

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-07-07	06-08-07	Short	61.38	Reached (60.08)	Closed Above 61.38	up to + $1.78 per share (59.60)

SPW - SPX Corp

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-07-07		Short	85.91	Reached (84.72)	Above 85.20	up to + $2.08 per share (83.83)

SID - Companhia Siderurgica Nacional

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-06-07		Short	51.86	Reached (51.60)	Above 51.73	up to + $2.84 per share (49.02)

OKE - Oneok Inc

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-06-07		Short	52.84	Reached (52.34)	Above 50.15	up to + $3.43 per share (49.41)