Dow + 71.38    I  Nasdaq + 17.10    I  S&P 500 + 7.30    

Market Wrap
(Briefing):

Despite showing signs of fatigue initially after Wednesday's sizable rally, it didn't take long for the bulls to get back to their winning ways Thursday as more signs of bond yields topping out left the bears with little to work with.

Given the Fed's repeatedly hawkish stance on inflation, investors weren't placing any big bets on a follow-through effort before getting an update on inflation at the wholesale level. At 8:30 ET, total PPI rose a larger than expected 0.9% in May while the more closely-watched core rate rose 0.2%.

Even though the latter component matched economists' forecasts and offered no evidence of building price pressures, the first increase in three months and the year/year rate ticking up to 1.6% didn't exactly convince bond traders that inflation is abating.

The yield on the 10-year note closed slightly higher at 5.21% as traders eventually opted to wait for Friday's CPI report to get a better inflation read for Fed policy direction. Nonetheless, a multitude of S&P industry groups attracting buyers, and eight of 10 sectors averaging gains of 0.7%, were more than enough to offset a slight 0.2% pullback in the heavily-weighted Financials sector.

Per usual, Goldman Sachs (GS 225.33 -8.31) handily beat analysts' expectations. However, given Goldman's first quarter blowout and record results from Lehman Brothers (LEH 78.82 +0.95) earlier in the week, shareholders were clearly expecting more than a paltry 1.0% year/year rise in Q2 profits.

Bear Stearns (BSC 149.50 +0.01) posting its first quarterly shortfall in six years was also a drag on a rate-sensitive sector still reeling from rising bond yields before bargain hunters eventually lifted it to breakeven on the day. Challenging comparisons and weakness in mortgage-related activity tied to subprime challenges were two of the reasons behind BSC's miss.

Among the biggest areas of support for the broader market was Energy. The sector surged 1.9% in conjunction with a 2.1% rise in oil prices ($67.65/bbl) that contributed to the belief the sector is in good position to be a notable contributor to aggregate earnings growth on the S&P 500.

Continued resilience on the part of transportation stocks in the face of surging energy prices was also commendable since logistics companies contribute notable influence within the Industrials sector (+0.7%).

As evidenced by the Nasdaq outpacing the major averages to the upside, strength across the board in Technology (+0.7%) was an even more influential source of support. The sector got its biggest boost from a 2.5% advance in Intel (INTC 23.23 +0.56), which lifted the Dow component to a new 52-week high.

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

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1.   CBEY - Cbeyond

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-15-07		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 40.05

2.   MRO - Marathon Oil

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-15-07		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 129.06

3.   SPWR - SunPower

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-15-07		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 57.60

4.   GS - Goldman Sachs Group

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-15-07		Short	Below 15 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 225.01

5.   BBBB - Blackboard

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-15-07		Short	Below 15 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 39.87

Previous Trades

OMTR - Omniture Inc

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-14-07		Long	19.58	Reached (19.85)	Below 19.58	up to + 37 cents per share (19.95)

AOI - Alliance One

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-14-07		Long	11.16	Reached (11.34)	Below 11.16	up to + 53 cents per share (11.69)

NVDA - NVIDIA

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-14-07	06-14-07	Long	37.25	Reached (37.41)	Closed Below 37.25	up to + 29 cents per share (37.54)
	* 06-14-07 - stock gapped down

IMMR - Immersion

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-13-07		Long	12.91	13.18	Below 12.91	up to + 34 cents per share (13.25)