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Market Wrap
(Briefing):

Tracking the major indices was a painstaking affair for most of the session as they followed summer form and traded in tight ranges. At the end of the day, though, the bulls were able to declare a victory in Tuesday's battle as the broader market squeaked out a modest gain.

General Electric (GE 39.29, +1.22) played a key role in the victory as it broke out to a 5-year high on more than twice its average daily volume. While we like GE's fundamental standing, the Dow component didn't share any specific news that would explain its positive showing. Accordingly, market observers were left to conclude that its strength was predicated on technical factors.

Whatever the reason, GE's mega-cap weighting helped lift the broader market; and it stood as a positive focal point that kept selling efforts in check.

The same can be said for the Treasury market which continued to recoup the losses it suffered that sent the yield on the 10-year note as high as 5.31% a week ago. Tuesday the yield on the benchmark note hit 5.07%.

Setting aside those positive developments, there were some casualties in Tuesday's battle. Best Buy (BBY 45.18, -2.83) was the most prominent one following what can only be described as a disappointing second quarter earnings report.

The consumer electronics retailer fell 11 cents shy of the consensus EPS estimate of $0.50 and then issued guidance for the full year that was below the market's expectation.

Other fallen stocks included Leggett & Platt (LEG 22.08, -1.49) and Microchip Technology (MCHP 37.91, -3.74). Both companies issued disappointing guidance and paid the price as a result.

Yahoo! (YHOO 27.63, -0.49), meanwhile, was another notable laggard as investors expressed concerns about the company's competitive position following a management change that included the resignation of Terry Semel as CEO.

Led by GE and the airline stocks, the industrials sector (+0.97%) was the best-performing sector Tuesday. Conversely, consumer staples (-0.54%) was the worst-performing.

The May Housing Starts report came and went without causing much of a stir. The good news was that starts were down only 2.1% versus an expectation for a 3.5% decline. The bad news is that the data continue to point to a weak environment for starts. Separately, building permits increased 3.0% while the market was expecting a jump of 1.0%.

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

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Today's Picks - June 20, 2007

1.   ANAD - Anadigics Inc

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-20-07		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 13.56

2.   WPI - Watson Pharmaceuticals

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-20-07		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 32.35

3.   RIO - Companhia Vale do Rio Doce

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-20-07		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 45.79

Previous Trades

IR - Ingersoll-Rand

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-19-07		Long	55.07	55.85	Below 54.15	up to + 21 cents per share (55.28)
	* 06-19-07 - stock gapped down

MTRX - Matrix Service

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-19-07	06-19-07	Long	28.24	Reached (28.44)	Closed Below 28.24	up to + 21 cents per share (28.45)

JNS - Janus Capital Group

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-19-07		Long	29.01	29.31	Below 28.57	up to + 10 cents per share (29.11)

ONXX - Onyx Pharmaceuticals

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-19-07		Short	28.83	27.85	Above 29.95	up to + 2 cents per share (28.81)
	* 06-19-07 - stock gapped up

ACAS - American Capital Strategies

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

MA - MasterCard

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-18-07		Long	161.84	Reached (165.31)	Below 161.51	up to + $5.37 per share (167.21)

WRNC - Warnaco Group

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-18-07		Long	37.09	37.58	Below 36.76	up to + 16 cents per share (37.25)

MRO - Marathon Oil

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-15-07	06-19-07	Long	65.64 (split)	Reached 66.50 (split)	Closed Below 64.53 (split)	up to + $1.40 per share(67.04)(split)
	* 06-19-07 - the stock gapped down past our stop at the open forcing us to set an emergency stop just below 64.53 (15min low). The emergency stop was then hit, closing the trade.

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 20.50	up to + $2.32 per share (21.90)