Dow + 56.42    I  Nasdaq + 17.00    I  S&P 500 + 9.35    

Market Wrap
(Briefing):

It's official. Thursday marks the start of summer. Fortunately for the bulls, the doldrums that accompanied stocks earlier in the week, and wednesday's sell-off suggesting that the long-anticipated summer slowdown may finally be upon us, came to an end... for now.

It's no secret that the months of May-October have produced essentially a net zero gain for stock investors over the past fifty years. Nonetheless, the market's resilience Thursday in the face of rising interest rates, and oil prices flirting with the psychologically significant $70/bbl level intraday, was reminiscent of the bullish momentum behind a market rally that began nearly a year ago.

A day after the Dow, S&P 500 and Nasdaq plunged 1.2% on average, it wasn't surprising to see some of Wednesday's washout carry over into the opening bell. It was also understandable, though, to see investors view such a sizable market dip as overdone and merely providing another new entry point.

Among the nine sectors finishing the day with gains, Energy (+2.0%) turned in the best performance even as oil prices closed lower again. Crude for August delivery, which was up as much as 1.5% and within 12 cents of $70/bbl, fell 0.4% to $68.61/bbl. The commodity's early afternoon reversal without oil stocks sacrificing anything in the way of leadership provided some reassurance about the sector's earnings outlook as Q2 comes to a close next week.

Technology (+1.2%), though, was the day's biggest bright spot. Semiconductor Equipment (+2.6%) and Semiconductors (+2.5%) were among the day's top performers following analyst upgrades of Advanced Micro Devices (AMD 14.76 +1.12) and Nvidia (NVDA 42.98 +3.12).

Consumer Staples was another source of notable support. Packaged Foods (+2.6%) ranked among the day's best performing S&P industry groups as Tyson Foods (TSN 24.12 +1.12) spiked to a new 52-week high on takeover rumors.

Other M&A news included Equity Inns' (ENN 22.69 +3.33) decision to go private for $2.2 bln, including debt, while Luxottica Group (LUX 38.02 +3.18) agreed to acquire rival Oakley (OO 28.45 +3.22) for $2.1 bln in cash.

The Financial sector was also in focus again as the 10-year yield closed at session highs near 5.17% and the market eyed possible spillover from the near collapse of two Bear Stearns (BSC 145.81 +2.61) hedge funds. However, reports that Merrill Lynch (MER 87.25 -0.43) sold $100 mln of the $850 mln in BSC collateralized assets that were auctioned wednesday afternoon offered some assurance that BSC's subprime fallout will be contained. CNBC also reported that the upcoming Blackstone IPO, which is slated to be the sixth largest in U.S. history, may be as much as 10-12 times oversubscribed.

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

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Today's Picks - June 22, 2007

1.   AKS - AK Steel Holding

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-22-07		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 37.31

2.   SPIL - Siliconware Precision Industries

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-22-07		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 11.54

3.   ISIL - Intersil

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-22-07		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 33.65

Previous Trades

GM - General Motors

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-21-07		Long	35.66	36.11	Below 35.06	up to + 31 cents per share (35.97)
	* 06-19-07 - stock gapped down

GES - Guess Inc

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-21-07		Long	47.40	48.16	Below 46.50	up to + 10 cents per share (47.50)

MTRX - Matrix Service

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

SGP - Schering-Plough Corp

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

WPI - Watson Pharmaceuticals

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-20-07		Long	32.47	Reached (32.65)	Below 32.47	up to + 81 cents per share (33.28)

IR - Ingersoll-Rand

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-19-07	06-21-07	Long	55.07	Reached (55.85)	Closed Below 55.07	up to + $1.56 per share (56.63)
	* 06-19-07 - stock gapped down

ONXX - Onyx Pharmaceuticals

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-19-07		Short	28.83	Reached (27.85)	Above 28.31	up to + $1.37 per share (27.46)
	* 06-19-07 - stock gapped up

MA - MasterCard

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-18-07	06-21-07	Long	161.84	Reached (165.31)	Closed Below 161.08	up to + $7.56 per share (169.40)
	* 06-21-07 - the stock gapped down past our stop at the open forcing us to set an emergency stop just below 161.08 (15min low). The emergency stop was then hit, closing the trade.

WRNC - Warnaco Group

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-18-07	06-21-07	Long	37.09	37.58	Closed Below 36.85	up to - 31 cents per share (37.33 HOT)

OMTR - Omniture Inc

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-14-07	06-21-07	Long	19.58	Reached (19.85)	Closed Below 20.49	up to + $2.36 per share (21.94)