Dow - 185.58    I  Nasdaq - 28.00    I  S&P 500 - 19.63    

Market Wrap
(Briefing):

Stocks stumbled out of the gate Friday and trended lower throughout the session as renewed concerns about the impact of the subprime mortgage market prompted a sell-now-ask-questions later reaction across the board.

All three major averages plunged more than 1.0%; and nearly 90% of the S&P 500 lost ground.

Of the 10 sectors finishing lower, weakness throughout the Financial sector (-1.7%) was the biggest thorn in the market's side.

Bear Stearns (BSC 143.91 -1.90) providing $3.2 bln to bail out just one of its two troubled hedge funds, and failing to downplay the impact of its subprime fallout, intensified fears of widespread markdowns. The Investment Banks group (-2.6%) was among Friday's worst performing S&P industry groups.

As the most heavily weighted of all S&P 500 sectors, accounting for nearly 22% of the total weighting on the broader market, it's easy to see why the absence of leadership from Financials was very problematic. Briefing.com downgraded the sector to Underweight in mid-April.

On a positive note, bond yields closed at session lows. However, with hedge-fund risk being attributed for the flight-to-quality bid in Treasuries, there was little comfort in that move. With the 10-year note yield still hovering above 5.00% (now 5.13%), market momentum has faded.

Meanwhile, the widely touted IPO of The Blackstone Group (BX 35.06 +4.06) finally came to fruition Friday. Its stock opened up about 18% at $36.45. BX ended with a 13% gain, which was respectable considering the market sell-off.

Utilities (-1.8%) actually turned in the day's worst performance, and was one of seven sectors posting a decline of at least 1.0%. The Materials sector was the best of the worst; but it still fell 0.7%.

With the Russell 1000 expected to get at least $15 bln in new money Friday, and those investment dollars having to come from somewhere, the annual rebalancing of the Russell indexes exacerbated the broad-based move to the downside.

As an aside, heavy call buying in Harley-Davidson (HOG 62.85 +2.73) and Macy's (M 41.64 +2.77) raised speculation they are being sought after as takeover targets. Fittingly, Motorcycles (+4.5%) and Department Stores (+0.8%) were on Friday's very limited list of winners.

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

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Today's Picks - June 25, 2007

1.   DO - Diamond Offshore Drilling

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-25-07		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 107.29

2.   TTEC - TeleTech Holdings

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-25-07		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 31.20

3.   NCR - NCR Corp

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-25-07		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 51.32

Previous Trades

AKS - AK Steel Holding

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-22-07		Long	37.38	Reached (38.28)	Below 37.38	up to + $1.07 per share (38.45)

SPIL - Siliconware Precision Industries

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

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
	* did not setup

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 35.20	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	Reached (48.16)	Below 47.40	up to + $1.47 per share (48.87)

WPI - Watson Pharmaceuticals

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-20-07	06-22-07	Long	32.47	Reached (32.65)	Closed Below 32.47	up to + 81 cents per share (33.28)

- 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 27.73	up to + $2.07 per share (26.76)
	* 06-19-07 - stock gapped up