Dow - 8.21    I  Nasdaq - 11.88    I  S&P 500 - 4.82    

Market Wrap
(Briefing):

What was initially shaping up to be a decent and logical rebound given last week's sizable losses resulted in yet another session plagued by subprime concerns.

With the Dow, S&P 500 and Nasdaq plunging 1.8% on average last week, and the bulk of that coming on Friday, it was understandable to see some sort of a bounce. However, a rebound that had the Dow up nearly 129 points midday didn't last long as worries about the impact of subprime mortgages on the rest of the market resurfaced around 2:00 ET and prompted another sell-now-ask-questions later reaction across the board.

Eight of 10 sectors posted losses.

Today's reversal was first seen in Financials (-0.6%), led by a spike lower among Investment Banks (-1.3%) following several headlines pertaining to the near collapse of two Bear Stearns (BSC 138.23 -5.52) hedge funds.

CNBC highlighted the possibility for increased risk due to credit rating downgrades, citing a Citigroup research note that showed Goldman Sachs' (GS 216.68 -5.72) subprime mortgage bonds issued last year are being downgraded at the fastest rate of any issuer.

Adding insult to injury, a Merrill Lynch (MER 83.95 -0.53) analyst said he does not believe Bear Stearns has faced "a situation of this magnitude" in its two decades as a public company and that BSC may have to bail out another fund. BusinessWeek.com also chimed in, noting that SEC has started a preliminary inquiry into Bear Stearns' big restatement of losses at one of its troubled hedge funds.

Bond yields finished near session lows for a second straight session. However, with hedge-fund risk largely being attributed for another flight-to-quality bid in Treasuries, the yield on the 10-year note (+11/32) merely pulling back to 5.08% did little to comfort investors.

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

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Today's Picks - June 26, 2007

1.   QDEL - Quidel

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-26-07		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 16.59

2.   OSG - Overseas Shipholding Group

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-26-07		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 82.49

3.   DO - Diamond Offshore Drilling

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-26-07		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 103.30

4.   RIMM - Research In Motion

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-26-07		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 165.00

Previous Trades

DO - Diamond Offshore Drilling

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

TTEC - TeleTech Holdings

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-25-07		Short	30.35	29.60	Above 31.24	up to + 30 cents per share (30.05)

NCR - NCR Corp

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-25-07		Short	51.29	Reached (51.01)	Above 51.29	up to + 40 cents per share (50.89)

AKS - AK Steel Holding

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-22-07	06-25-07	Long	37.38	Reached (38.28)	Closed Below 37.38	up to + $1.07 per share (38.45)

GM - General Motors

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-21-07		Long	35.66	Reached (36.11)	Below 35.88	up to + $1.18 per share (36.84)
	* 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	06-25-07	Long	47.40	Reached (48.16)	Closed Below 47.40	up to + $1.47 per share (48.87)

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 27.45	up to + $2.22 per share (26.51)
	* 06-19-07 - stock gapped up