Dow - 14.39    I  Nasdaq - 2.92    I  S&P 500 - 4.85    

Market Wrap
(Briefing):

For a second straight session stocks failed to hold on to modest intraday gains after a sizable sell-off last week. Not even a handful of encouraging developments tied to the lingering subprime situation were enough to give the market a sustained boost.

Reports that Bear Stearns (BSC 139.60 +0.50) may put up only half ($1.6 bln) of what was indicated last week to rescue one of its troubled funds, and Lehman Brothers (LEH 74.26 -0.79) saying BSC's original $3.2 bln loan will not "materially impact" the brokerage's earnings were the initial catalysts setting the stage for a respectable rebound.

Then, around 12:00 ET, the U.S. House Financial Panel Chair said BSC's hedge fund problems won't lead to "financial meltdown" and Merrill Lynch (MER 84.51 +0.53) said that Bear's problems are overblown.

Nonetheless, the recent shift in market sentiment viewed the latest attempt by the market to bounce back as another selling opportunity.

Pimco's Bill Gross saying late in the day that subprime problems are spreading to other areas didn't help matters since his remarks coincided with further deterioration in market internals that eventually left stocks struggling to regain any upward momentum.

On the economic front, New Home Sales fell 1.6% in May; but downward revisions to the prior three months' figures further suggested that it's still too early to declare a bottom in housing.

Even though monthly confidence data don't say much about the economic outlook or correlate well with short-term consumer spending, the June report falling to a 10-month low merely underscored the sentiment shift that has occurred this month.

A 2.0% drop in oil prices to $67.80/bbl offered some intraday relief; but a subsequent pullback in the Energy sector to the tune of 1.5% acted as an offset. Materials turned in the day's second worst performance (-1.2%) among the nine sectors losing ground.

The only sector finishing higher was Health Care, yet its 0.7% advance further underscored a more risk averse market looking for defensive-oriented stocks.

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

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Today's Picks - June 27, 2007

1.   PMTC - Parametric Technology

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-27-07		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 21.48

2.   SSRI - Silver Standard Resources

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-27-07		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 33.25

3.   ATI - Allegheny Technologies

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-27-07		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 102.36

Previous Trades

QDEL - Quidel

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-26-07		Long	16.73	Reached (17.13)	Below 16.73	up to + 44 cents per share (17.17)

OSG - Overseas Shipholding Group

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

DO - Diamond Offshore Drilling

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-26-07		Short	103.23	Reached (101.60)	Above 103.23	up to + $3.62 per share (99.61)
	* 06-26-07 - stock gapped up

RIMM - Research In Motion

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-26-07		Short	164.93	162.20	Above 167.80	up to + $2.30 per share (162.63)
	* 06-26-07 - stock gapped up

TTEC - TeleTech Holdings

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-25-07	06-26-07	Short	30.35	29.60	Closed Above 31.24	up to - 96 cents per share (30.05 LOT)

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 51.39	up to + 40 cents per share (50.89)
	* 06-26-07 - the stock gapped up past our stop at the open forcing us to set an emergency stop just above 51.39 (15min high). The emergency stop held and kept us in the trade.

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 36.17	up to + $1.18 per share (36.84)
	* 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 27.30	up to + $2.23 per share (26.50)
	* 06-19-07 - stock gapped up