Dow + 90.07    I  Nasdaq + 31.19    I  S&P 500 + 13.45    

Market Wrap
(Briefing):

After struggling to find their footing throughout most of the day, stocks finally garnered some momentum late in the session as investors began to sense that the market had gotten oversold on a short-term basis. All three indices snapped a three-day losing streak and closed near their best levels of the day.

As evidenced by a 1.2% surge on the Nasdaq, it wasn't surprising to see the bulk of Wednesday's recovery effort getting a big boost from strength across the board in Technology. Semiconductor Equipment was the standout from a percentage basis but the sector got its initial lift from Oracle (ORCL 19.69 +0.53).

Last night, Oracle topped expectations and guided Q1 sales growth above analysts' forecasts, which helped restore confidence about the tech sector's prospects as a major contributor to aggregate EPS growth on the S&P 500 this year.

Of the other nine sectors trading higher, Energy was the only other to sport a gain of more than 1.0%. Crude for August delivery, which was down more than 1.0% in early action, surged 1.8% to $68.99/bbl after the EIA reported the first drop in distillate supplies in eight weeks.

An afternoon rally in Financials, though, was the more notable development as bargain hunters finally jumped back into the beaten-down sector.

Brokerage stocks (XBD +1.5%), which were down nearly 6% this month alone largely on subprime concerns, was a bright spot following several upbeat remarks from company executives. The sector's resilience in the face of a late-day reversal in Treasuries and ahead of Thursday's closely-watched Fed policy directive, which we believe will exclude the word "elevated" as it relates to inflation, was also noteworthy.

Bear Stearns (BSC 143.31 +3.96) said its franchise remains "sound," Merrill Lynch's (MER 86.27 +1.79) Chief said the risk of further fallout tied to subprime is "reasonably well contained," and Goldman Sachs' (GS 219.60 +5.43) CEO said private equity hasn't peaked.

Another round of M&A activity also offered some assurance about this year's record pace of deal making. CommScope (CTV 55.95 +0.79) said it will pay about $2.6 bln for Andrew Corp (ANDW 14.40 1.42) while Guitar Center (GTRC 59.98 +9.92) agreed to go private for $2.1 bln.

Separately, durable goods orders fell 2.8% in May and was initially seen as a negative. However, the drop was expected and understandable since orders were up a net 6.2% over the prior two months.

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

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Today's Picks - June 28, 2007

1.   SNDA - Shanda Interactive Entertainment

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-28-07		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 29.92

2.   WRNC - Warnaco Group

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-28-07		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 39.19

3.   TNH - Terra Nitrogen

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-28-07		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 120.11

Previous Trades

PMTC - Parametric Technology

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-27-07		Long	21.55	21.93	Below 21.03	up to + 26 cents per share (21.81)
	* 06-27-07 - stock gapped down

SSRI - Silver Standard Resources

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

ATI - Allegheny Technologies

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-27-07	06-27-07	Short	100.49	99.02	Closed Above 100.49	up to + $1.32 per share (99.17)
	* Please note: when you get this close to the target and the stock reverses, you have to take some profits.

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 16.74	up to + 77 cents per share (17.50)

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 102.58	up to + $4.82 per share (98.41)
	* 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	Reached (162.20)	Above 164.81	up to + $5.62 per share (159.31)
	* 06-26-07 - stock gapped up

NCR - NCR Corp

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-25-07	06-27-07	Short	51.29	Reached (51.01)	Closed Above 51.39	up to + 50 cents per share (50.79)
	* 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	06-27-07	Long	35.66	Reached (36.11)	Closed Below 36.17	up to + $1.18 per share (36.84)
	* 06-21-07 - stock gapped down

ONXX - Onyx Pharmaceuticals

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-19-07	06-27-07	Short	28.83	Reached (27.85)	Closed Above 27.30	up to + $2.25 per share (26.48)
	* 06-19-07 - stock gapped up