Dow - 5.45    I  Nasdaq + 3.02    I  S&P 500 - 0.63    

Market Wrap
(Briefing):

Nearly one year ago to the day after the Fed snapped its streak of 17 straight rate hikes by leaving its benchmark rate unchanged, policy makers were unmoved yet again at their latest gathering Thursday. When a volatile afternoon session finally came to a close, stocks too were left relatively unchanged.

Per usual, when Fed officials meet to discuss monetary policy, neither buyers nor sellers were initially willing to make any concerted bets until they had a chance to sift through the closely-watched FOMC statement. As expected, policy makers left rates unchanged at 5.25% for an eighth straight time. The accompanying policy directive, though, did undergo some changes -- edits that were over-analyzed throughout the remainder of the day.

With core inflation deflating faster than the Fed has anticipated, the word "elevated" was removed. That gave market bulls a little something to hang their hat on. However, the directive went on to say that "sustained moderation in inflation pressures has yet to be convincingly demonstrated. The directive also reiterated that "the high level of resource utilization has the potential to sustain those pressures" and that inflation remains a predominent risk, hardly suggesting the Fed's tightening bias is any softer than it was at the last meeting.

Thus, nothing in the statement to suggest the FOMC is inclined to move the fed funds rate anytime soon, either up or down, was eventually interpreted as fairly neutral and ultimately gave investors little guiding influence about the short-term direction for equities.

Split industry leadership further underscored the market's lack of direction. Of the five sectors trading higher, Telecom turned in the best performance. A 0.9% advance in one of the least influential S&P sectors, though, was also accompanied by an average gain of less than 0.1% for the remaining four sectors barely finishing in positive territory.

More troubling was the fact that Energy not only paced the way lower but did so despite oil prices closing near nine-month highs. Crude for August delivery was up as much as 2.2% intraday and eclipsed the psychologically significant $70/bbl level for the first time since September. With nearly 14% of the Energy sector's 16% year-to-date advance coming in the second quarter, however, investors opted instead to take lock in some of those gains with Q1 coming to a close Friday.

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

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Today's Picks - June 29, 2007

1.   BIDU - Baidu.com

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-29-07		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 162.75

2.   HTZ - Hertz Global Holdings

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-29-07		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 26.83

3.   TSRA - Tessera Technologies

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-29-07		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 40.94

Previous Trades

SNDA - Shanda Interactive Entertainment

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-28-07		Long	30.47	Reached (30.63)	Below 30.47	up to + 53 cents per share (31.00)

WRNC - Warnaco Group

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-28-07	06-28-07	Long	38.98	Reached (39.06)	Closed Below 38.98	up to + 29 cents per share (39.27)

TNH - Terra Nitrogen

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

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 21.57	up to + 26 cents per share (21.81)
	* 06-27-07 - stock gapped down

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 17.25	up to + 92 cents per share (17.65)

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 102.53	up to + $4.82 per share (98.41)
	* 06-26-07 - stock gapped up * 06-28-07 - the stock gapped up past our stop at the open forcing us to set an emergency stop just above 103.62 (15min high). The emergency stop held and kept us in the trade.

RIMM - Research In Motion

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
06-26-07	06-28-07	Short	164.93	Reached (162.20)	Clsed Above 164.81	up to + $5.62 per share (159.31)
	* 06-26-07 - stock gapped up