Indices
Dow + 43.50 at 10,557.39  I   Nasdaq + 0.96 at 2,144.11  I  S&P 500 + 1.08 at 1,223.29 

Market Wrap
(Briefing):

The market opened with little fanfare and closed in similar fashion, as split industry leadership and limited participation confined the market to a narrow trading range all day ahead of more influential reports... Sure, a solid report from Harley-Davidson (HDI 50.38 +0.68), which beat analysts' Q2 forecasts and raised EPS growth guidance to 10-13% (from 5-8%), helped validate the likelihood that Q2 aggregate earnings growth for the S&P 500 may in fact come in better (i.e. 9-10%) than the 7% expected... And certainly, the May trade deficit unexpectedly narrowing by 2.8% to $55.3 bln (consensus $57.0 bln), as exports rose to a new record, also improved underlying sentiment... However, market gains were modest at best, restricted almost exclusively to the Dow, as investors prepared to sift through earnings from large tech names - such as Apple Computer (AAPL 38.35 +0.11) and Advanced Micro Devices (AMD 19.25 -0.12) after the close - and the latest reads on inflation and consumption patterns in Thursday's CPI and retail sales data... Meanwhile, six of ten economic sectors closed higher, as Technology paced the way to the upside... Shares of IBM (IBM 81.45 +1.41) surged after Bernstein upgraded the stock to Outperform and raised their price target to $95 (from $92) due to valuation and improved earnings visibility, which also afforded competitors like HPQ (+1.3%) and DELL (+1.5%) with strong gains of their own... A 1.4% surge in Yahoo (YHOO 36.73 +0.50), after Legg Mason initiated coverage with a Buy rating and $42.50 target, also provided a boost, as did decent follow-through buying in chip stocks, as the PHLX Semi Index hit another 52-week high... Also providing some leadership was Financial, which got a boost after Bank of America (BAC 45.75 +0.44) was upgraded to Overweight at Morgan Stanley... Upbeat comments from BB&T Corp (BBT 41.95 +0.74) management, after the bank reported Q2 earnings of $0.75 a share in line with consensus estimates, also provided some support and helped offset another rise in bond yields... Bonds were weak all day heading into Thursday's CPI report and following a weaker than expected 5-yr note auction, as the benchmark 10-year note closed down 4 ticks to yield 4.15%... Another interest-rate sensitive sector showing relative strength was Utilities, as investors seeking income helped the Dow Jones Utilities Average hit another new 52-week earlier in the session... Telecom Services - in focus as former WorldCom CEO Bernard Ebbers was sentenced to 25 years in prison - posted a solid gain after shareholders approved Sprint's (FON 25.51 +0.19) $35 bln acquisition of Nextel (NXTL 32.96 +0.16)... The Industrials sector also traded higher, benefiting from a rebound in transportation, record exports in May and an analyst upgrade on Robert Half International (RHI 28.42 +1.76)... Health Care, however, paced the way lower... Abbott Labs (ABT 47.65 -2.06) beat analysts' Q2 expectations but issued downside Q3 guidance while HCA Inc. (HCA 50.05 -4.86) also warned, guiding Q2 earnings below consensus estimates... Reports of ongoing problems with recalled stents made by Boston Scientific (BSX 27.48 -0.38) also weighed on the sector... Materials closed lower as the greenback surged more than 1.0% against the euro (1.2086) and yen (111.86) following the unexpected drop in the U.S. trade deficit... Consumer Discretionary also finished to the downside amid analyst downgrades on Reebok (RBK 42.52 -0.67) and Dow Jones (DJ 36.48 -0.71) as well as profit-taking throughout the retail group... Tuesday, the S&P Retail Index (RLX 461.02 -2.94) closed at a historic high... Energy closed lower, in sympathy with a 1.0% decline in oil prices ($60.01/bbl -$0.61) following mixed inventories data... Crude supplies fell 3.9 mln barrels (consensus -2.8 mln) and gasoline stockpiles fell 2.6 mln barrels (consensus -1.0 mln) while distillates rose by 3.2 mln barrels (consensus +2.0 mln)... Only two of the Energy sector's 29 components closed higher, with Unocal (UCL 66.75 +0.84) turning in a strong performance amid reports that China's CNOOC may increase its $18.5 bln for UCL...NYSE Adv/Dec 1431/1829...NASDAQ Adv/Dec 1345/1706.

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

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Today's Picks - July 14, 2005

1.   UCL - UNOCAL CORP

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
07-14		Long	Above 15 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 66.79

2.   DPZ - DOMINOS PIZZA

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
07-14		Long	Above 15 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 24.15

3.   INTU - INTUIT

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
07-14		Long	Above 15 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 48.70

4.   SOV - SOVEREIGN BANCORP

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
07-14		Long	Above 15 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 24.53

5.   GOOG - GOOGLE

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
07-14		Long	Above 15 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 299.24

6.   FTO - FRONTIER OIL

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
07-14		Short	Below 15 min 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 28.75

7.   STJ - ST JUDE MED

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
07-14		Short	Below 15 min 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 43.34

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EOD = End of day.
LOD = Low of day.
PDC = Previous Day's Close.
S/R = Support/Resistance.
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