Dow + 119.01    I  Nasdaq + 31.06    I  S&P 500 + 16.35    

Market Wrap
(Briefing):

Stocks rallied Friday after investors got some reassurance that forces are at work to help stem the contagion effect of the subprime mess on the world's largest economy.

However, with September earmarked as the worst month of the year for all three of the major averages, according to The Stock Traders Almanac, another light volume day left stocks vulnerable to some late-day profit taking that closed stocks at afternoon lows.

Well before the market opened, participants got wind of reports that President Bush was going to outline a plan designed to help subprime borrowers avoid foreclosure. That news provided a psychological boost around the globe, as evidenced by Hong Kong's Hang Seng Index surging 2.1% to a record high. It also sidelined any apprehensions about upcoming inflation data at 8:30 ET and what Fed Chairman Bernanke might or might not say in his speech at 10:00 ET.

With policy makers still eyeing key economic data to determine the proper course of action as it relates to monetary policy, the Fed's favored inflation gauge, the core-PCE index, rose just 0.1% (consensus 0.2%), which leaves the year-over-year increase at just 1.9% and within the Fed's "comfort zone."

That offered some additional encouragement as the market eagerly awaited prepared remarks from Fed Chairman Bernanke which, until news broke about Bush's proposal, was slated to be Friday's headliner.

Bernanke stayed the course with regard to his message on monetary policy, offering little to suggest that a rate cut is imminent. Nonetheless, investors eventually embraced the Fed Chairman's continued awareness of the credit turmoil by saying the Fed stands ready to provide more liquidity to the financial markets if needed and will act, if necessary, to ensure that economic growth does not deteriorate significantly.

All 10 sectors finished in positive territory, paced by a 1.7% gain in Consumer Discretionary. A similarly strong performance from the more heavily weighted Financial sector (+1.5%), though, was the source of support and assurance the market needed to fight off last-ditch efforts on the part of sellers to lock in some profits going into the long holiday weekend.

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

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Today's Picks - September 04 2007

1.   HES - Hess Corp

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
09-04-07		Long	Above 15 high By .28 cents	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 61.60

2.   HRS - Harris Corp

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
09-04-07		Long	Above 15 high By .28 cents	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 61.00

3.   EXM - Excel Maritime Carriers

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
09-04-07		Long	Above 15 high By .28 cents	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 43.16

4.   GRP - Grant Prideco

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
09-04-07		Long	Above 15 high By .28 cents	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 55.59

5.   FST - Forest Oil Corp

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
09-04-07		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 38.58

Previous Trades

SII - Smith International Inc

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
08-31-07		Long	66.49	Reached (67.33)	Below 66.49	up to + $1.16 per share (67.65)

NE - Noble Corp

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

AYE - Allegheny Energy Inc

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

INTC - Intel Corp

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
08-30-07		Long	25.27	Reached (25.21)	Below 25.53	up to + 35 cents per share (25.80)
	* 08-30-07 - stock gapped down

NOV - National Oilwell Varco Inc

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
08-30-07		Long	123.69	Reached (125.79)	Below 124.91	up to + $8.04 per share (131.73)
	* 08-30-07 - stock gapped down

MDR - McDermott International

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
08-30-07		Long	91.24	Reached (92.28)	Below 94.05	up to + $5.76 per share (97.00)
	* 08-30-07 - stock gapped down

RL - Polo Ralph Lauren

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
08-29-07		Long	73.29	Reached (74.64)	Below 73.48	up to + $2.71 per share (76.00)
	* 08-29-07 - stock gapped down