Dow - 16.74    I  Nasdaq - 5.40    I  S&P 500 + 0.07    

Market Wrap
(Briefing):

In the wake of Tuesday's sizable gains, the stock market managed to hold its ground for the most part on Wednesday despite oil prices flirting with $80 per barrel and relatively disappointing third quarter updates from Texas Instruments (TXN 35.12, -0.60) and Nucor (NUE 53.46, -0.08).

The resilience was owed to buyers favoring large-cap issues Wednesday, as their heavyweight status helped offset the drag from small-cap and mid-cap stocks.

The latter issues, frankly, weren't all that weak. The S&P 600 Smallcap Index and S&P 400 Midcap Index were down just 0.5% and 0.1%, respectively. That standing pretty much typified Wednesday's action as there weren't many big movers. In fact, there wasn't a single S&P sector that closed the session up, or down, more than 1.0%.

Energy (+0.8%) took the blue ribbon Wednesday as it jumped in conjunction with oil prices (+$1.54 to $79.77). That spike was driven by the government's report that oil inventories fell in the latest week of reporting by 7.01 million barrels. Analysts had been expecting a drawdown of only 2.7 million barrels.

Technology (-0.6%) ended the session as the worst-performing area. Its retreat was paced by the semiconductor stocks, which ran into selling interest after Texas Instruments simply narrowed its third quarter EPS and revenue guidance from its prior estimates (i.e., it raised the low end and lowered the high end of its guidance ranges). Many participants had been hoping for more after Intel (INTC 25.46, -0.20) raised its guidance earlier in the week.

The financial sector (-0.2%) joined the tech sector on the list of underperformers. Weakness in those areas, though, was ultimately offset by the gains in the energy, health care (+0.3%), utilities (+0.3%), industrials (+0.2%) and consumer staples (+0.1%) sectors.

Dow component Procter & Gamble (PG 67.31, +0.32) was a standout in the staples arena, and in the broader market, as it hit a new all-time high.

At the end of the day, though, the S&P 500 closed the session virtually flat in another low volume session where just under 1.3 billion shares changed hands at the NYSE. That is fitting given the wait-and-see attitude that seems to be gaining in prominence ahead of next week's earnings reports from the investment banks and the FOMC meeting.

On Thursday there aren't any earnings reports of consequence, but look for McDonald's (MCD 51.20, -0.56) to be a standout. After Wednesday's close, the Dow component announced a 50% increase in its annual cash dividend per share to $1.50 from $1.00.

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

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Today's Picks - September 13 2007

1.   EQIX - Equinix Inc

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
09-13-07		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 83.52

2.   TMO - Thermo Fisher Scientific

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
09-13-07		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 55.80

3.   JEC - Jacobs Engineering Group

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
09-13-07		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 69.67

Previous Trades

NOV - National Oilwell Varco

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
		Long	Above 15 high	Sell 1/2 once risk covered	Below LOD at time of setup
	* did not setup

CAM - Cameron International

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
09-12-07		Long	87.74	88.84	Below 86.50	up to + 76 cents per share (88.50)
	* 09-13-07 - stock gapped down

SMTC - Semtech

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
09-12-07		Long	18.63	Reached (18.75)	Below 18.63	up to + 66 cents per share (19.29)
	* 09-13-07 - stock gapped down

BIDU - Baidu.com Inc

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
09-12-07	09-12-07	Long	227.61	Reached (228.93)	Closed Below 227.61	up to + $1.54per share (229.15)
	* 09-13-07 - stock gapped down

ADCT - ADC Telecommunications

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
09-11-07	09-12-07	Long	20.81	21.06	Closed Below 20.41	up to - 72 cents per share (20.98 HOT)

AKS - AK Steel Holding

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
09-10-07		Short	38.68	Reached (37.76)	Above 38.69	up to + $1.50 per share (37.18)
	* 09-10-07 - stock gapped up. * 09-11-07 - the stock gapped up past our stop at the open forcing us to set an emergency stop just above 39.40 (15min high). The emergency stop held, keeping us in the trade.

ICE - IntercontinentalExchange Inc

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
09-06-07		Short	140.03	Reached (138.04)	Above 133.58	up to + $10.23 per share (129.80)
	* 09-06-07 - stock gapped up