Dow + 17.64    I  Nasdaq + 1.12    I  S&P 500 + 0.30    

Market Wrap
(Briefing):

A day that started on a bearish note ended up sending the bulls into the weekend on a feel-good note.

The short and sweet of it is that the Dow, Nasdaq and S&P 500 were down 101, 23 and 11 points, respectively, in the first 15 minutes of trading as liquidity concerns linked to reports of the Bank of England providing emergency funding to Northern Rock, the U.K.'s third biggest mortgage lender, Merrill Lynch downgrades of Intel (INTC 24.93, -0.42) and American Express (AXP 58.94, -1.66), and weaker than expected retail sales and industrial production reports for August, prompted a broad-based wave of profit taking.

Consistent with this week's bias, though, stocks caught a bid and recouped just about all of those losses before mid-day. They then held their ground throughout the session and finagled a positive finish on some late-day buying interest.

There wasn't any specific news catalyst for the reversal, but the resilience to early selling activity and the recognition that the economic data weren't that bad proved to be an igniting factor for Friday's participants who, based on NYSE volume of just 1.20 billion shares, were limited in number.

Basic materials (+0.7%) was the best-performing of the 10 economic sectors while telecom services (-0.6%) brought up the rear. Although the market made up a lot of lost ground, it couldn't make much headway from the unchanged mark because of the lack of involvement of the financial (-0.04%), technology (-0.3%) and health care (-0.2%) sectors, which comprise roughly 50% of the S&P's market capitalization.

We would note that there were takeover rumors Friday surrounding several stocks. Those rumors were indeed questionable when taking into account the light volume that makes it easier to move stocks on a day like Friday and that next week brings a quadruple witching options expiration.

For the week the Dow, Nasdaq and S&P 500 gained 2.5%, 1.4% and 2.1%.

Next week brings a slate of key happenings, the biggest of which is Tuesday's FOMC meeting. Separately, several investment banks will be reporting their quarterly results while the economic calendar features the telling PPI, CPI and Housing Starts reports.

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

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Today's Picks - September 17 2007

1.   MIR - Mirant Corp

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
09-17-07		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 41.19

2.   UTX - United Technologies Corp

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
09-17-07		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 76.37

3.   K - Kellogg Co

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
09-17-07		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 56.21

Previous Trades

HCBK - Hudson City Bancorp

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
09-14-07		Long	14.65	Reached (14.69)	Below 14.65	up to + 10 cents per share (14.75)

FCX - Freeport McMoRan Copper & Gold Inc

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
09-14-07	09-14-07	Long	96.61	Reached (98.03)	Closed Below 96.61	up to + $1.75 per share (98.36)
	* 09-14-07 - stock gapped down

PAYX - Paychex 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

TMO - Thermo Fisher Scientific

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
09-13-07	09-14-07	Long	56.06	Reached (56.26)	Closed Below 55.47	up to - 40 cents per share (56.59 HOT)
	* 09-14-07 - the stock gapped down past our stop at the open forcing us to set an emergency stop just below 55.47 (15min low). The emergency stop was then hit, closing the trade.

JEC - Jacobs Engineering Group

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
09-13-07		Long	70.07	Reached (70.39)	Below 70.07	up to + $1.76 per share (71.83)
	* 09-14-07 - the stock gapped down past our stop at the open forcing us to set an emergency stop just below 69.88 (15min low). The emergency stop held keeping us in the trade.

CAM - Cameron International

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
09-12-07	09-14-07	Long	87.74	88.84	Closed Below 87.00	up to - 81 cents per share (88.54 HOT)
	* 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 18.83	up to + 77 cents per share (19.40)
	* 09-13-07 - stock gapped down

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 128.91	up to + $13.43 per share (126.60)
	* 09-06-07 - stock gapped up