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Market Wrap
(Briefing):

Concerns about a consumer spending slowdown permeated the market on Tuesday following disappointing earnings/sales updates from several companies with a high profile in the consumer discretionary sector (-1.2%). Still, the broader market ended the day relatively flat.

The companies of note included home improvement retailer Lowe's (LOW 28.51, -2.04), which tempered its full-year EPS outlook, value-based retailer Target (TGT 61.35, -2.95), which cut its September same-store sales growth forecast to 1.5% to 2.5% from 4.0% to 6.0% citing weak traffic, and homebuilder Lennar (LEN 23.22, -0.96), which reported a third quarter loss of $3.25 per share versus the consensus estimate for a loss of $0.55 per share.

Lennar added that it will be cutting more staff in the fourth quarter and that recent rate cuts from the Fed won't be a panacea for housing conditions as they now exist. On a related note, the National Association of Realtors reported that existing home sales in August fell 4.3% to an annualized rate of 5.50 million units. That was in line with the consensus estimate and a further reminder of the ongoing weakness in the housing market.

The confluence of these developments, combined with the lingering weakness in General Motors (GM 34.42, -0.32) following the UAW strike and a report of a dip in the September consumer confidence index to 99.8 from 105.6 in August, kept the discretionary sector underwater all day. One bright note is that the sector finished off its lows, but that finish belies what was an otherwise weak outing.

Another drag on the broader market was the energy sector (-0.9%). It got clipped along with oil prices, which dropped 1.8% to $79.50 per barrel. The decline was attributed to profit-taking from an overbought condition and a lessening of near-term supply concerns after a weekend storm passed through the Gulf of Mexico without incident.

Strength in the technology sector (+1.0%) acted as an effective offset that limited the broader market's losses. Once again, participants were favoring large-cap issues like Apple (AAPL 153.18, +4.90), Research In Motion (RIMM 96.82, +2.32), Microsoft (MSFT 29.56, +0.48) and Cisco (CSCO 32.44, +0.56) given their favorable growth outlook.

The Nasdaq 100 ended the session up 1.0%.

Outside of the technology and consumer discretionary sectors, there weren't any other 1.0% movers. The financial sector (-0.3%), though, was a notable laggard as concerns about the economic environment and broad-based weakness in the REIT stocks weighed on its performance.

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

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Today's Picks - September 26 2007

1.   STX - Seagate Technology

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
09-26-07		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 26.63

2.   ADI - Analog Devices Inc

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
09-26-07		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 37.18

3.   CEN - Ceridian Corp

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
09-26-07		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 33.89

Previous Trades

NBL - Noble Energy Inc

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

RIO - Companhia Vale do Rio Doce

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
09-25-07		Long	31.89	32.82	Below 30.82	up to + 15 cents per share (32.04)
	* 09-25-07 - stock gapped down

GRMN - Garmin Ltd

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
09-25-07		Long	115.24	Reached (116.06)	Below 115.24	up to + $4.76 per share (120.00)
	* 09-25-07 - stock gapped down

EXM - Excel Maritime Carriers Ltd

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
09-24-07		Long	53.67	Reached (55.41)	Below 53.61	up to + $5.43 per share (59.10)
	09-24-07 - our stop of 53.60 (7 cents below 53.67 our entrance price) kept us in the trade and into profits of up to + $5.43 per share despite the fact that the stock traded 1 cent above our stop during the first 15 minutes of trading!

CELG - Celgene Corp

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
09-24-07	09-25-07	Long	70.78	Reached (71.37)	Closed Below 70.78	up to + 1.45 per share (72.23)
	* 09-24-07 - stock gapped down

FRO - Frontline Ltd