Dow + 114.54    I  Nasdaq + 13.26    I  S&P 500 + 8.42    

Market Wrap
(Briefing):

After stumbling out of the gate amid typical nervousness ahead of a two-day FOMC meeting, it didn't take long for the market's underlying bullish tone to resurface and again sideline those trying to fight the upward trend in equities, especially in large-cap names.

Among the few catalysts providing a floor of buying support Monday was another batch of better than expected earnings, renewed optimism about Wal-Mart's growth strategy, and another decline in oil prices.

The biggest name on monday's calendar was AT&T (T 34.71 +0.27), whose 74% year/year earnings growth plays into Overweight rating on Telecom and further supports another quarter of double-digit profit growth for the S&P 500. Over 70% of the more than 150 S&P 500 companies reporting quarterly results thus far have beaten expectations. That leaves aggregate Q3 operating earnings on pace to rise about 18%, above the 14% gain expected prior to the start of the earnings season.

However, the biggest news item among blue chips came from Wal-Mart (WMT 51.17 +1.80). The retailer surged 3.7% to a new 52-week high after saying it will significantly reduce capital expenditures to drive overall returns - an initiative that should lead to improved profitability.

Also helping the Dow close at a new record high was General Motors (GM 35.06 +1.72). The stock surged 5.7% to its best level in 12 months in anticipation it will turn in a surprisingly strong report tuesday following Ford Motor's (F 7.90 -0.11) widely expected disappointment this morning.

The other Dow component topping analysts' expectations monday was American Express (AXP 57.50 -0.54). The stock, which hit a 52-week high last Wednesday, dropped 2.8% after Q3 revenues checked in lighter than expected. AXP was one of only four Dow components to close lower.

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Today's Picks - October 24, 2006

1.   LTD - LIMITED BRANDS

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
10-24-06		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 29.23

2.   FDO - FAMILY DLR STORES

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
10-24-06		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 30.83

Previous Trades

SHLD - SEARS HLDGS

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
10-23-06		Long	175.05	175.92	Below 177.25	up to + $5.51 per share (180.56)
	* 10-23-06 - stock gapped down.

LH - LABORATORY CORP AMER HLDGS

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
10-23-06	10-23-06	Long	68.77	69.20	Closed below 68.22	up to - 61 cents per share (68.89 HOT)

CNI - CANADIAN NATL

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
10-19-06		Long	45.21	Reached (45.70)	Below 46.56	up to + $2.20 per share (47.41)

ICE - INTERCONTINENTAL EXCHANGE

Entry Date	Exit Date	Position	Entry Price	Target Price	Stop Price	Max P/L
10-17-06		Long	82.66	84.00	Below 80.95	up to + $1.14 per share (83.80)