Monday Close

S&P 500 1,145.20 +.52%
NASDAQ 2,065.48 +.61%

Leading Sectors
Nanotechnology +2.54%
Oil Service +2.43%
Energy +1.83%

Lagging Sectors
Airlines -1.22%
Utilities -1.69%
Homebuilders -1.73%

Other
Crude Oil 37.74 -.26%
Natural Gas 5.99 -.23%
Gold 421.00 +.02%
Base Metals 111.52 unch.
U.S. Dollar 88.93 -.02%
10-Yr. Long-Bond Yield 4.23% +.94%
VIX 15.28 -6.03%
Put/Call .75 +5.63%
NYSE Arms .81 -2.41%

After-hours Movers
MACE +32.50% on continued mania in small/mid-cap security-related stocks.
NVLS +3.72% after beating 1Q estimates and raising 2Q guidance.
IFIN +5.73% after beating 1Q estimates and raising 04 guidance.
TSCO +5.92% after substantially beating 1Q estimates and raising 2Q and 04 guidance.
NVTL +8.50% after boosting 1Q/2Q estimates.
TSO +9.96% after significantly raising 1Q estimates.
EVOL -13.95% after lowering 1Q guidance.

Recommendations
Goldman Sachs upgraded the Telecom Services sector to Neutral. GS reiterated Outperform on GCI, SVU and EQT.

After-hours News
U.S. stocks finished higher on strong earnings reports and gains in the energy sector. The world's top 14 knowledge economies are all in the U.S., San Francisco being number 1, the Financial Times reported. The interim Iraqi Governing Council is in talks with rebels in Fallujah to end a week of fighting with U.S. troops, and the U.S. is waiting for attacks to subside before entering the negotiations, American commanders said today. CALPERS will withhold votes to reelect Citigroup Chairman Sanford Weill and directors at Coca-Cola and 10 other companies, aiming to improve corporate governance by protesting the makeup of company boards.

BOTTOM LINE: The Portfolio had a good day as my homebuilding shorts continue to fall and technology longs rose. I began to initiate a few shorts in the security-related stocks. I am using tight stop losses and relatively small positions as these stocks are in a mania reminiscent of the internet bubble. I also added a couple of tech long positions on the close, thus leaving the Portfolio's market exposure at 75% net long.