Monday, June 07, 2004

Monday Close

S&P 500 1,140.42 +1.60%
NASDAQ 2,020.62 +2.12%

Leading Sectors
Homebuilders +4.55%
Gaming +4.14%
Semis +3.68%

Lagging Sectors
Fashion +.57%
Restaurants +.45%
Broadcasting +.14%

Crude Oil 38.89 +.59%
Natural Gas 6.25 +.72%
Gold 394.70 +.05%
Base Metals 108.12 +1.75%
U.S. Dollar 88.22 -.03%
10-Yr. T-note Yield 4.76 -.21%
VIX 15.39 -8.28%
Put/Call .81 -18.18%
NYSE Arms .34 -46.87%

After-hours Movers
ATRM +5.76% after announcing that the Board of Directors has decided to explore various strategic alternatives for the company to maximize shareholder value.
REMC +12.39% after announcing it had received an initial $9.9 million production contract from Raytheon Missle Systems for the TOW upgrade program.
CYMI -4.83% after saying it expects second quarter 04 revenue to increase at the lower half of its prior guidance range and margins to grow at the upper end of the prior range.

Goldman reiterated Outperform on IGT, KO, PFE and HD. Goldman reiterated Underperform on BMY. Jim Cramer, of, has another positive column on KMRT, saying it still isn't too late to buy.

After-hours News
U.S. stocks finished sharply higher today, sending benchmarks to six-week highs, on optimism over employment growth, stabilizing interest rates and declining energy prices. After the close, Japan's Prime Minister Koizumi said he believes North Korean leader Kim Jong Il is sincere in his aim to dismantle his country's nuclear program, the Financial Times said. Home Depot will set up a business-development office in China to prepare for its entry into the world's most populous market, Bloomberg report. Mandalay Resort Group's stock price rose above MGM Mirage's $68 a share bid for the company, signaling that investors expect MGM majority owner Kirk Kerkorian to increase his offer, Bloomberg said. Two engines from Iraqi surface-to-air missles, including one from an Al Samoud 2 missle banned by the UN, have turned up in a scrap yard in the Netherlands, Bloomberg reported. Texas Instruments narrowed its second-quarter sales forecast and said demand for its products is "slightly exceeding" projections, Bloomberg reported.

BOTTOM LINE: The Portfolio rose today on afternoon strength in my semiconductor and telecom equipment long positions. I exited a few of my biotech longs today as they hit stop-loss points and added a few new industrial, Chinese ADR and telecom equipment longs, leaving the Portfolio with 125% net long market exposure. One of my new longs is NTE and I am using an $18.50 stop-loss on the position. Volume for the major indices continues to disappoint, however advancing volume was 5 times greater than declining volume on the NASDAQ and breadth was very positive. Every sector I follow was up today. As well, the NASDAQ 100 broke convincingly up through its recent downtrend line. It was also very positive that U.S. stocks rose substantially and bonds didn't fall. I expect the revised estimate of Japanese GDP growth to exceed expectations tonight which should boost Asian shares and provide the catalyst for further positive action in U.S. stocks tomorrow.

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