Monday, September 18, 2006

Stocks Finish Mixed, Consolidating Recent Gains

Indices
S&P 1,321.18 +.10%
DJIA 11,550.00 -.05%
NASDAQ 2,235.75 +.01%
Russell 2000 728.84 -.07%
Wilshire 5000 13,204.28 +.08%
S&P Barra Growth 614.53 +.07%
S&P Barra Value 704.30 +.13%
Morgan Stanley Consumer 648.07 -.42%
Morgan Stanley Cyclical 818.59 +.34%
Morgan Stanley Technology 522.25 +.05%
Transports 4,430.86 +.62%
Utilities 425.20 -.17%
Put/Call .98 +20.99%
NYSE Arms .75 -35.10%
Volatility(VIX) 11.78 +.17%
ISE Sentiment 80.00 +14.29%
US Dollar 85.78 -.23%
CRB 308.15 +.36%

Futures Spot Prices
Crude Oil 63.84 +.81%
Unleaded Gasoline 158.00 +.32%
Natural Gas 4.98 -.02%
Heating Oil 172.75 +1.48%
Gold 592.30 -.08%
Base Metals 220.39 -1.06%
Copper 341.00 -.13%
10-year US Treasury Yield 4.80% +.33%

Leading Sectors
Oil Service +3.24%
Gold & Silver +3.08%
Energy +2.60%

Lagging Sectors
Gaming -1.17%
Hospitals -1.23%
HMOs -1.51%

Evening Review
Detailed Market Summary
Market Gauges
Daily ETF Performance
Style Performance
Market Wrap CNBC Video(bottom right)
S&P 500 Gallery View
Economic Calendar
Timely Economic Charts
GuruFocus.com
PM Market Call
After-hours Movers
Real-time/After-hours Stock Quote
In Play

Afternoon Recommendations
Deutsche Bank:
- Rated (MVSN) Buy, target $30.

Citigroup:
- Rated (BNI) Buy, target $85.
- Rated (CNI) Buy, target $85.
- Rated (CSX) Buy, target $39.
- Rated (NSC) Buy, target $52.

Afternoon/Evening Headlines
Bloomberg:
- US gasoline at the pump fell for a sixth straight week, dropping 12.1 cents to a nationwide average of $2.49/gallon., a government report showed.
- Target Corp.(TGT) said September sales will rise around 5% versus prior estimates of a gain of 3-5%.
- Natural gas fell for the fourth day in five in NY with inventories of the furnace and power-plant fuel at a record high for this time of year.
- T-Mobile USA, Verizon Wireless and a partnership of cable companies were the highest bidders in a US government sale of airwaves that raised $13.9 billion.
- Mining companies including BHP Billiton(BHP) and Rio Tinto(RTP) may increase spending on exploration by 45% to $7.1 billion this year, a study by Metals Economics Group shows.

Washington Times:
- A Chinese spy ring in Los Angeles that was gathering intelligence about US submarines went undetected for 20 years. When the FBI finally cracked down last October, squabbling between prosecutors and investigators undercut the case.

BOTTOM LINE: The Portfolio finished higher today on gains in my Internet longs, Medical longs and Semi longs. I did not trade in the final hour, thus leaving the Portfolio 100% net long. The tone of the market was neutral today as the advance/decline line finished slightly lower, sector performance was mixed and volume was above average. Measures of investor anxiety were mostly lower into the close. Overall, today's market performance was neutral. Today's trading had the post-expiration day feel to it. Volume was only around average levels. Commodity stocks and Semis were the best performers. The 10-year yield finished only slightly higher after an afternoon rally in bonds. Tomorrow's PPI should rise less than estimates of a 0.3% increase.

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