Weekly Scoreboard*

Indices
S&P 500 842.50 +3.26%
DJIA 8,017.59 +3.10%
NASDAQ 1,621.87 +4.96%
Russell 2000 456.13 +6.32%
Wilshire 5000 8,521.36 +3.66%
Russell 1000 Growth 373.34 +3.58%
Russell 1000 Value 426.64 +3.34%
Morgan Stanley Consumer 515.43 +2.46%
Morgan Stanley Cyclical 434.24 +8.28%
Morgan Stanley Technology 396.70 +7.38%
Transports 2,978.32 +7.21%
Utilities 337.31 +1.82%
MSCI Emerging Markets 27.07 +5.49%

Sentiment/Internals
NYSE Cumulative A/D Line 20,162 +26.38%
Bloomberg New Highs-Lows Index -137 -2.24%
Bloomberg Crude Oil % Bulls 15.0 -50.0%
CFTC Oil Large Speculative Longs 184,850 -4.16%
Total Put/Call .77 -14.44%
OEX Put/Call 1.30 +51.16%
ISE Sentiment 93.0 -29.0%
NYSE Arms .57 -70.31%
Volatility(VIX) 39.70 -3.27%
G7 Currency Volatility (VXY) 16.27 -6.17%
Smart Money Flow Index 7,690.30 +3.01%
AAII % Bulls 42.66 +9.02%
AAII % Bears 37.06 -12.57 %

Futures Spot Prices
Crude Oil 52.51 +.21%
Reformulated Gasoline 149.24 -.37%
Natural Gas 3.80 +1.04%
Heating Oil 144.60 +.44%
Gold 896.60 -2.97%
Base Metals 122.31 +4.05%
Copper 199.15 +9.14%
Agriculture 303.69 +6.91%

Economy
10-year US Treasury Yield 2.89% +13 basis points
10-year TIPS Spread 1.40% -3 basis points
TED Spread 96 -13 basis points
N. Amer. Investment Grade Credit Default Swap Index 193.80 +6.78%
Emerging Markets Credit Default Swap Index 555.60 -8.17%
Citi US Economic Surprise Index -14.60 -108.57%
Fed Fund Futures imply 86.0% chance of no change, 14.0% chance of 25 basis point cut on 4/29
Iraqi 2028 Govt Bonds 50.36 -.40%
4-Wk MA of Jobless Claims 656,800 +1.0%
Average 30-year Mortgage Rate 4.78% -7 basis points
Weekly Mortgage Applications 1,194,400 +3.02%
Weekly Retail Sales -1.1%
Nationwide Gas $2.04/gallon +.01/gallon
US Heating Demand Next 7 Days 30.0% above normal
ECRI Weekly Leading Economic Index 106.70 +.47%
US Dollar Index 84.16 -1.11%
Baltic Dry Index 1,538 -8.34%
CRB Index 229.93 +3.0%

Best Performing Style
Small-cap Value +7.44%

Worst Performing Style
Large-cap Value +3.33%

Leading Sectors
REITs +17.06%
Gaming +12.07%
Steel +10.47%
Wireless +10.01%
Internet +9.0%

Lagging Sectors
Drugs -1.30%
Oil Tankers -1.67%
Biotech -2.68%
Education -5.77%
Gold -6.77%

One-Week High-Volume Gainers

One-Week High-Volume Losers

*5-Day Change

Stocks Finish at Session Highs, Boosted by REIT, Gaming, Homebuilding, Financial, Technology and Oil Service Shares

Evening Review
Market Summary
Top 20 Biz Stories
Today’s Movers
Market Performance Summary
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Sector Performance
ETF Performance
Style Performance
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After-hours Commentary
After-hours Movers
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In Play

Stocks Consolidating Recent Gains into Final Hour

BOTTOM LINE: The Portfolio is higher into the final hour on gains in my Technology longs and Biotech longs. I have not traded today, thus leaving the Portfolio 100% net long. The tone of the market is mildly positive as the advance/decline line is slightly higher, sector performance is mixed and volume is about average. Investor anxiety is above average. Today’s overall market action is bullish. The VIX is falling 3.40% and is very high at 40.61. The ISE Sentiment Index is low at 95.0 and the total put/call is slightly below average at .78. Finally, the NYSE Arms has been running around average most of the day, hitting 1.44 at its intraday peak, and is currently .64. The Euro Financial Sector Credit Default Swap Index is dropping 3.94% today to 162.33 basis points. This index is down from its record March 10th high of 208.75. The North American Investment Grade Credit Default Swap Index is rising .13% to 193.80 basis points. This index is still below its Dec. 5^th record high of 285.99. The TED spread is rising .01% to 96 basis points. The TED spread is now down 367 basis points since its all-time high of 463 basis points on October 10th. The 2-year swap spread is up .7% to 57.0 basis points. The Libor-OIS spread is falling .71% to 95 basis points. The 10-year TIPS spread, a good gauge of inflation expectations, is up 7 basis points to 1.41%, which is down 123 basis points since July 7th. The 10-year TIPS spread bottomed at .65% in October 1998 during the Asian financial crisis and at 1.24% in October 2001 during the technology bubble-bursting meltdown. The 3-month T-Bill is yielding .20%, which is unch. today. Today’s broad market action is another healthy consolidation of recent gains. (IYR) is soaring another 7% today, which is a large positive. One of my longs, (MS), had been a drag on the financial sector, but has reversed 2% higher to session highs. The action in shares of (RIMM) should also be disturbing to the many bears. As of yesterday the short interest ratio in shares of RIMM was at a 7-month high. The VIX is at the lower end of its trading range and appears poised for a technical breakdown, which would be another positive. On the other hand, Gold trades poorly in the face of an imminent launch of North Korea’s rocket and recent dollar weakness. The hedge fund favorite is back to levels seen before the Fed’s quantitative easing announcement. Nikkei futures indicate an +150 open in Japan and DAX futures indicate an +36 open in Germany on Monday. I expect US stocks to trade modestly higher into the close from current levels on short-covering, lower credit market angst, less economic fear and diminishing financial sector pessimism.

Today's Headlines

Bloomberg:

- The cost of borrowing in dollars in London fell for a sixth day as signs the worst of the global financial turmoil may be over made banks less wary of lending. The London interbank offered rate, or Libor, that banks say they charge each other for three-month loans dropped half a basis point to 1.16 percent today, the British Bankers’ Association said, bringing its decline in the past three weeks to 16 basis points. The Libor-OIS spread, a measure of the reluctance of banks to lend, was little changed at 94 basis points, down from 98 basis points on March 27. Libor dropped every day this week as reports showed U.S. consumer spending stabilized in the first two months of the year and home sales rose in February.

- The U.S. and Germany led declines in the cost of hedging against losses on government debt as investors speculated the Group of 20 policy makers’ summit will help ease the global credit crisis. Credit-default swaps linked to U.S. Treasuries fell 10.5 basis points to 50, the lowest since Dec. 1, according to CMA DataVision prices.

- U.S. Federal Reserve Chairman Ben S. Bernanke is delivering what he promised five months ago, record- low mortgage rates and a refinancing boom that’s putting cash in consumers’ pockets. Fixed 30-year mortgage rates fell to a record low for the second consecutive week last week, hitting 4.78 percent, Freddie Mac said yesterday in a statement. The rates are the lowest in records dating to 1971, and come after Bernanke told Congress in November that helping the most creditworthy borrowers was essential to reviving the economy. Mortgage applications in the U.S. rose for the fourth straight week last week as a decline in borrowing costs spurred homeowners to refinance, while purchases of new houses unexpectedly rose in February. The Fed’s effort to bring down fixed rates may give consumers as much as $25 billion, said Mark Zandi, chief economist of Moody’s Economy.com. “It certainly gives further fuel to consumer spending,” said Nicolas Retsinas, director of Harvard University’s Joint Center for Housing Studies in Cambridge, Massachusetts. “It puts more money into circulation.”

- The SEC is considering dictating when traders can bet that stocks will fall, after lawmakers said short-sellers fueled the financial crisis by driving down shares, according to two people familiar with the matter. The agency may offer two proposals April 8^th . One option under SEC consideration resembles the uptick rule because it would bar investors from betting against a stock until it sold at a higher price than the preceding trade. The alterative that the SEC’s five commissioners may consider would only allow short sales at prices exceeding the best bid.

- Federal Deposit Insurance Corp. Chairman Sheila Bair was scheduled to travel to New York today to pitch the government’s latest plan to save banks to potential investors including Lone Star Funds and five state pension funds, people familiar with the matter said. The invitation-only meetings are taking place at the New York office of the FDIC’s financial adviser, Perella Weinberg Partners LP, the people said. Besides Dallas-based Lone Star and Chicago’s Citadel Investment Group LLC, pension-fund managers from New Jersey, Connecticut, New York, Pennsylvania and California will also participate.

- Emerging-market stocks are poised to fall after a flood of money into developing-nation equity funds surpassed a level that foreshadowed previous market selloffs, according to Bank of America. Investors poured $1 billion into emerging-market funds during the past week, bringing inflows during the past four weeks to 1.7% of their total assets under management, Michael Hartnett, Bank of America’s co-head of international investment strategy, wrote, citing data from EPFR Global. That triggered a sell signal from Hartnett’s fund flows “trading rule,” which says four-week inflows totaling more than 1.5% of assets under management precede market declines.

- Gold prices fell, heading for a second straight weekly loss, on speculation that the U.S. economy will rebound, eroding the precious metal’s appeal as an alternative investment. Silver also declined. U.S. stocks were poised for a fourth straight weekly gain after a government report showed the unemployment rate in March matched estimates by economists. Investment in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, has been unchanged since March 27.

- The US dollar’s role as a reserve currency won’t be threatened by a nine-fold expansion in the International Monetary Fund’s unit of account, according to UBS AG, ING Groep NV and Citigroup Inc. Group of 20 leaders yesterday gave approval for the agency to raise $250 billion by issuing Special Drawing Rights, or SDRs, the artificial currency that the IMF uses to settle accounts among its member nations. It also agreed to put another $500 billion into the IMF’s war chest. “I don’t think that will dent the importance of the dollar,” Wang Tao, head of China research at UBS AG and former IMF economist, said in an interview today. “They are not talking about an expansion in the use of the SDR.”

- President Barack Obama said a launch by North Korea of a satellite-bearing missile would be a “provocative” act that threatens to endanger six-party talks aimed at eliminating nuclear weapons on the Korean peninsula. “The response so far from the North Koreans has been not just unhelpful, but has resorted to the sort of language that has led to North Korea’s isolation in the international community for a very long time,” Obama said in Strasbourg, France, today alongside French President Nicolas Sarkozy. North Korea’s plan to launch a missile carrying a communications satellite this month has met strong condemnation by world leaders, who point to evidence suggesting the secretive state is instead planning to test a Taepodong-2 missile capable of reaching Alaska. A launch would violate a United Nations resolution, the Obama administration and allies have said.

- A bill to raise taxes on executives at hedge funds and private-equity and venture-capital firms was introduced today in the U.S. House as Democrats renewed a fight to close what they call an unfair tax loophole. Representative Sander Levin, a Michigan Democrat, said his legislation would tax carried interest, the portion of profits that managers take as compensation, as ordinary income rather than as capital gains. That would boost the tax rate to as high as 35 percent from as low as 15 percent.

Wall Street Journal:

- While the “news” that Google(GOOG) was in “late-stage” talks to acquire Twitter, which TechCrunch reported last night, certainly sounds exciting, it isn’t accurate in any way, according to a number of sources BoomTown spoke to close to the situation. In fact, Twitter and Google have simply been engaged in “some product-related discussions,” according to one source, around real-time search and the search giant better crawling the microblogging service.

- In a compensation program that has drawn angry protests from politicians, Fannie Mae and Freddie Mac expect to pay about $210 million in retention bonuses to 7,600 employees over 18 months, according to a letter from the mortgage companies' regulator to Sen. Charles Grassley. The maximum retention bonus for any individual executive under the plan will total $1.5 million during the 18 months ending in early 2010, according to the letter, which provides previously undisclosed details about the bonuses.

- U.S. President Barack Obama took his new strategy for the war in Afghanistan on Friday to North Atlantic Treaty Organization leaders reluctant to commit significant new forces. The 28-nation alliance is more eager to repair relations with a resurgent Russia, whose president cautioned NATO against further eastward expansion in a warning ahead of the alliance's 60th anniversary summit.

- The House and Senate are preparing to pass President Barack Obama's radical budget blueprint, with only minor modifications, by using (abusing would be more accurate) the budget "reconciliation" process. This process circumvents the Senate's normal rules requiring 60 votes to prevent a filibuster. Reconciliation was created by Congress in the mid-1970s to enforce deficit reduction, the opposite of what the president and his party are aiming for. The immense increase in nondefense spending and taxes, and the tripling of the national debt in Mr. Obama's budget, have been the subject of considerable scrutiny since it was announced.

MarketWatch:
- Cable-television bigwigs believe wireless technology will play a bigger role in their future. They just aren't sure exactly how.

Chicago Tribune:

- White House Chief of Staff Rahm Emanuel was the target of attempted extortion by former Gov. Rod Blagojevich, according to a source and a federal indictment filed Thursday alleging a state grant for a Portage Park neighborhood school was used as bait for a fundraising demand. Emanuel, a confidant to both Blagojevich and President Barack Obama, is described by prosecutors as "Congressman A," an identity confirmed by a White House aide.

Daily Record:

- With signs that the New Jersey housing market is beginning to emerge from a long slump, more young families are being noticed at homebuying seminars offered by the Housing Partnership, Executive Director Susan Zellman said. With signs that the housing market is beginning to emerge from a long slump, more young families are being noticed at homebuying seminars offered by the Housing Partnership, Executive Director Susan Zellman said. Adding to the interest, the association said, is the new $8,000 federal tax credit for first-time homebuyers available through Dec. 1.

Digitimes:

- OmniVision(OVTI) has received 3.2-megapixel CMOS image sensor (CIS) orders for Apple's next-generation iPhone, according to market sources. The company is also said to have secured 5-megapixel CIS orders for another Apple product expected to be launched later in the year. OmniVision beat out STMicroelectronics and Aptina Imaging for the Apple orders, the sources added.

Platts:

- The glut of liquefied natural gas cargoes expected to head to the US this

coming summer could leave even relatively ample US storage facilities unable

to handle the volumes, the head of Cheniere Energy warned Thursday. In a conference call with analysts moderated by Teri Viswanath, director of commodity research for Credit Suisse, Cheniere CEO Charif Souki said that between 2 Bcf/d and 2.5 Bcf/d of additional LNG will be available to the Atlantic Basin market in 2009 as a result of the reduction in global demand. Construction delays at liquefaction facilities meant that "2008 was less promising than we had expected" in terms of supply growth, Souki said. But in 2009, the completion of several liquefaction projects and the resolution of force majeure situations at a number of existing liquefaction facilities will likely bring significant amounts of LNG onto the global market -- even as the global economic crisis is stifling gas demand worldwide. "Whether we have room for it or not, the LNG is going to try to come to the United States," Souki said. But since US gas production has not yet fallen back and storage inventories are unusually high, "we might not be able to accommodate the LNG that comes." He surmised that US storage facilities could reach "full" levels as early as August or September 2009. Should that happen, LNG tankers will either be turned away from the US, or gas prices will plummet as those cargoes displace domestic gas plays, which "are not rational" below a price of about $4/MMBtu.

Detroit Free Press:

- General Motors(GM) is seeking $2.6 billion in low-interest government loans to develop two spin-offs of the electric-drive Chevrolet Volt and a third hybrid vehicle, according to new government filings. This week's application to the U.S. Department of Energy is GM's third request to the so-called Section 136 loan program set up last year to help automakers develop advanced-technology vehicles. In total, GM has asked for $10.3 billion under the program. The fund, aimed at retooling factories for more fuel-efficient vehicles, was set up in 2008 with $25 billion, and it has already received requests for more money than originally set aside. This funding request is different from the one that provided GM with $13.4 billion in government loans to stay afloat.

USAToday:

- More, more, more. That's the message President Obama will take to this weekend's NATO summit in France, where the need for the United States' allies to contribute more troops, funds and military training programs in Afghanistan will overshadow celebrations of the security organization's 60th anniversary. In an interview with USA TODAY on Thursday, the top coalition commander in Afghanistan called on NATO to expand its role there to include training Afghanistan's nascent police force, which has lagged its army in training and effectiveness. "I think if NATO and other military contributors to this campaign don't put an effort into working with the police the same as we put into working with the (Afghan) army, then I think we're short-sighted in our approach here," U.S. Gen. David McKiernan said in Kabul.

Financial Times:
- US officials are considering whether to accept Iran’s pursuit of uranium enrichment, which has been outlawed by the United Nations and remains at the heart of fears that Iran is seeking nuclear weapons capability. As part of a policy review commissioned by President Barack Obama, diplomats are discussing whether the US will eventually have to accept Iran’s insistence on carrying out the process, which can produce both nuclear fuel and weapons- grade material. “There is a growing recognition in [Washington] that the zero [enrichment] solution, though still favored, simply is unfeasible,” says Trita Parsi, president of the National Iranian American Council. On Friday, Mr Obama summarized the US message to Iran as, “Don’t develop a nuclear weapon” – a form of words that would not rule out a deal accepting Iranian enrichment. Mr Bush was much more specific in calling Iran to halt enrichment. A series of UN Security Council resolutions since 2006 has forbidden Iran from enriching uranium, with the European Union, Russia and China backing US calls for Tehran to halt the process. But Iran has sped up its program during that time and has installed more than 5,500 centrifuges to enrich uranium and has amassed a stockpile of more than 1,000kg of low-enriched uranium – enough, if it were enriched to higher levels, to produce fissile material for one bomb. “Across the political spectrum in Iran, enrichment as a right has become a non-negotiable position,” Mr Parsi said.

RIA Novosti:

- Russia’s gross domestic product contracted 7% in the first quarter of 2009, citing Economy Minister Elvira Nabiullina. That compares with record 8.5% growth in the same period last year.

Baltic News Service:

- Estonian new car registrations fell 65% in March from a year earlier, citing data from the Estonian motor vehicle registration center said.

Caijing:
- China’s electricity output fell .7% from a year earlier in March, citing State Grid Corp. of China. Power output in late March fell about 2%.

Bear Radar

Style Underperformer:
Large-cap Value (-.20%)

Sector Underperformers:
Gold (-4.19%), HMOs (-3.48%) and Drugs (-2.15%)

Stocks Falling on Unusual Volume:
AU, NVO, BMY, SHLM, AKAM, GOLD, SCHN, RGLD and GPN

Stocks With Unusual Put Option Activity:
1) MYL 2) TM 3) GOLD 4) AMLN 5) GPS

Bull Radar

Style Outperformer:
Large-cap Growth (-.43%)

Sector Outperformers:
Computer Hardware (+2.28%), Wireless (+1.68%) and Oil Service (+.96%)

Stocks Rising on Unusual Volume:
CGV, SI, DWSN, TM, PCAR, AAPL, CBST, GILD, NVDA, ANGO, WYNN, GMKT, CELG, AAUK, IGN and BCA

Stocks With Unusual Call Option Activity:
1) TSRA 2) HOT 3) RIMM 4) LXK 5) ERIC