Tuesday, July 26, 2005

Stocks Continue Healthy Consolidation, Finish Mixed

Indices
S&P 500 1,231.16 +.17%
DJIA 10,579.77 -.16%
NASDAQ 2,175.99 +.43%
Russell 2000 674.58 +.54%
DJ Wilshire 5000 12,285.63 +.22%
S&P Barra Growth 590.72 +.17%
S&P Barra Value 636.04 +.18%
Morgan Stanley Consumer 584.63 +.04%
Morgan Stanley Cyclical 756.93 +.01%
Morgan Stanley Technology 499.00 +.56%
Transports 3,741.33 +.25%
Utilities 392.24 +.06%
Put/Call .84 +6.33%
NYSE Arms 1.02 -14.18%
Volatility(VIX) 10.99 -.99%
ISE Sentiment 181.00 +7.10%
US Dollar 90.05 +.54%
CRB 306.13 +.28%

Futures Spot Prices
Crude Oil 59.07 +.12%
Unleaded Gasoline 169.58 -.62%
Natural Gas 7.43 +2.13%
Heating Oil 160.37 -.18%
Gold 423.40 -.59%
Base Metals 124.16 -.61%
Copper 160.50 -.80%
10-year US Treasury Yield 4.22 -.46%

Leading Sectors
Steel +2.36%
Networking +2.34%
Airlines +2.13%

Lagging Sectors
Computer Hardware -1.44%
Gold & Silver -1.45%
Oil Tankers -2.82%

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
Goldman Sachs:
- Reiterated Outperform on PSSI, X and BAC.
- Reiterated Underperform on ELNK and GM.

Afternoon/Evening Headlines
Bloomberg:
- Take Two Interactive Software said the FTC is examining the company’s advertising for its No. 1-selling video game, “Grand Theft Auto: San Andreas,” which was found last week to have hidden sexual scenes.

AP:
- Hungry North Koreans are scavenging for ferns, acorns, grass and seaweed to eat as their government builds nuclear weapons.

Financial Times Deutshland:
- SAP AG may simplify it pricing system by reducing the number of parameters that determine the price of SAP programs.

Australian:
- Australia, the US, China, India and South Korea formed a regional accord on greenhouse emissions to replace the Kyoto climate protocol.
BOTTOM LINE: The Portfolio finished higher today on gains in my Semiconductor, Networking and Retail longs and Oil Tanker shorts. I did not trade in the afternoon, thus leaving the Portfolio 75% net long. The tone of the market was slightly positive today as the advance/decline line finished higher, sector performance was mixed and volume was about average. Measures of investor anxiety were mostly lower into the close. Overall, today’s market action was modestly positive. Even though the S&P 500 hasn't budged for about 10 days, the underlying tone of the market remains positive. I believe another upwards push will occur over the next few weeks.

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