Thursday, July 28, 2005

Stocks Higher Mid-day as Long-Term Rates Decline

Indices
S&P 500 1,243.50 +.54%
DJIA 10,693.61 +.53%
NASDAQ 2,195.69 +.43%
Russell 2000 679.45 +.68%
DJ Wilshire 5000 12,404.05 +.56%
S&P Barra Growth 596.73 +.52%
S&P Barra Value 641.99 +.51%
Morgan Stanley Consumer 593.00 +.95%
Morgan Stanley Cyclical 766.37 +.77%
Morgan Stanley Technology 504.54 +.14%
Transports 3,804.11 +1.12%
Utilities 396.65 +.68%
Put/Call .77 -2.53%
NYSE Arms .90 +1.48%
Volatility(VIX) 10.42 +.58%
ISE Sentiment 145.00 -18.54%
US Dollar 89.29 -.49%
CRB 309.72 +.85%

Futures Spot Prices
Crude Oil 59.30 +.32%
Unleaded Gasoline 171.50 -.05%
Natural Gas 7.60 +.17%
Heating Oil 162.30 +.36%
Gold 433.60 +.70%
Base Metals 126.02 +.42%
Copper 164.90 +1.35%
10-year US Treasury Yield 4.19% -1.30%

Leading Sectors
HMOs +3.55%
Gaming +2.35%
Homebuilders +2.13%

Lagging Sectors
Energy -.10%
Gold & Silver -.26%
Oil Service -.35%
BOTTOM LINE: The Portfolio is higher mid-day on gains in my Semiconductor, Medical and Medical Information Systems longs. I added to my RIG short and AUO long this morning, thus leaving the Portfolio 100% net long. The tone of the market is positive as the advance/decline line is higher, most sectors are higher and volume is about average. Measures of investor anxiety are mostly higher. Today’s overall market action is positive considering the rise in energy prices. The fact that long-term rates are falling ahead of what will likely be a very good GDP report is a big positive and is the main catalyst for today's move higher in stocks.

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