Thursday, May 11, 2006

Stocks Finish Near Session Lows on Worries Over Future Economic Growth

Indices
S&P 500 1,305.92 -1.28%
DJIA 11,500.73 -1.22%
NASDAQ 2,272.70 -2.07%
Russell 2000 757.47 -2.38%
Wilshire 5000 13,213.34 -1.36%
S&P Barra Growth 602.57 -1.30%
S&P Barra Value 701.80 -1.26%
Morgan Stanley Consumer 611.26 -.93%
Morgan Stanley Cyclical 876.69 -1.43%
Morgan Stanley Technology 525.16 -2.45%
Transports 4,941.69 -.99%
Utilities 404.20 -1.10%
Put/Call .95 +15.85%
NYSE Arms 1.23 +15.79%
Volatility(VIX) 12.49 +6.03%
ISE Sentiment 141.00 -7.24%
US Dollar 84.34 -.19%
CRB 365.35 +1.43%

Futures Spot Prices
Crude Oil 72.72 -.82%
Unleaded Gasoline 220.50 -.66%
Natural Gas 6.63 -.29%
Heating Oil 208.35 -.62%
Gold 716.50 -.69%
Base Metals 256.91 +4.88%
Copper 392.00 -.08%
10-year US Treasury Yield 5.15% +.62%

Leading Sectors
Gaming +.09%
Drugs -.26%
Hospitals -.33%

Lagging Sectors
Networking -3.23%
Steel -3.36%
Disk Drives -3.71%

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
Smith Barney:
- Rated AGN Buy, target $118.
- Rated ACL Buy, target $125.

Afternoon/Evening Headlines
Bloomberg:
- PIMCO, manager of the world’s largest bond fund, is trimming its holdings of emerging-market debt, one of the hottest areas of the fixed-income market in recent years.
- US 10-year Treasuries fell the most in more than a week after the government sold $13 billion of the securities, adding supply at a time when the Fed is signaling that it may raise interest rates further.

BOTTOM LINE: The Portfolio finished lower today on losses in my Retail longs, Internet longs, Networking longs and Semi longs. I covered some of my (IWM) and (QQQQ) shorts in the final hour, thus leaving the Portfolio 25% net long. The tone of the market was very negative today as the advance/decline line finished substantially lower, almost every sector fell and volume was heavy. Measures of investor anxiety were higher into the close. Overall, today's market performance was very bearish. After such a large decline, a short-term bounce higher could occur at any time, however I expect measures of investor anxiety to spike higher before a more durable bottom is in place. This will likely coincide with a substantial rotation out of the most economically sensitive stocks.

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