Monday, September 25, 2006

S&P 500 Hits 5-Year High

Indices
S&P 1,326.37 +.88%
DJIA 11,575.81 +.59%
NASDAQ 2,249.07 +1.36%
Russell 2000 727.09 +1.18%
Wilshire 5000 13,231.17 +.86%
S&P Barra Growth 615.61 +.82%
S&P Barra Value 708.70 +.94%
Morgan Stanley Consumer 649.27 +.20%
Morgan Stanley Cyclical 808.39 +.81%
Morgan Stanley Technology 529.21 +1.91%
Transports 4,343.52 +.37%
Utilities 428 .65 +1.40%
Put/Call .83 -7.78%
NYSE Arms .91 -13.70%
Volatility(VIX) 12.12 -3.73%
ISE Sentiment 148.00 +13.85%
US Dollar 85.34 +.20%
CRB 300.71 -.05%

Futures Spot Prices
Crude Oil 61.40 +1.40%
Unleaded Gasoline 150.55 +2.33%
Natural Gas 4.49 -2.85%
Heating Oil 165.60 +.53%
Gold 594.80 -.17%
Base Metals 225.02 -3.06%
Copper 344.40 -.10%
10-year US Treasury Yield 4.54% -.90%

Leading Sectors
Semis +2.51%
Homebuilders +2.37%
Retail +2.17%

Lagging Sectors
Gold & Silver -.90%
Tobacco -1.62%
Steel -1.63%

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
Oppenheimer:
- Rated (FMC) Buy, target $75.

Afternoon/Evening Headlines
Bloomberg:
- US stocks rallied, sending the S&P 500 to a five-year high, after Fed Bank of Dallas President Fisher said the economy remains strong.
- Starbucks(SBUX) was sued by an independent café owner for alleged anti-competitive activities.
- President Bush and four business leaders led by Cisco Systems(CSCO) CEO Chambers pledged to provide $400 million in public and private money to help rebuild war-torn Lebanon as a demonstration of US commitment to democracy there.

AP:
- Iran’s foreign minister today said talks between top Iranian and European negotiators about his country’s nuclear program are “on track” and that a way out of the stand-off with the UN is possible.

Nikkei English News:
- Japan, the US and European nations are among 41 countries that agreed to draft a treaty for standardizing the patent approval process based on the first-to-file principle.

BOTTOM LINE: The Portfolio finished higher today on gains in my Computer longs, Semi longs, Retail longs, Medical longs and Steel shorts. I did not trade in the final hour, thus leaving the Portfolio 100% net long. The tone of the market was positive today as the advance/decline line finished higher, almost every sector gained and volume was about average. Measures of investor anxiety were lower into the close. Overall, today's market performance was bullish. Russian stocks fell 3.48% today, the world's worst performer. The RTSI is up 1,256% since October 1998. The index is testing its 200-day moving-average. Commodity-related companies account for the vast majority of the components of this index. I continue to believe that the recent mania for emerging market stocks was a function of the mania for commodities, and that emerging market stocks will underperform U.S. stocks over the intermediate term. I remain short iShares MSCI Emerging Markets Index (EEM).

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