Stocks Finish at Session Highs on Above-average Volume

Indices
S&P 500 1,305.04 +.60%
DJIA 11,317.43 +.73%
NASDAQ 2,303.35 +.40%
Russell 2000 744.85 +1.19%
Wilshire 5000 13,131.13 +.64%
S&P Barra Growth 615.68 +.49%
S&P Barra Value 685.99 +.72%
Morgan Stanley Consumer 617.31 +.64%
Morgan Stanley Cyclical 810.97 +.96%
Morgan Stanley Technology 537.21 +.07%
Transports 4,614.94 +1.18%
Utilities 401.30 +.56%
Put/Call .97 +2.11%
NYSE Arms .83 -14.33%
Volatility(VIX) 11.21 -3.53%
ISE Sentiment 157.00 -7.10%
US Dollar 89.73 +.12%
CRB 320.27 -.77%

Futures Spot Prices
Crude Oil 62.12 +.57%
Unleaded Gasoline 174.15 +.29%
Natural Gas 7.0 +.75%
Heating Oil 174.67 +.09%
Gold 550.90 -.15%
Base Metals 172.29 -.26%
Copper 233.90 unch.
10-year US Treasury Yield 4.69% -.38%

Leading Sectors
Airlines +2.83%
Drugs +2.01%
I-Banks +1.03%

Lagging Sectors
Gold & Silver -.01%
Broadcasting -.14%
Computer Hardware -.24%

Evening Review
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GuruFocus.com
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In Play

Afternoon Recommendations
Oppenheimer:
- Rated QCOM Buy, target $60.

Afternoon/Evening Headlines
Bloomberg:
- US Secretary of State Condoleezza Rice expressed confidence that American diplomats will settle differences with China and Russia on a UN statement intended to persuade Iran to rein in its nuclear program.
- The American Civil Liberties Union(ACLU) filed suit seeking to overturn a US law that makes students ineligible for federally backed college loans once they have been convicted on a drug charge.
- Chinese President Hu Jintao and President Bush will discuss the fight against terrorism and halting the spread of nuclear weapons when they meet April 20 in Washington.
- Humans with H5N1 avian influenza evidently can’t spread the virus easily through coughing and sneezing, scientists said.

BOTTOM LINE: The Portfolio finished slightly higher today on gains in my Internet longs, Networking longs, Airline longs and Semi longs. I did not trade in the final hour, thus leaving the Portfolio 75% net long. The tone of the market was positive today as the advance/decline line finished higher, almost every sector rose and volume was above-average. Measures of investor anxiety were mixed into the close. Overall, today's market performance was bullish. The major averages are up between 5%-10% for the year already and most of my positive catalysts haven't even occurred. Given the skepticism regarding this rally, I expect any pullbacks to be relatively muted on the way to substantial gains for the year. I still expect the S&P 500 to return around 15% for the year. I will be unable to post through Sunday due to a scheduling conflict. Sorry for the inconvenience.

Stocks Modestly Higher into Final Hour as Oil Reverses Lower

BOTTOM LINE: The Portfolio is slightly higher into the final hour on gains in my Semi longs, Internet longs and Networking longs. I covered some of my (IWM) and (QQQQ) shorts today, thus leaving the Portfolio 75% net long. The tone of the market is positive as the advance/decline line is higher, most sectors are gaining and volume is heavy. The ISE Sentiment Index is falling 16% today to a below-average 143.0. Moreover, the spread between the index’s 10-day moving-average and its 200-day is the largest since Sept. 2004. These depressed levels come even as the S&P 500 approaches 6-year highs and has risen 74% from Oct. 2002 lows. The relatively low levels of investor complacency shown in many gauges of sentiment have to big a big worry for the bears. I expect US stocks to trade mixed-to-higher into the close from current levels on lower energy prices, lower long-term rates and short-covering.

Today's Headlines

Bloomberg:
- China’s finance ministry said it will raise its automobile and motorcycle taxes 20% to spur the use of small vehicles that burn less fuel, part of a wider move to tax luxury goods and control energy consumption.
- Elan Corp.(ELN) and partner Biogen Idec(BIIB) said US regulators extended the review of their recalled multiple sclerosis treatment Tysabri for as long as 90 days to study the companies’ plan for restarting sales of the product.
- David Shaw, founder of the world’s largest hedge fund firm, said investment returns probably will worsen because of all the money pouring into the industry.
- Illinois Tool Works(ITW) CEO Speer said the company is winning more orders from Asian automakers including Toyota Motor and Honda Motor that will help spur sales growth for its ball joints, suspension systems and door handles.
- Shares of Bristol-Myers Squibb(BMY) and partner Sanofi-Aventis SA surged after the drugmakers settled a patent lawsuit against Apotex Inc. to keep a generic version of the blood thinner Plavix off the market until 2011.
- FedEx Corp.(FDX) said fiscal third-quarter profit rose 35%, more than analysts expected, as strong demand enabled the company to raise prices.

Wall Street Journal:
- The SEC is pursuing several initiatives that will change the way companies and mutual funds report earnings, empowering financial markets to discipline laggards as an alternative to government regulation.
- Microsoft(MSFT) plans a management shake-up at its Windows group.
- EchoStar Communications(DISH) will spend more than $1.6 billion in the next few years to boost its satellite fleet.
- US academics have established a new method of comparing mutual funds, moving away from the tradition of comparison against a benchmark index.
- Tennis matches will try to eliminate inaccurate line calls using technology that provides computerized instant replays.
- US hospital guidelines are setting private rooms as the new standard, amid growing evidence that shared rooms cause more infections, medical errors, privacy violations and stress.
- The liberal watchdog group Public Citizens has filed a lawsuit that may threaten the $39 billion in US budget cuts approved last month under the Deficit Reduction Act.

NY Post:
- Inter-Tel(INTL), which focuses on telephone services to small and medium-sized businesses, may seek a sale as it faces a possible bid from its former chief executive officer to regain control.
- NY police are installing 505 video cameras around the city to watch over 253 tourist and high-crime spots.

AP:
- Millions of NY commuters who ride Metropolitan Transportation Authority subways daily will soon be able to tell how long until the next train arrives, starting with the L line.

Financial Times:
- A proposed French parliamentary bill that would force companies with exclusive copyright protection to supply rivals with information needed to make compatible systems could hurt many companies, not just Apple Computer(AAPL).

China Securities Journal:
- China’s consumption of the copper tubing used in air conditioners has fallen 30% over the past year, citing a survey by a leading maker of the part.

Economic Releases

- None of note

Links of Interest

Market Snapshot
Detailed Market Summary
Market Internals
Economic Commentary
Movers & Shakers
Today in IBD
NYSE OrderTrac
I-Watch Sector Overview
NYSE Unusual Volume
NASDAQ Unusual Volume
Hot Spots
NASDAQ 100 Heatmap
DJIA Quick Charts
Chart Toppers
Option Dragon
Real-time Intraday Chart/Quote

Wednesday Watch

Late-Night Headlines
Bloomberg:
- China National Petroleum, the nation’s biggest oil producer, plans to increase output of crude oil and natural gas 25% in the next five years.

Wall Street Journal:
- The Washington, DC, area accounts for 9.6% of all US venture capital invested in seed and start-ups, up from 3.6% a decade ago, citing the National Venture Capital Association.

LA Times:
- Iran’s government, which says it has religious and political differences with the Islamic extremist group al-Qaeda, may be aiding the group’s leaders.

Late Buy/Sell Recommendations
- None of note

Night Trading
Asian Indices are -1.25% to +.25% on average.
S&P 500 indicated -.13%.
NASDAQ 100 indicated -.83%.

Morning Preview
US AM Market Call
NASDAQ 100 Pre-Market Indicator/Heat Map
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Before the Bell CNBC Video(bottom right)
Global Commentary
Asian Indices
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Top 20 Business Stories
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Rasmussen Consumer/Investor Daily Indices
CNBC Guest Schedule

Earnings of Note
Company/EPS Estimate
- (ATU)/.62
- (ADBE)/.29
- (FDX)/1.30
- (FUL)/.27
- (MLHR)/.32
- (IPG)/-.40
- (JBIL)/.37
- (KBH)/1.96
- (MS)/1.21
- (WOR)/.35

Upcoming Splits
- (RJF) 3-for-2

Economic Releases
- None of note

BOTTOM LINE: Asian indices are mostly lower, weighed down by technology shares in the region after Microsoft delayed the release of its next generation operating system. I expect US equities to open lower and to trade mixed into the afternoon, finishing lower. The Portfolio is 50% net long heading into the day.