With traders getting in end of summer vacations and no major economic events on the calendar, it was one of the quietest weeks of the year.  While next week provides a look at consumer confidence and the FOMC minutes on Tuesday and the GDP number on Wednesday, I’d expect more of the same until normal trading begins again after the Labor Day weekend.. then the fun begins.  This lull provides an opportunity to get those watchlists in order and prepare.. prepare for what will most likely be a major move in the last few months of the year.  The market remains very difficult to read, so in what direction is anybody’s guess, but the health of the market has improved of late and I’m just a bit biased toward the bullish side.  The reason for this is the emergence of tech over the past couple weeks and the ability of the market to hold recent gains this week despite more negative news in the housing market as well as the Iran situation.
The best course of action is to allocate a significant portion to cash and be prepared on both sides.  Remember, the market has a tendency to lull you to sleep before big moves.  Get ready.

::::::::::::::::::::::::

I’m releasing a new Stock Watch report to premium members in the next few minutes – and no you won’t find my two highest rated breakout stocks in the IBD 100 this weekend.  These big potential breakouts are flying under the radar providing a much greater success rate – don’t miss it!

Get this report with your *free* 30 day premium membership.. just sign in to your profile page and sign up in seconds.  Tate, I look forward to scoring big profits with you in the next 30 days.

Join me and other premium members by signing up from here:
http://www.selfinvestors.com/amember/member.php

:::::::::::::::::::

** Model Portfolio Update **

With the market half asleep this week and pulling back a bit, the Model Porfolio did the same.. off 1% for the week.  Just one new transaction, a small $10K silver play on the long side was made.  The year to date performance continues to stay well ahead of the major indices with a 14.3% gain.  I anticipate another fairly quiet week ahead and will most likely ride with current positions until normal trading volumes resume after the Labor Day holiday.  Current allocation is about 17% short, 40% long and 43% cash.

** Best/Worst Performers **

– Top 10 Performing Industries For the Week –

1. Broadcasting – Radio                      5.70%
2. Home Health Care                           4.28%
3. Personal Computers                        3.24%
4. Semiconductor – Memory Chips      3.10%
5. Drug Delivery                                   3.02%
6. Shipping                                            2.50%
7. Lumber/Wood Production                 2.45%
8. REIT – Residential                              2.05%
9. Processed & Packaged Goods         2.00%
10. Farm Products                                1.95%

– Top 10 Worst Performing Industries For the Week –

1. Home Furnishing Stores                  -8.00%
2. Apparel Stores                                -5.20%
3. Long Distance Carriers                   -4.95%
4. Electronic Stores                            -4.80%
5. Gaming Activities                            -4.00%
6. Metal Fabrication                             -3.92%
7. Wholesale Other                             -3.85%
8. Sporting Goods Stores                   -3.80%
9. Home Furnishing & Fixtures            -3.70%
10. Trucking                                         -3.67%

– Top 5 Best Performing ETFs For the Week –
 
1. PowerShares Dynamic Energy (PXE) 2.10%
2. HLDRS Pharmaceutical (PPH)              1.25%
3. SPDR Select Health Care (XLV)           1.00%
4. Templeton Russia & E. Europe (TRF)     .92%
5. Ishares Biotech (IBB)                             .85%

– Worst 5 Performing ETF’s –

1. Turkish Invest Fd (TKF)                     -6.00%
2. Ishares Brazil (EWZ)                         -4.20%
3. PowerShares Dynamic Retail (PM     -3.55%
4. Ishares Latin America (ILF)               -3.10%
5. Chile Fund (CH)                                 -2.60%

**  There are no IPO’s worth watching again this week – the IPO market should pick up again after Labor Day**

** Upcoming Economic Reports (8/28/06- 9/1/06) **

Monday:        No Events
Tuesday:       Consumer Confidence, FOMC Minutes
Wednesday:  GDP (prelim), Petroleum Status, Mortgage Apps
Thursday:      Money Supply, Factory Orders, Personal Income, Jobless Claims, Chicago PMI
Friday:           ISM Manufacturing, Construction Spending, Employment Situation, New Motor
                      Vehicle Sales, Consumer Sentiment (Final)

** Latest Blog Entries – In Case You Missed Them!**

– SelfInvestors Blog –

1. Thirsty For Profits? Go Get Some Water – Powershares Water Resources ETF http://investing.typepad.com/tradingstocks/2006/08/thirsty_for_pro.html

The market has a way of pulling off surprises and a surprise is exactly what we got last week as inflation came in much cooler than expected which contributed to 5 straight days of market gains.  Taking a look back, two big themes come to mind.  First and foremost has been the lack of buy volume during the 2 days of big rallies.. it’s something I mentioned on a few occassions in the MidDay Market Updates last week.  It looks like institutions are being very cautious here and rightly so.  One good economic number doesn’t make a trend and by jumping in prematurely can be a recipe for disaster (remember, institutions can’t unload positions quickly like the small investor).  The second big theme of the week was the shift of money from commodities to tech.  Many tech companies began to emerge from the dead last week and may prove to be the backbone of any new rally.  Pay close attention to technology shares in the coming weeks.  It’s still too early to start seeing a barrage of high quality tech breakouts, but in a few weeks this may be where the big money is made.  As far as economic numbers go, it’s going to be a light week but Iran’s formal response to the nuclear incentives package may be a market mover on Tuesday.  I’d expect to see the market digest recent gains and possibly retrace the entire move.  Look for decreasing selling volume on down days as a sign that the market continues to get more bullish.

** Model Portfolio Update **

With an inflation data induced rally last week, I quickly shifted from a short dominated portfolio to a long dominated portfolio within a couple days.  Despite leaning the wrong way, it was once again a profitable week for the Model Portfolio with a gain of .8%, bringing the year to date performance to 15.3%.  Five short positions were covered that collectively provided a small gain for the portfolio – UARM (+6%), PETS (+2%), BTU (+1%), SEE (-1%) and PENN (-2%).  Two long positions that were initiated during the week were immediately closed.  One in SHOO, due to a sharp reversal for 1% gain, the other in KDN due to a lack of buy volume for a 2% gain.  Four additional long positions were initated during the week which I continue to hold.  One new short position was added as well.  All new positions are currently profitable.  Currently, the portfolio allocation is roughly 15% short, 40% long and 45% cash. 
_______________________________________________________________

Want to take your membership to the next level?  Premium members who have been following along with buy and sell alerts in the Model Portfolio are smashing average returns with a 14.5% YTD performance.  In addition to alerting you to the best opportunities on the long side, short opportunities are used to make money during a downturn.  That’s just one of many premium features….

Would you like a database of stocks all ranked according to fundamentals and technicals, complete with pivot points, earnings date, % change from breakout and moving averages, future earnings estimates and relative strength rating?  How about Stock Watch reports highlighting long and short opportunities for the coming week?

Try it out for yourself for 30 days!  Sign in to your account here: http://www.selfinvestors.com/amember/member.php and take advantage of the no risk trial.

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** Best/Worst Performers **

– Top 10 Performing Industries For the Week –

1. Internet Service Providers            10.00%
2. Internet Software & Services        9.25%
3. Processing Systems & Products    9.20%
4. Comuter Based Systems                8.50%
5. Semiconductor – Integrated Circuit  8.20%
6. Semiconductor – Specialized           8.20%
7. Communication Equipment               8.00%
8. Residential Construction                  8.00%
9. Semiconductor – Memory Chips       7.80%
10. Publishing – Periodicals               7.80%

– Top 10 Worst Performing Industries For the Week –

1. Personal Products                         -.90%
2. Hospitals                                        -.75%
3. Drug Stores                                    -.05%
4. Food – Major Diversified                 -.05%
5. Independent Oil & Gas                     .00%
6. Processed & Packaged Good          .05%
7. REIT – Office                                    .10%
8. Publishing – Books                           .10%
9. Oil & Gas Pipelines                           .20%
10. Gas Utilities                                    .30%

– Top 5 Best Performing ETFs For the Week –
 
1. HLDRS Internet Infracture (IIH)          9.50%
2. Ishares Networking (IGN)                  9.15%
3. HLDRS Internet (HHH)                        8.75%
4. HLDRS Broadband (BDH)                  8.75%
5. India Fund (IFN)                                  7.60%

– Worst 5 Performing ETF’s –

1.streetTracks Gold (GLD)                   -1.95%
2. DB Commodity Index (DBC)              -1.95%
3. Ishares Gold (IAU)                            -1.90%
4. Central Fund of Canada (CEF)           -.70%
5. Central Europe & Russia Fund (CEE) -.15%

**  There are no IPO’s worth watching for the coming week **

** Upcoming Economic Reports (8/14/06- 8/18/06) **

Monday:        No Events
Tuesday:       Retail Chain Store Sales, Retail Sales Index
Wednesday:  Existing Home Sales, Petroleum Status
                       Mortgage Applications
Thursday:      Money Supply, New Housing Sales, Durable Goods Orders, Jobless Claims
Friday:           No Events

** Latest Blog Entries – In Case You Missed Them!**

– SelfInvestors Blog –

1. Breakout Stock Highlights (BITS, DRIV, NITE, ORCL) (Aug 18)
http://investing.typepad.com/tradingstocks/2006/08/breakout_highli_1.html

2. S&P Joins Nasdaq With Breakout (Aug 17)
http://investing.typepad.com/tradingstocks/2006/08/sp_joins_nasdaq.html

3. Nasdaq Clears Key Resistance, Volume a Bit Tepid (Aug 16)
http://investing.typepad.com/tradingstocks/2006/08/nasdaq_clears_k.html

4. MarketSnapshot & MidDay Updates (Today the Rally is Muted) (Aug 15)
http://investing.typepad.com/tradingstocks/2006/08/marketsnapshot_.html

We’re at the halfway point of the trading day and the market still has a good chance of holding/staging a breakout today.  Currently the S&P is sitting in breakout territory above the 1290 area and will need to hold above that level into the close.  The Dow has some work to do and needs another 50 points before I’d be calling a break out in the Dow.  Volume levels are once again a bit of a concern today, particularly in the S&P and the Dow.  Volume is actually quite good in the Nasdaq.  Here’s the breakdown:

Nasdaq: up 1.08% today with volume currently tracking 10% GREATER than 50 day average
Nasdaq ETF (QQQQ): up 1.35%, volume 6% GREATER than average
Dow: up .58%, volume 18% BELOW 50 day average
Dow ETF (DIA): up .70%, volume 31% BELOW the 50 day average
S&P ETF (SPY): up .67%, volume 25% BELOW the 50 day average
Russell Small Cap ETF (IWM): up 1.04%, volume currently tracking 25% BELOW 50 average

Leading stocks that make up the SelfInvestors Breakout Tracker database are fairing well in terms of price movement, but once again there is no volume behind the move which is even lighter than yesterday.

*Advancers are outpacing Decliners 282 to 85.
*Advancers are up 1.49% today but volume is tracking 15% BELOW the 50 day average at this point in the trading day
*Decliners are down 1.13%, but the good news is that volume is very light on the down moves as well.  Volume is currently tracking 19% BELOW the average at this point in the trading day.
* The total SI Leading Stocks Index is up .88% today with volume 16% below the average

Remember, it’s all about the close.  Let’s see if we can add to the gains with greater volume to finish the day.. my bet is that we end the day near flat.  I feel that the inflation data gains have about run their course, but we’ll see. 

The anticlimactic end to rate hikes came to an end last week as most everyone expected. It didn’t take long for traders to "sell the news".. Remember, the market looks several months into the future and had already priced in the end to rate hikes.  Now the market turns to more important things such as the actual data that this data dependent Fed is basing its decisions on. Kicking it off on Tuesday and Wednesday is the all important  PPI and CPI inflation data which will give us another clue as to just how fast inflation is rising.  This data has the potential to be a real market mover, so be prepared one way or the other.  I still think there is more risk to the downside than potential to the upside.  We’ll probably see a pop Monday morning on news of a cease fire agreement in the Middle East, but I would expect that to be short lived.  The market has been flashing warning signs and put together another 2 days of distribution (institutional selling) last week following the Fed decision.  When the market speaks, it pays to listen.  Be careful out there.

It was another  busy and profitable week in the Model Portfolio.  Two short positions were covered – one for a quick 3 day gain of 23% in Grupo Simec (SIM), the other for a 7% loss in Business Objects (BOBJ).  These were replaced by 2 new short positions on Tuesday which I continue to hold for gains.  Only one long trade was attempted in Dril Quip (DRQ) and promptly sold for a 3% loss as the stock reversed course.  Currently, the portfolio allocation is roughly 30% short, 10% long and 60% cash.  The portfolio gained 1.5% for the week and is sitting on a gain of 14.5% year to date.

_______________________________________________________________

Want to take your membership to the next level?  Premium members who have been following along with buy and sell alerts in the Model Portfolio are smashing average returns with a 14.5% YTD performance.  In addition to alerting you to the best opportunities on the long side, short opportunities are used to make money during a downturn.  That’s just one of many premium features….

Would you like a database of stocks all ranked according to fundamentals and technicals, complete with pivot points, earnings date, % change from breakout and moving averages, future earnings estimates and relative strength rating?  How about Stock Watch reports highlighting long and short opportunities for the coming week?

Try it out for yourself for 30 days!  Sign in to your account here: http://www.selfinvestors.com/amember/member.php and take advantage of the no risk trial.

______________________

** Best/Worst Performers **

– Top 10 Performing Industries For the Week –

1. Office Supplies                            6.60%
2. Networking & Comm Devices      6.55%
3. Multimedia & Graphics Software 4.40%
4. Drugs – Generic                           4.10%
5. Personal Serivces                        2.80%
6. Catalog & Mail Order Houses       2.80%
7. Nonmetallic Mineral & Mining         2.35%
8. Specialized Health Services         2.35%
9. Hospitals                                       2.15%
10. Publishing – Periodicals               1.85%

– Top 10 Worst Performing Industries For the Week –

1. Music & Video Stores                  -14.85%
2. Trucks & Other Vehicles             -11.35%
3. Rental & Leasing Services          -10.20%
4. Major Airlines                                -8.90%
5. Residential Construction               -8.15%
6. Farm & Construction Machinery   -7.65%
7. Drug Delivery                                -7.50%
8. Manufactured Housing                 -6.90%
9. Sporting Activities                        -6.70%
10. Movie Production                        -6.20%

– Top 5 Best Performing ETFs For the Week –
 
1. Turkish Invest Fd (TKF)                     6.00%
2.Chile Fund (CH)                                  6.00%
3. Russia & E. Europe (TRF)                 4.15%
4. Morgan Stanley India (IIF)                  3.10%
5. Templeton Dragon Fund (TDF)          3.10%

– Worst 5 Performing ETF’s –

1.SPDR Homebuilders (XHB)                 -8.15%
2. Dow Jones Transportation (IYT)      -4.05%
3. PowerShares Clean Energy (PBW) -3.70%
4. Gold Miners (GDX)                           -3.60%
5. Commodity Index (DBC)                    -3.50%

**  IPO’s worth watching for the coming week **

1. InnerWorkings (INWK): provides printing solutions.  The company believes its unique technology enables it to obtain favorable pricing, deliver high quality products and services to its clients.  During the first quarter, the company reported strong growth from the year ago period.  Trading is set to start Wednesday.

2. GNC (GNC): This is a carryover from last week and no trading date has been set.  Specialty retailer of nutritional products, including vitamins, herbs, minerals and supplements with over 5800 locations worldwide.  Earnings and sales are growing quickly. 

** Upcoming Economic Reports (8/14/06- 8/18/06) **

Monday:        No Events
Tuesday:       PPI, Treasure Capital Inflows, NY Manufacturing Index, Retail Sales
Wednesday:  CPI, Industrial Production, Real Earnings, Housing Starts, Petroleum Status
                       Mortgage Applications
Thursday:      Money Supply, Philly Fed Survey, Leading Indicators, Jobless Claims
Friday:           Consumer Sentiment (Prelim)

** Latest Blog Entries – In Case You Missed Them!**

– SelfInvestors Blog –

1. Today’s Notable Earnings Movers (NCTY, ECLG) (Aug 10)
http://investing.typepad.com/tradingstocks/2006/08/todays_notable__4.html

2. Yahoo Demos New Ad Platform (Aug 8)
http://investing.typepad.com/tradingstocks/2006/08/yahoo_demos_new.html

3. Today’s Notable Earnings Mover’s (VTIV, JOBS) (Aug 7)
http://investing.typepad.com/tradingstocks/2006/08/todays_notable__3.html

In last week’s report I mentioned it would be a difficult tight rope for the market to walk in the coming months as traders look for "goldilocks" numbers.  Traders want indication of a slowing economy, but not too slow… all while keeping inflation in check so the Fed will ease up on rate hikes.  Before the jobs report was released, fed funds futures were pricing in a 44% chance of an August 8th rate hike.  That number dropped to just 19% after the number was released and the market surged as a result, taking out key resistance points in both the Dow and S&P (the Nasdaq hit resistance of its 50 day moving average) .  However, it took just a few hours for traders to hit the sell button ahead of the weekend, leaving both the Dow and S&P with failed breakouts.  Clearly, there is still a considerable amount of skittishness.   Should the Fed pause on Tuesday, I would be very surprised to see this market catapult for a breakout move.   I think the move we’ve seen off the bottom over the past several weeks is a pricing in of the pause in rate hikes.  From now on, it will be all about the economy and inflation numbers.  These numbers will be the drivers of the market, not the Fed decision.

It was a busy week in the Model Portfolio as I began to place short term bets on the short side.  At the beginning of the week I closed a long position in my lone oil play Veritas (VTS) for a quick 6% gain due to a lack of buy volume at the breakout and in days following.  Over the course of the week, premium members were alerted to a flurry of small short positions (currently 6 in all) which now represent around 35% of the portfolio.  The rest of the portfolio is 10% on the long side and 55% cash.  Considering the market continues to meander higher, the shorts are in solid shape and are up 1% collectively for the week.  With the market a bit overbought up here and a lack of volume behind recent moves higher, playing the short side with a few small positions currently makes more sense.
_______________________________________________________________

Want to take your membership to the next level?  Premium members who have been following along with buy and sell alerts in the Model Portfolio are smashing average returns with a 13% YTD performance.  In addition to alerting you to the best opportunities on the long side, short opportunities are used to make money during a downturn.  That’s just one of many premium features….

Would you like a database of stocks all ranked according to fundamentals and technicals, complete with pivot points, earnings date, % change from breakout and moving averages, future earnings estimates and relative strength rating?  How about Stock Watch reports highlighting long and short opportunities for the coming week?

Try it out for yourself for 30 days!  Sign in to your account here: http://www.selfinvestors.com/amember/member.php and take advantage of the no risk trial.

______________________

On the surface, we had a great week last week, with the major indices having their best week since ’04 and clearing several resistance levels in the process (at least in the Dow and S&P500 – have a look at the latest market report released just a few hours ago: http://investing.typepad.com/tradingstocks/2006/07/dow_also_surges.html).  With Bernankes recent comments, lower GDP and jobs numbers and a cooling housing market, traders are pricing in an end to rate hikes.  The concern is that what are traders going to focus on once the end to rate hikes euphoria wears off?  There aren’t too many positives out there.  The Middle East situation will be closely watched and some think that the situation will be resolved quickly.  Quickly?  They’ve been fighting for 50 years.. it won’t end quickly.  Traders will soon get their wish of an end to rate hikes, but then we’ll need to see evidence of a soft landing in the housing market and in the economy in general all while keeping inflation in check.  It’s going to be a difficult tight rope to walk over the next several months.  No wonder traders are fleeing to defensive areas.

It was another ho hum week for the Model Portfolio as I continue to sit largely on the sidelines.  I was forced out of one short trade in TWGP for a 7% loss and initiated a new long trade with an oil play that is currently up 3%.  For the coming week I’ll be considering some short term short entries and may initiate another long if the "stars are aligned".

** Best/Worst Performers **

– Top 10 Performing Industries For the Week –

1. Semiconductor – Memory             8.55%
2. Silver                                            8.15%
3. Copper                                         7.80%
4. Drugs – Generic                           6.70%
5. Drug Related Products                 6.60%
6. Auto Manufacturers                     6.45%
7. Industrial Equipment Wholesale    6.40%
8. Computer Based Systems            6.10%
9. Oil/Gas Drilling & Exploration         5.90%
10. Heavy Construction                    5.90%

– Top 10 Worst Performing Industries For the Week –

1. Consumer Services                    -10.80%
2. Music & Video Stores                  -9.05%
3. Health Care Plans                         -8.70%
4. Lodging                                         -7.65%
5. Manufactured Housing                 -7.20%
6. Resorts & Casinos                       -6.25%
7. Air Delivery & Freight Service      -6.20%
8. Food Wholesale                            -5.80%
9. Office Supplies                             -4.65%
10. Trucking                                      -4.10%

– Top 5 Best Performing ETFs For the Week –
 
1. HLDRS Telecom (TTH)                      5.70%
2. Market Vectors Gold Miners (GDX)  5.70%
3. HLDRS Oil Service (OIH)                   5.60%
4. HLDRS Semis (SMH)                         5.60%
5. Ishares Semis (IGW)                         5.50%

– Worst 5 Performing ETF’s –

1. Ishares Transportation (IYT)             -3.15%
2. HLDRS Internet (HHH)                       -2.70%
3. PowerShares Retail (PMR)               -1.65%
4. HLDRS Retail (RTH)                            -.70%
5. India Fund (IFN)                                  -.65%

**  There are no IPO’s worth watching for the coming week **

** Upcoming Economic Reports (7/31/06- 8/4/06) **

Monday:        Chicago PMI
Tuesday:       ISM Manufacturing, Personal Income, Construction Spending, Retail Sales
Wednesday:  Petroleum Status, Mortgage Apps
Thursday:      Money Supply, Factory Orders, ISM Non Manufacturing, Monster Employment  
                       Index, Jobless Claims
Friday:           Employment Situation, Public Debt

** Latest Blog Entries – In Case You Missed Them!**

– SelfInvestors Blog –

1. Dow Surges Above Downward Trend Line, But Market Flashes Red Flags (July 30th)
http://investing.typepad.com/tradingstocks/2006/07/dow_also_surges.html

2. Today’s Notable Earnings Movers (FORM, RACK) (June 28th)
http://investing.typepad.com/tradingstocks/2006/07/todays_notable__3.html

3. Today’s Notable Earnings Movers (AKAM, KNDL) (June 27th)
http://investing.typepad.com/tradingstocks/2006/07/todays_notable__2.html

4. Today’s Notable Earnings Movers (TRMB, CHH) (June 26th)
http://investing.typepad.com/tradingstocks/2006/07/todays_notable__2.html

5. S&P Clears Resistance, Dow Next? (June 25th)
http://investing.typepad.com/tradingstocks/2006/07/sp_clears_resis.html

6. Today’s Notable Earnings Mover’s (HOLX, NTRI) (June 25th)
http://investing.typepad.com/tradingstocks/2006/07/todays_notable_.html

On Tuesday, the market showed great resiliency by shrugging off bombings in India and reversing off the lows to end the day at the highs.  It was another big step in the right direction and it appeared the market was ready for a little run above key resistance levels (the 50 day moving averages of the Dow and S&P500).  That all changed with increasing tensions in the Middle East toward the end of the week.  With escalating violence and oil prices (break out to all time highs), the market turned tail, selling off with volume and setting up a move to retest the previous lows of the correction.  Despite the heavy selling of last week, there are no signs that the market is done selling.    I mentioned in a report during the week (www.investing.typepad.com), that the 2 year trend lines of the Dow and S&P500 are now in danger as well (the Nasdaq remains well below this important level of support).  With earnings kicking off in full force beginning this week, inflation data on Tues and Wed, FOMC minutes Thurs and the escalating situation in the Middle East, volatility will remain the name of the game.  I wouldn’t be surprised to see some sort of panic selling in the near future and a breach of those important trend lines.  How the market recovers from this kind of selling will be very important.  At this point, it’s best to get out of the way and let this market do its thing and test those trend lines from the sidelines. 

Following Tuesdays higher volume reversal, I made the mistake of anticipating a few more up days instead of being more patient and waiting for a confirmation move above resistance.  I initiated a couple more small long positions and was caught leaning the wrong way.  The Model Portfolio took a little hit, but damage was kept to a minimum as profits were locked in and losses cut quickly.  All  5 long positions were closed (3 Quick Strike Profit plays in CELG, BMRN and VRTX were closed for an average loss of 1.34%; 2 Breakout Stock plays were closed for an average loss of 4.15%).  The Model Portfolio was down about 1.5% for the week, but still well ahead of the S&P500 with a YTD gain of 12.9%, compared to a 1% loss for the S&P.

** Best/Worst Performers **

– Top 10 Performing Industries For the Week –

Oil stocks were clearly the leaders of last week, but considering the breakout to all time highs, those gains are not impressive.  There is a clear divergence right now between the price of crude and the price of most of the oil stocks.  Traders are probably waiting for the earnings of these companies to be released.  Keep an eye on how the stock prices react once earnings are released.

1. Multimedia & Graphics                  4.65%
2. Oil & Gas Equip & Services          2.80%
3. Major Integrated Oil & Gas            0.65%
4. Silver                                             0.65%
5. Independent Oil & Gas                  0.30%
6. Health Care Plans                          0.00%
7. Home Health Care                         -0.16%
8. Oil & Gas Refining & Marketing     -0.18%
9. Oil/Gas Drilling & Exploration         -0.20%
10. Banks – Southeast                       -0.25%

– Top 10 Worst Performig Industries For the Week –

1. Major Airlines                             -10.55%
2. Manufactured Housing                -9.90%
3. Catalog & Mail Order Houses       -9.90%
4. Farm & Construction Machinery   -9.75%
5. Regional Airlines                           -9.10%
6. Sporting Goods                            -9.10%
7. Residential Construction              -8.75%
8. Drug Related Products                 -7.90%
9. Music & Video Stores                  -7.50%
10. Building Materials Wholesale     -7.50%

– Top 5 Best Performing ETFs For the Week –
 
1. Ishares Gold (IAU)                        6.30%
2. StreetTracks Gold (GLD)              6.18%
3. Ishares Silver (SLV)                     3.75%
4. DB Commodity (DBC)                    3.60%
5. Ishares US Energy  (XLE)             2.00%

– Worst 5 Performing ETF’s –

1. SPDR Homebuilders (XHB)               -8.85%
2. Ishares Mexico (EWW)                     -6.95%
3. Ishares Japan (EWJ)                        -6.10%
4. Ishares Transportation (IYT)            -6.00%
5. Ishares Sweden  (EWD)                  -5.95%

**  IPO’s Set to Launch This Week **

It’s a real slow week for IPO’s

1.  NewPage Holdings (NWP):  The largest North American maker of coated paper by production capacity continues to operate at a loss.

** Upcoming Economic Reports (7/17/06- 7/21/06) **

Monday:        Industrial Production, NY Empire Manufacturing
Tuesday:       PPI
Wednesday:  CPI, Housing Starts, Petroleum Status, Mortgage Apps
Thursday:      Money Supply, FOMC Minutes, Philly Fed Survey, Jobless Claims
Friday:           None

With Fed rate hikes priced into the market for the most part, traders are beginning to turn their attention to the economy.  With the meat of earnings season fast approaching we should get a good idea just how fast the economy is cooling.  On Friday, traders initially liked the fact that the jobs number came in lower than expected as premarket trading had the indexes up, but ultimately felt that it was a sign the economy may be slowing too quickly.  Combine that with a warning out of 3M and by the end of the day, the market had sold off on increasing volume.  Not the kind of action you want to see following a market rally.  If 3M is any indication of what’s to come this earnings season, we’re in for a long summer… er should I say a "short" summer. 

In the Model Portfolio last week,  (only available to premium members) I made just one transaction in the holiday shortened week.  On Friday, I closed the Quick Strike Profit play in Open TV Corp. (OPTV) at 3.76 for a small loss.  I’m currently long 15% with 3 positions (all showing a gain), short 5% (one position that is down 3%) and the rest in cash.  The portfolio continues to hover around a 15% gain year to date.  Considering I rarely hold a stock through its earnings report, earnings season is typically a time when I don’t hold many positions.  The strategy paid off big last quarter when I began to liquidate positions around the middle of April ahead of earnings reports. 

** Best/Worst Performers **

– Top 10 Performing Industries For the Week –

1. Major Airlines                                4.45%
2. Cigarettes                                     4.02%
3. REIT – Residential                          1.90%
4. Aluminum                                      1.88%
5. REIT – Diversified/Industrial           1.71%
6. Major Integrated Oil/Gas                1.70%
7. Toy & Hobby Stores                      1.65%
8. Regional Airlines                            1.62%
9. Medical Laboratories/Research     1.10%
10. Cement                                         1.00%

– Top 10 Worst Performig Industries For the Week –

1. General Building Materials          -6.10%
2. Catalog & Mail Order Houses     -6.05%
3. Semiconductor – Integrated       -5.40%
4. Internet Software & Services   -5.20%
5. Sporting Goods Stores             -4.40%
6. Resorts & Casinos                    -4.35%
7. Drugs – Generic                        -4.35%
8. Specialty Eateries                     -3.77%
9. Pollution & Treatment Controls  -3.75%
10. Music & Video Stores             -3.75%

– Top 5 Best Performing ETFs For the Week –
 
1. Turkish Invest FD (TKF)                5.95%
2. Ishares Mexico (EWW)                 4.60%
3. Mexico Fund (MXF)                       4.40%
4. Central Fund of Canada (CEF)      2.67%
5. Ishares Gold  (IAU)                       2.40%

– Worst 5 Performing ETF’s –

1. India Fund (IFN)                                 -4.70%
2. Powershares Dynamic Semi (GLD)  -4.70%
3. HLDRS Broadband (BDH)                 -4.55%
4. Japan Small Cap (JOF)                     -4.50%
5. HLDRS Internet (HHH)                       -4.40%

**  IPO’s Set to Launch This Week **

1.  Cowen Group (COWN):  New York  based financial services firm dating back to 1918 – it’s an investment bank providing research, sales and trading, and invesment banking services to companies and instiutional investor clients primarily in the healthcare, technology, media and telecommunications, and consumer sectors.  Starts trading Thursday.

2.  Allied World Assurance Holdings (AWH): Bermuda based specialty insurance and reinsurance company underwriting property and casualty insurance and reinsurance lines of business through its operations in Bermuda, the US, Ireland and the UK.  Sales were flat in the past year while earnings were up about 50%.  Trading set to start on Wednesday.

3.  Valero GP Holdings (VEH): San Antonio based limited partner, which owns Riverwalk Logistics, the general partner of Valero, a publicly traded partnerhip.  Both sales and earnings have vaulted around 50% in the past year.  Set to start trading on Friday.

** Upcoming Economic Reports (7/10/06- 7/14/06) **

Monday:        Consumer Credit, Wholesale Trade
Tuesday:       Economic Optimism, Retail Chain Store Sales
Wednesday:  Trade Balance, Petroleum Status, Mortgage Apps Survey
Thursday:      Treasury Budget, Money Supply, Jobless Claims
Friday:           Import Price Index, Consumer Sentiment (prelim.), Retails Sales
                      Business Inventories

** Current Market Outlook **

In the last Weekly Review I mentioned it was important to begin dabbling in long positions or at the very least have those long watchlists at the ready because there was a decent chance we would get a relief rally following the Fed announcement on Thursday… and a nice rally we got!  While the volume behind the move wasn’t exceptional, it was an important move and likely indicates that this market has bottomed.  It’s time to begin pursuing long positions with a little more aggression.

In the Model Portfolio last week,  (only available to premium members) I began initiating long positions and am currenly holding 4 long positions and one short position.  I’m currently long 25%, short 5% and the rest in cash.  The portfolio continues to hover around a 15% gain for the year.  I will most likely add another long or two in the coming week and possibly cover the short position.

** Best/Worst Performers **

– Top 10 Performing Industries For the Week –

1. Silver                                             7.90%
2. Copper                                          7.20%
3. Machine Tools & Accessories      7.15%
4. Toy & Hobby Stores                      7.00%
5. Security Software & Services      7.00%
6. Oil & Gas Refining/Marketing         6.95%
7. Resorts & Casinos                        6.40%
8. Rental & Leasing Services            6.30%
9. Steel & Iron                                    6.25%
10. Metal Fabrication                         6.05%

– Top 10 Worst Performig Industries For the Week –

1. Auto Parts Stores                       -9.05%
2. Home Furnishing Stores             -3.00%
3. Semiconductor – Memory           -2.30%
4. Drugs – Generic                         -2.30%
5. Information Tech  Service          -1.75%
6. Education & Training Services   -1.70%
7. Beverages – Wineries & Dist.     -1.10%
8. Home Improvement Stores         -.90%
9. Medical Appliances & Equip       -.85%
10. Computers Wholesale              -.75%

– Top 5 Best Performing ETFs For the Week –
 
1. Turkish Invest FD (TKF)                         18.40%
2. Templeton Russia and E. Europe (TRF) 13.10%
3. Central Europe & Russia (CEE)              11.30%
4. Latin America Discovery (LDF)               9.90%
5. Ishares South Africa (EWZ)                    9.50%

– Worst 5 Performing ETF’s –

1. SPDR Homebuilders (XHB)            -.90%
2. Ishares Networking (GLD)              .20%
3. Ishares 1-3 yr Treasury (SHY)       .30%
4. Powershares Clean Energy (PBW) .30%
5. Ishares Aggregate Bond (AGG       .50%

**  No IPO’s Set to Launch This Week **

** Upcoming Economic Reports (7/3/06- 7/7/06) **

Monday:        ISM Manufacturing, Construction Spending, US Motor Vehicle Sales
Tuesday:       Market Closed Today
Wednesday:  US Factory Orders, Retail Sales, Petroleum Report
Thursday:      Money Supply, ISM Non Manufacturing, Mortgage Apps, Jobless Claims
                      Monster Employment Index
Friday:           Employment Situation

** Latest Blog Entries – In Case You Missed Them!**

– SelfInvestors Blog –

1. F-E-D Spells Relief
http://investing.typepad.com/tradingstocks/2006/06/fed_spells_reli.html