Today’s Earnings Movers – Amdocs (DOX), Meridian Bioscience (VIVO)

Here are today’s notable earnings movers…

Note: * fundamental rank in brackets does not include latest results
         * earnings movers only include those stocks in the SelfInvestors.com database at this time, so
           won’t include managed stocks that are technically damaged (ie. YHOO)

UP

  • Amdocs (DOX) Business Software & Services, fundamental rank [26/30] up 10%, breaking out of double bottom base
  • East West Bancorp (EWBC) Banks – Pacific, fundamental rank [26/30] up 7%, carving out the right side of a base

DOWN

  • Meridian Bioscience (VIVO) Diagnostic Substances, fundamental rank [26/30] down 11%, taking out the 200 day moving average
  • Peabody Energy (BTU) Industrial Metals & Minerals, fundamental rank [26/30] down 8%, testing the 200 day moving average
  • LaSalle Hotel Properties (LHO) REIT – Hotel/Motel, fundamental rank [24/30] down 7%, holding at 50 day moving average, keeping recent breakout intact
  • Alliance Data Systems (ADS) Information Delivery Services, fundamental rank [26/30] down 5%, turned away at resistance of the 50 day moving average (looking more and more like a good short)

Today’s Earnings Movers – CIT Group (CIT), Lufkin (LUFK)

Here are today’s notable earnings movers…

Note: * fundamental rank in brackets does not include latest results
         * earnings movers only include those stocks in the SelfInvestors.com database at this time, so
           won’t include most stocks that are technically damaged (ie. YHOO)

UP

  • Lufkin Industries (LUFK) Oil & Gas Equip & Services, fundamental rank [26/30] up 8%, carving out right side of sloppy base, bouncing off 200 day moving average

DOWN

  • CIT Group (CIT) Credit Services, fundamental rank [24/30] down 8%, there goes any hopes of a half way decent base

Breakout Highlights – Cascade Bancorp (CACB)

It’s been quite awhile since I’ve posted a Breakout Highlights report… my apologies for the limited posting of late, but with some projects I’m working on for SelfInvestors.com and the lackluster market it’s been both difficult to find the time and enthusiasm to write about the markets of late.  Once the project is done in a couple weeks, I’ll be posting much more frequently.  Although with the bulk of earnings coming up this week, don’t forget to check out the Earnings Highlights posts each morning which take a look at stocks moving big either way on earnings.  That will begin tomorrow.

It’s no secret that breakout stocks don’t fare well in a sliding market as we’ve seen over the past several weeks.  In the past 2 weeks the SelfInvestors.com database tracked a limited number of unsuccessful breakouts.  Just two of the 15 breakouts finished the period with a gain – Cascade Bancorp (CACB) and Cash America (CSH), both up 2%.  Twelve finished with losses (and they were fairly steep with an average loss of around 9%).  Despite the poor performance, just 3 stocks made what I would call failure moves (an 8% or more drop AND below the first major level of support).

Now is certainly not the time to try and chase a bottom, especially with CPI and PPI data, FOMC minutes and Mid East violence all expected to create big time volatilitly in the coming days.  However, there are some opportunities in this top breakouts list worth putting on the ‘ol watch list for future consideration.

To see the larger image of the list

The best opportunity in the list that I see is Cascade Bancorp (CACB) which broke out with force following an outstanding earnings report on Thursday.  Technicals look for very strong as well with a nice shallow base followed by the high volume breakout to a new all time high.  It’s returned to a buyable range today, but it’s probably best to wait to see how it reacts to the upcoming inflation data on Wed and Thurs, which would weigh heavily on the Fed’s decision with future rate hikes.

Weekly Market Review – Big Week Ahead

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

Two Year Trend Lines In Jeopardy

On Tuesday, the market appeared to be setting up for a tradeable rally off support levels by reversing sharply off the lows in higher volume.  It didn’t take long for the bears to rush in and spoil the optimism, taking out key support levels in the process.

With geopolitical concerns comes rising oil prices, comes curbing inflation worries, comes slowing economy..  sure, that’s a wall of worry for the market to climb, but the wall may be too big.  Here’s a look at the chart of crude.  I’m still not completely convinced that crude is going to break out of this base successfully and soar to $100/barrel, but anything is possible.  I’d want to see one more big move above $76/barrel and close there to be convinced that out of control crude prices were on the horizon.

It’s easy to fall into the trap of trying to anticipate moves off the bottom, instead of being patient and waiting for the sure thing.  I was guilty of this and put on an additional long trade on Wednesday, in anticipation that the market would follow through higher for at least a couple days.  Hopes for a quick gain quickly turned into cutting and running with a small loss. 

With the rally attempt failed, we now turn our attention to bottom seeking mode and how much room to the downside could be expected.  The bad news is that the Nasdaq is now firmly entrenched below support of its 2 year trend line and will need a 100 point rise just to get back to that resistance level.  If it weren’t for the S&P and Russell 2000 Growth Indexes holding support above their 2 year trend lines, I’d say we’re in for a lengthy bear market.  It’s the last glimmer of hope for the bulls at this point.  Let’s have a look.

Looking at the 2 year trend on the weekly chart, you see the Naz flirting with that support level over the past month or so, but ultimately holding above.. that is until this week.  Will it reverse sharply and hold that line of support again by Friday of this week?  No, the Nasdaq won’t be rising 100 points tomorrow, so the Nasdaq will close significantly below this key support level.

With the Nasdaq taking out the June lows today, look for a retest of the October lows in the next several days at around the 2025 level.

The glimmers of hope shown below.  Both the S&P500 and the Russell 2000 Growth index [represented here by the Ishares ETF (IWO)], continue to hold above their 2 year trend lines.  If I were a betting man I’d say these support levels would be violated in the next couple of days.  It’s important to see how they recover though.  Perhaps, some sort of capitulation move is in order where these support levels are violated with panic selling, only to give way to a massive reversal.  After selling a few small, long positions today, I’ll be watching this unfold from the sidelines.

Weekly Market Review – Attention Turning to Economy

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

Weekly Market Review – Relief Rally

** 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

F-E-D Spells Relief

The market knows all and forecasts the future, pricing in fears and optimism along the way.  Over the past few weeks the market has been pricing in rate hike, slowing economy and inflation fears and today was a clear indication that the bulk of rate hike fears had been priced in, leading to a relief rally. 

About a week ago, once the Dow made the first move above 1st level resistance levels, I began to prepare SelfInvestors members for the possibility of a coming relief rally once the Fed decision was made.  In the Weekend Roundup report to members I mentioned:

"One significant positive move occurred in the Dow on Wednesday as it cleared first level resistance with volume higher than the day before (but below average).  However, both the S&P and Nasdaq remain submerged below first level resistance levels.  The Fed decision on Thursday may provide important clues as to where this market is headed in the coming weeks.  Just how much of the inflation and rate hike fears are priced into this market?  It’s quite possible that most of those fears have been priced in and we get some sort of relief rally following the Fed decision.  At this point I’m dabbling on both sides of the fence with a bias towards the long side.  It’s important to be prepared for a rally at the end of this week by dabbling in long positions or at the very least have your watchlists at the ready and prepared to make a couple moves."

There has been some speculation that traders read too much in to todays Fed statement and that there is no clear indication that the rate hikes are near an end.  At any rate, shorts covered and buyers rushed in for what technically amounted to a confirmation of a new rally as the major indices spiked 2% or more higher on volume higher than the day before.  No doubt, you’d like to see volume more impressive with a move like we got today but it was a significant step in the right direciton.

But, (you knew that was coming).. important resistance levels remain and this market still has much work to do before we begin a new sustained rally.  Lets keep in mind that it is the end of the quarter, a typically volatile move after a Fed announcemnet and a holiday weekend coming up (sort of).  Today’s move without a doubt signals the go ahead to pursue long positions with a bit more aggression, but with resistance looming and earings season fast approaching, jumping in with both feet remains an unwise decision. Once the bulk of earnings begin to roll in around the middle of July, we’ll have a much better idea of just how well the economy is doing or isn’t doing as well as how inflation is faring.

On to the charts….

The weakest of the major indices, the Nasdaq cleared first level resistance areas today with volume above average and above yesterday’s level indicating accumulation. Volume was good but not outstanding. Institutions may have begun putting money to work today, but they aren’t jumping in with full force and you shouldn’t be either. Today’s move most likely gives the Naz the momentum it needs to test the next level of resistance where the 50 and 200 day moving averages converge. Note: the 50 DMA has crossed below the 200 day moving average which is a bearish indication. It’s a reminder that MUCH work remains as the market works through significant technical damage.

With today’s move, the S&P managed to clear both 1st level resistance of the downward trend line AND resistance of the 50 day moving average. Again, resistance looms at the 50 day moving average. Also, notice the unspectacular move in volume today. With a move of over 2% you’d expect volume to be significantly higher than it was.

 

The Dow is the strongest of the major indices and is already testing 2nd level resistance levels. It cleared first levels resistance back on June 21st and has since been finding support along the downward trend line, ultimately bouncing off of the 200 day moving average.

 

I’d like to share a couple premium reports I sent out to members last week. A few are well extended past a proper buy point, but there remains some great opportunities you may want to consider in the coming weeks.

The Longs

Remains one of the best looking charts around and has held remarkably during the downturn, holding above key support and still in position for a solid breakout above the consolidation.  Look for a high volume break above the highs of the consolidation with volume heavier than it was today as a signal to initiate a small position.

Another great looking chart.  Tight price action, trending along support of the 50 day moving average, good surge in buy volume at the breakout and now digesting those gains to return to the pivot.  Looks like a good entry is shaping up soon at this level with good support around 8.30 and at 8.  Sell volume was a bit heavy today… I’d want to see sell volume dry up to around half or more of the average before getting in.

I like this chart because it represents a scenario where you could play off support or play above resistance (or what could be called a ‘handle’).  Those following strict IBD rules would only buy on a break above 49, but if I see a stock changing momentum, surging above resistance, then consolidating quietly to return to the support level (as GPN) has done here, I can get in with more reward potential and lower risk.  Why?  Because my support levels are much closer to my buy point.  If I buy near support around 46.50, I have very strong support between 46 and 46.50 (where the 50 and 200 day moving averages converge).  I have the safety of support but the underlying momentum to provide significant potential reward.  Remember, as much as investing systems like to package everything into a nice tidy little package, it’s not always so cut and dry.  Master price/volume movements and know where support and resistance levels are and you can come up with your own system for success.


The Shorts

For those that have been premium members here for awhile, may recognize that I always look for a similar pattern when trolling for short positions.  It’s the high volume plunge followed by a weak return to what is now resistance.  It’s a short pattern that often works well with very little risk.  China Life (LFC) and Zoltek (ZOLT) below both offer outstanding short opportunities.  Both stocks are making their way back to resistance of the 50 day moving average so you’ll want to see how it does when it meets that level before initiating a position.  Does the stock continue to run up with weak buy volume only to retreat with increasingly heavy sell volume?  Time to short.

Quick Strike Profits Report (Sent to members June 26th)

Last week I told you about a few high quality long plays as well as plays on the short side.  In current market conditions there are opportunities on both sides, but it’s important to lock in profits (and cut losses) a bit sooner than you normally would.

A couple months ago I launched a new feature for premium members called Quick Strike Profits, which highlights stocks that are pure technical/momentum plays and offer great potential reward in the short term.  These stocks exhibit great looking charts with lots of momentum.  I personally like to supplement my core portfolio holdings with a couple of these plays to give the portfolio a little extra juice.  With market conditions slowly improving, I feel its time to at least begin to take a look at some of these plays again.  Here are a few of my favorites right now:

1.  Vaalco Energy (EGY):  breaking out of long base as buying demand has surged in the last few weeks.  Just cleared an all time high on Friday.  I’d wait for it to come in a bit, but it may not do so.

2.  Celgene (CELG):  broke out of a base on Thursday and cleared an all time high with decent volume.  Remains in buyable range.

3.  Advanced Medical Optics (EYE):  broke out on Friday with decent volume.  Big demand over the past couple weeks and the stock remains in buyable range.

4.  Open TV Corp (OPTV): forming bullish triangle pattern – breakout point is around 3.85 (look for heavy volume on any move above this price)

5.  Quest Communications (Q):  Can you believe it? These guys are still in business and expected to become profitable again in ’06.  Last quarter was the first profitable quarter in several years and that’s been reflected in the stock price which has more than doubled over the last year.  The stock broke out of a decent looking base on June 2nd and has been consolidating in a healthy manner since.  I’d be looking for a breakout from this consolidation as an opportunity to make a small purchase.

Weekly Market Report – Awaiting the Fed

** Current Market Outlook **

It was a fairly quiet week with volume and volatility decreasing as traders await the Fed decision due this Thursday.  While conditions have improved some, the outlook hasn’t changed much.  One significant positive move occurred in the Dow on Wednesday as it cleared first level resistance with volume higher than the day before (but below average).  However, both the S&P and Nasdaq remain submerged below first level resistance levels.  The Fed decision on Thursday may provide important clues as to where this market is headed in the coming weeks.  Just how much of the inflation and rate hike fears are priced into this market?  It’s quite possible that most of those fears have been priced in and we get some sort of relief rally following the Fed decision.  At this point I’m dabbling on both sides of the fence with a bias towards the long side.  It’s important to be prepared for a rally at the end of this week by dabbling in long positions or at the very least have your watchlists at the ready and prepared to make a couple moves.

In the Model Portfolio,  I’m still holding a lone short position which continues to provide a small gain.  If you’ve read the premium Stock Watch report you received last week, you know I’m watching a few long positions for entry.  I’ll be releasing a few more to premium members in the coming days.

** Best/Worst Performers **

– Top 10 Performing Industries For the Week –

1. Silver                                             8.05%
2. Gold                                               7.55%
3. Independent Oil/Gas                      7.10%
4. Trucking                                         6.30%
5. Copper                                           6.20%
6. Internet Service Providers             5.65%
7. Steel & Iron                                    5.35%
8. Shipping                                         5.30%
9. Oil/Gas Pipelines                            5.20%
10. Industrial Metals & Minerals         5.10%

– Top 10 Worst Performig Industries For the Week –

1. Banks – Pacific                            -5.15%
2. Drugs – Generic                          -3.75%
3. Toy & Hobby Stores                   -3.60%
4. Home Furnishing Stores             -2.40%
5. Catv Systems                             -2.40%
6. Publishing Books                        -1.90%
7. Hospitals                                    -1.85%
8. Sporting Goods                          -1.80%
9. Education & Training Services   -1.70%
10. Communication Equip                -1.65%

– Top 5 Best Performing ETFs For the Week –
 
1. Morgan Stanley E. Europe (RNE)             13.25%
2. ASA Gold Mining  (ASA)                        8.65%
3. Latin American Discovery (LDF)            8.50%
4. Market Vectors Gold Miners (GDX)        8.00%
5. Templeton Russia & E. Europe (TRF)      7.75%

– Worst 5 Performing ETF’s –

1. Turkey  (TKF)                             -5.90%
2. HLDRS Broadband (BDH)          -3.26%
3. Chile Fund (CH)                          -2.60%
4. Korea Fund (TLT)                       -2.45%
5. Ishares Realty (ICF)                  – 1.35%

**  IPO’s Set to Launch This Week **

1.  Aventine Renewable Energy (AVR): Sold 13.5% of the total ethanol volume in 2005 and rapidly growing.  Revenues and profits have nearly doubled over the past year.  Starts trading Thursday.

2.  Bidz.com (BIDZ): Online auctioneer of jewelry fast becoming profitable.  Set to start trading on Thursday.

3.  Gmarket (GMKT): South Korea’s #2 online retailer is now profitable and growing rapidly.  Starts trading on Friday.

4.  Gordon Biersch Brewery (BIER): Tennessee based operator of 26 upscale brewery restaurants in 13 states isn’t all that impressive financially over the past year.  Starts trading Wednesday.

5.  J. Crew (JCG):  New York specialty retailer with 164 outlets as well as an online presence.  Has posted very good growth over the past year and set to start trading on Wednesday.

6.  Omniture (OMTR):  Utah based provider of online business optimization software.  Customers use the company’s products to manage online, off-line, and multichannel business initiatives.  Customers include AOL, Apple, eBay, Expedia, Ford, Gannett, HP, Major League Baseball and Microsoft.  The company is growing quickly but not yet profitable.  Starts trading Wednesday.

5.  PGT (PGTI):  Florida based manufacturer of residential impact resistant windows and doors.  Poor financial results over the past year.  Starts trading Wednesday.

6.  Replidyne (RDYN):  produces antibiotic Orapem, which is comarketed and developed with Forest Laboratories.  Company is not yet profitable and doesn’t appear to be close.  Starts trading Wednesday.

5.  Wintegra (WNTG):  Texas based semiconductor company that makes chips used to deliver new services for the evolving communications network infrastructure.  The company is newly profitable and growing quickly.  Shares start trading Wednesday.

** Upcoming Economic Reports (6/26/06 – 6/30/06) **

Monday:        New Housing Sales
Tuesday:       Consumer Confidence, Retail Sales, Existing Home Sales
Wednesday:  FOMC Meeting, Petroleum Status Report, Mortgage Apps
Thursday:      Fed Rate Decision, Money Supply, GDP, Jobless Claims
Friday:           Personal Income, Chicago PMI, Consumer Sentiment

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