It’s been a couple weeks since I’ve sent out a market report, but with the holiday weekend and traders not willing to commit one way or another, there hasn’t been much to report on.  So, that’s where we remain.  A stalemate.  I think at this point you have to give the bulls the benefit of the doubt and believe that it’s possible we’ll test the old highs.  I’m 50/50 right now as long as we remain above those 50 day moving averages in the major indices.   Any high volume selling and a breach of those support levels and we’re looking at a test of prior lows somewhere along the 200 day moving averages.  The bottom line is that we’re kind of in no man’s land here.  I’ve been saying it for several weeks again and I’ll continue to say it.   If you’re not a short term trader, it’s best to stear clear of this market right now.  I still think before it’s all said and done we will test those 200 day moving averages.  It’s just going to be extremely difficult for the market to blow through those multi year highs with authority.  I’m waiting for more clues before I make large bets on either side.

::: Model Portfolio Update :::

I’m don’t have much time to write up a detailed report this week regarding positions traded in the portfolio last week, but I will say that I increased my exposure to the long side significantly to get the portfolio biased to the long side.  I continue to feel that longer term core holding are too much of a risk right now and prefer the short Quick Strike Profit plays.  I’m hesitant to increase my exposure any more on the long side considering that there is still a decent chance that the market could test previous lows.  Ideally, I’d like to exit a few of my QSP trades for quick profits and then just sit primarily in cash until this market works itself out.  Currently, the portfolio holds steady at 7.5% YTD return and it hasn’t budged from that level for several weeks.  Current allocation is 49% long, 34% short and 17% cash.

::: Best/Worst Performers :::

– Top 10 Performing Industries For the Week –

1. Long Distance Carriers: 7.60%
2. Major Airlines: 6.80%
3. Industrial Metals & Minerals: 6.45%
4. Silver : 6.00%
5. Nonmetallic Mineral & Mining: 5.40%
6. Diversified Communications: 5.25%
7. Railroads:  5.15%
8. Diagnostic Substances: 5.00%
9. General Contractors: 4.65%
10. Synthetics: 4.55%

– Top 10 Worst Performing Industries For the Week –

1. Dairy Products: -4.10%
2. Farm Products: -3.50%
3. Banks – SE Regional: -2.00%
4. Toy & Hobby Stores: -1.85%
5. Semiconductor – Memory Chips: -1.80%
6. Advertising Agencies: -1.80%
7. Regional – Pacific Banks: -1.60%
8. Diversified Electronics -1.20%
9. Banks – SW Region: -1.20%
10. Savings & Loans: -1.05%

– Top 5 Best Performing ETFs For the Week –
 
1. Morgan Stanley China (CAF)  13.95%
2. Templeton Dragon Fund (TDF) 9.05%
3. China Fund (CHN) 6.60%
4. Turkish Invest Fund (TKF) 6.30%
5. Ishares Singapore (EWS) 5.90%

– Worst 5 Performing ETF’s –

1. Herzfeld Caribbean Basin (CUBA)  -9.35%
2. United States Oil Fund (USO) -5.60%
3. PowerShares Commodity (SLV) -1.10%
4. KBW Bank (KBE) -.95%
5. Ishares Commodity (GSG) -.50%

:::  IPO’s Worth Watching for This Week :::

It’s a light week for IPO’s .. none worth watching.

::: Upcoming Economic Reports (4/9/07 – 4/13/07) :::

Monday:        None
Tuesday:       None
Wednesday:  FOMC Minutes, Crude Inventories, Treasury Budget
Thursday:      Export/Import Prices, Initial Claims
Friday:           PPI, Trade Balance

::: Notable Upcoming Earnings Reports I’ll Be Watching This Week :::

Wednesday: Research in Motion (RIMM), Genentech (DNA)

Thursday: Vimpel Communications (VIP), Fastenal Co. (FAST)

Friday: Infosys Technologies (INFY)