** 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