What a difference a week makes.  With a light economic calendar last week and earnings not yet in full force, I didn’t expect the market to make any significant moves.  However, a big plunge in crude helped fuel a break out from a 6 week consolidation in the Nasdaq as big money moved from oil and other commodities into technology related areas.  The bulls clearly remain in charge with key support areas still intact to begin the new year, but with earnings season beginning to ramp up this week and inflation data on Wednesday and Thursday, expect some volatile moves ahead. 

::: Model Portfolio Update :::

I mentioned in a previous report I would remain relatively cautious this month until the market reveals more clues about where it’s headed.  Following last week’s breakout I may begin getting aggressive again and leveraging with margin on the long side.  Last weeks was a relatively quiet one with one sale of a quick strike profit trade in RMKR for a loss.  I was playing ultra conservatively and anticipated a breakdown of the stock following a move below support of the 50 day moving average.  Of course in hind sight it was a bad move as the stock vaulted higher the very next day and hasn’t looked back.  It continues to look very bullish.  On the long side I initiated to new long plays, both of which are highly ranked and were bouncing off the 50 day moving average.  The positions are up 12% and 7% respectively in just the past week.  After 2 trading weeks, the Self Investors Model Portfolio has picked up where it left off in ’06 with a nice gain of 5.5%, compared to just 1% for the S&P 500.  I’m currently 91% long and 9% cash.

::: PinPoint the Highest Ranked Breakout Stocks in Just Minutes Each Day! :::

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::: Best/Worst Performers :::

– Top 10 Performing Industries For the Week –

1. Resorts & Casinos: 8.05%
2. Aluminum: 7.75%
3. Medical Practitioners: 7.35%
4. Home Furnishing Stores: 7.00%
5. Investment Brokerage: 6.80%
6. Personal Computers: 6.80%
7. Major Airlines: 6.45%
8. Broadcasting – Radio: 5.90%
9. Air Services – Other: 5.75%
10. Apparel Stores: 5.70%

– Top 10 Worst Performing Industries For the Week –

1. Major Integrated Oil & GAs: -1.50%
2. Music & Video Stores: -1.25%
3. Manufactured Housing: -1.05%
4. Long Distance Carriers: -1.00%
5. Diversified Communications Services: -.80%
6. Photographic Equipment & Services: -.75%
7. Farm Products: -.70%
8. Oil & Gas Refining & Marketing: -.60%
9. Electric Utilities: -.55%
10. Mortgage Investment: -.45%

– Top 5 Best Performing ETFs For the Week –
 
1. Ishares Broker Dealers (IAI) 6.00%
2. Templeton Dragon Fund (TDF) 5.95%
3. Turkish Invest Fund  (TKF) 5.00%
4. Ishares Silver (SLV) 4.95%
5. Ishares Realty (ICF) 4.85%

– Worst 5 Performing ETF’s –

1. US Oil Fund (USO)  -6.70%
2. HLDRS Utilities (UTH) -3.85%
3. Japan Small Cap (JOF) -1.95%
4. Latin America Discovery Fund (LDF) -1.80%
5. Ishares Commodity (GSG) -1.60%

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

The IPO Calendar is typically quiet at the start of a new year – no IPO’s worth watching again for this week.

::: Upcoming Economic Reports (1/15/07- 1/19/07) :::

Monday:        Market Closed
Tuesday:       None
Wednesday:  PPI, Capacity Utilization, Industrial Production, Fed Beige Book, Crude Inventories
Thursday:      CPI, Building Permits, Housing Starts, Initial Job Claims, Philly Fed, Leading
                       Indicators
Friday:           Consumer Sentiment (prelim)

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

Tuesday: Ameritrade (AMTD), Intel (INTC), New Oriental Education (EDU)
Wednesday: Apple (AAPL), Lennar Corp (LEN), Southwest Airlines (LUV), Witpro (WIT)
Thursday: Meridian Biosciences (VIVO)
Friday: Citigroup (C), General Electric (GE), Motorola (MOT), Satyam Computer (SAY), Schlumberger (SLB)

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

– SelfInvestors Blog –

1. After Market Report: That’s a Nasdaq Breakout; Stock of Day – Genentech (DNA)
http://investing.typepad.com/tradingstocks/2007/01/after_market_re.html

2. Top Stock Picks and ETF Trends for 2007 (video is a humorous reprieve from the typically dry market material, but perhaps a bit crass – you’ve been warned 🙂
http://investing.typepad.com/tradingstocks/2007/01/ill_be_back_soo.html