** Current Market Outlook **

After taking out previous lows of this recent correction with heavy volume, the market continued its whipsaw ways by staging a big advance on Thursday.  On CNBC, the fact it was one of the biggest moves in the last couple years made a nice little headline for the day, but that’s about it at this point.  It’s easy to get wrapped up in a move like that and want to jump in and make some money on the long side.  Avoid the temptation.   Volume behind the move was surprisingly absent for such a large move.  More importantly, key resistance levels loom.  What I’m continuing to look for is decreasing sell volume as an indication that the tide is turning.  We’re not seeing that quite yet, but may be close.  As the market faces resistance in the coming days, nice short opportunities will once again emerge, but the best option right now is to remain patient and on the sidelines.

In the Model Portfolio,  (only available to premiuim members) I was forced to cover my long position in Baidu.com (BIDU) for a small loss.  Later in the week a new short position was initiated and is currently the only position in the portfolio.

** Best/Worst Performers **

– Top 10 Performing Industries For the Week –

1. Semiconductor Integrated Circuit  6.60%
2. Steel & Iron                                    6.54%
3. General Entertainment                   6.53%
4. Semiconductors – Memory            6.24%
5. Recreational Vehicles                   6.00%
6. Farm & Construction Machinery    5.75%
7. Diversified Computer Systems      5.52%
8. Industrial Electrical Equip               5.40%
9. Copper                                           5.11%
10. Aerospace/Defense                    5.00%

– Top 10 Worst Performig Industries For the Week –

1. General Building Materials          -4.60%
2. Printed Circuit Boards                 -4.55%
3. Manufactured Housing               -2.60%
4. Appliances                                 -2.15%
5. Waste Management                   -2.00%
6. Office Supplies                          -1.85%
7. Banks – Midwest                        -1.75%
8. Music & Video Stores                -1.60%
9. Education & Training Stores      -1.60%
10. Banks – Pacific                        -1.55%

– Top 5 Best Performing ETFs For the Week –
 
1. India Fund (IFN)                                      15.63%
2. Morgan Stanley India Investment (IIF)    10.45%
3. Templeton Russia and E. Europe (TRF)   9.75%
4. Morgan Stanley E. Europ (RNE)               7.75%
5. Central Europe & Russia (CEE)                7.30%

– Worst 5 Performing ETF’s –

1. Ishares Gold (IAG)                     -4.00%
2. StreetTracks Gold (GLD)           -3.91%
3. Regional Bank Holders (RKH)    -1.85%
4. Ishares Treasury (TLT)             -1.73%
5. SPDR Financial  (XLF)               – 1.58%

**  IPO’s Set to Launch This Week **

1.  Hexion Specialty Chemicals (HXN): A profitable, world leading producer of thermosetting resins used in paints, coatings and glues.  Starts trading Thursday.

2.  Home Bancshares (HOMB): fast growing Arkansas based financial holding company that’s set to start trading on Friday.

3.  Techwell (TWLL): a small, but profitable and rapidly growing semiconductor designer of mixed signal integrated circuits for video applicaitons in the consumer, security surveillance and automotive markets.  Starts trading on Thursday.

** Upcoming Economic Reports (6/19/06 – 6/23/06) **

Tuesday:       Housing Starts, Retail Sales
Wednesday: Petroleum Status Report, Mortgage Applications
Thursday:     Money Supply, Leading Indicators, Jobless Claims
Friday:          Durable Goods Orders

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

– SelfInvestors Blog –

1. Rise To Resistance
http://investing.typepad.com/tradingstocks/2006/06/rise_to_resista.html

– ETF Central –

No new entries.