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Jeff Bailey : 7/6/2006 11:03:24 PM

Other Major Market Bull% from StockCharts.com

$BPINDU Link (Just 30 stocks; Very narrow, each component's PnF chart worth 3.33%)

$BPOEX Link

$BPNDX Link

$BPNYA Link (Over 3,000 Stocks and VERY broad)

$BPCOMPQ Link (Over 3,000 Stocks and VERY broad)

Jeff Bailey : 7/6/2006 10:54:14 PM

StockCharts.com's $BPSPX Link

Jeff Bailey : 7/6/2006 10:52:34 PM

S&P 500 Bullish % (BPSPX) reverses back up Link

Jeff Bailey : 7/6/2006 10:28:37 PM

06/28/06-07/06/06 Sector Bell Curve found at this Link

Jeff Bailey : 7/6/2006 10:01:54 PM

YM 15-minute interval chart at this Link

OI Technical Staff : 7/6/2006 9:59:59 PM

The Market Monitor has been archived. You may view it and any previous days here: Link

Disclaimer: Stocks discussed in the Market Monitor are for educational purposes only and any analysis is not meant to imply a recommendation for or against that stock. The analysts in this forum as on any other website are prohibited by the SEC from giving any specific advice to ANY individual trader. All information posted is for ALL readers and is not meant to be directed to any individual. Our analysts cannot answer any email questions regarding any specific stock. Please do not ask and please do not take offense if requests are denied.

Results posted in the Market Monitor are hypothetical and OIN does not claim that any reader achieved these exact results. Due to the lag time between research, writing, posting, uploading, reading and execution there will be differences between the actual signal given and the fill achieved by the reader. Fills may be better or worse but in most cases they will be different. The writers will make every effort to give advance notice of intended signals and indicate potential price targets. Your individual results may vary depending on your activity level and aggressiveness. This forum is intended as an education service only. Trading involves risk and should not be attempted by anyone not ready to accept this risk. By acting on any signal in this forum you agree and personally accept this risk.

Jeff Bailey : 7/6/2006 9:57:52 PM

YM Pivot Matrix found at this Link

Jeff Bailey : 7/6/2006 9:27:11 PM

Index Pivot Matrix for Friday at this Link

Jeff Bailey : 7/6/2006 6:17:19 PM

Current OPEN MM Profiles that I've made at this Link

Today's Activity

Stocks/Options

With the StreetTracks Gold (GLD) so near my bullish target ($63.50) and risk/reward becoming less favorable (per profile) I decided to close out the 1/2 bullish position at the bid of $63.04 ($+4.69/share, or +8.04%) "Boo-yah!" to gold futures bulls!

Swing traded long just over 3/4 position in shares of Altria (MO) at $77.10. Stop at $72.00 and targeting $90.00. (Note: MO currently trades ex-dividend, payable 07/10/06)

YM Futures

I did not profile a YM trade today.

Jeff Bailey : 7/6/2006 5:24:59 PM

Closing Internals found at this Link

Jeff Bailey : 7/6/2006 5:05:00 PM

Closing U.S. Market Watch found at this Link

Jeff Bailey : 7/6/2006 4:46:11 PM

Technocracy: A government or social system controlled by technicians, especially scientists and technical experts.

Technocrat: An adherent or a proponent of technocracy.

Jeff Bailey : 7/6/2006 4:42:28 PM

Mexico Final Vote Count 100% Complete; Calderon Ahead

DJ- The ruling party's Felipe Calderon won the official count in Mexico's disputed presidential race Thursday, the culmination of a come-from-behind campaign for the stiff technocrat. But his leftist rival also declared victory and said he'd fight the election in court.

Calderon was already reaching out to other parties to build a "unity government," while his rival, Andres Manuel Lopez Obrador, blamed fraud for his narrow loss in the vote count and called on his supporters to fill Mexico City's main square Saturday in a show of force.

With all of the 41 million votes counted, Calderon of President Vicente Fox's National Action Party had 35.88% to 35.31% for Lopez Obrador, of the Democratic Revolution Party. The two were separated by about 220,000 votes.

Roberto Madrazo, whose Institutional Revolutionary Party controlled Mexico for 71 years until Fox's victory in 2000, had 22.27%, and two minor candidates split the rest.

Jane Fox : 7/6/2006 4:15:29 PM

Economic Reports tomorrow include:
8:30a.m. June Non-Farm Payrolls. Consensus: +170K. Previous: +75K.

8:30a.m. July Unemployment Rate. Consensus: 4.6%. Previous: 4.6%.

Jeff Bailey : 7/6/2006 4:00:47 PM

Sell Program Premium ... SPY 127.33 : YM 11,280

Jeff Bailey : 7/6/2006 3:59:44 PM

Bullish swing trade close out alert for the StreetTracks Gold (GLD) at the bid of $63.04

Jeff Bailey : 7/6/2006 3:54:27 PM

Bullish swing trade raise stop alert for StreetTracks Gold (GLD) $63.05 +0.88% ... to $63.00.

6-minutes to close.

Jeff Bailey : 7/6/2006 3:50:27 PM

TNK-BP SELLS UNIT TO SINOPEC FOR ABOUT $3.5B

DJ- Anglo-Russian oil producer TNK-BP sells its Udmurtneft unit to China's Sinopec Group for $3.5 billion, the company says in a prospectus for its Eurobond issue, reports Russian news agency Interfax.

Jeff Bailey : 7/6/2006 3:50:45 PM

Florida High Court Tosses $145B Award in Engle Case (update)

DJ- In a decision that is being cheered by both sides of the tobacco debate, the Florida Supreme Court Thursday upheld a lower court's decision to toss out a $145 billion punitive damage award against the industry in the Engle case.

The decision, which reverses the largest punitive damage award in history, is being seen by many on Wall Street as helping to pave the way for Altria Group Inc. (MO), parent of Marlboro maker Philip Morris USA, to break up into as many as three separate companies.

However, anti-tobacco activists also regard the court's decision favorably as it could open the way for thousands of sick Florida smokers to pursue lawsuits against the tobacco industry without having to prove the cigarette makers were negligent in selling a product that they knew was harmful.

In an unanimous ruling, the Florida Supreme Court supported a May 2003 decision by a three-judge panel of Florida's Third District Court of Appeals to throw out the punitive damages in the case, which is named after Howard Engle, a Florida pediatrician who was its lead plaintiff.

"We vacate the punitive damages award because we unanimously conclude that the punitive damages award is excessive as a matter of law," the court wrote in its 79-page ruling.

However, the state high court said the appellate court erred in concluding that a settlement between the state of Florida and the tobacco companies prevented the plaintiffs from collecting damages. In addition, the court is allowing some of the class findings to stand, but individual smokers will need to prove the damages they suffered on a case-by-case basis.

This potentially opens the door for thousands of Florida smokers to file suits against the industry, according to Richard Daynard, a law professor at Northeastern University in Boston who has helped formulate strategies to sue cigarette companies.

"I think this is tremendously positive," Daynard said.

The court also let stand $7 million in compensatory damages to two of the three lead plaintiffs in the case - Mary Farnan and Angie Della Vecchia.

The case, which was filed against the five largest U.S. cigarette makers more than a decade ago, was the first personal-injury lawsuit against the tobacco companies to move to trial. Originally, it sought to collect damages from the tobacco industry on behalf of sick smokers nationwide. However, in 1996, an intermediate state court limited the case to Florida smokers only.

The trial was divided into several phases that stretched over two years. In July 2000, the jury said the companies had misled the public about the dangers of smoking, and awarded Engle and two other plaintiffs $12.7 million in compensatory damages and members of the class $145 billion in punitive damages.

But three years ago, an appellate court said smokers and their issues were too diverse to be lumped into a single claim and unanimously decided to decertify the class and throw out the verdict.

Tobacco stocks rallied on Thursday's news. Recently, Altria shares, which are a component of the Dow Jones Industrial Average, were up $3.88, or 5.3%, to $77.18 in volume of 32.2 million shares. The stock's average daily volume is 7.5 million shares.

Shares of Reynolds American Inc. (RAI), the company formed by the merger of defendants Reynolds Tobacco and Brown & Williamson, climbed 4.0%, or $4.53, to $118.89.

Reynolds, which makes Camel and Kool cigarettes, said it was reviewing the decision.

"We are certainly pleased that the court unanimously decided that the $145 billion in punitive damages violated due process and was excessive as a matter of law. These were certainly critical issues in this case," said company spokesman David Howard.

Other defendants in the case were Lorillard Tobacco Co., a unit of Loews Corp. (LTR), and Liggett Group Inc., a unit of Vector Group Ltd. (VGR). Liggett declined to comment; Lorillard wasn't immediately available for comment.

Still, Philip Morris is deciding, after a thorough analysis of the opinion, whether to seek further appellate review.

Although Philip Morris agrees with the court's findings that tobacco cases can't be treated as class actions, the company disagrees with the Florida Supreme Court's conclusion that certain issues should be considered as resolved. For example, the court has determined that cigarettes should be seen as addictive and that the companies concealed this from the public.

Even so, it appears smokers will be able to pursue their claims on an individual basis. The decision does much to discourage large class-action suits, according to Jonathan Turley, a law professor at George Washington University, who isn't involved in the case, but reviewed the opinion. Turley has been an advocate for class-action reform.

"The justices ruled that this class was too large, too conflicted, and too unwieldy," Turley said. "This thing was the Battlestar Galactica of class-action cases."

Turley expects the decision will have a positive effect on other tobacco litigation. "It is a substantial reversal of fortune for the industry," he said.

In addition, investors are expecting the case to have significant ramifications for Altria. Chairman and Chief Executive Louis Camilleri has been waiting for the appropriate time to split the company into two or three parts - a move Altria expects could unlock further value for the company's shareholders.

In addition to Philip Morris USA, the New York-based company owns Philip Morris International and Kraft Foods Corp. (KFT). Each of these units could become a standalone company.

Camilleri has identified Engle as among the cases that will help determine whether the litigation environment is favorable for a break-up of the company.

The decision also is seen by tobacco industry analysts as very positive for Carolina Group (CG), the tracking stock of Lorillard Tobacco, as it will free up $921 million in restricted cash, allowing Carolina to pay down debt to its parent Loews at an accelerated rate. Goldman Sachs analyst Judy Hong expects the company will be able to pay out 100% of net income in dividends by 2008 once this requirement is lifted.

Carolina has had the cash on its balance sheet as part of a liquid net worth provision of a bonding agreement Lorillard struck.

As part of the same bonding agreement, Lorillard, Philip Morris USA, and Liggett also paid $710 million to an escrow account. Industry analysts expect the return of this cash could be used for one-time dividends, stock repurchase, debt reduction, business acquisitions, or other business investments.

However, Turley said there are "considerable questions" about what would happen to the money held in escrow as the plaintiffs weigh their next move.

Stanley Rosenblatt, an attorney for the plaintiffs in the Engle case, expects the money should be held in escrow while the group pursues their individual claims.

Jeff Bailey : 7/6/2006 3:36:00 PM

Newmont Mining (NEM) $55.00 -0.18% Link ... "only one" that suggest further upside to the gold commodity.

Jeff Bailey : 7/6/2006 3:34:29 PM

Gold Corp. (GG) $31.22 +0.64% Link ... see 03:30:29

Jeff Bailey : 7/6/2006 3:31:34 PM

Bema Gold (BGO) $5.41 +5.25% Link ... right back to those late-May, early-June relative highs.

Jeff Bailey : 7/6/2006 3:28:01 PM

Swing trade raise bullish stop alert for the StreetTracks Gold (GLD) $62.93 +0.68% ... to $62.85

Jeff Bailey : 7/6/2006 3:26:49 PM

MERRILL TO PAY $29.5M IN ENRON CASE

DJ- Brokerage settles its portion of a case which alleges banks failed to prevent the energy company's collapse. Merrill doesn't admit or deny guilt. Citigroup and Bank of America among the remaining defendants.

Jeff Bailey : 7/6/2006 3:25:53 PM

LOPEZ OBRADOR DEMANDS RECOUNT

DJ- Mexican presidential candidate wants a ballot-by-ballot recount of votes from Sunday's election as official tally, with 99.6% complete, shows Felipe Calderon ahead by about 200,000 votes.

Jeff Bailey : 7/6/2006 3:25:24 PM

SIRIUS GROWTH TOPS VIEWS; XM SLOWS

DJ- XM Satellite Radio reports slower growth in new subscribers for 2Q. Sirius Satellite, meanwhile, adds far more subscribers than XM, exceeding analysts' expectations. Sirius shares rise 2%; XM shares fall 1.65%.

Jeff Bailey : 7/6/2006 3:24:18 PM

EU ANTITRUST COMMISSIONER TO FINE MICROSOFT

DJ- European Commission's antitrust commissioner says she will levy more fines against Microsoft as the software giant fails to comply with its antitrust orders, and announces she will launch in-depth probe into European telecom market.

Jeff Bailey : 7/6/2006 3:23:29 PM

AIRLINE PROVISION SNAGS PENSION BILL

DJ- Proposal to give carrier more time to pay off underfunded pension plans hits a speed bump after the White House warns the idea could allow airline pension plans to slip deeper in debt.

Jeff Bailey : 7/6/2006 3:22:43 PM

SMITH BARNEY LOWERING INTEREST RATE

DJ- Citigroup brokerage unit plans to lower the interest rate it pays to clients in its bank sweep accounts who keep less than $1 million at Smith Barney. Move follows other firms who discourage activity from the less affluent.

Jeff Bailey : 7/6/2006 3:22:02 PM

EBAY'S PAYPAL PRESIDENT TO STEP DOWN

DJ- EBay says president of PayPal, Jeff Jordan, will step down, in move that is sparking a round of upper management changes unnerving to some on Wall Street. Jordan will be replaced by Skype President Rajiv Dutta. Shares fall 4.8% to 52-week low.

Jeff Bailey : 7/6/2006 3:21:08 PM

BUSH WANTS ONE MESSAGE FOR NORTH KOREA

DJ- President reiterates his commitment to use diplomacy to resolve crisis over North Korea's missile tests and says it is important that international community speak with one voice. North Korea vows to continue launching missiles.

Jeff Bailey : 7/6/2006 3:20:04 PM

COURT AGREES TO TOSS $145B TOBACCO AWARD

DJ- In major victory for nation's largest tobacco companies, Florida Supreme Court unanimously upholds lower court's decision to toss out a $145 billion punitive damage award against the industry in the Engle case. Philip Morris says it disagrees with court's conclusion that certain issues decided by the trial jury may be considered as resolved for any potential future cases filed by former class members.

Jeff Bailey : 7/6/2006 3:15:51 PM

Sell on/near close alert ... Let's book the profit on the StreetTracks Gold (GLD) $62.93 +0.68% by today's 04:00 PM EDT close.

So little to gain to target with tomorrow morning's economic data.

Jeff Bailey : 7/6/2006 3:02:52 PM

03:00 Market Watch found at this Link

Jeff Bailey : 7/6/2006 2:46:50 PM

GSTI Software Index (GSO.X) 152.20 -1.22% ... Testing its trying to round out 21-day SMA Link

Jeff Bailey : 7/6/2006 2:44:11 PM

Speaking of filling gaps ... GLD did fill a down gap from 06/05 low $63.12 to 06/07 intra-day high of $62.85 today. Link

Jeff Bailey : 7/6/2006 2:38:39 PM

El Paso Interested In Possible New Acquisitions - CEO

EP $15.05 -0.72% ...

Jeff Bailey : 7/6/2006 2:37:20 PM

DJ- Iran Negotiator: "Serious" About Continuing Nuclear Talks

Jeff Bailey : 7/6/2006 2:36:00 PM

Harrah's Entertainment (HET) $69.65 -0.15% ...

Jeff Bailey : 7/6/2006 2:35:20 PM

New Jersey Official Confirming Deal Reached To End Budget Standoff

Jeff Bailey : 7/6/2006 2:34:20 PM

QQQQ $38.06 -0.23% ... looks like it wants to give that 06/28-06/29 gap a run for the money.

Jeff Bailey : 7/6/2006 2:16:39 PM

Hmmmm ... yesterday Mexican Stock fell when it looked as if Calderon was loser. U.S. stocks seemed to bid.

See Jane's 01:18:44

Jeff Bailey : 7/6/2006 2:14:42 PM

Altria (MO) $76.93 +4.93% ... checked "Max Pains" for July, August and September. All were $70.00.

Short interest rose to 17.18 million (June 15) from May's 12.59 million.

Jane Fox : 7/6/2006 2:08:17 PM

* NYSE volume 877.84m
* NYSE has 2,000 advancers
* NYSE has 1,199 decliners
* NYSE has 135 issues unchanged
* NYSE has 32 issues setting 52-week highs
* NYSE has 28 issues setting 52-week lows
* NASDAQ volume 1.024b
* NASDAQ has 1,615 gainers
* NASDAQ has 1,276 losers
* NASDAQ has 156 issues unchanged
* NASDAQ has 40 issues setting 52-week highs
* NASDAQ has 36 issues setting 52-week lows

Jeff Bailey : 7/6/2006 2:07:58 PM

Bullish swing trade raise stop alert ... for the StreetTracks Gold (GLD) $63.02 +0.83% .... to $62.50.

Try to reduce risk in trade so close to target.

Had in my mind "$64.50" when actual target is $63.50. Probably was thinking $645.00 from futures.

Jeff Bailey : 7/6/2006 1:49:12 PM

StreetTracks Gold (GLD) $63.12 +0.99% ... and $0.40 box (similiar to conventional $4.00 box from futures) at this Link

Stop currently at $61.35, Targeting $63.50.

Jeff Bailey : 7/6/2006 1:37:15 PM

August Gold Futures (gc06q) PnF quick update for my GLD trade at this Link

Jane Fox : 7/6/2006 1:18:44 PM

Mexican shares rally as Calderon retakes lead in vote tally

Jeff Bailey : 7/6/2006 1:03:31 PM

01:00 Market Watch found at this Link

Jane Fox : 7/6/2006 1:03:13 PM

NYSE MOST ACTIVE STOCKS: MO Q AD NT LU

Jane Fox : 7/6/2006 1:03:03 PM

NASDAQ MOST ACTIVE STOCKS: QQQQ OPWV SIRI MSFT SUNW

Jane Fox : 7/6/2006 1:02:57 PM

IPO Report:McCaw's Clearwire scraps IPO after $900 mln round

Jeff Bailey : 7/6/2006 12:58:12 PM

Current OPEN MM Profiles that I've made at this Link

Jeff Bailey : 7/6/2006 12:48:45 PM

Swing trade long entry alert for MO $77.10

Jeff Bailey : 7/6/2006 12:21:22 PM

YM 11,284 ... off session high of 11,323 and right back to the MO news al_rt.

Jeff Bailey : 7/6/2006 12:19:50 PM

All about "MO" last hour.

Jeff Bailey : 7/6/2006 12:18:22 PM

Dow Industrials (INDU) 11,221.47 +0.62% ...

Jeff Bailey : 7/6/2006 12:17:45 PM

S&P 100 (OEX.X) 584.29 +0.42% ...

Jeff Bailey : 7/6/2006 12:16:20 PM

NASDAQ-100 (NDX.X) 1,553.43 -0.03% .... slips red.

Jeff Bailey : 7/6/2006 12:13:30 PM

Altria (MO) $78.08 +6.47% ... looking for 3/4 position based on 100 shares at $77.10.

For No Risk Management Accounts (1,000 share assumption) this would be 750 shares. Will still used stop/targets.

Jeff Bailey : 7/6/2006 11:51:50 AM

Bullish swing trade long setup alert for just over 2/3 position (100 shares) for the risk managed MM Profiles for shares of Altria (MO) $78.55 +7.09% Link ....

GO LONG on a pullback trade at $77.10 stop $72.00, target $90.00.

Jeff Bailey : 7/6/2006 11:13:43 AM

Shutting down ...

Jeff Bailey : 7/6/2006 11:06:24 AM

Altria (MO) is Dow component. May have bullish INDU/DIA/YM impications.

Jeff Bailey : 7/6/2006 11:05:55 AM

I'm locked up ....

Jeff Bailey : 7/6/2006 11:05:06 AM

Florida Supreme Court Rules In Favor of Tobacco (alert)

Jeff Bailey : 7/6/2006 11:02:38 AM

11:00 Market Watch found at this Link

Jeff Bailey : 7/6/2006 11:00:57 AM

ICE $58.70 +1.22% ... finds a bid

Jeff Bailey : 7/6/2006 10:50:25 AM

EIA Weekly Gross Inputs, Refinery Op. Capacity and Pct. Util. of Ref. Op. Capacity Table found at this Link

Jeff Bailey : 7/6/2006 10:43:57 AM

EIA Activity (alert) ... Inputs fell by 115,000 bbl/day, Operable Capacity up 3,000 bbl/day has Pct Utilization slipping to 93.11%

Jeff Bailey : 7/6/2006 10:40:00 AM

EIA Weekly Crude Oil, Gasoline and Distillate Inventory Table found at this Link

Jeff Bailey : 7/6/2006 10:31:38 AM

Distillates up 1.0 million bbl

Jeff Bailey : 7/6/2006 10:31:06 AM

Gasoline up 700,000 bbl

Jeff Bailey : 7/6/2006 10:30:49 AM

Crude Oil Inventory down 2.4 million barrels

Jeff Bailey : 7/6/2006 10:28:50 AM

International Indexes Link ... Bullish action in China!

Jeff Bailey : 7/6/2006 10:27:15 AM

EIA Crude Inventory due out in about 4-5 minutes.

Nat. Gas due out tomorrow.

Jeff Bailey : 7/6/2006 10:25:36 AM

Current OPEN MM Profiles all fractional change, as in +/- pennies per share.

Jeff Bailey : 7/6/2006 10:23:43 AM

Openwave Systems (OPWV) $7.97 -30.51% Link ... Atop this morning's most active. Now there was, might still be, a good look'n short/put.

I'd have to think bears take some type of profit off the table today though.

Jane Fox : 7/6/2006 10:15:58 AM

July 6 (Bloomberg) -- Retailers reported slower sales gains as a jump in gasoline prices curbed spending and flooding discouraged shoppers on the U.S. East Coast last month.

Wal-Mart Stores Inc., the world's largest retailer, said June sales at stores open at least a year rose 1.2 percent, its smallest gain in more than a year. Sales at Nordstrom Inc., Limited Brands Inc. and Federated Department Stores Inc. missed analysts' estimates.

June sales rose 2.6 percent, slower than this year's average of 3.8 percent, the International Council of Shopping Centers said, based on 54 chains. Customers of Wal-Mart and other discounters curtailed spending as gasoline prices jumped 32 percent from a year earlier, said ING Investments LLC analyst Arun Daniel.

"There's no question it's negative," said Sarah Henry, an analyst with Berwyn, Pennsylvania-based Sovereign Asset Management, which has owned Wal-Mart shares among its $2 billion under management. "It tends to be clearance month, and we had bad weather and increases in gas prices and that kind of put a damper on things."

Jane Fox : 7/6/2006 10:15:03 AM

July 6 (Bloomberg) -- Service industries in the U.S. expanded at a slower pace last month as the housing market cooled, a private survey showed.

The Institute for Supply Management's index of non- manufacturing businesses including banks, builders and retailers fell to 57.0 from 60.1 in May, the Tempe, Arizona-based institute said today. Readings above 50 indicate growth in the index, which includes industries that account for almost 90 percent of the economy.

The survey provides evidence to back the Federal Reserve's view that higher interest rates and energy prices are cooling the economy. A separate report today showed jobless claims fell, pointing to strength in the labor market that may keep the economy from slumping

Jane Fox : 7/6/2006 10:13:53 AM

July 6 (Bloomberg) -- U.S. Treasuries rose after a private survey showed the pace of service industry expansion last month slowed more than economists forecast.

The Institute for Supply Management said its index of non- manufacturing businesses, including banks, builders, real-estate agents and retailers, was 57 in June, from 60.1 the month before. Readings greater than 50 signal expansion. The median estimate of 66 economists surveyed by Bloomberg was for a reading of 59.

The yield on the benchmark 10-year note fell 2 basis points, or 0.02 percentage point, to 5.20 percent at 10:03 a.m. in New York, according to bond broker Cantor Fitzgerald LP. The price of the 5 1/8 percent note due in May 2016 rose more than 1/8, or $1.25 per $1,000 face amount, to 99 7/16. Yields move inversely to prices.

Ten-year notes yesterday fell the most in three weeks after Automatic Data Processing Inc. estimated U.S. companies added 368,000 jobs in June. The Labor Department tomorrow may say hiring in June accelerated from a seven-month low.

Jeff Bailey : 7/6/2006 10:12:30 AM

NAR Says Pending Home Sales Climbed Modestly In May

DJ- A gauge of future home sales turned upward, indicating the market is stabilizing, an industry group said Thursday.

The National Association of Realtors' index for pending sales of existing homes increased at a seasonally adjusted annual rate of 1.3% to 113.4 in May from April's 111.9.

The index was 10.1% below the level of May 2005.

"The slight change in pending home sales indicates the market is beginning to level out," said David Lereah, NAR's chief economist. "This is consistent with our forecast, which is showing a soft landing for the housing sector."

By region, the index showed a 0.6% drop in the Northeast in May from April - and a 7.8% decline since May 2005.

In the West, the index increased 9.9% in May but was 12.9% below the prior year. The South fell 1.7% in May and was 7.3% below May 2005. The Midwest climbed 0.6% in May but was 13.6% down from a year earlier.

The NAR's pending home sales index was designed to try measuring the direction of the housing market in the future. It is based on pending sales of existing homes, including single-family homes and condominiums. A home sale is pending when the contract has been signed but the transaction has not closed. Pending sales typically close within one or two months of signing.

"We are entering the second phase of the transition period from the housing boom, in which sellers are becoming more realistic about their expectations - sales are stabilizing and annual home price appreciation is returning to historic norms," Lereah said.

Last week, the NAR reported sales of existing homes in the U.S. fell to a 6.67 million annual rate during May, a 1.2% decline from April's 6.75 million as mortgage rates stepped up. Year-over-year, sales were down 6.6%. The average 30-year mortgage rate was 6.60% in May, compared to 6.51% in March and 5.72% in May 2005. The inventory of homes on the market increased to 6.5 months in May from 6.1 months in April. The median home price climbed to $230,000.

Jeff Bailey : 7/6/2006 10:10:23 AM

Google (GOOG) $423.90 +0.57% Link .... X gets another square at $424.

Jeff Bailey : 7/6/2006 10:08:31 AM

eBay (EBAY) $27.34 -3.56% Link ... continues to get "bid lower" and new 52-week low. Approaching bearish vertical count of $26.00.

Jeff Bailey : 7/6/2006 10:04:41 AM

10:00 Market Watch found at this Link

Jane Fox : 7/6/2006 10:02:53 AM

JUNE ISM SERVICES PRICES 73.9% VS 77.5% IN MAY

Jane Fox : 7/6/2006 10:02:42 AM

JUNE ISM SERVICES EMPLOYMENT 52.0% VS 58.0% IN MAY

Jane Fox : 7/6/2006 10:01:16 AM

TICK +800

Jane Fox : 7/6/2006 10:01:10 AM

JUNE ISM SERVICES BELOW CONSENSUS 59.6%

JUNE ISM SERVICES 57.0% VS 60.1% IN MAY

Jane Fox : 7/6/2006 10:00:52 AM

MAY PENDING HOME SALES INDEX UP 1.3%

Jane Fox : 7/6/2006 10:00:32 AM

PENDING HOME SALES INDEX DOWN 10.1% Y-O-Y

Jane Fox : 7/6/2006 9:56:38 AM

Remember our 10:00 reports

10a.m. May Pending Home Sales. Previous: -3.7%.

10a.m. July Non-Manufacturing ISM Index. Consensus: 59.8. Previous: 60.1.

Jeff Bailey : 7/6/2006 9:54:54 AM

Big Investors Boost Program Trades, Cutting Costs

DJ - Mutual-fund companies and other big investors are increasing their use of program trading - buying and selling a basket of securities in a single transaction - to drive down costs.

Such trading is also lowering research costs for buy-side portfolio managers and traders, according to a study by Greenwich Associates, a Greenwich, Conn., research firm.

The average U.S. institutional investor increased its portfolio trading volume by 25% from 2005 to 2006, following a 35% rise during the previous year. Overall, the 122 U.S. institutions that participated in the study did a total of $1.4 trillion in program trades for the year. Greenwich estimated the total market-wide volume of U.S. portfolio trading at approximately $2 trillion within a universe of 180 buy-side trading desks.

Cost savings generated for the big investors by the use of program trades are considerable. The typical institution interviewed for the study executed about 46% of its total equity trading volume - more than $11.5 billion in business on average - as program trades during the 12-month period ending February 2006. On average, this business was done at a commission rate of 1.9 cents a share, about 2 cents less than the typical commission rate on a standard New York Stock Exchange agency trade.

"The results speak for themselves," Greenwich Associates consultant John Feng said in the study. "Even though market-wide equity trading volumes were robust between 2005 and 2006, the pool of institutional commissions paid to U.S. equity brokers was basically flat."

Buy-side portfolio managers and traders are taking advantage of an additional benefit of portfolio trading: reduced research costs. According to the study, more than 80% of U.S. institutions directed agency portfolio trades to brokers as compensation for fundamental equity research last year - up from 60% in 2005, according to Greenwich.

Among institutions using program trades as research compensation, trading volumes designated for this purpose rose to more than 70% of their total. "Doing the math, these numbers suggest that about 40% to 45% of the entire commission flow generated by program trades is being directed to brokers as payment for research and other services," Greenwich consultant Jay Bennett said in the study.

The trend raises the question of how paying for research with program trades squares with the growing practice of unbundling, in which funds pay separately for trading and research. Research fees used to be included with stock-trading commissions, paid by shareholders in mutual funds at companies such as Fidelity Investments. But some institutional investors are striking deals to separate out the fees and pay for research with their own cash, reducing costs for their funds' shareholders.

Unbundling has been reshaping the way Wall Street commissions are paid and is seriously eroding the stock-research business.

"If the 1.9-cent-per-share average commission rate on portfolio trades does indeed represent a near execution-only cost, then brokers are getting squeezed hard by the practice of using this business to pay for research," Greenwich consultant John Colon said. "Indeed, the sell side is beginning to complain that institutions are not differentiating between four-cent agency business and two-cent portfolio trading business when accounting for their payment of brokerage equity research commitments."

Jane Fox : 7/6/2006 9:42:04 AM

Here is a stock I thought would be a good long candidate but unfortunately I did not trade it. Link

Jane Fox : 7/6/2006 9:23:02 AM

Dateline WSJ In what would mark a dramatic shift in strategy, Time Warner Inc.'s AOL unit is considering offering its entire menu of services, including email, free of charge to anyone with a high-speed Internet connection, people familiar with the matter said.

Under the proposal, which AOL Chief Executive Jonathan Miller presented to top Time Warner executives in New York last week, AOL would stop charging a subscription fee for users who already have a high-speed Internet service or dial-up service from another provider. Subscribers who have traditional "dial-up" Internet access through AOL would still have to pay their monthly fee of as much as $25.90. Nearly one third of AOL's customer base of 18.6 million already has high-speed access -- but the company expects that 8 million of its existing dial-up customers would cancel their subscription to take advantage of the new offer.

If AOL goes ahead with the plan, it could be giving up as much as $2 billion in subscription revenue in a gamble aimed at boosting the Internet service's advertising revenue. The lost revenue would be partly offset by lower expenses, however, as implementation of the plan would likely lead to thousands of job cuts in marketing and customer service.

Jane Fox : 7/6/2006 8:40:16 AM

EUROPEAN CENTRAL BANK HOLDS KEY RATE AT 2.75%

Jane Fox : 7/6/2006 8:39:33 AM

LAYOFF ANNOUNCEMENTS UP 25% TO 67,176: CHALLENGER

Jane Fox : 7/6/2006 8:34:46 AM

* CONTINUING JOBLESS CLAIMS UP 52,000 TO 2.46 MLN
* 4-WEEK AVG. JOBLESS CLAIMS UP 2,500 TO 308,500
* NO IMPACT FROM SEASONAL AUTO CLOSINGS IN JOBLESS CLAIMS DATA
* WEEKLY JOBLESS CLAIMS DOWN 2,000 TO 313,000

Jane Fox : 7/6/2006 8:33:42 AM

Good Morning all.

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