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Aug 07, 2006 - Issue #018

Where's the Beef?

This in the face of all that talk about how strong the economy is?

Well, to be fair, we don't trade the "economy", we trade stocks. Right?

Which begs the question: What's the line of least resistance?

Individual Dow components for the week: 17 up (-11), 13 down (+11).

Trends (weekly): This is the subjective part.

Rising 11 (-1):

GM, JNJ, JPM, KO, MO, MRK, PFE, PG, T, VZ, XOM.

Consolidating 7 (+2):

AA, BA, C, CAT, DIS, HON, MCD.

Declining 12 (-1):

AIG, AXP, DD, GE, HD, HPQ, IBM, INTC, MMM, MSFT, UTX, WMT.

I still think INTC looks worth accumulating.

Always keep in mind, there is no such thing as a "stock market" but a "market of stocks".

Below, some charts from other indexes that may be of interest.

Dow Transportations: Buy JBLU. Sell CAL, AMR, CHRW, CSX.

S&P 500: Sell NUE.

S&P 100: Buy F, RSH. Sell ATI.

S&P 400: Buy DLX, PIR, AFFX, WIND, URBN, CHS. Sell ATML, CTV, STLD, WFR, FTI.

S&P 600: Buy SPC, TUES. Sell EAGL, GPI.

As always, where ever possible, try to hedge risk and maximize potential through the use of derivatives (options, ssf, etc.).