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A weekend report is on a wait and see basis given IKE coming to call. For now we offer these thoughts on Friday and what to look for Monday. A low volume day with little relative change in the indices. NASD +3.05, 0.14%; DJ30 -11.72, -0.10%; SP500 +2.65, 0.21%; SP600+0.17%; SP600 +0.17%. A/D +1.2:1 NYSE, -1.2:1 NASD. Volume was significantly lower. Thus even though we saw some positive action in some recent leaders such as homebuilders, medical/healthcare, the lack of change in the indices and the blase trade kept us from moving into any new positions. Retail struggled after the retail sales figures. A big issue were the financials once more even though there were some good moves from leaders such as WFC. Preliminary Michigan sentiment showed a sharp jump (73.1 vs 64 exp, 63.0 prior) & helped the indices recovery from early downside. The indices stalled twice, however, at near resistance, thus not changing their positions heading into the weekend other than avoiding a full test of the July lows on NYSE, NASD. Oil rose modestly to 101.18, +0.31. Gold rose as well (764.50, +19) as commodities rebounded a bit more but it was tough to move in given the light volume and the failure to take out near resistance after bumping up against it. Kind of a retrenching to end the week and we saw no reason to get in too much of a hurry to move into new positions particularly with the rumor going around that something was up this weekend with either a Fed rate cut (bad) or another bailout (good short term, bad longer term). Hey, since everyone is in the giveaway move, why not a '2-fer'? Bond yields flat (2.2% 2 yr, 3.72% 10 yr). We are in a whirlwind of activity tonight getting everything ready for Ike so we are just going to have to see how it goes with reports this weekend. As it stands we are still looking at the likes of CELG, HCBK, TOL, JAS for new buys upside and a rebound in retailers to give us an opportunity to buy some more (ARO, JNY, URBN). Looking at SP500, some new SDS may be in order to the downside. While the large caps look top heavy just a bit, SP600 small caps tested on the week, held nicely, and is in great position to move higher. Wish us luck and good wishes tonight and tomorrow as we take on IKE. Will definitely try to get the continuing play tables out tonight.
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