4/7/08 Market Assessment and Trading Plan

The volatility continues, but the S&P 100, S&P 500, NYSE, NDX and the DJIA Bullish Percent charts are in Bull Alert status - we are heading higher folks. The market is a little overbought here and we will be timing our buys, but the next dip will most likely be less scary and steep than the ones we have become used to over the past six months.

The NASDAQ BP chart just entered into the Bull Confirmed status, and while the Technology and Healthcare charts are not good right now, expect that to turn shortly.

The following industries look ripe for the picking:

Transports - BP trend is Bull Confirmed with upside left. However, with BNI (new target of $117) and UNP (new target $155) in the portfolio already, am reluctant to add to the exposure here.

Consumer Staples - Now in bull confirmed status and breaking out - looking at the following candidates:
WMT, long with a target of $62
KO, long with a target of $90
CVS, long with a target of $64

Industrials- looking at the following candidates:
GE, long with a target of $51
UPS, long with a target of $88
FDX, long with a target of $130
MMM, long with a target of $92
CAT, long with a target of $90
DE, long with a target of $108
LMT, long with a target of $112 (very tight downside)
RTN, long with a target of $88
NSC, long with a target of $85

Materials- looking at the following candidates:
MON, long with a target of $154
DD, long with a target of $63
FCX, long with a target of $139 (need a pullback)
WY, long with a target of $76
PPG, long with a target of $80
ATI, long with a target of $97
ROH, long with a target of $70 (needs to hit $58)

Consumer Discretionary - looking at the following candidates:
LOW, long with a target of $39
NKE, long with a target of $83
YUM, long with a target of $59
BBY, long with a target of $54
TJX, long with a target of $51
FO, long with a target of $95 (needs a pull back)
JCG, long with a target of $59
HOT, long with a target of $69
GPS, long with a target of $32

Also looking at adding Visa (V) to the mix with a small weight. Although the trading history is virtually non-existent, this one has the potential to really move.

Lastly, new target for the MTG short is $2.