6/6/08

The Morning Call

6/6/08

Economics

A simple solution to energy problem:

http://www.washingtonpost.com/wp-dyn/content/article/2008/06/05/AR2008060503434.html?sub=AR

Politics

Domestic

More on ‘your tax dollars at work’:

http://hughhewitt.townhall.com/blog/g/f96c8f3c-196f-485e-96c2-572a5a785949

Obama on Iran’s Revolutionary Guards:

http://hughhewitt.townhall.com/blog/g/a79470ac-784f-4e51-b24f-fa2fc0e62545

Obama on Tony Rezko:

http://www.powerlineblog.com/archives2/2008/06/020683.php

International War Against Radical Islam

The Market

Technical

Yesterday gave us a short term answer as to the location of the bottom of the current trading range: DJIA-12263 (its April 2008 low); S&P-1370 (its August 2007 low). I am somewhat reluctant to give too much to weight to these boundaries simply because they define a fairly narrow trading range (DJIA: 13113-12263; S&P 1439-1370). If I am correct, then two things can happen: (1) the Averages break through their resistance levels and a new up trend is established, or (2) they penetrate these newly established support levels. I am partial to (2), but as always I will listen to the tape to give me a read on investor sentiment.

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Market breadth is good:

http://bespokeinvest.typepad.com/bespoke/2008/06/percentage-of-s.html

And the short interest is at an all time high:

http://bespokeinvest.typepad.com/bespoke/2008/06/nyse-short-inte.html

A chart on oil:

http://bespokeinvest.typepad.com/bespoke/2008/06/oil-support-l-1.html

Fundamental

Subscriber Alert

Visit www.strategic-stock-investments.com to see what we are buying/selling today

CNBC Million Dollar Portfolio Challenge

Portfolio 1 (85.1%): Sold: none

Bought: none

Positions: Automatic Data Products, 3M, T Rowe Price,

General Dynamics

Portfolio 2 (87.7%): Sold: none

Bought: none

Positions: Franklin Resources, Graco, Schwab,

Luxottica

Portfolio 3 (91.8%): Sold: none

Bought: none

Positions: Illinois Tool Works, Ross Stores. Schwab, Federated Investors

Portfolio 4 (80.1%): Sold: UPS

Bought: Wells Fargo

Positions: Home Depot, Blackrock, Peabody Energy,

Wells Fargo

News on Stocks in Our Portfolios

T. Rowe Price (Dividend Growth Portfolio) announced a 15 million share stock buy back.

http://finance.yahoo.com/q?s=TROW

Brown Forman (Dividend Growth Portfolio) reported its fourth fiscal quarter earnings per share of $.81 versus expectations of $.72 and $.54 reported in the comparable 2006 fiscal quarter.

http://finance.yahoo.com/q?s=BFA

More Cash in Investors’ Hands