Beat The Dart -"Picking Stocks the Old-fashioned Way"

Larger than expected rise in wholesale inflation as reported by Labor Department. Producer price index rose 0.9% in December. Core PPI which excludes food and energy prices rose 0.2%. Numbers suggests that Wall Street would consider inflation to work stocks lower. Follow action of S&P 5000 index to track direction. .... 7:30 am ...The resiliency of the S&P 500 index to advance despite contracting volume and lack of conviction in most sectors indicates that the underlying strength cannot be denied. Closing at 1,431.90

1.17, the index's range was 1428-1433.93, establishing an interim high. At this point, one cannot deny the tape. For now, remain aggressive, but prudent - a precarious stance yet doable until a better idea unfolds. ... Consumer Price Index (CPI) due on the 18th will be our first indication that inflation has moderated. CPI is a measure of the price level of a fixed market basket of goods and services purchased by consumers. As the most widely cited inflation indicator, it is used to calculate cost of living adjustments for government programs. Look for a controllable number that should not worry the market. Also on the 18th, the Leading Indicators Report should be issued, representing a compendium of economic indicators: new orders, jobless claims, money supply, average workweek, building permits and stock prices. On average the report issued by the Commerce Department is anticipated to be

0.2%, a slight improvement from the prior period. The Philadelphia Fed report due on the same date should show to major surprises. On the 19th the Michigan Sentiment index for January should show 92.4 vs 91.7. Any deviation below 92.4 would create a selling wave in equities. In conclusion: no significant inflation,, the Fed to leave interest rate at 5.25% and the U.S. dollar to moderate on the upside against the other major currencies.

January 16, 2007, 7:30 am. World stock markets closed higher on Monday, with European indexes up on merger action, while U.S. markets were closed for Martin Luther King Jr. Day holiday. In the morning, most Asian markets are up: Hong Kong's benchmark index remains above 20,0000; Hang Send Index up 2.3% to close at 20,068.56, while Tokyo's Nikkei 225 index advanced 0.93$ to close at 17,209.92. All in all, the equity markets are still considered "cheap" as cash on the sidelines continues to be at record levels. The unprecedented liquidity can be directly traced to the China Factor with its balance of payment surplus over $1.2 trillion and a moderating U.S. dollar. Rising inflation can be contained as oil trades around $53 a barrel, 13% decline since January 1st. .... S&P 500 index closed at 1,430.73, with Friday's range 1422.58-1431.23. Remain positive while the index holds above 1,410.00, as the 52 weeks high is 1,431.81. How the index reacts above the high should give us a better idea for the broader equity market.

.. Purpose of the arrows: - projecting that DJIA, Nasdaq and S&P barometers will close higher at the end of the day. - projected consolidating barometers with limited directional action. - projecting all three barometers declining for the days. .... Our Message Board and "Contact Us" elements are available at no cost to keep you up-to-date with timely information. Our Fantasy Hedge Fund gives you a concise overview of how investment ideas are executed. All transactions are posted on the Message Board