Current Positions

• Heinz (HNZ 51.25) watch closely; support $51
  
• UST, Inc. (UST 53.54) support $53


• Health Care Sector SPDR (XLV 32.73) support at 200 dma of $32.66


• Cal-Maine (CALM 39.20) was support @ $42, then right here: 39-39.25. Stop at $37.75.


• Consumer Staples Sector SPDR (XLP 28.11) support $28


• Covance (CVD 93.80) support $92

Currently 10 equity positions and it seems as though the majority are on a watch list to breakdown rather than breakout.

Summer Rally

I've gotta' continue to buy into this NASDAQ rally if it breaks through 2550, about 4% from here, on good volume then it's for real and the train will leave the station. For now continue to look for good technology and biotech names, watch financials closely, keep stops tight and ride what seems to be a legitimate summer rally.

Positive market moves, with conviction, will take even poor economic news and make it moot. The stock market will always tell you what is happening with the economy before the "experts" do.

Today's Action

NAZ should be finding resistance here in the 2450s. In fact the S&P is doing the same, resistance, here, 1290ish. Interesting to note the NASDAQ is down around 8% for the year versus the S&P, -11%, and the DOW, down 13%.

Consumer prices up at the highest rate since 1991.

CALM looking good, up around 9%. A little late to add more.

Campbell Soup in play? Heinz suspect. CPB breaks above $38.59 I'd be a gamer.

Making Moves

Retailers on fire today.

CALM, shouldn't pay more than $41.16. Can't buy AZO until it successfully tests $140.

Into Covance (CVD) at $97.46, underweight position. Don't pay more than $101.65, stop loss $90.

Some Cohen holdings:

• Incyte (INCY) recent public offering @ $9 and Cohen's involved. Reanaissance here too, over 4% stake.


• Inspire Pharmaceuticals (ISPH) Increased to 5.1% stake.


• Akorn (AKRX) has potential with a move through $8. Increased to 5.6% stake.


• Pilgrims Pride (PPC)


• Sanderson Farms (SAFM)

Market Bullets

The NAZ faired better than the other two indexes for most of the day before closing at 2355 closely playing on the pivotal level mentioned previously.

Looking back at potential resistance in my 7/30 post, apparently 11,700 should have been the number for the DOW, I was a little off with 11,750. I was spot on with the NAZ, 2350, and the S&P, 1290ish.

NAZ Power

With the contnuing strength of the NAZ I've been searching for high tech names and paying particular attention to semis.

• EMC Corporation (EMC 14.79) watch for a move through $18.


• Airvana (AIRV 5.79) is interesting. Renaissance again, though a small stake.

Separately, Covance (CVD 97.26) putting together a nice rally since posting on it. Watch closely maybe a shot at $97. AmerisourceBergen (ABC 42.22) did, indeed test $40, opening at the low of the day, $39.97.

Today's Action

General Mills (GIS 66.19) Another vest @ $66.01; Equal Weight now (50% of full stake).

NAZ looks good if it breaks through 2353. Revisit resistance levels following today's surge across the board, all indexes up over 2.8%.

Healthcare, based on the SPDR (XLV 33.02) is surging to March 2008 levels. Could find pressure right here, at resistance and the 40 dma. Looks good if it moves through $34.

Consumer Cyclicals up huge today, over 4%.

AutoNation performing well, up 20% from purchase but should find resistance here at $11.40ish, the 50 dma. I'd like to see it settle back to $10.75 to lock in another vest. Double top breakout signalled today, P.O. of $16. It was reported 7/31 that Lampert boosted his stake, yet again, to 44%. In review of the purchase day and must make mention of the inverted hammer.

Fed left rates alone; no surprise there.

A Couple of Stocks from Last Week

Covance (CVD 91.52) is setting up nicely and making headlines today. It could do $2B in revs. for 2008, a 25% increase, with good ratios and good sponsorship. Ascending Triple Top Breakout shortly after my 7/24 post and the stock broke to $92.69. All time high (96.81) in January. I like it, looking for an entry.

AmerisourceBergen (ABC 41.82) has come down to trade below $42.40, thus the 200 dma. Perhaps it will now fill the gap to $40.

Searching Non-Cyclicals

Cal-Maine Foods (CALM 39.19) Tough times and expensive food costs have Americans looking for cheap protein. Enter eggs. Funny, I'm bumping into Renaissance Technologies again; they own 2%. Certainly, they've been in for the 6X return since the end of 2006.

Fred Adams Jr., CEO and Chairman, owns 35% of the stock. 2:1 current ratio, great returns on their money and good margins. Ascending Triple Top Breakout on 8/1/08. I'd like it to go to about $48.75. Underweight position at $40.97.