TODAY'S OPEN: DOWN

Day 5: Another Light Volume Advance
PICTURED BELOW: The Nasdaq Composite's volume has receded on each of the past 8 sessions on the tech-heavy index, and lighter totals on the up days shows that stocks have feebly tried to edge higher thus far into the new rally attempt. For over a week, volume has steadily declined on each of the major averages. Monday was the 5th day of the latest rally attempt, and it failed to produce an adequate follow-through day. The market will not have confirmed the newest rally attempt with a proper follow-through day of gains until we see the major averages rise +1.7% or more on heavier volume than prior sessions. Until such a follow-through day occurs, the odds still favor that the market is more likely to continue its downward or "corrective" phase.


Yesterday, the Healthcare ($HMO +2.61%) group was a standout gainer, repairing its 50-day moving average (DMA) line breach of Friday. The Gold & Silver Index ($XAU +1.32%) also was among the day's solid gainers. The tech sector had an upward bias as the Semiconductor ($SOX +0.90%), Software ($GSO +0.81%), Biotechnology ($BTK +0.75%), Networking ($NWX +0.66%), and Internet ($DOT +0.54%) indexes ended unanimously higher. Modest gains from the Broker/Dealer ($XBD +0.33%) and Retail ($RLX +0.48%) indexes helped to add a positive influence on the major averages. Slight losses for the Integrated Oil Index ($XOI -0.35%) and Bank Index ($BKX -0.07%), and a flat close for the Oil Services ($OSX +0.01%) meanwhile created no serious drag on equities.

From 24/7 WallSt.:
Europe Market Report 3/13/2007 France Telecom Up
Media Digest 3/13/2007 Reuters, WSJ, NYTimes, Barron's, FT
Asia Markets 3/13/2007 Sony, Toyota Down

Markets Bounced, But Was the Move For Real? by Gary Kaltbaum

David Fry's Daily Market Outlook in Market Overview
by David Fry on Mar 13th with stocks: EEM, EWA, EWJ, GS, IEF, KBE, KCE, LEH, USO, XHB

Wall Street Breakfast in Seeking Alpha by SA Editors on Mar 13th
What you need to know before the open today.

Upgrades / Downgrades / Initiations from MarketWatch

7 Stocks You Need to Know for Tuesday - Tuesday's list includes: Chico's FAS (CHS), Volt Information (VOLT) and ADC Telecom (ADCT).

Stocks to Watch: Stocks in focus for Tuesday

What now? There are several strategies:
1. You shouldn't be on margin. If you are, pay the money back asap.
2. Go "defensive." Sell those stocks that still have high P/Es. Sell those large stocks that could be hit by a recession -- if we have one. (There is a real chance.)
3. Sell short some stocks that look over-priced based on industry specifics.
4. Don't panic. Don't dump everything and move to a deserted Pacific island. There are an awful lot of hedge funds and mutual funds with money that will pounce on your stocks.
5. Don't jump in because "prices are now cheap." They may get a lot cheaper. There is a real chance of a recession later this year....