Market Update

Market Close, June 28, 2006

Nothing has changed in the markets. If you look at a chart over the last two weeks, it looks like a nearly flat line. Up 50 today. Down 100 yesterday. Up. Down. Net result?

Waiting for the Fed. The sad part of that is that, a 1/4 point rate rise is a sure thing. If the language in the FOMC's release has not changed, I'm fearful that the market will take it negatively.

So tomorrow looms as a very important day, as well as Friday. Remember this quarter end, so the mutual funds will be doing their window dressing. Then, we go into a half day session Monday, and the 4th on Tuesday. Traders will want to go out for the long week-end flat, so we could see some early fireworks. Stay tuned.

Cash, short term bonds, utilities continue to be our suggestion.

Good Trading,

Joe