My Stock Winners

SanDisk
Despite the pathetically low price,it will have a breaks up at this level. The stock is in a deeply deeply oversold state,only much more so now because many great things have happened since then.

The m-systems merger was completed. 2 top executives, Judy and Eli, noted and confirmed guidance of (for 3 yrs) 25-40%–WHILE THEY KNEW THE DETAILS about the flsh merger that was synergistically on-going but technically completed. They would not have confirmed guidance if they thought for a second that the move would be long-term dilutive. It is, in real terms, barely even short-term dilutive. In no case in the history of this company, has Eli given long-term projections that have turned out to be false. They have in fact always turned out to be conservative.

The 37 PPS has become a meaningless standard of measure at this point - even if just for the fact the two Qs have gone by. And remember when it hit 37? It was there for a blink of an eye, in forties the day of ER, and 50s within days of ER. And yet the shorts, in their euphoria fail to see the lofty reverse peak they are balancing on right now. Typical Mob psychology is what is at work here - classic case of “irrational exuberance.”

At this point, the shorts are thinking that the stock will move “15% either way” at ER. Not a chance. SNDK would have to miss by 15% and project seriously shrinking profits and GM’s to go down at all from here. This stock will relief rally just by virtue of the fact that Judy shows up on time at the CC. And what will happen? She will report great results, give firm carefully laid out guidance, and everyone will say, “Gee, there was nothing wrong after all.” Then the analysts will all raise guidance, but not ratings, and the stock, after the pop, will level off ans settle. Probably in the upper 40s at first but then the fifties. And still none of the shorts will cover, and Guana will be flirting with a sell rating like a old whore who flirts with underage boys. And he just might do it. And you know, I don’t care of he does, since SNDK is going blow WS and all their ridiculous misunderstandings and misstatements to hell this year. It doens’t matter what they say; action is character. Not meaningless words, and worse, lies. Yet, even these bastards will be forced to tack a buy rating on SNDK by the year’s halfway point, after they’ve cost their loyal clients a 50% run at least.

SNDK going much higher in 2007. All you need is more than 1-2 months foresight. This is an easy trade.

Weekly Market Commentary:

Last Friday’s University of Michigan consumer sentiment reading jumped from an expected 92 to 98, its highest level in three years showing that the U.S. economic is still very resilient. This did very little, however, to rally equity markets which finished the week with very little change from last week.

The Dow Jones Industrials (12,556.08, -9.46) and S&P 500 (1,430.50, -0.22) spent the week drifting, while the Nasdaq Composite (2,451.31, -51.51, -0.22%) and Russell 2000 (785.16, -9.10, -0.11%) gave up only a bit more ground than their larger cap brethren.

It only took house Democrats 15 days to enact the first net tax increase since 1993, with the passage of Energy Bill HR6, which didn’t receive much play in the major media. Perhaps the reason stocks, and most notably tech stocks, turned in such a lackluster performance. The good news appears to be that since last July’s low, growth stocks have been outperforming value stocks.

On Monday, the Conference Board reports the December leading economic indicators index forecasted to be up 0.2% following November’s 0.1% reading, and opening arguments will be heard in the Lewis “Scooter” Libby case surrounding his “outing” of Valerie Plame as a CIA operative. On Tuesday, the nation will look forward to President Bush’s annual State of the Union message.

Wednesday, the Energy Department issues its weekly report on crude oil inventories, the last of which showed a big up tick in supplies that sent prices to a 20-month low. Also, the Mortgage Bankers Association reports on its weekly survey of loan origination applications. That’s followed up by Thursday’s December existing home sales report from the National Association of Realtors expected to show continued weakness in that sector.

Earnings season continues, with a host of companies due to report throughout the week. Thus far, according to Zack’s Investment Research, the ratio of firms beating fourth quarter estimates was a decent 2.2 to 1. However, tech watchers are urged to note that consensus estimate revisions for 2007 have thus far been “noticeably weak” with three reductions for every upward revision.

Stay tuned!

Bullish
Sector trading above its…
20-day Moving Average: NO
50-day Moving Average: YES
100-day Moving Average: YES

Sentiment:Pessimism remains strong against the housing sector. Of the 158 analyst ratings offered up on the components of the housing sector, Zacks reports that 42 percent come in at a “buy.” What’s more, options players have loaded up on bearish bets toward the sector.

Outlook: Technically speaking, the index dropped below support at its 20-day moving average, but has reclaimed its ascending 50-day trendline. Furthermore, the index’s recent rally has pushed it back above former round-number resistance at the 30 level.

Bullish

Sector trading above its…
20-day Moving Average: NO
50-day Moving Average: YES
100-day Moving Average: YES

Sentiment:Pessimism continues to permeated the telecom sector’s sentiment backdrop. The composite Schaeffer’s put/call open interest ratio for the sector has risen to a reading of 1.2, as put open interest outnumbers calls open interest among near-term options. This reading is also higher than all but two of those taken during the past 52 weeks.

Outlook:The Telecommunications HOLDRS Trust (TTH – 34.65) appears to be bouncing off support near its rising 100-day moving average. Furthermore, the exchange-traded fund (ETF) continues to enjoy the support of its ascending 10-week and 20-week moving averages.

Major markets across Europe are set to move into positive territory Thursday morning, taking cues from upbeat sentiment in Asia and a rebound in oil prices. Corporate results will guide trading sentiment for the day with little economic news due for the day from Europe. Traders are also likely to digest a slew of economic reports from the US for signals on developments in the world’s largest economy.

European markets fell on Wednesday after stronger than expected US economic data, triggered concern that the U.S. Federal Reserve will delay interest rate. Energy and mining stocks slipped on falling crude oil and copper prices, putting further pressure on the markets. The U.K.’s FTSE 100 index fell 0.18% to 6,204.50, while France’s CAC 40 index slipped 0.53% to 5,561.78. Germany’s DAX index declined 0.23% to 6,701.70.

On Wall Street, markets saw some weakness during trading on Wednesday as troubling inflation data generated some negative sentiment. The NASDAQ underperformed the other major averages by a wide margin, although they all ended the session in negative territory. The Dow Jones Industrial Average closed down 5.44 at 12,577.15, while the NASDAQ closed down 18.36 at 2,479.42 and the S&P 500 closed down 1.28 at 1,430.62.

The weakness in the US markets came after the Labor Department released a report showing that its producer price index rose 09% in December following an unrevised 2.0% increase in November. Economists had been expecting a more modest increase of about 0.5%.

The increase by the index was due in large part to growth in food and energy prices, but the core producer price index still rose 0.2%, above economist estimates of a 0.1%. While the data raised some concerns about the pace of inflation, some traders refrained from drawing any conclusions ahead of the release of the Labor Department’s report on consumer prices on Thursday.

In the after hours trading, PC maker Apple reported first quarter results revealing a 78% surge in profit. The company posted 24% revenue growth, driven by strong holiday sales of Macintosh computers and iPod music players. Apple’s quarterly earnings and revenue breezed past Wall Street as well as its own expectations. However, the company forecast second quarter earnings and revenue below analysts’ current consensus estimates.

In commodities space, crude for February delivery closed up $1.03 at $52.24 a barrel after hitting a low of $50.28 a barrel. Oil prices extended gains in Asian trading on Thursday and lingered above $52 a barrel.

In Asia-Pacific, all markets, except Shanghai, were in positive territory during the day’s session. Tokyo benchmark Nikkei closed up 109.58 points at 17,370.93 as the central bank left its key interest rate unchanged at 0.25% with a split vote of 6-3.

A slew of corporate results hit the wires early Thursday to steer trading action. Swiss drug major Novartis AG reported that fourth quarter net income climbed 23% to $1.66 billion from $1.35 billion last year. Net sales for the quarter rose 16% to $10.05 billion from $8.66 billion a year ago. Looking ahead, Novartis sees group net sales are rising in 2007 at a mid- to high-single-digit rate in local currencies and net sales in the Pharmaceuticals Division at a mid-single-digit rate for the year. Novartis also announced European Commission’s approval for Exforge as a new and highly effective single-pill treatment for patients with high blood pressure.

Elsewhere, German pharmaceutical giant Merck KGaA posted an 18% rise in fourth quarter profit. Quarterly sales rose 9% to EUR 1.63 billion. Full year revenues from Liquid Crystals were up 21%, while Ethicals sales increase 11% led by oncology drug Erbitux.

French cognac and spirits major Remy Cointreau revealed organic growth of 5.6% for the Group’s own brands and 2.2% in overall organic growth for the nine months to December. On Wednesday, the stock gained on rumors that drinks and spirits giant Diageo plc’s distribution joint venture with Moet is on the verge on termination. The development, if true, is expected to result in Diageo bidding for Remy Cointreau.

Still in France, train maker Alstom posted revenue growth of 15% for the third quarter. The company expects annual sales to grow by 10% in fiscal year 2006-07 from the previous year

British retailer Kesa Electricals reported that total Group revenue increased 8.1% in local currency and 6.4% on like-for-like basis during the Christmas trading period. Sales were helped by the strong demand for new technologies, particularly flat screen televisions and multi media, and the continued return to positive growth for white goods.

Belgian supermarkets chain Delhaize Group posted fourth quarter same store sales growth of 2.2% in the U.S. and 2.7% in Belgium. The company reported fourth quarter sales growth of 4.6%.

A report in Le Figaro said European insurance major Allianz SE is buying the 42% stake in Assurances Generales de France SA, which it doesn’t already own, for about EUR10 billion euros or US$13 billion. The report did not mention any sources.

In the UK, the Board of London Stock Exchange Group plc, on Thursday issued its second shareholder circular in response to the offer posted by Nasdaq on 12 December 2006. The LSE urged shareholders to reject the Nasdaq’s offer which it deemed “wholly inadequate”.

The major economic reports due on Thursday are November Retail sales data for November and ZEW survey for Switzerland. Fruther, the ECB is slated to release its Monthly Report.

In the US, economic data is likely to remain in focus on Thursday, with the Labor Department due to release its report on consumer prices in the month of December. Economists expect prices to increase by 0.4 percent, while core prices are expected to edge up 0.2 percent. Traders will also be presented with data on housing starts, weekly jobless claims, leading economic indicators, and business activity in the mid-Atlantic region.

Additionally, trading may also be impacted by traders’ reaction to stellar quarterly results from Apple. Merrill Lynch, Harley-Davidson, Bank of New York and UnitedHealth are among the companies that will release their results before the start of trading on Thursday, while IBM is among those that will report after the close.

Stock:
HDFC Bank Ltd. (Symbol: HDB)

Entry Date:
16/January/2007

Entry Price:
Long above $78.20

Stop Loss Price:
Close position below $75.10
HDFC Bank Limited, a private sector bank, provides financial services to corporations, and middle and upper-income individuals in India. It operates in three divisions: Retail Banking, Wholesale Banking, and Treasury Operations. The Retail Banking division provides various deposit products, loans, credit cards, debit cards, third party mutual funds and insurance, investment advisory services, and depositary services. The Wholesale Banking division offers loans, deposit products, documentary credits, guarantees, bullion trading, foreign exchange, and derivative products, as well as cash management services, clearing and settlement services for stock exchanges, tax and other collections for the government, custody services for mutual funds, and correspondent banking services. The Treasury Operations division manages debt securities, money market operations, foreign exchange, and derivative products. In addition, it provides telephone, Internet, and mobile banking services. As of December 22, 2006, the bank operated 569 branches. The company was incorporated in 1994 and is headquartered in Mumbai, India.

Stocks bounced back. It was a solid week on the Street for equities last week, as the S&P 500 Index (SPX) jumped 1.6 percent, ending just shy of a new multi-year high. What’s more, the Nasdaq Composite (COMP) soared 2.8 percent, closing above the 2,500 level for the first time since February 2001. The tech sector remains a hotbed of strength as we continue to see rotation out of oil-related securities and into tech stocks. Speaking of oil, crude remained on the downward slope, as the February futures contract shed six percent for the week and is down approximately 13 percent since the start of 2007.

Looking ahead to this week, we find the market poised for what could be a very good week for stocks. One reason for broad-market strength is the simple fact that we are once again approaching options expiration. During all of 2006, the Standard & Poor’s Depositary Receipts (SPY: sentiment, chart, options) finished only three expiration weeks in negative territory, while the average return during the week comes in at a gain of 0.62 percent. Below I have list the weekly gains for the SPY during expiration week.

“I think one potential reason for the upside bias in expiration weeks is the unwinding of heavy out-of-the-money puts that accelerates during that week. As these out-of-the-money puts are bought back to capture what little time value is left, those who took the other half of the trade and sold the puts are able to buy back the SPY shares they sold as a hedge against the short put position. This unwinding action in turn helps to add buying pressure to the SPY during this week.”

Furthermore, options players are adding to this argument, as traders continue to focus on the exchange-traded fund’s puts. On Thursday, open interest at the trust’s out-of-the-money strikes grew and continued to see brisk trading throughout Friday.

In addition, put open interest for the S&P 100 Index (OEX) continues to swell. On Friday, the Schaeffer’s put/call open interest ratio (SOIR) for the index jumped from 1.48 to 1.59, as roughly 1,300 call positions were liquidated and nearly 12,000 puts were added. This reading is now just seven percent shy of hitting a new annual high. However, this isn’t the start of the trend for the index’s SOIR. The ratio has steadily climbed from a near-term low of 1.37 on January 8 to its current perch, as puts are added at a faster pace than calls. The hefty accumulation of puts at the 660 strike for the OEX leaves the index well supported and seemingly bullishly positioned.

Technically speaking, OEX rallied back to resistance at the 665 level on Friday. This region hindered the index’s advance on January 3 and on December 18. My sense based on past such situations is that if 665 is taken out we could get to 670 very rapidly.

Turning back to the technology sector for a moment, Apple (AAPL: sentiment, chart, options), IBM (IBM: sentiment, chart, options), and Google (GOOG: sentiment, chart, options) are facing round-number resistance and big call open interest at 100, 100, and 500 strikes, respectively. It will be very interesting to see how this plays out by this Friday’s expiration. As if to add more fuel to the fire, Apple is scheduled to report earnings on Wednesday, January 17, and IBM will post its results on Thursday, January 18.

While I’m no big fan of these names, they could benefit greatly from the natural bullish bias of the market from the unwinding of the various index puts as we approach expiration. And once above the strike, they could benefit from a delta-hedging surge. The latter would depend on whether the open calls were bought to open (delta-hedging possibility) or sold to open (resistance would heighten as the stock rallies further above the strike due to selling of shares by those long the calls).

However, the market does face a couple potential obstacles. One would be the 800 level for the Russell 2000 Index. This round-number region has hindered the small-cap index’s rally attempts since early December.

A second obstacle is the 10 level for the CBOE Market Volatility Index (VIX – 10.15). Since November, broad-market rallies have have stalled when the VIX has moved into single digits, and we are only a few ticks away from these levels as of Friday’s close. I expect the market to ultimately begin accepting single-digit VIX readings as simply a reflection of the underlying low level of realized volatility, rather than as a sell signal or as a signal to buy “cheap” puts. But for the short term, the market faces a challenge every time the VIX sports a “nine-handle.” Perhaps the best prognosis for this expiration week would be a quick and sharp pullback on Tuesday that pops the VIX back toward 11, and then a steady rally during which the VIX pulls back grudgingly toward 10.

Intervoice, Inc. (INTV) provides converged voice and data solutions for the network and enterprise markets worldwide. The company offers enterprise solutions, including intervoice interactive voice response solutions; intervoice media exchange, an advanced software-based platform used to create and manage voice-based solutions; various horizontal solutions to deliver voice automation applications and solutions through reusable application modules and components; and vertical solutions, applications, and reusable software modules for banking and financial services, healthcare, public sector, retail and manufacturing, transportation and travel, utilities, telecommunications industries.

Insider Transactions
Insider Purchases - Purchases 16,000
Total Insider Shares Held 389.15K N/A
% Net Shares Purchased 4.3%

Technical Indicator
Upside Trade Trade indicators for long trades
Upside ReCalc™ : Adjust the upside trade & breakout parameters. ( Stock Price: 6.92 )
- TRADE QUALITY 85%, V. Good
- Good trade quality is a combination of good profit, profit/loss ratio and target potential.

- TARGET 1 Price: 7.66 Profit: 10.7% , for a typical rally.

- TARGET 2 Price: 7.89 Profit: 14% ,

Profit/Loss Ratio: 5.2 : 1 - Excellent

———– Curtiss-Wright Corp. (NYSE: CW) ———–

Insider Name: William B. Mitchell
Insider Position: Director
Insider Action: 2,624 shrs on 1/1/2007
Insider Total Holding: 25,052 shrs

——————————————————-
Undervaluation Merits…

P/E Ratio = 21.0 (Industry Average 23.5)
P/S Ratio = 1.35 (Industry Average 1.72)
P/B Ratio = 2.31 (Industry Average 4.43)
P/CF Ratio = 12.80 (Industry Average 15.90)

Industry: Aerospace and Defense

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Other Merits…

Dividend Yield = 0.60%

A Head and Shoulders reversal pattern forms after an uptrend, and its completion marks a trend reversal. The pattern contains three successive peaks with the middle peak (head) being the highest and the two outside peaks (shoulders) being low and roughly equal. The reaction lows of each peak can be connected to form support, or a neckline.

As its name implies, the head and shoulders reversal pattern is made up of a left shoulder, head, right shoulder, and neckline. Other parts playing a role in the pattern are volume, the breakout, price target and support turned resistance. We will look at each part individually, and then put them together with some examples.

Prior Trend: It is important to establish the existence of a prior uptrend for this to be a reversal pattern. Without a prior uptrend to reverse, there cannot be a head and shoulders reversal pattern, or any reversal pattern for that matter.
Left Shoulder: While in an uptrend, the left shoulder forms a peak that marks the high point of the current trend. After making this peak, a decline ensues to complete the formation of the shoulder (1). The low of the decline usually remains above the trendline, keeping the uptrend intact.
Head: From the low of the left shoulder, an advance begins that exceeds the previous high and marks the top of the head. After peaking, the low of the subsequent decline marks the second point of the neckline (2). The low of the decline usually breaks the uptrend line, putting the uptrend in jeopardy.
Right Shoulder: The advance from the low of the head forms the right shoulder. This peak is lower than the head (a lower high) and usually in line with the high of the left shoulder. While symmetry is preferred, sometimes the shoulders can be out of whack. The decline from the peak of the right shoulder should break the neckline.
Neckline: The neckline forms by connecting low points 1 and 2. Low point 1 marks the end of the left shoulder and the beginning of the head. Low point 2 marks the end of the head and the beginning of the right shoulder. Depending on the relationship between the two low points, the neckline can slope up, slope down or be horizontal. The slope of the neckline will affect the pattern’s degree of bearishness: a downward slope is more bearish than an upward slope. Sometimes more than one low point can be used to form the neckline.
Volume: As the head and shoulders pattern unfolds, volume plays an important role in confirmation. Volume can be measured as an indicator (OBV, Chaikin Money Flow) or simply by analyzing volume levels. Ideally, but not always, volume during the advance of the left shoulder should be higher than during the advance of the head. This decrease in volume along with new highs that form the head serve as a warning sign. The next warning sign comes when volume increases on the decline from the peak of the head. Final confirmation comes when volume further increases during the decline of the right shoulder.
Neckline Break: The head and shoulders pattern is not complete and uptrend is not reversed until neckline support is broken. Ideally, this should also occur in a convincing manner with an expansion in volume.
Support Turned Resistance: Once support is broken, it is common for this same support level to turn into resistance. Sometimes, but certainly not always, the price will return to the support break, and offer a second chance to sell.
Price Target: After breaking neckline support, the projected price decline is found by measuring the distance from the neckline to the top of the head. This distance is then subtracted from the neckline to reach a price target. Any price target should serve as a rough guide, and other factors should be considered as well. These factors might include previous support levels, Fibonacci retracements, or long-term moving averages.

Housing (RUF)
Bullish
Sector trading above its…
20-day Moving Average: NO
50-day Moving Average: YES
100-day Moving Average: YES

Sentiment:Pessimism remains strong against the housing sector. Of the 158 analyst ratings offered up on the components of the housing sector, Zacks reports that 42 percent come in at a “buy.” What’s more, options players have loaded up on bearish bets toward the sector.

Outlook:Negative earnings news from Lennar (LEN) last week worked to send the housing sector lower along with weakness in the broad market. Technically speaking, the index dropped below support at its 20-day moving average, but is fast approaching its rising 50-day moving average, which should help to halt the sector’s short-term descent.

Telecommunications (TTH)
Bullish
Sector trading above its…
20-day Moving Average: NO
50-day Moving Average: YES
100-day Moving Average: YES

Sentiment:Pessimism continues to permeated the telecom sector’s sentiment backdrop. The composite Schaeffer’s put/call open interest ratio for the sector has risen to a reading of 0.97, as puts nearly equal calls among near-term options. This reading is also higher than 98 percent of those taken during the past 52 weeks.

Outlook:The Telecommunications HOLDRS Trust (TTH – 34.31) pulled back last week with the rest of the market, dropping below support at its 20-day moving average. However, the exchange-traded fund (ETF) remains above the support of its ascending 10-week and 20-week moving averages, which continue to rising into the region and should help to buoy the shares during the near term.

On the options front, the Standard & Poor’s Depositary Receipts (SPY: sentiment, chart, options) closed Friday just above the 140 strike, which is the site of peak put open interest in the January series with more than 75,600 contracts. This strike corresponds with round-number support at the 1,400 on the SPX, which is also the site of healthy put open interest (119,100 contracts). This accumulation of bearish bets could help to serve as a layer of key options-related support for the broad market.

Technically speaking, the 50-day moving average for the SPY rests just above 140, which many technicians may be focusing on during the short term. A break of these key option-related areas and popular moving averages could lead to accelerated selling like we saw in May 2006, which is something traders should be on the alert for.

However, if past is prologue, the higher probability scenario is that these option-related support areas hold.

The same story exists for the iShares Russell 2000 Index (IWM: sentiment, chart, options), which breached its 50-day moving average last week. The exchanged-traded fund (ETF) is currently trading right around major put open interest at the 75-77 strikes. We look for the areas to ultimately hold during the short term.

Another bullish argument for strength in IWM is the growing pessimism exhibited in the steady increase in the ETF’s Schaeffer’s put/call open interest ratio since December options expiration. During that time frame, the ETF has seen roughly 550,000 puts added compared to only 175,000 call additions. This swelling of bearish bets has certainly has put a huge brake on IWM action during this period, and an unwinding could be huge in the other direction as we now turn the corner toward expiration.

Meanwhile, NYSE market breadth (as measured by the advance/decline ratio on NYSE stocks) reached its most over-sold level of the past three weeks on Friday. Oversold can always get more oversold, but there is potential for Friday’s action to be climactic, especially combined with pullback to the support levels cited above.

One other indicator that deserves mention is the CBOE Market Volatility Index (VXO), which is based on S&P 100 Index (OEX) options. Could the index have finally reached a peak last week, as its advance coincident with the broad-market sell-off? The index is nearing its 160-day moving average, which marked a peak for the VXO during its last rally attempt.

This rise in the VXO essentially means that portfolio protection is becoming more expensive for options traders. In fact, it is nearly 50 percent more expensive than in mid-December when the market peaked.

When the implied volatility of options is low, it attracts the “portfolio protection play” because puts are cheap and (usually) because the market has rallied, and the perceived “need” for protection becomes more intense due to the mean-reversion mentality among traders. This activity tends to put a lid on the market, as the put sellers on the other side of the trade short futures as a hedge.

However, when the VXO has rallied sharply, the protection play is discouraged by the fact that it has become more expensive, and by the mean reversion mentality that looks at pullbacks as buying opportunities (just as rallies are looked at as selling opportunities).

The increased expense of buying put protection may now cause some portfolio managers to shy away from purchasing puts thus helping the market find support.

Furthermore, any downturn that might emerge during the short term could be led by commodity-driven sectors, similar to the pullback we witnessed in May 2006. We continue to avoid this area of the market, even though traders might be attempting to bottom fish following the huge sell-off in these areas we saw at the start of the New Year.

In addition, the 2007 Nasdaq/tech rally could be fueled in part by a move by the hot money out of commodities and into what is perceived as the next hot sector. In fact, while the SPX notched a loss for the week, the Nasdaq Composite (COMP) added 0.79 percent. However, this could be a sucker move unless and until a real breakout occurs. The weekly relative-strength measure for the Nasdaq-100 Trust (QQQQ: sentiment, chart, options) versus the Select Sector SPDR Energy Fund (XLE: sentiment, chart, options) has climbed into resistance at its 80-week moving average. The tech sectors are also vulnerable due to its high ranking in most year-end forecasts and high expectations for upcoming fourth-quarter earnings.

The New Year started with barely a whimper, as U.S. stocks closed mostly lower on the holiday-shortened week. The Nasdaq Composite was the only positive performer (2,434.25 +18.96 +.078%) as techs had a good week all things considered. The S+P 500 (1,409.71 -8.59 -.06%) and Dow Jones 30 (12,398.01 -65.14 -.05) fell just slightly less than the small cap Russell 2000 (775.87 -11.79 -1.5%).

It seems that after the first three trading sessions of the year, the market is still trying to find its way after a very impressive rally over the last half of last year. Friday’s employment and payroll numbers showed increases that were worth noting. As a result of higher than expected results in employment and wage increases, market participants anticipating a rate cut were most likely disappointed. This helped take the steam out of a nice rally in early trading Thursday.

This Tuesday could bring word from the White House on President Bush’s new “plan” for the war in Iraq. The installation of Democratic majority leaders in both the House and Senate has caused a bit of a revolving door shakeup at the White House. It remains to be seen what the new plan for the war will be but don’t be too surprised if it results in more troops heading for Baghdad. Also, Alcoa kicks off what will be a widely watched fourth quarter earnings season.

Wednesday, the November trade balance is seen worsening slightly and high-end retailer Tiffany’s holds their holiday sales conference before the market opens. On Thursday, the Bank of England is expected to keep interest rates steady, and the European Central Bank is expected to announce their decision regarding interest rates and provide some guidance on what to expect in the months ahead, while the U.S. Senate Budget committee holds a hearing on long term outlook.

Friday brings the December consumer sales report which is expected to show consumer spending inline with expectations (+.05%) while the bond market closes at 2 pm EST in advance of Martin Luther King Day. With all that said, the key to this week will be how trading shapes up by the close on Monday and Tuesday. With stocks stuck in the same place they were last May, it will be a very interesting week in deed.

———– INTERVOICE INC (NasdaqGS:INTV) ———–

Insider Name: Multiple
Date Insider Shares Type Transaction Value*
8-Nov-06 GOLDBERG KENNETH A
Officer 3,000 Direct Purchase at $6.20 per share. $18,600
8-Nov-06 GOLDBERG KENNETH A
Officer 3,000 Direct Purchase at $6.20 per share. $18,600
2-Nov-06 MILTON JAMES A
Officer 10,000 Indirect Purchase at $6.01 per share. $60,100
23-Oct-06 REED DONALD
Director 3,000 Direct Purchase at $6.30 per share. $18,900

Insider Position: Director and Officer
Insider Action: 25,000 shrs in recent 2 months
Insider Total Holding: 25,052 shrs

——————————————————-
Undervaluation Merits…

P/E Ratio = 29.96 (Industry Average 50)
P/S Ratio = 1.35 (Industry Average 1.72)
P/B Ratio = 2.31 (Industry Average 4.43)
P/CF Ratio = 12.80 (Industry Average 15.90)

Industry: Technology

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