Follow-thru selling

"Every individual should have a purpose in life which is worthy of intense effort-- and constantly work toward the definite goal ahead." - Roderick Stevens

Morning News of Note:

• US Economy: Fed Gov Santomero said economic outlook is positive; Fed to cont shifting rates to neutral; storm impact on US economy temporary; sees steady growth in biz spending; long run inflation expectations remain stable; energy prices pushing up inflation (Tuesday) // IMF Chief Economist Raghuram Rajan said US FOMC to continue raising interest rates in the near future
• INTC: Don't Count Out Intel THE WORLD'S BIGGEST CHIP MAKER has been humbled, but it isn't fading away anytime soon. Intel's market for computer microprocessors has changed from a virtual monopoly to a near duopoly this year, thanks to gains from competitor Advanced Micro Devices. And it has ceded the biggest market for chips -- cellphones -- to Texas Instruments. As a result, shares of Intel have risen 18% in the last year compared to AMD's 91% gain. (Full Story) BARRONS
• MSFT GOOG SUNW: A challenge to Microsoft? Not this deal Google Inc., the world's leading Internet search service, yesterday struck up an alliance with computer hardware and software maker Sun Microsystems Inc. that could strengthen both companies' bids to play leading roles in the future of online services. But the deal fell short of the blunt challenge to the power of Microsoft Corp. that had been expected by many industry watchers. ''Both companies are devoted to software as a service and the network as the computer," said Sun chief executive Scott McNealy. (Full Story) Boston Globe
• Bulls/Bears: Bulls 49.5 vs 53.2, Bears 27.8 vs 26.6, Correction 22.7 vs 20.2

Market Comments: More selling pressure at the open today. Earnings warnings hit HGSI, MERQE, and ADCT. ELOS is getting a bump from positive chatter about a strong quarter. The ISM Services report came in weaker-than-expected (53 vs 60). Biotech stocks are giving back the most this morning (-3.1%), followed by housing stocks (-2.9%). Big pharma stocks are the only ones in positive territory, a defensive move. Stay nimble, and let the selling run its course.

long ELOS, INTC, GOOG, MSFT