Macro Outlook
Picture of a bottom in real estate:

Bottoms are usually shaped like a bowl, with bad news on one side, a low in the middle and good news on the other.

Housing permits just hit a five year low… but housing starts are up for the first time since May.

More tonight…

Material Profits
A quick reminder, folks. Adam and I are gearing up for the next edition of TFN.

We welcome your questions. Just send them in via an email to wavestrength@taipangroup.com. Use the subject line “Questions for TFN.”

We hope to hear from you!

Trading Tactics
Ok, so this morning, the Dow finally broke through the magical 12,000 mark. The sell-off that I had been expecting happened yesterday morning, when the Dow gave up 90 points in early action, only to recover 60 of those points intra-day and close down only 30.

Then this morning, names like Boeing (BA - NYSE), Caterpillar (CAT - NYSE), IBM (IBM - NYSE) Intel (INTC - Nasdaq) and Johnson & Johnson (JNJ - NYSE) are all doing their part to lead the blue chip average 90 points higher to 12,048.

This upside market action is why we're holding two calls in WS Trader. After all, we don't have to like the upside to profit off it, right!?

=============================================================

Copyright 2006 by The Taipan Group,LLC. All rights are reserved. Printed in USA. Information, opinion, research, and commentary contained herein is obtained from sources believed to be reliable; their reliability, however, cannot be guaranteed. The maxim of Caveat Emptor applies - let the buyer beware! WaveStrength Market Report does not provide individual investment advice, or act as an investment advisor, or individually advocate the purchase or sale of any security or investment.

Investments recommended in this service should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company.

WaveStrength Market Report reserves the right to use email endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscriber's initials will be used unless express written permission has been granted to the contrary.

The Taipan Group, LLC.expressly forbids its writers from having a financial interest in any security that they recommend to their readers. Furthermore, all employees and agents of The Taipan Group, LLC and its affiliate companies must wait 24 hours before following an initial recommendation published on the Internet, or 72 hours after a printed publication is mailed.