Macro Outlook

Signs of a market top: Heelys Inc. proud maker of a sneaker with a roller skate wheel in the heel, has issued its initial public offering. So now we are forced to refer to this one trick pony as (HLYS:NASDAQ GM). 

The stock went up 85% in a matter of hours.

My prediction: Heelys sneakers (admittedly very popular right now) will eventually end up in the junk closets of millions of suburban homes. HLYs' stock certificates will be used to wallpaper the bathroom of the basement recreation room. 

PS: All you folks who are holding Pfizer Inc. (PFE:NYSE) puts might want to be aware that word is circulating of Pfizer's rescue plan to increase dividends 25%. The deed is supposedly going to happen sometime this week. I'm looking into it, but in the meantime, you might wish to take some defensive action. 

Market Trends

I'm trying not to beat a dead horse but I just can't help it…

Taser International Inc. (TASR:NASDAQ) had its (count them) 28^th liability case against it dismissed. The first dismissal came in 2005. 

TASR continues to show investors that its namesake non-lethal weapons do not cause wrongful death. 

Currently TASR is trading slightly above $8.00 per share. Indicators are at the low end and rising. I'm expecting the stock to begin another rally this week.

Trading Tactics

Good news for WaveStrength Options Weekly readers this morning, as El DuPont de Nemours & Co. (DD:NYSE) lifted its 2006 earnings outlook to $3.25 a share from $2.86 a share. 

This upward revision comes thanks to a $60 million insurance payment from asbestos litigation and Hurricane Katrina-related claims - plus $500 million from tax adjustments.

Since analysts polled by Thomson First Call had expected $2.88 a share, this is coming as a welcome surprise this morning, pushing DD shares up $0.50 at the open of trading. 

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