Destroyer Follows Freighter

The USS John S McCain(DDG56),an Arleigh Burke class destroyer,is shadowing a North Korean freighter,the Kang Nam,on an odyssey through East Asian waters.The freighter is suspected of carrying illegal weapons to Myanmar,or Burma.Although the McCain could legally stop the freighter,it probably will not do so,in order to avoid setting off the volatile North Korean regime.It will likely just focus the international spotlight on the activity,showing the world's disapproval and vigilance.
Meanwhile,special radar equipment has been positioned in the Pacific to protect Hawaii,which North Korea is threatening with a missile test in early July.The destroyer McCain is named for the father and grandfather of U.S. Senator John McCain,R-Arizona,both of whom were Navy admirals.It can sail at more than 30 knots.

A Goldman Outlook

For Abby Joseph Cohen,President of Goldman Sachs' Global Market Institute,preventing financial crises is a question of better and more effective regulation,as well as enhancing financial literacy.Our feeling is that the worst of the economic news is over,Ms.Cohen stated.Gross Domestic Product for Q2 will be -3,and barely positive for Q3-Q4.We're not expecting another spike in price,but a 900-950 S and P trading range.The time frame in investors' minds is getting longer.Those categories with some exposure to the global economy would be appropriate,Ms.Cohen said.

First In,First Out

Almost all U.S. Marines will be out of Iraq by next spring,said General James T. Conway,Commandant of the U.S. Marine Corps.The Marines have already begun moving equipment out of Anbar Province,the center of Marine operations in Iraq.Once national elections are held in December,the withdrawal will begin in earnest.
Around 30 Marines will remain to assist with oil platform security near Basra,helping the Iraqi Marine Corps,General Conway informed the National Press Club in Washington,D.C.In Anbar,the Marines struggled with foreign fighters pouring over the border with Syria.President Barack Obama has ordered all U.S. forces out of Iraq by December,2011.

Why Tech

David Kelly,of JP Morgan Asset Management,says it looks like we are turning a corner in the labor market.The key thing is to make sure you have enough exposure in equities.We've had the Armegeddon-aversion rally.There is plenty of opportunity there.Tech has a lot of opportunity,with plenty of cash on the books,Mr.Kelly believes.

France Opens Navy Base

A French navy base near Abu Dhabi,the capital of the United Arab Emirates,has been opened by the President of France,Nicolas Sarkozy.The base will allow the French navy to project power in the Persian Gulf,protecting the oil and liquified natural gas shipments that transit the Gulf,as well as in the Gulf of Aden and the Indian Ocean,where Somali pirates have beeen attacking merchant vessels.It is France's first military installation outside of Africa,and the first new foreign base since the 1960s.
Preseident Sarkozy is a close friend of U.S. President Barack Obama,and has reintegrated the French military into the NATO alliance.The French and U.S. navies are involved in a number of personnel exchanges,especially in the naval aviation field.The two navies participate in extensive joint training and operations.

Price Targets Raised

Citigroup has raised its price target for Google from 450 dollars to 580.Goldman Sachs says oil will climb to 85.00 a barrel by year's end,and to 95.00 by 2010.Credit Suisse has raised its target for JP Morgan Chase from 35.00 to 42.00.

A Marine for NASA

Major General Charles F. Bolden,Jr.,U.S. Marine Corps Retired,has been selected by President Barack Obama to head NASA.General Bolden was himself an astronaut,having flown on four space shuttle missions-commanding two of them.His last mission was in 2004.Before his space career,which also included stints as a NASA administrator,General Bolden was a Marine aviator,flying more than 1000 sorties in the Vietnam War.He served in the Persian Gulf as well.The U.S. Naval Academy graduate was praised by fellow astronaut Senator Bill Nelson(D-Florida) for being a patriot,a leader and a visionary.General Bolden would be charged with conducting a review of all of NASA's programs,retiring the shuttle and guiding the follow-on Orion program,if he wins U.S. Senate approval.He would be the first African American to direct NASA.

Schaeffer's Analysis

Bernie Schaeffer,Chairman of Schaeffer's Investment Research,has been analyzing the recent rally.The rally is based on a very powerful oversold buy signal,Mr.Schaeffer said.Typically,this goes much further than a bear market rally.Hedge funds are moving away from deleveraging and starting to get involved here.Bonds are also very oversold,in Mr.Schaeffer's view.