Position Statement: In our Prime Recommendation Letter we attempt to identify the recommendation with the highest probability of moving higher.  We recommend that stop orders be placed at the time of purchase,  and once the position has moved profitable we recommend a stop be placed a minimum of $0.25 above the purchase price and moved higher as the position moves higher.

Today’s Comments: The overall market finished Tuesday strongly to the upside in a broad based move that saw the majority of the sector indices I track move higher. The strongest sectors on the day were the Broker/Dealers, Semiconductors, Healthcare, Utilities, Pharmaceuticals, Retailers, Biotech, Healthcare Providers, Interactive, Computers, High Tech, Telecom, and Consumer indices; basically everything that had been dropping the last few days. The weakest sectors on the day were the Airlines, Natural Gas, and Commodities; basically what had been moving higher the last few days. Bonds rallied on the day, sending interest rates slightly lower. Yesterday's market activity appeared to be a round of short covering; where I think the initial shorting activity may have been sparked by some concerns that the Fed would raise interest rates 1/2 of a percent due to the strong economy. The majority of the stocks with the heaviest volume all still maintain bearish charts, or to state it simply, I do not think the current market pullback is over. The Bottom Line: The market should move lower.

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Sterling Calendar for August 10th, 2005

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Recommendation: Massey Energy Co. 'MEE'
Company: Massey Energy Co.		Symbol: 'MEE'	Closing Price: $46.46
YH: $46.60 YL: $25.17		EPS: $1.10 P/E: 42.43	Forecasted EPS: $1.57
Shares Outstanding: 76.7 Million		Float: 70.1 Million	Market Cap.: $3.5 Billion
Dividend: $0.20	Yield: 0.43%	Average Daily Trading Volume: 1.7 Million
Price Targets:  $49.75 and then $56.35			DownsideStop:  $45.63/share
Options Rec.: August 45 Calls @ $2.15/contract			Options Symbol: MEEHI

Company Description: Massey Energy Company engages in the production, processing, and sale of low sulfur bituminous coal of steam and metallurgical grades through its processing and shipping centers called resource groups. These resource groups or mining complexes blend, process, and ship coal that is produced from one or more mines. The company’s steam coal is primarily purchased by utilities and industrial clients as fuel for power plants. Its metallurgical coal is used primarily to make coke for use in the manufacture of steel. The company also operates material handling facilities and a synfuel production plant. This plant converts coal products to synthetic fuel. Its customer base includes various electric utilities, steel manufacturers, industrial customers, and energy traders and brokers. As of December 31, 2004, Massey Energy operated 34 underground mines and 15 surface mines in West Virginia, Kentucky, and Virginia. In addition, the company holds interests in operations that produce, gather, and market natural gas from shallow reservoirs in the Appalachian Basin. As of the above date, it owned and operated approximately 156 wells, 184 miles of gathering line, and various small compression facilities in Appalachian Basin. Massey Energy distributes its products through freight and terminal agreements with various providers, including railroads, barge lines, steamship lines, bulk motor carriers and terminal facilities. The company was incorporated in 1920 as A.T. Massey Coal Company, Inc. and renamed as Massey Energy Company in 2000. Massey Energy is headquartered in Richmond, Virginia.

Recent News:	8/08 MASSEY ENERGY CO Files SEC form 10-Q, Quarterly Report EDGAR Online (Tue 12:21pm)
	8/01 New Star Analyst Rankings for MASSEY ENERGY CO StarMine (Mon, Aug 1)
	7/28 UPDATE - Massey profit nearly triples on coal demand at Reuters (Thu, Jul 28)

Our Analysis: The shares of Massey Energy Co. 'MEE' set a new closing high on heavier than normal trading volume yesterday. This is a very bullish trading signal. In the process the shares of 'MEE' completed a short term "cup pattern" with a measured move to $56.35/share, our upper price target. In the meantime the shares of 'MEE' should continue to move higher and test $49.75/share, our price target from a long term "cup pattern" stretching over several years that was established in early 2004. I see downside support on the shares of 'MEE' @ $45.90/share, and have set our stops accordingly at $45.63/share.

Dow Jones Industrial Average (INDU): Closed @ 10,615.67 Last Signal: Called Lower on August 5th with the previous day's close of 10,0610.10 Current Expectations: I am expecting the Dow Jones Industrial Average to pullback over the short term and move lower and test 10,432.51

S&P 500 (SPX): Closed @ 1,231.38 Last Signal: Called Lower on August 5th with the previous day's close of 1,235.86 Current Expectation: I am expecting the S&P 500 to to pullback over the short term and test 1,216.96

NASDAQ 100 (NDX): Closed @ 1,601.14 Last Signal: Called Lower on August 5th with the previous day's close of 1,608.74 Current Expectations: I am expecting the NDX to pullback over the short term and test 1,568.96

CBOE Ten Yr Treasury Index (TNX): Closed @ 4.394% Last Signal: Called Higher on August 1st with a close of 4.319% Current Expectations: The TNX should move higher and test 4.491% on a closing basis.

BCE, AMTD, ENER, BAP, SSL, ISRG, IVAC, RS, LUX, STFC, STR, TNT, GR, CRM, COF, SGP, ACI, MCK, USG, PFG, GRP, EME, TWX, TYC, BIIB, GE, TXN, AAPL, MCD, CY, GS, BA, AIG

DAL, BBI, L, AMGN, EBAY, BAC, QCOM, TLWT, PG, CNO, NTAP, ADCT, WMB, JCP, RHAT, BR, OXY

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