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 Monday moderately higher in a broad based move that saw the majority of the sectors I track move higher. The strongest sectors on the day were the Semiconductors, Banking, Biotech, Consumer, High Tech, Retailers, Broker/Dealers, Internet, Computers, Insurance, Telecom, Interactive, Airlines, Chemicals, and Cyclicals. There was weakness in the Natural Gas, Oil & Gas, Gold/Silver, Commodities, and Pharmaceuticals. Bonds moved lower on the day sending interest rates higher. I have finished my review of the individual stock charts from Monday's trading activity; it appears that new trends may be starting to form with banking stocks looking to rally and new weakness starting in the oil & gas related stocks. Also pharmaceuticals continue to look weak. The Bottom Line: The overall market continues to look weak and should move lower.

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Sterling Calendar for August 16th, 2005

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Recommendation: Autodesk, Inc. 'ADSK'
Company: Autodesk, Inc.		Symbol: 'ADSK'	Closing Price: $37.75
YH: $39.90 YL: $18.02		EPS: $1.02 P/E: 37	Forecasted EPS: $1.35
Shares Outstanding: 228 Million		Float: N/A	Market Cap.: $8.6 Billion
Dividend: $0.04	Yield: 0.10%	Average Daily Trading Volume: 2.5 Million
Price Targets:  $38.57, $39.58, 45.90 and then $49.56			Downside Stop:  $36.58/share
Options Rec.: August 35 Calls @ $3.60/contract			Options Symbol: ADQIG

Company Description: Autodesk, Inc. operates as a software and digital content company worldwide. The company provides business solutions through technology products and services, including integrated and interoperable design software, Internet services, wireless development platforms, and point-of-location applications. Its activities are segregated into Design Solutions and Discreet Segments. Design Solutions segment sells design products and services for professionals and consumers who design, build, manage, and own building projects or manufactures goods, as well as the sale of mapping and geographic information systems technology to public and private users. The principal product portfolio of the segment includes AutoCAD and AutoCAD LT products. This segment also offers consulting, support, and training services. Discreet segment develops, integrates, markets, sells, and supports film and television compositing systems; high definition and standard definition broadcast editorial and finishing systems; digital cinema production systems for color grading and film finishing; and animation, visualization, and streaming media products. This segment primarily sells its products to post production facilities, film studios, broadcasters, and creative professionals for various applications, including feature films, television programs, commercials, music and corporate videos, interactive game production, design visualization, Web design, and interactive Web streaming. The company also offers a technology platform designed to deliver location-based applications to wired, mobile, and wireless users. Autodesk markets its product, LocationLogic, primarily to wireless carriers and network operators. The company’s customers include companies in the building, manufacturing, infrastructure, and digital media sectors. Autodesk has a strategic alliance with UGS PLM Solutions. The company was founded in 1982 and is headquartered in San Rafael, California.

Recent News:	8/15 Autodesk's Strong Recent Execution at Forbes.com (Mon 5:00pm)
	8/3 Autodesk Extends Invitation to Join its Second Quarter Fiscal 2006 Financial Results Conference Call on Thursday, August 18th at 2:00 p.m. PDT PR Newswire (Wed, Aug 3)
	7/21 Autodesk Releases New Versions of Its Visual Effects, Editing and Digital Color Grading Systems PR Newswire (Thu, Jul 21)

Our Analysis: The shares of Autodesk, Inc. moved sharply higher on heavier than normal trading volume yesterday. The shares of 'ADSK' should continue to move higher and test $38.57/share, an upside point of resistance established on December 28th of last year. If the shares of 'ADSK' close above $38.57/share, then they will have completed a long term "cup pattern" with a measured move to our upper price target of $49.56/share. However in the shorter term our next price target would be $39.58/share, their yearly closing high. If the shares of 'ADSK' close above $39.58/share, then they will have completed a shorter term "cup pattern" with a measured move to our intermediate price target of $45.90/share. I see downside support on the shares of 'ADSK' at $36.83/share, and have set our downside stops at $36.58/share.

Dow Jones Industrial Average (INDU): Closed @ 10,634.8 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 10,546.32 If the Dow closes below this level then it should continue to move lower and test 10,432.51

S&P 500 (SPX): Closed @ 1,233.87 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 1,225.31 and then 1,2166.96 if the support at 1,225.31 fails to hold.

NASDAQ 100 (NDX): Closed @ 1,600.71 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 @ 4.270% Last Signal: Called Lower on August 15th with the previous day's close of 4.238% Current Expectations: The TNX should move lower and test 4.196% and then 4.177% on a closing basis.

VOXX, GRS, BLK, AAPL, SYK, VLO, CDI, VCI, BN, APCS, HMN, TZIX, DST, GS, DCEL, SY, QSII, OI, SNDK, ITWO, KFS, FLSH, LUFK, JTX, LNC, MEE, FISV, USM, CNXS, TWX, C, QCOM, NVDA, BRCM, AMD, ADSK, PALM, FRO

CSCO, DAL, MOT, SYMC, FNM, GOOG, SEBL, JNJ, CHK, CFC, HAL, RIG, FDO, JCP, FRE, SLB, KO, NVLS, CCL, MON, BHI, BR, LLY, GSF

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