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 took a serious dump yesterday as somehow the market seamed to wake up to the fact that rising oil prices would eventually create inflation, and that Fed wasn't done raising interest rates yet. I thought the issue with oil prices was so obvious I hadn't bothered to write it up it in the Sterling Weekly. Once again I shouldn't be surprised by the ability of people to overlook the obvious. As far as short term interest rates are concerned, I discussed my thoughts on those in the August 15th edition of the Sterling Weekly. I would like to point out that my target level is about the same target level suggested by Steve Leisman on CNBC today! Every sector of the market I track went lower today, not sure I've ever seen that before. The weakest sectors on the day were the Biotech, Natural Gas, Oil & Gas, Commodities, Utilities, Gold/Silver, Chemicals, Cyclicals, Technology, Telecom, Semiconductors, Healthcare Providers, Airlines, Retailers, and Consumer indices. The only thing I saw moving higher was the bond market as interest rates went slightly lower. Having just completed my review of the individual stocks from yesterday's trading; it is safe to say they all looked weak. The Bottom Line: The overall market should move lower.

---

Sterling Calendar for October 6th, 2005

---

Recommendation: Sell/Short Amgen, Inc. 'AMGN'
Company: Amgen, Inc.		Symbol: 'AMGN'	Closing Price: $78.01
Web Site: http://www.amgen.com		YH: $86.92 YL: $52.00	Forecasted EPS: $2.19
Shares Outstanding: 1.23 Billion		EPS: $4.26 P/E: 14	Market Cap.: $96 Billion
Dividend: $0.00	Yield: N/A	Average Daily Trading Volume: 10 Million
Price Targets:  $70.52, and then $63.60			Upside Stop:  $78.93/share
Options Rec.: October $75 Puts @ $1.10/contract			Options Symbol: YAA VO

Company Description: Amgen, Inc., a biotechnology company, engages in the discovery, development, manufacture, and marketing of human therapeutics based on advances in cellular and molecular biology. The company markets human therapeutic products in the areas of nephrology, supportive cancer care, and inflammatory disease. Its products primarily include EPOGEN, Aranesp, Neulasta, NEUPOGEN, and ENBREL, which is marketed under a co-promotion agreement with Wyeth in the United States and Canada. EPOGEN and Aranesp stimulate the production of red blood cells to treat anemia. Neulasta and NEUPOGEN selectively stimulate the production of neutrophils, a type of white blood cell that helps the body fight infections. ENBREL blocks the biologic activity of tumor necrosis factor (TNF) by inhibiting TNF, a substance induced in response to inflammatory and immunological responses, such as rheumatoid arthritis and psoriasis. It sells its products to healthcare providers, including clinics, hospitals, and pharmacies primarily in the United States, Europe, Canada, and Australia. Amgen was established by Bill Bowes, Franklin Johnson, Sam Wohlsteadter, and Raymond Baddour in 1980. The company is headquartered in Thousand Oaks, California.

Recent News:	10/6 Amgen Earnings Call scheduled for Wed, Oct 19 CCBN (Thu 2:46am)
	10/4 U.S. Drug Makers to Post Modest 3Q Gains AP (Tue, Oct 4)
	10/3 Genentech Could Beat Q3 Earnings Estimates at Forbes.com (Mon, Oct 3)

Our Analysis: The shares of Amgen, Inc. 'AMGN' moved sharply lower on heavier than normal trading volume yesterday and in the process they closed below a key support level. This is a very bearish trading signal. The shares of 'AMGN' are also a component of the Amex Biotech Index 'BTK' which also appears to be moving lower from its current levels. This is another negative for the shares of 'AMGN'. The shares of 'AMGN' should continue to move lower and test $70.52/share, the point from which they gapped higher on the open of trading on July 20th of this year. If the shares of 'AMGN' close below that level then I expect them to continue to move lower and test $63.60/share, the point from which they gapped higher on the open of trading on July 7th of this year. I see upside resistance on the shares of 'AMGN' at $78.68/share, and have set my stops accordingly at $78.93/share.

Dow Jones Industrial Average (INDU): Closed @ 10,317.36 Last Signal: Called lower on October 5th with the previous day's close of 10,441.11 Current Expectations: I am expecting the Dow Jones Industrial Average to move lower and test 10,270.68 on a closing basis.

S&P 500 (SPX): Closed @ 1,196.39 Last Signal: Called lower on October 5th with the previous day's close of 1,214.47 Current Expectation: I am expecting the S&P 500 to move lower and test 1,190.69 on a closing basis.

NASDAQ 100 (NDX): Closed @ 1,571.52 Last Signal: Called lower on October 5th with the previous day's close of 1,595.54 Current Expectations: I am expecting the NDX move lower and test 1,561.84 and then 1,533.27 on a closing basis.

CBOE Ten Yr Treasury Index (TNX): Closed @ 4.361% Last Signal: Called higher after the close of trading on September 12th at 4.169% Current Expectations: This index should continue to move higher and test then 4.419%

CDMS, PEP, ACE

MSFT, CSCO, INTC, DELL, XOM, TXN, PFE, MOT, GE, CHK, VLO, HPQ, GM, S, CVX, HAL, VZ, AMD, JPM, COP, AA, FNM, WMB, AMGN, ECA, HD, HDI, SLB, JNPR, JNJ, NEM, XTO, BR, DNA, TOL, NVDA, BBY, ERTS

The Sterling Investment series of newsletters is produced by Sterling Investment Services, Inc.  If you would like to receive a chart on any index or stock mentioned in this report please contact us at the below mentioned numbers.  We also offer custom research reports on any stock investment that you may desire information on.  To receive further information on these services please visit our web page at:  www.sterlinginvestments.com   If you would like to contact us our # is 800-275-6901,  fax # (404)-816-8830  Email address is: enelson@sterlinginvestments.com  Sterling Investment Services may hold positions in the securities recommended or may be providing consulting services to the companies mentioned within this report.