Analyst Upgrades

• Walgreen (WAG) and Triumph Group (TGI) to buy from neutral at UBS.
• Focus Media (FMCN) to buy from neutral at Goldman.
• Home Depot (HD) to outperform from market perform at FBR Capital.
• Arbitron (ARB) to overweight from neutral at JPMorgan.
• Waddell & Reed (WDR) and Legg Mason (LM) to overweight from equal weight, and Janus Capital (JNS) to overweight from underweight, at Barclays.
• Central Euro Media (CETV) to buy from hold at Deutsche Bank.
• GenOn Energy (GEN) and Ntelos (NTLS) to outperform from sector perform at RBC Capital.
• Cooper Tire (CTB) to buy from neutral and Goodyear Tire (GT) to buy from underperform at BofA/Merrill.

Gary Gensler, chairman of the Commodity Futures Trading Commission, testified before a congressional committee investigating the 998 point drop in the Dow. That plunge wiped out nearly $1 trillion in market capital.

In his testimony, Gensler said he identified one high-volume trade in the e-mini S&P futures contract. The mystery firm was Waddell & Reed Financial (WDR). Waddell sold 75,000 contracts during the time of the plunge. The e-mini is liquid and traders use it as a guide to trading the Dow. Waddell maintains that the sale was a hedge. That means that the sales were used to offset other long positions.

In today's Barron's, investors will find the annual Lipper/Barron's Fund Families Survey. This survey, a pretty comprehensive look at performance of mutual fund families across different asset classes and investment strategies.

This year take-aways:

• Growth worked: Those funds that performed best definitely had a bias towards growth.
• International exposure: Funds that bought stocks with substantial foreign operations fared better.
• Avoiding pitfalls: Underexposure to potential "minefields like major banks, housing companies, and retailers" helped boost performance.
• High grade: Those funds that owned highest-quality bonds performed best.

Waddell & Reed (NYSE: WDR) placed first in 2007 betting on companies participating in "major infrastructure plays throughout the world," like Fluor Corp. (NYSE: FLR) and Deere & Co. (NYSE: DE). Check out the Waddell & Reed Dividend Income Fund (WDVAX).