Knight Capital Group Announces Annual Forecast for 2006 from Knight Research

JERSEY CITY, N.J., Dec. 19  /PRNewswire-FirstCall/ -- Knight Capital Group, Inc. (NASDAQ:NITE) today announced the release of the Annual Forecast for 2006, the first report from Knight Research, a new client offering tying technical analysis with trading.  Knight Research is led by Ralph J. Acampora, an Institutional Investor-ranked technical analyst who joined Knight in October from Prudential Equity Group.

"History suggests that the equity market is currently in a transitional phase," Mr. Acampora said.  "We believe two phenomena will impact 2006: the 'Four-Year Cycle,' characterized by a noticeable decline that usually ends with a historic low; and the recurring 'Presidential Cycle,' which manifests itself in a return of prices to realistic levels after a run-up during a presidential term's first-year 'honeymoon period.'

"A potential early New Year advance in the market of approximately 5% is part of this transition that, in our opinion, will set the stage for a market decline of as much as 20% to 25% ending sometime during the second half of '06," he continued.  "This major market bottom -- a classic four-year low -- would provide investors with a significant buying opportunity.  As the presidential elections grow near, a new bull market will emerge with the strength to carry well into 2007 and potentially into 2008."

Other highlights from the Knight Research Annual Forecast for 2006 include the following:

  * Technology, Energy and Financials will be the S&P 500 sector
    outperformers

  * Intermediate-term trends favor growth- over value-style investment

  * Crude's potent uptrend continues and the CRB index has the potential to
    run much further

  * Gold is in a long-term secular bull trend with an upside target in the
    $580-600 per ounce range

  * 10-year Treasury note yield is expected to hit 5%

  * The U.S. Dollar Index appears headed higher from its current bottoming
    pattern

  * Foreign markets should mirror the volatility of the U.S. market



The Knight Research Annual Forecast for 2006 is available at no cost by visiting http://www.knight.com/equitymarkets/research.asp.  For additional information about Knight Research, please contact Andee Hidalgo, Research Sales, at 201-356-1751 or .  Knight Research is part of Knight Equity Markets, L.P.

About Knight

Knight is a leading provider of comprehensive trade execution and asset management services.  Our Equity Markets business offers institutions and broker-dealers high quality trade execution and capital commitment across the depth and breadth of the equity market.  Our Asset Management business, Deephaven Capital Management, is a multi-strategy investment manager focused on delivering risk-adjusted returns with low volatility for institutions and high net worth individuals.  Knight strives to be a valued partner by providing superior service and continually enhancing its offering to meet client needs.  More information about Knight can be obtained at http://www.knight.com/.

Certain statements contained herein constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements are based on current expectations, estimates and projections about the Company's industry, management's beliefs and certain assumptions made by management.  Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict.  Since such statements involve risks and uncertainties, the actual results and performance of the Company may turn out to be materially different from the results expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.  Unless otherwise required by law, the Company also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made herein; however, readers should carefully review reports or documents the Company files from time to time with the Securities and Exchange Commission including, without limitation, the risks and uncertainties detailed under the headings "Certain Factors Affecting Results of Operations" and "Risks Affecting our Business" in the Company's Annual Report on Form 10-K. 

DATASOURCE: Knight Capital Group, Inc.



CONTACT:  Margaret Wyrwas, Senior Managing Director, Corporate

Communications & Investor Relations, [phone], , or

Kara Fitzsimmons, Vice President, Corporate Communications, [phone],

, or Greta Morley, Vice President, Marketing

Communications & Public Relations, [phone], , or

Molly McDowell, Analyst, Corporate Communications & Investor Relations,

[phone], , all of Knight Capital Group, Inc.



Web site:  http://www.knight.com/

http://www.knight.com/equitymarkets/research.asp

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