Option Investor
Newsletter

Daily Newsletter, Monday, 02/09/2004

HAVING TROUBLE PRINTING?
Printer friendly version
The Option Investor Newsletter                   Monday 02-09-2004
Copyright 2004, All rights reserved.                        1 of 2
Redistribution in any form strictly prohibited.


In Section One:

Wrap: Stocks Drift Mildly Lower
Futures Wrap: Dead Calm
Index Trader Wrap: Back and forth


Posted online for subscribers at http://www.OptionInvestor.com
*******************************************************************
MARKET WRAP  (view in courier font for table alignment)
*******************************************************************
     02-09-2004            High     Low     Volume Advance/Decline
DJIA    10579.03 - 14.00 10618.51 10564.44 1.59 bln   1567/1288
NASDAQ   2060.57 -  3.44  2074.27  2060.44 1.73 bln   1716/1395
S&P 100   563.72 -  2.34   566.53   563.26   Totals   3283/2683
S&P 500  1139.81 -  2.95  1144.46  1139.21
RUS 2000  585.49 +  1.42   588.03   583.58
DJ TRANS 2903.66 +  9.30  2913.51  2891.29
VIX        16.39 +  0.39    16.82    16.12
VXO        15.77 -  0.21    16.47    15.65
VXN        25.21 +  0.54    25.87    25.20
Total Volume 3,647M
Total UpVol  1,806M
Total DnVol  1,794M
52wk Highs     579
52wk Lows       11
TRIN          1.16
PUT/CALL      0.71
*******************************************************************

Stocks Drift Mildly Lower
by James Brown

Monday turned out to be a session of mild profit taking after
Friday's big rally.  The earnings parade is starting to dwindle
and this week's economic reports are due out on Thursday and
Friday.  This doesn't give investors much news to trade on and
many believe the markets will churn sideways ahead of Greenspan's
appearances before congress this week.  There was a $4 billion
technology merger announced but it wasn't enough to inspire a
rally in the NASDAQ.  The tech-heavy index lost less than four
points to close at 2060.  The S&P 500 lost less than three points
to close at 1139 and the DJIA dropped 14 points to close at
10,579.

Foreign markets were generally positive after the G7 meeting.
Global finance ministers agreed that "excess volatility" was
unhealthy for the markets but their statement did not suggest any
policy intervention and the meeting closed with the current
agreement to keep currency markets "flexible".  Some analysts
interpreted the G7 statement regarding volatility and "disorderly
movement" as "undesirable for market growth" as an okay for Japan
to continue its intervention policies.  Japan sold a record 20
trillion yen last year and another 7 trillion yen just last month
in an effort to slow the yen's rise against the dollar, which
makes Japanese goods more expensive overseas and specifically in
the U.S.  The G7 news to keep currency markets flexible sent the
dollar lower again and the Japanese NIKKEI index lost 58 points
to close at 10,402.  Surprisingly the Chinese Hang Seng rose 267
points to 13,576.  Meanwhile a Dow Jones news story reported that
EU finance ministers met this afternoon in Brussels in talks to
discuss "all possible ways" to slow the euro's rise.  The dollar
bounced higher on this news and the English FTSE, the German DAX
and the French CAC 40 indices all rallied into the close.

Closer to home investors took some money off the table in
semiconductors, drug stocks and airlines.  The networking index
also took a hit after shares of Juniper networks fell 11% today,
but more on that in a bit.  Those stocks that garnered the most
buying interest today were gold & silver, natural gas, oil
services and oil issues.  The XAU rallied on a $3.70 gain in gold
futures.  Natural gas stocks rallied on bump in gas prices and
news that Ferrellgas Partners (FGP) would buy Blue Rhino (RINO)
for $340 million, or $17 per share, in cash.  Oil and oil
services stocks were higher on a 35 cent jump in crude oil to
$32.83 a barrel and positive analyst comments.  Drilling demand
has been growing around the world due to energy demand picking up
as the global economy recovers.  Oil stocks could move again
tomorrow as OPEC ministers meet in Algeria to discuss their
current quotas but most industry watchers expect them to remain
unchanged.  The 11-member cartel controls about 40 percent of the
planet's oil supplies.

U.S. market internals were mixed and reflected the sideways churn
witnessed throughout much of the session.  The NYSE reported
nearly 15 advancing stocks for every 13 decliners.  On the NASDAQ
it was almost the same picture with 17 winners for every 14
losers.  Down volume edged past up volume on the NASDAQ but it
was reversed on the NYSE with up volume outpacing down.  Overall
it was a very low volume session.  Part of the problem was a
technical glitch that prevented trading of stocks and ETFs on the
American Stock Exchange until 12:30 PM ET.

One of the big news stories today was the $4 billion acquisition
announced by Juniper Networks (JNPR) for NetScreen Technologies
(NSCN).  JNPR is offering 1.404 shares of its own stock for each
share of NSCN.  As of Friday's closing price for JNPR that would
be a 57% premium for NSCN.  While many felt that this may be a
high price to pay for NSCN, a company who's products make
networks more secure, most agreed it was a good strategic move to
broaden JNPR's portfolio of products and compete more directly
with its larger rival Cisco Systems (CSCO).  JNPR dropped 11% to
$26.18 on the news and NSCN soared 36% to $35.94.  Shares of CSCO
closed down 7 cents to $24.67.

Monday also brought more M&A news as PeopleSoft's Board of
Directors once again unanimously rejected Oracle's takeover bid,
after ORCL raised their offer to $26 per share last week.
Meanwhile rumors that Vodafone (VOD) was considering a bid for
AT&T Wireless (AWE) was confirmed today.  Cingular Wireless had
been the frontrunner as Wall Street speculates over who might bid
for AWE.  Should VOD end up being high bidder it would have to
sell its 45% stake in Verizon Wireless.

On the earnings front the House that Diller built appears to be
firing on all cylinders.  Better known as InterActive Corp and
previously known as USA Interactive, the growing Internet empire
run by Barry Diller reported earnings this morning that beat Wall
Street's estimates by 6 cents.  IACI owns Hotels.com,
Hotwire.com, Expedia.com, Match.com, uDate.com, LendingTree.com,
the HomeShoppingNetwork (HSN) and Home Shopping Europe as well as
Ticketmaster (Ticketmaser.com).  The fourth quarter numbers
showed net profits at 29 cents a share and revenues soaring
almost 36% to $1.8 billion, both of which surpassed analyst
estimates.  The stock rose 3.4% to $33.04.

In other news U.S. poultry-related stocks traded lower after
Japan, Malaysia, Singapore and S. Korea announced bans on
imported chicken from the U.S. after word spread of a bird flu
outbreak in Delaware.  The state has already killed 12,000
chickens in an effort to stop the spread of the disease and
officials say this strain is different than the avian flu
currently spreading in several Asian countries believed to be
responsible for 18 (human) deaths.  Stocks trading lower on the
news are PPC, SAFM, and TSN.

Two of the Dow's better performers today were Coca-Cola Co (KO)
and Disney (DIS).  Shares of KO hit new 16-month highs, breaking
out over resistance at $51.00, after an analyst with Goldman
Sachs reiterated their "out perform" rating and suggested that
other firms' estimates could be too low.  Goldman's KO analyst
believes that a strong January in Japan could boost KO's up
coming earnings report due out Wednesday, February 11th before
the market open.  Consensus estimates for KO are 44 cents a
share.

Disney also announces earnings on February 11th but reports after
the closing bell.  Yet today's story was not about DIS' earnings
or analyst estimates, currently pegged at 23 cents a share, but
the ongoing feud between Roy Disney and ally Stanley Gold and
their fight with Disney's board and CEO Michael Eisner.  Roy and
Stanley have been turning up the heat on their efforts to get rid
of Esiner in anticipation of the March 3rd annual shareholder
meeting for Disney (the company) where Eisner and three other
board members are expected to be reelected.  In its defense the
Board of Directors sent a letter to shareholders defending Eisner
and to "set the record straight".  Both Roy Disney and Stanley
Gold are former board members of DIS and the letter states that
both of them "... fail to tell you they voted to approve, and in
some cases championed, the very business decisions they now
condemn."  One agency reports that the letter to shareholders
states the board's belief that DIS' earnings should grow 30
percent in 2004.  Credit Suisse First Boston would agree that
conditions are bullish for DIS and one of its analyst suggest
that DIS could trade above the $30 level by the end of the year.
In unrelated news DIS announced a deal with Microsoft (MSFT) to
deliver digital content to consumers' homes and portable media
players.  Shares of DIS closed up 1.79% to $23.77.

Without any immediate economic reports and investors' tendency to
sit on their hands before any Greenspan meeting we're going to
see a lot more company-specific movement and probably less market
movement.  Tomorrow we'll hear earnings reports from Viacom Inc
(VIA) and the Marriott (HMT) before the opening bell.  This week
also brings us earnings from Dell (DELL) who is expected to
announce after the closing bell on Thursday.  In the meantime
brush up on your Greenspeak for Alan's first of two congressional
appearances is Wednesday.


************
FUTURES WRAP
************

Dead Calm
Jonathan Levinson

The US Dollar Index bounced off its overnight lows in a gentle
slope, and "gentle" proved to be the rule for the day in most
markets.  It was generally a very boring day in which treasuries,
metals and the CRB advanced, while equities traded both sides of
unchanged and finished nearly flat.


Daily Pivots (generated with a pivot algorithm and unverified):



Note regarding pivot matrix:  The support, pivot and resistance
levels above are derived from the high, low and closing price
levels by a simple mathematical formula.  They are not intended
to be predictive of market turning points or to serve as targets,
but rather represent the range retracement levels as generated by
the pivot algorithm.  Do not think of them as market "calls"
or predictions.  Like any technically-derived indicator or price
level, the pivot matrix values should be regarded as decision
points at which to evaluate current market conditions.  Visit us
in the Futures Monitor for our realtime views of the various
markets covered here.

Chart of the US Dollar Index


The US Dollar Index gapped up to its session high on Sunday night
following a weekend's worth of G7-related currency talk, and
headed down to its session lows at 4AM, followed by a drift to a
lower high at 86.15 and a subsequent correction to the 86 level.
The index finished slightly below Friday's close. The session
printed what appears as a cup and handle bottom, but no breakout
was evident as of this writing.  A move of 86.20 would confirm
this bullish formation.  The day coincided with buying in
treasuries, equities and metals for most of the session, with the
CRB advancing .71 to close at 261.78, led by silver, corn and
heating oil futures.


Daily chart of April gold


April gold futures were strong throughout the session, touching a
high of 407.90 and a higher low at 404.80.  The daily cycle
upphase advanced but we have yet to see the confirming cross on
the Macd.  408 is former support and held today as resistance,
and a failure below that level would imply a possible head and
shoulders top forming, with the right shoulder being printed now.
I don't think that that's the case, but we need to be aware of it.
With the long term daily trendline unbroken and the bounce
lined up with a stochastic bottom, the bullish picture is looking
good.  402 is former resistance should hold as support, below
which 397 is rising trendline support.  For the day, gold added
2.70 or .67% to finish at 407.50, March silver added .155 or
2.47% to close at 6.435.  The HUI closed up 1.95% at 234.19, and
the XAU gained 1.03% to close at 101.94.


Daily chart of the ten year note yield


The Fed was generous today, replacing an expiring 1.5B weekend
repo with a 6B expiring repo, and then topping it off with a
1.31B coupon pass for a net addition of 5.81B in liquidity for
the day.  Treasury bonds were slightly stronger,  with the ten
year note yield (TNX) lower by 2.4 bps or .59% for the day,
closing at 4.065%.  4.09% remains fib resistance for the TNX,
with next major support below at 3.92%.


Daily NQ candles


The NQ finished flat at 1494.50 for the day, with a low of
1491.50 and a high of 1505.  It was a slow day, with only
immediate support and resistance levels tested.  The test of 1505
saw the daily cycle oscillators paused in their downphase and
trying for a preliminary buy signal, which a move above 1510
would likely have generated.  The failure and subsequent break of
the morning lows in the afternoon restored the downphase and
converted the breakout attempt into a gravestone doji.  Bears are
far from out of the woods, but a break of current support and a
move back down to 1482 would set up Friday's and today's strength
as a successful distribution top.  A break of 1460 would cancel
the potential cycle bottom from Friday.


30 minute 20 day chart of the NQ


The 30 minute cycle whipsawed on the move to the highs and then
resumed its downphase as the afternoon wore on.  For all that,
with a synchronous daily and 30 minute cycle downphase, the bears
are getting shockingly little bang for their collective buck.
We've seen 30 minute cycle downphases go nowhere until the final
blast down that shreds up lower support, but today's tape made
that a difficult outcome to imagine.  The fact is that the NQ
behaved today like an index under either accumulation or
distribution, and we won't know until either the upper or lower
ends of today's well-defined range get broken.  A bounce from any
level north of 1472 will look very much like the right shoulder
of a reverse head and shoulders bottom, neckline either at 1502
or 1510.  Below 1480, the symmetry of the pattern will be
violated, and we'll look for next support at 1476, followed by
1460.  The ongoing 30 minute cycle downphase suggests further
selling tomorrow morning.


Daily ES candles


ES added 1.25 to close at 1140.25, with a high of 1143.75 and a
low at 1137.75.  As on the NQ, the higher low and higher high
were signs of strength.  It felt like the stage was set for a
monster short squeeze all day, but the inability of the bulls to
mount the requisite charge was surprising.  The daily cycle
downphase weakened but did not abort.  Next support is in the
1130-35 mud-zone, followed by 1128, 1124, 1122, 1118 and 1115.
To the upside, 1142-44, followed by 1149 are the levels to watch.
A break above 1144 on a closing basis would end the daily cycle
downphase.


20 day 30 minute chart of the ES


The 30 minute ES broke south out of a bear flag, but saw very
little setting following the initial breakdown.  The narrow range
for most of the day brought Bollinger band support up to the 1138
level that proved to be the intraday bottom to within a quarter
point.  The 30 minute downphase has plenty of room to run, but
bears need to see the 1130-5 confluence zone get taken out to
avoid confirmation of the daily cycle bottom printed on Friday.
A higher low on this key 30 minute cycle would confirm the
bullish interpretation and signal an imminent turn in the daily
cycle oscillators above.


150-tick ES


I've compressed 2 days' worth of ticks to show how dead today's
session actually was.


Daily YM candles


YM added 12 to close at 10572.  Like the ES, it printed a tight
range atop Friday's large bullish engulfing candle.  It's either
distribution or consolidation, but unless Friday's low gets
revisited soon, it will look like Friday was the low of the daily
cycle downphase.


20 day 30 minute chart of the YM



The lack of movement in the US Dollar Index and equities makes it
difficult to add much to our picture of the intermarket
relationships, but Friday's action was so clear as to leave little
room for doubt.  Until further notice, the Dollar should continue
to trade inversely to dollar-denominated assets.  Whether that
means that the potentially bullish cup and handle formation on the
10 minute dollar chart posted throughout the day in the Futures
Monitor will line up with bear flag failures on the 30 minute
equity charts is anyone's guess, but that's what the current
relationships suggest.  At this point, I think we'd all be happy
just to see some movement tomorrow.  See you there.


********************
INDEX TRADER SUMMARY
********************

Back and forth

After posting gains last week, the major indices started this
week off with fractional losses, with some traders certain
today's choppy session was for the birds.

A case of Bird Flu was found in a flock of Delaware-raised
chickens over the weekend, where 12,000 of the chickens were
destroyed on Saturday in an attempt to prevent the spread of
avian flu.  While just two of the chickens were reported to have
been tested positive for the virulent H7 virus, a strain of the
virus that is different than that which has killed 18 people in
Asia (H5N1), the flock of 12,000 was destroyed has the H7 virus
is deadly for chickens, but does not transmit to humans.

Traders quipped that news of the H7 virus being found in a flock
of Delaware-raised chickens may have been cause for today's
choppy session where poultry gains and losses were found.

While Dow component Coca Cola (NYSE:KO) $52.40 +2.76 popped to a
new 52-week high and lead gains among fellow components, negative
breadth of 18 to 12 had the Dow Industrials (INDU) 10,579.03
finishing down 14 points, as a brief peek back above the 10,600
fizzled.

This weekend's G-7 meeting and December wholesale inventories,
which rose 0.6% while sales gained 1.0% left little impression on
traders, as volume levels at the NYSE and NASDAQ were their
lightest since January 2, 2003.

With little economic data looming, trading could mimic Monday's
for the rest of the week, though something could come out of the
blue to move the markets, such as an unexpected comment from Alan
Greenspan when the Federal Reserve chairman addresses Congress on
the state of the economy Wednesday and Thursday.

Market Snapshot / Internals - 02/09/04 Close



Market breadth at the A/D line was positive throughout today's
trade with the number of new highs at the NYSE and NASDAQ the
best found since January 28th's respective 292 and 225.

At its best levels of the session, the NYSE Composite ($NYA.X)
6,641.81 +0.13% came within 18-points of its January 22nd 52-week
high of 6,680.01, while the also broad NASDAQ Composite (COMPX)
2,060.57 remained well off its January 26th high of 2,153.83.

Pivot Analysis Matrix -



Both the S&P 100 Index (OEX.X) 563.72 -0.41% and S&P Banks Index
(BIX.X) 350.96 -0.42% saw intra-day trade at their WEEKLY Pivot,
where aside from the NDX/QQQ and SOX.X, this WEEK's pivots are
nearly identical to last weeks, as S2s and R2s compress.

The Semiconductor Index (SOX.X) 514.16 -1.01%, which jumped 23
points on Friday, or 4.7% and erased earlier week losses, closed
back under its rounding flat 50-day SMA of 515.06 today, with
KLA-Tencor (NASDAQ:KLAC) $56.24 -2.19% and Broadcom (NASDAQ:BRCM)
$38.81 -2.09% leading the sector's declines.

Japan's Nikkei-225 ($NIKK) - 50-point box



In Wednesday evening's Market Monitor I briefly posted some of
the world's major equity indices' point and figure charts, where
it was notable that Japan's Nikkei-225 ($NIKK) 10,425.77 was
notably weaker than other major indices.  It is often-times noted
that technology stocks here in the U.S. as well as the Nikkei-225
will tend to trade similarly.  I quickly calculated February
MONTHLY Pivot levels for the $NIKK based on January's
high/low/close and would have to deem the 10,300 level as a
rather important near-term level of support, where 10,300 is
correlative with the $NIKK's MONTHLY S2 as well as its current
bearish vertical count of 10,300.

NASDAQ-100 Tracking Stock (QQQ) - Daily Intervals



While I wouldn't say the QQQ and the Nikkei-225 were necessarily
joined at the hip and track each other exactly, the recent highs
on the Nikkei-225 match dates for the QQQ.  While the Nikkei-225
traded its lowest level this year and the Q's have just bounced
from a 2004 low, I'm looking for the $NIKK to hold the 10,300
level, where I think the QQQ provides a good bullish trade setup
should it dip back to $36.75, then see strength back above the
$37.00 level and WEEKLY Pivot.

S&P 500 Index (SPX.X) Chart - Daily Intervals



I see a rather formidable level of support developing at the
1,130.50 level where we find an overlapping MONTHLY Pivot and
WEEKLY S1, where the upper-end of a broken-to-the-upside bullish
resistance trend, which also served support on the recent
pullback provides important near-term support.

With this observation in mind, I also want to take a quick look
at the SPX on a 60-minute chart interval, where I've place
conventional retracement on the SPX from its January 26th closing
high to a 01/29/04 intra-day 60-minute close, where this
retracement ties in with recent trade, but also suggests that
1,130.50 is an important level of near-term support.

S&P 500 Index (SPX.X) Chart - 60-minute intervals



The SPX on a 60-minute interval shows the SPX retraced 61.8% of
its recent decline, where Friday's move above 1,130.38 found a
strong move back higher.  This 1,130.38 level on the above chart
is very correlative with this week's WEEKLY S1 and MONTHLY Pivot,
while the January 26, 2003 closing high is correlative with this
week's WEEKLY R2.  I would certainly have to think that a more
fractional pullback to 1,136.19 and reversal back above today's
high would see a test of of the 1,155.01, a bullish entry back
near 1,130.50, with a stop just under the 01/29/04 low of
1,122.38 provides a good bullish trade setup.

S&P 100 Index (OEX.X) Chart - Daily Intervals



The OEX closed just about in the middle of its recent two-week's
trade, where I'm looking for support to be firming at the 560
level.  A kick much above today's highs should set up a test of
the OEX's recent highs.

Dow Industrials (INDU) Chart - Daily Intervals



While the INDU declined from the 10,700 to 10,440 in recent
weeks, it has allowed bullish resistance, or the upper-end of the
bullish regression channel to move higher.  Support should be
firm at the mid-point of this regression channel and WEEKLY S1 of
10,487.

Jeff Bailey


************************Advertisement*************************

Stock Option and Futures Brokerage

OneStopOption teams the best trading technology with varying
levels of professional assistance at very competitive prices.
Commission costs are comparable to discount brokerage and
tailored to individual customer needs.

The power of one brokerage group with experience and expertise
in the Securities* and Futures Markets offers unprecedented
convenience for traders.

Access To All Futures Markets            Toll Free 888-281-9569
Stock Option Principals

www.OneStopOption.com

**************************************************************


*******************
FREE TRIAL READERS
*******************

If you like the results you have been receiving we
would welcome you as a permanent subscriber.

The monthly subscription price is $49.95. The quarterly
price is $129.95 which is $20 off the monthly rate.

We would like to have you as a subscriber. You may
subscribe at any time but your subscription will not
start until your free trial is over.

To subscribe you may go to our website at

www.OptionInvestor.com

and click on "subscribe" to use our secure credit
card server or you may simply send an email to

 "Contact Support"

with your credit card information,(number, exp date, name)
or you may call us at 303-797-0200 and give us the
information over the phone.

You may also fax the information to: 303-797-1333


**********
DISCLAIMER
**********

Please read our disclaimer at:
http://www.OptionInvestor.com/page/oin/aboutus/disclaimer.html


**************************************************************
ADVERTISING INFORMATION

For more information on advertising in OptionInvestor Newsletter,
or any Premier Investor Network newsletter please contact:

Contact Support
The Option Investor Newsletter                   Monday 02-09-2004
Copyright 2004, All rights reserved.                        2 of 2
Redistribution in any form strictly prohibited.


In Section Two:

Stop Loss Updates: None
Dropped Calls: None
Dropped Puts: None
Watch List: They Did It Again


************************Advertisement*************************

Live Securities Brokerage Service with Licensed Option Principals

OCO Stop & Profit Orders                        OneStopOption
All types of Spreads and Buy Writes             888-281-9569
Auto-Trade Market Monitor Signals
Personal Service and Education


**Services available for Foreign Traders including Canada**

http://www.OneStopOption.com

**************************************************************


*****************
STOP-LOSS UPDATES
*****************

None


*************
DROPPED CALLS
*************

None


************************Advertisement*************************

Full Service Brokers

Man Financial announces the formation of the OneStopOption
Brokerage Group, addressing the demand for personalized,
experienced service for both securities* and futures trading
within the same firm. Licensed Option Principals Andrew Aronson
and Alan Knuckman specialize in live assistance of stock*,
option* and futures traders. The combination of the proven Man
Financial global presence and the convenience of one group for
all trading needs provide customers with the tools needed for
success.

Live Broker and Online Trading Available     888-281-9569

http://www.OneStopOption.com

**************************************************************


************
DROPPED PUTS
************

None


************************Advertisement*************************

Full Service Brokers

Man Financial announces the formation of the OneStopOption
Brokerage Group, addressing the demand for personalized,
experienced service for both securities* and futures trading
within the same firm. Licensed Option Principals Andrew Aronson
and Alan Knuckman specialize in live assistance of stock*,
option* and futures traders. The combination of the proven Man
Financial global presence and the convenience of one group for
all trading needs provide customers with the tools needed for
success.

Live Broker and Online Trading Available     888-281-9569

http://www.OneStopOption.com

**************************************************************


**********
Watch List
**********

They Did It Again

Countrywide Financial - CFC - close: 88.00 change: +2.68

WHAT TO WATCH: After such a strong performance leading up to its
earnings report last month, a bit of post-announcement volatility
was to be expected.  But shares of CFC are on the move higher
again today and look ready to break to new highs.  Use a trigger
above $89 and target an initial move to $95 with the outside
chance for a rally all the way to the century mark.

Chart=


---

Autozone Inc. - AZO - close: 89.80 change: +1.18

WHAT TO WATCH: Shares of AZOP have had a rough couple months
after plunging below $80 in early December.  But the sideways
consolidation is breaking to the upside in a very convincing
manner.  The stock pushed through the 50-dma and 200-dma and is
starting to pick up speed.  With the top of the December gap at
$92 drawing near, chasing the stock higher doesn't have a good
risk reward.  But a pullback and rebound from above the converged
50/200-dmas near $86.50 would make for a great long play,
targeting an eventual move up to the $95-97 area.

Chart=


---

Nucor Corporation - NUE - close: 59.26 change: +0.82

WHAT TO WATCH: Any jitters over NUE's earnings report seem to
have been put to rest with the stock responding strongly over the
past week and breaking out to new yearly highs today.  Once
through the $60 level, NUE looks good to run to the next level of
solid resistance near $65.

Chart=


---

Symantec Corporation - SYMC - close: 40.44 change: +0.48

WHAT TO WATCH: Stubbornly holding near its highs over the past
couple weeks, shares of SYMC look poised to build on the rally
that began in December.  Use a trigger over $41.25 and target a
near-term move to the $45 area.

Chart=


---

===================
On the RADAR Screen
===================

LLY $73.22 - With money flowing back into the defensive Drug
sector, LLY has continued to wedge up near resistance in
preparation for a serious breakout.  A push through $74 will have
the stock trading at new yearly highs and will put the $80
resistance level in play as an upside target.

FD $49.34 - After some recent consolidation, the Retail index
(RLX.X) is threatening to break out over the $390 resistance
level.  At the same time, FD has been chipping away at the $50
resistance level and looks ready to break out.  Wait for a
breakout over $50.60 (the November high) before playing and then
target a move to the $55 level.

AMZN $45.86 - AMZN's post-earnings selloff seems to have
stabilized just above the 200-dma, but that doesn't mean the
bears are done with this Internet stock.  Should price break back
under the 200-dma, AMZN looks like it could easily retest the $40
support level.  Use a trigger of $44, just under last week's
intraday low.


*******************
FREE TRIAL READERS
*******************

If you like the results you have been receiving we
would welcome you as a permanent subscriber.

The monthly subscription price is $49.95. The quarterly
price is $129.95 which is $20 off the monthly rate.

We would like to have you as a subscriber. You may
subscribe at any time but your subscription will not
start until your free trial is over.

To subscribe you may go to our website at

www.OptionInvestor.com

and click on "subscribe" to use our secure credit
card server or you may simply send an email to

 "Contact Support"

with your credit card information,(number, exp date, name)
or you may call us at 303-797-0200 and give us the
information over the phone.

You may also fax the information to: 303-797-1333


**********
DISCLAIMER
**********

Please read our disclaimer at:
http://www.OptionInvestor.com/page/oin/aboutus/disclaimer.html


**************************************************************
ADVERTISING INFORMATION

For more information on advertising in OptionInvestor Newsletter,
or any Premier Investor Network newsletter please contact:

Contact Support

DISCLAIMER

Option Investor Inc is neither a registered Investment Advisor nor a Broker/Dealer. Readers are advised that all information is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor is it to be construed as a recommendation to buy, hold or sell (short or otherwise) any security. All opinions, analyses and information included herein are based on sources believed to be reliable and written in good faith, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. In addition, we do not necessarily update such opinions, analysis or information. Owners, employees and writers may have long or short positions in the securities that are discussed.

Readers are urged to consult with their own independent financial advisors with respect to any investment. All information contained in this report and website should be independently verified.

To ensure you continue to receive email from Option Investor please add "support@optioninvestor.com"

Option Investor Inc
PO Box 630350
Littleton, CO 80163

E-Mail Format Newsletter Archives