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Daily Newsletter, Wednesday, 04/07/2004

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The Option Investor Newsletter                Wednesday 04-07-2004
Copyright 2004, All rights reserved.                        1 of 2
Redistribution in any form strictly prohibited.


In Section One:

Wrap: Earnings Worries Weigh On Wall Street
Futures Wrap: See Note
Index Trader Wrap: The triple split raising of guidance trade
Traders Corner: Pressing The Reset Button


Posted online for subscribers at http://www.OptionInvestor.com
*******************************************************************
MARKET WRAP  (view in courier font for table alignment)
*******************************************************************
     04-07-2004            High     Low     Volume Advance/Decline
DJIA    10480.15 - 90.66 10569.26 10465.33 1.79 bln   1325/1492
NASDAQ   2050.24 -  9.66  2060.44  2038.74 1.76 bln   1528/1511
S&P 100   557.28 -  4.30   561.58   556.33   Totals   2853/3003
S&P 500  1140.53 -  7.63  1148.16  1138.41
RUS 2000  601.64 +  2.31   603.76   595.22
DJ TRANS 2954.47 - 20.31  2974.53  2933.60
VIX        15.76 +  0.44    16.36    15.34
VXO        15.46 +  0.97    16.01    15.19
VXN        21.99 -  0.24    22.65    21.81
Total Volume 3,964M
Total UpVol  2,217M
Total DnVol  1,684M
52wk Highs     325
52wk Lows       30
TRIN          1.84
PUT/CALL      0.70
*******************************************************************

Earnings Worries Weigh On Wall Street
by James Brown

Major stock indices traded lower on Wednesday due to concerns
that Q1 earnings may not meet expectations.  An earnings miss
from Dow component Alcoa (AA) last night and two high-profile
earnings warnings from tech stocks (Nokia and Seagate) in the
last two days are testing investors' resolve while giving weak-
willed traders an excuse to take profits.  Rising tensions in
Iraq with the heaviest fighting since the end of the war were
also weighing on Wall Street.

Global stocks markets were mixed and many trended lower but
losses were relatively mild.  The Japanese NIKKEI lost 60 points
but still managed to close over the 12,000 mark, a level it
achieved yesterday.  The Chinese Hang Seng added 33 points to
close at 12,920.  European stocks were generally lower with the
German DAX down 21 to 4001, the French CAC down 11 to 3734 and
the British FTSE down 4 to 4468.  The dollar was also weaker and
that helped a $3.80 rally in gold to $423.70 an ounce.  Crude oil
futures also turned in a big day adding $1.18 (3.4%) to $36.15 a
barrel.

U.S. markets opened the day in the red and sank for the first 90
minutes of trading as investors reacted to the Alcoa earnings
news and the Seagate earnings warning.  Alcoa was a major drag on
the Dow with a 5% loss to $34.65 after missing analyst estimates
by 2 cents despite beating the revenue estimates.  The good news
was that rising aluminum prices should boost their second quarter
numbers but traders sold the news anyway.  Seagate (STX) gapped
lower to open down 16% but rebounded almost the entire session to
end at $14.98 (only down 3.91%).  Their earnings warning last
night sparked a round of profit taking across the tech sector but
like STX most stocks pared their losses by the close.  If you
take a moment to look at the intraday charts on the Industrials,
S*P 500 and the NASDAQ you'll see that all three traded a good
chunk of their day in a very narrow range before spiking higher
in the last hour only to fade again.  There was speculation that
stocks were rebounding higher on news that Secretary of Defense
Donald Rumsfeld would hold a 3:30 PM afternoon press conference.
When that press conference failed to deliver any good news on the
situation in Iraq the markets faded again.

Chart of the Dow Industrials:



Chart of the NASDAQ Composite:



Chart of the S&P 500 Index:




There were a few economic reports out this morning but nothing
market moving.  Influencing the already weak mortgage lenders was
the Mortgage Bankers Association of America survey of weekly loan
applications.  This weekly survey dropped 7.2% due to a 15%
plunge in refinancing applications, which really isn't that
surprising since the rates on a 30-year fixed mortgage jumped
from 5.49% to 5.75% last week.  The two larger reports were the
consumer credit numbers and the import/export prices.  The
Federal Reserve said that consumer credit jumped $4.2 billion in
February to $2.02 trillion but this was below economists'
expectations for a $7.4 billion gain.  March's import prices
climbed 0.9% but if you exclude oil imports the jump was only
0.2%.  This marked the fifth consecutive gain for import prices.
The Labor Department reported that export prices also rose 0.9%
in March.

Aside from the early morning weakness it turned out to be a slow
day.  Volume was light and will get even lighter tomorrow as more
traders leave early to take advantage of the three-day weekend.
Market internals were mixed.  Advancing stocks fell behind
decliners 13 to 15 on the NYSE and it was a dead heat at 15 to 15
on the NASDAQ.  Down volume was almost twice up volume on the
NYSE but bulls managed to push ahead on the NASDAQ with up volume
of 880 million versus 791 million in down volume.  Selling was
heaviest in the airlines, cyclicals and retail stocks.  .

Making headlines during the trading session were HPQ, KMG, TASR
and WMT.  Hewlett-Packard (HPQ) won some negative comments from
Prudential who reduced their earnings estimates and lowered their
price target a dollar to $25 based on weakness in the computer
market.  Kerr-McGee (KMG) made headlines when it announced the
acquisition of Westport Resources (WRC) for $2.5 billion in
stock.  TASER Intl (TASR) can't seem to help but make headlines
as the stock soared another 6.27% and breached the $100 level
after announcing another 2:1 split yesterday.  TASR closed at
$98.04.  Meanwhile Wal-Mart (WMT) slipped just over a dollar to
$57.98 after citizens in Inglewood, CA voted down WMT's proposal
to build one of their mega-sized supercenters in their town.

After hours was when the real excitement began.  A handful of
high-profile earnings reports all beat estimates and in the
euphoria we had three new 2-for-1 split announcements.  Starting
the earnings parade this evening was biotech firm Genentech
(DNA).  Second only to Amgen in the biotech world, DNA reported
earnings of 38 cents per share (ex-items) versus estimates of 32
cents.  Revenues soared 30% to $975.1 million and profits were
boosted by strong sales of its Avastin drug.  Its board also
declared a 2-for-1 stock split that is subject to shareholder
approval at their April 16th annual shareholder meeting.

This news was followed by earnings from Research In Motion
(RIMM).  The company reported that demand for its BlackBerry
wireless handhelds sent sales soaring.  Revenues jumped almost
37% to $210.6 million, which was above consensus estimates.  Net
income, accounting for its litigation provision and tax recovery,
hit 56 cents a share surpassing analyst expectations by 6 cents.
RIMM's management also raised their estimates on the next
quarter.  On top of it all they announced another 2-for-1 split
payable in June.  In spite of all this good news traders chose to
hit the sell button and RIMM was trading lower after hours.

The real after-hours headliner was Internet giant Yahoo! Inc.
(YHOO).  Analysts were expecting YHOO's earnings to hit 11 cents
a share, up from 8 cents a year ago.  YHOO reported a headline
number of 14 cents but looking deeper net income was closer to 13
cents or $101.2 million for the quarter.  This is a 116%
improvement over last year's profit number.  Furthermore YHOO
raised its 2004 profit estimates from $420-480 million to $575-
625 million while bumping its yearly sales estimates from $2.12-
2.25 billion to more than $2.41 billion.  The icing on the cake
was a 2-for-1 stock split announcement payable on May 11th.

This trio of positive earnings announcements should be more than
enough to juice the markets into a pre-holiday rally.  Yet if
that wasn't enough DELL jumped on the bandwagon and raised its
revenue numbers after the bell tonight too.  The No 2 computer
maker upped its quarterly revenue estimates from $11.2 billion to
$11.4 billion while leaving estimates at 28 cents per share.  The
Stock Traders Almanac says that the Thursday before Good Friday
has been up five years in a row.  With this sort of positive
earnings news I think odds are good that we'll see the trend hit
six years in a row.

I believe that tonight's positive earnings news should wash away
any bitter aftertaste left by the Alcoa miss and the Nokia and
Seagate earnings warning.  Our only worries now should be a
disastrous earnings miss Thursday morning from General Electric
but I don't believe that's going to happen with the U.S. economy
doing so well.  We'll also see earnings from Abbott Labs (ABT),
Rite Aid (RAD) and SunTrust Banks (STI) tomorrow morning.

Before I close remember that volume should be very light tomorrow
ahead of the market holiday on Friday.  Extremely light volume
tends to exaggerate moves both directions.  While I expect the
market to be up tomorrow the rising tensions in Iraq have caught
the market's attention.  The larger issue is how America
perceives the conflict and how it affects President Bush's
reelection.  However, the specter of a long weekend (and the
Easter holiday weekend at that) could curb investors' enthusiasm
to hold stocks while we battle Muslim extremists half a world
away.  This could set us up for a strong opening tomorrow morning
only to see it fade later in the session.  More importantly let's
keep our men and women in uniform in our prayers!


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

Futures wrap is not emailed due to the excessive number of charts.
It may be read on the website at this address.
http://www.OptionInvestor.com/indexes/futureswrap.asp


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

The triple split raising of guidance trade

Announced 2-for-1 stock splits from Research in Motion
(NASDAQ:RIMM) $107.98 -1.63%, Yahoo! Inc. (NASDAQ:YHOO) $48.35
-0.86% and Genentech (NYSE:DNA) $108.45 after this evenings
quarterly earnings reports, along with Dell Computer
(NASDAQ:DELL) $34.76 +0.20% will be tomorrow morning's headlines
from tonight, where along with retailers reporting their monthly
same store sales figures, tomorrow's session could get wild.

Aside from Research in Motion (NASDAQ:RIMM) $107.98 -1.63, which
slipped to $106.48 in tonight's extended session, upbeat earnings
from Yahoo! (YHOO), Genentech (DNA) and the raising of revenue
guidance from Dell (DELL) has already painted a positive picture
for tomorrow's open, where the NASDAQ-100 Tracker (AMEX:QQQ)
$36.94 -0.10% which finished down $0.04 on the regular session,
ticks higher at $37.27 in extended hours.

After-hours trade found Yahoo! (YHOO) gaining 9.9% to $53.14,
Genentech (NDA) rising 2.9% to $11.60, and Dell (DELL) gaining
2.7% to $35.78.

Dell's raising of revenue guidance had the Semiconductor HOLDRs
(AMEX:SMH) $40.87 -0.26% gaining $0.48, or 1.17% in extended
hours, where computer chip-giant Intel (NASDAQ:INTC) $27.62
-2.29% recouped the bulk of its intra-day losses, rising 1.9% to
$28.16 on thoughts that Dells raising of revenue guidance shows
demand for computer/server chips remains strong.

Market Snapshot / Internals - 04/07/04 Close



The small cap Russell 2000 Index ($RUT.X) was the only major
average to finish with a gain, and just as I had thought the
small caps were going to take a rest as they slipped back below
600 at the opening, it was the small-caps that showed greatest
resilience from the mid-point of today's session.

Whether it was the WEEKLY Pivot or 500.00, or those in the know
regarding Dell's pending news, the Semiconductor Index (SOX.X)
507.22 -0.17% held the 500 level, keeping thought alive there may
still be some legs to the bull's recent rebound for technology,
despite some negative earnings guidance from Nokia (NYSE:NOK)
$16.92 -1.68% and Seagate Technology (NYSE:STK) $14.98 -3.91%.

Pivot Analysis Matrix -



In order to try and save time and get the major indices covered,
I'm trying something a little different in the Pivot Matrix (not
sure how much time it will save), where I'm coloring correlative
levels in BLACK (I usually box each one, which takes more time).
Those levels UNDERLINED that are in BLACK, are levels that are
correlative, but have also witnessed TRADE this week, or this
MONTH.

For example.... The Semiconductor Index (SOX.X) WEEKLY Pivot of
501.85 saw trade today (underlined) but is also correlative
support with tomorrow's DAILY S1.  Both the NDX/QQQ MONTHLY R1's
have already seen trade this MONTH, and are correlative
resistance points with tomorrow's DAILY R2's.

I get the feeling, based on tonight's after-hours trade, that
this may have been a pre-determined fate ahead of tonight's
after-hours news.

Retail HOLDRs (AMEX:RTH) - WEEKLY Intervals



Two views on the retailers have had analysts saying retail should
show positive trends this month, but summer weather finds
consumers outdoors recreating.  Bull's say retail should benefit
from increasing consumer confidence with economy starting to
generate jobs.

Semiconductor Index (SOX.X) - Daily Intervals



Two "chip-related" earnings warnings from Nokia (NOK) and now
Seagate Technology (STX) have had the SOX.X backing off Monday's
highs, but for any number of reasons, 500 held support, and
Dell's upbeat guidance now gives the sector a near-term bullish
catalyst.

Dorsey/Wright's Semiconductor Bullish % (BPSEMI) reversed up to
"bear correction" status at 42% on Friday (nonfarm payroll data)
and after seeing the rise in the QQQ after its sector bullish %
($BPNDX) reversed up to "bear correction" status, some of today's
buying back near 500 may well have been some bearish short-
covering.

NASDAQ-100 Tracking Stock (QQQ) - Daily Intervals



In today's 03:15 PM EST update, I made note that RF Micro Devices
(NASDAQ:RFMD) $8.71 +5.32% CFO reaffirmed the company's prior
guidance, where the CFO stated that RFMD's business hasn't
slowed.  That news hit the wires at about 02:25 PM EST, and there
was a somewhat notable bid that came into the QQQ.

However, there's something that I can't explain as it relates to
any positive afternoon news, where MANY stocks, when I look at
them, from all types of sectors, all showed what looks to be
computer buying just before 03:00 PM EST.

The only news that might explain the activity is that earlier in
the day, there was reports that a box was found in the Atlanta
Airport, and at 03:00 PM EST, news had it being a non-event.

Heck!  I was so busy today, I didn't even know there was a
suspicious package found at Atlanta's airport, and I'm not sure
if it would have impacted any of my trade decisions today.

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



When both the SPX and OEX broke back under their respective
WEEKLY 38.2% retracement, aside from the SOX.X hovering around
its WEEKLY Pivot, I thought for sure we were headed lower than
the 7.6 points shown by the close.

With that said, Linda discusses a Japanese Candlestick formation
she is familiar with.

Market Monitor (04/07/04) - Linda Piazza (Candlestick analysis)



Oh heck!  Here's the OEX chart where I've turned on my
Candlesticks.  It's all "Japanese to me," but here's the OEX
chart.

S&P 100 Index Chart - Daily Interval



I know that red means down and today's close was below
yesterday's close.

Dow Industrials (INDU) Chart - Daily Intervals



If Linda's on to something with those Candlesticks, then I can
perhaps make the tie that if the bearish "Three Inside Down
Bearish" on the OEX is going to play out, then the INDU will most
likely stay pegged below its WEKLY R1 and downward trend.

With 28 of the 30 components trading negative by their close, the
INDU seemed to trade like it saw three bears.

Jeff Bailey


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TRADERS CORNER
**************

Pressing The Reset Button
By Mark Phillips
mphillips@OptionInvestor.com

Every successful trader has slumps or dry spells when for some
unknown reason, what was working before has somehow ceased to
work.  It might be as simple as a subtle change in the way trades
are being placed to something more significant like a technical
tool losing its efficacy.  Of course, lurking in the background is
the constant possibility that the nature of the market (or a set
of stocks) has changed significantly so as to render the chosen
trading style ineffective.

I have yet to encounter a trader that hasn't at some point in
their career confronted this dynamic and to a person, every one
that remained a long-term successful trader has had to step back,
re-evaluate and retool before moving forward.  Our discussion
today applies equally well to the seasoned trader that is having a
rough patch and to the new trader that is just trying to hit
his/her stride in this very dynamic profession.

No matter how accomplished any of us are at our chosen profession,
in this arena we will all reach a point where we have made a
series of poor trades.  Human nature compels us to try to "win it
back", which frequently goads us into bending or breaking our
money management rules, and then we are dead set on a course
towards financial destruction.  Anyone else ever been there?  Or
is it just me?

I've written about this topic in the past, but I've recently been
getting an influx of email questions from traders that are either
new to the market or are trying to make a transition from self-
directed investing to trading.  What is showing up in these emails
with increasing frequency is a frustration with being unable to
get things working right.  There is any number of possible root
causes for each trader's lack of early success, but fortunately we
don't have to address the actual cause in order to solve the
problem.

I like to think of my approach to fixing what is broken in terms
of a video game.  Say you're playing your favorite game and going
for a new high score. After moving halfway through the first
level, you note that you've made several mistakes and missed out
on a number of key scoring opportunities.  What do you do?  I
don't know about you, but I hit the reset button and begin again.
We're going to take the same approach with our method of trading -
- we need to hit the reset button and begin again.  I know I have
readers that are already clicking to the next article because they
don't think they need a "head check" or are convinced that
whatever adverse patch of trading comes along, they can just power
through.  That may be true and I certainly won't dispute it.  Our
discussion today is intended for those traders that are frustrated
with their current results and searching for a plan of action that
can put them back on the path to profits.

The prescription I'll lay out isn't easy and it isn't quick.  On
the other hand, it isn't anything fancy or esoteric either.  It is
made up of many little steps that many of us already know, but
somehow we forget about them when we are in the midst of a losing
streak. But I know it works because I have employed it myself when
profitable trading seemed as far away as the planet Pluto.  If a
workable plan that can return you to success in the trading
trenches sounds like the right course of action, then I invite you
to join me for what I hope will be both an educational and helpful
journey.

Please understand that if you are going to become a consistently
profitable trader, you absolutely WILL hit rough patches and
question whether you can ever be a successful trader or return to
the success of the past.  It is part of the process.  I don't
believe that we can learn the hard lessons that this business
forces upon us without facing frustration, self-doubt and despair.
It is different for everyone, but the same process of recovery
(with minor modifications) can work for just about any trader with
a sufficient desire to succeed.

That's really what it comes down to is desire, in my opinion.  Not
a desire to make buckets of money, as that is putting the cart
before the horse.  No, what we need a burning desire for is to
gain an understanding of how the markets move and gyrate and how
we can competently read them.  Once we achieve that goal, the
making money part will follow in due course.  To learn what each
of us need to in order to be successful, we must remove ourselves
from the emotional Greed/Fear roller-coaster and turn the learning
process into an unemotional one.  Then we can truly learn and
improve.

Before I delve into the recovery path that I've used in the past,
I want to recommend that you take a short trip over to the
Trader's Corner archives first.  My good friend, Buzz Lynn, wrote
a great article on the subject a couple years back that describes
many of the steps that are necessary to improve in ANY endeavor,
and I highly recommend it!  Here's the direct link to the article
entitled Slump Busting.

http://members.OptionInvestor.com/itrader/archive/traderscorner/020701_1.asp

With that long preamble (we're already halfway through the second
page!), you'd think that I would have a long and complex solution
to apply.  Sorry to disappoint you, but it is really just a large
dose of discipline and common sense.  Unfortunately common sense
becomes exceedingly rare when we are not trading well and we "have
to" make $xxxx by the end of the month.  So here goes!

1. Shut down your broker window and focus ONLY on paper trading.
We have got to remove ourselves from the environment where our
trading decisions have the ability to make or lose money.  That is
keeping us balled up in an emotional wreck and having a
devastating effect on our trading decisions.  If you think you
can't afford to take several weeks off from live trading because
you have to make a certain amount of money by a certain point in
time (for whatever reason), then we've hit on one of the key
problems that you must resolve.  By attaching a schedule to your
trading, you're introducing much more emotional pressure into the
game and I guarantee it will continue to have a very damaging
effect on your trading.  You can either continue to bang your head
against the wall, or accept reality and step away, giving yourself
time to learn, reflect and improve.  Trust me when I say this
process if FAR CHEAPER than the price that will be paid by
continuing to trade while hoping that "things will get better
soon".

2. Spend as much time as necessary to decide HOW you will trade.
Will you focus on equities or indices?  What will be your
timeframe for trading?  Day-trades, Swing Trades or Position
Trades?  What tools will you use to initiate and exit trades?
Oscillators, chart patterns, volume-based tools, or a combination
of all three?  Maybe you have an entirely different approach that
you want to employ -- that's great!  This is the time where you
need to decide what it will be.  I highly recommend spending some
time in this educational phase reading new material on the subject
of trading.  It doesn't matter if it focuses on Technical or
Fundamental analysis or on the psychology of trading.  The point
is to expand your mind and give your brain new ideas on which it
can feed and grow.  If you think I'm telling you that you need a
written plan for your trading business, you're EXACTLY correct.
It may be simple and fit on one page of paper or it may be 30
pages long, annotated with lots of graphical examples.  It doesn't
matter what form it takes, so long as it accurately describes the
way you will run your trading and is easy for you to adhere to.

3. Now that we have a methodology in place, we need to search for
trades that fit our parameters and start placing them ON PAPER.
Keep a written log of every paper trade, recording the specifics
of WHY you got in and WHY you got out.  Record as much information
as necessary to justify to yourself why you would want to be in
that trade.  And don't manage your trades like they are just
fictional trades.  You MUST manage each hypothetical trade as
though your ENTIRE ACCOUNT is at risk in each and every trade.
Even better than paper trading is the use of a trading simulator,
as it more closely approximates the process of entering and
exiting trades in real time.  There are numerous online resources
for trading simulators for a multitude of different trading
vehicles.  In fact some brokers even provide trading simulators
for their clients.  I strongly encourage you to get one set up to
assist in the testing phase of your recovery back to profitable
trading.

4. Develop a money management system that works for you.  This
should define how much you are willing to risk in any given trade.
Learn to see trade setups where you can quantify risk and reward
before entering the trade, and stop losses are a must!  The best
tool I have ever found for quantifying risk and reward is Point
and Figure charts.

5. Continue to refine your strategy by evaluating your results of
EACH AND EVERY trade, learning from both the successful and
unsuccessful ones.  Explain your refined strategy to your non-
trader spouse or friend who is willing to listen.  If they can
understand your strategy as you explain it, then it is very likely
you have a workable strategy.  When you are satisfied with the
simplicity of your strategy and you can see it paying off in an
acceptable percentage of winning trades, then it is time to start
placing SMALL live trades.

6. You'll know you are ready to start placing small trades when
you can no longer stand to see all the money go by that you would
have made if your paper trades were real trades.  But even now, we
need to proceed cautiously.  For the first couple months, keep
your position size no greater than half of what you would normally
be willing to risk.  And make sure to have no more than 3 trades
open at any point in time.  We are still in repair mode, and need
to focus on the process, rather than the profits.  Continue
keeping a trading journal, recording all the important factors of
each and every trade along with any pertinent broad market
observations.  Apply the lessons learned to fine-tune your trading
strategy and in time you'll know you are back on the road to
trading success.

One final note on the trading plan and the trade journal.  These
two devices are not something we discard once our trading is
proceeding well again.  To the contrary, they need to become a
permanent part of our trading discipline.  Let's face it, we're
endeavoring to make money from our trading efforts and that desire
should mean that we approach it like a business.  Would you show
up to an important meeting without reviewing the relevant
documents beforehand?  Of course not!  Likewise, we shouldn't log
on to our broker window without a defined plan of action, backed
up by our written trading plan.  We should think of our trade
journal as the meeting minutes -- they are absolutely essential
whenever we need to look back and determine what went right and
what went wrong.  I review and update (if necessary) my business
plan at the start of each calendar year and review my trade
journal on a weekly basis.  Certainly it takes time, but the
dividends it pays make the effort more than worthwhile.

I hope that helps!

Mark


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The Option Investor Newsletter                Wednesday 04-07-2004
Copyright 2004, All rights reserved.                        2 of 2
Redistribution in any form strictly prohibited.


In Section Two:

Stop Loss Updates: None
Dropped Calls: MGG
Dropped Puts: None
Watch List: Tech, Music and more Tech


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Auto-Trade ket Monitor Signals
Personal Service and Education


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STOP-LOSS UPDATES
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None


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

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Brokerage Group, addressing the demand for personalized,
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and Alan Knuckman specialize in live assistance of stock*,
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**********
Watch List
**********

Tech, Music and more Tech

___________________________________________________________________

How to use this watch list:
  Readers can use the candidates below as a springboard for their
  own research.  Many are in the process of breaking support or
  resistance or in the process of starting new trends or
  extending old ones.  With your own due diligence these could be
  strong potential plays.
___________________________________________________________________


CDW Corp - CDWC - close: 69.13 change: -0.08

WHAT TO WATCH: CDWC has been consolidating sideways the last
couple of days but remains in its short-term bullish trend.
Traders can look for a breakout over $70.00 and target a move
toward its highs near $75.00.  However, it may be prudent to wait
until after CDWC's earnings announcement on April 15th. Should
earnings prove disappointing bears can look for a breakdown under
its 100-dma, which has held up as support multiple times in the
past.  A good bearish target would be the 200-dma near $60.

Chart=


---

Harman Intl Industries - HAR - close: 82.91 change: +0.76

WHAT TO WATCH: HAR is once again showing some leadership with
another new all-time high.  The move over $80 looks convincing
but if we see a dip entries near $80 would be preferred.  The
stock is known to run so bulls can probably target the $90 level.
Look for earnings around April 28th.

Chart=


---

Silicon Labs - SLAB - close: 57.77 change: +0.56

WHAT TO WATCH: The recent low in March was a perfect bounce off
its P&F support.  Now SLAB is charging higher toward resistance
at the $60 level.  It also happens to be breaking out of what
appears to be a bull flag pattern.  Day traders can target a move
to $60.  We'd probably suggest normal traders wait for the
breakout over $60.00.  Earnings should be near April 26th.

Chart=


---

Infosys Technologies - INFY - close: 83.27 change: -2.29

WHAT TO WATCH: There were some comments out today that the Board
of INFY was considering a stock split.  Its last stock split was
February 15, 2000.  Considering the positive earnings news after
the bell from YHOO, RIMM and DNA we could see investors jumping
back into tech stocks.  Consider a move above $85 as a potential
entry for a run toward $90.00.

Chart=



-----------------------------------
RADAR SCREEN - more stocks to watch
-----------------------------------

UTX $90.19 +0.44 - News that UTX lost the bid to build the new
Boeing Dreamliner engines did not stop shares from breaking above
the $90 mark.  Now bulls just need to see it close above the 50-
dma.

AIG $76.25 +0.43 - AIG, soon to be a new Dow component, broke out
above resistance at $76 on very strong volume today.

PD $80.92 -2.33 - Uh-oh.  PD is rolling over again with a new
lower high.  If it breaks the $80 mark traders could probably
target the $75 level.


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