Option Investor
Newsletter

Daily Newsletter, Sunday, 04/25/2004

HAVING TROUBLE PRINTING?
Printer friendly version
The Option Investor Newsletter                   Sunday 04-25-2004
Copyright 2004, All rights reserved.                        1 of 5
Redistribution in any form strictly prohibited.

In Section One:

Wrap: Bullish Close
Futures Market: See Note
Index Trader Wrap: TWO THINGS
Editor's Plays: Internet Bubble?
Market Sentiment: Investor Bravado?
Ask the Analyst: Tendency to gravitate toward the pivot (Pivot
    Analysis)
Coming Events: Earnings, Splits, Economic Events


Posted online for subscribers at http://www.OptionInvestor.com
******************************************************************
MARKET WRAP  (view in courier font for table alignment)
******************************************************************
       WE 04-23        WE 04-16        WE 04-09        WE 04-02
DOW    10472.84 + 20.87 10451.9 +  9.94 10442.0 - 28.56 +257.62
Nasdaq  2049.77 + 54.03 1995.74 - 57.12 2052.86 -  4.31 + 97.15
S&P-100  556.80 +  1.86  554.94 -  1.18  556.12 -  1.98 + 14.58
S&P-500 1140.60 +  6.03 1134.57 -  4.76 1139.33 -  2.48 + 33.75
W5000  11150.42 + 72.34 11078.1 - 87.98 11166.1 - 36.36 +362.24
SOX      487.98 +  7.84  480.14 - 31.64  511.78 -  2.08 + 34.61
RUT      590.71 +  7.34  583.37 - 14.51  597.88 -  5.57 + 30.53
TRAN    3001.71 + 62.24 2939.47 + 12.59 2926.88 - 39.78 +130.76
******************************************************************

Bullish Close
by Jim Brown

The markets closed at the high of the day, the day after a
big gain and in front of a weekend. The Dow recovered all
of its losses for the week and gained ground for the second
consecutive week. The Nasdaq recovered 54 of the 57 points
lost the prior week. It was a bullish close on the surface
but the internals painted a slightly less bullish picture.

Dow Chart - Daily


Nasdaq Chart - Daily


Russell 2000 Chart - Daily



The only economic report on Friday was a bullish blowout
with Durable Goods soaring +3.4% in March. This was a major
win for the bulls with the headline number seven times the
consensus estimate of only +0.5%. Not only was March a
strong jump but February was revised up to +3.8% from +2.5%.
The only component losing ground was communications equipment
and that is no surprise to anyone. That component tends to
be highly volatile with monthly swings from +46% to -64% in
just the last five months. Headline orders hit their high
for the year and completely erases any fears that economic
growth may have peaked earlier in the quarter. Demand is
now growing at better than a +10% pace over the year earlier
period. Considering the good March number and the revision
to February this was a very strong report.

The strong Durable Goods rekindled the rumors that we could
see a rate hike in May and bonds sold off once again. The
dollar rose on the economic strength and will eventually
put more pressure on earnings for international companies.

The Fed mounted a solid front with multiple comments from
different Fed heads. Moskow said "it is a question of timing
as to when rates will actually rise". He added that the Fed
has the luxury of being more accommodative in contrast to
previous cycles. Analysts were quick to compare 2004 with
1994 when the Fed raised too quickly and tanked the bond
market. Broaddus also made similar comments suggesting the
Fed was not unduly concerned with inflation. He commented
that jobs were likely holding onto gains and suggested we
would see more gains in the May Jobs report. Broaddus also
said he did not expect strong growth the remainder of the
year but gains in the stock market would help spending.
Fed Vice-Chairman Roger Ferguson said the deficit was not
as troublesome as some recent news articles have suggested.
This was in advance of the G7 meeting and he said the
prospects for the U.S. economy as a result of the deficit
were "not as apocalyptic as the ones you imagine." All of
the commentators echoed the "disinflation risk has passed"
refrain.

Bernanke was the most constrained of the multiple speakers
saying that labor market slack and high productivity growth
would restrain inflation. He said he still felt the recovery
was tentative. "Although the labor market appears to be
sitting up and taking fluids, it has not hopped out of bed
and begun a round of jumping jacks." Bernanke also repeated
the "timing of rate hikes are dependent on the speed of the
recovery" mantra. It almost appears the Fed is not planning
on raising but are planning on a constant verbal onslaught
to make us think they are. If they warn enough they hope
the shock of the actual hike will be minimal because the
market will have already priced it in.

It all boils down to whom do traders believe. Are they going
to believe the Fed has the luxury of waiting or will they
lean in the direction of hike first wait later. I mentioned
on Thursday that Wayne Angel was talking about a 50 point
hike in May. While I don't think there is anybody who
believes that is possible the cloud remains. The May Fed
meeting is only six trading days away and the chance for
a blowout rally before that meeting is slim. Institutions
will want to be cautious just in case.

The fund flows for the week came in at +$3.3B and marked
a strong pattern change for a post tax week. One reader
said a Schwab representative had commented about the strong
cash inflows into brokerage accounts over the last couple
weeks. I am beginning to believe that not only have the
planets aligned in the bulls favor but they have been
super glued in place.

Microsoft gapped open to $27.50 on their strong earning
Thursday night and held that level all day. Bill Gates was
rewarded with a nearly $2B increase in his net worth based
on the number of shares he is currently holding. Not a bad
days work. The real key is what next? Will it continue to
hold this level or shrink back to the $25.50 range it has
traded for the last month? I would be thrilled to see it
fill the gap back to $25.50 so I can buy some. I think the
bad news is mostly over for Microsoft and they will make a
big announcement before the July analyst meeting. It could
be a very large one time dividend or just a highly increased
dividend rate. Either way shareholders should reap a large
benefit. I am betting against any material acquisitions due
to the continued antitrust concerns. Symantec would be the
only high visibility takeover target on my list. They could
buy SYMC and have $40 billion left over and they need a
quality virus solution.

Microsoft may be about to get another windfall from an
unlikely source. Google is expected to announce its long
awaited IPO next Thursday and rumor has it that Microsoft
has been a long time investor in Google. The IPO is expected
to raise over $20 billion and would immediately push
Google ahead of Amazon in market cap. It will also be a
windfall for the two 30 yr old founders of the company.
No financial info is known about Google but analysts now
guess revenue is nearing $1 billion a year. You can see
why YHOO and AMZN are jumping into the search engine
business.

Amazon did not jump into anything except trouble with its
earnings report on Thursday night. The stock sold off on
Friday to the tune of -2.57 but don't fret over the current
holders. That is still above its Wednesday's close. I am
a diehard Amazonian and while I think the concept will
continue to improve I would hesitate to jump into the
stock at this level.

EBAY, the ranking Internet gorilla, gained +8 on Thursday
to a new all time high of $83. It managed to hold most of
that on Friday with a close just over $82. I am also an
avid EBAY trader and while I may not agree with Meg Witman's
estimate of a $1.5 trillion potential market I do think EBAY
will continue to grow. They will see $32 billion in sales
this year according to Meg. I alerted readers to a potential
EBAY entry point back on March 23rd when it touched $65.
I am going to reverse that today with a put recommendation
in my Editors Play. Not because I don't like EBAY but I
think the coming Google IPO could dampen demand for the
current leaders.

Friday was far from a strong day in the markets with the
Dow negative for most of the day. It returned to positive
only in the last 90 min of trading. It only gained +11.64
and MSFT accounted for the majority of that gain. For the
majority of the day the A/D line was negative by nearly
-2000 issues. In the end the Dow did manage to climb ever
closer to the 10500-10550 resistance level. The working
range for April has been 10300-10550 and we are very near
the top of that range.

The Nasdaq rebounded from the drop to 1973 on Wednesday
and traded nearly +75 points above that low at Friday's
close. Tech earnings have been mostly outstanding with
only a few company specific problems. The Nasdaq is also
closing in on the top of its range at 2075.

The index that could cause the most trouble at the open
on Monday is the NDX. It closed at 1496 on Friday with
strong resistance at 1500. A break over 1500 at the open
could set the stage for a decent day but it is strong
resistance.

I was encouraged by the positive close even though the
actual points gained for the day were light. Remember we
had a banner point day on Thursday and following it with
another gain in front of a weekend shows strong underlying
sentiment. I already mentioned the internals were negative
but not enough to keep the indexes from closing positive.
I think this is bullish for Monday and could provide a
strong start for the week.

Earnings have been nothing short of spectacular. According
to First Call 50% of the S&P have reported and 78% beat
estimates, 11% announced inline and 11% missed estimates.
Historically about 58% beat and 20% miss. The Q1 earnings
growth is currently +26% and well over the prior analyst
forecasts. Some analysts suggest the strong surprise is
due to the new financial regulations leading to very
conservative guidance.

Whatever the reason the fact remains that this will be the
strongest quarter of the year. Analysts are raising their
estimates for the rest of the year but they are still in
the low to mid teens. Next year by most accounts is still
expected to be even slower. One way of judging market
direction is by the measurement of small cap earnings
growth. For all of 2004 growth is projected to be 44%.
This drops down to only 14% for all of 2005. Is this
reality or is it the "conservative" viewpoint?

The bottom line is an economy that appears to be suddenly
booming and earnings growth for the first quarter could be
a record. This presents a quandary for investors. Do they
believe the forecasts for slowing earnings growth or the
signs the economy is starting to explode? Are these two
events mutually exclusive or will a potential exploding
economy explode the earnings as well?

This is the decision traders will face next week. Do they
turn cautious with only six days until the Fed meeting or
do they roll the dice and bet against the Fed and buy
stocks. The sell in May and go away crowd must be going
crazy. Had they done that last year they would have lost
out on a strong bull market. Will they miss out on the
same thing this year or does lightning really strike twice.

Last year April 22nd was the breakout day on the Nasdaq
and April 28th on the Dow. We all know what happened and
that memory has got to be weighing on traders consciousness.
They have been told time and again that this is the peak
quarter but memories of past bull markets die hard. Do
analysts really know what is ahead? Just a few weeks ago
First Call was predicting earnings growth for Q1 at 15.9%
with the potential to hit 20%. If they are wrong about the
future quarters then stocks could actually be undervalued.

You know I am just posing those questions for debate today
but I am getting the feeling that investors may not be
willing to give up without a fight. They may be just
stubborn enough to hold on to stocks while hoping for a
repeat of 2003. The next two weeks are going to be crucial
to the markets. Beginning next Thursday we will have seven
days of critical economic reports with a Fed meeting right
in the middle. GDP, ISM, PMI, Factory Orders, Productivity
and Jobs. The question we face is do we want strong economic
growth and the risk of an early rate hike or weak growth
and the risk of lower earnings. I personally will take two
helpings of very strong growth with extra gravy please.
We are going to have the rate hikes eventually so let's
get this ball rolling and tell the earnings analysts get
out their erasers.

Obviously what we think or what we want is immaterial but
how to play it is not. Despite the rebound for the week
we are still range bound. That means as traders we sell
the tops and buy the bottoms until a breakout or breakdown
appears. A breakout for me would be defined as a Nasdaq
over 2150 and the Dow over 10750. Obviously that would be
the extremes and I would start getting excited with a move
over 2100/10550. The real clue would be a Russell over 605.
If fund managers are buying small caps then the stage is
set. A breakdown for me would be a failure of the lows for
the week at 1975/10250. With all the major economic news
ahead, the Fed meeting and 26% of the S&P reporting earnings
over the next week we could see a lot of volatility. Until
we get a breakout or breakdown continue to buy the bottoms
and sell the tops and avoid trading in the middle.

Enter Very Passively, Exit Very Aggressively!

Jim Brown


**************
FUTURES MARKET
**************

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

TWO THINGS
By Leigh Stevens
lstevens@OptionInvestor.com

THE BOTTOM LINE –
It is pretty well impossible to figure out two things here – one
is if the indices in general are going to achieve upside break
outs of their sideways to lower trends; and two, if there is
another down leg coming.  No one can say – well, the pundits have
plenty of opinions – either fundamentally or technically.

Usually, those with a technical bent such as this writer, think
they know what is happening – but hey, we're stymied too!  That
is because the patterns, both with Nasdaq and S&P, form triangles
composed of downward and upsloping trendlines that haven't
resolved themselves by a breakout either way.

Usually, faced with an uncertain picture, I give the benefit of
the doubt to the dominant longer-term trend, which is up. But, it
remains to be seen if the trend can reassert itself anytime soon.

The back and forth movement makes it tough to make money (in long
calls or puts anyway) unless you catch some of these shorter
price swings we're seeing.  Right now, up against the trendlines
– see details further on – I would again favor puts if I had to
pick a side. And, with the market spooked – does this ever
change!? – by the prospect of higher interest rates, well there's
a bear thought for you.

FRIDAY'S TRADING ACTIVITY –

The S&P 500 (SPX) was up a scant tenth of 1 percent at 1,140.60
by the close and a half of a percent for the week. The Dow 30 –
the new rejuvenated Dow average (adding AIG, PFE and VZ this
month) was ahead by about 12 points to 10,472.  Only up .02% for
the week.

The Nasdaq Composite (COMP) was the bigger winner, ahead by
nearly 18 points (+.08%) to 2050.  The tech-heavy Index was up
nearly 3% for the past week.  As noted in the media on Friday,
both Indices are not up on the year.  Don’t spend the money yet
however!

Winners: retailers, semiconductors and software sectors on Friday
led by Microsoft and Intel. Telecom, Internet stocks, airlines
and energy sectors didn't fare so well.

Orders for new durable goods to U.S. factories jumped 3.4 percent
in March, far ahead of the average 1 percent gain expected by the
Street. The strength in the economy suggested by this latest
reading and data met with a good news/bad news response from
traders and investors.  The tug is between the good news of a
strong and strengthening U.S. economy and the negative view that
the Market takes about the prospect this bring for higher
(interest) rates.

TECH HECK –
Microsoft (MSFT) had a big rally, after a positive broker comment
based on MSFT posting of earnings and sales that beat
expectations.  Hey, never count those guys out.

Their revenues jumped 17% on the back of strong PC sales and
broad strength in earnings from its other business groups.  The
analysis I saw was that going into Q4, an outlook for double
digit sales growth based on new products and better IT spending.

Back at the ranch however –
Amazon.com (AMZN) fell nearly 7% at one point on Street concerns
over its future growth prospects – this after Q1 earnings that
were well above expectations. Hey, those analysts don't like to
be WRONG for LONG.

OTHER MARKETS –
The dollar was lifted by the economic data based on just what the
market fears - a rise in interest rates.  The Euro was down 0.6
percent to $1.1838, while Pound slightly to 1.7723. Against the
Japanese yen, the dollar dropped to 108.96 after a move to a new
monthly high of 109.83 on Thursday night – while we were sleeping
the gnomes of Zurich were trading.

The 10-year T Note was off 18/32 to 96 13/32, to yield 4.46%.

MY INDEX OUTLOOKS –

S&P 500 Index (SPX) – Daily chart:
The up and down sloping trendlines form something referred to as
a symmetrical triangle – all it means is that the price action is
typical of a back and forth movement ahead of a next significant
move.  The direction of the move, above or below the trendlines
will then resolve the trend.

Either the S&P is back into its uptrend and goes on to make a new
high or there is a new down leg.  Either way its pretty clear I
think – an upside penetration above the red down arrow (around
1142) AND a move above the cluster of prior highs at 1148-1150.
If that happens upside potential looks to be to 1160 (prior peak)
or to the 1170 at the upper envelope line that has tended to
contain many of the prior rallies.




Conversely, on the downside, I consider it key for the S&P 500
(SPX) to hold the green arrow area below at 1105, with leeway to
1100.

Call to put volume ratios for Equities are not at an extreme –
the last extreme being bearish.  More downside would suggest that
the put volume would pick up and we might then see a bullish
reading. The bulls want to take charge but don't find enough good
reasons yet to keep throwing money at stocks.

S&P 100 Index (OEX) – Daily chart:
Key resistances are 558, then 562 in the S&P 100.  On the
downside, support implied by the trendline comes in around 540.
A move to above resistance suggests at least a re-test of the
prior highs – a drop below 540 suggests at least a "test" of
support implied by the 200-day moving average.




OEX is getting down toward an oversold stochastic reading but is
not there yet.  Stay tuned.

S&P 100 Index (OEX) – Hourly chart:
I like the hourly chart here for a quick glance as it shows even
more clearly this pattern of lower rally highs, characteristic of
a downtrend at least for now – 560 to 565 looks like formidable
resistance.  Even if the bulls move the ball to there, they still
got to take it across the goal line and that will be tough – I
lean to buying puts if OEX gets into the 560-565 zone.




Dow Industrials (INDU) Daily:
These charts all start to look alike after a while! 10,500, then
10,550 are the key near resistance levels. 10,300, then in the
10,200-10,180 area are the key supports.  A close under 10,200
would suggest a move back to re-test the 10,050-10,100 area. This
is one of those times where market action is indecisive – could
that mean that WE are uncertain what lies ahead this year – well
I am.




Pretty neutral on the RSI here at mid-range.  The trendlines are
key to assessing the next direction for the intermediate term
trend. The chart suggests more of a sideways to lower direction.
If so, good to be a (option) premium seller than buyer.

[For more on construction and use of trendlines, see my recent
Trader's Corner article at -
http://www.OptionInvestor.com/traderscorner/tc_041504_1.asp


Nasdaq Composite (COMPX) Index  – Daily:
The Nasdaq, for a change, looks a lot like the S&P segment of the
market.  2050-2070 is near resistance.  A close above 2070 would
suggest potential back up to the 2130-2140 resistance.  Doubtful
that this would happen without the NYSE stocks also in gear.
Strong move in Microsoft (MSFT) and to recent rebound in Intel
(INTC) is probably not enough to carry the market higher.




Nasdaq Composite (COMPX) Index  – Weekly:
Nasdaq/Tech lovers unite!  But the trend looks sideways as noted
by the rectangular box.  2200 would be the top of what I could
see a trading range ahead, with 1900 as key support – a move to
1800 would not destroy the long-range uptrend pattern however.




The Composite Index could fall some distance before getting to an
oversold level again – it may not, but a continued sideways to
lower move will, over time, a least put the 13-week RSI closer to
an oversold reading.

Nasdaq 100 (NDX) Index  – Daily:
1500 remains key resistance, at the trendline - a close over this
level AND the ability to hold this area on pullbacks to it, would
suggest at least a re-test of the prior 1520 high. 1550 is pretty
major resistance.  Doubtful the Nasdaq 100 (NDX) will clear this
area anytime soon.  How about AFTER the election?!  Well, I've
been wrong before.

1440 is near support, at the last (down) swing low.  1400-1405 is
key, and major, support I think at this point.




Nasdaq 100 tracking Stock (AMEX:QQQ)– Hourly:
The hourly chart on the Q's show it best.  A lot of resistance
and selling interest is showing at 37.25-37.50.  38.25 – over
time, this intersection is 38.50 – is the top end of the trading
channel that is apparent on the hourly chart.  I would sell in
this area, keeping with the idea that QQQ is going to remain
locked in a trading range on balance.  39 is probably the top of
the range for a while, with 34 being the low of it.




NOTE: I will be doing the Index Wrap comments this coming week,
taking over for Jeff (Bailey), who is taking a well-deserved
break from constant battle on the front lines.

Good Trading Success!


************************Advertisement**********************************
Option traders, check what PreferredTrade offers:
-    true direct access to each option exchange
-    stop and stop loss online option orders
-    contingent option orders based on the price of the option or stock
-    online spread order entry for net debit or credit
-    fast option executions
-    rates as low as $1.50 per contract ($14.95 min)

PreferredTrade, Inc.
Call 888-889-9178 or
Click http://www.PreferredTrade.com/CF/Home.CFM?ID=OIN
Member NYSE, Other Principal Exchanges, NFA, MSRB and SIPC
***********************************************************************


**************
Editor's Plays
**************

Internet Bubble?

While some are bubblier than others there is still a strong
consensus for the future. EBAY is by far the leader with a
real life gap up to a new 52-week high at $83 on Thursday.
Great company, great stock but I think there is trouble
ahead. Not in company performance but in stock price.

The challenge is not with EBAY but with Google. Google
will likely announce its IPO next week and it is expected
to attract $20-$25 BILLION in cash. That means there is a
very good chance some of that money will flow out of EBAY,
AMZN and YHOO among others.

Current market caps for YHOO $38B, EBAY $54B and AMZN $20B.

Investors in those stocks, especially EBAY, may decide to
hitch their fortunes to a new rising star and take profits
on the old established companies.

For EBAY at a new 52-week high and very extended at this
point that could mean a drop in the $5-$7 range.

That makes this a very simple play. We are going to buy
the July $80 put and target $76 for an exit. The risk
should be minimal once the Google IPO is announced because
the attention will be on the new stock. Until the announcement
which is expected next Thursday, we would be at risk for any
continued market gains. With EBAY already riding a huge gap
I think that risk is manageable.

The problem is the IPO date. If it is announced on Thursday
it could be well into the future before it is priced. The
expectations for this IPO are so strong I would think they
would hurry it to market and not risk the summer doldrums
or an election gone bad.

The July put is the recommended option. I included the June
options as well because of event risk over the next two
weeks. With the Fed, economic reports, etc, anything is
possible and EBAY is very extended.

Here are the potential puts.

Jul $80 put XBA-SP currently $3.60 recommended
Jun $80 put XBA-RP currently $2.85
Jun $75 put XBA-RO currently $1.35


I recommend the more expensive July $80 because it is very
close to being in the money and a drop to our $76 target
would nearly double it.

EBAY Chart - Daily



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

Taser Update

Readers who took advantage of the TASR combination play last
week are sitting pretty today. After a one day spike the
stock has fallen and can't get up.

The play was to sell both a call and put on either side of
the price and then cover either side as the price moved in
that direction.

May $120 Call QUR-ED $10.30 bid last Friday
May $110 Put  QUR-QB $12.90 bid last Friday

You would have received approx $23 in premium based on
Friday's closing prices but in reality the call opened
at $13.50 on Monday, the put at $10.80 for $24.30.
Taser opened at $117 and rapidly ran to $128. You would
have needed to cover the call almost immediately by going
long the stock as it crossed $120 and remain covered until
the middle of the day when it fell back below $120 and
retraced its gains with a dip to $111. It peaked above $120
again later in the afternoon then closed just over $118.
You should have been flat the stock at the close.

On Tuesday TASR gapped down to $106 and then instantly
rallied back to $111.50 but that was the last gasp. With
the dip under $110 traders should have shorted the stock
to cover the naked put.

With the stock at $81 today it is -$39 from the open call
which is currently trading at $1.20. I would close the call
at this level and consider the $13.50 received -1.20 close
as profit.

Traders should be short the $110 put and the stock at $110
and waiting for expiration. You will be put the stock and
that stock will cover your short.

Assuming you changed stock positions three times for a
cost of $1.00 each time and closed the call for $1.20
you should have a net profit today of about $20 and with
TASR at $80 you are just waiting for the clock to run out.

This is the best possible scenario. The stock is well
under the strike price and we do not care what happens
as long as it stays under $110.

If TASR did happen to rebound to $110 you would cover
your stock short and remain flat the stock as long as
it is over $110.

TASR Chart - Daily



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


News Corp Update $38.11

Still waiting for a chance to fill the last one third of
the position. Waiting until next week to sell calls against
our current leaps.

Still unfilled:

Buy (2) Jan-2006 $40 Calls WLN-AH with a touch of
200dma (currently $34.89)

http://members.OptionInvestor.com/editorplays/edply_041104_1.asp

http://members.OptionInvestor.com/editorplays/edply_041804_1.asp


****************
MARKET SENTIMENT
****************

Investor Bravado?
- J. Brown

The volatility indices are supposed to measure investor optimism
and/or fear.  Lower numbers on the VIX/VXO mean less fear/more
confidence for investors.  A quick glance at Friday's readings at
or near new multi-year lows would indicate investors are feeling
pretty confident right now.  But are they?  With volatility
indices near new lows why aren't the markets at or near new
highs?  Earnings certainly aren't the issue.  Earnings have been
great.  On average they have come in well above expectations.  Of
course Jim has mentioned multiple times that year over year
comparisons start to get a lot tougher going forward as companies
compete with the very strong second half to 2003.  That leaves us
with interest rate fears, geo-political tensions and Iraq, and
the Presidential election.

Fortunately, Greenspan appears to have soothed the rate hike
fears at least for now.  The Iraq question is still up for grabs
and that will have a direct influence on Bush's re-election
campaign.  We don't want to be political here but it is widely
assumed that the markets want or are expected to do better with a
Republican in the White House.  However, unless things really
begin to melt down in Iraq next week this probably won't be a
short-term issue.  This probably means that the rate fears will
quietly loom in the background as the markets digest two big
weeks of economic reports.

Looking at some of the major sector indices I noticed the
following.  The Dow Transports index has broken out above
resistance at 3000.  Traditional Dow theory suggests that you
can't have an extended rally/bull market without participation
from the Transports so this is good news.  Glancing through some
of the tech sectors I noticed that the semiconductors are
rebounding again.  Fortunately, this short-term bottom also
appears to be a "higher low" on its daily chart.  Not quite doing
so well are the hardware stocks.  The GHA is stumbling along
support and not showing much of a bounce on Thursday-Friday.

Traders may also want to look through the Defense, Retail and
Cyclical sectors for bullish plays.  Defense and Retail are at
new closing all-time highs while Cyclicals are also doing pretty
well.

On a side note check out the gold futures versus the dollar.  The
dollar has risen strongly in the past couple of weeks but the
rally paused at resistance of its 200-dma.  In reverse gold
futures have fallen strongly but are holding support near their
200-dma.  Both of these look ready to consolidate their recent
moves.


-----------------------------------------------------------------

Market Averages

DJIA ($INDU)

52-week High: 10753
52-week Low :  8288
Current     : 10472

Moving Averages:
(Simple)

 10-dma: 10412
 50-dma: 10428
200-dma:  9942



S&P 500 ($SPX)

52-week High: 1163
52-week Low :  897
Current     : 1140

Moving Averages:
(Simple)

 10-dma: 1132
 50-dma: 1132
200-dma: 1070



Nasdaq-100 ($NDX)

52-week High: 1559
52-week Low : 1072
Current     : 1497

Moving Averages:
(Simple)

 10-dma: 1469
 50-dma: 1455
200-dma: 1405



-----------------------------------------------------------------

The VIX hit new multi-year lows and the VXO and VXN were close
to doing the same on Friday as stocks rebounded into the
afternoon.

CBOE Market Volatility Index (VIX) = 14.01 -0.60
CBOE Mkt Volatility old VIX  (VXO) = 14.22 -0.37
Nasdaq Volatility Index (VXN)      = 20.68 -0.67

-----------------------------------------------------------------

          Put/Call Ratio  Call Volume   Put Volume

Total          0.70        750,552       526,044
Equity Only    0.63        649,924       409,471
OEX            0.44         29,197        12,750
QQQ            5.97         17,589       104,924


-----------------------------------------------------------------

Bullish Percent Data

           Current   Change   Status
NYSE          78.0    + 0     Bull Confirmed
NASDAQ-100    57.0    + 1     Bear Correction
Dow Indust.   83.3    + 0     Bear Confirmed
S&P 500       75.8    + 0     Bear Confirmed
S&P 100       76.0    - 1     BEAR CONFIRMED


Bullish percent measures the number of stocks in an index
currently trading on a buy signal on their point and figure
chart.  Readings above 70 are considered overbought, and readings
below 30 are considered oversold.

Bull Confirmed  - Aggressively long
Bull Alert      - Cautiously long
Bull Correction - Pause or pullback in upward trend
Bear Alert      - Take defensive action if long
Bear Confirmed  - High risk if long, good conditions for shorting
Bear Correction - Pause or rebound in downtrend


-----------------------------------------------------------------

 5-dma: 1.52
10-dma: 1.15
21-dma: 1.75
55-dma: 1.25


Extreme readings above 1.5 are bullish, and readings below .85
are bearish.  These signals don't occur often and tend be early,
but when they do, they can signal significant market turning
points.


-----------------------------------------------------------------

Market Internals

            -NYSE-   -NASDAQ-
Advancers    1009      1411
Decliners    1823      1654

New Highs      99       105
New Lows       69        16

Up Volume    665M     1207M
Down Vol.   1021M      638M

Total Vol.  1704M     1893M
M = millions


-----------------------------------------------------------------

Commitments Of Traders Report: 04/20/04

Weekly COT report discloses positions held by small specs
and commercial traders of index futures contracts at the
Chicago Mercantile Exchange and Chicago Board of Trade. COT data
can be found at www.cftc.gov.

Small specs are the general trading public with commercials being
financial institutions. Commercials are historically on the
correct side of future trend changes while small specs tend
to be wrong.

S&P 500

Commercials still not willing to place in big one-sided bets.
The remain net short.  Small traders upped their bearish
positions by a couple of thousand contracts.

Commercials   Long      Short      Net     % Of OI
03/30/04      407,987   420,624   (12,673)   (1.5%)
04/06/04      409,429   419,471   (10,042)   (1.2%)
04/12/04      412,827   419,910   ( 7,083)   (0.9%)
04/20/04      409,729   421,456   (11,727)   (1.4%)

Most bearish reading of the year: (111,956) -  3/06/02
Most bullish reading of the year:   23,977  - 12/09/03

Small Traders Long      Short      Net     % of OI
03/30/04      130,112    81,937    48,175    22.7%
04/06/04      130,262    80,174    50,088    23.8%
04/12/04      135,840    89,090    46,750    20.8%
04/20/04      136,699    92,982    43,717    19.0%

Most bearish reading of the year:  (1,657)- 5/27/03
Most bullish reading of the year: 114,510 - 3/26/02


E-MINI S&P 500

Commercials remain heavily net short the e-minis and small
traders, who typically do the opposite, are right on track
with heavy long positions.

Commercials   Long      Short      Net     % Of OI
03/30/04      265,492   305,797    (40,305)  ( 7.1%)
04/06/04      270,904   328,862    (57,958)  ( 9.7%)
04/12/04      261,889   341,163    (79,274)  (13.1%)
04/20/04      275,985   355,555    (79,570)  (10.1%)

Most bearish reading of the year: (354,835)  - 06/17/03
Most bullish reading of the year:  133,299   - 09/02/03

Small Traders Long      Short      Net     % of OI
03/30/04      123,494     59,550    63,944    35.0%
04/06/04      148,737     46,235   102,502    52.6%
04/12/04      172,473     52,274   120,199    53.5%
04/20/04      186,799     69,137   117,662    46.0%

Most bearish reading of the year: (77,385)  - 09/02/03
Most bullish reading of the year: 449,310   - 06/10/03


NASDAQ-100

Very little movement in the NDX futures for commercial
traders.  The same can be said for small traders.

Commercials   Long      Short      Net     % of OI
03/30/04       52,749     67,967   (15,218) (12.6%)
04/06/04       54,862     34,762    20,100   22.4%
04/12/04       54,144     34,432    19,712   22.3%
04/20/04       54,852     35,964    18,888   20.8%

Most bearish reading of the year: (21,858)  - 08/26/03
Most bullish reading of the year:  13,386   - 03/16/04

Small Traders  Long     Short      Net     % of OI
03/30/04        8,928    16,551    (7,623)  (30.0%)
04/06/04        7,971    20,721   (12,750)  (44.4%)
04/12/04        8,297    20,746   (12,449)  (42.9%)
04/20/04        8,538    19,431   (10,893)  (39.0%)

Most bearish reading of the year: (10,769) - 06/11/02
Most bullish reading of the year:  19,088  - 01/21/02

DOW JONES INDUSTRIAL

Hmm... we're seeing a little bit of money getting shuffled
around here.  Commercials are slightly more bullish this
week.  Small traders, as expected, have turned more bearish.

Commercials   Long      Short      Net     % of OI
03/30/04       23,642    22,180    1,462       3.2%
04/06/04       23,101    22,108      993       2.2%
04/12/04       23,501    22,748      753       1.6%
04/20/04       24,156    22,009    2,147       4.7%

Most bearish reading of the year: (8,322) -  1/16/01
Most bullish reading of the year: 15,135  - 10/16/01

Small Traders  Long      Short     Net     % of OI
03/30/04        7,020     6,711      309      2.3%
04/06/04        7,316     8,085     (769)    (5.0%)
04/12/04        6,136     7,450   (1,314)    (9.7%)
04/20/04        5,997     9,631   (3,634)   (23.3%)

Most bearish reading of the year: (12,106) -  3/09/04
Most bullish reading of the year:   8,523  -  8/26/03

-----------------------------------------------------------------


************************Advertisement*********************************
Option Traders:  Pay Attention
Use the online options trading system built by option traders for
options traders.
Featuring direct access to each option exchange, stop and stop loss
option orders,
contingent option orders, online spreads, fast executions,
and rates as low as $1.50 per contract ($14.95 min.).
PreferredTrade, Inc.
Call 888-889-9178 or
Click http://www.PreferredTrade.com/CF/Home.CFM?ID=OIN
Member NYSE, Other Principal Exchanges, NFA, MSRB and SIPC
********************************************************************


***************
ASK THE ANALYST
***************

Tendency to gravitate toward the pivot (Pivot Analysis)

This week's question comes from a stock index swing trader, where
the question was a complex one, and one I've really had to work
at.

The questions, which were quite complex, involves back testing,
where some of our historical data from the weekly pivot analysis
matrix might help us all get a better sense of how these markets
have been trading, while at the same time, give us some insight
as to what our expectations for profit, or price action might be
over the period of a week or two, even three or four weeks.

I love questions that I don't immediately have the answer to, and
if I feel it is within my mental capacity to answer, I love a
good challenge.

The swing trader's question centered around his observation that
on a week-to-week basis, the major indices seemed to gravitate
toward, or around their weekly pivots, where even when
fluctuations away from the pivot were found, there still seemed
to be some type of gravitational pull, where swing trade profits
could easily evaporate by the end of the week.

Trader's Question #1:  Is it just me, or is this really
happening?

Trader's Question #2:  What type of range, or fluctuation is
normal for the QQQ?  It seems that there are periods of
volatility that offer opportunity to profit, but many times, that
opportunity must be captured quickly, or the gravitation back
toward the pivot suddenly has paper profits suddenly missed.
What type of swing trade profit on a week-to-week basis should I
look for.  Maybe my expectations are too high, thus some of my
frustration.

Trader's Question #3:  After following the QQQ's trade on a week-
to-week basis, it been my observation that some week's volatility
or price fluctuation is much greater than others, but as you
noted in last night's wrap, the QQQ has become a much more
difficult security to figure out, as it is now blended with
stocks other than pure technology related stocks.  Of late, the
QQQ hasn't necessarily been trading as much in unison with the
semiconductors as it had in the past.  Am I seeing things, or
have the semiconductors lost some of their usefulness when trying
to determine price direction of the QQQ?

Wow!  I could spout off some anecdotal answers to these three
question, but that's no good.

After thinking about this trader's questions for a few days, I
thought I run a little experiment.  Much like a scientist will
do, I'll use some past data, make some observations, and see if
we can't come up with some conclusions.

Here's what I came up with.

To get a grasp of what I was dealing with, I went back and
compiled the last 12-weeks of WEEKLY pivot analysis data.  I keep
track of all the weekly pivot data I show in each night's Index
Trader Wrap at OptionInvestor.com, so we can use actual data to
begin addressing the trader's questions.

The last 12-weeks data should give us a large enough data set for
a swing trader to begin making some useful observations from.
The periods I used are from February 2, 2004 to Friday's close of
April 23, 2004.

Here's how I hope to tackle some of the trader's question, and
while I was at it, I included all of the various
indices/securities we keep track of in the pivot analysis matrix.

Data Table of Weekly Pivot Analysis -



Here's how I went about tackling some of the trader's questions.
Stick with me, and I think it will become clear, but with the
resources I have at hand here's what I've done.

The only way I could figure out how to display each week's trade,
was to assign it a number.  Since I'm using 12 weeks of data, I
assigned each week a number of 1 thru 12.  This is displayed at
the bottom of the above table.  As an example, for the week of
2/2 thru 2/6, I've assigned that week's trade as #1, then indexed
up from there.  Simple enough.

Now comes the hardest part.  I went back and looked at what the
price was at each Friday's close for the particular week (1 thru
12) and then plotted that each Friday's close in the above table
(rows 4-14) for the appropriate index/security we track in the
WEEKLY Pivot Analysis table.  Each week's closing value was
plotted in relation to where the index/security closed with THAT
WEEK'S weekly Pivot Analysis Matrix.

For the purposes of this article, and as to try an make this
article a broader educational on a broader market perspective, I
used the S&P 500 Index (SPX.X) as my general market indicator of
price direction.  Still, a NASDAQ-100 (NDX/qqq), Dow Industrials
(INDU/dia), S&P 100 (OEX), Semiconductor (SOX.X), or Banks
(BIX.X) trader will be able to make some observations that they
are interested in.

Let's walk through the process of plotting the SPX (row 6)
closing values for some of it's Friday closes.  When we do so,
consider the vertical blue line, which divides column D and E,
the WEEKLY Pivot, which would be viewed as a potential mid-point
of the week's trade.  After the completion of each week's trade,
we calculate a NEW weekly pivot for the next week's trade.  As
such, we KNOW that when the new week of trade begins (Monday)
that the index/security we are looking to trade, will likely open
for trading either side of the pivot.  For example, the SPX will
either open for trade above its Pivot and below R1 (resistance 1)
or will open below its Pivot and above its S1 (support 1).

At the markets close of 02/06 (#1), the SPX (row 6) CLOSED
between is weekly and WEEKLY R1 for that week's (for 02/02-02/06)
trade.  I plot the #1 in row 6/column E.  This gives me
perspective of where the SPX CLOSED relative to a midpoint.  Take
special note that I stress CLOSED at a price between the Pivot
and R1.  During any given week, the SPX could have traded any of
the levels in the WEEKLY Pivot Matrix, or no levels at all, as if
stagnate.

Now we progress to the week of 02/09-02/13 (#2), where that week,
the SPX closed ABOVE its weekly pivot.  I plot the #2 in row
6/column E.  (Note:  SPX traded as high as WEEKLY R2 of 1,155.01
+16 points this week, but never trade AT its WEEKLY Pivot, but
closed up just 3.05 points for the entire week).

We progress further to the week of 02/16-02/20 (#3), where that
week, the SPX closed between its WEEKLY Pivot and S1.  (Note:
SPX traded as high as its WEEKLY R1 of 1,156.90 +11 points this
week, but closed down 1.7 points for the entire week).

Progressing further to the week of 02/23-02/27 (#4), we see that
the SPX once again closed between its WEEKLY Pivot and S1.  I
plot the #4 in row 6/column D.

For purposes of brevity, I continued this process for the
remaining weeks of trade in an attempt to try and answer the
trader's question #1.

Answer to #1:  After plotting each week's CLOSING trade, it does
appear that CLOSING values, on average, tend to gravitate around
the pivot, or at least between their WEEKLY S1 and WEEKLY R1,
with Pivot in between.  Based on 12 weekly observations, this
would be true 75% of the time (9 out of 12 weeks).

Trader's Question #2:  I went back and calculated the AVERAGE
weekly range of trade for the various indices/securities and
posted the average range of trade (from each week's low to high)
for the last 12 weeks.

Answer to #2:  Row 10/Column H would show that the AVERAGE range
of trade for the QQQ is $1.35.  A swing trader that holds a
position no more than 5 trading days, would begin to understand
that if they entered a QQQ trade at the PEAK inflection point
(high or low) of that week, then they might look for a $1.35 per
share gain on average.  I don't know any traders that have been
able to consistently buy and sell extreme peaks or inflection
points in ANY security, but traders that can enter and exit
within 15% of an inflection point on consistent basis would be
considered a very good trader.  In the context of $1.35, if
missing the outlying 15% of $1.35 range on both end, this would
still have the trader capturing 70% of the average range, or
roughly $0.95 per share in 5-days.  Perhaps a swing trader that
only prefers capital exposure of 5-days or less, but has been
targeting a $2.00 per share gain in any one direction, begins to
understand that this type of opportunity would be outside the
average weekly price fluctuation of the QQQ.

Trader's Question #3:  Has the QQQ and the SOX.X lost some of
their correlativeness?

To answer this, I'm going to separate out the last 12 weeks of
trade (1 thru 12) in for both the QQQ and the SOX.X, and plot
each week's close, within each security's weekly pivot matrix.

QQQ and SOX.X weekly closes within their WEEKLY Pivot Matrix



With no regard to the actual amount of price gain or decline,
I've plotted the 12 weekly (1 thru 12) closes of both the QQQ and
SOX.X against each other, where RED numbers would depict a
certain price decline, numbers is BLUE would most likely depict a
more fraction gain/loss or relative unchanged price, while GREEN
numbers would depict a certain price gain.

There does appear to be some lack of correlation, at times,
between the QQQ and SOX.X.

Note that in week #2, the QQQ appears to have been relatively
unchanged, while the SOX.X would have closed below its WEEKLY
Pivot, after having closed ABOVE the prior week's (#1) pivot.
However, I will note that both the QQQ and SOX finished
lower(QQQ= $-0.19, SOX= -8.84) by their close for the week of
02/09-02/13.

Week #3, the QQQ would have closed BELOW its weekly pivot (fell
$-0.08 this week, but did trade as low as its WEEKLY S1 of $36.57
before closing at $36.86) while the SOX.X closed below its WEEKLY
pivot for a second-consecutive week (fell -0.77 points, no trade
at its WEEKLY S1).

Week #4 and #5 would most likely have shown fractional Friday to
Friday closing changes.  I checked the full RANGE of trade for
week #5, which did show the QQQ's weekly range being $0.97, while
the SOX.X witnessed a 22.71-point range.

Week #6, shows that a notable downside move (to the left of
pivot) was witnessed as both the QQQ and SOX.X closed BELOW their
WEEKLY S2s.  While the QQQ closed down $1.12, or 3.06%, its
weekly range was $2.02.  The SOX.X closed down 19.14 points, and
its weekly range was 36.21 points.

Week #7 was a certain price decline.  Remember, that when each
new week of trade begins, we KNOW that the index/security being
measured in the pivot matrix resides somewhere between its S1 and
R1, so a close between S2-S1 would have to represent a decline.
This week, the QQQ saw a $0.76, or 2.14% decline and traded a
range of $0.99, while the SOX witnessed a 21.75 point decline, or
4.48% loss, and saw a weekly range of 26.28 points.

Week #8 may have been a marginal bullish week, but with a certain
price advance.  The QQQ gained $0.47 on the week (+1.35%) but saw
a range of $1.58 (traded down to WEEKLY S2 of $34.01 with a
weekly low of $34.00 before gravitating back above its WEEKLY
Pivot)  The SOX gained 15.90 points (+3.43%), and similar to the
QQQ saw a wider range of 34.39.

Week #9 saw prior week's gains build with the QQQ gaining $1.88
(+5.34%) while its weekly range was only $1.66.  How can this be
you might wonder?  The QQQ started the week with a gap higher
from its prior Friday's close.  The SOX gained 34.61 points
(+7.22%) and saw a weekly range of 35.27 points.

It is weeks #11 and #12 where the trader begins to pick up on
some recent lack of correlation between the QQQ and the SOX.X.

Week #11 does find the QQQ and SOX.X moving lower, but the SOX.X
outpacing a decline to close BELOW its Weekly S2, while the QQQ
closes between its WEEKLY S1 and Pivot.  This week, the QQQ
finished down $0.85, or 2.3% and traded a range of $1.57.  The
SOX.X finished down 31.64 points, or 6.18%, and traded a range of
44.09 points.

Week #11 would either depict that there was something overly
"wrong/bearish" taking place in the SOX.X, or there was a few
stocks, non-semiconductor, that were showing more bullishness
among the QQQ.

Week #12 would have found the QQQ with certain gain and this
week's trade did find the QQQ closing up $1.12, or 3.10%, with a
weekly range of $1.63.  The SOX.X closed up 7.84, or 1.63%, and
saw a ranged of 22.3%.

Once again, we may note that either the SOX.X is seeing something
"wrong/bearish" taking place, or there was a few stocks (I can
think of MSFT's 6.12% gain on Friday) showing more bullishness
among the QQQ.

Answer #3:  It would appear that some of the QQQ/SOX.X
correlation has been lost, but only in the last two weeks.

To be continued:

Good gravy!  It's 05:34 AM EDT and I'm still working on this
article.

I think I've "discovered" some things and I want to work on them
some more.

I will be on vacation all next week, and won't get a chance to
continue my train of thought until May 9th Ask the Analyst, but
will give me an opportunity to test a couple of things I think
that I've discovered.

Try giving yourself a rest right now, clear your mind, then come
back and study, or re-read this article.

Try applying a simple IF the index does this, then trade this
level, with an expected average range of $x.xx, with a stop x% of
the entry point.

Since I will be out all next week, I want to post this upcoming
and now updated WEEKLY pivot levels for 04/26-4/30, along with
Monday's DAILY pivot levels, and current MONTHLY Pivot levels.

Pivot Analysis Matrix -



Here's what I really want to check against when I get back from
vacation, but something you might want to do this week while I'm
gone.

Think about the AVERAGE range of trade we calculated in the first
chart (column H).  IF the average range for the QQQ is $1.35 over
the past 12 weeks, this might have the QQQ capable of trading
($37.21 +/- $1.35) a MAX LOW on AVERAGE of $35.86 (that would be
just below this WEEK's S1, or capable of trading a MAX HIGH on
AVERAGE of $38.56, which would put the QQQ above its WEEKLY R2.

Here is something I'm going to test when I get back.

I didn't mark this correlative level in the Matrix, but do you
see MONTHLY R1 at $37.34 and DAILY R1 of $37.35?  Think of this
as a KEY LEVEL OF RESISTANCE right now, where without
help/strength from the SOX.X, it may be difficult for the QQQ to
get above this level.

After all, we KNOW that the QQQ traded this $37.34 level earlier
this MONTH (MONTHLY R1 was traded BLUE UNDERLINED) and look where
the QQQ LOW was this week ($35.63).

On Monday, my thinking would be this, and this is a test.  IF the
QQQ trades above $37.34-$37.35, then go long (look for some
strength in SOX.X) on break higher, STOP under DAILY Pivot, with
a MAX WEEKLY AVERAGE gain target of $38.56.  If QQQ trades WEEKLY
R2 of $38.33, immediately raise stop to protect against
gravitation back to the WEEKLY Pivot.

The BEARISH traders looks for this.

IF the QQQ trades $37.34-$37.35, but SOX.X lagging, then be
patient, and should SOX.X begin to weaken the GO SHORT the QQQ on
break below the DAILY Pivot, stop above the DAILY R1, with a MAX
WEEKLY average bearish gain target of $35.86.  If QQQ trades
WEEKLY R1, immediately lower stop to protect against gravitation
back to the WEEKLY Pivot.

Jeff Bailey


*************
COMING EVENTS
*************

Earnings Calendar
-----------------

Symbol  Co               Date           Comment      EPS Est

------------------------- MONDAY -------------------------------

ATE    Advantest Corp        Mon, Apr 26  -----N/A-----        N/A
AFC    Allmerica Finl        Mon, Apr 26  After the Bell      0.52
ABC    AmeriSourceBergen     Mon, Apr 26  Before the Bell     1.20
ASH    Ashland               Mon, Apr 26  Before the Bell    -0.19
ASMI   ASM Intl N.V.         Mon, Apr 26  During the Market   0.11
BBV    Banco Blbao Vzcy ArgntMon, Apr 26  -----N/A-----        N/A
BOH    Bank of Hawaii Corp   Mon, Apr 26  -----N/A-----       0.66
BNK    Banknorth Group Inc.  Mon, Apr 26  Before the Bell     0.56
SAM    Boston Beer Co        Mon, Apr 26  -----N/A-----       0.02
CSE    CAPITALSOURCE INC     Mon, Apr 26  After the Bell      0.20
CHK    Chesapeake Energy CorpMon, Apr 26  After the Bell      0.37
CB     Chubb Corp            Mon, Apr 26  After the Bell      1.42
KOF    COCA-COLA FEMSA       Mon, Apr 26  -----N/A-----       0.57
CNXT   Conexant Systems Inc. Mon, Apr 26  After the Bell      0.03
CUZ    Cousins Properties IncMon, Apr 26  After the Bell      0.52
EDS    Electronic Data Sys   Mon, Apr 26  After the Bell     -0.01
EEP    Enbridge Enrg Part    Mon, Apr 26  After the Bell      0.54
ENH    Endurance Spec Hldng  Mon, Apr 26  After the Bell      1.08
ETR    Entergy               Mon, Apr 26  Before the Bell     0.87
FCNCA  First Cit BancShares  Mon, Apr 26  -----N/A-----        N/A
FDG    Fording Inc.          Mon, Apr 26  -----N/A-----        N/A
GEMP   Gemplus Intl S.A.     Mon, Apr 26  -----N/A-----        N/A
HMC    Honda Motor Co. Ltd.  Mon, Apr 26  -----N/A-----       0.48
HUM    Humana Inc.           Mon, Apr 26  Before the Bell     0.41
KEM    Kemet                 Mon, Apr 26  After the Bell     -0.05
KIM    KIMCO REALTY CORP     Mon, Apr 26  After the Bell      0.85
KRON   Kronos Inc            Mon, Apr 26  After the Bell      0.26
LEA    Lear Corp.            Mon, Apr 26  Before the Bell     1.17
LRY    Liberty Property TrustMon, Apr 26  After the Bell      0.81
LUX    Luxottica Group       Mon, Apr 26  -----N/A-----        N/A
MFC    Manulife Finl Corp    Mon, Apr 26  During the Market    N/A
NSANY  Nissan Motor Co. Ltd. Mon, Apr 26  -----N/A-----        N/A
NRD    NORANDA INC           Mon, Apr 26  -----N/A-----        N/A
NHY    Norsk Hydro           Mon, Apr 26  -----N/A-----        N/A
NBP    No Border Part        Mon, Apr 26  -----N/A-----       0.62
IX     Orix Corp             Mon, Apr 26  -----N/A-----        N/A
PRE    PartnerRe Ltd.        Mon, Apr 26  After the Bell      1.64
PNR    Pentair, Inc.         Mon, Apr 26  Before the Bell     0.73
PPC    Pilgrim's Pride       Mon, Apr 26  Before the Bell     0.22
PBI    Pitney Bowes Inc.     Mon, Apr 26  After the Bell      0.56
PDG    Placer Dome           Mon, Apr 26  -----N/A-----       0.14
PHM    Pulte Homes Inc.      Mon, Apr 26  After the Bell      0.85
RCII   Rent-A-Center         Mon, Apr 26  After the Bell      0.62
RMD    ResMed Inc.           Mon, Apr 26  After the Bell      0.42
R      Ryder System, Inc.    Mon, Apr 26  Before the Bell     0.49
SHR    Schering AG           Mon, Apr 26  Before the Bell      N/A
SIE    Sierra Health Serv    Mon, Apr 26  After the Bell      0.67
SLAB   Silicon Laboratories  Mon, Apr 26  After the Bell      0.34
SWMAY  Swedish Match         Mon, Apr 26  -----N/A-----        N/A
SYY    SYSCO Corp            Mon, Apr 26  Before the Bell     0.30
TIN    Temple-Inland, Inc.   Mon, Apr 26  After the Bell      0.24
TPP    Teppco                Mon, Apr 26  After the Bell      0.44
SWK    The Stanley Works     Mon, Apr 26  -----N/A-----       0.64
TNB    Thomas & Betts        Mon, Apr 26  Before the Bell     0.14
TP     TPG NV                Mon, Apr 26  -----N/A-----       0.40
TSN    Tyson Foods           Mon, Apr 26  Before the Bell     0.27
VLI    Valero L.P.           Mon, Apr 26  Before the Bell     0.78
WRI    Weingarten Rlty InvestMon, Apr 26  Before the Bell     0.61
ZMH    Zimmer Inc.           Mon, Apr 26  After the Bell      0.51


------------------------- TUESDAY ------------------------------

ABGX   Abgenix               Tue, Apr 27  After the Bell     -0.50
ACE    ACE Limited           Tue, Apr 27  After the Bell      1.24
AFL    AFLAC Inc             Tue, Apr 27  After the Bell      0.54
AGRa   Agere Systems, Inc.   Tue, Apr 27  Before the Bell      N/A
AGU    Agrium, Inc.          Tue, Apr 27  After the Bell      0.01
AAI    AirTran Holdings, Inc.Tue, Apr 27  Before the Bell     0.03
AW     Allied Waste Ind, Inc Tue, Apr 27  After the Bell      0.08
AMX    America Movil, S.A.   Tue, Apr 27  After the Bell      0.63
AMT    Am Tower Corp.        Tue, Apr 27  Before the Bell    -0.16
AMKR   Amkor Technology, Inc Tue, Apr 27  Before the Bell     0.10
AVZ    AMVESCAP PLC          Tue, Apr 27  Before the Bell     0.22
AXE    Anixter Intl Inc.     Tue, Apr 27  Before the Bell     0.34
AOT    Apogent Technologies  Tue, Apr 27  After the Bell      0.39
ABI    Applied Biosystems    Tue, Apr 27  Before the Bell     0.21
AGY    Argosy Gaming         Tue, Apr 27  Before the Bell     0.48
AJG    Arthur J. Gallagher   Tue, Apr 27  After the Bell      0.38
AUO    AU Optronics Corp     Tue, Apr 27  -----N/A-----       0.58
ANZ    Aust and Nw Zlnd BnkngTue, Apr 27  -----N/A-----        N/A
AV     Avaya                 Tue, Apr 27  After the Bell      0.07
ACLS   Axcelis Technologies  Tue, Apr 27  After the Bell      0.10
BHI    Baker Hughes Inc      Tue, Apr 27  Before the Bell     0.25
BN     Banta Corp            Tue, Apr 27  Before the Bell     0.53
BJS    BJ SVCS CO            Tue, Apr 27  Before the Bell     0.41
BXP    Boston Properties     Tue, Apr 27  -----N/A-----       0.97
BP     Bp PLC                Tue, Apr 27  Before the Bell     1.03
BTI    British Am Tobacco    Tue, Apr 27  Before the Bell     0.57
BC     Brunswick Corp        Tue, Apr 27  Before the Bell     0.38
BNI    Burlington No Santa FeTue, Apr 27  Before the Bell     0.46
CBT    Cabot                 Tue, Apr 27  After the Bell      0.47
CP     Canadian Pac Railway  Tue, Apr 27  Before the Bell     0.22
CAJ    Canon                 Tue, Apr 27  Before the Bell      N/A
CBL    CBL & Ass Properties  Tue, Apr 27  After the Bell      1.16
CRA    Celera Genomics       Tue, Apr 27  Before the Bell    -0.29
CME    CHI MERCANTILE HLDGS  Tue, Apr 27  Before the Bell     1.22
CIN    Cinergy Corp.         Tue, Apr 27  Before the Bell     0.75
CGI    Commerce Group        Tue, Apr 27  After the Bell      0.67
CFB    Commercial Federal    Tue, Apr 27  Before the Bell     0.41
CVH    Coventry Health Care  Tue, Apr 27  Before the Bell     0.78
DFG    Delphi Finl Group Inc.Tue, Apr 27  After the Bell      0.78
XRAY   DENTSPLY Intl Inc.    Tue, Apr 27  After the Bell      0.53
DST    DST Systems           Tue, Apr 27  After the Bell      0.55
DD     DuPont                Tue, Apr 27  Before the Bell     0.95
EXP    Eagle Materials Inc.  Tue, Apr 27  After the Bell      0.74
EDMC   Education Mgmt Corp   Tue, Apr 27  After the Bell      0.32
ENB    Enbridge Inc.         Tue, Apr 27  -----N/A-----        N/A
ETM    Entercom Comm         Tue, Apr 27  Before the Bell     0.23
EXC    Exelon Corp           Tue, Apr 27  -----N/A-----       1.24
FHR    Frmnt Htls & Rsrts    Tue, Apr 27  -----N/A-----       0.10
FOE    Ferro Corp            Tue, Apr 27  Before the Bell     0.25
FLEX   Flextronics           Tue, Apr 27  -----N/A-----       0.11
FTI    Fmc Technologies, Inc.Tue, Apr 27  After the Bell      0.17
FDP    Frsh Dl Mnt Prdc Inc. Tue, Apr 27  Before the Bell     1.11
FBR    Friedman Bills Ramsey Tue, Apr 27  After the Bell      0.54
HRS    Harris                Tue, Apr 27  After the Bell      0.50
HSIC   Henry Schein          Tue, Apr 27  -----N/A-----       0.63
IMCL   ImClone Systems Inc   Tue, Apr 27  -----N/A-----       0.20
JP     Jefferson-Pilot       Tue, Apr 27  After the Bell      0.93
JNY    Jones Apparel Group   Tue, Apr 27  -----N/A-----       0.60
KYO    Kyocera Corp          Tue, Apr 27  -----N/A-----        N/A
LLL    L-3 Comm Holdings     Tue, Apr 27  Before the Bell     0.64
LII    Lennox Intl           Tue, Apr 27  After the Bell      0.10
LPNT   LifePoint Hospitals   Tue, Apr 27  After the Bell      0.46
LMT    Lockheed Martin       Tue, Apr 27  Before the Bell     0.53
MMP    Mglln Mdstrm Part     Tue, Apr 27  Before the Bell     0.71
MRO    Marathon Oil Corp     Tue, Apr 27  Before the Bell     0.82
MXIM   Maxim Integrated ProdsTue, Apr 27  After the Bell      0.31
MCD    McDonalds Corp        Tue, Apr 27  After the Bell      0.40
MHS    Medco Hlth Solutions  Tue, Apr 27  Before the Bell     0.48
MDP    Meredith Corp         Tue, Apr 27  Before the Bell     0.62
MNST   Monster Worldwide     Tue, Apr 27  After the Bell      0.10
MRH    Mntplr Re Hldngs Ltd. Tue, Apr 27  After the Bell      1.22
NBR    Nabors Ind            Tue, Apr 27  Before the Bell     0.47
NFG    Natl Fuel Gas Co      Tue, Apr 27  After the Bell      0.87
NATI   Natl Inst             Tue, Apr 27  After the Bell      0.16
NHP    Natwide Hlth Prop Inc.Tue, Apr 27  Before the Bell     0.40
NNDS   NDS Group PLC         Tue, Apr 27  Before the Bell     0.20
NET    Network Ass           Tue, Apr 27  After the Bell      0.11
ORLY   O'Reilly Automotive   Tue, Apr 27  After the Bell      0.44
ORI    Old Republic Intl     Tue, Apr 27  -----N/A-----       0.62
OMC    Omnicom Group         Tue, Apr 27  -----N/A-----       0.70
OSK    Oshkosh Truck         Tue, Apr 27  Before the Bell     0.53
PCAR   PACCAR                Tue, Apr 27  Before the Bell     0.88
PCZ    Petro-Canada          Tue, Apr 27  Before the Bell      N/A
PIO    Pioneer Corp          Tue, Apr 27  -----N/A-----        N/A
PLT    Plantronics, Inc.     Tue, Apr 27  -----N/A-----       0.33
PNM    PNM Resources         Tue, Apr 27  -----N/A-----       0.50
PPP    Pogo Producing        Tue, Apr 27  -----N/A-----       1.02
PSD    Puget Energy          Tue, Apr 27  After the Bell      0.61
QLTI   QLT Inc.              Tue, Apr 27  Before the Bell     0.24
QSFT   Quest Software Inc.   Tue, Apr 27  After the Bell      0.08
RHD    R.H. Donnelley Corp   Tue, Apr 27  After the Bell      0.59
RJR    R.J. Reynolds Tob HoldTue, Apr 27  Before the Bell     0.97
RGC    Regal Entert Group    Tue, Apr 27  Before the Bell     0.15
RCI    Renal Care Group, Inc.Tue, Apr 27  After the Bell      0.56
RFMD   RF Micro Devices, Inc.Tue, Apr 27  After the Bell      0.04
ROK    Rockwell Automation   Tue, Apr 27  Before the Bell     0.38
COL    Rockwell Collins, Inc.Tue, Apr 27  Before the Bell     0.37
SANYY  Sanyo Electric        Tue, Apr 27  -----N/A-----        N/A
SEM    Select Medical Corp   Tue, Apr 27  After the Bell      0.24
SEPR   Sepracor              Tue, Apr 27  -----N/A-----      -0.45
SINA   SINA CORP             Tue, Apr 27  After the Bell      0.27
SNE    Sony Corp             Tue, Apr 27  -----N/A-----      -0.47
STFC   State Auto Finl       Tue, Apr 27  Before the Bell     0.48
SYD    Sybron Dental Spec    Tue, Apr 27  After the Bell      0.42
TROW   T. Rowe Price         Tue, Apr 27  -----N/A-----       0.56
TCP    Telesp Celular Partic Tue, Apr 27  -----N/A-----       0.05
MHP    The McGraw Hill Co    Tue, Apr 27  Before the Bell     0.24
SMG    The Scotts Co         Tue, Apr 27  -----N/A-----       2.13
TOC    The Thomson Corp      Tue, Apr 27  -----N/A-----      -0.02
TMO    Thermo Electron Corp  Tue, Apr 27  After the Bell      0.27
RIG    Transocean Inc.       Tue, Apr 27  Before the Bell     0.03
TRMB   Trimble Navigation    Tue, Apr 27  -----N/A-----       0.21
TZA    TV Azteca S.A. de C.V Tue, Apr 27  After the Bell      0.12
UPL    Ultra Petroleum Corp  Tue, Apr 27  After the Bell      0.22
UAG    United Auto Group     Tue, Apr 27  -----N/A-----       0.46
X      United States Steel   Tue, Apr 27  Before the Bell     0.40
UPM    UPM-Kymmene Group     Tue, Apr 27  -----N/A-----       0.11
UTSI   UTStarcom             Tue, Apr 27  After the Bell      0.39
WOOF   VCA Antech, Inc.      Tue, Apr 27  After the Bell      0.29
VVC    Vectren Corp          Tue, Apr 27  After the Bell      0.75
VZ     Verizon               Tue, Apr 27  Before the Bell     0.57
VFC    VF                    Tue, Apr 27  -----N/A-----       0.87
BER    W.R. Berkley          Tue, Apr 27  After the Bell      1.04
WWY    Wm. Wrigley Jr. Co.   Tue, Apr 27  -----N/A-----       0.47
WMGI   Wright Medical Group  Tue, Apr 27  After the Bell      0.18
YCC    Yankee Candle         Tue, Apr 27  After the Bell      0.20


------------------------ WEDNESDAY -----------------------------

AFCI   Advanced Fibre Comm   Wed, Apr 28  After the Bell      0.08
AES    AES Corp              Wed, Apr 28  Before the Bell     0.12
AMG    Affiliated Mngrs GroupWed, Apr 28  -----N/A-----       0.92
AG     AGCO                  Wed, Apr 28  Before the Bell     0.14
ATG    AGL Resources         Wed, Apr 28  Before the Bell     0.94
AEM    Agnico-Egl Mns Lmtd   Wed, Apr 28  After the Bell      0.09
APD    Air Prod and Chem Inc Wed, Apr 28  Before the Bell     0.61
AKAM   Akamai Technologies   Wed, Apr 28  After the Bell      0.04
AMI    ALARIS Medical, Inc.  Wed, Apr 28  Before the Bell     0.14
ALD    Allied Capital Corp   Wed, Apr 28  Before the Bell     0.57
AHC    Amerada Hess          Wed, Apr 28  Before the Bell     1.67
BUD    Anheuser-Busch Co     Wed, Apr 28  -----N/A-----       0.64
ANT    Anteon Intl Corp      Wed, Apr 28  Before the Bell     0.34
ATH    Anthem, Inc.          Wed, Apr 28  Before the Bell     1.46
APPB   Applebee's Intl       Wed, Apr 28  After the Bell      0.51
ACGL   Arch Capital Group    Wed, Apr 28  After the Bell      1.09
ARI    Arden Realty Inc      Wed, Apr 28  After the Bell      0.64
ASTSF  ASE Test Limited      Wed, Apr 28  -----N/A-----       0.09
BRL    Barr Pharm, Inc.      Wed, Apr 28  Before the Bell     0.57
BOKF   BOK Finl              Wed, Apr 28  -----N/A-----       0.64
BOW    Bowater Inc           Wed, Apr 28  Before the Bell    -0.61
BMY    Bristol-Myers Squibb  Wed, Apr 28  Before the Bell     0.39
BPO    BROOKFIELD PPTYS CORP Wed, Apr 28  -----N/A-----       0.63
VNT    C. A. Nacl Teli Vene  Wed, Apr 28  After the Bell      0.18
CARS   Capital Automotive    Wed, Apr 28  Before the Bell     0.62
CRL    Charles River Labs    Wed, Apr 28  After the Bell      0.44
CBB    Cincinnati Bell Inc.  Wed, Apr 28  Before the Bell     0.03
CNH    CNH Global N.V.       Wed, Apr 28  Before the Bell    -0.02
CCE    Coca-Cola Enterprises Wed, Apr 28  Before the Bell     0.07
CMCSA  Comcast Corp          Wed, Apr 28  Before the Bell     0.07
COP    ConocoPhillips        Wed, Apr 28  Before the Bell     1.98
CEG    Constellation Enrgy   Wed, Apr 28  Before the Bell     0.56
CAM    Cooper Cameron        Wed, Apr 28  Before the Bell     0.25
COCO   Corinthian Colleges   Wed, Apr 28  Before the Bell     0.24
EXBD   Corporate Exec Board  Wed, Apr 28  After the Bell      0.29
CXR    COX RADIO INC         Wed, Apr 28  Before the Bell     0.11
CSX    CSX                   Wed, Apr 28  Before the Bell     0.27
CFR    Cullen/Frost Bankers  Wed, Apr 28  Before the Bell     0.63
CYTC   Cytyc Corp            Wed, Apr 28  After the Bell      0.18
DNR    Denbury Resources     Wed, Apr 28  Before the Bell     0.39
DTE    DTE Energy Co         Wed, Apr 28  After the Bell      0.96
DRE    Duke Realty Corp      Wed, Apr 28  After the Bell      0.57
DYN    Dynegy Inc.           Wed, Apr 28  Before the Bell    -0.01
ECA    EnCana Corp           Wed, Apr 28  -----N/A-----       1.01
ELE    Endesa, S.A.          Wed, Apr 28  Before the Bell      N/A
EGN    Energen               Wed, Apr 28  After the Bell      1.60
EQY    Equity One            Wed, Apr 28  After the Bell      0.38
EQR    Equity Residential    Wed, Apr 28  -----N/A-----       0.52
ESS    Essex Property Trust  Wed, Apr 28  After the Bell      1.04
ESRX   Express Scripts, Inc. Wed, Apr 28  After the Bell      0.88
FSH    Fisher Scientific IntlWed, Apr 28  After the Bell      0.57
FLR    Fluor Corp            Wed, Apr 28  After the Bell      0.52
FMC    FMC Corp              Wed, Apr 28  After the Bell      0.27
FMT    Fremont General       Wed, Apr 28  Before the Bell      N/A
FBN    Furniture Brands      Wed, Apr 28  After the Bell      0.56
GRMN   Garmin Ltd.           Wed, Apr 28  Before the Bell     0.37
GGP    Genl Grwth Prop Inc   Wed, Apr 28  -----N/A-----       0.60
GGB    Gerdau S.A.           Wed, Apr 28  -----N/A-----       0.72
GSF    GlobalSantaFe Corp.   Wed, Apr 28  Before the Bell     0.02
EKT    Grupo Elektra S.A.    Wed, Apr 28  After the Bell       N/A
TV     Grupo Televisa, S.A.  Wed, Apr 28  -----N/A-----       0.35
HAL    Halliburton Co        Wed, Apr 28  Before the Bell     0.30
HMY    Harmony Gold Mining   Wed, Apr 28  Before the Bell     0.04
HTV    Hearst-Argyle Tele    Wed, Apr 28  Before the Bell     0.17
HLT    Hilton Hotels Corp    Wed, Apr 28  Before the Bell     0.06
HIT    Hitachi Limited       Wed, Apr 28  -----N/A-----        N/A
HMT    Host Marriott         Wed, Apr 28  Before the Bell     0.15
ITY    Imperial Tobacco GroupWed, Apr 28  Before the Bell      N/A
IMDC   INAMED                Wed, Apr 28  After the Bell      0.45
NDE    IndyMac Bancorp, Inc. Wed, Apr 28  Before the Bell     0.70
INSP   InfoSpace             Wed, Apr 28  After the Bell      0.18
INGP   Instinet Group Inc    Wed, Apr 28  Before the Bell     0.04
JNS    Janus Capital Group   Wed, Apr 28  Before the Bell     0.18
JDSU   JDS Uniphase Corp     Wed, Apr 28  After the Bell     -0.01
KEA    Keane                 Wed, Apr 28  Before the Bell     0.13
KMG    Kerr-McGee            Wed, Apr 28  -----N/A-----       1.34
LPX    LP Corp               Wed, Apr 28  -----N/A-----       1.26
LSI    LSI Logic             Wed, Apr 28  -----N/A-----       0.05
MACR   Macromedia            Wed, Apr 28  After the Bell      0.15
MC     Mtssht Elctrc Indl    Wed, Apr 28  -----N/A-----        N/A
WFR    MEMC Electronic Mat   Wed, Apr 28  -----N/A-----       0.14
MX     Metso Corp            Wed, Apr 28  -----N/A-----        N/A
MLNM   Millennium Pharm      Wed, Apr 28  After the Bell     -0.20
MUR    Murphy Oil Corp       Wed, Apr 28  After the Bell      0.97
NOI    Natl Oilwell          Wed, Apr 28  Before the Bell     0.27
NIPNY  NEC (ADR)             Wed, Apr 28  -----N/A-----        N/A
NJR    New Jersey Resources  Wed, Apr 28  -----N/A-----       1.50
NEM    Newmont Mining Corp   Wed, Apr 28  Before the Bell     0.35
NXTP   Nextel Partners       Wed, Apr 28  Before the Bell     0.01
NMR    Nomura Holdings, Inc. Wed, Apr 28  -----N/A-----        N/A
ONNN   ON Semicon Corp       Wed, Apr 28  After the Bell      0.00
OKE    ONEOK Inc.            Wed, Apr 28  -----N/A-----       1.07
POG    Patina Oil & Gas      Wed, Apr 28  After the Bell      0.54
PD     Phelps Dodge          Wed, Apr 28  -----N/A-----       1.81
PAA    Plains All Am PipelineWed, Apr 28  Before the Bell     0.35
PX     Praxair Inc           Wed, Apr 28  Before the Bell     0.46
QLGC   QLogic                Wed, Apr 28  After the Bell      0.36
RYN    Rayonier Inc.         Wed, Apr 28  After the Bell      0.27
RNWK   RealNetworks          Wed, Apr 28  After the Bell     -0.04
O      Realty Income Corp    Wed, Apr 28  -----N/A-----       0.77
REG    REGENCY CTRS CORP     Wed, Apr 28  After the Bell      0.67
RSG    Republic Services     Wed, Apr 28  After the Bell      0.34
ROL    Rollins, Inc.         Wed, Apr 28  Before the Bell     0.19
ROP    Roper Ind             Wed, Apr 28  After the Bell      0.46
SEE    Sealed Air            Wed, Apr 28  -----N/A-----       0.58
SI     Siemens AG            Wed, Apr 28  Before the Bell      N/A
SWKS   Skyworks              Wed, Apr 28  After the Bell      0.04
SO     Southern Co           Wed, Apr 28  Before the Bell     0.37
SUG    Southern Union Co     Wed, Apr 28  Before the Bell     1.02
STA    St. Paul Travelers    Wed, Apr 28  After the Bell      1.05
SRCL   Stericycle            Wed, Apr 28  After the Bell      0.40
SEO    Stora Enso            Wed, Apr 28  -----N/A-----       0.03
SYMC   Symantec              Wed, Apr 28  After the Bell      0.34
TCO    Taubman Centers       Wed, Apr 28  After the Bell      0.45
TDK    TDK                   Wed, Apr 28  -----N/A-----        N/A
TE     TECO Energy Inc.      Wed, Apr 28  Before the Bell     0.19
TDS    Telephone Data        Wed, Apr 28  -----N/A-----       0.60
TLSN   TeliaSonera AB        Wed, Apr 28  -----N/A-----        N/A
BA     The Boeing Co         Wed, Apr 28  -----N/A-----       0.43
EL     The Estie Lauder Co   Wed, Apr 28  Before the Bell     0.35
SVM    The ServiceMaster Co  Wed, Apr 28  Before the Bell     0.03
TWX    Time Warner Inc.      Wed, Apr 28  After the Bell      0.09
USM    U.S. Cellular         Wed, Apr 28  -----N/A-----       0.29
UL     Unilever PLC          Wed, Apr 28  Before the Bell      N/A
UMC    United Microelect     Wed, Apr 28  -----N/A-----       0.05
UCL    Unocal                Wed, Apr 28  -----N/A-----       0.80
VLO    Valero Energy Corp.   Wed, Apr 28  -----N/A-----       1.75
VAR    Varian Medical Sys IncWed, Apr 28  After the Bell      0.57
VARI   Varian, Inc.          Wed, Apr 28  After the Bell      0.39
VTR    Ventas                Wed, Apr 28  After the Bell      0.41
VMC    Vulcan Materials      Wed, Apr 28  After the Bell      0.12
WAT    Waters Corp           Wed, Apr 28  Before the Bell     0.34
WON    Westwood One          Wed, Apr 28  Before the Bell     0.18
WGL    WGL Holdings          Wed, Apr 28  After the Bell      1.50
WSH    Willis Grp Hldngs Ltd Wed, Apr 28  After the Bell      0.86
XEL    Xcel Energy           Wed, Apr 28  Before the Bell     0.32
ZBRA   Zebra Technologies    Wed, Apr 28  Before the Bell     0.52


------------------------- THUSDAY -----------------------------

AD     ADVO                  Thu, Apr 15  After the Bell      0.41
ABB    ABB                   Thu, Apr 29  Before the Bell      N/A
ASX    Adv Semicon Eng       Thu, Apr 29  -----N/A-----       0.07
AET    Aetna Inc.            Thu, Apr 29  -----N/A-----       1.72
AC     Alliance Cap Holding  Thu, Apr 29  After the Bell      0.57
AAA    Altana AG             Thu, Apr 29  -----N/A-----        N/A
AEE    Ameren Corp           Thu, Apr 29  Before the Bell     0.46
AEP    Am Electric Power     Thu, Apr 29  Before the Bell     0.61
APCC   Am Power Conversion   Thu, Apr 29  After the Bell      0.19
AGP    AMERIGROUP Corp       Thu, Apr 29  After the Bell      0.69
AMIS   AMIS HLDGS INC        Thu, Apr 29  After the Bell      0.14
ANDW   ANDREW CORP           Thu, Apr 29  Before the Bell     0.11
AU     Anglogold Limited     Thu, Apr 29  Before the Bell     0.34
ASN    Archstone-Smith Trust Thu, Apr 29  Before the Bell     0.45
AZN    AstraZeneca PLC       Thu, Apr 29  Before the Bell     0.53
AN     AutoNation            Thu, Apr 29  Before the Bell     0.30
AVE    Aventis               Thu, Apr 29  -----N/A-----       0.89
AVT    Avnet                 Thu, Apr 29  After the Bell      0.27
BLL    Ball Corp             Thu, Apr 29  Before the Bell     0.78
STD    Banc Sntndr Cntrl HspnThu, Apr 29  Before the Bell      N/A
BF     BASF                  Thu, Apr 29  -----N/A-----        N/A
BMC    BMC Software          Thu, Apr 29  Before the Bell     0.23
BAK    Braskem, S.A.         Thu, Apr 29  -----N/A-----        N/A
BG     BUNGE LIMITED         Thu, Apr 29  Before the Bell     0.44
BOBJ   Business Objects      Thu, Apr 29  After the Bell      0.15
COG    Cabot Oil & Gas Corp  Thu, Apr 29  After the Bell      0.54
CRE    Carramerica Rlty Corp Thu, Apr 29  After the Bell      0.77
CDX    Catellus Development  Thu, Apr 29  After the Bell      0.38
CBI    Chicago Bridge & Iron Thu, Apr 29  Before the Bell     0.28
CSB    Ciba Spec Chem Hldng  Thu, Apr 29  -----N/A-----       0.50
CDL    Citadel Broadcasting  Thu, Apr 29  Before the Bell    -0.05
CNA    CNA Finl Corp         Thu, Apr 29  Before the Bell     0.58
COLM   Columbia Sportswear   Thu, Apr 29  After the Bell      0.42
CHR    Converium Holding     Thu, Apr 29  Before the Bell      N/A
COX    Cox Communications IncThu, Apr 29  Before the Bell     0.05
DADE   Dade Behring          Thu, Apr 29  After the Bell      0.34
DCX    DaimlerChrysler       Thu, Apr 29  -----N/A-----       0.67
DASTY  Dassault Systemes SA  Thu, Apr 29  -----N/A-----       0.25
DLX    Deluxe Corp           Thu, Apr 29  Before the Bell      N/A
DDR    DVLPRS DVRSFD RLTY    Thu, Apr 29  After the Bell      0.68
DP     Diagnostic Products   Thu, Apr 29  Before the Bell     0.51
DTC    Domtar Inc.           Thu, Apr 29  -----N/A-----        N/A
DUK    Duke Energy Corp      Thu, Apr 29  Before the Bell     0.37
DQE    Duquesne Light Hldngs Thu, Apr 29  After the Bell      0.25
EMN    Eastman Chemical Co   Thu, Apr 29  After the Bell      0.33
XOM    ExxonMobil Corp       Thu, Apr 29  -----N/A-----       0.74
FIC    Fair Isaac Corp       Thu, Apr 29  After the Bell      0.42
FFH    Fairfax Finl Holdings Thu, Apr 29  After the Bell      2.67
FNF    Fidelity Natl Finl    Thu, Apr 29  Before the Bell     0.81
FLA    Florida East Coast IndThu, Apr 29  Before the Bell     0.14
FDRY   Foundry Networks      Thu, Apr 29  -----N/A-----       0.17
GTW    Gateway, Inc.         Thu, Apr 29  -----N/A-----      -0.20
GNTA   Genta                 Thu, Apr 29  -----N/A-----      -0.21
GGC    Georgia Gulf          Thu, Apr 29  After the Bell      0.55
GP     Georgia-Pacific       Thu, Apr 29  -----N/A-----       0.59
GSK    GlaxoSmithKline       Thu, Apr 29  -----N/A-----       0.69
GR     Goodrich Corp         Thu, Apr 29  Before the Bell     0.36
GRP    Grant Prideco Inc     Thu, Apr 29  Before the Bell     0.08
HC     Hanover Compressor    Thu, Apr 29  Before the Bell    -0.05
IKN    Ikon Office Solutions Thu, Apr 29  Before the Bell     0.20
ICI    Imperial Chemical Ind Thu, Apr 29  Before the Bell     0.24
IM     Ingram Micro          Thu, Apr 29  After the Bell      0.24
IDC    Interactive Data Corp Thu, Apr 29  Before the Bell     0.19
IFF    Intl Flavors & Frag   Thu, Apr 29  -----N/A-----       0.52
IRF    Intl Rectifier        Thu, Apr 29  After the Bell      0.40
ISG    Intl Steel Group Inc. Thu, Apr 29  Before the Bell     0.51
IRM    Iron Mountain Inc     Thu, Apr 29  Before the Bell     0.25
IVX    Ivax                  Thu, Apr 29  Before the Bell     0.18
KROL   Kroll Inc.            Thu, Apr 29  Before the Bell     0.30
LANC   Lancaster Colony Corp Thu, Apr 29  -----N/A-----       0.50
LVLT   Level 3 CommunicationsThu, Apr 29  -----N/A-----      -0.30
TVL    LIN TV Corp.          Thu, Apr 29  Before the Bell     0.03
LIZ    Liz Claiborne         Thu, Apr 29  -----N/A-----       0.62
LTR    Loews Corp.           Thu, Apr 29  Before the Bell     1.35
MXICY  Macronix Intl         Thu, Apr 29  -----N/A-----        N/A
MKL    MARKEL CORP           Thu, Apr 29  -----N/A-----       4.63
MCK    McKesson Corp         Thu, Apr 29  After the Bell      0.66
MRX    Medicis               Thu, Apr 29  After the Bell      0.31
MGM    Metro-Goldwyn-Mayer   Thu, Apr 29  -----N/A-----      -0.08
MTD    Mettler-Toledo Intl   Thu, Apr 29  After the Bell      0.39
MTX    MINERALS TECHNOLOGIES Thu, Apr 29  After the Bell      0.63
NBG    Natl Bank of Greece   Thu, Apr 29  Before the Bell      N/A
NCR    NCR Corp              Thu, Apr 29  Before the Bell    -0.12
NKTR   NEKTAR THERAPEUTICS   Thu, Apr 29  -----N/A-----      -0.39
NWL    Newell Rubbermaid     Thu, Apr 29  Before the Bell     0.18
NFX    Newfield Exploration  Thu, Apr 29  Before the Bell     1.36
GAS    Nicor Inc.            Thu, Apr 29  After the Bell      0.93
NIHD   NII Holdings          Thu, Apr 29  Before the Bell     0.40
NST    NSTAR                 Thu, Apr 29  -----N/A-----       0.79
ORH    Odyssey Re Holdings   Thu, Apr 29  After the Bell      0.50
OLN    Olin                  Thu, Apr 29  After the Bell      0.07
OCR    Omnicare              Thu, Apr 29  Before the Bell     0.61
OHP    Oxford Health Plans   Thu, Apr 29  Before the Bell     1.00
PHS    PacifiCare Health Sys Thu, Apr 29  -----N/A-----       0.63
PTEN   Patterson-UTI Energy  Thu, Apr 29  Before the Bell     0.26
PRX    Pharmaceutical Res    Thu, Apr 29  Before the Bell     0.80
PT     Portugal Telecom SGPS Thu, Apr 29  -----N/A-----        N/A
PDS    Precision Drilling    Thu, Apr 29  Before the Bell     1.22
PCO    Premcor Inc.          Thu, Apr 29  Before the Bell     0.68
PDE    Pride Intl Inc.       Thu, Apr 29  After the Bell      0.03
PLD    ProLogis Trust        Thu, Apr 29  -----N/A-----       0.53
PEG    PSEG                  Thu, Apr 29  Before the Bell     1.16
STR    Questar.com           Thu, Apr 29  -----N/A-----       0.87
ROIAK  Radio One             Thu, Apr 29  Before the Bell     0.02
RTN    Raytheon              Thu, Apr 29  Before the Bell     0.22
RDA    READERS DIGEST ASSN   Thu, Apr 29  Before the Bell     0.01
RGA    Reins Group of AmericaThu, Apr 29  After the Bell      0.83
ROH    Rohm and Haas Co      Thu, Apr 29  Before the Bell     0.44
RD     Ryl Dtch Petro Co     Thu, Apr 29  -----N/A-----       1.06
SRE    Sempra Energy         Thu, Apr 29  Before the Bell     0.69
SC     Shell Trnsprt and TradThu, Apr 29  -----N/A-----       0.91
SHW    Sherwin-Williams      Thu, Apr 29  -----N/A-----       0.34
SHPGY  Shire Pharm Group     Thu, Apr 29  Before the Bell     0.42
SPIL   SLCNWR PRCSN INDS     Thu, Apr 29  -----N/A-----       0.08
SKM    SK Telecom            Thu, Apr 29  -----N/A-----        N/A
SKE    Spinnaker Exploration Thu, Apr 29  -----N/A-----       0.40
SM     St. Mary Land Explor  Thu, Apr 29  After the Bell      0.68
SWC    Stillwater Mining Co  Thu, Apr 29  After the Bell      0.15
SLF    Sun Life Finl Inc.    Thu, Apr 29  -----N/A-----        N/A
SU     Suncor Energy         Thu, Apr 29  Before the Bell      N/A
TARO   Taro Pharmaceutical   Thu, Apr 29  -----N/A-----       0.53
TNE    Tele No Leste Partic  Thu, Apr 29  Before the Bell     0.19
TELK   Telik, Inc.           Thu, Apr 29  After the Bell     -0.42
DOW    The Dow Chemical Co   Thu, Apr 29  Before the Bell     0.43
G      The Gillette Co       Thu, Apr 29  Before the Bell     0.29
UNP    Union Pacific         Thu, Apr 29  -----N/A-----       0.59
USTR   United Stationers Inc Thu, Apr 29  After the Bell      0.72
UNA    UNOVA Inc.            Thu, Apr 29  After the Bell      0.02
USON   US Oncology           Thu, Apr 29  Before the Bell     0.20
VSEA   Varian Semicon Eq Ass Thu, Apr 29  After the Bell      0.37
VVI    Viad Corp             Thu, Apr 29  -----N/A-----       0.32
WDR    Waddell & Reed Finl   Thu, Apr 29  Before the Bell     0.35
WMI    Waste Mgmt            Thu, Apr 29  Before the Bell     0.26
WCI    WCI Communities, Inc. Thu, Apr 29  -----N/A-----       0.15


------------------------- FRIDAY -------------------------------

ALA    Alcatel               Fri, Apr 30  -----N/A-----       0.09
AGN    Allergan              Fri, Apr 30  -----N/A-----       0.59
LNT    Alliant Energy        Fri, Apr 30  Before the Bell     0.20
AXL    Am Axle & Manu Hldngs Fri, Apr 30  Before the Bell     0.92
APC    Anadarko Petroleum    Fri, Apr 30  Before the Bell     1.41
ADM    Archer Daniels MidlandFri, Apr 30  Before the Bell     0.27
AVP    Avon Products Inc.    Fri, Apr 30  Before the Bell     0.59
BIIB   Biogen Idec Inc.      Fri, Apr 30  Before the Bell     0.34
BNN    BRASCAN CORP          Fri, Apr 30  -----N/A-----       0.50
CVX    ChevronTexaco         Fri, Apr 30  Before the Bell     2.01
CI     CIGNA                 Fri, Apr 30  Before the Bell     1.83
EDP    Elec de Portugal, S.A.Fri, Apr 30  Before the Bell      N/A
FUJIY  Fuji Photo Film       Fri, Apr 30  -----N/A-----        N/A
HR     Healthcare Rlty Trst  Fri, Apr 30  -----N/A-----       0.70
HME    Home Properties, Inc. Fri, Apr 30  Before the Bell     0.61
THX    Houston Exploration   Fri, Apr 30  Before the Bell     1.18
KSE    KeySpan               Fri, Apr 30  Before the Bell     1.49
MLS    Mills Corp            Fri, Apr 30  Before the Bell     0.85
NTE    Nam Tai Electronics   Fri, Apr 30  After the Bell       N/A
NI     NiSource              Fri, Apr 30  Before the Bell     0.87
NVO    Novo-Nordisk          Fri, Apr 30  Before the Bell      N/A
PG     Procter & Gamble Co   Fri, Apr 30  Before the Bell     1.08
SPW    SPX                   Fri, Apr 30  Before the Bell     0.48
WPO    The Washington Post CoFri, Apr 30  -----N/A-----       5.91
TSM    TSMC                  Fri, Apr 30  -----N/A-----       0.12
VRC    Varco Intl, Inc.      Fri, Apr 30  Before the Bell     0.19
WIN    Winn-Dixie Stores     Fri, Apr 30  Before the Bell    -0.07


----------------------------------------------
Upcoming Stock Splits In The Next Two Weeks...
----------------------------------------------

Symbol  Co Name              Ratio    Payable     Executable

ARO     Aeropostale, Inc          3:2      Apr  26th   Apr  27th
BKST    Brookstone, Inc           3:2      Apr  26th   Apr  27th
NSSC    NAPCO Security Systems    2:1      Apr  27th   Apr  28th
OMTL    Omtool, Ltd               2:1      Apr  27th   Apr  28th
UCBI    United Community Banks    3:2      Apr  28th   Apr  29th
TASR    TASER Intl                2:1      Apr  29th   Apr  30th
TCBK    TriCo Bancshares          2:1      Apr  30th   May   3rd
KENT    Kent Financial Serv, Inc  2:1      May   3rd   May   4th
LACO    Lakes Entertainment, Inc  2:1      May   3rd   May   4th
TLM     Talisman Energy Inc       3:1      May   4th   May   5th
RBA     Ritchie Bros. Auctioneers 2:1      May   4th   May   5th
BEBE    bebe stores, Inc          3:2      May   5th   May   6th


--------------------------
Economic Reports This Week
--------------------------

Markets will be digesting the second big week of Q1 earnings
reports on top of a host of economic data.  It's a busy schedule
with Wednesday the only day without economic reports.  Also
listen for more talk from the Fed heads.


==============================================================
                       -For-

----------------
Monday, 04/26/04
----------------
New Home Sales (DM)        Mar  Forecast:   1168K  Previous:    1163K
Fed Governor Moskow speaks.

-----------------
Tuesday, 04/27/04
-----------------
Consumer Confidence (DM)   Apr  Forecast:    88.3  Previous:     88.3
Existing Home Sales (DM)   Mar  Forecast:   6.20M  Previous:    6.12M
Fed Governor Greenspan speaks in Washington.

-------------------
Wednesday, 04/28/04
-------------------
None


------------------
Thursday, 04/29/04
------------------
Initial Claims (BB)      04/24  Forecast:     N/A  Previous:     353K
GFP-Adv. (BB)               Q1  Forecast:    5.0%  Previous:     4.1%
Chain Deflator-Adv. (BB)    Q1  Forecast:    2.0%  Previous:     1.5%
Employement Cost Index (BB) Q1  Forecast:    0.9%  Previous:     0.7%
Help-Wanted Index (DM)     Mar  Forecast:      41  PRevious:       40


----------------
Friday, 04/30/04
----------------
Personal Inmcome (BB)      Mar  Forecast:    0.4%  Previous:     0.4%
Personal Spending (BB)     Mar  Forecast:    0.7%  Previous:     0.2%
Mich Sentiment-Rev (DM)    Apr  Forecast:    94.0  Previous:     93.2
Chicago PMI (DM)           Apr  Forecast:    60.3  Previous:     57.6
Fed Governor Parry speaks.


Definitions:
DM=  During the Market
BB=  Before the Bell
AB=  After the Bell
NA=  Not Available


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

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


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                   Sunday 04-25-2004
Sunday                                                      2 of 5

In Section Two:

Watch List: What to Watch Next Week
Dropped Calls: None
Dropped Puts: None


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

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


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

What to Watch Next Week

___________________________________________________________________

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.
___________________________________________________________________


Kimberly Clark - KMB - close: 65.94 change: +0.26

WHAT TO WATCH: KMB just recently announced earnings that were in-
line with expectations but investors are rewarding the stock
anyway.  The rally above $65.00 is a big breakout over resistance
and traders bought the dip to $64.90 on Friday.  The next logical
target for the bulls is the $70.00 mark but be aware that there
is some resistance in the $66-67 region from April-May 2002.

Chart=


---

Eaton Corp - ETN - close: 60.95 change: -0.10

WHAT TO WATCH: ETN has been slowly climbing higher since
announcing earnings in mid-April that beat analysts'
expectations.  The stock is once again above the $60.00 level but
has overhead resistance in the $62.00-62.50 range.  Traders can
also note that a move over $62.00 should produce a new bullish
buy signal on its P&F chart.  With earnings out of the way a
trigger over resistance might be a good play.

Chart=


---

Navistar Corp - NAV - close: 48.38 change: -1.26

WHAT TO WATCH: The automakers and auto parts sectors have been
doing pretty well lately.  Unfortunately for NAV the stock is
still struggling with resistance at $50.00.  We'd keep NAV on the
watch list for a breakout over resistance at $50.00.  More
aggressive traders can try and buy dips/bounces from its 50-dma
near $47.00 but watch out.  Right now its technicals are starting
to look weak and the stock is currently on a P&F sell signal.

Chart=


---

Global Payments - GPN - close: 50.84 change: -0.29

WHAT TO WATCH: Here's another bullish stock that has recently
broken out above major resistance near $50.00.  Shares dipped
back towards this level on Friday but as is typically the case
old resistance becomes new support and traders bought the dip.
The rally is starting to get a little long in the tooth from its
breakout above $45 in late March to early April so consider the
simple 10-dma as a guide to place stops.

Chart=



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

VAR $92.13 +0.05 - The breakout over $90.00 looks great and bulls
can target a run to $100 but watch out for earnings on April
28th.

CME $118.85 +1.65 - The strength in shares of CME has been
incredible.  The stock looks ready to breakout over $120 but be
careful.  A pull back to the 10-dma is probably a better entry
point.

HAR $85.69 -0.71 - We're still keeping an eye on HAR and its
recent breakout above $85.00.  Earnings are expected on April
28th.

PCAR $59.74 -0.08 - PCAR looks like a great candidate on a
breakout above resistance at $60.00 but earnings are April 27th.


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

No time to follow the Market Monitor? Tired of missing good Trades
because you stepped away from your computer?

OneStopOption Group can follow the Market Monitor for you. You
choose the number of contracts, we take care of the rest!!

Trade Stock Options, Stocks and ALL Futures with the same Group.
Call us 888 281-9569 to see if you qualify to have us rebate your
subscription cost.

http://www.OneStopOption.com

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


**************************
PICKS WE DROPPED THIS WEEK
**************************

Remember that historically, when we drop a pick it will go up
10 to 15% the very next week. It is part of Murphy's Law.
Just because we drop a stock as a pick does not mean we are
advocating a "sell" on any position you have. We are simply
dropping our recommendation as a new play. Existing plays
can and do continue on and are usually profitable.


CALLS
^^^^^

None


PUTS
^^^^

None


***********
DEFINITIONS
***********

SL  = Suggested stop loss. Sell if bid breaks this price.
OI  = Open Interest - the number of open contracts outstanding.
ITM = In the money
ATM = At the money
OTM = Out of the money
ADV = Average Daily Volume

The options with a "*" by the strike price are our choices from the
group. If the stock moves as expected we feel they have the best
chance to substantially increase or double in price with the best
risk/reward ratio compared to the other options for the same stock.
You must determine if they fit your risk profile for time and price.

RISKS of SELLING PUTS:
The risk of selling naked puts is always the possibility
of a catastrophic event that drops the stock below the
strike price and could result in the stock being PUT to you.
Always protect yourself with a "buy to cover" limit order
to take you out before this can happen.


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

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


**********
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                   Sunday 04-25-2004
Sunday                                                      3 of 5

In Section Three:

Current Calls: BBY, BEC, MIK, MBG, UOPX, WFMI, ZBRA
New Calls: BWA, DGX
Current Put Plays: AMG, QLGC
New Puts: COF


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

OneStopOption.com

Trade: Securities, Stock Options, Futures Contracts

Service: Experienced Brokers
         Personal Assistance
         Convenience of One Brokerage
         Online and Live Broker Trading

Experience...  The Difference

OneStopOption.com   888-281-9569

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


******************
CURRENT CALL PLAYS
******************

Best Buy Co - BBY - close: 55.50 change: +0.55 stop: 51.99

Company Description:
Minneapolis-based Best Buy Co., Inc. is North America's leading
specialty retailer of consumer electronics, personal computers,
entertainment software and appliances. The Company's subsidiaries
operate retail stores and/or Web sites under the names: Best Buy
(BestBuy.com), Future Shop (FutureShop.ca), Geek Squad
(GeekSquad.com), and Magnolia Audio Video (Magnoliaav.com). The
Company's subsidiaries reach consumers through more than 750
stores in the United States and Canada. (source: company press
release)

Why We Like It: (original play from Thursday)
On your mark.  Get set.  Go!  The RLX retail index has rallied
right to resistance and looks poised to breakout to new all-time
highs.  This also looks like a good chance to capture a similar
move in BBY as it readies itself for a breakout over resistance
at $55.00.  You may remember that BBY reported earnings on March
31st.  The numbers were strong and the stock gapped up above
resistance at $50.00 and its simple 200-dma.  It has spent the
last three weeks consolidating those gains and building what
appears to be a reverse head and shoulders pattern.

We're going to use a TRIGGER at $55.05 to capture a breakout over
resistance.  Such a move would be a bullish breakout of its
reverse H&S pattern and produce a triple-top buy signal on its
P&F chart.  If the H&S pattern holds true then bulls can target a
run to the $65.00 level.  However, our first target is a much
more reasonable move to resistance at $60.00.

Weekend Update:
Perfect!  The RLX retail index broke out to a new all-time high
on Friday and BBY followed suit with a breakout of its own over
resistance at $55.00.  We were triggered at $55.05.  This move
also produces a bullish breakout from the H&S pattern.


Suggested Options:
Short-term traders can choose between the May and June options.
Our choice is probably the June 55s or the May 50s.

BUY CALL MAY 50 BBY-EJ OI= 5147 at $6.00 SL=3.75
BUY CALL MAY 55 BBY-EK OI=16753 at $2.10 SL=1.05
BUY CALL JUN 55 BBY-FK OI=12035 at $3.30 SL=1.65

Annotated Chart:



Picked on April 23 at $ 55.05
Change since picked:   + 0.45
Earnings Date        03/31/04 (confirmed)
Average Daily Volume:     3.6 million
Chart =


---

Beckman Coulter - BEC - cls: 57.16 chg: -0.79 stop: 54.75

Company Description:
Beckman Coulter, Inc. is a leading manufacturer of biomedical
testing instrument systems, tests and supplies that simplify and
automate laboratory processes. Spanning the biomedical testing
continuum -- from systems biology and clinical research to
laboratory diagnostics and point-of-care testing -- Beckman
Coulter's 200,000 installed systems provide essential biomedical
information to enhance health care around the world. The company,
based in Fullerton, Calif., reported 2003 annual sales of $2.2
billion with 64 percent of this amount generated by recurring
revenue from supplies, test kits and services.
(source: company press release)

Why We Like It:
The market-powered surge on Thursday to a new all-time high after
three days of consolidation above $56 looks great.  Frankly,
considering the run from BEC's March low a little bit of profit
taking on Friday was not unexpected.  Our Thursday update
suggested traders look for dips to $56 or $57 as possible entry
points.  BEC dipped to $56.65 before bouncing into the close.
This could be another entry point but if you're the patient type
we might see BEC pull back to its simple 10-dma currently near
$56.  Chart readers will note that all of BEC's technical
oscillators are overbought.  Thus it wouldn't take much for them
to roll over into bearish signals so we need to be vigilant with
our stop losses.  Remember that our short-term target is $60.00.

Suggested Options:
This is a short-term play before BEC reports earnings in early
May so we don't see a need to buy the longer-term calls.  The May
strikes should work fine.  Our favorite is the May 55s.

BUY CALL MAY 50 BEC-EJ OI=2016 at $7.60 SL=4.85
BUY CALL MAY 55*BEC-EK OI= 969 at $3.20 SL=1.65

Annotated Chart:




Picked on April 18 at $ 56.16
Change since picked:   + 1.00
Earnings Date        05/03/04 (confirmed)
Average Daily Volume:     333 thousand
Chart =


---

Michaels Stores - MIK - cls: 51.98 chng: -0.33 stop: 48.50*new*

Company Description:
Michaels Stores, Inc. is an arts and crafts specialty retailer
providing materials, ideas and education for creative activities.
The company operates 770 Michaels retail stores in 48 states, as
well as in Canada.  The stores offer products for the do-it-
yourself home decorator and arts and crafts supplies.  The
company also operates 153 Aaron Brothers stores in nine states,
offering photo frames, a full line of ready-made frames, custom
framing services and a wide selection of art supplies.  In
addition, the Company owns and operates Star Wholesale, a single-
store wholesale operation located in Dallas, Texas, offering
merchandise primarily to interior decorators/designers,
wedding/event planners, florists, hotels, restaurants and
commercial display companies. Michaels also owns and operates
Artistree, a vertically integrated frame and molding
manufacturing operation that supplies molding and framing to the
Michaels and Aaron Brothers stores nationwide.

Why we like it:
The rally in shares of MIK is following a familiar and very
encouraging pattern of breaking out, pausing and then continuing
the upward journey.  Obviously it can't continue indefinitely,
but last week's breakout over the $50 level put the stock at all-
time highs and at least for now it looks like the bulls are
firmly in control.  Friday's session was largely forgettable for
the broad market and doubly so for MIK, as the stock traded in a
very narrow range on barely half the average volume.  Certainly,
a pullback to find support near the $50 level is possible, and if
followed by a rebound from that former-resistance-turned-support,
it would make for a very nice entry point.  Support there should
be that much stronger due to the fact that it is backed up by the
10-dma ($50.35), which served as solid support to launch last
week's breakout move.  With daily oscillators now buried in
overbought, that increases the likelihood of at least a token
pullback or consolidation next week, diminishing our appetite for
breakout entries at this altitude.  Wait for the pullback for
initiating new positions.  We're inching our stop up to $48.50
this weekend, which is now below the 30-dma ($48.73) as well as
the horizontal consolidation that preceded last week's breakout.

Suggested Options:
Shorter Term: The May $50 Call will offer short-term traders the
best return on an immediate move, as it is currently in the
money.

Longer Term: Aggressive longer-term traders can use the June $55
Call, while the more conservative approach will be to use the
June $50 Call.  Our preferred option is the June $50 strike, as
it is currently in the money and should provide sufficient time
for the play to move in our favor ahead of earnings.

BUY CALL MAY-50 MIK-EJ OI= 390 at $2.65 SL=1.25
BUY CALL JUN-50*MIK-FJ OI= 633 at $3.40 SL=1.75
BUY CALL JUN-55 MIK-FK OI= 482 at $0.95 SL=0.50

Annotated Chart of MIK:



Picked on April 20th at      $51.23
Change since picked:          +0.75
Earnings Date               5/26/04 (confirmed)
Average Daily Volume =        423 K
Chart =


---

Mandalay Resort Group - MBG - cls: 60.55 chg: -0.47 stop: 58.99

Company Description:
Mandalay Resort Group owns and operates 11 properties in Nevada:
Mandalay Bay, Luxor, Excalibur, Circus Circus, and Slots-A-Fun in
Las Vegas; Circus Circus-Reno; Colorado Belle and Edgewater in
Laughlin; Gold Strike and Nevada Landing in Jean and Railroad
Pass in Henderson. The company also owns and operates Gold
Strike, a hotel/casino in Tunica County, Mississippi. The company
owns a 50% interest in Silver Legacy in Reno, and owns a 50%
interest in and operates Monte Carlo in Las Vegas. In addition,
the company owns a 50% interest in and operates Grand Victoria, a
riverboat in Elgin, Illinois, and owns a 53.5% interest in and
operates MotorCity in Detroit, Michigan.
(source: company press release)

Why We Like It: (Original play from Thursday)
America's economy is improving.  That much is clear.  So where
are American's going to spend their leisure time?  Many are
choosing to do it in Vegas with the dollar so weak overseas and
traveling to Vegas is perceived as safer than traveling overseas.
MBG broke out to new highs in March only to surge again in early
April with a positive earnings pre-announcement.  MBG said its
revenue per available room was rising strongly and slot machine
revenues were up nearly 30%.  The stock has spent the last two
weeks consolidating its gains but now looks ready to run higher
again with technical support at its 21-dma.

We're going to use a TRIGGER at $61.51 to open the play so we can
catch MBG breaking out over minor resistance at $61.50.  More
conservative traders might want to wait for a new high over
$62.20.  The stock is certainly long-term overbought, there is no
denying it but we'll start the play with a stop loss under
Wednesday's low (once we're triggered).  MBG doesn't announce
earnings for a while but look for several of its rivals to report
this week and turn in good news!

Weekend Update:
Not much change here in MBG from Thursday.  We are still not
triggered as we wait for MBG to trade ad $61.51 or above.

Suggested Options:
We like the June calls.  Our favorite would be the June 60s.

BUY CALL JUN 60 MBG-FL OI= 862 at $3.30 SL=1.70
BUY CALL JUN 65 MBG-FM OI= 271 at $1.25 SL=0.65

Annotated Chart:



Picked on April xx at $ 00.00 <-- see TRIGGER
Change since picked:   + 0.00
Earnings Date        06/03/04 (unconfirmed)
Average Daily Volume:     1.1 million
Chart =


---

Univ. of Phoenix - UOPX - cls: 92.69 chng: -1.18 stop: 87.50

Company Description:
University of Phoenix Online is the computerized, digital
delivery system of the University of Phoenix.  It is a provider
of accessible, accredited educational programs for working
adults.  It began operations in 1989 by modifying courses
developed by University of Phoenix' physical campuses for
delivery via modem to students worldwide.  UOPX offers accredited
degree programs in business, education, information technology
and nursing.  A student can participate in UOPX's classes through
a Pentium-class personal computer, a 56.6K modem and an Internet
service provider.  Students retrieve lectures, questions and
assignments from instructors then review them offline. They also
have access to online research libraries and services, as well as
other professionals with whom they can share ideas, debate issues
and learn from each other's experience. University of Phoenix is
part of Apollo Group, Inc., the parent company of University of
Phoenix.

Why we like it:
After Thursday's strong upside performance, it was only natural
to expect a bit of a pullback in shares of UOPX and that's
precisely what occurred, helped along by the consolidation in the
broad market.  Given that Thursday's gain was nearly $4, the
pullback was mild and fortunately came on very light volume.
Similar price action was seen in APOL (UOPX's parent company),
although APOL did hold up a bit better.  Recall from our initial
write-up on the stock, that our preference for entry was to nab a
pullback, possibly to the $92 area, but preferably down near the
$90 level.  With support at that level reinforced by the 10-dma
($90.48) and the 20-dma ($89.56), a bounce should be forthcoming
if we do see a dip to that area.  That isn't to say that breakout
entries over $94 aren't viable, but that we'd prefer to see a
pullback to support before chasing the stock higher.  Once back
into new high territory above $94, we're looking for a continued
rally towards psychological resistance at $100.  Maintain stops
at $87.50 for now.

Suggested Options:
Shorter Term: The May $90 Call will offer short-term traders the
best return on an immediate move, as it is currently in the
money.

Longer Term: Aggressive longer-term traders can use the June $95
Call, while the more conservative approach will be to use the
June $90 Call.  Our preferred option is the June $95 strike, as
it is currently just out of the money and should provide
sufficient time for the play to move in our favor.

BUY CALL MAY-90 UBY-ER OI= 108 at $4.70 SL=2.75
BUY CALL MAY-95 UBY-ES OI= 212 at $1.90 SL=1.00
BUY CALL JUN-95*UBY-FS OI=  26 at $3.90 SL=2.75

Annotated Chart of UOPX:



Picked on April 22nd at      $93.87
Change since picked:          -1.18
Earnings Date               3/12/04 (confirmed)
Average Daily Volume =        177 K
Chart =


---

Whole Foods Market - WFMI - cls: 80.52 chng: +1.27 stp:
77.90*new*

Company Description:
Whole Foods Market, Inc. owns and operates a chain of natural and
organic foods supermarkets in the United States.  As of September
28, 2003, it operated 145 stores in 26 states, the District of
Columbia and Canada.  Regional distribution centers, bakehouse
facilities, commissary kitchens, seafood processing facilities,
produce procurement centers and a coffee roasting operation
support the Company's stores.  WFMI's product selection has a
heavy emphasis on perishable foods designed to appeal to both
natural foods and gourmet shoppers.  Its product categories
include, but are not limited to, produce, seafood, grocery, meat
and poultry, bakery, prepared foods and catering, specialty
(beer, wine and cheese), whole body (nutritional supplements,
vitamins, body care and educational products such as books),
floral, pet products and household products.

Why we like it:
Somebody forgot to tell WFMI investors that the market was in
consolidation mode on Friday.  After stalling near the $80 level
for the past few sessions, the stock blasted through that
potential resistance and closed at new all-time highs, making
good on its recent hints at a real breakout.  If looking for the
cause behind Friday's strength, Moody's is the answer.  The
credit rating firm upgraded their view of all the company's debt
to Investment Grade.  Traders that took advantage of the breakout
move over the now-broken descending trendline near $76 are
sitting in good shape here and should have stops trailed to no
worse than break even.  There's just over a week to go before the
company releases its quarterly earnings results and investors
seem intent on driving the stock higher ahead of that report.
However, should a significant retracement develop, it's
questionable that there would be enough time for a renewed push
to new highs.  Aggressive traders can still consider entries on a
mild pullback near $79, but anything deeper than that should have
us looking for the exit.  In line with that thinking, we're
aggressively tightening our stop to $77.90, just under the
intraday lows of the past 3 sessions.

Suggested Options:
Shorter Term: The May $75 Call will offer short-term traders the
best return on an immediate move, as it is currently in the
money.

Longer Term: Aggressive longer-term traders can use the May $80
Call, while the more conservative approach will be to use the
June strike.  Our preferred option is the May $80 strike, as it
is currently at the money and should provide sufficient time for
the play to move in our favor ahead of earnings.

BUY CALL MAY-75 FMQ-EO OI= 706 at $6.60 SL=4.50
BUY CALL MAY-80*FMQ-EP OI=1252 at $3.00 SL=1.50
BUY CALL JUN-80 FMQ-FP OI=  27 at $4.00 SL=2.50

Annotated Chart of WFMI:



Picked on April 15th at      $76.01
Change since picked:          +4.51
Earnings Date               5/05/04 (confirmed)
Average Daily Volume =        698 K
Chart =


---

Zebra Technologies - ZBRA - cls: 74.11 chg: -1.77 stop: 72.50

Company Description:
Zebra Technologies Corp. delivers innovative and reliable on-
demand printing solutions for business improvement and security
applications in 90 countries around the world. More than 90
percent of Fortune 500 companies use Zebra-brand printers. A
broad range of applications benefit from Zebra-brand thermal bar
code, "smart" label, receipt, and card printers, resulting in
enhanced security, increased productivity, improved quality,
lower costs, and better customer service. The company has sold
more than three million printers, including RFID printer/encoders
and wireless mobile solutions, and also offers software,
connectivity solutions, and printing supplies.
(source: company press release)

Why We Like It:
Wednesday and Thursday produced a $5.00 move in ZBRA so it was
not too surprising to see some profit taking on Friday.
Hopefully the $74 level will hold and bulls can drive ZBRA even
higher ahead of its earnings report on Wednesday morning.  Given
our short timeframe we're going to set an official exit price of
$77.00.  However, we will be closing the play on Tuesday
afternoon/evening to avoid holding over the earnings announcement
on Wednesday.  We are not suggesting new positions at this time.

Suggested Options:
We only have two trading days left before ZBRA announces earnings
so we are not suggesting new positions at this time.

Annotated Chart:



Picked on April 11 at $ 73.26
Change since picked:   + 0.85
Earnings Date        04/28/04 (confirmed)
Average Daily Volume:     332 thousand
Chart =



**************
NEW CALL PLAYS
**************

Borg Warner - BWA - close: 89.15 change: -0.51 stop: 86.00

Company Description:
BorgWarner Inc. is a product leader in highly engineered
components and systems for vehicle powertrain applications
worldwide. The company operates manufacturing and technical
facilities in 43 locations in 14 countries. Customers include
Ford, DaimlerChrysler, General Motors, Toyota, Honda,
Hyundai/Kia, Caterpillar, Navistar International, Renault/Nissan,
Peugeot and VW/Audi. (source: company press release)

Why We Like It:
Regular readers will note that we've had BWA on and off the watch
list for quite a while now.  Now we think it's time for us
actually play it.  The company pre-announced better Q1 earnings
on April 8th and BWA delivered those earnings on Thursday, April
22nd.  Results were $1.82 per share, which was a penny better
than expected.  Revenues soared to $903.1 million, well above the
consensus estimates.  Normally, we don't like to trade stocks
this close to an earnings announcement but we're going to make an
exception for BWA since the stock could still see a pre-split run
up.  Shares are due to split 2-for-1 on May 18th.

To open the play we'll use a TRIGGER at $90.05.  This gives us a
chance to be patient and wait for BWA to breakout over resistance
at $90.00.  If triggered we'll use a stop loss at $86.00 although
the $87 level might work too.  Our first target will be the
February highs in the $96.00-96.50 range but bulls can probably
target the January highs near $98.50.  Of course if you're really
optimistic BWA's point-and-figure chart just produced a new buy
signal and points to a $102 price target.

Suggested Option:
May options still have four weeks left but we'd probably prefer
the June calls.  Our favorite will be the June 90s.

BUY CALL MAY 85 BWA-EQ OI=  77 at $4.90 SL=2.95
BUY CALL MAY 90 BWA-ER OI= 142 at $1.65 SL=0.85
BUY CALL JUN 90 BWA-FR OI= 115 at $2.95 SL=1.50
BUY CALL JUN 95 BWA-FS OI=  56 at $1.20 SL=0.65

Annotated Chart:



Picked on April xx at $ 00.00 <-- see TRIGGER
Change since picked:   + 0.00
Earnings Date        04/22/04 (confirmed)
Average Daily Volume:     275 thousand
Chart =


---

Quest Diagnostics - DGX - close: 86.15 change: +1.55 stop: 82.00

Company Description:
Quest Diagnostics was the result of a 1996 Corning spinoff, and
currently holds the title of the world's #1 clinical laboratory.
DGX performs more than 100 million routine tests annually,
including cholesterol, HIV, pregnancy, alcohol, and pap smear
tests.  Operating laboratories throughout the US and in Brazil,
Mexico, and the UK, DGX also performs esoteric testing (complex,
low-volume tests) and clinical trials.  The company serves
doctors, hospitals, HMOs, and other labs as well as corporations,
government agencies, and prisons.

Why we like it:
Over the past several weeks, we've been looking for some sign of
real strength from shares of DGX, as the stock certainly looked
like it wanted to make a move higher.  Unfortunately, we just
couldn't get the move we wanted ahead of the company's earnings
report and had to sit on our hands until that news event passed.
From the price action following the report, it is apparent that
we weren't the only ones waiting for earnings.  The company
clearly told investors what they wanted to hear Thursday morning,
as the stock shot higher on the news, ending the day just above
$84.  Proving that it wasn't just a one-day wonder, the stock
continued to move strongly higher on Friday, breaking out over
the $86 level and successfully closing at levels not seen since
the first half of 2002.  This play does come with added risk
though, since we're initiating it so soon after earnings.
There's the possibility that Friday's breakout could see some
initial profit taking, and we need to plan accordingly.

With that in mind, we should have in mind the possibility of a
near-term pullback to test the $83-84 area as support before the
stock is able to continue its upward trek.  That means we need to
work with a fairly wide stop, which we're initially placing at
$82, just under the bottom of Thursday's gap, and the 50-dma
($82.30).  A pullback and rebound from the $84 level should
provide a solid entry into the play, but traders looking to enter
on strength may want to just wait for a breakout over Friday's
high with a move over $86.50 before playing.  The PnF chart looks
to have a renewed bullish slant, as Friday's breakout completed a
bullish triangle breakout and suggests significantly more upside
to come.  The 2002 highs at $95 look like a good target to shoot
for, but we should expect some resistance to be found at the $90
level before achieving that goal.  The post earnings breakout
came on very strong volume, so traders entering the play on a
continuation of that breakout will want to confirm strength by
looking for continued strong volume.

Suggested Options:
Shorter Term: The May $85 Call will offer short-term traders the
best return on an immediate move, as it is currently at the
money.

Longer Term: Aggressive longer-term traders can use the June $90
Call, while the more conservative approach will be to use the
June $85 Call.  Our preferred option is the June $85 strike, as
it is currently just at the money and should provide sufficient
time for the play to move in our favor.

BUY CALL MAY-85 DGX-EQ OI=4345 at $2.40 SL=1.25
BUY CALL MAY-90 DGX-ER OI=2939 at $0.40 SL=0.20
BUY CALL JUN-85*DGX-FQ OI= 199 at $3.50 SL=1.75
BUY CALL JUN-90 DGX-FR OI=  42 at $1.30 SL=0.75

Annotated Chart of DGX:



Picked on April 25th at      $86.15
Change since picked:          +0.00
Earnings Date               4/22/04 (confirmed)
Average Daily Volume =        621 K
Chart =



************************Advertisement*********************************
Option Traders:  Pay Attention
Use the online options trading system built by option traders for
options traders.
Featuring direct access to each option exchange, stop and stop loss
option orders,
contingent option orders, online spreads, fast executions,
and rates as low as $1.50 per contract ($14.95 min.).
PreferredTrade, Inc.
Call 888-889-9178 or
Click http://www.PreferredTrade.com/CF/Home.CFM?ID=OIN
Member NYSE, Other Principal Exchanges, NFA, MSRB and SIPC
********************************************************************


*****************
CURRENT PUT PLAYS
*****************

Affiliated Mgrs - AMG - cls: 50.23 chng: -1.07 stop: 51.75*new*

Company Description:
Affiliated Managers Group, Inc. is an asset management company
with equity investments in a diverse group of mid-sized
investment management firms (the Affiliates).  As of December 31,
2002, the Company's affiliated investment management firms
managed approximately $70.8 billion in assets across a range of
investment styles and in three principal distribution channels:
High Net Worth, Mutual Fund and Institutional.  In its
investments in Affiliates, it typically holds a majority equity
interest in each firm, with the remaining equity interests
retained by the management of the Affiliate.  The company's
investment approach addresses the succession and ownership
transition issues facing the founders and principal owners of
many medium-sized investment management firms by allowing them to
preserve their firm's entrepreneurial culture and independence
and to continue to participate in their firm's success.

Why we like it:
Investors once again fled from shares of AMG on Friday, as the
stock's weakness reasserted itself following Thursday's reflexive
bounce from the $50 level.  AMG has been behaving quite nicely
for us over the past week, cracking below support early in the
week and continuing down to the $50 level.  Now we'll see whether
there's enough of a downward push to get the stock down to our
$49 target ahead of the company's earnings report.  Recall that
the company is set to release its quarterly results on Wednesday,
so worst case, we'll be dropping the play on Tuesday ahead of the
announcement.  That means we're no longer looking for new
entries, but instead are turning our focus to maximizing gains
and not giving back too much on any rebound from here.  Should
the $50 level crack early in the week, we're still recommending
an exit in the $49 area, which is just above both the 200-dma
($48.66) and the 62% retracement of the November-March rally.
Getting aggressive with our stop means lowering it to $51.75,
just over the top of Thursday's failed rebound.

Suggested Options:
We have not listed any current strikes this weekend, as we are
not recommending new positions at this time due to AMG's
scheduled earnings release next week.

Annotated Chart of AMG:



Picked on April 18th at       $52.91
Change since picked:           -2.68
Earnings Date                4/28/04 (confirmed)
Average Daily Volume =         349 K
Chart =


---

QLogic Corp. - QLGC - close: 27.23 change: -0.91 stop: 28.75*new*

Company Description:
QLogic Corporation designs and develops storage networking
infrastructure components sold to original equipment
manufacturers (OEMs), resellers and system integrators.  The
company's products include the SANblade host bus adapters (HBAs),
SANbox Fibre Channel Switches and SANsurfer Management Suite HBA
and Switch management software.  QLGC's Fibre Channel HBAs
support small computer systems interface (SCSI) protocol,
Internet protocol (IP), virtual interface (VI) and fiber
connection (FICON) protocol.  In addition, the company designs
and supplies controller chips used in hard drives and tape
drives, as well as enclosure management and baseboard management
chip solutions that monitor the health of the physical
environment within a server or storage enclosure.

Why we like it:
Continuing to behave quite nicely, QLGC broke down from its 2-day
consolidation near $28 on Friday, complete with an increase in
selling volume.  This confirms that the downtrend we've been
riding is still very much intact.  That said, this play is
nearing an end due to the company's scheduled earnings release
next Wednesday.  We're looking for the stock to continue to
deteriorate ahead of that announcement and ideally we'll see a
drop down to the $25 support area early in the week.  Should the
stock trade that level, it should be a no-brainer of an exit
point, as there clearly isn't enough time left on the clock to
ride out more than a very feeble oversold bounce.  With that in
mind, we're also getting more aggressive with our stop this
weekend, lowering it to $28.75, just over the intraday highs of
the past three sessions, and likely above the 10-dma ($29.27) by
the open on Monday.

Suggested Options:
We have not listed any current strikes this weekend, as we are
not recommending new positions at this time due to AMG's
scheduled earnings release next week.

Annotated Chart of QLGC:



Picked on April 13th at       $31.00
Change since picked:           -3.77
Earnings Date                4/28/04 (confirmed)
Average Daily Volume =      3.57 mln
Chart =



*************
NEW PUT PLAYS
*************

Capital One - COF - close: 68.85 chg: -1.80 stop: 70.58

Company Description:
Headquartered in McLean, Virginia, Capital One Financial
Corporation (www.capitalone.com) is a holding company whose
principal subsidiaries, Capital One Bank and Capital One, F.S.B.,
offer consumer lending products and Capital One Auto Finance,
Inc., offers automobile and other motor vehicle financing
products. Capital One's subsidiaries collectively had 46.7
million managed accounts and $71.8 billion in managed loans
outstanding as of March 31, 2004. Capital One, a Fortune 500
company, is one of the largest providers of MasterCard and Visa
credit cards in the world. (source: company press release)

Why We Like It:
We have multiple reasons to like COF as a put.  A failed reversal
pattern, a breakdown under support and a negative reaction to
very positive earnings are all factors.  The company recently
announced earnings on April 21st.  Analysts were looking for
$1.52 a share.  COF smashed the estimates with net profits
soaring to $1.84 a share.  However, COF failed to raise its
guidance and that suddenly created a lot of doubt about the
company's future quarters even though COF affirmed its current
estimates.

That was Wednesday and the stock produced a bullish one-day
reversal "hammer" candlestick.  Unfortunately for shareholders
there was no follow through.  Now the stock has broken down
through the $70.00 level but is trying to maintain support at its
simple 100-dma.  We're going to use a TRIGGER at $67.99 to open
the play for us.  That means COF will have to break support at
its 100-dma, break support at Thursday's low of $68.30 and
breakdown through its February low at $68.00.  That seems like a
lot of ifs but COF's point-and-figure chart has fallen into a
fresh sell signal and the stock showed no bounce on Friday
afternoon when the rest of the market was rebounding.  We're
going to target a move to its simple 200-dma currently near
$62.50.

Suggested Options:
Short-term traders can choose from the May or June options.
Since there is still four weeks left for May options we'll
suggest the May 70s.

BUY PUT MAY 70 COF-QN OI= 7528 at $3.30 SL=1.70
BUY PUT MAY 65 COF-QM OI= 6264 at $0.95 SL= --

Annotated Chart:



Picked on April xx at $ 00.00 <-- see TRIGGER
Change since picked:   - 0.00
Earnings Date        04/21/04 (confirmed)
Average Daily Volume:     2.2 million
Chart =



************************Advertisement**********************************
Option traders, check what PreferredTrade offers:
-    true direct access to each option exchange
-    stop and stop loss online option orders
-    contingent option orders based on the price of the option or stock
-    online spread order entry for net debit or credit
-    fast option executions
-    rates as low as $1.50 per contract ($14.95 min)

PreferredTrade, Inc.
Call 888-889-9178 or
Click http://www.PreferredTrade.com/CF/Home.CFM?ID=OIN
Member NYSE, Other Principal Exchanges, NFA, MSRB and SIPC
***********************************************************************


**********
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                   Sunday 04-25-2004
Sunday                                                      4 of 5

In Section Four:

Leaps: Snow Job
Option Spreads: Going Shopping?  Get Some Bang For Your Buck!
Traders Corner: The CCI Ghost Leads to Priceless Trading


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

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


*****
LEAPS
*****

Snow Job
By Mark Phillips
mphillips@OptionInvestor.com

Alan Greenspan took center stage again last week and officially
proclaimed the end of the dangers of deflation.  Now this is VERY
interesting and I think you'll enjoy taking a little walk down
Speculation Lane with me.

It is now my belief that deflation was NEVER a serious concern,
either for the Fed or for the Bush Administration.  But it was
vitally important to their plan to get the economy firing on all
cylinders that the investing public -- by that I mean individual
investors, institutions, bond traders and currency traders -- be
convinced that deflation was a very real risk and that the Fed was
using all of its resources to defeat it.  By all accounts, they
succeeded famously, as virtually every analyst and writer I have
paid attention to over the past couple years has been talking
about the risks of deflation.  I certainly was drawn into the
deception, as the evidence certainly pointed in that direction.
The action of printing such an obscene amount of money while
keeping interest rates at historic lows is the action that would
be taken if we were really trying to ward off deflation.

What the Fed needed to do was get enough credit flowing in the
economy to get things growing again after the way things collapsed
following the bursting of the Telecom bubble.  There was a
tremendous amount of money wiped out as that bubble collapsed and
the Fed needed to find a way to get that money back into the hands
of companies, so that the economic expansion could once again get
underway.  What better way than to print up oodles of cash and
keep interest rates at multi-decade lows?  The strategy had its
desired effect, as low interest rates motivated homeowners to
unlock an obscene amount of money from their real estate holdings
and spend it in the real economy.  After priming the economic pump
for more than 2 years, the Fed is finally seeing the results in
rising demand-driven inflation, the hoped for result of the
aggressive monetary inflation.

In another situation, the public would have seen the monetary
inflation for what it was and the effect would have been absolute
crash in the dollar and bond prices, not to mention equities as
well.  Falling bond prices would have been a serious problem, as
long-term interest rates would have risen despite the actions and
desires of the Fed.  So the job of the Central Bank was to keep
investors convinced that the Fed would take "whatever action was
necessary" to keep interest rates at multi-decade lows for a
"considerable period of time".

What better way to convince investors across the globe that you're
serious about keeping rates low than to convince them that you're
deathly afraid of your economy slipping into deflation?  The Fed
did this job admirably, showing us in countless statements how
afraid they were of the opposite of inflation -- so afraid in fact
that they wouldn't even speak its name!  This is group
psychological manipulation elevated to an art form.  The message
conveyed was "We absolutely won't raise interest rates any time in
the foreseeable future because that would provide food for this
monster called...well, we really can't speak it's name, so we'll
just call it an 'unwelcome fall in inflation'.  We have to bring
all of our resources to bear on slaying this terrible monster and
we won't even think of raising interest rates until the monster is
dead and buried."

In hindsight, we can see the full-court press that was in effect
for the past several months.  Can you ever remember seeing such a
parade of speaking appearances from so many of the Fed heads on
such a regular and frequent basis?  For much of the time, the
message has been one of signs of economic recovery becoming more
pronounced, while at the same time stating that risks were
balanced between the forces of evil (the unnamed monster) and
forces of light (economic growth and inflation).  But that parade
wouldn't have been enough to keep the wolves (savvy investors)
from the door.  It doesn't take a great deal of smarts to see that
with the kind of monetary inflation going on, the Fed/Bush
administration would have to present the image of still supporting
a strong dollar policy.

So even though it has become laughable in recent months every time
Treasury Secretary Snow is trotted out like some sort of
follically-challenged wind-up doll, the lies about a "strong
dollar" policy served the purpose of fooling enough people for
long enough about the fiscal policy in the U.S.  Certainly, the
dollar has fallen a long ways from its lofty heights in early
2002, but not nearly as far as it could have.

Now inflation is starting to show up, even in the suspicious PPI
and CPI reports, which typically mask inflationary effects.
Remember that I've ranted in past columns about the incompetence
at the BLS, that they couldn't even process the PPI data?  What if
it was an intentional delay to preserve the lack of clarity about
the whole inflation/deflation debate as long as possible, to give
the Fed maneuvering room?  Remember, the Fed doesn't want to do
anything that will impinge on the Bush administration's re-
election efforts, because Uncle Alan wants to keep his job for
another term.

That means the Fed needs to postpone as much of the work of
raising interest rates as possible to beyond the election.  But at
the same time, the data needs to come out showing that economic
growth IS occurring and it is growing stronger well ahead of the
election so that the Republican administration can use it as a
campaigning point and the Democrats can't.  Ah yes, politics.
Whether we want to admit it or not, it is a very real part of what
drives the action in the markets, especially in an election year.
It's not just the actual data that can influence public opinion
about the economy, but the body language and manner in which the
data is presented.

I believe it was Shakespeare that referred to life as poor actors
strutting about a stage.  That has been the Greenspan Fed's job
throughout this process to provide the proper level of drama
surrounding the inflation/deflation debate to keep us distracted
while they have been in the process of getting economic growth
going again.  There have been many bit parts to be played out, not
the least of which is that offered up by Treasury Secretary Snow.
Their job is now complete and the entire financial arena has been
adjusting over the past couple weeks to the reality that inflation
is back and the concerns over deflation were radically overblown.
Not only that, but the period of sub-par economic growth is now
behind us.  Greenspan himself delivered the final line in this
drama last week and I believe many participants missed out on the
import of that decisive final line.

So what is it that has caused me to have such a radical change in
attitude on this whole picture?  Here's the money shot, straight
from the horse's (Sir Greenspan) mouth from last week's testimony.
"Threats of deflation, which were a significant concern last year,
by all indications are no longer an issue before us."  What did he
say?  Did you catch that?  He actually spoke the dreaded "D" word!
Every representative of the Fed has taken great pains over the
past year to not issue the word 'deflation' and then last week,
Greenspan used it in front of God and everyone.  This is akin to a
character in the Harry Potter series uttering the name
"Voldemort", with the expected reaction that the rest of the
characters would recoil in horror.

There was a strong reaction in the market, but not nearly what it
might have been a couple months ago, because the Fed heads have
been busy on the speaking circuit in recent weeks, hinting at
stronger-than-expected economic growth and the reality that the
accommodative interest rate policy would be coming to an end.
What changed?  The Fed has won the battle against deflation and
can now end the charade, revealing that the once-feared monster
really wasn't that bad and has now been relegated to the realm of
the vanquished.  It's just like any good horror film -- the
monster always seems more fearful and powerful until you can see
it in the light of day.  By speaking the "D" word, Greenspan
turned the floodlights on high, showing that the scary shadow on
the wall was really projected by a little mouse standing in front
of a feeble light source near the door.

We've seen some near-term dislocations occur in various markets
over the past week in response to this new reality, at least in
the manner that we now understand reality.  Bonds are weakening
significantly, factoring in the reality that short-term rates will
be rising in the future.  We've known all along that it was only a
matter of time and what we know now is that the timetable has been
moved up.  But seriously, how much of a real impact will a 100 or
even a 200 basis point rise in interest rates have on economic
growth?  That will still have the Fed Funds rate below 4% and in
the historical context, that is still very cheap.

I don't mean to suggest that we're going to see anywhere that
level of a rise in interest rates, but I do want to point out that
interest rates can move up a long ways from current levels before
it really becomes a problem.  A 25, 50 or even 75 basis point rise
between now and the end of the year will have little impact other
than psychological.  About the only area of the economy that might
be affected is Housing, which has been on a tear, both in terms of
new construction and refinancing.  That gravy train is coming to
an end in the months ahead, but it doesn't matter.  It has served
its purpose of unlocking large amounts of cash and injecting it
into the real economy to get things moving on a growth trend.

We've seen equities and commodities rippled by some significant
volatility in the past couple weeks as investors adjust to the new
timetable on policy changes to interest rates, but once that
volatility subsides, I believe we can look for the upward
trajectory to resume.  Inflation is back and is now being
stimulated by the demand side of the equation. That means the Fed
will be moving back into its comfortably familiar role of
controlling interest rates in order to temper the rate of growth
in inflation.  I won't make any predictions about my expectations
for the Fed's degree of success or failure in this venture, but I
expect the perception of a return to normalcy will assuage
investors' concerns and keep money flowing into the stock market,
while at the same time it flows out of the fixed income market.

If you think I've completely taken leave of my senses, you're
certainly entitled to that opinion.  I know on multiple occasions
each week, my own wife would certainly side with you, but that's a
different matter altogether.  Yes, the stock market is still
horrendously overvalued and buying most equities at current levels
is not an issue of buying value, but of speculating on the
"Greater Fool Theory", expecting that valuations will become even
more stretched and that we'll be able to sell those same stocks
for an even higher price to someone else.

We're still in the midst of consolidating the strong bull market
run over the past year, and I don't expect that we've seen the end
of that consolidation just yet.  But at the same time, I think it
is overly pessimistic to expect the bottom to fall out at the end
of this earnings season, or through the summer doldrums.  I think
the next several weeks will be a period of continued consolidation
and when it is complete, I expect to see the broad market head
higher again.  Our job during this period of time will be to
position ourselves appropriately to take advantage of that next
bullish move when it arrives.

Last week, we looked at the state of the major market indices and
while we had a bit more weakening last week, I still have a hard
time getting bearish, even for the near-term.  Certainly, all
three of the Bullish Percent readings are clearly in favor of the
bearish thesis.  The NDX is in Bear Correction at 57%, the SPX is
Bear Confirmed at 74% and the DOW is Bear Confirmed at 83%.  Those
readings certainly suggest that bearish plays, especially on the
broad-based ETFs like DIA, SPY and QQQ should perform well in the
months ahead.  But the standard PnF charts have a different story
to tell.

The PnF on the DOW is bearish, but only has a downside target of
10,000 in play.  The PnF chart of the NDX has actually turned
bullish and has an upside target of 1770 in place.  Of course, if
we turn to the 20-point box size on the NDX, we can see that the
old bullish target of 1340 was easily met and the index is now
churning in a broad 200-point consolidation zone.  Recall that
last week the SPX was still in a bullish alignment and that is
still the case, with a drop under 1080 being required to turn it
bearish.

My expectation now is that the bearish bullish percent readings
will be worked through, while the major averages consolidate in a
trading range for the next few months.  Once that work is done, I
expect to see all of the major averages resume their upward
trajectory.  Whether it will be a failed rally attempt and we'll
then break down or if we'll see strong breakouts to new recent
highs, I don't know.  But I don't think long-term directional bets
on any of these indices in either direction make sense in terms of
the risk to reward.

Another factor shaping this opinion is the still very bullish
action in the volatility indices, with the VIX plunging to a new
intraday low of 12.89 on Friday before closing at 14.01, a new
multi-year closing low.  There's literally no fear of the downside
in the current market and I'm reluctantly coming to the conclusion
that this may be our fate for some time to come.

I know this is a really bullish commentary this week and I do have
a hard time accepting it.  But this is what the market is telling
me.  Fortunately, we've been aligning our Portfolio more in line
with the bullish case, and I think we're well positioned as we
head into another week filled with earnings reports.  So let's
shelve the big picture commentary for now and take a look at the
individual plays currently on our plate.

Portfolio:

HD - I'm getting really close to the end of my rope with HD.  I
mean, how long can a stock trade in such a narrow range without a
directional break in either direction?  For the record, the stock
has been meandering in the $35.00-37.50 area since the first of
the year and quite honestly I'm questioning whether it will be
able to do so any time soon.  We need a major catalyst to get the
job done and maybe earnings will be the ticket.  That event rolls
around on May 18th, and if we don't get a directional break after
that event, I'm inclined to just drop the play for lack of
performance.  Of course, I certainly wouldn't criticize anyone for
taking the more cautious approach and just closing the play here.
It obviously hasn't performed as expected.

MLNM - Just when I was convinced that MLNM was about to break
down, the bulls stepped up to buy the dip and the stock is now
back near the $18 level.  In hindsight, with tightening our stop
to $16, last week I probably should have suggested closing our
protective put as it was no longer providing much additional
protection.  So if we do see another drop near the $16 level, I'm
going to suggest closing the put for close to our initial cost and
then we'll let the price action unfold from there.  For now, MLNM
is bouncing around near $18 and we still need that break back over
$19 to put it back in a bullish state.  On the positive side,
weekly Stochastics are starting to curl upwards and the
consolidation may be just about over.  Another positive factor is
that the BTK index is wedging up just under resistance at $560 and
a breakout there will likely have MLNM moving higher in sympathy.
Hold the course for now.

CHK - Over the past week, we saw the price of Natural Gas once
again fall to test support at its 50-dma near $5.60 and attempt a
rebound, but the weekly chart presents some problems with bearish
Stochastics divergence looking likely.  In light of that
situation, our CHK play is looking pretty strong, as it continues
to work on moving through that $14 resistance level.  All signs
are pointing towards a successful breakout and I like the way the
stock is finding support now at former resistance near the $13.50
level.  Once solidly through the $14 level, we can look for the
stock to make steady progress towards the $16 level, as the stock
continues to benefit from the still-elevated levels of gas prices.
With the 200-dma nearing the $12 level, we're getting one more
factor that should provide protection to our $12 stop in the weeks
ahead.

LUV - The Transports are back!  It was a long road, but the $TRAN
finally worked its way back over 3000 last week, for the first
time since late January.  Add in the fact that the Airline index
(XAL.X) finally put in a higher low near $54 and conditions are
definitely improving in the industry.  This is occurring despite
the price of crude oil holding near its recent highs and well
above the 50-dma at $34.77.  LUV appeared to finish its mild
pullback, right at its own 50-dma and then launched higher on
Wednesday and Thursday, closing over the $15 level and then
relaxing a bit on Friday.  So far, everything is on track and the
stock's next objective will be for a move towards the 200-dma at
$16.42.  Maintain stops at $12.75, just under the March low.

EBAY - Holy Upside Surprise, Batman!  EBAY gave investors
everything they hoped for and more in its earnings report last
week, beating estimates by a nickel on a huge growth in revenue.
The money-making auction machine continues to do just that -- make
money.  Sure it's richly valued, but as long as the company
continues to deliver on expectations, we can look for the stock to
remain in favor with the bulls.  The post earnings explosion over
$83 has the stock moving within $8 of our final target at $91 and
with a near doubling of value in our 2006 LEAP since entry, we
clearly need to take steps to lock in a portion of those gains.
One approach would be to buy a higher put (say a $75 strike with
July expiration) and keep a liberal stop.  Another approach would
be to put on a collar, selling a covered call and using the
proceeds to purchase a protective put.  Of course the simplest
approach is to just tighten our stop.  An argument could be made
for just raising our stop to $73, just under the most recent low,
but that still leaves us exposed to an awful lot of risk -- $10
risk and we're only looking for an additional $8 worth of upside.
No thanks.  The problem with a higher stop is that we run the very
real chance of having our stop tripped on some normal profit
taking before the stock continues its upward journey.  I'm going
to recommend a fairly tight stop at $77, which is just below
Thursday's post-earnings low.  That leaves us in a position with
$6 of risk from the high and another $8 of upside potential to our
target, keeping the reward to risk ratio greater than 1:1.

Watch List:

TYC - Alright, I'm willing to get more aggressive with our entry
on TYC now.  The key to my change of tune is that the weekly
Stochastics are just starting to turn up for the first time since
the first of the year.  That suggests to me that the stock is
going to make a move back into the upper half of its rising
channel.  However, I don't think this is the time to add it into
the Portfolio, not with earnings just over a week away on May 4th.
No, prudence demands that we wait for that event and then enter
afterwards, so long as the price action is favorable.  Ideally,
we'll get a post-earnings dip to the bottom of the channel,
currently near $28, with additional support from the 100-dma
($27.53).  If it wasn't for the pending earnings announcement, I
would have just gone for it this weekend and added the play to our
Portfolio as of Friday's close, as TYC looks ready to break out to
new highs.  So for traders willing to assume the risk of
initiating a position a week ahead of earnings, I would consider
this a viable entry point, using an initial stop at $26.

Radar Screen:

GM - If there was any question as to the wisdom of just watching
GM, rather than playing it, that question should have been clearly
answered  last week, with the stock breaking sharply higher
following the company's earnings report.  Weekly Stochastics are
now in a confirmed bullish ascent and shares of the automaker are
now headed back towards the top of its descending channel,
currently just over $52.  The action of the stock as it nears that
firm barrier will tell us a lot about the viability of this as a
potential bearish play beginning a few weeks from now.

EK - Just like we expected, EK found some buying interest off the
$25 support level, helped along by the company's quarterly
earnings report.  Of course, the buying wasn't stellar either in
magnitude of the move or volume, but it has been enough to get the
weekly Stochastics moving out of oversold territory and it looks
like the next upward trek is getting underway.  Due to the
lethargic manner in which the stock normally trades, we clearly
have some time until EK becomes a viable bearish play.  Watch and
wait for now and as the weekly Stochastics begin to look tired,
we'll put this one on the Watch List, targeting entries on the
next irrational upward spike on this stock that appears doomed to
trade much lower in the months ahead.

AIG - Earnings came and went without too much fanfare and AIG
still has a bullish look to it.  That means we're on course to
play the upside and the stock shifts over to the Watch List this
weekend.  See below for details.

Closing Thoughts:
The heaviest week of earnings is behind us now and you've got to
admit things have been pretty bullish.  Sure there have been
pockets of weakness in some of the Semiconductor names, but for
the most part, earnings have been strong, there have been lots of
upside surprises and most of the forward guidance is either in-
line or being raised.  Of course, the downside is that inflation
is now clearly becoming a threat and as we've discussed here in
recent weeks, it is only a matter of time before the Fed must act
and raise interest rates.  Regardless of when the first hike takes
place, it will have little impact other than psychological until
well into 2005.  That tells me that the overall bullish case is
still intact, even though the odds of a return to the normal
summer doldrums this year seem high.  We'll stick with what's
working, jettison what isn't and try to add viable plays with good
odds to pad the account prior to the resumption of the frolicking
of the bulls after Labor Day.

Have a great week!

Mark


LEAPS Portfolio

Current Open Plays



LEAPS Watchlist

Current Possibles

SYMBOL  SINCE    TARGET PRICE  TARGETED LEAP  SYMBOL

CALLS:
TYC    03/07/04   $27          JAN-2005 $ 30  ZPA-AF
                            CC JAN-2005 $ 25  ZPA-AE
                               JAN-2006 $ 30  WPA-AF
                            CC JAN-2006 $ 25  WPA-AE
                            PP JUL-2004 $ 25  TYC-SE
AIG    04/25/04   $71-72       JAN-2005 $ 75  ZAF-AO
                            CC JAN-2005 $ 70  ZAF-AN
                               JAN-2006 $ 75  WAP-AO
                            CC JAN-2006 $ 70  WAP-AN
                            PP AUG-2004 $ 65  AIG-TM

PUTS:
None


New Portfolio Plays

None

New Watchlist Plays

AIG - American International Group $73.96  **Call Play**

We've been waiting for AIG to release earnings before initiating
coverage of the stock as a new play and fortunately that event
passed without incident.  The company released its results,
beating estimates and while the stock did fall back towards the
$72 level after the report, there hasn't been any price action
that should dissuade us from attempting to play the upside.
Recall that the stock is currently on a PnF Buy signal with an
upside price target of $94.  There is the issue that the recent
pullback from the breakout over $76 has issued a High Pole
Warning, so we do have some risk there.  Looking at our weekly
chart, we can see the Stochastics and MACD oscillators hinting at
another downward move, and with the recent higher high in price,
there could be some developing bearish divergence there.  I bring
up these two negative factors because I want everyone to
understand that we are embarking on a play with a higher level of
risk, but I think we can justify it by keeping things balanced
with a very favorable risk to reward ratio.

We'll target entries on a dip into the $71-72 area, as there
should now be solid support near $72 and very strong support by
the time we drop down to the $70 level.  Assuming an entry at the
top of that range at $72, that gives us $22 of potential upside on
the play, while risk to our $68 stop is only $4.  Better than a
5:1 reward-risk ratio is the kind of game we can play over and
over, letting the law of averages work in our favor.  Note that in
addition to the historical support near $70, we have the 100-dma
providing reinforcement at that level as well.  Of course, there's
always the risk that an unknown exogenous event could come out of
left field and send the stock plunging overnight, so we've listed
a protective August Put at the $65 level.  This is inexpensive
enough to have a minor impact on the overall performance of the
play, while providing good protection in the event of a
catastrophic price move.  So long as the Financial sector recovers
its footing and returns to its prior upward trend, I think we can
expect to see AIG leading the pack.

BUY LEAP JAN-2005 $75 ZAF-AO
BUY LEAP JAN-2005 $70 ZAF-AN **Covered Call**
BUY LEAP JAN-2006 $75 WAP-AO
BUY LEAP JAN-2006 $70 WAP-AN **Covered Call**
BUY Put  AUG-2004 $65 AIG-TM **Insurance Put**


Drops

NEM $39.93 Alright, that was just downright irritating.  After
months of waiting to get the right entry point (or so I thought)
it looked like NEM was finally ready to make a move higher a few
weeks back with the breakout over $46 and new PnF Buy signal.  But
that was before more data indicating strengthening inflation and
the Fed declared victory over deflation.  Bonds have been getting
killed and the dollar rising substantially on expectations that
rising interest rates are just around the corner.  It doesn't
matter whether the long-term picture favors gold (I think it
does), the shorter-term trade is to dump tangibles in favor cash,
and we've seen that take place across the metals sector.  With
Sell signals and breaks of 200-dmas rampant throughout the gold
universe, we've done the right thing by exiting NEM where we did
with the $41 break of support.  I think it is safe to say we'll be
back to play this one again, but we'll need to see a healthier
technical picture before doing so.


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

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

************************
Option Spread Strategies
************************

Going Shopping?  Get Some Bang For Your Buck!
By Mike Parnos, Investing With Attitude

Today’s column originated from a tiny cabin on the high seas.
Coincidentally, that was also my grade point average in high
school.  Though some might find that a little disturbing, others
should find it very encouraging.   Here you are, taking advice and
learning from someone who is only slightly above average.  It
means, simply, that, if you focus, you can learn.  If you can take
that knowledge and add a dose of self-discipline, you can
potentially become a profitable options trader.

I was pondering, while on my cruise ship (they don’t like when you
call it a boat) in the Pacific Ocean.  We were slowly making its
way to a variety of ports of call where I could buy $.50 key
chains for only $5.  Where I could buy a tasteless $15 flowered T-
shirt for only $50.  Destinations where I was going to have an
opportunity to overpay for just about anything I see – AND in a
foreign language!

Do you see a parallel here?  Isn’t it very similar to trading in
the options market?  If you’re going shopping for options, look at
how many choices you have.  If you’re new to options, it’s a must
certainly seem like a foreign language.  And, how different are
market makers from the island entrepreneurs?  Market makers are
just salivating at the thought of your ship pulling into port.
The ship will be carrying their next financial meal.  They’re like
buzzards circling fresh prey – ready to be swoop down and attack
the helpless (uneducated) option trader and peck away until the
carcass is stripped clean.

How do you avoid being the next entrie for the flock of hovering
market makers?  By using your brain and harnessing your emotions.
But, can we do that alone?  We’ll understand and enlist the
assistance of two friends of mine – the sensible Ms. Sarah Tonin
and the stimulating Ms. Norah Drenaline.

The average adult brain is three pounds of processing power, with
500 trillion synaptic connections organized into various "maps"
governing language, movement, vision, hearing, and more.
Chemicals called neurotransmitters carry messages from one brain
cell to another.  Two of these neurotransmitters tend to go wrong
in people who are habitually poor traders – and/or serial killers.
It’s fascinating how the same ingredients apply to both scenarios.

Meet Sarah Tonin & Nora Drenaline
There is a little bit both of Sarah Tonin and Nora Drenaline in
all of us.  With their help, let’s take a look at how our brains
works.

Sarah Tonin  (a.k.a. serotonin) is the brain's "don't worry, be
happy" juice.  It's the body's own Prozac.  At normal levels,
serotonin helps the "reasonable" part of your brain maintain
control over all sorts of primitive, but pretty useful, drives--
like sex, hunger, fear, and aggression (and making stupid and
impulsive trading decisions).

Serotonin doesn't prevent you from acting on these urges. It just
puts the brakes on, giving the reasonable part of your brain
enough time to say either warn you that "fools rush in where
angels fear to tread" or "go for it."  Not enough serotonin, and
your brain has no brakes.  Drives and emotions will rule. Too
much, and you're an obsessive-compulsive anal wreck, agonizing
over decisions and details.

If serotonin puts on the brakes, Nora Drenaline (a.k.a.
noradrenaline) steps on the gas.  When external events (market
conditions) command immediate action (SOGOTP), noradrenaline
literally focuses the mind, preparing the brain for "fight or
flight" decisions and triggering the production of adrenaline
meant to give the body an edge.

Yes, I’ve Been Reading Again
Scientists point out that neither of these biochemical conditions
is etched in stone.  People with low serotonin may find it harder
to control their impulses, but that doesn't mean they will always
buy those overpriced options or not able to take profits when
prudent.   Low serotonin in your brain doesn’t mean you’re trading
life is doomed.  It takes far more than bad genes to make bad
traders. In fact, neuroscientists say that when it comes to the
brain, nurture is as important as nature.  Though genetics play an
important part, there’s more to it than that.

Human beings don't contain anywhere near enough genes to build a
working brain.  Your genes simply ensure that you get all the
mental material you need to get started (plus some extra). Your
brain, interacting with the world around it, has to figure out for
itself how to work.  Within seconds of a newborn detecting its
mother's scent for the first time, neural networks form to try and
make sense of the experience. Such experiences constantly shape
your brain.

The Influences That Help Shape Your Life
Moral lessons from Mom and Dad helped shape your brain, too, like
so much Play-Doh.   Similarly, when you learn about option trading
from responsible individuals or organizations, you are being
molded into a potential money-making machine.  Infusions of
morality affect one part of the brain in particular -- the
prefrontal lobe.  Located right behind your forehead, the
prefrontal lobe is designed to keep you from doing stupid things.

If shaped and strengthened by good experiences and positive
influences, it adds a bit of wisdom to your impulsive desires and
helps you make better decisions.   A good frontal lobe prioritizes
incoming information, considers all options, and comes up with
viable alternatives – the logical approach required to be
successful traders.  The fleeting impulses can be headed off at
the pass, allow you to weigh consequences and outcomes and,
hopefully, decide to make appropriate life and trading decisions.

Years ago, doctors tried to deal with the “impulsive” and
“stupidity” problems with a surgical procedure.  Hence, the old
joke that says, “I’d rather have a bottle in front of me than a
frontal lobotomy.”

Then there was shock therapy.  For an option trader, seeing 75% of
his brokerage account disappear should be shocking enough, but
often isn’t.
Once we recognize, and get to know, Sarah Tonin and Nora
Drenaline,  we can work on reshaping the Play-Do through vigorous
education to create that all important sense of awareness – with
TLC, of course.

Tomorrow
As I got off the ship, as expected, the island population tried to
tempt me with cheap jewelry and flowered shirts.  They may have
won at the Alamo, but, with Sarah Tonin at my side, I’ll was safe.
When faced with trading decisions, I know I’ll also be safe.

Monday, the options market will open.  Trading will begin.  The
market makers will be waiting with $15 T-shirts.  Will you be
safe?
____________________________________________________________

MAY CPTI POSITIONS
Remember, May is a five-week option cycle.  Get comfortable.
We’re going to exercise some patience and self-discipline.  That’s
the best kind of exercise.  It beats the hell out of a
Stairmaster.  It’s more profitable, too – usually.

May Position #1 – SPX Iron Condor – 1140.60
We sold 10 SPX May 1080 puts and bought 10 SPX May 1070 puts for a
total credit of $1.90 ($1,900).  Then we sold 7 SPX May 1175 calls
and bought 7 SPX May 1190 calls for a credit of  $1.40 ($980).
Our total net credit and potential profit is $2,880.  Our maximum
profit range is 1080 to 1175.  Maintenance: $10,500.

May Position #2 – RUT Iron Condor – 590.71
We sold 10 RUT May 620 calls and bought 10 RUT May 630 calls for a
credit of $1.20 ($1,200).  Then we sold 10 RUT May 540 puts and
bought 10 RUT May 530 puts for a credit of $1.30 ($1,300).  Our
total net credit and profit potential is $2,500.  Our maximum
profit range is 540 to 620.  Maintenance: $10,000.

May Position #3 – MNX Iron Condor - $149.70
We sold 10 MNX May $152.50 calls and bought 10 MNX May $157.50
calls
for a credit of $.80 ($800).  Then we sold 10 MNX May $140 puts
and bought 10 MNX May $135 puts for a credit: $.95 ($950).  Our
total net credit and profit potential is $1,750.  Our maximum
profit range is $140 to $152.50.  Maintenance: $5,000.

May Position #4 – BBH Iron Condor - $150.50
We sold 10 BBH May $155 calls and bought 10 BBH May $165 calls for
a credit of $.70 ($700).  Then we sold 10 BBH May $135 puts and
bought 10 BBH May $125 puts for a credit of  $.70 ($700).  Our
total net credit and profit potential is $1.40 x 10 contracts =
$1,400.  Our maximum profit range is  $135 to $155.  Maintenance:
$10,000.

_____________________________________________________________

ONGOING POSITIONS

QQQ ITM Strangle – Ongoing Long Term -- $37.21
We bought 10 contracts of the 2005 QQQ $39 puts and 10 contracts
of the 2005 QQQ $29 calls for a total debit of $14,300.   We make
money by selling near term puts and calls every month.  Here's
what we've done so far:
Oct. $33 puts and Oct. $34 calls – credit of $1,900. Nov. $34 puts
and calls – credit of $1,150. Dec. $34 puts and calls – credit of
$1,500.  Jan. $34 puts and calls – credit of $850.  Feb. $34 calls
and $36 puts – credit of $750. Mar. $34 calls and $37 puts –
credit of $1,150. Apr. $34 calls and $37 puts – credit of $750.
May $34 calls and $37 puts – credit of $800.  Total credit:
$8,850.

Note:  We haven't included the proceeds from this long term QQQ
ITM Strangle in our profit calculations.  It's a bonus!  And it's
a great cash flow generating strategy.

ZERO-PLUS Strategy.  OEX – 556.80
In my Feb. 8th column, I outlined a strategy based on an initial
investment of $100,000.  $74,000 was spent on zero coupon bonds
maturing in seven years at a value of $100,000.  The principal
$100,000 investment is guaranteed.  We’re trading the remaining
$26,000 to generate a “risk free” return on the original
investment.

Long Term: Bought 3 OEX Jan. 2006 540 calls @ $81 (x 300 =
$24,300)
March: Sold 3 OEX 585 calls @ $3.10 (x 300 = $930)
March: 535/525 Bull Put spread for credit of $1.10 (x 300 = $330).
Bought back 3 OEX March 585 calls for $.10 & sold 3 of March 560
calls for $1.35.  A credit of $1.25 x 300 = $375.00.  Bought back
March 560 calls for $.15, locked in profit of $120 x 3 = $360.
Cash position is $3,320 ($1,620 plus the unused $1,700).  Our cash
position as of April expiration is $2,640 plus unused $1,700 =
$4,340.

The April 570 OEX call expired worthless.  The OEX 515/505 bull
put spread also expired worthless. (Isn’t this fun?)

New May Zero Plus BPS Position
We sold 5 OEX May 530 puts and buy 5 contracts of May 520 puts for
credit of  $1.10 (x 5 contracts = $550).

We sold a call against our long 540 call. We sold 5 OEX April 575
calls for $1.40 (x 5 contracts = $700).

If both of these plays work out, we can add another $1,250 to our
cash total – just a little bonus while we wait for the market to
go up.
______________________________________________________________

New To The CPTI?
Are you a new Couch Potato Trading Institute student?  Do you have
questions about our educational plays or our strategies?  To find
past CPTI (Mike Parnos) articles, first look under "Education" on
the OI home page and click on "Traders Corner."  For more recent
columns, you can look under “Strategies” and click on
“Combinations.”  They're waiting for you 24/7.
______________________________________________________

Happy Trading!
Remember the CPTI credo: May our remote batteries and self-
discipline last forever, but mierde happens. Be prepared! In
trading, as in life, it’s not the cards we’re dealt. It’s how we
play them. Your questions and comments are always welcome.

Mike Parnos
CPTI Master Strategist and HCP
______________________________________________________

Couch Potato Trading Institute Disclaimer
All results reported in this section are hypothetical. While the
numbers represented here may have been achieved or beaten by our
readers, we make no representation that any individual investor
achieved these exact results. The tracking for the plays listed in
this section uses closing prices for the day the newsletter is
published and it is not meant to imply that any reader actually
received those prices or participated in these recommendations.
The portfolio represented here is hypothetical and for investment
education purposes only. It is only an illustration of what type
of gains a knowledgeable investor might receive utilizing these
strategies.


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

The CCI Ghost Leads to Priceless Trading
Jane Fox

I recently read an article in the latest Active Traders Magazine
called "The CCI Ghost" that intrigued me mostly because the CCI
(Commodity Channel Index) had never been a part of my trader's
toolbox but was a tool other analysts at OptionInvestor had used
quite successfully. Now I find it has a ghost? I know my computer
that keeps on rebooting whenever it wants to has a ghost but the
CCI does also?

One of best things about my association with OptionInvestor is
doing research and learning new and different things about
technical analysis. So I took this as my next quest, my next
event, my next tool for my toolbox. However, I needed to start
with finding out just what this darn CCI was and how it worked.
So I googled it (went to www.google.com) typed in Commodity
Channel Index and had more hits than Babe Ruth when he was
playing for the Yankees. This indicator is more popular than I
suspected but I dug through all the information and gleaned what
I think is the most important.

The Commodity Channel Index (CCI) measures the position of price
in relation to its moving average and can be used to determine
when a market is overbought/oversold or to signal when a trend is
weakening.

Don Lambert, who developed the CCI, states in his book
Commodities Channel Index: Tools for Trading Cyclic Trends, the
CCI is designed to identify cyclical turns in commodities. He
assumed that commodities (or stocks or bonds) move in cycles,
with highs and lows coming at periodic intervals. Lambert
recommended using 1/3 of a complete cycle (low to low or high to
high) as a time frame for the CCI but took care to note the a
determination of the cycle's length is independent of the CCI. If
the cycle runs 60 days (a low about every 60 days), then a 20-day
CCI would be recommended.

The calculation of the CCI is beyond the scope of this article
but essentially it measures how far away the price is from the
moving average and how fast it moved to get there. If price is
right at the moving average, the CCI will be 0. A constant used
to calculate the CCI will restrict 80% of the scores to within
<+100 and >-100. Even though the indicator has no boundaries
theoretically, +100 or -100 is considered extreme. It measures
the variation of a market's price from its statistical mean. High
values show that prices are unusually high compared to average
prices whereas low values indicate that prices are unusually low.
 Contrary to its name, the CCI can be used effectively on any
market, not just commodities.

The CCI fluctuates above and below zero. The percentage of CCI
values that fall between +100 and -100 will depend on the number
of periods used. A shorter CCI will be more volatile with a
smaller percentage of values between +100 and -100. Conversely,
the more periods used to calculate the CCI, the higher the
percentage of values between +100 and -100.

When the CCI moves above +100, a market is considered to be
entering into a strong uptrend and becoming overbought and
Lambert claimed that long positions should be closed when the CCI
moves back below +100. Conversely, when the CCI moves below -100,
the market is considered to be in a strong downtrend and becoming
oversold. Short positions should be covered when the CCI moves
back above -100.

The Commodity Channel Index is an oscillator style indicator that
works best in a sideways market. It does not work well in
trending markets and it's therefore recommended that it be used
in conjunction with another, more directional indicator. An
indicator such as the Directional Movement Index (DMI) can
eliminate those disastrous times when you are faced with a signal
to sell an overbought market in a bull market trend and the trend
continues upward. Or when you are issued with a buy in bear
market trend only to find the market was not yet ready to make a
bottom.

Interpretation

There are two basic methods of interpreting the CCI: looking for
divergences and as an overbought/oversold indicator.

A divergence occurs when a market is making new highs while the
CCI is failing to surpass its previous highs. This classic
divergence is usually followed by a correction or rally in the
market's price.




Here is daily chart of the broad NYSE market. On March 24th the
NYSE made a lower low but the CCI was not following in the same
pattern and made a higher low. If you had taken a long when the
CCI crossed back above the 0 line you would have had a profitable
trade. You can also see this divergence on the SPX chart I have
profiled below.

Since the CCI typically oscillates between 1100, to use the CCI
as an overbought/oversold indicator, readings above +100 imply an
overbought condition (and a pending price correction) while
readings below -100 imply an oversold condition (and a pending
rally).




Here is a daily chart of the SPX where I have noted with blue
arrows each time CCI printed below -100 and then crossed back
above the 0 line. After looking at the chart I see the better
entry would have been when CCI crosses back above the -100 line and
not the 0 line like I have profiled here. However, the
difference looks to be very small and the cross above the 0 line
just adds that little extra assurance price is moving in the
right direction.

I have not noted the prints above +100 for the chart would have
been too cluttered. Also note the same divergence I profiled in
the NYSE chart above.

There are many other ways to use this indicator but we need to
get back to the purpose of this article, The CCI Ghost.

The CCI ghost is the indicator equivalent to the head and
shoulders formation but not in price, in the indicator. It is
called a Ghost because it is so easy to see it will jump out at
you and say Boo. (Ok pretty lame but what the heh!) It consists
of three peaks with the one in the middle higher (or lower), than
the other two peaks. A move below (or above) the neckline is
typically used to trigger a buy or sell in the market.

Here is a recent example I found on the Russell 2000 e-mini
futures contract 5-minute chart.




In each case I have used the 0 line as my neckline but you could
have used a trendline to join the shoulder highs just as well and
maybe gotten in a little sooner. Whatever method you use, it
would have been profitable as you can see from the above chart.

The Ghost will also provide exit targets calculated the same way
you would for a head and shoulders in price. Take the distance
from the neckline to the top of the head (in CCI points) and add
that to the neckline. Exit when the CCI gets to its target
number.

Let's examine the reverse head and shoulder I found on Thursday
April 22.




The head was formed at CCI=-210 and with a neckline at 0 the
calculation is rather simple. You would exit when CCI reached
+210. Here are the numbers; enter the Russell e-mini contract at
13:25 when ER was 591.30. Exit at 13:32 when CCI reached +210 or
greater (actually reached +250) and ER2 was 592.5 for a 1.2 point
move. ER2 is $100/point so you just made $120.00/contract in 7
minutes.

If you had used the trendline instead of the neckline at 0 you
may have entered a little sooner but I don't think it would have
made too much difference.

You can find this ghost pattern on all timeframes and all markets
so experiment a little with it but for daytrading I would
recommend at least a 5 minute chart to start looking for them.

One thing about this CCI Ghost pattern is that is based entirely
on the indicator and not price, which I know some traders could
have difficulty with because most are focused exclusively on
price (like me!)

But trading without prices may help to eliminate the fear and
greed we all feel as traders and investors. I call this priceless
trading.

Remember plan your trade and trade your plan

Jane


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

No time to follow the Market Monitor? Tired of missing good Trades
because you stepped away from your computer?

OneStopOption Group can follow the Market Monitor for you. You
choose the number of contracts, we take care of the rest!!

Trade Stock Options, Stocks and ALL Futures with the same Group.
Call us 888 281-9569 to see if you qualify to have us rebate your
subscription cost.

http://www.OneStopOption.com

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



**********
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                   Sunday 04-25-2004
Sunday                                                      5 of 5

In Section Five:

Spreads and Straddles: Earnings Spark Recovery Rally!
Premium-Selling Plays: Naked Puts and Calls


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

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


*******************
SPREADS & STRADDLES
*******************

Earnings Spark Recovery Rally!
By Ray Cummins

Stocks closed the week with a bullish bias as strong earnings
from technology giant Microsoft and a host of other industry
bellwethers overcame investor concerns about rising interest
rates.

The Dow Jones Industrial Average ended up 11 points at 10,472,
just one day after enjoying a triple-digit rally and its best
session in over a month.  The NASDAQ Composite rose 16 points
to 2,049 with Intel (NASDAQ:INTC) propelling the semiconductor
group higher.  The S&P 500 index finished the day unchanged at
1,140 amid weakness in REIT, gold, insurance, and oil service
shares.  Losers outpaced winners by almost 2 to 1 on the NYSE
but only by a 6 to 5 margin on the NASDAQ.  Trading volume was
1.4 billion on the Big Board and 1.9 billion on the technology
exchange.  Treasury prices slumped on the latest economic data
with the 10-year benchmark note down 17/32 to 96 14/32, while
its yield climbed to 4.45%.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
SUMMARY OF CURRENT POSITIONS - AS OF 04/23/04
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

The following summary is a reasonable account of the positions
previously offered in this section.  However, no representation
is being made as to the actual performance of a position and in
fact, there are frequently large differences between the summary
results and those of our subscribers, due to the variety of ways
in which each play can be opened, closed, and/or adjusted.  In
addition, the summary might not be completely representative of
the manner in which the average trader would react to changing
conditions in a position and to the options market in general.
The editor of this section does not take actual positions in any
published plays and the summary comments are simply a service to
help new traders understand when positions might be opened and
closed.  In most cases, actions taken based on the commentary
would be far too late to be effective, thus it is not intended
as a substitute for personal trade management nor does it in
any way replace your duty to diligently monitor and manage the
positions in your portfolio.


PUT-CREDIT SPREADS

Symbol  Pick   Last   Month L/P S/P Credit  C/B    G/L   Status

HSIC    75.81  78.41   MAY   65  70  0.45  69.55   0.45   Open
NAV     49.90  48.38   MAY   40  45  0.60  44.40   0.60   Open
DNA    112.00 118.22   MAY   95 100  0.50  99.50   0.50   Open
EBAY    75.94  82.14   MAY   65  70  0.65  69.35   0.65   Open
HDI     55.63  58.07   MAY   47  50  0.25  49.75   0.25   Open
PDCO    74.97  77.01   MAY   65  70  0.65  69.35   0.65   Open
CME    116.11 118.85   MAY  100 105  0.60 104.40   0.60   Open
MATK    65.12  68.13   MAY   55  60  0.60  59.40   0.60   Open

L/P = Long Put  S/P = Short Put  CB = Cost Basis  G/L = Gain/Loss


CALL-CREDIT SPREADS

Symbol  Pick   Last   Month L/C S/C Credit  C/B    G/L   Status

SOHU    25.46  22.84   MAY   35  30  0.60  30.60   0.60   Open
SFNT    31.65  28.60   MAY   40  35  0.70  35.70   0.70   Open
GENZ    46.40  46.46   MAY   55  50  0.60  50.60   0.60   Open
PRX     55.25  44.00   MAY   65  60  0.65  60.65   0.65   Open
MERQ    45.59  46.54   MAY   55  50  0.60  50.60   0.60   Open
NEM     42.86  40.40   MAY   50  47  0.25  47.75   0.25   Open
RYL     77.41  80.07   MAY   90  85  0.60  85.60   0.60   Open
AMZN    45.20  46.29   MAY   55  50  0.65  50.65   0.65   Open
BOBJ    27.85  29.10   MAY   35  30  0.75  30.75   0.75   Open

L/C = Long Call  S/C = Short Call  CB = Cost Basis  G/L = Gain/Loss

Business Objects (NASDAQ:BOBJ) is on the "watch" list and further
upside activity would suggest an early exit in the bearish spread.


DEBIT STRADDLES

Stock   Pick   Last   Exp.   Long  Long  Initial   Max     Play
Symbol  Price  Price  Month  Call  Put    Debit   Value   Status

SSYS    20.88  23.16   MAY    22    20     2.10    2.00    Open
ZMH     80.84  82.82   MAY    80    80     4.90    6.15    Open
COCO    32.46  35.37   MAY    32    32     4.10    4.70   No Play
LF      19.67  23.25   JUN    20    20     3.50    5.25    Open
BSTE    30.63  40.65   JUL    30    30     6.00   11.50    Open?
MKSI    23.10  22.19   JUL    22    22     4.70    5.50    Open

Biosite (NASDAQ:BSTE) has been the best performing position in
recent weeks, but Zimmer Holdings (NYSE:ZMH), LeapFrog (NYSE:LF)
and MKS Instruments have also been active, providing favorable
short-term gains.  The recent position in Corinthian Colleges
(NASDAQ:COCO) was not available at the target entry price, due
to the "gap-up" on the day after the straddle was listed as a
new candidate.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
NEW POSITIONS
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

This following group of plays is simply a list of candidates to
supplement your search for profitable trading positions.  As with
any new investment, you must decide if the selections meet your
criteria for potential plays.  Only you can know what strategies
are suitable for your personal skill level, risk-reward tolerance
and portfolio outlook.  In addition, we recommend that you avoid
any trading techniques in which you are not completely comfortable
with the potential capital loss, the necessary adjustments, and
the common entry-exit strategies.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

BULLISH PLAYS - CREDIT SPREADS

These candidates are based on the underlying issue's technical
history or trend.  The probability of profit in these positions
may also be higher than other plays in the same strategy, due to
small disparities in option pricing however, each play should be
evaluated for portfolio suitability and reviewed with regard to
your strategic approach and trading style.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

MTG - MGIC Investment  $74.42  *** Rally Mode! ***

MGIC Investment Corporation (NYSE:MTG) is a holding company that,
through its wholly owned subsidiary, Mortgage Guaranty Insurance
Corporation, provides private mortgage insurance in the United
States to the home mortgage lending industry.  Its products are
primary mortgage insurance and pool mortgage insurance.  Primary
mortgage insurance may be written on a flow basis, in which loans
are insured in individual, loan-by-loan transactions, or may be
written on a bulk basis, in which a large portfolio of loans is
individually insured in a single, bulk transaction.  In addition
to mortgage insurance on first liens, the firm provides lenders
with various underwriting and other services and products related
to home mortgage lending through other subsidiaries.

MTG - MGIC Investment  $74.42

PLAY (conservative - bullish/credit spread):

BUY  PUT  MAY-65.00  MTG-QM  OI=133  ASK=$0.25
SELL PUT  MAY-70.00  MTG-QN  OI=147  BID=$0.70
INITIAL NET-CREDIT TARGET=$0.50-$0.55
POTENTIAL PROFIT(max)=11% B/E=$69.50


__________________________________________________________________

SLAB - Silicon Laboratories  $56.33  *** Strong Sector! ***

Silicon Labs (NASDAQ:SLAB) designs and develops proprietary,
analog-intensive, mixed-signal integrated circuits for use in
a range of applications.  The firm groups its products into
two major categories: mobile handset products and broad-based,
mixed-signal products.  Its mobile handset products include the
Aero transceivers and radio frequency synthesizers.  Its broad
based, mixed-signal products include silicon Direct Access
Arrangement, ISOmodem, ProSLIC, digital subscriber line analog
front end, clock chips, SiPHY, optical transceivers and clock
and data recovery ICs, general purpose RF Synthesizers for non
handset applications, as well as the Cygnal microcontroller
family of products.

SLAB - Silicon Laboratories  $56.33

PLAY (less conservative - bullish/credit spread):

BUY  PUT  MAY-45.00  QFJ-QI  OI=846   ASK=$0.30
SELL PUT  MAY-50.00  QFJ-QJ  OI=3890  BID=$0.85
INITIAL NET-CREDIT TARGET=$0.60-$0.65
POTENTIAL PROFIT(max)=14% B/E=$49.40



~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

BEARISH PLAYS - CREDIT SPREADS

All of these positions are favorable candidates for "bear-call"
credit spreads, based on the current price or trading range of
the underlying issue and its recent technical history or trend.
The probability of profit from these positions may be higher
than other plays in the same strategy, due to disparities in
option pricing.  However, current news and market sentiment will
have an effect on these issues, so review each play individually
and make your own decision about its future outcome.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

NTES - Netease.com  $51.43  *** Premium-Selling Only! ***

NetEase.com (NASDAQ:NTES) is an Internet technology firm that
supports the interactive online and wireless community in China.
The company's content channels offer users a range of local,
regional and international Chinese language content, Web-based
communication services and sophisticated search capabilities and
provide a destination for Chinese Internet users to identify and
access resources, services, content and additional information
on the Internet.  In addition, the NetEase wireless value-added
services offer timely information, community interaction and
games via wireless short messaging service.

NTES - Netease.com  $51.43

PLAY (conservative - bearish/credit spread):

BUY  CALL  MAY-65.00  NQG-EM  OI=625   ASK=$0.40
SELL CALL  MAY-60.00  NQG-EL  OI=1797  BID=$0.85
INITIAL NET-CREDIT TARGET=$0.50-$0.60
POTENTIAL PROFIT(max)=11% B/E=$60.50


__________________________________________________________________

VECO - Veeco Instruments  $27.43  *** In A Trading Range? ***

Veeco Instruments (NASDAQ:VECO) designs, manufactures, markets
and services a line of equipment primarily used by manufacturers
in data storage, semiconductor and telecommunications/wireless
markets.  The company's line of products allows customers to
improve time to market of next-generation products.  The firm's
products are also enabling advancements in nanoscience and other
areas of scientific and industrial research.  The company offers
two principal product lines, process equipment and metrology.

VECO - Veeco Instruments  $27.43

PLAY (conservative - bearish/credit spread):

BUY  CALL  MAY-35.00  QVC-EG  OI=73    ASK=$0.20
SELL CALL  MAY-30.00  QVC-EF  OI=1262  BID=$0.70
INITIAL NET-CREDIT TARGET=$0.55-$0.60
POTENTIAL PROFIT(max)=12% B/E=$30.55



~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
DEBIT SPREADS
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

This strategy offers a risk-reward outlook similar to credit
spreads, however there is no margin requirement as the initial
debit for the position is also the maximum loss.  Since these
positions are based primarily on technical indications, traders
should review the current news and market sentiment surrounding
each issue and make their own decision about the outcome of the
position.


SUPPLEMENTAL CANDIDATES

The following group of issues is a list of additional candidates
to supplement your search for profitable trading positions.  As
with any investment, you must decide if the selections meet your
criteria for potential plays. Only you can know what strategies
and positions are suitable for your experience level, risk-reward
tolerance and portfolio outlook.  They will not be included in the
weekly portfolio summary.
__________________________________________________________________

CALL DEBIT SPREADS

Stock   Current Long    Ask    Short   Bid    Cost   Spread  Max
Symbol  Price   Call   Price   Call    Price  Basis  Debit   ROI%

ASKJ    41.33   AUKFF  12.20   AUKFG   7.70   34.50   4.50   11.1
CELG    56.94   LQHFI  13.00   LQHFJ   8.50   49.50   4.50   11.1
CLS     19.69   CLSFC   4.90   CLSFW   2.65   17.25   2.25   11.1
COH     44.00   COHFG   9.30   COHFH   4.80   39.50   4.50   11.1
LAMR    42.90   LJQFG   8.10   LJQFH   3.60   39.50   4.50   11.1
MOGN    65.59   QOGFK  12.00   QOGFL   7.50   59.50   4.50   11.1
NSM     46.21   NSMFG  11.60   NSMFH   7.10   39.50   4.50   11.1
OSTK    36.25   QKTFE  12.10   QKTFF   7.60   29.50   4.50   11.1
QCOM    66.98   AAOFK  12.50   AAOFL   8.00   59.50   4.50   11.1
UPL     34.01   UPLFE   9.30   UPLFF   4.80   29.50   4.50   11.1
WFMI    80.58   FMQFN  11.30   FMQFO   6.80   74.50   4.50   11.1


PUT DEBIT SPREADS

Stock   Current Long    Ask    Short   Bid    Cost   Spread  Max
Symbol  Price   Put    Price   Put     Price  Basis  Debit   ROI%

CMVT    18.64   CQVRX   4.10   CQVRD   1.90   20.30   2.20   13.6
IGT     41.65   IGXRJ   8.70   IGXRI   4.30   45.60   4.40   13.6
INTU    44.32   IQURJ   6.10   IQURW   3.90   47.80   2.20   13.6
NFLX    29.61   QNQRU   8.60   QNQRG   6.40   35.30   2.20   13.6
OVTI    26.86   UCMRG   8.60   UCMRZ   6.40   32.80   2.20   13.6
PTR     46.25   PTRRK   9.20   PTRRJ   4.80   50.60   4.40   13.6
TXN     27.94   TXNRZ   4.80   TXNRF   2.60   30.30   2.20   13.6
VECO    27.43   QVCRG   8.10   QVCRF   3.70   30.60   4.40   13.6
OIIM    16.45   XQQRD   4.00   XQQRW   1.80   17.80   2.20   13.6
N       32.81     NRH   7.50     NRG   3.10   35.60   4.40   13.6
CHA     31.97   CHARH   8.50   CHARG   4.10   35.60   4.40   13.6
BZH    102.06   BZHRC  14.40   BZHRB  10.00  110.60   4.40   13.6

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
STRADDLES AND STRANGLES
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Based on analysis of the historical option pricing and technical
background, these positions meet the fundamental criteria for
favorable volatility-based plays.

_________________________________________________________________

AH - Armor Holdings  $35.78  *** Recent Volatility! ***

Armor Holdings (NYSE:AH) is a manufacturer and provider of
security products, vehicle armoring systems and security risk
management services.  The company is organized and operated
under three business segments: Armor Holdings Products, and
Armor Mobile Security.  The company's Armor Holdings Products
Division manufactures and sells a wide range of branded law
enforcement equipment such as concealable and tactical body
armor, hard armor, duty gear, less-lethal munitions, anti-riot
products, police batons, emergency lighting products, forensic
products, firearms accessories and weapon maintenance products.
The Armor Mobile Security Division manufactures and installs
ballistic and blast protected armoring systems for military
vehicles, commercial vehicles, military aircraft and missile
components.  Quarterly earnings are due May 10, 2004.

AH - Armor Holdings  $35.78

PLAY (very speculative - neutral/debit straddle):

BUY CALL  MAY-35.00  AH-EG  OI=1119  ASK=$2.05
BUY PUT   MAY-35.00  AH-QG  OI=62    ASK=$1.20
INITIAL NET-DEBIT TARGET=3.00-$3.15
INITIAL TARGET PROFIT=$1.05-$1.70


_________________________________________________________________

QLTI - QLT Incorporated  $29.60  *** Earnings Speculation! ***

QLT Incorporated (NASDAQ:QLTI) is a bio-pharmaceutical company
engaged in the development and commercialization of products in
ophthalmology and oncology and in other fields where the product
can be marketed by a focused specialty sales and marketing team.
QLT is a provider in the field of photodynamic therapy, a field
of medicine that uses photosensitizers in the treatment of many
diseases.  QLT is also actively developing drug products that do
not employ photodynamic therapy.  Visudyne, which is QLT's major
commercial product, is a photosensitizer used to treat choroidal
neovascularization in patients with the wet form of age-related
macular degeneration.  Quarterly earnings are due April 27, 2004.

QLTI - QLT Incorporated  $29.60

PLAY (very speculative - neutral/debit straddle):

BUY CALL  MAY-30.00  QLT-EF  OI=560  ASK=$1.40
BUY PUT   MAY-30.00  QLT-QF  OI=267  ASK=$1.80
INITIAL NET-DEBIT TARGET=3.00-$3.10
INITIAL TARGET PROFIT=$1.00-$1.65



~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

SEE DISCLAIMER - SECTION 1

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~


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

OneStopOption.com

Trade: Securities, Stock Options, Futures Contracts

Service: Experienced Brokers
         Personal Assistance
         Convenience of One Brokerage
         Online and Live Broker Trading

Experience...  The Difference

OneStopOption.com   888-281-9569

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


*****************************************
PREMIUM-SELLING PLAYS: NAKED PUTS & CALLS
*****************************************

All of these issues have robust option premiums and favorable
technical indications.  However, current news and events as
well as market sentiment, will have an effect on these stocks
so review each position thoroughly and make your own decision
about its outcome.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
SUMMARY OF CURRENT POSITIONS - AS OF 04/23/04
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

The following summary is a reasonable account of the positions
previously offered in this section.  However, no representation
is being made as to the actual performance of a position and in
fact, there are frequently large differences between the summary
results and those of our subscribers, due to the variety of ways
in which each play can be opened, closed, and/or adjusted.  In
addition, the summary might not be completely representative of
the manner in which the average trader would react to changing
conditions in a position and to the options market in general.
The editor of this section does not take actual positions in any
published plays and the summary comments are simply a service to
help new traders understand when positions might be opened and
closed.  In most cases, actions taken based on the commentary
would be far too late to be effective, thus it is not intended
as a substitute for personal trade management nor does it in
any way replace your duty to diligently monitor and manage the
positions in your portfolio.


MONTHLY YIELD FOR UNCOVERED OPTIONS: MAXIMUM & SIMPLE

The Maximum Yield (listed in the summary and with "naked" option
selling plays) is the greatest possible profit available in the
position.  This amount, expressed as a percentage, is based on
the initial margin requirement as determined by the Board of
Governors of the Federal Reserve, the U.S. options markets and
other self-regulatory organizations.  Although increased margin
requirements may be imposed either generally or in individual
cases by various brokerage firms, our calculations use the widely
accepted margin formulas from the Chicago Board Options Exchange.
The "Simple Yield" is based on the cost of the underlying issue
(in the event of assignment), including the premium from the sold
option, thus it reflects the maximum potential loss in the trade.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

NAKED PUTS

Stock   Strike Strike Cost   Current   Gain    Max    Simple
Symbol  Month  Price  Basis   Price   (Loss)  Yield   Yield

FWHT     MAY    17    17.15   23.02    0.35   4.27%   2.04%
MICC     MAY    17    17.15   27.80    0.35   4.39%   2.04%
MNST     MAY    22    21.95   28.70    0.55   4.48%   2.51%
PLMO     MAY    17    16.90   19.62    0.60   6.80%   3.55%
HNT      MAY    22    22.00   26.01    0.50   4.76%   2.27%
IPXL     MAY    20    19.50   24.65    0.50   5.43%   2.56%
SSNC     MAY    22    21.60   26.44    0.90   7.85%   4.17%
TINY     MAY    15    14.70   20.82    0.30   4.60%   2.04%
ACCL     MAY    17    17.25   17.65    0.25   4.08%   1.45%
ADEX     MAY    20    19.45   20.93    0.55   6.05%   2.83%
IMM      MAY    15    14.70   19.85    0.30   5.24%   2.04%
IPXL     MAY    20    19.65   24.65    0.35   4.93%   1.78%
JBLU     MAY    22    22.15   28.54    0.35   4.11%   1.58%
LSCP     MAY    22    21.95   33.46    0.55   6.11%   2.51%
TINY     MAY    17    17.00   20.82    0.50   7.27%   2.94%
USG      MAY    15    14.25   15.80    0.75  11.45%   5.26%
XMSR     MAY    25    24.50   27.82    0.50   4.90%   2.04%
ASKJ     MAY    30    29.50   41.33    0.50   5.42%   1.69%
BRCM     MAY    37    36.70   42.21    0.80   5.86%   2.18%
CLZR     MAY    15    14.25   16.79    0.75  12.47%   5.26%
FWHT     MAY    20    19.35   23.02    0.65   8.83%   3.36%
IMM      MAY    17    17.05   19.85    0.45   8.37%   2.64%
INSP     MAY    35    34.45   40.32    0.55   5.28%   1.60%
MRVL     MAY    42    41.55   44.40    0.95   6.00%   2.29%
NFLX     MAY    27    27.10   29.61    0.40   4.65%   1.48%
ESIO     MAY    22    22.10   23.77    0.40   6.15%   1.81%
HOLX     MAY    20    19.50   22.77    0.50   8.05%   2.56%
GVHR     MAY    25    24.65   27.37    0.35   5.85%   1.42%
HSII     MAY    22    22.25   24.94    0.25   3.81%   1.12%
IMM      MAY    17    17.25   19.85    0.25   6.08%   1.45%
LF       MAY    20    19.55   23.25    0.45   7.54%   2.30%
TOMO     MAY    12    12.25   12.68    0.25   6.96%   2.04%
TSAI     MAY    20    19.80   23.50    0.20   4.37%   1.01%
TSO      MAY    20    19.50   20.90    0.50   8.18%   2.56%
APPX     MAY    35    34.40   44.18    0.60   5.81%   1.74%
BLDP     MAY    10     9.75   11.46    0.25   6.55%   2.56%
ELN      MAY    17    17.30   23.53    0.20   4.01%   1.16%
ERES     MAY    25    24.50   34.52    0.50   6.05%   2.04%
HOLX     MAY    20    19.65   22.77    0.35   4.54%   1.78%
LSCP     MAY    22    22.10   33.46    0.40   5.49%   1.81%
PDII     MAY    22    21.75   27.03    0.75   8.99%   3.45%
TELK     MAY    22    22.20   28.53    0.30   4.32%   1.35%
TNOX     MAY    15    14.50   17.40    0.50   8.35%   3.45%
APPX     MAY    35    34.65   44.18    0.35   4.47%   1.01%
EYE      MAY    17    17.20   22.68    0.30   5.96%   1.74%
JCOM     MAY    22    22.30   25.25    0.20   3.37%   0.90%
MGAM     MAY    22    21.90   23.75    0.60   8.55%   2.74%
MICC     MAY    22    22.10   27.80    0.40   6.16%   1.81%
NET      MAY    17    17.10   19.04    0.40   7.30%   2.34%
NIHD     MAY    33    32.88   39.72    0.50   5.22%   1.52%
PXLW     MAY    17    16.95   20.17    0.55   9.31%   3.24%
SNIC     MAY    17    17.15   20.00    0.35   6.87%   2.04%

Some of the new positions may not have been available at the
listed prices, due to the recent volatile market activity.
Conservative investors should consider closing positions in
ADE Corporation (NASDAQ:ADEX), Multimedia Games (NASDAQ:MGAM),
Pharmacopeia (NASDAQ:ACCL), Tom Online (NASDAQ:TOMO), Netflix
(NASDAQ:NFLX) and USG Corporation (NYSE:USG).


NAKED CALLS

Stock   Strike Strike Cost   Current   Gain    Max    Simple
Symbol  Month  Price  Basis   Price   (Loss)  Yield   Yield

AFCI     MAY    25    25.75   21.06    0.75   7.73%    2.91%
QLGC     MAY    37    37.95   27.14    0.45   4.22%    1.19%
AVCT     MAY    37    38.15   35.28    0.65   6.74%    1.70%
INTU     MAY    47    48.00   44.32    0.50   4.10%    1.04%
PPCO     MAY    20    20.30   16.11    0.30  10.11%    1.48%
SINA     MAY    45    45.55   35.83    0.55   6.61%    1.21%
NANO     MAY    20    20.40   14.58    0.40  10.66%    1.96%
PHTN     MAY    35    35.60   31.45    0.60   8.38%    1.69%
SFA      MAY    35    35.55   35.96   (0.41)  0.00%    1.55%
SOHU     MAY    25    25.75   22.84    0.75  13.84%    2.91%

Conservative investors should consider closing the position in
Scientific America (NYSE:SFA) after the company's "bullish"
earnings report.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
NEW POSITIONS
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

This following group of plays is simply a list of candidates to
supplement your search for profitable trading positions.  As with
any new investment, you must decide if the selections meet your
criteria for potential plays.  Only you can know what strategies
are suitable for your personal skill level, risk-reward tolerance
and portfolio outlook.  In addition, we recommend that you avoid
any trading techniques in which you are not completely comfortable
with the potential capital loss, the necessary adjustments, and
the common entry-exit strategies.  The positions with "*" will be
included in the weekly summary.  Those with "TS" (Target-Shoot)
are below our minimum monthly return, but may offer a favorable
entry price with a limit order, due to the daily volatility of
the underlying issue.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

WARNING: THE RISK IN SELLING UNCOVERED OPTIONS IS SUBSTANTIAL!

The sale of uncovered puts entails considerable financial risk,
far more than the initial margin or collateral required to open
a position.  The maximum financial obligation for the sale of a
naked put is the strike price (of the underlying stock) that is
sold.  Although this obligation is reduced by the premium from
the sale of the option, a writer of puts should have the cash or
collateral equivalent of the sold strike price in reserve at all
times.  In addition, there is one very important rule when using
this strategy: Don't sell puts on stocks that you don't want to
own!  Why?  Because stocks occasionally experience catastrophic
declines, exponentially increasing the margin maintenance and
possibly causing a devastating shortfall in your portfolio.  It
is also important that you consider using trading stops on naked
option positions to help limit losses when a stock's price falls.
Many professional traders suggest closing the position when the
underlying share value moves below the sold strike, or using a
"buy-to-close" stop order at a price that is no more than twice
the original premium received from the sold option.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

NEW NAKED-PUT CANDIDATES

Stock   Strike Strike Cost   Current   Max     Max    Simple
Symbol  Month  Price  Basis   Price   Profit  Yield   Yield

CAMD     MAY    15    14.60   16.78    0.40  10.87%   2.74%
DNDN     MAY    12    12.25   14.11    0.25   8.45%   2.04%
FWHT     MAY    20    19.60   23.02    0.40   8.79%   2.04%
MICC     MAY    25    24.45   27.80    0.55   8.98%   2.25%
NIHD     MAY    35    34.50   39.72    0.50   6.21%   1.45%
OSTK     MAY    30    29.25   36.25    0.75  12.07%   2.56%
SNIC     MAY    17    17.20   20.00    0.30   7.49%   1.74%
TINY     MAY    17    17.20   20.82    0.30   8.19%   1.74%
UTHR     MAY    20    19.65   23.74    0.35   8.30%   1.78%

__________________________________________________________________

CAMD - California Micro Devices  $16.78  *** Multi-Year High! **

California Micro Devices (NASDAQ:CAMD) designs and markets
application-specific analog semiconductor products primarily
for the mobile and computing markets, as well as for other
markets, such as the light-emitting diode lighting market.
The company also designs, sells and manufactures thin film
resistor networks for the medical sector.  The firm supplies
application-specific integrated passive devices and offers a
growing portfolio of active analog semiconductors, including
power management and Universal Serial Bus transceiver devices.

CAMD - California Micro Devices  $16.78

PLAY (sell naked put):

Action    Month &   Option    Open  Last  Cost    Max.  Simple
Req'd     Strike    Symbol    Int.  Price Basis  Yield  Yield

SELL PUT  MAY 15    CGQ QC     50   0.40  14.60  10.8%   2.7% *


__________________________________________________________________

DNDN - Dendreon  $14.11  *** Drug Sector Speculation! ***

Dendreon Corporation (NASDAQ:DNDN) is dedicated to the discovery
and development of novel products for the treatment of diseases
through its manipulation of the immune system.  The firm product
pipeline is focused on cancer and includes therapeutic vaccines,
monoclonal antibodies and small-molecule product candidates.  The
product candidates most advanced in development are therapeutic
vaccines to stimulate a patient's immunity for the treatment of
cancer.

DNDN - Dendreon  $14.11

PLAY (sell naked put):

Action    Month &   Option    Open   Last  Cost    Max.  Simple
Req'd     Strike    Symbol    Int.   Price Basis  Yield  Yield

SELL PUT  MAY 12.5  UKO QV     694   0.25  12.25   8.4%   2.0% *


__________________________________________________________________

FWHT - FindWhat.com  $23.02  *** The Uptrend Resumes! ***

FindWhat.com (NASDAQ:FWHT) operates online marketplaces that
connect the consumers and businesses that are most likely to
purchase specific goods and services with the advertisers that
provide those goods and services.  Online advertisers determine
the per-click fee they will pay for their advertisements, which
FindWhat.com and its private-label partners such as Terra Lycos's
Lycos.com and HotBot distribute to millions of Internet users.
Their network includes hundreds of distribution partners, such as
CNET's Search.com, Excite, Webcrawler, NBCi, MetaCrawler, Dogpile,
Go2Net and Microsoft Internet Explorer Autosearch.

FWHT - FindWhat.com  $23.02

PLAY (sell naked put):

Action    Month &   Option    Open   Last  Cost    Max.  Simple
Req'd     Strike    Symbol    Int.   Price Basis  Yield  Yield

SELL PUT  MAY 20    HFQ QD     331   0.40  19.60   8.8%   2.0% *


__________________________________________________________________

MICC - Millicom Cellular  $27.80  *** Wireless Telecom Giant ***

Millicom International Cellular S.A. (NASDAQ:MICC) is a global
telecommunications investor with cellular operations in Asia,
Latin America and Africa.  The company has a number of cellular
operations and licenses in countries around the world and the
group's cellular operations have a combined population under
license of over 500 million people.  In addition, MIC operates
a GSM clearing house, provides high-speed wireless data services
in various countries and has a licenses to develop high speed
wireless data services in other areas.  MIC also has a major
interest in Tele2 AB, an alternative pan-European telecom firm
offering fixed and mobile telephony, data network and Internet
services.

MICC - Millicom Cellular  $27.80

PLAY (sell naked put):

Action    Month &   Option    Open   Last  Cost    Max.  Simple
Req'd     Strike    Symbol    Int.   Price Basis  Yield  Yield

SELL PUT  MAY 25    CQD QE     978   0.55  24.45   8.9%   2.2% *


__________________________________________________________________

NIHD - NII Holdings  $39.72  *** Another 2004 High! ***

NII Holdings (NASDAQ:NIHD) provides digital wireless communication
services for business customers through four operating companies
located in selected Latin American markets.  The firm was formerly
known as Nextel International.  Its main operations are in major
business centers and related transportation corridors of Mexico,
Brazil, Peru and Argentina.  It also provides analog specialized
mobile radio services through two operating companies in Chile.

NIHD - NII Holdings  $39.72

PLAY (sell naked put):

Action    Month &   Option    Open   Last  Cost    Max.  Simple
Req'd     Strike    Symbol    Int.   Price Basis  Yield  Yield

SELL PUT  MAY 35    QHQ QG      35   0.50  34.50   6.2%   1.4% *


__________________________________________________________________

OSTK - Overstock.com  $36.25  *** Premium-Selling Only! ***

Overstock.com (NASDAQ:OSTK) is an online "closeout" retailer
offering discount, brand-name merchandise for sale primarily
over the Internet.  The company's merchandise offerings include
bed-and-bath goods, kitchenware, watches, jewelry, electronics,
sporting goods and designer accessories.  Overstock offers its
customers an opportunity to shop for bargains conveniently,
while offering an alternative inventory liquidation distribution
channel to its suppliers.  The company typically offers around
5,000 non-media products and over 100,000 media products (books,
CDs, DVDs, video cassettes and video games) in seven departments
on its Websites, www.overstock.com, www.overstockb2b.com and
www.worldstock.com.

OSTK - Overstock.com  $36.25

"SPECULATIVE" PLAY (sell naked put):

Action    Month &   Option    Open   Last  Cost    Max.  Simple
Req'd     Strike    Symbol    Int.   Price Basis  Yield  Yield

SELL PUT  MAY 30    QKT QF     640   0.75  29.25  12.0%   2.6% *


__________________________________________________________________

SNIC - Sonic Solutions  $19.11  *** Earnings Speculation! ***

Sonic Solutions (NASDAQ:SNIC) develops and markets computer-based
tools that enable the creation of digital audio and video titles
in the CD-Audio and DVD-Video formats, and in related formats.
The company also licenses the software technology underlying its
tools to various other companies to incorporate in products they
develop.  It has three business units corresponding to its three
product categories: professional products, desktop products and
technology products.

SNIC - Sonic Solutions  $20.00

PLAY (sell naked put):

Action    Month &   Option    Open   Last  Cost    Max.  Simple
Req'd     Strike    Symbol    Int.   Price Basis  Yield  Yield

SELL PUT  MAY 17.5  QNI QW      42   0.30  17.20   7.4%   1.7% *


__________________________________________________________________

TINY - Harris & Harris Group  $20.82  *** Next Leg Up? ***

Harris & Harris Group (NYSE:TINY) is a venture capital investment
company that is operating as a business development company.  The
company's investment objective is to achieve long-term capital
appreciation, rather than current income, from its investments.
The company has invested a substantial portion of its assets in
privately held start-up companies and in the development of new
technologies in various industry segments.  These privately held
businesses generally tend to be thinly capitalized, unproven,
small companies based on risky technologies that lack management
depth and have not attained profitability nor have any history of
operations.

TINY - Harris & Harris Group  $20.82

PLAY (sell naked put):

Action    Month &   Option    Open   Last  Cost    Max.  Simple
Req'd     Strike    Symbol    Int.   Price Basis  Yield  Yield

SELL PUT  MAY 17.5  QJT QW     282   0.30  17.20   8.2%   1.7% *


__________________________________________________________________

UTHR - United Therapeutics  $23.74  *** In A Trading Range? ***

United Therapeutics (NASDAQ:UTHR) is a biotechnology company
focused on the development and commercialization of therapeutics
to treat chronic and life-threatening diseases in 3 therapeutic
areas: cardiovascular medicine, infectious disease and oncology.
It has 5 therapeutic platforms: Prostacyclin analogs are stable
synthetic forms of a molecule that has effects on blood-vessel
health and function; Remodulin has been approved in the United
States for the treatment of pulmonary arterial hypertension in
patients with New York Heart Association Class II-IV symptoms;
Immunotherapeutic monoclonal antibodies are antibodies that
activate patients' immune systems to treat cancer; Glycobiology
anti-viral agents are a class of small molecules that may be
effective as an oral therapy for hepatitis C or other infections,
and Telemedicine involves portable digital devices that enable
physicians to remotely monitor patients' bodily measurements.

UTHR - United Therapeutics  $23.74

PLAY (sell naked put):

Action    Month &   Option    Open   Last  Cost    Max.  Simple
Req'd     Strike    Symbol    Int.   Price Basis  Yield  Yield

SELL PUT  MAY 20    FUH QD     334   0.35  19.65   8.3%   1.8% *



~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

BEARISH PLAYS - NAKED CALLS

Based on analysis of option pricing and the underlying stock's
technical background, these positions meet our fundamental
criteria for bearish "premium-selling" strategies.  Each issue
has robust option premiums, a well-defined resistance area and
a high probability of remaining below the target strike prices.
As with any recommendations, these positions should be carefully
evaluated for portfolio suitability and reviewed with regard to
your strategic approach and personal trading style.

WARNING: THE RISK IN SELLING UNCOVERED OPTIONS IS SUBSTANTIAL!

The sale of uncovered calls entails considerable financial risk,
far more than the initial margin or collateral required to open
the position.  The maximum financial obligation for the sale of a
naked option is the strike price (of the underlying stock) that
is sold.  Although this obligation is reduced by the premium from
the sale of the option, a writer of options must have the cash or
collateral equivalent of the sold strike price in reserve at all
times.  The simple fact is: stocks often experience large price
swings, exponentially increasing the margin maintenance and very
possibly causing a devastating shortfall in your portfolio.  It
is also important that you consider using trading stops on naked
option positions to help limit losses when a stock price moves in
a volatile manner.  Many professional traders suggest closing the
position when the underlying share value moves beyond the sold
strike, or using a "buy-to-close" stop order at a price that is no
more than twice the original premium received from the sold option.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

HOV - Hovnanian Enterprises  $38.28  *** Sector Slump! ***

Hovnanian Enterprises (NYSE:HOV) constructs and sells single-family
detached homes and attached condominium apartments and townhouses
in more than 196 new home communities in New Jersey, Pennsylvania,
New York, Virginia, Maryland, North Carolina, Texas and California.
The firm offers a wide variety of homes that are designed to appeal
to first-time buyers; first- and second-time, move-up buyers; luxury
buyers; active adult buyers, and empty nesters.  In addition, the
company provides financial services, including mortgage banking and
title services to the homebuilding operations' customers.  The firm
does not retain or service the mortgages that it originates, but
rather sells the mortgages and servicing rights to investors.

HOV - Hovnanian Enterprises  $38.28

PLAY (sell naked call):

Action     Month &   Option    Open   Last  Cost    Max.  Simple
Req'd      Strike    Symbol    Int.   Price Basis  Yield  Yield

SELL CALL  MAY 42.5  HOV EV    6064   0.30  42.80   3.8%   0.7% TS
SELL CALL  MAY 40    HOV EH    3643   0.85  40.85   8.5%   2.1%


__________________________________________________________________

SWIR - Sierra Wireless  $28.80  *** Disappointing Outlook? ***

Sierra Wireless (NASDAQ:SWIR) is a leader in delivering highly
differentiated wireless solutions that enable our customers to
improve their productivity and lifestyle.  Sierra Wireless
develops and markets AirCard, the industry-leading wireless PC
card line for portable computers; embedded modules for OEM
wireless applications; the MP line of rugged vehicle-mounted
connectivity solutions and Voq, a line of professional phones
with secure, easy-to-use, products for mobile professionals.

SWIR - Sierra Wireless  $28.80

"SPECULATIVE" PLAY (sell naked call):

Action     Month &   Option    Open   Last  Cost    Max.  Simple
Req'd      Strike    Symbol    Int.   Price Basis  Yield  Yield

SELL CALL  MAY 35    IYQ EG     724   0.60  35.60  13.7%   1.7% *
SELL CALL  MAY 30    IYQ EF     118   1.85  31.85  22.0%   5.8%



~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

SEE DISCLAIMER - SECTION 1

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~


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

OneStopOption.com

Trade: Securities, Stock Options, Futures Contracts

Service: Experienced Brokers
         Personal Assistance
         Convenience of One Brokerage
         Online and Live Broker Trading

Experience...  The Difference

OneStopOption.com   888-281-9569

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


**********
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