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Daily Newsletter, Wednesday, 10/13/2004

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The Option Investor Newsletter                Wednesday 10-13-2004
Copyright 2004, All rights reserved.                        1 of 2
Redistribution in any form strictly prohibited.


In Section One:

Wrap: Oil Slick 
Futures Wrap: See Note
Index Trader Wrap: Halloween isn't until October 31 


Posted online for subscribers at http://www.OptionInvestor.com
******************************************************************
MARKET WRAP  (view in courier font for table alignment)
******************************************************************
      10-13-2004           High     Low     Volume   Adv/Dcl
DJIA    10002.33 - 74.85 10127.17  9957.79 1.89 bln  821/1997
NASDAQ   1920.53 -  4.64  1948.01  1914.46 1.77 bln 1156/1838
S&P 100   535.48 -  3.74   541.94   533.55   Totals 1977/3835
S&P 500  1113.65 -  8.19  1127.01  1109.63
SOX       393.25 +  6.89   399.67   386.36
RUS 2000  569.42 -  7.29   580.74   568.51
DJ TRANS 3282.43 - 56.55  3359.80  3272.60
VIX        15.42 +  0.37    15.63    13.92
VXO (VIX-O)16.25 +  1.08    16.70    14.99
VXN        22.13 +  1.20    22.94    20.52
Total Volume 3,660M
Total UpVol  1,393M
Total DnVol  2,174M
Total Adv  1977
Total Dcl  3835
52wk Highs   80 
52wk Lows    62
TRIN       0.97
PUT/CALL   1.07
******************************************************************

	Oil Slick
Jonathan Levinson

Bulls lost their footing as oil staged a dramatic intraday 
reversal from lows below the 52 level, giving up gains across the 
indices and diving to mid-afternoon lows.  A hesitant rangebound 
bounce ensued, with equities finishing the day in light negative 
territory.

The rejections at both the day highs and lows lined up with solid 
volume on the indices, as the market delivered enough to confound 
bulls and bears alike.  Volatility increased overall, with the 
NDX volatility index (QQV) rising 4.75% to close at 21.15, while 
the OEX equivalent (VXO) tacked on a whopping 21.27%.  While it's 
tempting to ignore external factors such as options expiration 
week and just focus on the charts, I don't believe that this 
factor can be safely ignored in assessing the volatility data.  
With op-ex week nearing its crescendo, I'm inclined to take not 
just the volatility indices but even the index price charts with 
a grain of salt.



Daily Dow Chart


The Dow managed to close above 10,002.33 after keeping traders on 
the edge of their seats until the final second.  While the 
headline number may have closed above the 10K line, there's 
simply nothing bullish about the day's candle print.  The  
rejection at the high left an upper doji shadow, and what 
followed was the first daily close below the rising pennant 
support line since the August lows.  The bounce from above 9950 
left a bullish lower shadow as well, but the close below the 
rising support line on strong volume has all the makings of a 
downside breakout.  Below 9990, next support is at 9940-50, below 
which there's light support at 9860 before the stronger line at 
9800.



Daily S&P 500 Chart


The SPX went out at 1113.64%.  Like the Dow, it too printed the 
first sell signals of a daily cycle downphase.  This downphase 
launched from lower oscillator highs as indicated on the chart, 
which, combined with the higher price high gives bears a 
confirmed bearish divergence.  It closed below the rising support 
line at 1119, and if bulls fail to regain the line tomorrow, we 
should see a retest of 1110 on the way to 1104 and 1096 support.


	Daily Nasdaq Chart


Relative to its peers, the Nasdaq is a beacon of strength on the 
daily chart, with both the rising support line from August and 
even yesterday's lows holding firm.  I suspect that the 
widespread angst over the oil rally is sparing the tech-centric 
Nasdaq, though I don't expect to see the Naz diverge from its 
peers for long.  It too is sporting a bearish oscillator 
divergence and fresh sell signals today.  Below its closing 
support line at 1920, there's trendline support at 1912 and 
confluence support at 1895, followed by 1880 and 1840-45.



	Weekly TNX Chart


Bonds traded in a world of their own again today, with ten year 
treasuries gapping lower at the open and then rising for the 
remainder of the day to take out yesterday's high.  For the day, 
ten year note yields (TNX) declined 2.4 bps or .59% to close at 
4.078%.  On the weekly chart, this week's TNX decline occurs in 
the context of an attempted weekly cycle upphase from a higher 
price low.  However, the rise off the 2003 yield low/treasury 
high is taking the shape of a broad bearish rising wedge which, 
if 3.9% support fails, projects back to the 3.05% lows.  Traders 
will be watching the 3.9%-4.25% range.  While the weekly cycle 
favors an upside move, a break of either level should be 
directional.



Weekly chart of Crude oil


Crude oil opened very weak, extending yesterday's key downside 
reversal and breaking below 52 after posting a record high at 
$54.45 yesterday.  This reversal followed the International 
Energy Agency's comments yesterday to the effect that oil demand 
will grow by 2.71M bpd this year, the largest increase in 24 
years, but that demand should slow to a 1.45M bpd increase in 
2005.  The IEA also noted that China is seeking to reduce its 
consumption of oil via conservation and alternative sources of 
energy.  The fact that oil has become overbought on multiple 
timeframes following the nearly vertical price climbs in recent 
sessions no doubt contributed to the morning weakness as well.

The weakness was not to last, however, and the bearish arguments 
sound hollow.  Supply remains tight and the market sensitive to 
supply disruptions.  Currently, more than a quarter of production 
from the Gulf of Mexico is still trying to recover from Hurricane 
Ivan, and the Nigerian labor disputes have yet to be resolved.  
Perhaps more significantly, however, the steep weekly uptrend on 
the 3 year chart, with the price of crude nearly tripling during 
this period, has yet to be seriously tested by this week's 
pullback.  

These bullish factors reasserted themselves in the early
afternoon, with Nymex crude bouncing from a session low of 51.475 
to close at 53.625.  Oil traders will be watching the tomorrow's 
releases of this week's inventory updates from the Energy 
Department and the American Petroleum Institute, delayed because 
of the Columbus Day holiday.

The API released its “October Monthly Statistical Report” today, 
notably reporting that US production in September is 15% below 
its September 2003 level to 4.85M bpd, its lowest monthly level 
in 50 years.  The report attributed the drop to Hurricane Ivan, 
with refinery activity on the Louisiana Gulf Coast falling to 65% 
of capacity.  This was exacerbated by the utilization rate 
holding above 90%.  This remains the “story” for oil- high 
inelastic demand causing prices to remain vulnerable to any 
disruption in supply.

It was a quiet day for economic reports, with the real action 
commencing tomorrow with the August trade balance, September 
export prices ex-agriculture and import price ex-oil, as well as 
initial claims for the week ending October 9th.  The most 
significant data released today was from the Mortgage Bankers 
Association, which announced that overall demand for US Mortgages 
fell, with applications dropping 9.2% last week.  The Purchase 
Index, which measures mortgage applications for new homes, fell 
4.9%.  The Refi Index dropped 14.2%.  This is generally volatile 
data from week to week, but the decline in mortgage activity 
occurred alongside a decline in rates- usually, we would expect 
to see the reverse.

Blue chips got a boost in the premarket from MCD, which reported 
that Q3 earnings rose 42% on a pro forma basis.  The company 
reported earnings of 61 cents per share, blowing away analyst 
forecasts of 49 cents per share, with sales at namesake 
restaurants rising 7.3% in September and 5.8% for the quarter.  
MCD supersized its gains, closing higher by 4.61% to close at 
28.82.

HDI announced record quarterly earnings, with Q3 net income up 
more than 20% to 77 cents per share, beating average analyst 
expectations by 2 cents.  Revenue rose nearly 15% from 1.13B to 
1.3B in Q3 on sales of $996.6M.  The company cited higher gross 
margins resulting from US Dollar weakness and improved 
operational efficiency.  However, projections for slower sales 
and a drop in US retail sales of motorcycles dominated, with the 
stock getting hit for a 1.71% loss to close at 58.72.  The 
company noted that 2003 saw a surge in sales for Harley 
Davidson's Centennial anniversary, which contributed to this 
year's relative drop.  

HMT came in with good news, reporting a reduction of its 
quarterly net loss from 35 cents per share in Q3 2003 to 17 cents 
per share or $47M.  The hotel owner cited increased revenues 
resulting from a hike in room rates.  The stock bucked the 
broader market, rising .41% to close at 14.54.

After the bell, NVLS announced Q3 earnings of 45 cents per share 
on sales of 415.9M which amounted to 38 cents per share net of 
one-time benefits, meeting analyst expectations.  NVLS got 
clocked on the announcement, dropping 3.24% afterhours from  its 
close of 26.88 (an intraday gain of 1.28% preceding the news).  
This amounted to a paragon of strength compared with SNDK, which 
was down 16.03% as of this writing at 23.68 after the company 
announced a 5 cent miss for Q3, with net earnings of 29 cents on 
sales of 408M from 281M one year ago.  QLGC was lower by 1.06% at 
29.80 afterhours after beating expectations of 36 cents by 4 
cents, while AAPL was up 7.99% at 41.35 after blowing away 
expectations for 18 cents on 2.15B revenue with earnings of 27 
cents on 2.35B in revenue.

For tomorrow, as if the technical picture wasn't cloudy enough, 
there's the array of economic data noted above, scheduled for 
release at 8:30.  While the financial press correlated the sudden 
dollar drop in the afternoon with the spike higher in oil, I'm 
far from convinced that the oil move prompted the dollar's dive.  
In fact, the forex market is by far the larger market.  Whether 
it was speculation or sudden inspiration as to the contents of 
tomorrow morning's economic data, we can only guess.  The 
indicators are pointing south, but they were yesterday morning 
before the enormous runup that reversed today.  With op-ex week 
in full-swing, technical signals are less reliable than usual.  
For the time being, however, the bears appear to be in control of 
the Dow and SPX with the Nasdaq trailing behind, while the bulls 
remain in control of crude oil.


***************
FUTURES MARKETS
***************

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


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*****************
INDEX TRADER WRAP
*****************

Halloween isn't until October 31

As many news bulletins as I read during a day, either I missed 
the Energy Information Agency (EIA) telling the market that 
today's scheduled release of weekly oil/gasoline/distillate 
inventory data was going to be delayed until tomorrow morning, or 
the EIA decided to play "trick or treat" on October 13th, instead 
of the 31st.

While the one-day delay in weekly crude inventory data may not 
have made any difference as it relates to today's eventually 
lower trade for equities, when oil is holding near record highs, 
the rather eagerly anticipated information, or lack thereof did 
little to help market psychology toward stocks.

In Jim Brown's Market Wrap, he posed the question if Intel's 
(NASDAQ:INTC) $20.99 +3.50% and Yahoo's (NASDAQ:YHOO) $34.96 
+2.13% earnings would be close enough to trigger a broader market 
bullish response.

Answer:  Not today, and not with oil above $52, perhaps $50.

	November Crude Oil futures (cl04x) - 30-minute intervals

 

November Crude futures were below the $52.00 level when stocks 
opened for trade, and the way stock futures had built gains in 
the overnight session, there was a feeling of bullish optimism.

I waited, and waited, then waited some more for the energy data, 
when the headline crossed that the EIA was delaying its release 
of weekly inventory data until tomorrow.  As oil moved above $52, 
bullish optimism for equities began to fade.

But I can say it was "oil's fault."

Most metal related stocks, whether they be precious or 
industrial, were simply hammered lower from their opening ticks, 
with the look of pre-determined selling.  The very broad NYSE 
Composite ($NYA.X) 6,556.53 -0.8% was first to turn red.

Despite oil's late session rally, the CBOE Oil Index (OIX.X) 
390.12 -2.08% finish lower on the session, but recouped about 1/3 
of its intra-day losses to finish down 8 points instead of 12.

	Market Volatility Index (VIX.X) - 30-minute intervals

 

The VIX.X dropped below its WEEKLY Pivot for the first time this 
week at its open, but for the most part, rose higher after 10:15 
AM EDT.  With October expiration just a day away, you can almost 
feel, if not see how oil's rise created little "spikes" of in and 
out the money call selling capitulation.

SPX Option Chain - Sorted by Volume

 

Heavy trading relative to open interest was found in the SPX Nov. 
1,005 and 995 puts and unless the nations oil reserves have gone 
dry, that type of trading look highly spec-related and can 
"artificially inflate" the VIX.X.  In PINK, LIGHT BLUE, and DARK 
BLUE I've marked those October contract's open interest that the 
SPX closed nearest to.

The 1,125 strike looked pretty well matched, and I'd be willing 
to bet there wasn't a lot of call buying today.  An 82% decline 
by the close is what some would describe as "Max Pain" for sure, 
while a hefty 106% gain for the 1,125 puts sweetened a bear's 
tooth.

SPX 1,020 is the "Max Pain" level for October, and if option 
expiration is going to have any dealings in tomorrow's trade, an 
options market maker could inflict greater pain on the put side 
(15,143 OI) versus the call (20,640 OI) on an SPX close back near 
1,120.

The 1,115 calls are now out the money and stand the risk of going 
"poof" and turning into a pumpkin, or $0.00, but the higher open 
interest of 20,640 in the puts, now in the money would be 
profitable if we close here or lower tomorrow.  

In summary, the SPX option market maker might have a vested 
interest in a higher trade tomorrow, but oil might have something 
to day about that.

Somewhat concerning into tomorrow's NDX.X expiration is its "Max 
Pain" theory value of 1,400.

	NASDAQ-100 Index (NDX.X) - Daily Intervals

 

When the VIX.X rose back above its WEEKLY Pivot this morning, I 
started reviewing some option action, where I had been focusing a 
little more on NASDAQ-100 options of late, as the NDX.X is 
furthest from its October "Max Pain" of 1,400, which just so 
happens to be the 38.2% retracement from a conventional use of 
retracement.  

I didn't see anything unusual in the NDX.X options I have been 
following, but I did see some unusual action at (see MM archive 
at 10:23:16 AM) where the QQQ Nov. $34 puts (QAV-WH) were trading 
a rather heavy 157,183 contracts versus 127,878 open interest.  
At the time, the QQQ was trading $35.89, the NASDAQ-100 Market 
Volatility Index (VXN.X) was reading 21.51 +2.77%.

Now, I've marked "QQQ $34" on the NDX.X chart, where after 
looking at the QQQ chart, I eyeball past QQQ trade of $34 
equivalent to NDX.X 1,380.

My initial analysis of that trade was that it was probably a put 
premium seller, selling $34, taking in some premium of $0.40 per 
contract.  I will admit that I would feel more comfortable in 
that analysis if the NDX/QQQ could show some muster above the 
200-day SMA.

I'd add to that, the Morgan Stanley High Tech 35 (MSH.X) 451.31 
+0.12%, not faltering at the 459 level like it did today.

By NO MEANS was Intel's (INTC) quarterly earnings a "blow out."  
But what tech bulls want to see is a MARKET looking 3 to 6-months 
down the road see Intel's comments regarding inventory builds 
abating become the turning point for a second leg of tech 
expansion.

	Morgan Stanley High Tech 35 (MSH.X) - Daily Intervals

 

The somewhat broader NASDAQ-100 still remains stronger than the 
narrower BIG tech of the MSH.X, which didn't see a convincing 
bullish trade today, as its 50% retracement found sellers.  It 
could be oil, it could be October expiration, but when a market 
becomes "truly convinced" a turn higher is in the making, buyers 
should overcome sellers.  Despite a bullish-looking response to 
Intel's comments, BIG tech seems hesitant.  October "Max Pain" 
theory for the MSH.X is calculated at 450 (5-point increments).

	Dow Industrials (INDU) Chart - Daily Intervals

 

By nearly every measure, the INDU continues to show technical 
weakness relative to the majors.  

IBM is BIG Tech, and I do think Smith Barney's lowering of EPS 
estimates came in part after IT consultant Accenture (NYSE:ACN) 
$23.93 -9.96% reported Q4 (Aug) earnings of $0.30 per share, 
which was $0.02 better than consensus of $0.28 on revenues that 
rose 13.5% year-over-year to $3.42 billion, excluding 
reimbursements (consensus of $3.48 billion).  However, ACN issued 
guidance that was at the lower-end of ranges for Q1 (Dec), and 
sees GAAP EPS of $0.28-0.31 versus consensus of $0.28 on revenues 
of $3.5-3.7 billion, consensus $3.66 billion.  For 2005, ACN sees 
GAAP EPS of $1.34-1.39 versus the Reuters consensus of $1.39.

In essence, while ACN sees growth for its IT services/consulting 
business, it doesn't appear it is as "robust" as analysts had 
been thinking, and Smith Barney made some adjustments to its 
estimates for IBM.

Pivot Matrix -

 

Treasuries are starting to take on that "defensive" look as the 
10-year YIELD ($TNX.X) starts to gravitate back toward the 4.0% 
yield level.  I'm just noticing that the 10-year YIELD and SPX.X 
have NOT been able to trade their respective WEEKLY Pivots, as if 
cash that could be going toward equities is finding its way back 
into the Treasury market.

Jeff Bailey


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The Option Investor Newsletter                Wednesday 10-13-2004
Copyright 2004, All rights reserved.                        2 of 2
Redistribution in any form strictly prohibited.


In Section Two:

Watch List: Biotech to Homebuilders and more
Stop Loss Updates: PGR, SEPR
Dropped Calls: LMT
Dropped Puts: IVGN
New Calls: None
New Puts: HSIC

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

Biotech to Homebuilders and more

___________________________________________________________________

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.
___________________________________________________________________


Cephalon Inc - CEPH - close: 46.45 change: -0.73

WHAT TO WATCH: We strongly considered adding CEPH to the play 
list this evening as a put candidate.  The stock is still trading 
in its intermediate (5 1/2 month) downtrend of lower highs.  The 
MACD is slowing rolling over (already in a sell signal) and its 
bearish P&F chart points to a $41 target.  The recent failed 
rally under $50 and its simple 100-dma was the recent top and 
downward momentum could be ready to pick up steam, especially now 
with the BTK biotech index crashing through the 500 level and 
several moving averages.  Watch for a new relative low under $46 
or $45 depending on your aggressiveness. 

Chart=


---

Ryland Homes - RYL - close: 84.90 change: -2.23

WHAT TO WATCH: The decline in RYL looks pretty bearish these 
days.  The entire homebuilding sector took it on the chin when 
Pulte Homes (PHM) warned of issues in the Vegas area.  Now 
investors are taking profits and rotating out of the group.  The 
P&F chart for RYL looks pretty ominous with a new sell signal 
from overbought levels.  We would target a drop to $80.00 but the 
top of the gap near $84.00 and the bottom of the gap near $82.55 
offer two very clear levels of support (not to mention the simple 
200-dma).  Plus, RYL is due to report earnings on October 20th.  
We would watch RYL for a dip toward $80 and then evaluate any 
significant bounce.  On the other hand if RYL breaks down under 
$80 then bears can probably target the $72.50 region.

Chart=


---

Harman Intl Industries - HAR - close: 103.90 change: +0.40

WHAT TO WATCH: HAR topped out over $110 in early October and has 
steadily traded lower since.  Shares were extremely overbought so 
it's no surprise to see the profit taking now.  Although we are a 
little surprise that the selling isn't on heavier volume.  Maybe 
investors are waiting to hear HAR's next earnings report on 
October 20th (unconfirmed).  Aggressive traders could open 
bearish positions now or wait for a drop under the $100 mark, 
which is normally round-number, psychological support/resistance.  
A bounce from support near $90-92 might be a bullish entry point.

Chart=


---

United Technologies - UTX - close: 90.50 change: -1.82

WHAT TO WATCH: UTX was another Dow-component that was looking 
pretty weak today.  Shares dipped under the $90.00 mark and 
actually closed under its simple 200-dma despite the afternoon 
bounce from its lows.  Technical oscillators are mixed but its 
P&F chart just produced a new bearish sell signal with an $83 
target.  Unfortunately, we hesitate to play it because earnings 
are due out on October 20th.  More aggressive bears can watch for 
a drop under $89.00 and/or its exponential 200-dma as an entry 
point.

Chart=



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

POT $62.78 -3.26 - After eleven weeks of gains in a row shares of 
POT are finally seeing some profit taking.  Today's 4.9 percent 
drop was fueled by heavy volume as traders tried to lock in 
profits.  

MMM $77.98 -0.65 - This afternoon was looking pretty gloomy for 
Dow-component MMM.  The stock has broken down to a new relative 
low under the $77.50 mark and its rising trendline of support.  A 
drop under $77.00 would be a new triple-bottom breakdown sell 
signal on its P&F chart.

PHM $49.18 -1.15 - Homebuilder PHM is still sinking after its 
warning earlier this month.  The next stop could be support near 
$45.00.

CME $167.25 +2.10 - Not any weakness in CME but the stock remains 
very overbought.  Watch for a move over $170 or under $160.


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

PGR - call play -
Shares of insurance stock PGR rallied to $85.99 on Wednesday but 
quickly succumbed to the market's sell-off.  However, it was
enough to hit our TRIGGER to go long at $85.65.  

SEPR - put play -
SEPR fell more than 4.6 percent on Wednesday.  The stock is now
within striking distance of the simple 200-dma.  Be prepared to
exit.  Our target is $43.50.


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

Lockheed Martin - LMT - close: 54.66 change: -0.76 stop: 53.50

Warning! Warning!  LMT gapped higher at the open on Wednesday and 
quickly plummeted.  The breakdown under the $55.00 is bad but the 
bearish engulfing candlestick looks worse.  The MACD has produced 
a new sell signal.  We are not yet stopped out but we're going to 
cut our losses here and exit.  

Picked on October 01 at $56.01
Change since picked:    - 1.35
Earnings Date         07/27/04 (confirmed)
Average Daily Volume =     1.7 million 
Chart =



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

Invitrogen - IVGN - close: 55.00 chg: +1.46 stop: 56.25

We are going to err on the side of caution here.  IVGN gapped 
higher on Wednesday and added 2.7 percent with strong volume 
behind the move.  Yet shares have not broken its current three-
week trend of lower highs and lower lows nor have they challenged 
the $56 level.  Despite it all we're going to close the play now 
given its relative strength in the face of today's market 
weakness. 

Picked on October 07 at $53.83
Change since picked:    + 1.17
Earnings Date         10/28/04 (confirmed)
Average Daily Volume =     1.5 million 
Chart =


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*********
NEW CALLS
*********

None


********
NEW PUTS
********

Henry Schein - HSIC - close: 58.78 change: -0.90 stop: 62.01

Company Description:
The Company's four business groups--Dental, Medical, 
International and Technology--serve more than 450,000 customers 
worldwide, including dental practices and laboratories, physician 
practices and veterinary clinics, as well as government and other 
institutions. The Company's sales reached a record $3.4 billion 
in 2003. The Company operates through a centralized and automated 
distribution network, which provides customers in more than 125 
countries with a comprehensive selection of over 90,000 national 
and Henry Schein private-brand products.
(source: company press release)

Why We Like It:
HSIC is both technical bearish and suffering serious challenges 
in the real world.  We actually had HSIC on our watch list for a 
breakdown under support at $60.00 before the Chiron news came 
out.  If you haven't heard Chiron (CHIR) recently announced that 
it would NOT be sending some 50 million doses of the flu vaccine 
after British authorities shut down its manufacturing facility.  
The government revoked the company's license for three months 
while the work things out but CHIR said it would not be allowed 
to ship any of the expected doses to the U.S. this year.  This 
hit HSIC, who is a distributor for CHIR's fluvirin.  HSIC had to 
cut its earnings estimates for the third quarter to 69-71 cents 
and its fourth quarter estimates to 83-87 cents.  Analysts had 
been expecting $1.10 and $1.08, respectively.  

Bulls have put up a decent fight so far but the short-term trend 
of lower highs and its breakdown under $60.00 look like a good 
entry point to buy puts.  However, just to make this play more 
convincing we are going to use a TRIGGER under the recent support 
near $58.37.  Our ENTRY POINT will be $58.35.  More conservative 
traders may actually want to wait for HSIC to trade under $58.00 
before opening positions.  The P&F chart is bearish and points to 
a $54 target.  We suspect that HSIC can exceed that number but 
our exit range/profit target will be the $54-52 region.  

Suggested Options:
We are going to suggest the November puts even though we do not
plan to hold over the early November earnings report for HSIC.

BUY PUT NOV 65 HQE-WM OI=  0 current ask $6.80
BUY PUT NOV 60 HQE-WL OI=199 current ask $3.20
BUY PUT NOV 55 HQE-WK OI=307 current ask $1.15

Annotated Chart:

 

Picked on October xx at $xx.xx <-- see TRIGGER
Change since picked:    - 0.00
Earnings Date         11/02/04 (unconfirmed)
Average Daily Volume =     655 thousand
Chart =




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