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Daily Newsletter, Monday, 11/29/2004

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The Option Investor Newsletter                   Monday 11-29-2004
Copyright 2004, All rights reserved.                        1 of 2
Redistribution in any form strictly prohibited.


In Section One:

Wrap: Volume Returns  
Futures Wrap: See Note
Index Trader Wrap: Mixed platter of leftovers  


Posted online for subscribers at http://www.OptionInvestor.com
*******************************************************************
MARKET WRAP  (view in courier font for table alignment)
*******************************************************************
      11-29-2004           High     Low     Volume   Adv/Dcl
DJIA    10475.90 - 46.33 10557.41 10417.08 1.71 bln 1294/1539
NASDAQ   2106.87 +  4.90  2117.89  2090.35 1.83 bln 1749/1293
S&P 100   560.15 -  2.50   564.60   557.73   Totals 3043/2832
S&P 500  1178.57 -  4.08  1186.94  1172.37
SOX       429.89 -  1.09   438.28   428.16
RUS 2000  634.46 +  3.30   636.00   626.84
DJ TRANS 3650.13 +  2.14  3665.65  3620.94
VIX        13.30 +  0.51    13.69    12.93
VXO (VIX-O)13.46 -  0.09    14.03    13.34
VXN        18.83 +  0.89    19.18    18.02
Total Volume 3,544M
Total UpVol  1,829M
Total DnVol  1,631M
Total Adv  3043
Total Dcl  2832
52wk Highs  535 
52wk Lows    16
TRIN       1.02
PUT/CALL   0.74 
*******************************************************************

Volume Returns
Jonathan Levinson

Traders returned from the holiday with pockets full, gapping the 
indices higher at the open and driving the Nasdaq to a new rally 
high in the first 15 minutes of the session.  Those gains were 
reversed in a drop that ended just before noon, and a sharp 
bounce brought the indices back to lower highs.  

Volume was a healthy after the anticipated holiday doldrums, with 
the Nasdaq beating its average of 1.68B shares on 1.84B shares 
for the day, while the NYSE traded a more moderate 1.37B.   
Declining volume led advancing by a factor of 1.45 on the NYSE, 
while advancing shares led declining volume 1.58:1 on the Nasdaq.


Daily Dow Chart



Dow traders were treated to a wide range today of 140 points 
between 10417 and 10557, with the Dow settling lower by 46 points 
at 10476.  The move violated last week's high and low, finishing 
around midrange for an engulfing doji star.  10417 is fibonacci 
support at the failed bear flag from 3 weeks ago, and that 
confluence zone stretches to a low of 10360.  Below that support, 
it should be an easier run to the 10270 level.  The daily cycle 
downphase continues to suggest a bearish bias, but the potential 
for a bullish consolidation remains so long as price holds above 
10360.

Daily S&P 500 Chart


The SPX also finished a wild session slightly below its opening 
level, losing 4.08 to close at 1178.57.  As with the Dow, the day 
opened on a gap up, with the session highs printed within the 
first 15 minutes, followed by a clothesline drop to the lows and 
a slower rise to the midpoint for the day.  For the SPX, support 
came at a low of 10172, which is the top of confluence support to 
1168 as well as the upper rising channel support line.  Below 
1160, there's light support at 1160, followed by stronger support 
at 1143-44.


Daily Nasdaq Chart


The Nasdaq finished 4.9 points in the green at 2106.87, failing 
from a new rally high of 2117.78 and then bouncing from 2090.  
The closing print held at the top of last week's strong bounce, 
and the daily cycle downphase for the Nasdaq remains the least 
assertive of its peers.  The Nasdaq's daily cycle downphase looks 
clearly corrective to me, and Nasdaq bears have little to talk 
about until price gets below 2070 at minimum, with the more 
important test at 2045-50 support.


Weekly TNX Chart


Treasury bonds kicked off the week on a sour note, with ten year 
note yields (TNX) rocketing past previous resistance at 4.26% in 
a strong move that closed higher by 9 bps at 4.33%.  Today's gain 
represented a 2.12% rise for the TNX, and the first time the TNX 
has cleared the 22 and 50 week EMA's since the beginning of 
April.   The weekly cycle upphase suggests an imminent test of 
4.44%-4.45% below stronger resistance at the year high at 4.904%.  
4.14%-4.16% and 4.26% should now act as support for any retest. 

There was a surprising lack of discussion about fundamental 
factors or events to explain the sudden and strong drop in 
bonds/rise in yields this morning.  Reuters attributed the 
selling in bonds to "speculative traders" but mercifully dropped 
that one early in the day.  It was later reported in an unrelated 
AP story that China has today signed a free trade accord with a 
number of Southeast Asian nations to create the world's largest 
free trade area by 2010.  The announcement emanated from the 10 
nation Association of Southeast Asian Nations at the group's 
annual summit in Laos, and will include Brunei, Cambodia, 
Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, 
Thailand and Vietnam.  The agreements seeks to end all tariffs by 
2010, which would pull the economies of these 10 countries, cited 
by Associated Press as being worth $1 trillion, closer to China's 
$1.4T economy.

If the Chinese currency peg to the US dollar and the consequent 
massive buying in US treasuries with the proceeds of China's 
dollar purchases have been behind the notable resilience in the 
US treasury market in the past few yearrs, then any indication 
that China might no longer need a strong US dollar could spell 
severe dislocation for the USD and treasury markets.  The idea is 
that Chinese suppliers to the US have been benefiting from 
China's peg to the USD, which keeps the price of Chinese goods to 
America stable despite the sinking US dollar.  US businesses and 
consumers have also been benefiting, at least insofar as 
persistent low interest rates and easy borrowing are concerned.  
However, if China no longer needs to sell as much to the US, such 
as might occur under an Asian free-trade scenario, the currency 
peg and support of the treasury market would become less 
important.  Today saw WMT decline as well, though the media 
attributed this to its soft Thanksgiving same-store sales 
(discussed below).  However, I find the Asian free trade story, 
which explains today's weakness in the dollar, treasury bonds and 
WMT, to be more persuasive. 


Weekly chart of Crude oil


Crude oil was firm again today, this time on news of that a gas 
leak requiring the evacuation of 180 workers from a North Sea 
platform halted production of approximately 130,000 bpd by 
Norway's Statoil ASA.  The leak puts an additional 75,000 bpd 
potentially in peril as well.  Norway's oil ministry said that it 
did not think that any oil had leaked into the water as a result 
of the accident.  News stories also cited uncertainty ahead of 
the December 10 meeting of OPEC ministers in Cairo as 
contributing to the morning's strength in oil, which reached a 
high of 49.95 on the Nymex.  For the day, January crude oil 
closed +.30 at 49.75, just off a 4-week high.

Nymex crude continues its ongoing bounce off the sub-46 low 
earlier this month.  The shape of the weekly cycle oscillators 
suggests that the bounce will be corrective and fail at a lower 
high.  If such occurs, the 44-45 level will very likely be 
retested on the way to a test of stronger support in the 40-42 
area.

It was a quiet day for market news, with no major economic 
reports released.  The Washington Post reported that treasury 
Secretary John Snow's tenure may be growing short, and that he 
might remain in the Cabinet for only a short time into the 
administration's second term.  White House spokesman Scott 
McClellan said that the President "appreciates the job Secretary 
Snow is doing" to implement the President's economic agenda, but 
commented no further on the Washington Post's assertions.

Later this morning, it was announced that the President has 
nominated former CEO of Kellogg (K) Carlos Gutierrez to replace 
outgoing Commerce secretary Don Evans. Gutierrez' nomination 
awaits confirmation by the Senate.

Over the weekend, WMT announced that this year's Thanksgiving 
week fell short of expectations, causing it to lower its November 
sales forecast to a 0.7 year-on-year rise.  The previous forecast 
had been for a 2%-4% rise.  Walmart dropped over 2.5% in 
premarket trading on the news, with analysts saying that WMT's 
news suggests that the ongoing oil rally, poor job and wage 
growth would hurt holiday spending, especially among lower income 
consumers.  

The WMT slam saw WMT lose 3.94% to close the day at 53.14.  The 
S&P Retail Index (RLX) finished lower by .95% at 457.06, not 
helped by KRMT which lost 5.01% to finish at 102.01.

This morning also brought a dire warning from outgoing Ukrainian 
president Leonid Kuchma to the effect that Ukraine's financial 
system could collapse shortly "like a house of cards" due to the 
chaos that has been growing in the wake of the contested 
presidential election.  Kuchma stated that he and his government 
cannot be held responsible, as the situation is beyond their 
ability to control.  Later in the day, it was reported that 
Kuchma agreed to a new presidential election, yielding to 
pressure from domestic protesters and the international 
community.

A brighter point on the consumer front was a report from 
MasterCard of a 9.3% year-over-year increase in overall 
transactions, while Visa USA reported a 14.3% increase for the 
week.

Outback Steakhouse (OSI) reported a rise in its November same-
store sales of .8% y-o-y.  Sales at its Carrabba's Italian Grills 
rose 4%, Roys rose 7.7%, Bonefish Grills rose 1.5%, and Fleming's 
Prime Steakhouses saw a 15% y-o-y increase.  OSI finished higher 
by 1.2% at 43.76, just off its high for the day at 43.86.

Homebuilding material supplier RYG announced that its special 
committee of independent directors, which oversees all matters 
arising from the ongoing investigations into the executives' 
roles in some of the company's 1998 land transactions, terminated 
the company's CEO and Senior V.P./CFO "for cause."  The committee 
also terminated chairman Vic de Zen and requested that the three 
directors resign from the board.  The committee alleged that the 
roles played by these three directors demonstrated "a breach of 
their responsibilities to the company..."  V. James Sardo was 
named as the company's interim president and CEO.  RYG closed 
higher by 4% at 8.84.

Biotech firm DNA got a lift from its joint announcement with  
Roche Group that the Phase III trial of its Avastin and Folfox4 
chemotherapy treatment increased the survival rate for colorectal 
cancer patients, reducing their risk of death by 26%.  The stock 
was halted ahead of the news and rose sharply after being 
released for trading, finishing the day higher by .99% at 49.20.

AAPL had a good day as well, managing a 6.03% rise on an upgrade 
from Merrill Lynch citing strong anticipated holiday sales of its 
popular iPod product.  AAPL closed higher by 3.89 at 68.44.

After the bell, retailer HOTT lowered its Q4 target from the 49-
52 cent EPS range to 37-43 cents.  The company attributed the 
adjustment to weak November same-store sales, down 8% from 
November 2003.

Also after the bell was a statement from Treasury Department 
spokesman Tony Fratto to the effect that the administration still 
supports the "strong" dollar, but that the price of this strong 
dollar should be set in "open, competitive markets."

Tomorrow kicks off what is a full slate of economic data for the 
week, with the preliminary Q3 GDP and Chain deflator at 8:30, 
followed by consumer confidence and the Chicago PMI at 10AM.  The 
dollar and treasury story delivered a large, uncertain range 
today, and I see no reason for that to change until the forex 
markets stabilize.  The Nasdaq continues to trade bullishly 
compared with its peers but for all 3 indices, all but the most 
aggressive bears should be waiting for the market to show them 
some convincing weakness, at least on a break of the support 
levels discussed above. 


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

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


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

Mixed platter of leftovers

It was an up, then down, then up and back down again type of 
session as traders returned from an extended Thanksgiving holiday 
to find an equity market mixed with mostly fractional gains and 
losses.

Energy commodities also finished mixed after Wednesday's holiday 
closure.  The sharp rise in natural gas prices on Wednesday, 
which traders attributed to December expiration, saw quick 
retreat on Monday.  January Natural Gas futures (ng05f) fell 80 
cent, or 9.2%, to $7.837 after surging more than 17% on 
Wednesday.

January Crude Oil futures (cl05f) rose 32 cents, or 0.65% to 
$49.76, where a choppy $1.10 range kept traders on their toes.

U.S. Market Watch - 11/29/04 Close

 

While Friday's session was just a 1/2-day of trade, we've now 
completed 19.5, say 20-sessions of trade for the month of 
November.  The small caps of the Russell 2000 Index (RUT.X) 
634.46 +0.52% have been outperforming the major indices, while 
the drug and biotech sectors have been lagging broader gains for 
the sectors as the month of November draws to a close.

Early tallies from Black Friday retail sales were atop today's 
list of most heavily analyzed. 

Discount retailing giant Wal-Mart (NYSE:WMT) $53.15 -3.92% was a 
drag on the Dow Industrials (INDU) 10,475.90 -0.44% from the 
opening bell, as well as the S&P Retail Index (RLX.X) 457.06 and 
Retail HOLDRs (AMEX:RTH) $98.15 -1.97%.  The company's strategy 
to cut back on pre-Thanksgiving holiday ads, and offer fewer 
sales on items didn't pan out the way the company had expected.  

Many retailers reported strong post-Thanksgiving sales trends and 
after a +7% gain added to August-September rebound, traders 
attributed today's selling to profit taking in the sector.

The nations leading automotive aftermarket parts and service 
chain, Pep Boys (NYSE:PBY) $16.12 +8.55% jumped higher after the 
company announced it had commenced a cash tender offer for any 
and all of its $100 million aggregate principal amount 7% Notes 
due in 2005.

In Monday's extended session, shares of Hot Topic (NASDAQ:HOTT) 
$18.84 -5.35%, which fell $1.07 during the regular session, fell 
to $17.23, a shellacking not unlike that of a pair of black PVC 
pants, after the teen-wear retailer said same-store sales dropped 
8% in November.

Weakness in the dollar spawned fears that foreign central banks 
will reduce purchases of, or even turn to selling U.S. debt.  
Pimco's Bill Gross, one of the Street's most respected bond 
analysts, reiterated his belief that continued weakness in the 
dollar would have foreign investors shunning Treasuries.

The rise in both the 10-year yield ($TNX.X) and 30-year yield 
($TYX.X) weighed on the mortgage-rate sensitive homebuilders, 
with the Dow Jones Home Construction Index (DJUSHB) 686.65 -3.10% 
leading today's list of sector losers.

Market Snapshot / Internals - 11/29/04 Close

 

By 11:00, volumes at both the NYSE and NASDAQ had easily exceeded 
Friday's trade-shortened session, where sellers seemed rather 
eager to harvest early gains.  On Wednesday, the NYSE 5-day NH/NL 
ratio moved back above its more intermediate-term 10-day NH/NL 
ratio, and the NASDAQ's 5-day NH/NL ratio followed on Thursday.  

A buy program premium at 02:25 PM EST had the major indices 
lifting back near their morning highs where a notable increase in 
new highs unfolded, but two sell program premiums at 03:20 PM EST 
and 03:45 PM EST kept the major indices relatively unchanged by 
the close.

While the U.S. Dollar Index (dx00y) 81.96 +0.22% shows a gain in 
Monday's trade, that comes after a new multi-year low in Sunday's 
session.  Gold futures closed above $453 an ounce for the first 
time since July 1988.  

Meanwhile the AMEX Gold Bugs Index ($HUI.X) 242.93 -0.18% 
finished relatively unchanged, but well off its December 2003 
high of 258.60.

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

 

Today's lows found buyers firm at the WEEKLY S1 and correlative 
MONTHLY R2.  After tomorrow's trade, we'll get new MONTHLY Pivot 
level correlations, but the WEEKLY S1 and MONTLY R2 would be the 
most-likely level of institutional support.  The upper-end of 
this week's range most likely be marked by the overlapping WEEKLY 
R1 and 1,190.62 WEEKLY retracement level.

Based on today's closing value for the SPX, and monthly high of 
1,188.46 and low of 1,127.53, December MONTHLY Pivot levels would 
be 1,103.92, 1,141.25, Piv= 1,165.85, 1,202.18 and 1,225.78.

Before tomorrow's opening bell, preliminary third-quarter GDP 
figures will be released and economists expect little revision to 
the advanced 3.7% estimate given on October 29, when the SPX 
closed at 1,130.20.

NASDAQ-100 Tracker (QQQ) Chart - Daily Intervals

 

The NASDAQ-100 Tracker (AMEX:QQQ) $39.20 -0.01% lurched to a new 
multi-year high earlier this morning, but buyers seemed hesitant 
to overindulge in a Thanksgiving second-helping at WEEKLY R1, but 
instead tightened their profit taking belts just after the open.  

Tomorrow is the last day the NASDQ-100 Tracker will trade 
primarily at the AMEX, as on December 1, the Qs move over to the 
NASDAQ with they symbol QQQQ.

Apple Computer (NASDAQ:AAPL) $68.44 +6.02% has been a key driver 
for the Qs as has Microsoft (NASDAQ:MSFT) $26.77 +0.63%, which 
recently distributed a heft $3.00 per share dividend to 
shareholders.  

Pivot Matrix -

 

Bonds and banks will be an item of focus for me this week.  I 
(Jeff Bailey) am not overly concerned about dollar weakness by 
itself, but the impact that dollar weakness has on the Treasury 
market, specifically bond trader's mentality.

On November 17, in our 03:15 PM EST update, I noted some bond 
trader talk that a large EuroZone hedge fund was said to be 
covering an extreme position in the bund/10-year spread, whereby 
that hedge fund was reportedly calling it quits and aggressively 
buying Treasuries (thus a lower yield that day) and other traders 
jumped onto that short-term momentum.  Here we are, just less 
than two-week later and that short in the 10-year would begin 
providing some reward for that hedge fund.  

I think equity bulls WANTED to see a higher yield in Treasuries, 
which in my opinion reflects an EXPANDING economy.  However, as 
I've noted time and again, it is the RATE OF CHANGE that can 
"shock" equity traders and turn them into sellers if a RATE of 
CHANGE is too fast!  

For further broader market equity bullishness, keep an eye on the 
BIX.X.  Banks were squawking that the recent decline in 10-year 
yield was starting to pressure loan spread margins.  Now we're 
getting some higher yield, which should help widen the spread and 
benefit the banks.  The BIX.X hasn't been "leading in the pivot 
matrix" for a couple of weeks now, the SPX and OEX have been 
somewhat sideways the past two weeks.  

Jeff Bailey

 
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The Option Investor Newsletter                   Monday 11-29-2004
Copyright 2004, All rights reserved.                        2 of 2
Redistribution in any form strictly prohibited.


In Section Two:

Stop Loss Updates: DHR, SLB  	
New Calls: ABK, ITT
Dropped Calls: None
Dropped Puts:  None
Watch List: Bearish and Bullish Candidates! 


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

DHR - call play -
  The momentum in DHR's rally is fading.  Short-term traders
  who haven't done any profit taking yet may want to reconsider.
  Technicals are already in a sell signal.  We're watching for a 
  dip to support near $56.00.
 
 
 
SLB - call play -
  SLB has dipped as we expected.  The stock did manage a bounce
  off its simple 50-dma but we'd still watch for a consolidation 
toward
  the $65 level.


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

Ambac Fincl Group - ABK - close: 81.71 chg: +0.66 stop: 77.99

Company Description:
Ambac Financial Group, Inc., headquartered in New York City, is a 
holding company whose affiliates provide financial guarantees and 
financial services to clients in both the public and private 
sectors around the world. Ambac's principal operating subsidiary, 
Ambac Assurance Corporation, a leading guarantor of public 
finance and structured finance obligations, has earned triple-A 
ratings, the highest ratings available from Moody's Investors 
Service, Inc., Standard & Poor's Ratings Services, Fitch, Inc. 
and Rating and Investment Information, Inc.
 (source: company press release)

Why We Like It:
This is essentially a momentum play.  The IUX insurance index is 
still in rebound mode from its disastrous October decline.  
Fortunately for ABK the October pull back bounced from its 200-
dma and shares are now breaking out to new all-time highs.  
Technicals are bullish.  The P&F chart shows an ascending triple-
top breakout buy pattern with a $101.00 target.  Plus, ABK is in 
stock split territory.  The company last split its stock 3-for-2 
in December of 2000 at the $81 level.  We believe that ABK can 
keep the momentum going, especially after three weeks of sideways 
consolidation between $78 and $82.  However, we will use a 
TRIGGER to open the play.  Our entry point will be $82.26.  Until 
ABK trades at or above our trigger we'll sit and wait.  More 
aggressive traders can buy a dip back toward $80.00.  Our mid-
January target is the $90.00 range.  Conservative traders may 
want to keep an eye on the IUX insurance index for a breakout 
over the 310 level. 

Suggested Options:
We are going to suggest the January 2005 calls. Our favorites
would be the $80s or $85s.

BUY CALL JAN 75 ABK-AO OI=  19 current ask $7.80
BUY CALL JAN 80 ABK-AP OI= 310 current ask $3.70
BUY CALL JAN 85 ABK-AQ OI= 136 current ask $1.20
BUY CALL JAN 90 ABK-AR OI=1315 current ask $0.40


Annotated chart

 

Picked on November xx at $xx.xx <-- see TRIGGER
Change since picked:     + 0.00
Earnings Date          10/20/04 (confirmed)
Average Daily Volume =      490 thousand
Chart =



---

ITT Industries - ITT - close: 86.40 change: +0.60 stop: 83.70

Company Description:
ITT Industries, Inc. (www.itt.com) supplies advanced technology 
products and services in key markets including: fluid and water 
management, including water treatment; defense communication, 
opto-electronics, information technology and services; electronic 
interconnects and switches; and other specialty products. 
Headquartered in White Plains, N.Y., the company generated $5.63 
billion in 2003 sales.  (source: company press release)

Why We Like It:
Play it again Sam!  ITT is no stranger to OI readers.  It's only 
been a few days since we listed it on our watch list.  Plus, it's 
only been a few weeks since we played the rally from $80 to $86. 
Now after three weeks of consolidating it looks like ITT is ready 
to begin a new leg higher.  Today's gap higher and intraday 
rebound is both a new all-time high and an example of traders' 
willingness to buy the dips.  Volume was well above average as 
well.  Technicals are bullish again and its P&F chart shows a 
triple-top breakout buy signal with a $92 target.  We suspect 
that ITT can surpass the $92 level but we'll list it as our 
initial profit target.  We're willing to go long at current 
levels but some traders may want to look for a possible dip 
towards $85.  The $84 level should be support since that has been 
the bottom of its three-week trading range. 

Suggested Options:
We are going to suggest the January 2005 calls.  Our favorites
are the 80s, 85s, 90s.

BUY CALL JAN 80 ITT-AP OI=2114 current ask $7.30
BUY CALL JAN 85 ITT-AQ OI=2278 current ask $3.20
BUY CALL JAN 90 ITT-AR OI= 514 current ask $0.95

Annotated chart

 


Picked on November 29 at $86.40 
Change since picked:     + 0.00
Earnings Date          10/21/04 (confirmed)
Average Daily Volume =      502 thousand 
Chart =



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

None


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

None


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

OSI Pharmaceuticals - OSIP - close: 47.96 change: -2.53

WHAT TO WATCH: Here's another chance for the bears.  OSIP broke 
down through major support last Wednesday but managed a meager 
bounce during Friday's shortened session.  This morning the 
company reported a significant earnings loss for the quarter but 
the loss was less than expected.  Still investors sold the news 
and shares are back under the pivotal $50.00 mark.  There aren't 
many bearish candidates out there and while it looks like OSIP is 
already oversold and extended this technical breakdown looks very 
bad. We would target a drop toward the $42 region.  The P&F chart 
points to a $28 target.

Chart=


---

Commerce Bancorp - CBH - close: 61.35 change: +0.54

WHAT TO WATCH: CBH has been on the watch list before as we waited 
for a breakout over resistance near $61.00. Now CBH has done just 
that with today's 0.88 percent gain pushing the stock through 
two-month old resistance at $61.  This looks like a bullish entry 
point for a run toward $65.00.  The P&F chart has reversed into a 
new buy signal with a $72 target.

Chart=


---

Best Buy Co - BBY - close: 57.78 change: -1.14

WHAT TO WATCH: BBY has broken its rising trend and its technicals 
look very bearish.  After two weeks of trying to breakout over 
the $62 level shares are now in retreat.  The P&F chart has 
rolled over into a new sell signal with a $53 target.  This would 
almost coincide with a drop towards its 200-dma.  Given today's 
failed rally at $60.00 this looks like a bearish entry point for 
a short-term trade lower.  Watch for possible support near $55.

Chart=


---

Eagle Materials - EXP - close: 77.00 change: +1.67

WHAT TO WATCH: Could it be rising commodity prices lifting shares 
of this construction supplies distributor?  EXP is breaking out 
over resistance at $76 to hit new all-time highs.  Momentum 
traders may want to give this one another look.  The P&F chart 
shows a bullish triangle breakout with an $89 target.

Chart=



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

OSTK $69.04 +3.44 - Whoa!  Overstock.com is soaring now up five 
days in a row to new all-time highs. 

INFY $70.30 +4.60 - INFY is breaking out on big volume as its 
technicals turn bullish.

SIE $54.43 +1.23 - Watch SIE for a breakout over $55.00.


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