PremierInvestor.net Newsletter Monday 09-16-2002 section 1 of 2 Copyright ) 2002, All rights reserved. Redistribution in any form is strictly prohibited. The entire newsletter is best viewed in COURIER 10 for alignment ================================================================= To view this email newsletter in HTML format with imbedded charts and graphs, click here: http://www.PremierInvestor.net/htmlemail/i16b_2.asp ================================================================= In section one: Market Wrap: What Didn't Happen Watch List: BRCM, CVC, HON, ITW, PENN, REY, TXN, and more... Play of the Day: Breakdown in Progress ****************************************************************** MARKET WRAP (view in courier font for table alignment) ****************************************************************** 09-16-2002 High Low Volume Advance/Decl DJIA 8380.18 + 67.49 8389.26 8257.69 1183 mln 493/683 NASDAQ 1275.88 - 15.35 1292.73 1267.69 1089 mln 175/905 S&P 100 446.65 + 2.41 447.09 439.75 totals 668/1588 S&P 500 891.10 + 1.29 891.84 878.91 RUS 2000 386.13 - 3.86 389.99 385.91 DJ TRANS 2231.96 - 14.91 2246.58 2216.47 VIX 40.54 + 1.23 43.08 39.59 VIXN 57.73 + 1.88 59.60 56.59 Put/Call Ratio 1.09 ****************************************************************** =========== Market Wrap =========== What Didn't Happen A holiday session with low volume generally provides few clues as to where the market is headed. However, we had a couple of significant moves, or in some cases, non-moves. The day started out with a mixed bag of news. On the positive side, Business Inventories and sales for July were both up. Inventories rose 0.4 percent at merchant wholesalers, 0.9 percent at retailers and were down 0.1 percent at factories. The inventory to sales ratio, however, dropped to 1.35 from 1.43 a year ago. This is bullish, as a lower number indicates that businesses are able to move the inventory they have accumulated. With higher inventories and a lower ratio, business appears to be better than last year, when we were in a recession. Sales were up 2.2 percent, while inventories were down 3.7 percent from a year ago. On the negative side, we saw a host of lowered expectations for the semiconductor stocks. Bank of America cut its 2002 and 2003 estimates for Taiwan Semiconductor (TSM) and United Microelectronics (UMC), citing weakness in the consumer segment. Prudential lowered earnings estimates for the fourth quarter and 2003 for the following semiconductor stocks: Anadigics (ANAD) Broadcom (BRCM) Emcore (EMKR) LSI Logic (LSI) Microchip Technology (MCHP) Pericom Semiconductor (PSEM) STMicroelectronics (STM) Microtune (TUNE) Texas Instruments (TXN) Atmel (ATML) Exar (EXAR) Nvidia (NVDA) PMC-Sierra (PMCS) Vitesse (VTSS) This development is very bearish for the sector, as the Semiconductor Index has now reached a new 52-week low for the 3rd time in six weeks. The support level of 275, from the September 6 low, appeared as though it would hold for a while, as the index ventured back over 300 as recently as last Wednesday. Today's downgrades, however, showed renewed weakness and could lead to a new wave of selling. After the bell, however, Microchip Technology (MCHP), one of this morning's downgrades, announced that higher gross margins would help the company beat second quarter earnings targets. This may give the sector a lift tomorrow, however there has been damage done which news from a single company will be hard pressed to reverse. As the tech sector has been leading the market for several years, the breakdown in the SOX could be the first domino toward re-testing July's lows. I realize this may seem like a leap of faith, but the scenario is developing in the following manner. The Dow, S&P 500, NDX and Nasdaq Composite have all formed a classic head and shoulders reversal pattern beginning with the rally from July 24 to August 22. Since then, the Dow and S&P 500 collapsed, but found support at the 50% retracement of that rally. The Nasdaq Composite and NDX gave back a larger percentage of the gains during the rally from July 24 to August 22, but both found support above the July lows. This recent support is the basis for the right shoulder of the formation in all three indices. The charts of the Dow and Nasdaq Composite are below, and look very similar to their counterparts. Chart of the Dow Chart of the Nasdaq Composite (COMPX) The last time the markets crossed significant resistance to the upside on the same day, was August 19, when all of the broad market indices crossed over their 50-dmas for the first time since spring. The Semiconductor Index (SOX.X) failed at its 50- dma, however. This signaled a drop in the semis, which led the Nasdaq lower. It can be argued that the Nasdaq, heavily weighted with technology stocks, led the Dow lower as well, as technology has done throughout the late 1990s and early 2000s. With the Semiconductor Index (SOX.X) now breaking support once again, the whole scenario may be re-starting. If we experience another sell-off in the techs, led by the SOX, it will most certainly lead the Nasdaq through its neckline. A neckline break will be a very bearish sign, and the weight of the techs falling would most likely drag the Dow down, as well. Chart of the Semiconductor Index (SOX.X) So where's the good news? Well, both the Dow and Nasdaq Composite have both managed to avoid a neckline break. Both averages have diverged in their direction for the last two days. The Nasdaq rallied, while the Dow fell on Friday. Today was the opposite. However, both appear to be consolidating just above their respective necklines and finished the day right around where they finished on Thursday. The Dow finished the day on Thursday at 8379.41 and closed today within a point at 8380.18. The Nasdaq finished Thursday at 1279.68 and closed today within four points at 1275.88. The Nasdaq closed slightly further away to the downside, but has just a pinch more breathing room before a breakdown than the Dow does. Chart of the Dow and Nasdaq H&S Patterns On a day when the both the NYSE and Nasdaq traded just barely over a billion shares, there was hardly enough trading to push these averages through significant levels. However, there was enough trading to take out the previous lows in the SOX, so the technical developments, or in the case of the Dow and Nasdaq, non-developments, can still be viewed with significance. These holds above the neckline are bullish signs, and although they are not so bullish as to attract my dollars to the upside, I have put the hammer back in the toolbox for the time being. One of the reasons cited for the economy not slipping into a double-dip recession is the strength of the housing market. Last week we received data showing that foreclosure rates have reached record highs. This level of 1.23% pales when compared to this morning's numbers released by the Federal Housing Administration. The FHA said that 4.7% of FHA borrowers are at least 90 days late on their loan payments. This is almost twice the rate of 1995. It appears that low mortgage rates have resulted in a housing boom that may be sitting on a time bomb. While the FHA takes on borrowers that may have more risk, a trend is still a trend. With lay-offs increasing, consumer debt growing, and foreclosures at an all-time high, this delinquency rate looks like another foot on the wrong side of the seesaw. A look at the Dow Jones U.S. Home Construction Index (DJUSHB) shows that after reaching all time highs earlier this year, the homebuilders experienced a sell-off and are once again experiencing resistance to the upside as the try to recover. With numbers like foreclosures and delinquent mortgages increasing, the group has a lot to overcome. What had acted as support as the index rallied to all time highs earlier this year, is now acting as resistance. Traders may want to keep an eye on increases in the above rates as indicators of short opportunities in the sector. Chart of the Dow Jones U.S. Home Construction Index (DJUSHB) After Iraq today said they would allow the unconditional return of weapons inspectors, Thursday's OPEC meeting will take on added significance. With the price of oil already high, and the October Crude Oil Futures trading over $29 a barrel, the decision on whether to raise production quotas could have a pronounced effect on the stock market. If we do go to war with Iraq, oil prices are likely to skyrocket. This is a sure way to raise costs for many industries. If OPEC shows that they are willing to help out by increasing production to keep prices in check, this will help alleviate some of the anxiety over the likely increase. Even if OPEC does increase production, a war in the Middle East can interrupt shipment out of the region. While the largest oil producer, Saudi Arabia, has said it supports increased production, other members, such as Venezuela, Iran and Kuwait have come out against the measure. The OPEC members actually exceeded their current quotas by 1.7 million barrels per day in the month of August, according to the International Energy Agency. Therefore, any increase would have to exceed this extra output before lowering costs. Iraq produces about 2.7 million barrels per day, however it could affect prices by an even greater amount if it acted against neighboring Arab countries as a war escalated in the region. With the return of inspectors, OPEC may not feel as compelled to increase quotas, as the threat of war may be lower. While crude oil may drop slightly in the short-term, the specter of war still hangs over the region. There is no guarantee the U.S. will accept the return of inspectors as a solution to the problem and if President Bush does back off from threats of military action for the time being, we do not know what these inspectors will find, although it is likely that Iraq will clean up any evidence of a nuclear threat. Dow Jones and Company warned that third quarter earnings would come in below forecasts, due to a drop-off in advertising sales during the month of September at the Wall Street Journal. In an interesting development that turned into good news for Boeing, the machinists union was unable to muster enough votes for a strike in response to the airline's final contract offer. Although 62% of the 25,000 union workers voted against the contract, they fell just shy of the 2/3 needed for a strike. According to the union's bylaws, they are required to adopt the contract if the strike vote fails. Therefore, they will now spend the next three years working under a contract that was rejected by a significant majority of its members. Both parties are still waiting for an arbitrator's ruling on whether Boeing subcontracting of work to outside companies, at the same time it issued layoffs, was a violation of the union's 1999 contract. Next up for Being is the contract of its second largest union, the Society of Professional Engineering Employees in Aerospace, representing technical workers and engineers, which expires in December. Northrop Grumman (NOC) and General Dynamics (GD) each enjoyed banner days after the Pentagon announced late Friday that it had awarded the companies a $5 billion contract to build 10 Aegis destroyers. NOC finished up $2.00 to $129.39 and GD tacked on $3.58 to close at $87.32. The markets will likely react positively tomorrow to the news of Iraq's cooperation, although the President may say something between the time of publication and tomorrow morning that interferes with this theory. I would expect a rally on the news, however in order to prevent a long term breakdown of the crucial levels described above, we will need to see a return of business spending to the tech sector. MCHP's comments will help, but the news from one company in the face of the additional downgrade of thirteen companies in the sector is only a drop in the bucket. Look for a gap up in the morning and then a pause for Oracle's earning's after the bell. Oracle is expected to meet expectations, but that is not always a catalyst to upward movement, as accompanying comments can send an industry reeling. Apparently, someone is expecting a fallout, as the Put/Call ratio has reached 1.09, reflecting the trading of more puts than calls. This reflects today's trading, however, which closed before the Iraq news broke. Tomorrow should see some incredible volatility with the Iraqi news and Oracle announcement, so watch your stops and hang onto a few extra puts on a big rally, in case of negative statements after the bell. Steve Price ================================================================== WATCH LIST ================================================================== The PremierInvestor.net watch list is not designed to be read as full fledged stock picks. Rather we would prefer to offer it as an extra tool in today's investor toolbox. Think of it as a radar screen with your own radar operator pointing out interesting developments, technical patterns or potential plays that you may or may not have seen on your own. Due to time constraints we do glance at the news but rarely do we have time to fully read pertinent news stories, due background research and other necessary screens that investors should do before making a decision. A common exercise is to read the entry, glance at the sector and other stocks in that industry and then compare what's happening in the stock to what's happening in the broader market indices. We hope you enjoy the Watch List and that it proves to be a useful tool for your own trading success. STOCKS WORTH WATCHING --------------------------------- Broadcom Corp - BRCM - close: 14.40 change: -0.85 WHAT TO WATCH: The semiconductor index hit new multi-year lows today amid bearish sector news and negative brokerage comments. How low can the SOX.X go? A glance at the weekly chart shows that the index is in the process of retracing its explosive rally from late-1998. A complete retracement would put it near the all-time lows near 200...That's a 25% drop from current levels! Although we wouldn't expect this to happen in the near future, the immediate future looks pretty bleak for the bulls. The index's weekly and daily stochastics are both pointing lower, and the p-n-f chart is showing a fresh double-bottom sell signal. Insofar as specific stocks to short within the group, it's getting hard to find one that isn't already oversold. BRCM, however, has just suffered a breakdown and looks like it has ample downside remaining. Shares fell to a multi-year low on Monday after abandoning support at $15.00. Given the sector negativity and triple-bottom p-n-f sell signal, a short-term decline to the next level of historical support near $12.00 is not out of the question. Bearish positions can be evaluated on a move below today's low of $14.35 or a failed rally to $15.00. --- Coca-cola Enterprises - CCE - close: 21.78 change: +0.68 WHAT TO WATCH: It's not the fastest mover, but shares of CCE (the bottling division of Coca-cola) might soon be offering a bullish entry point. Friday's upgrade from Goldman Sachs had the stock breaking above short-term resistance at $21.00. CCE continued to move higher today, solidly outperforming the Dow Jones en route to a 3.2% gain. This was sufficient to take the stock above the August highs near $21.60. With the MACD curling higher and no resistance levels directly overhead, a retest of the 52-week highs at the $24.00 level seems likely. Traders could think about going long on a move above today's high ($21.84), but the most prudent strategy would be wait for shares to clear whole-number resistance at $22.00. --- Cablevision Systems - CVC - close: 11.70 change: +0.72 WHAT TO WATCH: CVC traded higher today on speculation that the company may put its cable division up for sale. This follows a two-week uptrend that has seen shares bounce off the 50-dma ($8.47) and break above psychological resistance at $10.00. Although the daily stochastics suggest CVC is already overbought, the double-top p-n-f breakout and rising MACD are indications that the stock may continue its recent ascent. Additional restructuring/buyout rumors could help the bulls. With this in mind, aggressive traders can evaluate long entries on a move above today's high ($11.89). Short-term traders could target a move to the $14.00 region. --- Danaher Corp - DHR - close: 55.60 change: -0.80 WHAT TO WATCH: Shares of this technical instruments company have suffered heavy selling pressure over the past four sessions. The stock displayed relative weakness versus the Dow Jones on Monday and fell below the August low of $55.59. With the oscillators pointing lower and the p-n-f chart on a double-bottom sell signal, it would not be surprising to see the multi-month low near $54.00 give way within the next few sessions. Should this occur, DHR could quickly retrace its steep ascent from October of last year. Longer-term bears can be encouraged by the downtrending weekly stochastics and recent violation of the 200- week moving average. --- Honeywell Intl - HON - close: 24.65 change: +1.09 WHAT TO WATCH: Honeywell announced last Thursday night that it had lowered earnings estimates for both the third quarter and full-year 2002. The company cited continued economic weakness as the primary reason for the lowered guidance, particularly in the aviation sector. This news had HON gapping sharply lower the following morning. Shares bounced back on Monday but couldn't quite begin filling in the gap. If/when this does occur, speculative traders could think about taking long positions. Specifically, a break above $24.80 could clear the way for a move back to the $28.00 level. We saw a similar rebound with fellow Dow Component JNJ in July when the stock gapped lower on accounting concerns and then quickly recovered its losses over the following week. --- Illinois Tool Works - ITW - close: 61.05 change: -2.25 WHAT TO WATCH: Illinois Tool announced this morning that it expects Q3 earnings in the $0.75-$0.80 range, which is less than the consensus estimates of $0.82. Shares tumbled 3.5% on this news, on the strongest volume in nearly one year. Technically, the chart for ITW is looking awfully bearish. Shares have fallen below the 50-dma and the oscillators are downtrending. The point-and-figure chart is also looking ugly, with ITW freshly breaking below bullish support and producing a double-bottom breakdown. Although the stock bottomed out at $59.77 today, this may have only offered a temporary reprieve for the bulls. A move under today's low would provide bearish traders with a possible action point. The July low of $56.01 provides a clearly defined profit-target for short-term traders. --- Penn National Gaming - PENN - close: 20.14 change: +0.02 WHAT TO WATCH: PENN came within a mere four cents of setting an all-time high on Monday. The stock has nearly doubled from its July lows and the recent gains have come on increasing volume. A breakout into uncharted territory could trigger another round of short-covering that takes PENN to the next level of psychological resistance at $25.00. Long entries can be targeted on a move above $21.00. This would create a double-top buy signal on the point-and-figure chart. Casino bulls may also want to check out BYD, which is likewise within range of 52-week highs. --- Reynolds & Reynolds - REY - close: 26.05 change: -0.20 WHAT TO WATCH: Reynolds provides IT solutions for the automotive retailing marketplace. Given the fact that the majority of other IT-related companies are trading at multi-month lows, it's impressive to note that REY has been uptrending for the past two months. This relative strength bodes well for the bulls. Although potential investors need to be aware of possible resistance at the 200-dma ($27.29), aggressive traders could think about going long on a move above $26.25. This would put REY in a fast-move region, the top of which lies near $30.00. --- Texas Instruments - TXN - close: 18.27 change: -0.73 WHAT TO WATCH: Last week we featured TXN as a bearish Watch List candidate, based on its rollover from overhead resistance. The stock has since weathered some heavy selling and is now in danger of breaking to multi-year lows. The SOX.X suffered that fate today after CHTR announced an earnings warning and both Merrill Lynch and Prudential reduced their estimates on several chipmakers. TXN was specifically targeted by PRU, as they cut their 2002 outlook from 28 cents to 25 cents and reduced the 2003 estimate from 80 cents to 60 cents. Technically, TXN looks like a good short play on a move below $18.16. You'd have to go all the way back to 1998 to find the next level of historical support, which lies at $16.00. Further sector negativity could push TXN down to the $15.00 region. Point-and-figure chartists will note that a trade at $18.00 would trigger a spread-triple sell signal. ========================= Play-of-the-Day (BEARISH tech play) ========================= Maxim Integrated - MXIM - cls: 26.37 chg: -1.53 stop: 29.26 *new* Company Description: Maxim Integrated Products is a leading international supplier of quality analog and mixed-signal products for applications that require real world signal processing. (source: company press release) - ORIGINAL WRITE UP: September 12th, 2002 - Why We Like It: Hope springs eternal, and semiconductor bulls had theirs' lifted by the recent action in the SOX.X. The index rebounded from its multi-year lows, despite more evidence of weakness from the likes of INTC, NVLS, and others. The lack of a "sell the bad news" reaction seemed to indicate that the SOX's extended decline had outpaced the fundamental (albeit very hazy) outlook for future growth. From a technical perspective, most chip stocks had suffered intense selling and were overdue for a relief rally. Unfortunately for the bulls, today's action dashed nearly all hopes that the semiconductor group had put in a bottom. Lehman Brothers said this morning that its 2003 growth forecast for the semiconductor equipment sector had been reduced from 27% to 10%. LEH cited data points that indicate continued fundamental weakness. Piper Jaffray added fuel to the bearish fire by cutting estimates on several semi equipment stocks, including sector leader AMAT. The firm believes a continued tepid capital spending environment will weigh heavily on the group. Of course, this is not stunning news. We've known for some time that the prospects for a pickup in IT spending remain highly tentative. A week ago, when chip bulls were out in full force, negative brokerage comments would not have led to a widespread sell-off. Today's sizeable 6.0% decline in the SOX.X indicates that the longer-term bearish trend is still in place. The index has rolled over from psychological resistance at 300 and looks to be on a crash course with support at 275. The faltering daily stochastics (5,3,3) suggest that this level may eventually fail. MXIM is also threatening a breakdown to multi-year lows. The company wasn't directly implicated in today's downgrades, but its analog products have seen a similar reduction in demand. Although shares experienced heavy selling today, the daily stochastics (5,3,3) are just beginning to reverse near the midlevel. This is an indication that the bears are not yet finished with MXIM. With no underlying support levels, shares could experience a rapid decline if the sector remains weak. We'll enter this short play on a move below the multi-year low of $27.45. If all goes as planned we'll see MXIM fall below $27.00 (thus creating a triple-bottom p-n-f sell signal) and make its way toward psychological support at $25.00. Shorter-term traders could target a move to this level. We're going to look for a more severe sell-off that takes the stock all the way to the $20.00 region. If our play is triggered we'll use a stop at $30.06, above both today's high and psychological resistance at $30.00. Those with a greater risk tolerance could use a stop slightly above Wednesday's high of $31.62. - Most Recent Update: September 13th, 2002 - It was a "good news, bad news" day for the chip group. GNSS caught a bid on Friday after the company announced it would beat revenue estimates for the current quarter. However, this positive sector development was countered by ESST, who slashed its targets for the second half of 2002. Shares of the DVD chipmaker were ravaged for a 31% loss. With no other major news driving the group, the SOX.X continued to drift towards key support at 275. MXIM also witnessed light selling pressure on Friday. Our short play was activated when shares hit our entry trigger at $27.44. The stock traded mostly flat in afternoon trading and finished with a small loss. Going forward, we'll be watching for shares to break under today's low ($27.34) and move towards the $25.00 region. New short entries can be targeted on a move under $27.00, which would create a triple-bottom p-n-f breakdown. - Play-of-the-Day Comments: September 16th, 2002 - The chip sector was pressured on Monday by an earnings warning from CHTR and a slew of negative brokerage comments. Several stocks joined the SOX.X semiconductor index in setting new 52- week lows. Such was the case with MXIM, which fell to a 5.4% loss. This breakdown could bring more bears out of the woodwork. If this is the case, new entries could be targeted on a move below today's low ($26.20). A rollover from the $28.00 level might also provide a shorting opportunity. The SOX looks technically weak and may soon test the 250 level. This sector negativity could have MXIM breaching psychological support at $25.00 in rapid fashion. Based on the recent decline we've elected to tighten our stop-loss to $29.26, just above Friday's high. More aggressive traders could maintain a stop above the $30.00 mark. Picked on September 13th at $27.44 Gain since picked: +1.07 Earnings Date 11/05/02 (unconfirmed) ================================================================= To stop receiving this PremierInvestor.net Newsletter, send email to Contact Support ================================================================= DISCLAIMER ================================================================= This newsletter is a publication dedicated to the education of stock traders. The newsletter is an information service only. The information provided herein is not to be construed as an offer to buy or sell securities of any kind. The newsletter picks are not to be considered a recommendation of any stock but an information resource to aid the investor in making an informed decision regarding trading in stocks. It is possible at this or some subsequent date, the editors and staff of PremierInvestor.net may own, buy or sell securities presented. All investors should consult a qualified professional before trading in any security. The information provided has been obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. PremierInvestor.net staff makes every effort to provide timely information to its subscribers but cannot guarantee specific delivery times due to factors beyond our control. Please read our disclaimer at: http://www.optioninvestor.com/page/oin/aboutus/disclaimer.html ***************************************************************** ADVERTISING INFORMATION For more information on advertising in PremierInvestor.net Newsletter, or any Premier Investor Network newsletter please contact Contact Support. ***************************************************************** Copyright ) 2002 PremierInvestor.net. and The Premier Investor Network. Do not duplicate or redistribute in any form.
PremierInvestor.net Newsletter Monday 09-16-2002 section 2 of 2 Copyright ) 2002, All rights reserved. Redistribution in any form is strictly prohibited. The entire newsletter is best viewed in COURIER 10 for alignment ================================================================= In section two: Net Bulls Stop Adjustments: MXIM (bearish) Stock Bottom / Active Trader Triggered Plays: GM (bearish) High Risk/Reward Triggered Plays: INVN (bullish) Trading Ideas Value Plays With Bullish Signals Breakout to Upside (Stocks $5 to $20) Breakout to Upside (Stocks over $20) Breakout to Downside (Stocks over $20) Recently Overbought With Bearish Signals (Stocks over $20) ================================================================== Net Bulls (NB) Tech Stock section ================================================================== =============== NB Play Updates =============== Stop Adjustments ---------------- Maxim Integrated - MXIM - cls: 26.37 chg: -1.53 stop: 29.26 *new* The chip sector was pressured on Monday by an earnings warning from CHTR and a slew of negative brokerage comments. Several stocks joined the SOX.X semiconductor index in setting new 52- week lows. Such was the case with MXIM, which fell to a 5.4% loss. This breakdown could bring more bears out of the woodwork. If this is the case, new entries could be targeted on a move below today's low ($26.20). A rollover from the $28.00 level might also provide a shorting opportunity. Based on the recent decline we've elected to tighten our stop-loss to $29.26, just above Friday's high. More aggressive traders could maintain a stop above the $30.00 mark. ================================================================== Stock Bottom / Active Trader (AT) section ================================================================== =============== AT Play Updates =============== Triggered Plays --------------- General Motors - GM - close: 44.61 change: +0.53 stop: 46.01 Shares of GM were met with further selling on Monday morning. Our short play was triggered when the stock traded $43.89. On Tuesday we'll be looking for GM to break below the relative low ($43.70) and make its way towards the $40.00 level. Note that our stop is set at $46.01. ================================================================== HIGH RISK/HIGH REWARD (HR) section ================================================================== =============== HR Play Updates =============== Triggered Plays --------------- InVision Technologies - INVN - cls: 36.27 chg: +0.51 stop: 32.79 INVN extended its recent breakout on Monday. This play was triggered when shares hit $36.66 shortly after the opening bell. The stock displayed good relative strength, outperforming the NASDAQ and moving to a new multi-month high. Although our stop is set at $32.79, more conservative traders could use a stop slightly under Friday's low $33.45. Those looking for new entries can watch for a move above today's high at $37.25. ================= Trading Ideas ================= This section contains stocks that meet criteria which may make them of interest to long and short side traders. These are not recommendations, nor have they been reviewed by PremierInvestor editors for investment potential. However, each of them has technical and fundamental characteristics that make them worthy of further review by traders and investors looking for fresh ideas. New stocks will appear daily following the market close. Value Plays With Bullish Signals --------------------------------- Ticker Company Name Close Change KBH KB Home 52.24 +0.59 GMRK Gulfmark Offshore Inc 17.40 +0.76 --------------------------------------- Breakout to Upside (Stocks $5 to $20) --------------------------------------- Ticker Company Name Close Change RINO Blue Rhino Corp 15.84 +1.24 --------------------------------------- Breakout to Upside (Stocks over $20) --------------------------------------- Ticker Company Name Close Change AG Agco Corp 22.10 +1.04 OVER Overture Services Inc 24.34 +1.56 GTK Gtech Holdings Corp 25.10 +1.08 EASI Engineered Support Sys 61.25 +3.11 HRLY Herley Industries Inc 21.30 +1.29 AGM Federal Agricultural Mtg 29.56 +1.05 MTEC Meridian Medical Tech 30.69 +5.18 ------------------------------------------- Breakout to Downside (Stocks over $20) ------------------------------------------- Ticker Company Name Close Change FNM Fannie Mae 70.98 -1.72 WM Washington Mutual Inc 33.44 -1.76 ITW Illinois Tool Works Inc 61.05 -2.25 D Dominion Resources Inc 52.33 -5.67 KB Kookmin Bank 38.80 -2.70 GDW Golden West Financial 62.02 -1.78 ----------------------------------------- Recently Overbought With Bearish Signals (Stocks over $20) ------------------------------------------- Ticker Company Name Close Change NONE. ================================================================= To stop receiving this PremierInvestor.net Newsletter, send email to Contact Support ================================================================= DISCLAIMER ================================================================= This newsletter is a publication dedicated to the education of stock traders. The newsletter is an information service only. The information provided herein is not to be construed as an offer to buy or sell securities of any kind. The newsletter picks are not to be considered a recommendation of any stock but an information resource to aid the investor in making an informed decision regarding trading in stocks. It is possible at this or some subsequent date, the editors and staff of PremierInvestor.net may own, buy or sell securities presented. All investors should consult a qualified professional before trading in any security. The information provided has been obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. PremierInvestor.net staff makes every effort to provide timely information to its subscribers but cannot guarantee specific delivery times due to factors beyond our control. Please read our disclaimer at: http://www.optioninvestor.com/page/oin/aboutus/disclaimer.html ***************************************************************** ADVERTISING INFORMATION For more information on advertising in PremierInvestor.net Newsletter, or any Premier Investor Network newsletter please contact Contact Support. ***************************************************************** Copyright ) 2002 PremierInvestor.net. and The Premier Investor Network. Do not duplicate or redistribute in any form.
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