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Daily Newsletter, Monday, 02/24/2003

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PremierInvestor.net Newsletter                 Monday 02-24-2003
                                                  section 1 of 2
Copyright ) 2003, All rights reserved.
Redistribution in any form is strictly prohibited.

The entire newsletter is best viewed in COURIER 10 for alignment
=================================================================

In section one:

Market Wrap:      U.S. Hits the Accelerator
Watch List:       CTAS, EK, KSS, SMH, V, and more...
Play of the Day:  Sharpening Their Claws


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MARKET WRAP  (view in courier font for table alignment)
******************************************************************
02-24-2003                   High    Low     Volume Advance/Decl
DJIA     7858.24 -  159.87  8017.34  7851.11  1455 mln  274/1175
NASDAQ   1322.38 -  26.64  1343.09  1321.44   1197 mln  286/877
S&P 100   421.47 -  8.40    429.87  421.17    totals    560/2052
S&P 500   832.58 -  15.59   848.17  832.16
RUS 2000  358.22 -  6.14    364.36  357.90
DJ TRANS 2017.69 -  78.72   2095.82 2013.01
VIX        36.77 +  2.63    36.78   35.43
VIXN       44.88 -  1.22    46.84   44.58
Put/Call Ratio 0.85
******************************************************************

===========
Market Wrap
===========

U.S. Hits the Accelerator
by Steven Price

It is getting more and more difficult to decide just how much
world events are weighing on the markets and just how much
economics are figuring in.  Friday's wild intraday swings were no
doubt due to international developments. However, today's drop
may have been either a look back at Thursday's poor economic
numbers or a result of the U.S. apparently setting a timetable on
war.

Colin Powell said in a speech in Japan on Sunday that the U.S.
wants a U.N. Security Council vote after Weapons Inspection Chief
Hans Blix gives his report on March 7.  On Friday, Blix asked
Iraq to destroy Al-Samoud 2 missiles by March 1.  The order was
the result of the missile's range exceeding limits set by the
U.N. in 1991 and 1994 and Iraq said it was studying the order.
Blix also said in a Time Magazine interview that the country had
yet to account for its stocks of VX nerve agent and Anthrax.  The
U.S. and Britain introduced a new U.N. resolution on Iraq that is
believed to declare the country in "material breach" of
resolution 1441 and basically says Iraq blew their last chance.
It does not go so far as to authorize military force, but appears
to set the tone for such action if/when the U.S. and Britain
decide to move in. The resolution is a risky proposition, since
there is anything but a consensus on the use of force at this
time, but if nothing else the U.S. can say it tried to get a
coalition before making its own decision.  France, Germany and
Russia are submitting their own resolution which will likely call
for more inspections. Conspiracy theorists will suggest the U.S.
would not be introducing the resolution unless it was fairly sure
it would eventually get a favorable vote.  Right now, it only has
4 of 13 votes and it will take some pressure to swing the
pendulum. It needs 9 votes and no vetoes for it to pass, however,
the latest resolution may simply be an attempt at window dressing
a decision that has already been made. CNBC reported today that
Dan Rather had held an exclusive radio interview with Saddam
Hussein, in which Hussein said he would not destroy the missiles,
as Blix has requested and he challenged President Bush to a radio
debate.  While the White House has already responded that the
issue with Iraq is about weapons, not debates, I suppose it is
possible Hussein is laying the groundwork for a U.S. presidential
run in 2004, since it is unlikely he will still be running Iraq
at that time (GRIN).

Chart of the Dow


Turkey is also a step closer to allowing the U.S. to launch
strikes against Iraq from within the country.  I suggested last
week that once it came down to a matter of dollars, at some point
it would be worked out.  Turkey's stated concerns about the
economic impact of war in the region were really just a
bargaining chip, but a hollow one since the country would likely
suffer those effects whether the U.S. launches attacks from its
turf or elsewhere.  The Turkish cabinet has already approved the
latest U.S. aid package and a Parliament vote could come
tomorrow.

All of the war talk is not doing much for the aerospace/defense
sectors.  The Defense Index (DFI.X) continues to set new 52-week
lows and is just about the ugliest sector chart I've seen
recently. Whether this is due to predictions of a short war not
having much impact on these stocks bottom line, or whether it is
a reflection that they were overbought on war jitters to begin
with, they look anything but bullish.  It is hard to imagine
anything creating a rally at this point, if they haven't moved
higher as we head closer to a deadline for an invasion.  The DFI
is now down 20% since January 6 and looks like it has fallen off
a succession of cliffs.

Chart of the DFI


The chip stocks actually showed some decent relative strength
today.  It is hard to say what is holding up the sector, but with
a poor book-to-bill already released and a severe warning from
AMAT already figured in, apparently the picture wasn't as bad as
many institutions were expecting.  This morning Cisco announced
that its new Compatible Extensions wireless chip technology will
be adopted by chipmakers Intel, Texas Instruments and Intersil.
CSCO is offering free licenses to include the technology on chips
and IBM and Hewlett Packard have already agreed to support the
technology.  This seems to be the lone impetus for the bullish
hold in the sector, but the more important part of today's action
is possibly that it has held onto last week's gains, while the
rest of the market has been bouncing around the last few days. It
did eventually succumb to market wide weakness, but spent much of
the day in the green, before losing less than a point on the day.
This strength should be a red flag for bears, as the tech indices
will likely hold some of the recent gains as long as the chip
stocks do.  If it does begin to roll over, however, with
resistance just above at the 300 level, we may be seeing a short
entry point.  No sign of weakness yet, however.  We did see one
vote of non-confidence from J.P. Morgan, which downgraded
equipment maker Cymer, saying it saw diminishing prospects for
lithography demand acceleration in the second half of 2003.
Morgan said the next two to three quarters exhibit above average
risk for the company.

Those traders following the point and figure charts can note a
development that doesn't show up on today's charts.  On Friday,
the SPX, which had been on a strong reversal higher in a column
of "X," rolled over back down into a sell signal.  The rollover,
however, came on the drop that followed the terrorism scare after
the explosion on Staten Island.  As soon as that scare was over
and it became evident that it was an accident, we quickly
reversed direction and headed higher.  That reversal called into
question the bearish reversal signal we saw, as charts are
incapable of taking into account world events.  This morning,
however, we got some confirmation of that reversal.  While we
failed to trade as low as we did on Friday in the SPX, we still
traded down below that reversal at 835, confirming the bearish
signal.

Point and Figure Chart of the SPX


The Dow reversed lower on the PnF chart last Thursday when it
traded down to 7900. The big intraday rally on Friday actually
failed to reverse that signal back up into a column of "X" and
today's move back below 7900 also seems to confirm that
bearishness from these levels. The Dow did set another intraday
lower low, ticking a few points below Friday morning's low, but
bouncing again off 7850 (low of 7851). The OEX also reversed its
bullish column of "X" back into a bearish column of "O" after
topping out at 430 on Friday and breaking below the 422.50 level
today. We have been watching this index on a 2.5-point box, which
more closely mirrors the activity in the Dow and SPX.

Those Dow theorists watching the transports for confirmation of
the moves we are seeing in the broader markets will not that the
TRAN has not only fallen below its February low, but it now also
testing its October lows. Dow Theory holds that any move in the
Dow must be confirmed by a move in the transports (although it
actually started years ago with the Rails Index), before
determining a true trend. Higher fuel costs continue to weigh on
the transports and led to a downgrade of several trucking stocks.
Bear Stearns lowered its ratings on trucking stocks CVTI, HTLD,
JBHT, KNGT, SWFT and WERN, saying that the group underperformed
at the beginning of the last Gulf War, when oil prices jumped
from $23 to $41 per barrel.


We are seeing the affect of higher fuel prices across the board,
not just on the transports.  We have heard from numerous
companies that they have had to adjust their earnings
expectations due to these costs and both the consumer and
producer price indexes released last week showed fuel prices as
the highest contributor to inflation.   Natural gas prices
continue to surge, jumping an amazing 21% in a single day today;
heating oil hit an all-time high today; and crude oil futures
were on the rise once again, adding almost $1 per barrel on the
April contract to close at $36.52 per barrel.

Chart of the TRAN


Traders will also note the Market Volatility Index (VIX), which
bounced back above the 35% level that had served as support in
the recent past and had indicated market pullbacks.  We closed
below that level on Friday, and it appears it was not as reliable
as it had been recently.  However, it did bounce above the last
false breakdown signal (contrarian to stocks), which came on
February 3 and also was followed by a drop in equities. The next
resistance level and the one that has signaled intraday and daily
equity bounces is 40% and with the VIX sitting at 36.77, it
appears that we have room to fall before this indicator signals
support for the OEX.  In contrast, however, the VXN, which
measures implied volatility levels of the NDX, actually fell in
spite of the drop in stocks and failed to confirm the move higher
in the VIX.

The retail sector got some mixed news today, as Lowe's (LOW) not
only beat earnings expectations, but raised its full-year
guidance. The company said the raised guidance was due to its
plans to expand into New York and other large cities, many of
which are currently dominated by Home Depot (HD).  On the
negative side, Federated and J.C. Penney both warned on February
same store sales results.  The companies both blamed bad weather
on the east coast for keeping shoppers at home.  Federated said
its sales would drop 7-8%, approximately double previous
estimates.  JCP had said its sales would be flat, but now says
they will be down 2-3%.  Wal-Mart didn't suffer quite as badly,
but said its sales would track at the low end of the previous 2-
4% guidance. The RLX reversed Friday's gains, finishing down 2%
on the day.  With most retail earnings reports just behind us, we
will be judging the market based on these weekly and monthly
sales results and so far they are not promising.  While so far
they have been blamed on the weather, which is a valid excuse due
to much of the terrible east coast snowstorm, it will be
interesting if those sales make up for the loss on the positive
side, or if these are simply lost profits.  Given the current
state of the economy, based on last week's jobs data, I actually
believe the increase in job losses may be partly responsible for
the drop in sales, as well as the weather,  and the losses will
be at least partly unrecoverable.

Used car prices have now dropped to a five-year low.  This is
mostly due to a combination of the economy and the deals that
have been offered on new cars.  While those new cars have been
flying off the lots, the pressure on used car prices affects
dealers and manufacturers bottom lines on more than one front.
First and most obvious is the margins on the used car lots, which
often outstrip the profits on new cars.  But maybe more
significantly, the residual values that are figured into the
price of a lease are affected.  Dealers figure lease payments
partially by what they can sell a car for when the lease is done
and if that value drops after the lease is written, it cuts into
the expected profits.

One of the catalysts for sending most of the techs lower (with
the aforementioned exception of the SOX), was a comment from
Thomas Weisel regarding Oracle's earnings projections. Oracle CFO
Jeff Henley said he expected the February quarter to show
slightly positive revenue, although he qualified the projection,
saying they'd have to wait and see.  This morning, Weisel said
its channel checks suggested the February quarter still hinges on
the final two weeks of the month and expressed caution in the
environment.

Today it once again looked like the bounce we saw last week was
just a temporary reprieve on the way down.  However, it seems
that each wrap I write carries a different tone than the day
before.  The news that the U.S. was pressing the accelerator no
doubt had some affect on the market.  If we get news that there
will be resistance to the U.S. resolution and more favorable
treatment for that of Russia, France and Germany, we may see
another move higher tomorrow - the theory being that there will
be another delay in U.S. action. There is also the thought that
multilateral action is better for the markets than unilateral
action, as it may prevent foreigners from pulling money out of
U.S. assets.  It is still very tough to predict the next day's
move.  The PnF reversals back down indicate the next move is
lower, but I am still not willing to bet the house on it.  Stick
to risk capital only and make sure your stops are set in
accordance with a risk profile that makes you comfortable.  After
all, being able to sleep at night will always hold its value.


==================================================================
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
---------------------------------

Cintas Corp. - CTAS - close: 32.11 change: -1.19

WHAT TO WATCH: Shares of CTAS gapped below the $38.00 support
level last Monday after the company announced an earnings
warning.  Citing hiring freezes and work-force reductions by its
major customers, Cintas slashed their 2003 earnings expectations
to $1.43-$1.50 per share.  The analyst consensus was $1.55 a
share.  The resulting breakdown has led to some rapid losses in
the company's stock.  Over the past three sessions the stock has
stabilized above $32.00 while continuing to trace a trend of
lower highs.  A breakdown below this level might give aggressive
traders a bearish entry point.  Other than psychological support
at $30.00, there is little to prevent the bears from taking CTAS
down to the 1999/2000 lows near $25.00.




---

Eastman Kodak - EK - close: 29.34 change: -0.68

WHAT TO WATCH: EK displayed surprising strength after it bottomed
out near $25.00 in October.  Shares trended sharply higher in the
following months and reached a 52-week high of $41.08.  But in
this case, what went up...quickly came down.  EK saw heavy
selling in the second half of January after the company missed
earnings and guided lower for 2003.  The stock then spent a few
weeks gravitating towards the $30.00 area.  Unfortunately for
shareholders the technical picture worsened today when the stock
fell out of its recent trading range and violated support at
$29.50.  This breakdown has raised the possibility that EK may
retrace the remainder of its rapid October gains and move down to
the $25-$26 region.  Short entries could be targeted on a move
below bullish p-n-f support at $29.00.




---

Kohls Corp. - KSS - close: 47.90 change: -3.54

WHAT TO WATCH:  When it rains, it pours.  Just ask retail
investors.  The entire sector was pressured today by a trifecta
of bearish news from some major players within the group.  Both
Federated and JC Penney reduced their February same-store sales
expectations, saying that the recent bad whether in the
Northeastern U.S. had kept many potential customers at home.  WMT
left its February forecast unchanged but also said the sales were
under pressure and tracking at the low end of expectations.
These developments hit KSS particularly hard.  The stock was
slammed for a 6.8% loss that took shares below support at $50.00.
Bears will now be licking their chops in anticipation of a
decline to the October low of $44.00.  This would be a reasonable
downside target for short-term traders, who could set up an
acceptable risk/reward strategy by using a stop-loss slightly
above $50.00.  Watch for a breakdown under today's low ($47.78)
to yield a possible bearish action point.  Conservative traders
will probably want to wait for a failed rally back to the $50.00
area before thinking about going short.




---

Procter & Gamble - PG - close: 82.89 change: -1.35

WHAT TO WATCH: In recent months PG has proven to be quite
resilient, with the stock consistently bouncing back after it
reached relative lows.  However, there's no arguing with the
steady downtrend that has taken PG down from the December highs
near $88.00.  What's also interesting is the fact that shares
have repeatedly rolled over from the descending 21-dma at $84.30.
Friday's failed rally at that moving average was followed up with
a 1.6% pullback on Monday.  A continuation of the long-term
downtrend would lead to a test of support at $82.00 and the
multi-month low at $81.55.  If a breakdown does occur there's
plenty of downside potential, with a large fast-move region
extending down to the July lows near $75.00.




---

Semiconductor HOLDRS - SMH - close: 22.84 change: -0.20

WHAT TO WATCH: The chip group showed good relative strength on
Monday.  In spite of a 1.9% sell-off in the NASDAQ, the SOX.X
held firm and posted only a fractional loss.  This outperformance
appears to have partially stemmed from news that CSCO had struck
a deal with several semiconductor companies (including INTC and
TXN) to adopt their new wireless chip technology.  Positive
sector sentiment allowed the SOX.X to extend its recent pattern
of higher highs and higher lows.  However, with overhead
resistance at 298 (location of the converging 50-dma and 100-dma)
and 300, the bullish trend might soon be coming to an end.  We
like the SMH as a possible short play if the SOX.X rolls over
from current levels.  Watch for a move below $22.40 or $22.21
(last week's low) to set the stage for a retest of support near
$20.50.  The stock's p-n-f chart is showing a triple-bottom sell
signal.




---

Southwest Airlines - LUV - close: 12.04 change: -0.29

WHAT TO WATCH: Aggressive short-term traders might be able to
squeeze a quick one-dollar move out of LUV.  The stock is in
danger of breaking below support at $12.00.  A violation of this
level would clear the way for a possible decline to the $11.00-
$11.25 region.  In terms of sector strength (or lack thereof!),
the airline index is looking very ugly after today's 4.1% decline
dragged the XAL.X to new relative lows.  The next level of
support is at $26.00 - a very attainable target for the bears if
high oil prices continue to plague the group.




---

Valero Energy - VLO - close: 38.82 change: +1.31

WHAT TO WATCH: Amid an easing of tensions in Venezuela (and a
corresponding increase in the amount of oil the country is exporting),
shares of Valero have broken above resistance at
$38.00.  The point-and-figure chart shows that VLO has also moved
above bearish resistance.  Additionally, a trade at $39.00 would
create a double-top buy signal.  A breakout above this level
might allow the stock to rally towards the 2002 highs near
$50.00.  Possible overhead resistance looms at $40.00 and $42.00.




---

Vivendi - V - close: 14.62 change: -0.97

WHAT TO WATCH: Vivendi bulls have been fighting a losing battle
ever since the stock maxed out near $19.00 in the middle of
January.  A recent short-covering bounce from the 100-dma wasn't
enough to take V above the descending 21-dma, currently at
$16.10.  The technical outlook is looking worse now that shares
have broken down to fresh multi-month lows.  The daily chart
shows a large fast-move region that was formed by the steep late-
October rally.  This region extends down to the $11.00 area.  In
terms of action points, bears can watch for a move below $14.50
to provide downside confirmation.  However, be aware of possible
support at $14.00.  This level acted as resistance in September
and again in November.





===============
Play-of-the-Day  (BEARISH active trader/non-tech play)
===============

Air Products - APD - close: 38.26 change: -0.57 stop: 42.01

Company Description:
Air Products serves customers in technology, energy, healthcare
and industrial markets worldwide with a unique portfolio of
products, services and solutions, providing atmospheric gases,
process and specialty gases, performance materials and chemical
intermediates. The company is the largest global supplier of
electronic materials, hydrogen, helium and select performance
chemicals. (source: company website)


- ORIGINAL WRITE UP: January 28th 2002 -

Why We Like It:
Shares of Air Products spent the latter part of 2002 bouncing
around between $40 and $46. This range actually tightened in late
December and early January, as APD spent several weeks trading in
the $42-$44 region. It wasn't until last Wednesday that the stock
finally broke to the downside. The catalyst for this decline was
the company's earnings report. Air Products showed a boosted
profit on increased sales, but missed consensus estimates by once
cent. Investors have had a clear bearish bias on APD ever since.
Similar selling pressure has been seen in shares of chemical
giants DD and DOW. DuPont reported their own quarterly earnings
today and rose a paltry 27 cents after it beat estimates by three
pennies. The recent action in chemical stocks is a reflection of
economic uncertainty on Wall Street. Is a dreaded "double-dip"
recession just around the corner? Nobody knows for sure, but as
long as economic data remains sluggish (i.e. today's weaker-than-
expected durable goods orders), the large institutional buyers
will be hesitant to bet on a recovery in the manufacturing
sector.

Technically, we like APD as a bearish play because the stock is
on the verge of breaking through key support in the $40.00
region. Shares rebounded from this level on multiple pullbacks in
the second half of 2002. Pulling back to a weekly chart, we see
that the next level of possible support is down at the 2001 lows
near $32.00. For the purposes of this play we'll target a move to
the $33.00 area. Shorter-term traders could aim for a test of the
p-n-f bearish vertical count of $36.00. One caveat: The recent
losses have pushed the daily stochastics into oversold territory.
This indicates that APD might see some short-covering at current
levels. However, we think the stock will succumb to another wave
of selling once support gives way. We're placing an entry trigger
at $39.84 (one cent under yesterday's low) in order to confirm a
breakdown. If the play is activated we'll use at stop at $43.02,
just above the descending 50-dma. More conservative traders could
a stop slightly above Friday's high of $42.15.

- Last Update: February 21st, 2003 -

The column of O's on APD's Point-and-Figure chart keeps getting
longer. That's good news for the bears on this stock. However, we
should note that the stock bounced pretty strongly off today's
lows. We mentioned on Thursday that APD was due for a bounce and
the rebound in the broader indices probably helped fuel the move
today in APD. Shares did fail late in the day at $39.00 but we
would not be surprised to see the stock attempt to bounce even
higher on Monday before encountering more resistance. Those
traders looking for new positions will want to keep their eyes
open for opportunities early next week to initiate new short
plays. Premier Investor will keep our stop at $42.01 for the
moment but a tighter stop at $41.00 or just north of $40 would
not be unreasonable.

- Play-of-the-Day Comments: February 24th, 2003 -

A bearish trend across the equity market did not sit well with
shareholders of APD on Monday.  The stock traded an Inside Day
and gave back a healthy chunk of the previous session's intraday
gains.  A 15-minute chart shows short-term resistance at $39.00
and $38.60.  A failed rally from the former level might provide
traders with an opportunity to open new bearish positions on
Tuesday.  Those seeking further downside confirmation will want
to wait for a move below the relative low of $37.85.  A break
under this level would clear the way for a possible decline to
the next level of psychological support at $35.00.  Conservative
traders can continue to use a stop slightly above $40.00 or
$41.00.  Our stop remains at $42.01.

Picked on January 29th at $39.84
Results since picked:      +1.58
Earnings Date:          01/22/02 (confirmed)







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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

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Copyright ) 2003  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.
PremierInvestor.net Newsletter                  Monday 02-24-2003
                                                   section 2 of 2
Copyright ) 2003, All rights reserved.
Redistribution in any form is strictly prohibited.

The entire newsletter is best viewed in COURIER 10 for alignment
=================================================================

In section two:

Stock Bottom / Active Trader
  Stop Adjustments:      JWN (bearish)

High Risk/Reward
  Stop Adjustments:      AW (bearish)

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)


==================================================================
Stock Bottom / Active Trader (AT) section
==================================================================

===============
AT Play Updates
===============

Stop Adjustments
----------------

Nordstrom Inc - JWN - cls: 16.63 chg: -0.61 stop: 17.76 *new*

JWN was pressured today by news from Federated (FD), JC Penney
(JCP) and Wal-Mart (WMT).  All three retailers reported that
same-store sales for February were negatively impacted by the
recent blizzard in the Northeastern United States.  Investors
didn't need to read between the lines to see how Nordstrom had
probably suffered the same downturn in business.  Shares dropped
to new multi-month lows and finished with a 3.5% loss.  This
breakdown has raised the possibility that JWN could soon reach
our profit-target at $16.06.  At this time we're going to lower
our stop-loss to $17.76, which should protect a minimal gain.
More conservative traders could use a stop slightly above
Friday's high of $17.30.






==================================================================
HIGH RISK/HIGH REWARD (HR) section
==================================================================

===============
HR Play Updates
===============

Stop Adjustments
----------------

Allied Waste - AW - close: 8.00 change: -0.30 stop: 9.03 *new*

AW continued its precipitous decent on Monday.  The stock moved
quickly lower after the opening bell and finished the session
with a 3.6% loss.  Shares were unable to trade above $8.00 during
the final two hours of trading.  That's a sign that AW might
extend its losses on Tuesday.  Aggressive short-term traders
could evaluate new bearish positions if the stock breaks under
today's low of $7.90, but keep in mind that we've set at profit-
target at $7.06.  We've also inched our stop-loss down to $9.03,
just above the descending 200-dma.





==================
  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

APC     Anadarko Petroleum         46.76     +1.08
FDCC    Factual Data Corp           8.84     +0.52
XEC     Cimarex Energy             19.65     +0.55

---------------------------------------
Breakout to Upside (Stocks $5 to $20)
---------------------------------------
Ticker  Company Name               Close     Change

RINO    Blue Rino Corp             11.32     +1.42
LSS     Lone Star Technologies     18.83     +1.01
OSTK    Overstock.com              18.11     +1.55

---------------------------------------
Breakout to Upside (Stocks over $20)
---------------------------------------
Ticker  Company Name               Close     Change

VLO     Valero Energy              38.82     +1.31
TDW     Tidewater Inc              31.14     +1.04

-------------------------------------------
Breakout to Downside (Stocks over $20)
-------------------------------------------
Ticker  Company Name               Close     Change

BA      Boeing Co                  28.49     -1.15
MTG     MGIC Investments           39.98     -1.49
BGG     Briggs & Stratton          38.29     -1.18
DOW     Dow Chemical               26.97     -1.19
VFC     VF Corp                    33.23     -1.31
CCU     Clear Channel Comm.        34.60     -2.17
BDG     Bandag Inc                 30.92     -1.04
WTW     Weight Watchers            39.43     -2.64

-----------------------------------------
Recently Overbought With Bearish Signals (Stocks over $20)
-------------------------------------------
Ticker  Company Name               Close     Change

                             




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