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Daily Newsletter, Thursday, 07/10/2003

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PremierInvestor.net Newsletter                Thursday 07-10-2003
                                                   section 1 of 2
Copyright (c) 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:      No Recovery, No Kidding
Watch List:       ADBE, AIG, XL, CTX and more!
Market Sentiment: Trend change

=================================================================
MARKET WRAP  (view in courier font for table alignment)
=================================================================
      07-10-2003           High     Low     Volume Advance/Decline
DJIA     9036.04 -120.20  9154.53  8996.76 1.78 bln    916/2273
NASDAQ   1715.86 - 31.60  1735.13  1707.49 1.72 bln   1090/2132
S&P 100   497.09 -  6.54   503.63   494.38   Totals   2006/4405
S&P 500   988.70 - 13.51  1002.21   983.63 
W5000    9523.27 -129.40  9652.71  9480.09
RUS 2000  469.03 -  7.96   476.99   467.61 
DJ TRANS 2538.45 - 24.00  2561.94  2529.26   
VIX        21.53 +  0.50    22.30    21.34   
VXN        33.66 +  0.44    34.55    33.00 
Total Volume 3,779M
Total UpVol    656M
Total DnVol  3,072M
52wk Highs  528
52wk Lows    20
TRIN       1.88
PUT/CALL   0.73
=================================================================

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

No Recovery, No Kidding

The market lost ground today after economic reports and several 
corporate executives suggested the recovery may not happen until
2004. Where have I heard that before? Maybe in July 2000, 2001 
and 2002. It is the month where expectations meet reality and 
for the last three years it has been the blind date from hell. 

Dow Chart - Daily


Nasdaq Chart - Daily Bar


Nasdaq Chart - Daily Candle


The string is unbroken at 21 weeks and it does not look like it
will change anytime soon. The Jobless claims soared to 439,000,
+14,000 over consensus estimates and last week's number was 
revised up to 434,000. Continuing claims rose to 3.82 million 
and a level not seen since the early 1980s. This 20-year high 
was not received well by Wall Street. The insured jobless rate
rose to 3.0%. Analysts trumpeted their seasonality claim for the
increase this week. They have been trying to find an excuse for
each of the last 21 weeks to no avail as the numbers continue to 
disappoint each week. This is also setting up another negative
number in the Jobs Report for July. The lack of a recovery is
being shown in the lack of jobs and the continued layoffs by
companies still trying to cut costs from lack of demand. 

Chain Store Sales showed a slight improvement of +2.4% but the 
gains were not broad based. WMT sales rose +2.7% but TGT only 
gained +0.8%, JCP +0.1% and KSS fell -2.4%. Several retailers
issued profit warnings today after a lackluster month. The survey
showed that most gains came from heavy promotional selling with
high discounts which could hurt the bottom line as we saw with
the earnings warnings. Additionally much of the sales gains came
from the Harry Potter book and several new video releases. Those
are one time events, not month to month improvements in general
volume. Barnes and Noble said half of their +10.5% sales increase
was due to the Potter book. Most retailers said their inventories 
are above plan which means they have not sold as much as expected
and that old inventory will have to be heavily discounted to make
way for the fall merchandise. Tax rebate checks and lower tax
withholding beginning in July should help retailers get rid of 
the excess inventory but unemployment is still a problem. 

Import/Export prices were about the only friendly report today
with Import prices rising +0.8% and export prices falling by
-0.2%. This is due to falling energy prices and the falling 
dollar. Considering the May import number was revised down to
a drop of -0.8% the gain for June only produced a breakeven. 
Still the report was seen as evidence that deflation is less 
of a problem than earlier thought. 

The MAPI Survey today fell to 60 for the 2Q, down from 63 in Q1
and 67 in Q4. The new orders index fell to 53 from 67. While this
still shows growth most would argue that the magnitude of the
drop is significant and could be seen as a warning for Q3. 77% 
of the survey participants reported operating under 85% of 
manufacturing capacity. The capital-spending component fell to 
54 from 62 and indicates the potential for limited spending in 
the 3Q. While the overall survey still showed limited growth it 
did show that that growth was continuing to slow. 

As if these economic reports were not enough we had Greenspan
testifying before Congress on energy prices. The bottom line to 
the speech was don't expect them to improve anytime soon and high
energy prices could be detrimental to the potential recovery. The
speech was soft peddled by the press but the outlook was clear. 
There is no light at the end of the energy tunnel and the recovery
has one more unexpected obstacle in its path. It was assumed the
soaring energy prices would return to lower levels once the war
was over and Iraq resumed production. After a brief dip to $25 
at the end of the war oil has resumed its rise and closed on
Thursday near $31 a barrel. 

The earnings parade is beginning and already we have some no shows
and several predictions of negative events ahead. JP Morgan said
the semiconductor sector was "rich" and warned that they were ripe
for the traditional summer drop. They fear the guidance from semis
for the 3Q could disappoint. Cisco CEO John Chambers said in Europe
on Wednesday that he saw a pickup in IT spending 2-4 months AFTER
any pickup in the economy. Assuming the economy picked up in the 
3Q, not likely since it is traditionally the weakest quarter of 
the year, then the IT spending would not occur until December or
sometime in early 2004. If the recovery does not appear until 
the 4Q then IT spending would be late Q1-2004 or later. Intel 
CEO Craig Barrett said today that he expects growth in the
semiconductor sector to slow several percentage points. Not a good
indication for their earnings guidance next week. The President of
UBS said the recovery in the markets exceeded the recovery in the 
economy and the current rally did not smell like a new bull market.
This was not the outlook investors were expecting. After all just 
a couple weeks ago the number of analysts surveyed by Investors
Intelligence was near 80% and at five-year highs.  

The most current barometers for the tech sector were the earnings
by YHOO and JNPR. Both beat the street but both suffered strong
losses in heavy trading. Neither warned but the performance and 
guidance was less than investors expected. JNPR said today that
the 3Q would be flat due to seasonal weaknesses. The keywords here
were "seasonal weakness". Investors have been expecting a strong 
3Q as the economy begins its recovery. Very few companies have
actually said they were seeing any recovery. Remember, this is
only the first week or earnings and a light week at that. 
Investors are now seeing the potential for even more serious 
questions next week and are becoming more cautious. On Friday 
morning we get GE earnings and while nobody expects them to miss 
there are plenty of analysts that think GE will try and talk down
estimates for 2003 AND 2004. GE is very good at spinning their 
earnings and I do not expect a major event tomorrow. They 
typically dribble out negative comments in measured doses 
throughout the quarter it order to manage expectations. Still 
most analysts will be using their microscope tomorrow to try 
and derive the state of the economy from the GE comments. 

The Dow traded below 9000 once again today and well off the highs
from Monday at 9261. The Nasdaq traded down to 1707 and well off
its 1758 high from Wednesday. While the selling was anticipated
I did not think we would see 9000 until next week. The Dow 9000
support level is strong and it withstood a concentrated attack
today. That does not mean it will hold. Remember we traded down
to 8871 just a week ago and could easily return to that level or
lower as the earnings begin to flow. I am not going to repeat the
justifications for my outlook as you will get the expanded and
updated version with this weekends newsletter. Suffice to say 
that there is nothing "surprising" in the earnings for investors 
to cheer about and the markets are still priced for perfection. 
The worry today was that history was repeating itself again. Not
that we would see a dip in July but that the second half recovery
was going to be missing in action for the fourth consecutive year.
To investors that thought is worse than any Freddy Kruger movie
and could be appropriately named "Nightmare on Wall Street 
Chapter IV". This week's sneak preview of 2Q earnings was not 
met with rave reviews and today traders reviewed their investment
"Matrix" to decide which positions should be "Terminated". The GE
earnings tomorrow will be the last chapter for the week and the
potential for a positive surprise ending is close to zero. With 
the flood of mid year retirement cash slowing to a trickle 
remember to keep those stops tight if you are long.
   
Enter Very Passively, Exit Very Aggressively!

Jim Brown


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


Adobe Systems - ADBE - close: 34.26 change: -0.53

WHAT TO WATCH: We've had our eye on ADBE for a few weeks now, 
looking for a fill of that gap just below $36 to provide a nice 
shorting opportunity.  We're going to call the rejection from 
just above the $35 level close enough and would look for new 
entries near current levels, targeting an eventual breakdown 
under $30.




---

American International Group - AIG - close: 55.85 change: -1.16

WHAT TO WATCH: It has definitely been a volatile path, but shares 
of Insurance giant AIG look like they are getting ready to 
finally break down.  After a brief foray over the $60 level, the 
stock is back under $58 resistance, as well as the 50-dma and the 
200-dma.  While there could be another brief bounce in the works, 
failure below $58 again looks like a solid entry ahead of an 
expected breakdown under $54 and then a drop to $50 support.




---

XL Capital - XL - close: 81.42 change: -2.37

WHAT TO WATCH: While we're just starting to see signs of weakness 
emerge from the Financial sector, XL has been building a solid 
top for more than 2 months now and appears on the verge of a 
major breakdown.  Look for a drop under $80 to get the party 
started and then target a drop into the $74-75 area, keeping one 
eye peeled for a possible bounce from the 200-dma.




---

Centex Corp. - CTX - close: 78.00 change: -1.56

WHAT TO WATCH: Is it time to short the home builders again?  From 
the looks of the charts it is, and CTX is approaching important 
support at the 50-dma and then $75.  Target a breakdown under 
those measures of support and look for a near-term move to $70, 
using the $DJUSHB index as a measure of strength/weakness in the 
overall sector.





===================
On the RADAR Screen
===================

AU $31.86 - Here's one for the bulls and it's one for the gold 
bugs as well.  AU has been working in a nice ascending channel 
for the past 3 months and it just rebounded from solid support 
(prior resistance) at $31 and looks headed for the top of the 
channel.  Note that there should now be strong support near the 
200-dma, as it coincides with the bottom of the channel.

FNM $70.14 - It is getting to be a regular habit listing FNM 
here, but this GSE (government sponsored entity) is looking 
weaker by the week.  This week's rebound failed at the 50-dmaand 
if the volume picks up, a break of the recent lows near $65 could 
be in the cards.

GM $35.70 - Broad market strength has been propping up shares of 
GM in recent weeks, but with that prop weakening, GM appears to 
be following suit.  Breaking below both the 50-dma and the 200-
dma on Thursday, the stock appears headed back for a test of 
May's support in the $33 area.

CI $46.62 - As the Insurance sector has continued to weaken over 
the past couple days, the weaklings are starting to make their 
presence known.  CI is at the head of that list, having grossly 
underperformed the market for the past 6 weeks and looking poised 
for a breakdown below $46 support.  If that gives way, then a 
quick drop to strong support near $42-43 seems reasonable.



===============================
Market Sentiment
===============================

Trend change
Jonathan Levinson
 
"Catching the turns" is one of the most valuable, and possibly 
the most dangerous activities in which traders engage.  Trying to 
"catch a falling knife" is a well-worn and appropriate cliché.  
Nevertheless, reward rarely comes without risk, and for traders, 
managing that risk against anticipated rewards is the name of the 
game.
 
We've been watching countless breadth and price oscillators and 
indices set records and remain in territory usually associated 
with market tops, with numerous false signals during the past 
weeks.  Although much of this data based on today's closing 
values has yet to be released, today's tape felt reminiscent of 
last summer's, indicating a possible trend change.  The short 
cycle stochastics and MACD had very little price traction to the 
upside, and price rolled over to new lows for most of the 
downphases.
 
Without seeing the updated bullish percents and breadth indices, 
I can tell that today's downside break represented a different 
trend than that which brought the indices to their highs 
yesterday, based solely on the action of the oscillators.  
Despite the bounce off the lows in the late afternoon, the 
indices all printed lower highs and lower lows.  Note further 
that the Nasdaq futures, which led this leg of the rally to the 
upside, underperformed both the Dow and S&P futures today.
 
In planning your trades, allow your market bias to follow the 
trend, and let the data guide your trading style.  And when it 
feels wrong or you feel confused, wait until you're not before 
jumping in.


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

Market Averages

DJIA ($INDU)

52-week High:  9353
52-week Low :  7197
Current     :  9036

Moving Averages:
(Simple)

 10-dma: 9094
 50-dma: 8890
200-dma: 8412

S&P 500 ($SPX)

52-week High: 1015
52-week Low :  768
Current     :  988

Moving Averages:
(Simple)

 10-dma:  990
 50-dma:  966
200-dma:  897

Nasdaq-100 ($NDX)

52-week High: 1307
52-week Low :  795
Current     : 1268

Moving Averages:
(Simple)

 10-dma: 1246
 50-dma: 1190
200-dma: 1055


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


While we're finally starting to see some (small) gains in the 
volatility indices but they continue to remain way too low.  Frankly
their lack of reaction to the weakness today does not denote much
fear in the markets at all.  Oddly, the VIX is struggling with
overhead resistance at its simple 50-dma but I doubt there is
much significance in that observation.

CBOE Market Volatility Index (VIX) = 21.53 +0.50
Nasdaq-100 Volatility Index  (VXN) = 33.66 +0.44

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

          Put/Call Ratio  Call Volume   Put Volume

Total          0.73        626,187       457,730
Equity Only    0.65        478,079       309,311
OEX            0.75         34,660        26,037
QQQ            3.28         25,446        83,353

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

Bullish Percent Data

           Current   Change   Status
NYSE          72.6    + 0     Bull Confirmed
NASDAQ-100    80.0    + 1     Bull Correction
Dow Indust.   86.6    + 0     Bull Confirmed
S&P 500       79.0    + 0     Bull Confirmed
S&P 100       83.0    + 0     Bull Confirmed


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

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

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

 5-Day Arms Index  1.25
10-Day Arms Index  1.19
21-Day Arms Index  1.20
55-Day Arms Index  1.15


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

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

Market Internals

            -NYSE-   -NASDAQ-
Advancers     795      1012
Decliners    2035      2055

New Highs     145       267
New Lows       18         8

Up Volume    320M      290M
Down Vol.   1438M     1400M

Total Vol.  1764M     1714M

M = millions


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

Commitments Of Traders Report: 07/01/03

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

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

S&P 500

There doesn't appear to be much change in the commercial or
small traders positioning since the previous week's big move.
Big money remains net short while retail traders remain 
heavily net long.


Commercials   Long      Short      Net     % Of OI
06/10/03      456,967   455,024     1,943     0.2%
06/17/03      519,887   501,401    18,486     1.8%
06/24/03      405,382   447,526   (42,144)   (4.9%)
07/01/03      415,976   453,005   (37,029)   (4.3%)

Most bearish reading of the year: (111,956) -  3/06/02
Most bullish reading of the year:   18,486  -  6/17/03
 
Small Traders Long      Short      Net     % of OI
06/10/03      199,356   185,403    13,953     3.6%
06/17/03      202,040   184,028    18,012     4.6%
06/24/03      159,405    85,182    74,223    30.3%
07/01/03      150,232    75,937    74,295    32.8%

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


E-MINI S&P 500

Sometimes it is amazing how the relationship between commercial
traders and small traders continue to play out.  Traditionally,
institutional traders (commercials) are historically on the right
side of the trend week in and week out.  Despite this success
the small trader is generally on the opposite side.  This time
big money is showing their most bullish reading in quite some 
time while the small traders is the complete opposite and 
marking their most bearish reading in many a month.


Commercials   Long      Short      Net     % Of OI 
06/10/03      270,359   543,221   (272,862)  (33.5%)
06/17/03      306,279   661,114   (354,835)  (36.6%)
06/24/03      150,208   201,724    (51,516)  (14.6%)
07/01/03      175,893   216,993    (41,100)  (10.5%)

Most bearish reading of the year: (354,835)  - 06/17/03
Most bullish reading of the year:  (41,100)  - 07/01/03

Small Traders Long      Short      Net     % of OI
06/10/03      498,999    49,689   449,310    81.9%
06/17/03      466,837    70,609   396,228    73.7%
06/24/03       84,081    44,347    39,734    30.9%
07/01/03       57,639    67,449     9,810     7.8%

Most bearish reading of the year:   9,810   - 07/01/03
Most bullish reading of the year: 449,310   - 06/10/03


NASDAQ-100

It looks like the commercials have been caught off guard.
They are growing increasingly bearish on the NDX, which is
hitting new 52-week highs.  Either institutions are expecting
a reversal soon or this has been a painful bout of denial
as tech stocks continue to rally higher.


Commercials   Long      Short      Net     % of OI 
06/10/03       42,877     45,793    (2,916)  (3.3%)
06/17/03       60,964     65,561    (4,597)  (3.6%)
06/24/03       28,780     47,425   (18,645) (24.4%)
07/01/03       28,662     48,265   (19,603) (25.5%)

Most bearish reading of the year: (19,603)  - 07/01/03
Most bullish reading of the year:   9,068   - 06/11/02

Small Traders  Long     Short      Net     % of OI
06/10/03       14,759     7,761     6,998    31.1%
06/17/03       29,400    23,232     6,168    11.7%
06/24/03       24,519     7,064    17,455    55.3%
07/01/03       26,777     8,498    18,279    51.8%

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

DOW JONES INDUSTRIAL

The action in the INDU futures remains somewhat dull after
watching the big moves in the e-minis above.  As expected
small traders are fading the commercials who are net long.


Commercials   Long      Short      Net     % of OI
06/10/03       17,368    15,263    2,105       6.5%
06/17/03       20,625    18,593    2,032       5.1%
06/24/03       19,373    11,565    7,808      25.2%
07/01/03       20,504    11,871    8,633      26.7%

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

Small Traders  Long      Short     Net     % of OI
06/10/03        7,968     8,316    (  348)   ( 2.1%)
06/17/03        9,092     9,398    (  306)   ( 1.6%)
06/24/03        5,950     7,442    (1,492)   (11.1%)
07/01/03        5,799     6,822    (1,023)   ( 8.1%)

Most bearish reading of the year:  (8,777) - 10/12/01
Most bullish reading of the year:   1,909  -  1/16/01

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



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DISCLAIMER
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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
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Copyright ) 2003  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.



PremierInvestor.net Newsletter                Thursday 07-10-2003
                                                   section 2 of 2
Copyright (c) 2003, All rights reserved.
Redistribution in any form is strictly prohibited.

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

Play of the Day:  Outperforming Again

Closed Plays:     TSM


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)


=================================================================
Play-of-the-Day  (bullish)
===============

Synopsis, Inc. - SNPS - cls: 63.80 change: -0.59 stop: 61.75*new*

Company Description:
Synopsis is a supplier of electronic design automation software to 
the global electronics industry.  The company's products are used 
by designers of integrated circuits (ICs), including system-on-a-
chip ICs, and the electronic products (such as computers, cell 
phones, and internet routers) that use such ICs to automate 
significant portions of their chip design process.  SNPS' products 
offer its customers the opportunity to design ICs that are 
optimized for speed, area, power consumption and production cost, 
while reducing overall design time.

Why we like it:
The big story in the NASDAQ on Wednesday was the Semiconductor 
index (SOX.X) managing its first close over $400 since last June.  
Our SNPS play had its breakout over the $64.25 trigger on Monday 
and over the past couple sessions, it has been consolidating above 
that level.  Traders looking for a reason why the stock wasn't 
able to immediately build on its breakout may want to look at the 
upper Bollinger band, which had flattened out just below $65.  The 
price action this week has once again started an expansion of the 
bands, and that should open the way for SNPS to move higher after 
the current consolidation runs its course.  There should be strong 
support now in the $63.00-63.50 area (former resistance) and a dip 
and rebound from above that zone can be used for new entries.  
Note that the 10-dma ($63.38) should reinforce that support zone.  
Note that our stop has moved up to $62.25 tonight, which is just 
below the converged 20-dma ($62.40) and 30-dma ($62.30).


Why This is our Play of the Day
It was actually a pretty dismal day in the markets if you were 
bullish, as nearly every sector ended in the red, and the 
Semiconductor sector (SOX.X) was near the top of the loser board 
with a 2.87% slide by the close.  Against that backdrop, we're 
pretty happy with the fractional loss on our SNPS play, especially 
seeing how it bounced back in the afternoon.  In fact, it is 
impressive how the stock managed to claw its way back to its 
opening levels by the close.  As shown on the chart below, the 
rebound began shortly after the open and gathered steam heading 
into the close.  A break back over the $64.25 level that was our 
initial entry trigger can be used for entering new positions, as 
can another rebound from above today's intraday low.  Note how the 
stock continues to have strong support at the 6-week ascending 
trendline, now at $61.90.  Recall that we raised our stop to 
$62.25 earlier in the week, which is just below last Thursday's 
intraday low.  That may have been a bit premature, given the 
location of the ascending trendline, so we're relaxing that stop 
just a bit to $61.75.

Annotated Chart of SNPS:


Picked on June 25th at   $63.59
Change since picked       +0.21
Earnings Date          08/20/03 (unconfirmed)
Average Daily Volume = 1.54 mln


=================================================================
Net Bulls / Tech Stocks
=================================================================

===========
CLOSED PLAY
===========

  --------------
  Closed Bullish
  --------------

Taiwan Semi - TSM - cls: 10.00 chg: -0.62 stop: 10.30

If we're going to be stopped out of a play, we might as well have 
that happen on big volume.  Tech weakness in Asian bourses 
carried through to U.S. markets Thursday, sending the Nasdaq, 
SOX, and TSM down.  TSM gapped down to 10.20 on the open, below 
our 10.30 stop.  After testing the opening level an hour after 
the open, TSM fell toward 10.00.  By midday, TSM's volume had 
already eclipsed its daily average and more than doubled it by 
the close.  

Picked on June 13 at $10.66
Change since picked:  -0.66
Earnings Date      07/24/03 (unconfirmed)
Average Daily Volume:   7.7 million







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

WYE     Wyeth                      47.69     +0.60
TLB     Talbots Inc                33.65     +1.60
NCT     Newcastle Investment       20.85     +0.65
WHC     Wackenhut Corrections      18.47     +1.17
LBY     Libbey Inc                 26.96     +1.34
SGDE    Sportsman's Guide Inc      12.45     +1.17

---------------------------------------
Breakout to Upside (Stocks $5 to $20)
---------------------------------------

PDII    PDI Inc                    17.35     +6.42
MRGE    Merge Technologies         15.13     +1.59
MED     Medifast Inc               14.44     +2.07
FTUS    Factory 2-U Stores          6.45     +1.05
GILTF   Gilat Satellite Network     6.44     +1.04

---------------------------------------
Breakout to Upside (Stocks over $20)
---------------------------------------
  
PEP     Pepsico Inc                46.95     +2.40
INFY    Infosys Technologies       58.50     +2.00
WIT     Wipro Ltd (ADS)            27.23     +2.63
KMT     Kennametal Inc             38.55     +1.72
VMSI    Ventana Medical            33.70     +4.03
CENT    Central Garden & Pet Co    28.89     +1.79
SHRP    Sharper Image              29.75     +1.40

-------------------------------------------
Breakout to Downside (Stocks over $20)
-------------------------------------------

GSK     GlaxoSmithKline (ADR)      38.73     -1.29
DEO     Diageo Plc (ADS)           42.05     -1.01
BVF     Biovail Corp               44.01     -2.07
AJG     Arthur J. Gallagher        25.70     -1.30
LOGI    Logitech Intl (ADR)        28.00     -3.01
HRH     Hilb Rogal & Hamilton      31.90     -2.42

-----------------------------------------
Recently Overbought With Bearish Signals (Stocks over $20)
-------------------------------------------

YHOO    Yahoo! Inc                 32.56     -2.73
BCR     C.R.Bard Inc               69.42     -1.72
SVU     SuperValu Inc              21.71     -1.14
NDN     99 Cents Only Stores       33.63     -1.08
IFIN    Investors Financial Srvcs  31.22     -1.09
LF      Leapfrog Enterprises       31.97     -1.03
ANN     Ann Taylor Stores          28.37     -1.64




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