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Daily Newsletter, Wednesday, 07/16/2003

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PremierInvestor.net Newsletter                Wednesday 07-16-2003
                                                    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:      The Day After


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)

=================================================================
MARKET WRAP  (view in courier font for table alignment)
=================================================================
     07-16-2003         High     Low     Volume Advance/Decline
DJIA     9094.49 - 34.38  9153.42  9042.19 2.16 bln    595/1518
NASDAQ   1747.97 -  5.24  1767.90  1734.14 1.95 bln    731/1200
S&P 100   501.07 -  3.00   505.89   498.85   Totals   1326/2718
S&P 500   994.09 -  6.33  1003.47   989.30
RUS 2000  473.68 -  3.25   477.97   471.93
DJ TRANS 2597.51 + 23.54  2597.54  2569.41
VIX        22.29 +  0.45    22.74    21.62
VXN        33.94 -  0.01    35.48    33.63
Total Volume 4,360M
Total UpVol  1,370M
Total DnVol  2,908M
52wk Highs     471
52wk Lows       33
TRIN          1.08
PUT/CALL      0.70
=================================================================

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

The Day After
Jonathan Levinson

We were treated to a second day of Alan Greenspan's testimony,
and the markets obliged us with a second day of large moves.  The
initial move was hard down for equities, and if you missed it,
you spent the remainder of the day chasing a tight range rich
with temptation and menace.

One year daily candle chart of the INDU



In honour of the broad, macroeconomic issues being discussed by
lawmakers for the past two days, I've zoomed out to the yearly
chart of the indices for some perspective on where we sit.  We
see the Nasdaq fresh off a recent yearly high, with the Dow
lagging behind, having just failed to break its previous top.
The lower oscillator high on the INDU is particularly worrisome
for bulls, and in terms of risk/reward, the better bet appears to
be to the downside.  For a more detailed analysis of the indices
and the day's action, I have covered the US Dollar, gold,
treasuries, as well as the Dow, Nasdaq and S&P futures in
tonight's Futures Wrap.

One year daily candle chart of the COMPX



The Commerce Department reported that U.S. businesses inventories
dropped by 0.2 percent in May as sales declined.  This was the
first reduction in business inventories since April 2002. The
inventory-to-sales ratio remained flat at 1.40. Inventories were
unchanged in April while sales sank 1.7 percent.  Inventories
were expected to be unchanged from April to May.

The Federal Reserve reported that industrial production rose 0.1
percent in June. Manufacturing output rose 0.4 percent. Capacity
utilization of US factories, mines and utilities remained at 74.3
percent, indicating massive ongoing idle capacity.

The Consumer Price Index rose 0.2 percent in June, while the core
rate excluding food and energy costs remained unchanged.  The CPI
was inline with expectations, while the core rate disappointed by
0.1 percent.  The CPI was up 2.1 percent year-over-year, while
the core rate increased 1.5 percent. For the first six months of
2003, the CPI has increased at a 2.2 percent seasonally adjusted
annual rate.

The American Petroleum Institute reported a 4.8 million barrel
drop in crude inventories for the week ended July 11. The Energy
Department had reported a drop of 3.6 million barrels, a welcome
consensus after last week's disagreement between the two sources.
The AIP  reported that supplies now stand at 277.7 million
barrels. Gasoline supplies rose by 5.2 million barrels to 209.4
million barrels and distillate inventories reached 113.4 million
barrels on a gain of 4.8 million barrels from the previous week.

The Mortgage Bankers Association (MBA) announced that seasonally-
adjusted demand for mortgage refinancings, the MBA refinancing
index, dropped 1.6% for the week ended July 11.  Demand for loans
with which to buy homes, the Purchase index, rose 8%. The average
interest rate for a 30-year fixed rate mortgage fell to 5.33%
from 5.37%.  Note that the previous week was a shortened holiday
week, and so the decline in the refi index compounded a very poor
showing the week before. The National Association of Home
Builders reported that its index for current sales rose to 69
from 67, its index for buyers' traffic rose to 50 from 47, and
its  expectations index rose to a two-year high of 73 from 70 in
June.

In our continuing glance at macro issues, I have updated the MZM
money supply chart, and have added some others.  I encourage you
to look at the past two Wednesday Market Wraps for greater
perspective on this subject.

Chairman Greenspan addressed the Senate Banking Committee today,
discussing the usual plethora of pertinent issues, including the
retirement of the baby boomers, currency intervention by central
banks, the revaluation of the yuan, rising deficits, tax cuts and
unconventional measures.  He held out sufficient hope of the
latter to give a boost to sagging treasury bond prices, which had
started the day continuing the slide from yesterday's selloff.  I
find these issues fascinating and could discuss them ad nauseum,
but will instead continue the analysis of these broader issues by
looking at the latest data.

The first set of charts demonstrates the efforts made by the
Federal Reserve to stimulate the economy.  The inflation of the
money supply, which is an effective tax or devaluation on the
intrinsic value of every dollar in circulation, is demonstrated
in the 13 year chart of MZM:

MZM chart


The Fed's ongoing interventions are reflected in the 13 year
chart of its open market operations, also very inflationary.
Note the scale on these charts, as they reflect multiple hundred
percentage point increases.


Chart of overnight and term repurchase agreements (repos)


The effect of this inflation of the money supply by the Fed has
resulted in stock and bond market rallies.  The Fed has helped
this along by lowering the Federal Funds Rate to 45 year lows.


Chart of the Fed Funds Rate



Here is another effect of these operations.  As the Fed has
Lowered the cost and value of money, consumers have borrowed
increasing amounts of it:


Chart of Total Consumer Credit


Despite these inflationary measures, which the Fed characterizes
as "stimulative" to the economy, unemployment remains persistent,
and worst of all, the duration of that unemployment is
increasing:

Chart of Unemployment Rate


Most disconcerting is that the Federal Funds rate and treasury
yields, which determine the "price" of a borrowed dollar, are
arguably seeking or have found a bottom, with the ten year note
yield breaking above its 200 day moving average yesterday, and
are now ticking higher.  While the Fed has succeeded in lowering
the value of the greenback, the economy remains shaky, most so
where we live.  Congressmen Sanders and Paul harangued Chairman
Greenspan on this issue yesterday.

Chart of US Bankruptcy Filings



Once again, note the scale of these charts, as they reflect large
trends.


Chart of State and Local Surplus or Deficit



Last week, this is what I said:

"Lastly, the selling in treasuries since the Fed's last quarter-
point rate cut has caused a spike in yields. In light of the
rising number of bankruptcies during the past year and the 45
year low federal funds rate, I believe that the single greatest
current danger to the economy is higher interest rates.  Given
the Fed's strong words about its intention to keep rates down, I
do not expect the selloff in treasuries to go much further. "

In fact, we saw just the opposite yesterday, as Chairman
Greenspan told Congress that, in his opinion, the economy was
showing signs of imminent recovery and that the Fed was not
planning on aggressive purchasing treasury bonds.  This sparked a
selloff in bonds, driving yields up nearly 25 basis points.  It
was news the last time the Fed lowered the Fed Funds rate by that
amount.  The statement that the Fed has been "pushing on a
string" once again came to mind.  With the 12-month change in the
Consumer Price Index at 2.1%, the current 3-month T-bill rate of
0.9% is -1.2% in real terms.   Judging from this, the Fed is
pushing very, very hard on that string, to the detriment of
savers who must put their money at risk just to keep up with
price inflation.

In corporate news, AMR reported an improved Q2 net loss of $75
million, equal to 47 cents per share, compared with Q2 2002's
loss of $495 million or $3.19 per share.  Excluding special
items, including a $358 million cash payment from the
Transportation Security Administration, Q2's loss was $2.26 per
share.  The stock gained nearly 10% on the news.

The House Capital Markets Subcommittee Richard Baker, R-La.,
cancelled a hearing scheduled for Thursday on regulatory reform
of Freddie Mac (FRE) and Fannie Mae (FNM), citing an alleged lack
of cooperation on the part of the companies.  Baker said, "Their
lack of cooperation is unfortunate and raises questions about
their seriousness. I may have no choice but to consider extending
a different form of invitation."  Sounds like possible subpoenas to
me.

After the bell, AMD reported a smaller than expected loss, losing
40 cents per share vs. -.54 estimated and estimating next
quarter's sales to increase by an unspecified amount.  AAPL beat
by 2 cents, coming in at .05 per share, but announcing Q3 profits
lower by 41 percent.  It expects a "slight increase" in Q4
profits and sales notwithstanding.  IBM met estimates of .98 per
share, up 10% y-o-y on acquisitions and cost-cutting with gains
from foreign exchange, the stock trading  down over 1$ as of this
writing.  QLGC met estimates as well at .33 per share EPS, with
net revenues for Q1 up 28% over Q1 2002.  CDWC missed by a penny
at 51 cents per share.

COF beat by 13 cents at 1.23 cents, and estimated EPS of no less
than $4.55 for 2003. ALL announced a 70 percent increase in
profit in Q2 2003, posting net income of 84 cents per share
vs. estimates of .76.  ET met estimates of .14 per share, its
profit falling this quarter due to restructuring and other
charges.

We have the following economic data due tomorrow:

              Report                     Briefing  Market   Prior
                                         Expects   Expects
Jul 17 8:30 AM Building Permits Jun -    1.850M    1.790M  1.803M
Jul 17 8:30 AM Housing Starts Jun -      1.830M    1.750M  1.732M
Jul 17 8:30 AM Initial Claims 07/12 -      425K      425K    439K
Jul 17 12:00 PM Philadelphia Fed Jul -     7.0       7.0     4.0


For tomorrow, traders remain acutely aware of options expiration
Friday almost upon us, and the ongoing earnings season.  The
unpredictable chop that characterized today's session is on the
menu for tomorrow.  I continue to expect the market to be more
sensitive than usual to the unemployment data, particularly after
the heightened emphasis placed on that issue by members of
Congress yesterday and of the Senate today in their Q&A session
with Mr. Greenspan.  That data is due tomorrow before the opening
bell, and will likely set the tone for the open.  All things
being equal, I expect more downside ahead, but we'll have to be
content to trade whatever the market gives us.




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

NXTL    Nextel Communications      20.03     +0.65
GD      General Dynamics           77.49     +3.49
S       Sears Roebuck              38.20     +3.22
RDN     Radian Group               44.05     +1.31
PVN     Providian Financial        10.88     +0.93
CCRN    Cross Country Healthcare   15.40     +0.54

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

BEAS    BEA Systems                13.24     +1.16
AMR     AMR Corp                   11.66     +1.10
PWN     Cash America Intl          18.00     +1.01
CHIC    Charlotte Russell Holdings 12.85     +1.26
BNT     Bentley Pharmaceutical     14.77     +1.29
EQIX    Equinix Inc                12.81     +2.28

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

INTC    Intel Inc                  25.31     +1.21
SYK     Stryker Corp               73.60     +2.60
GENZ    Genzyme Corp               47.54     +2.08
TCB     TCF Financial              43.98     +1.94
RL      Polo Ralph Lauren          28.33     +1.75
CYN     City National Corp         48.68     +3.68
DVA     Davita Inc                 28.35     +1.03

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

KO      Coca-Cola Co               42.91     -1.08
STJ     Saint Jude Medical         51.16     -4.14
CFC     CountryWide Financial      66.60     -1.31
SSP     E.W. Scripps Co            83.01     -1.59
MME     Mid-Atlantic Medical       54.00     -3.94
HOV     Hovnanian Enterprises      54.25     -2.14

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

BER     W.R. Berkley Corp          50.23     -2.01
FNIS    Fidelity Natl Info         25.06     -1.17
JPM     J.P.Morgan                 36.25     -1.04
HNT     HealthNet Inc              33.49     -1.16
EDMC    Education Mgmt Co          55.64     -0.56



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Do not duplicate or redistribute in any form
PremierInvestor.net Newsletter                Wednesday 07-16-2003
                                                    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
=================================================================

Tech Stocks
  Bullish Play Updates:  BRCM, SNPS

Active Trader (Non-tech)
  New Bearish Plays:     HOV
  Bullish Play Updates:  BGP, COH, GTI
  Bearish Play Updates:  BMS

High Risk/Reward
  Bullish Play Updates:  EELN, SIRI
  Closed Bullish Plays:  SIGM


==================================================================
Net Bulls (NB) Tech Stock section
==================================================================

============
PLAY UPDATES
============

  --------------------
  Bullish Play Updates
  --------------------


Broadcom Corp. - BRCM - close: 27.34 change: -0.49 stop: 26.50

The Semiconductor index (SOX.X) failed in its attempt at a third
consecutive close over $400, and this was in spite of the well-
received earnings report from INTC last night.  Could it be that
this sector is running out of steam?  Our BRCM play certainly
didn't impress us on Wednesday, as it fell below $27 for the
first time since breaking out last Monday.  The 20-dma ($26.70)
managed to lend support early in the day though, and BRCM
gradually clawed its way back over $27 by the close, but still
lost 1.76%.  The rebound today came at a critical level, as it is
where the 20-dma is attempting to cross up through the descending
trendline the stock broke out above last Monday.  A break and
close below those two measures of support would send a strong
signal that last week's breakout has failed and the stock is
headed back to consolidate in the $24-26 area in preparation for
either a real breakdown or a renewed assault on the $30
resistance level.  Aggressive traders can consider new positions
on a successful rebound from the $27 area, but those with a more
conservative approach will want to wait for a decisive move back
over $28.50, in conjunction with the SOX pushing to new highs
before playing.  Note that the company is set to release earnings
next Tuesday, so time is growing short.

Picked on July 2nd at    $27.16
Change since picked       +0.18
Earnings Date           07/22/03 (confirmed)
Average Daily Volume =  13.7 mln




---

Synopsis, Inc. - SNPS - close: 63.61 change: -2.30 stop: 63.20

Well, that wasn't pretty!  Just when it looked like shares of
SNPS might finally break free of resistance near $66, along came
the bears to slice 3.48% off the stock on Wednesday.  Daily
oscillators turned down across the board on the sharp drop and it
appears the 7-week uptrend may be in danger.  Today's intraday
low of $63.34 was only 14-cents above our stop and the end-of-day
bounce was far from convincing.  Until SNPS can show renewed
strength, we don't even want to consider trying to buy this dip.
The stock showed a lot of relative weakness today and there was
no news to which we can attribute that weakness.  When we can't
determine the reason for a move in our stock, the prudent course
of action is to get defensive.  Keep those stops in place and
then hope for a rebound tomorrow.  Should that rebound appear, we
would recommend exiting the play if the rebound begins to falter
below $65.

Picked on June 25th at   $63.59
Change since picked       +0.02
Earnings Date          08/20/03 (unconfirmed)
Average Daily Volume = 1.51 mln







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

=========
NEW PLAYS
=========

  -----------------
  New Bearish Plays
  -----------------

Hovnanian Ent. - HOV - close: 54.25 change: -2.14 stop: 59.25

Company Description:
Hovnanian Enterprises constructs and markets single-family
detached homes and attached condominium apartments and townhouses
in more than 196 new home communities in New Jersey,
Pennsylvania, New York, Maryland, North Carolina, Texas and
California.  The company offers a wide variety of homes that are
designed to appeal to the full range of buyers, from first-time
to luxury buyers.  Additionally, HOV provides financial services,
including mortgage banking and title services to the homebuilding
operations customers.  The company does not retain or service the
mortgages it originates, but rather sells them and the related
servicing rights to investors.

Why we like it:
We've run this drill so many times, you probably know the script
by heart.  The housing boom of the past couple years has been
largely fueled by continued falling rates, but that dynamic is
changing and not in favor of the bulls.  Despite the Fed's
promises to not raise rates, bonds have come under heavy selling
pressure recently and that means yields are rising.  In just one
short month, the yield on the benchmark 10-year Note has jumped
from below 3.1% to today's intraday high of nearly 4.1%.  That's
a huge move for such a short period of time and it will likely
put a major crimp in a continued low interest rate environment.
Rising rates are likely to slow down both home purchases and
refinancing activity and investors seem to be getting that
message loud and clear this week, with the $DJUSHB index falling
sharply yesterday and just barely holding onto support near $430
today.  If the index loses the 50-dma on a closing basis, then
bears are likely to get more aggressive and will probably be
targeting a break of $400 for a retest of the $395 breakout level
from May.

Out of the universe of Housing stocks, HOV caught our attention
for a couple of reasons.  First of all, it is showing weakness
relative to other players in the space and the $DJUSHB, breaking
below major support today just over $55 and falling into the
late-May gap.  In the process, the stock broke below its 50-dma
($56.45), one of the first stocks in the sector to break that
important measure of support.  With the stock falling into its
gap today, a continued drop to the bottom of the gap near $52
seems quite likely.  The other thing that appeals to us about
this play is that the company doesn't release earnings until the
end of August.  That means we have a decent amount of time for
this one to play out without having such external influences to
deal with.  The biggest problem with this play is the volatility
that has become normal in the sector.  Despite our expectations
for continued weakness, we have to factor in the very real
possibility of a sharp rebound after the past two days slide.
The situation seems to be different this time around with the
sharp rise in Treasury yields, but we need to prepare for that
volatility just the same.  So we're starting out with a wider
stop than we'd prefer at $59.25, as that is just above the
descending trendline from the June highs.  One possible entry
point would be to target a failed rebound near the 50-dma, while
an aborted rally below the $58 level would provide a better, if
more aggressive entry.  Traders looking to capitalize on
continued weakness need to wait for a drop under $53.50 before
chasing the stock lower.  While we're expecting to find minor
support near $52, our target for HOV will be a retest of the $46-
47 support area from the middle of May.

Annotated Chart of HOV:


Picked on July 9th at    $54.25
Change since picked       +0.00
Earnings Date           08/27/03 (unconfirmed)
Average Daily Volume =    936 K





============
PLAY UPDATES
============

  --------------------
  Bullish Play Updates
  --------------------


Borders Group - BGP - close: 18.45 change: -0.08 stop: 17.95*new*

Our BGP play is looking a bit toppy, but still hasn't shown any
definite signs of weakness.  We'd sure like to know if the bulls
are going to be able to crack resistance (currently $18.72) or if
the uptrend has run its course.  A break above resistance should
carry to the $19.75-20.00 area, while a break of support ($18.00)
will likely have the stock vulnerable back to the 50-dma at
$17.06.  In an effort to minimize risk, while at the same time
remaining in the play to benefit from a renewed bullish push,
we've raised our stop to $17.95, just below last Thursday's
intraday low.  It has been encouraging to see lighter volume
during this recent consolidation and that gives a hint that the
bulls aren't out of gas just yet.  Aggressive traders can still
consider entries on a successful rebound from above $18, but must
be willing to adhere to a rigid stop in case that support level
fails.

Picked on June 29th at   $17.54
Change since picked       +0.91
Earnings Date           08/19/03 (unconfirmed)
Average Daily Volume =    493 K



---

Coach Inc. - COH - close: 54.09 change: -0.86 stop: 51.99

Three days of minor profit taking in the markets have left shares
of COH consolidating between $56 and $54.  The retail sector
edged out a small gain while most broad markets sectors ended
slightly negative.  We're feeling okay on COH at the moment but
from the looks of some of its oscillators one might think it has
plans to do a bit more declining.  Should that occur, watch for a
bounce at the $52.00 level.  Our stop would be rather tight at
51.99 but we're trying to keep our risks to a manageable level.
In truth a nice bounce at $50.00 near its 50-dma would be
tempting.  We have about six market days left before COH
announces earnings and we don't plan on holding over the report.
If that's too brief a time period for your trading style it may
be better to sit this one out.

Picked on July 13 at $55.33
Change since picked:  -1.24
Earnings Date       7/29/03 (unconfirmed)
Average Daily Volume:   966 K



---

Graftech - GTI - close: 6.37 change: -0.23 stop: 5.99 *new*

Shares of GTI were looking so great midday on Tuesday, out
performing the markets and hitting new highs not seen in months.
Unfortunately, GTI gave back most of those gains and the profit
taking continued into today's session.  We're raising our stop
loss to $5.99 since we'd rather not be long the stock should
support at $6.00 break.  Thankfully, last week shares bounced
twice at the $6.05 level.  Cautious traders willing to really
reduce risk might consider putting their stops below the 10-dma
currently at $6.27 but if the markets continued to slide tomorrow
we'd bet on being stopped out using this tight a stop.  Remember,
earnings are coming up soon (July 24th) for GTI and we don't plan
on holding over.  If you're not comfortable with the time frame,
you should consider standing aside.

Picked on  July 6 at  $6.06
Change since picked:  +0.31
Earnings Date:     07/24/03 (confirmed)
Average Daily Volume:  391 thousand




  --------------------
  Bearish Play Updates
  --------------------

Bemis Company - BMS - close: 43.25 change: +0.02 stop: 45.10*new*

Now that's a persistent downtrend!  Since we started coverage
last week, shares of BMS have lost ground each day, riding the
lower Bollinger band down towards support.  As happy as we are
with the play so far, we're growing concerned about a possible
oversold rebound.  Conservative traders may be well-served by
harvesting gains near current levels and looking for a failed
rebound to provide re-entry at a higher level.  Part of our
apprehension comes from the fact that despite the broad market
weakness, BMS finally managed to post a fractional (albeit tiny)
gain for the day.  Overhead resistance is now found at $44.25 and
then again at $44.90-45.00.  A rebound and subsequent rollover
from either of these levels looks good for new entries, but with
the stock looking extended to the downside right now, we don't
want to consider entries on further weakness from here.  Note
that our stop has been lowered to $45.10, as a move above that
level would hint that this downtrend has likely run its course.
Take note of the company's expected earnings release next
Wednesday, as that defines the remaining duration of the play.

Picked on July 9th at    $45.18
Change since picked       -1.93
Earnings Date          07/23/03 (unconfirmed)
Average Daily Volume =    257 K





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

============
PLAY UPDATES
============

  --------------------
  Bullish Play Updates
  --------------------

E-LOAN - EELN - close: 6.44 change: -0.31 stop: 5.99 *new*

Shares of EELN are not quite as directly affected as the
homebuilders but rising interest and mortgage rates are expected
to slow the home refi and new home loan business.  So far shares
have retreated more than 10 percent from their intraday high on
Tuesday and that's not counting the intraday low today (the range
there is 15%).  It's possible that's enough to satisfy the short-
term profit taking that appears to be hitting the markets.
However, new positions may only want to be considered should EELN
reclaim the $6.50 level.  Meanwhile, cautious traders might want
to bump their stop loss to today's low of $6.15.  We're going to
raise our official stop to $5.99 and stay under what should be
psychological support of $6.00.  On Sunday we suggested a bounce
from $6.25 as a new entry, well we got it.  Now we just need to
see some follow through.

Picked on  July 9 at $6.46
Change since picked: -0.02
Earnings Date:    07/24/03 (confirmed)
Average Daily Volume:  2.7 million



--


Sirius Satellite - SIRI - close: 1.74 change: -0.037 stop: 1.60

Aggressive traders may soon be getting another chance to buy
shares of SIRI closer to support.  The stock has started to roll
over just slightly while the markets take a breather and decide
what direction to head next.  If your market bias is heavily
negative then it may be better to sit out and not speculate on
such an aggressive play like this one.  We looked over shares of
XMSR, SIRI's competitor and we're not seeing much leadership
there either.  If you're looking to reduce risk one might
consider tightening up their stop loss to $1.70 (or 1.69) but the
current floor support is $1.60.  Given the overall market
indecision we'd prefer to see a nice bounce before evaluating new
positions.

REMEMBER, this is an aggressive, high-risk play!

Picked on July 02 at $ 1.78
Change since picked:  -0.04
Earnings Date      00/00/00 (unconfirmed)
Average Daily Volume:    71  million





============
CLOSED PLAYS
============

  --------------------
  Closed Bullish Plays
  --------------------

Sigma Designs - SIGM - close: 12.27 chg: -0.25 stop: 11.44

Better safe than sorry is our motto for today.  Shares of SIGM
have done an admirable job and move from our entry point near $11
towards the old highs just under $13.00.  However, now some of
the oscillators are starting to rollover and the share price is
starting to churn sideways.  We'd rather not give up our current
profits.  Those traders willing to stick out it but wanting to
reduce their risk might want to consider upping their stop loss
to just under $12.00.

Picked on June 27 at 11.02
Change since picked: +1.25
Earnings Date      5/27/03 (confirmed)
Average Daily Volume:  600 thousand






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