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 ================================================================= To stop receiving this PremierInvestor.net Newsletter, send email to Contact Support ================================================================= DISCLAIMER ================================================================= This newsletter is a publication dedicated to the education of stock traders. The newsletter is an information service only. The information provided herein is not to be construed as an offer to buy or sell securities of any kind. The newsletter picks are not to be considered a recommendation of any stock but an information resource to aid the investor in making an informed decision regarding trading in stocks. It is possible at this or some subsequent date, the editors and staff of PremierInvestor.net may own, buy or sell securities presented. All investors should consult a qualified professional before trading in any security. The information provided has been obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. PremierInvestor.net staff makes every effort to provide timely information to its subscribers but cannot guarantee specific delivery times due to factors beyond our control. Please read our disclaimer at: http://www.optioninvestor.com/page/oin/aboutus/disclaimer.html ***************************************************************** ADVERTISING INFORMATION For more information on advertising in PremierInvestor.net Newsletter, or any Premier Investor Network newsletter please contact Contact Support. ***************************************************************** Copyright (c) 2003 PremierInvestor.net. and The Premier Investor Network. 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 ================================================================= To stop receiving this PremierInvestor.net Newsletter, send email to Contact Support ================================================================= DISCLAIMER ================================================================= This newsletter is a publication dedicated to the education of stock traders. The newsletter is an information service only. The information provided herein is not to be construed as an offer to buy or sell securities of any kind. The newsletter picks are not to be considered a recommendation of any stock but an information resource to aid the investor in making an informed decision regarding trading in stocks. It is possible at this or some subsequent date, the editors and staff of PremierInvestor.net may own, buy or sell securities presented. All investors should consult a qualified professional before trading in any security. The information provided has been obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. PremierInvestor.net staff makes every effort to provide timely information to its subscribers but cannot guarantee specific delivery times due to factors beyond our control. Please read our disclaimer at: http://www.optioninvestor.com/page/oin/aboutus/disclaimer.html ***************************************************************** ADVERTISING INFORMATION For more information on advertising in PremierInvestor.net Newsletter, or any Premier Investor Network newsletter please contact Contact Support. ***************************************************************** Copyright (c) 2003 PremierInvestor.net. and The Premier Investor Network. Do not duplicate or redistribute in any form.
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