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Daily Newsletter, Tuesday, 07/29/2003

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PremierInvestor.net Newsletter                 Tuesday 07-29-2003
                                                   section 1 of 2
Copyright  2003, All rights reserved.
Redistribution in any form is strictly prohibited.

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

In section one:

Market Wrap:      Saddam Put
Watch List:       VAR, BOL, MDT, KMB and more!
Market Sentiment: Intermarket signals

=================================================================
MARKET WRAP  (view in courier font for table alignment)
=================================================================
      07-29-2003           High     Low     Volume Advance/Decline
DJIA     9204.46 - 62.10  9289.69  9168.26 1.71 bln   1218/2001
NASDAQ   1731.37 -  4.00  1744.60  1713.21 1.69 bln   1564/1630
S&P 100   497.85 -  3.64   502.92   495.41   Totals   2782/3631
S&P 500   989.28 -  7.24   998.64   984.15
W5000    9542.12 - 54.30  9618.71  9489.23
RUS 2000  473.60 -  0.23   476.04   469.70
DJ TRANS 2618.37 -  4.40  2635.90  2609.36
VIX        20.23 +  0.30    21.07    19.96
VXN        30.16 -  0.24    31.82    29.81
Total Volume 3,683M
Total UpVol  1,312M
Total DnVol  2,309M
52wk Highs  456
52wk Lows    67
TRIN       1.31
NAZTRIN    1.24
PUT/CALL   1.01
=================================================================

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

Saddam Put

The Saddam put overruled the Consumer Confidence short this
morning and continued to rule all day. The disaster in the
economic numbers was ignored once when rumors of a Saddam
capture filtered through the markets. I am going to check
EBAY tonight and see if I can find a used "rumor mill" of
my own.

Dow Chart


Nasdaq Chart


Despite the improved guidance from Wal-Mart this week the Chain
Store Sales snapshot fell -0.3% following three weeks of gains.
Food, drugs and seasonal goods helped hold the line but apparel
weakened. Warmer weather, as in blistering in the southwest, has
helped power the seasonal product sales. We are rapidly entering
the back to school phase and consumers should be receiving tax
credit checks and more take home pay by now. This should help to
maintain the consumer sales for the next month. The downside is
the drop in refi applications and the drying up of the home
equity pipeline. The higher interest rates will not immediately
hit Wal-Mart shoppers but major appliances, autos and big ticket
goods could be softer soon.

The biggest shocker of the day was the dramatic drop in the
Consumer Confidence to 76.6 from 83.5. The index hit a plateau
at 83.5 for May/June and it appears the bloom is off the rose.
The rising interest rates, volatility in the market and higher
unemployment continues to drag on optimism. This was the lowest
level since March and countered expectations for a small gain.
The biggest drop was in the expectations component, which fell
-10 points to 86.4 and erased the majority of the gains from
May/June. The present situations component dropped for the third
month in a row. The current conditions component is at the
lowest level since 1994. If the Jobless Claims on Thursday and
the Nonfarm Payrolls on Friday show increases in unemployment
the confidence numbers could get ugly fast. Everyone is betting
on the post war rebound and that rebound is turning into more
tortoise than hare.

On Wednesday we will get the Fed Beige Book, Chicago Fed National
Activity Index, Mortgage Applications and the Consumer Comfort
Index. The CFNAI has been negative for nine of the last ten
months and it is expected to be negative again tomorrow. The May
Beige Book had shown some limited postwar improvement with the
main support in the housing market. Despite the pickup the
overall tone was somber and the outlook is for more of the same
this month. The Comfort Index was trending down for the past two
weeks and it will be interesting to see if the trend accelerates
or breaks in light of the Consumer Confidence. The mortgage
application index has also been trending down since the May-30th
number of 1,856 with a 1,284 last week. It is doubtful it has
improved much in a week with 30-year mortgages back at 6.0%.

Needless to say there may not be much economic excitement on
Wednesday but there is the potential for upside surprise. Since
the outlook is not exciting any negative news could be covered
by the Saddam put and we continue to trade sideways. Our enemy
is not Saddam any more but the bond market. The ten-year yield
closed at 4.4% and a 52-week high. This bond disaster is going
to continue to spiral out of control until something happens
to break the trend. The terrible Confidence number today only
slowed the selling for a few minutes before it promptly began
again in earnest. The good news is that some of the money is
finding its way into the stock market. The bad news is that the
rapidly rising interest rates could produce a death blow to the
barely conscious recovery.

The earnings parade continues and as of last night 326 S&P
companies have reported earnings. According to First Call 66%
beat estimates, 22% were inline and only 12% missed estimates.
Earnings are showing around +15% growth and slightly better than
the +14% estimates. Those would be very good numbers if they
were actually from sales. The majority of earnings gains have
been from cost cutting and not repeatable. Another significant
source of earnings surprises have been currency gains due to
the weak dollar. This is also not repeatable. With warnings
for the 3Q running 2:1 over positive guidance it is not a
positive picture.

Some of those warnings are coming from companies that touch all
of the American economy. Jones Apparel warned today that consumer
spending was very uncertain and earnings would be down for the
quarter and the year. ADP, a nationwide payroll processor,
warned that they were seeing very little improvement in the
economy. The largest furniture maker in the country, FBN, also
warned last week that they were seeing no improvement in the
economy. FedEx was cut today based on falling small package
deliveries. NVDA missed estimates and said the next quarter
will be below estimates. Positive performance came from MCD,
DD, ALA and AHC with TYC posting a profit and restating earnings
again going back to 1998.

Other negative news included a warning from the State Dept that
Al-Queda is planning more suicide hijackings of airliners before
the end of the summer. Quoting specific and credible information
from detainees and corroborated by other intelligence they said
the attacks could take the form of flights coming into the U.S.
from other countries. They suspect five person teams with weapons
hidden in things like cameras and laptops. With the anniversary
of 9/11 quickly approaching I would not doubt the threat exists.
However, the market ignored the warning due to the Saddam put.

Basically most traders believe that Saddam will be caught/killed
in the next several days. We are getting constant chatter out of
Iraq that the noose is tightening and he is running out of places
to hide. Every day more contacts are arrested, today was his
personal bodyguard and hundreds of tips are reported received
daily since Udai and Qusai were killed. Traders expect the event
to produce an instant market rally that could add +300 points
and push us over the current 9300 ceiling. With this event
expected any day there is no interest on the part of the bears
to short aggressively. Bulls are buying the dips on the hope of
quick profits on the bounce. Thus, the market has an insurance
put in the form of an expected Saddam capture. That expectation
was responsible for a vertical +100 point rebound off the Dow
bottom today when a brief rumor hit the floor that Saddam had
been killed. There was a brief bout of selling when the news
turned out to be a new Saddam tape calling his sons martyrs
instead but the selling was brief. It showed the put was alive
and well and had not expired.

The trend was broken today. For the first time in 10 weeks the
Nasdaq closed negative on a Tuesday. It was not a major loss,
only -4 points. The Dow has closed negative for two consecutive
days. That is about the only negative points I can make. The
market action is very bullish and the Dow held 9200 with fierce
determination at the close. Same with Nasdaq 1725. They refuse
to give up the gains from the last couple weeks and the Dow
has now traded within arms length of 8300 each of the last four
days. It is building a very impressive bullish wedge at 9300
and were it not for the Confidence today we could have easily
broken out. I say easily but there is strong resistance at that
level which must first be overcome. The more important levels
are S&P 1000 and 981. This is the broad market support and
resistance which must be overcome before the market can make
any major moves. 981 is the 50 DMA on the S&P.

S&P Chart


With the Saddam put in place any negative economic news on
Wednesday is likely to have limited impact. That may not be
true on Thr/Fri when the economic reports are critical and
plentiful. We will have the GDP, ECI, PMI, Help Wanted Index
and Jobless Claims on Thursday. Friday has Nonfarm Payrolls,
Michigan Sentiment, ISM, Personal Income/Spending and
Construction Spending. It is going to take a lot more specific
and credible rumors to protect the bulls if those reports turn
negative like Consumer Confidence did today. The markets are
poised to move big and the only question is which way. The
trading range is slowly narrowing and the breakout in either
direction could be sharp and quick. Keep those stops in place
regardless of the direction you are expecting.

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

Varian Medical Systems Inc. - VAR - close: 62.30 change: +1.36

WHAT TO WATCH: Looking for a relentless bullish trend?  Then VAR
might be just what you're looking for, as the stock has been
persistently chugging up the chart.  A pullback to the $61 area
might provide an early (and aggressive entry), but the best
approach would be to wait for the breakout above $63 before
playing.




---

Bausch & Lomb - BOL - close: 40.96 change: +1.09

WHAT TO WATCH: Can you say overdone?  We knew that you could!
Shares of BOL exploded upward on Tuesday in response to the
company's announced offer to sell $120 million in convertible
notes.  Looking at the chart, BOL broke to a new 52-week high on
the move, but looks vulnerable to a near-term pullback to confirm
the $39.50-40.00 area as new support.  Use a rebound from that
area to enter a bullish position for a run up towards the 2002
highs in the $44-45 area.




---

Medtronic - MDT - close: 51.12 change: +0.45

WHAT TO WATCH: MDT is one of those stocks that is incredibly
consistent, working gradually higher for months on end before
pulling back to a higher low and continuing the process.  The
stock just completed that latest pullback in early July and over
the past week has rallied right through major resistance at $50.
A pullback to that breakout level would set up a solid entry for
what looks like another slow and steady upward leg.  The only
near-term obstacle is the December 2001 relative high near
$51.70, and then MDT appears to have the $54 resistance level in
sight.




---

Kimberly Clark Corp. - KMB - close: 48.77 change: -0.19

WHAT TO WATCH: It won't set any land-speed records, but KMB
definitely seems to be breaking down.  Yesterday's tentative
break of the $49 support level was confirmed today with a
violation of the 200-dma and it looks like only a matter of time
before the stock back to major support in the $45-46 area.  With
major resistance at $50, entries on a failed rebound attempt will
provide the best risk to reward ratio.




---

Mercury Interactive - MERQ - close: 40.22 change: -0.94

WHAT TO WATCH: Uh-oh!  Just last week, we were looking at shares
of MERQ with a bullish tinge to our glasses, but the price action
this week is forcing us to re-think that stance.  The rebound we
were looking for never materialized and today's close below the
50-dma (the first since the middle of April) seems significant.
Should $40 support give way, the stock appears vulnerable to $38
in short order, with a drop to the $35-36 area a very real
possibility.





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

OMC $74.28 - It may be a bit too soon to play OMC after the
company's solid earnings report this morning, but the chart
certainly looks tempting.  It has been consolidating between $70-
75 for the past 6 weeks and if the bulls can manage a breakout
over $75 (preferably the 6/18 intraday high of $76.43), it could
really gain some upward traction, possibly pushing as high as
$85.

BDK $40.50 - Apparently last week's earnings release did not
provide the good news investors were looking for, as shares of
BDK are getting hit hard, losing more than 2% again today and
breaking both $41 support and the 200-dma.  Bearish continuation
will have the stock vulnerable to $38 at a minimum and most
likely into the $35-36 area.

UTX $76.74 - Shares of UTX have been creeping up on major
resistance over the past couple weeks after cresting the $75
level.  The 2002 high was $77.75 and if the stock can clear that
level, it should have the bulls targeting $80 and then possibly
$85.  Note how the 10-dma has been providing support -- look for
that pattern to continue, and pullbacks near this moving average
can be used for aggressive entry ahead of the expected breakout.




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

Intermarket signals
Jonathan Levinson
 
We've been following the "bottomy" volatility indices and "toppy"
bullish percents for weeks.  We can add intermarket analysis to
help supplement the picture.
 
Treasury bonds sold off today, reaching lows not seen since mid-
2002, and while gold and silver corrected today, they are in
strong recent up trends and breaking out in bullish chart
patterns.  Through it all, equities have remained firm at current
levels, and fear remains low.
 
As the spring rally in treasuries progressed, I recall hearing
talk that falling yields were bullish for stocks, because the
growth and yield prospects of stocks increased relative to
bonds.  I've been hearing none of this as bonds have continued to
sell off sharply for over 1 month, and equities have managed to
hold relatively firm despite strongly rising yields.
 
Throughout the year, many have speculated that money flows from
stocks to bonds and back again, but this hasn't been supported by
the trend.  In fact, equities and bonds rallied together all
through the spring.  With treasuries correcting sharply and
yields printing year highs day after day, equity bulls have
reason to be concerned.
 
The action in the precious metals market is also significant, as
gold and silver tend to be viewed as a "put" on the financial
system, to quote an author whose name escapes me. 
 
While neither of these intermarket relationships will generate
specific buy or sell signal on its own, in combination with the
low VIX, VXN and QQV, high bullish precents and overall bullish
market sentiment, bullish traders should be exercising caution.


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

Market Averages

DJIA ($INDU)

52-week High:  9353
52-week Low :  7197
Current     :  9204

Moving Averages:
(Simple)

 10-dma: 9165
 50-dma: 9037
200-dma: 8509

S&P 500 ($SPX)

52-week High: 1015
52-week Low :  768
Current     :  989

Moving Averages:
(Simple)

 10-dma:  989
 50-dma:  881
200-dma:  908

Nasdaq-100 ($NDX)

52-week High: 1316
52-week Low :  795
Current     : 1275

Moving Averages:
(Simple)

 10-dma: 1266
 50-dma: 1224
200-dma: 1083


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

Despite the markets weakness in Tuesday's session the volatility
indices barely budged and remained near yearly lows.  Essentially,
they are telling observers that investors are still too bullish.

CBOE Market Volatility Index (VIX) = 20.23 +0.30
Nasdaq-100 Volatility Index  (VXN) = 30.16 -0.24


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

          Put/Call Ratio  Call Volume   Put Volume

Total          1.01        494,015       497,136
Equity Only    0.92        390,495       358,803
OEX            0.75         26,017        19,428
QQQ            6.93         24,971       173,067


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

Bullish Percent Data

           Current   Change   Status
NYSE          69.7    + 0     Bull Confirmed
NASDAQ-100    75.0    + 0     Bull Confirmed
Dow Indust.   86.6    + 7     Bull Confirmed
S&P 500       77.2    + 2     Bull Correction
S&P 100       84.0    + 2     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  1.04
10-Day Arms Index  0.96
21-Day Arms Index  1.02
55-Day Arms Index  1.10


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    1150      1505
Decliners    1688      1526

New Highs     109       146
New Lows       32         6

Up Volume    542M      736M
Down Vol.   1107M      928M

Total Vol.  1676M     1685M

M = millions


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

Commitments Of Traders Report: 07/22/03

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

Not much new for us to decipher in the full contracts of the
S&P 500 futures.  Commercials remain slightly next short and
the small traders remains significantly net long, expecting
the markets to rise.


Commercials   Long      Short      Net     % Of OI
07/01/03      415,976   453,005   (37,029)   (4.3%)
07/08/03      415,053   453,720   (38,667)   (4.5%)
07/15/03      414,020   453,033   (39,013)   (4.5%)
07/22/03      411,206   442,131   (30,925)   (3.6%)

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
07/01/03      150,232    75,937    74,295    32.8%
07/08/03      152,239    74,749    77,490    34.2%
07/15/03      148,716    70,279    78,437    35.8%
07/22/03      155,891    76,466    79,425    34.2%

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

In contrast to the full size S&P contracts above, the E-minis
is showing a drastic change.  Commercial traders have been
moving from net short to net long the last four weeks and
the longs have finally out numbered the shorts.  Right on
cue, the small traders have turned the most bearish they
have been in months.


Commercials   Long      Short      Net     % Of OI
07/01/03      175,893   216,993    (41,100)  (10.5%)
07/08/03      192,815   224,124    (31,309)  ( 7.5%)
07/15/03      214,274   218,765    ( 4,491)  ( 1.0%)
07/22/03      249,392   249,386          6     0.0%

Most bearish reading of the year: (354,835)  - 06/17/03
Most bullish reading of the year:        6   - 07/22/03

Small Traders Long      Short      Net     % of OI
07/01/03       57,639    67,449    (9,810)   (7.8%)
07/08/03       56,394    72,090   (15,696)  (12.2%)
07/15/03       45,372    54,654    (9,282)   (9.3%)
07/22/03       45,945    76,071   (30,126)  (24.7%)

Most bearish reading of the year: (30,126)  - 07/22/03
Most bullish reading of the year: 449,310   - 06/10/03


NASDAQ-100

There is little change in the NDX futures by the commercial
traders or small traders.


Commercials   Long      Short      Net     % of OI
07/01/03       28,662     48,265   (19,603) (25.5%)
07/08/03       30,489     48,311   (17,822) (22.6%)
07/15/03       28,467     49,154   (20,687) (26.7%)
07/22/03       32,502     48,139   (15,637) (19.4%)

Most bearish reading of the year: (20,687)  - 07/15/03
Most bullish reading of the year:   9,068   - 06/11/02

Small Traders  Long     Short      Net     % of OI
07/01/03       26,777     8,498    18,279    51.8%
07/08/03       26,136     9,035    17,101    48.6%
07/15/03       26,489     8,004    18,485    53.6%
07/22/03       27,321     8,844    18,477    51.1%

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

Commercial traders are becoming even more bullish on the
Industrials while small traders are slowing increasing
their net short positions.


Commercials   Long      Short      Net     % of OI
07/01/03       20,504    11,871    8,633      26.7%
07/08/03       20,752    11,860    8,892      27.3%
07/15/03       21,607     7,855   13,752      46.7%
07/22/03       22,198     8,176   14,022      46.2%

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
07/01/03        5,799     6,822   (1,023)   ( 8.1%)
07/08/03        5,005     8,093   (3,088)   (23.6%)
07/15/03        5,475     9,717   (4,242)   (27.9%)
07/22/03        6,110    10,898   (4,788)   (28.2%)

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
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Copyright ) 2003  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.
PremierInvestor.net Newsletter                 Tuesday 07-29-2003
                                                   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
=================================================================

Play of the Day:  Confirmed Breakout


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)
===============

Henry Schein - HSIC - cls: 58.69  chng: +1.08 stop: 55.00*new*

Company Description:
Henry Schein is the largest provider of healthcare products and
services to office-based practitioners in the combined North
American and European markets.  Recognized for its excellent
customer service and low prices, Henry Schein serves more than
400,000 customers worldwide, including dental practices and
laboratories, physician practices and veterinary clinics, as well
as government and other institutions.  (Source:  Company Press
Release.)

Why we like it:
Party all day.  That's what happened with HSIC on Friday.  HSIC
didn't wait for the afternoon rally to begin and then decide to
participate.  HSIC rallied all day, from beginning to last.  Its
more than three percent climb outperformed the RXP, the Morgan
Stanley Health Care Products Index.  Although HSIC is not a
component of the RXP, the comparison appears appropriate.

While we wished HSIC had rallied with more than 70 percent of its
usual average daily volume, we can't ask for everything and we got
nearly everything else.  HSIC tested and then sprang up from its
21-dma, marked in blue on the chart.  It also tested and sprang up
from the midline support on the regression channel that has been
containing its prices since February.  Since May, that midline has
supported HSIC on most pullbacks, with nary a touch of the lower
supporting trendline since April.  Best of all, HSIC achieved an
all-time closing high.

One caution exists when studying both the P&F and bar charts, as
some resistance shows up just above $57.00 on both.  With an all-
time closing high under its belt, we don't believe that level will
pose a problem, but worried traders could enter after HSIC
surpasses its all-time intraday high of 57.73.

Everything seems in line for this play to work well, but it's got
to work quickly.  HSIC reports Tuesday, August 5, so we'll be
closing the play at the end of next week.  Traders can enter at
current levels or on another pullback and bounce from the 21-dma.

Why This is our Play of the Day
It is always pleasant when a bullish play completely ignores the
gyrations in the broad market and just goes up.  That's certainly
what has transpired with our HSIC play this week, as the stock
pushed above $57.50 for a new 52-week high on Monday and followed
that up with a breakout over $58 today, setting a new all-time
high.  Over the weekend, we lamented that we wanted to see the
stock exhibit stronger buying volume and that piece of the puzzle
finally materialized on Tuesday with 650K shares trading hands,
well in excess of the ADV.  So what now?  HSIC has earnings on the
docket for August 5th, so that means one more week until we'll
have to close this one out.  But the way things are going, it
certainly looks like higher levels are in store.  The next obvious
target is the round number resistance at $60 and conservative
traders may want to consider harvesting partial gains there.
Should we get a pullback first, new entries can be considered on a
rebound from the $56.50-57.00 area, the site of former resistance.
We're raising our stop to $55.00 tonight, which is just below the
strongly supportive 20-dma ($55.33).

Annotated Chart of HSIC:


Picked on July 27th at  $56.75
Change since picked:     +1.94
Earnings Date:        08/05/03 (confirmed)
Average Daily Volume:   402 K



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

AET     Aetna Inc                  68.49     +1.03
MGA     Magna Intl                 75.07     +0.72
HMA     Health Mgmt Assoc.         20.61     +1.02
HNT     Healthnet Inc              35.61     +0.83
CBSH    Commerce Bancshares        42.46     +0.60
UHS     Universal Health Svs       51.74     +2.64

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

KEA     Keane Inc                  14.90     +1.64
AAI     Airtran Hldg               12.85     +1.17
IPXL    Impax Labs                 13.39     +1.39
WNC     Wabash National            17.00     +1.64
SANG    Sangstat Medical           16.29     +1.96
FLSH    M-Systems Flash Disk       14.98     +1.03

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

SYK     Stryker Corp               78.35     +2.87
HSIC    Henry Schein Inc           58.69     +1.08
BOL     Bausch & Lomb Inc          40.96     +1.09
TRI     Triad Hospitals            30.45     +1.92
CYH     Community Health Systems   21.56     +1.76
NTES    Netease.com                50.76     +6.35
SEM     Select Medical             28.60     +2.20

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

MRK     Merck & Co                 55.37     -1.29
BVF     Biovail Corp               38.50     -4.04
NFS     Nationwide Fincl Svs       30.33     -3.17
DOX     Amdocs Ltd                 20.25     -1.61
JNY     Jones Apparel Group        28.96     -3.11
RCII    Rent-A-Center Inc          72.00     -6.39

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

. None ..



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