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Daily Newsletter, Monday, 08/04/2003

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PremierInvestor.net Newsletter                 Monday 08-04-2003
                                                  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:      Bonded to a Range
Play of the Day:  Continuation Pattern

===============================================================
MARKET WRAP  (view in courier font for table alignment)
===============================================================
     08-04-2003         High     Low     Volume Advance/Decline
DJIA     9186.04 + 32.07  9209.15  9048.58 1.59 bln   1143/2070
NASDAQ   1714.06 -  1.56  1723.27  1687.77 1.59 bln   1316/1868
S&P 100   495.50 +  1.86   497.06   487.33   Totals   2459/3938
S&P 500   982.82 +  2.67   985.75   966.84
RUS 2000  464.77 -  3.31   468.12   460.56
DJ TRANS 2575.04 - 20.87  2596.13  2547.47
VIX        22.65 -  0.13    24.90    22.65
VXN        32.65 +  0.17    34.30    32.01
Total Volume 3,453M
Total UpVol  1,733M
Total DnVol  1,583M
52wk Highs     246
52wk Lows      131
TRIN          0.62
PUT/CALL      0.93
===============================================================

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

Bonded to a Range
by James Brown


The range trading continues on Wall Street as the Industrials
added 32 points after overcoming a triple-digit loss earlier in
the day.  The tech-heavy NASDAQ closed in the red, albeit by a
slim margin of less than two points.  Investors seemed to ignore
the better than expected factory orders for June, which came in
+1.7 percent, better than the forecast of +1.5 percent and the
previous month's gain of just +0.4 percent.

The other big "economic" report was from the Semiconductor
Industry Association (SIA).  The SIA announced this morning that
chip sales for the second quarter rose 3.2 percent from the first
quarter and more than 10 percent from the second quarter a year
ago.  The report was positive with comments pointing to a "broad-
based" recovery on the horizon.  SIA projected worldwide sales to
increase 10.1 percent in 2003 and 16.8% in 2004.  Despite the
good news the $SOX semiconductor index rose just 0.38% and
remains below resistance at the 400 mark.

The talk of the day was all about bonds and how higher yields
would or would not impact the economy and the stock market (as if
we didn't hear enough about this subject last week).  The concern
over bond yields has impacted homebuilders and mortgage lenders
in the last several sessions and both groups bounced lightly
today as bonds rose.  The question that seems to be on everyone's
mind is "at what point do bond yields become attractive enough to
initiate an asset allocation from stocks to the perceived safety
of bonds?"  Late Friday and early Monday, the yield on the 10-
year note was above 4.5 percent.  As Jim mentioned in his Sunday
wrap that may already be enough of an incentive for more
conservative money managers to rotate capital back into bonds and
out of stocks.

Chart of the 10-year yield:


There was also plenty of talk about how August and September are
traditionally the two worst months of the year for the stock
market.  It's not hard to understand why.  We're currently in the
doldrums of summer.  Plenty of Wall Street professionals take
their vacations in August, which already exaggerates the normally
light volume during the month.  Couple this with the retail
investors' focus on their own vacation before the kids go back to
school and you can see why August has the lowest average volume
for the year.  The July earnings season is effectively over with
more than 400 of the S&P 500 already reporting and the post-
earnings slump settles in.

As one commentator said on the T.V. today, some of the bulls feel
like just holding the markets in the current trading range is a
victory.  Whether you agree with that statement or not it's hard
to argue that there is any real direction.  The Industrials
bounced off the 9050 level and some might argue it's 50-dma.  The
NASDAQ Composite bounced from the 1687 mark, which coincides with
the July 25th low.  The S&P 500 bounced strongly from the 966
level, which is relatively close to the July 1st low of 962.
However, despite the bounce in the SPX it's still below the
simple 50-dma.

Not helping the U.S. markets today were generally flat to down
European bourses and a decidedly negative Asian market place with
the NIKKEI leading the way down -158 points or -1.65%.

Chart of the Dow Jones Industrials:


Chart of the NASDAQ Composite:


Merger Mondays are back and leading off was heavy hitter General
Electric (GE).  GE has sold its insurance business to a group of
investors lead by The PMI Group (NYSE: PMI) for $1.86 billion in
cash.  According to reporters this deal reflects GE's goal to
sell off slower-growth businesses.  Meanwhile in the
semiconductor world, more specifically the graphic chips
industry, NVIDIA (NASDAQ: NVDA) agreed to buy MediaQ for $70
million.  MediaQ develops solutions to improve graphic displays
and reduce power consumption.  Rounding out the day's deals and
mergers is Genzyme (NASDAQ: GENZ) who agreed to acquire SangStat
Medical (NASDAQ:SANG) for $600 million in cash.  This amounts to
$22.50 a share for SANG and the stock soared 44 percent to $22.23
with shares of GENZ dropping more than 3 percent.  GENZ said that
the acquisition would affect earnings throughout 2004.

As we look ahead to tomorrow there are still a few earnings that
could be significant but probably not market movers.  Headlining
the earnings show tomorrow is Cisco Systems (NASDAQ:CSCO) the
router/networking giant.  Estimates are for 15-cents a share but
more importantly will be what CSCO's CEO Chambers or his
management team says about Q3 and Q4 guidance.  Also on the list
is consumables giant Gillette (NYSE:G), financial behemoth
Prudential (NYSE:PRU), and Internet conglomerate Interactive Corp
(NASDAQ: IACI).

It will also be interesting to see how the market reacts to a
record bond auction this week.  The U.S. will be selling $24
billion in three-year notes on Tuesday, some $18 billion in 5-
year notes on Wednesday, and $18 billion in 10-year bonds on
Thursday.  That's $60 billion in new treasury notes that the
market will need to absorb, which could drive the price of bonds
even lower.  That of course would drive bond yields higher and
put even more pressure on the stocks as conservative traders seek
to move to the relative safety of bonds.




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


Newmont Mining - NEM - close: 36.29 change: +0.71 stop: 34.90*new*

Company Description:
Newmont Mining Corporation is a holding company and is principally
engaged in gold mining.  As of the end of 2002, the company had
gold reserves of 86.9 million equity ounces and an aggregate land
position of approximately 63,000 square miles.  NEM has operations
in North America, South America, Australia, New Zealand,
Indonesia, Uzbekistan and Turkey.  In 2002, the company obtained
more than 69% of its equity gold production from politically and
economically stable countries, namely the United States, Canada
and Australia.

Why we like it:
It certainly wasn't an auspicious week for our gold play, as NEM
spend most of its time testing the $35 support level after
Monday's rejection from the $37 level early in the day.  It really
wasn't NEM's fault, as the stock was simply responding to the
sharp pullback in the price of gold, which tumbled nearly $8 on
Friday, coming to rest just above wedge support at $344 and the
200-dma at $342.  Given that reality, NEM actually held up very
well last week, which would seem to indicate this is just an
orderly pullback.  But the key will be those support levels for
gold and $35 for NEM.  Should gold lose support, it will likely
pull NEM back under the $35 level and then we'll be looking at a
potential test of the stock's recent breakout level near $34.
That would be the last ditch level for the bulls to defend the
stock before admitting that the breakout lacked conviction.  On
the other hand, if gold rebounds from above the 200-dma, then a
rebound from $35 could be a good entry point.  Maintain stops at
$33.75 for now.

Why This is our Play of the Day
Following its breakout over the $34 resistance level a couple
weeks ago, shares of NEM have been consolidating in what looks
like a bull flag continuation pattern between $35-37 and it was
impressive to see the stock hold up so well last week when gold
was under severe selling pressure.  Now gold appears to be
rebounding a bit, and NEM gave us another bullish sign as price
rebounded from the 10-dma (currently $35.53) on Friday and
continued that rebound today, bringing the stock up near the top
of the flag pattern.  If this is the continuation pattern that it
appears to be, then a breakout over the top of the pattern at $37
should be good to run to the $40 area.  We're setting our sights a
bit lower than that, looking for a profitable exit from the play
near $39, which lines up with significant resistance from the
first half of 1997.  Dip-buyers got their entry over the past
couple days near the $35 level and momentum traders will want to
wait for the breakout over $37 before entry.  Given the apparent
continuation pattern on the daily chart, it should be safe to
raise stops to just below the bottom of that flag, so our stop
moves up to $34.90 tonight.  If entering on a breakout, be sure to
confirm the stock's strength with a continuation of the fledgling
rebound in the price of the yellow metal, using the August futures
contract (GC03Q), currently $349.

Annotated Chart of NEM:




Picked on July 20th at    $35.28
Change since picked        +1.01
Earnings Date           10/30/03 (unconfirmed)
Average Daily Volume =  4.22 mln





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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

*****************************************************************
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Newsletter, or any Premier Investor Network newsletter please
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Copyright ) 2003  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.
PremierInvestor.net Newsletter                  Monday 08-04-2003
                                                   section 2 of 2
Copyright (c) 2003, All rights reserved.
Redistribution in any form is strictly prohibited.

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

Split Announcement:   RBKV

Closed Plays:         PLNR, PETM

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)


==================================================================
 Split Trader/ Stock Splits
==================================================================

-------------------
Split Announcements
-------------------


RBKV increases their resources with a 3-for-2 stock split

In the middle of the trading day, Resource Bankshares Corp's
(NASDAQ:RBKV) Board of Directors declared a 3-for-2 stock split of
the company's common shares.

The company's stock split will be payable on September 5th, 2003,
to shareholders on record as of August 15th.  The stock will begin
trading on a split-adjusted basis on Monday, September 8th.  This
split will increase the company's common shares from approximately
4 million to 6 million.

This is RBKV's first stock split since their 2-for-1 split in the
middle of 1998.


About the company:
Resource Bankshares Corporation (Nasdaq: RBKV - News) is the
parent holding company of Resource Bank, a regional commercial
bank with branches in Virginia Beach, Chesapeake, Newport News,
Richmond and Northern Virginia, and additional mortgage loan
offices in North Carolina, Maryland and Florida. Visit our
investor relations web site at www.resourcebankshares.com for a
detailed overview of activities, financial information, and
historical stock price data, and to register for email
notification of company news, events, and stock activity.
(Source: Company Press Release)


==================================================================
NetBulls - Tech Stock Plays
==================================================================

============
Closed Plays
============

  -------------------
  Closed Bullish Play
  -------------------

Planar Systems - PLNR - cls: 23.23 chg: -0.39 stop: 22.98

Once again on Monday, PLNR played follow-the-leader with the
COMPX.  An intraday chart shows PLNR plummeting early in the day
and then climbing steadily from 10:30 until the bond-market close
at 3:00, at which time it declined into the close.  PLNR closed
well above our $22.98 stop, but that didn't matter because the
early-morning plunge stopped us out of the play.

Volume proved light on the 1.65 percent decline today.  PLNR's
bounce took it back inside the $23-24 consolidation band that has
been containing its prices the last couple of weeks and the
bounce successfully tested the 21-dma.  However, the Amex
Computer Technology Index, XCI, rose 0.18 percent, showing that
not all computer technology stocks closed down, and that PLNR
underperformed this index.

Picked on July 20 at $23.89
Change since picked:  -0.66
Earnings Date:     07/16/03 (confirmed)
Average Daily Volume:   174 thousand




==================================================================
Stock Bottom - Non-Tech Stock Plays
==================================================================

============
Closed Plays
============

  -------------------
  Closed Bullish Play
  -------------------

PETsMART, Inc. - PETM - cls: 18.98 chg: -0.25 stop: 18.29

On Friday, PETM cheered us by bouncing from its 21-dma, but
Monday, PETM opened below that average, tested it, and fell back
to create a high-wave candle.  That type of candle indicates
indecision.  We had also suggested that readers watch RSI as it
approached its ascending trendline, and today RSI broke through
that trendline, confirming the weakness seen on the bar chart.
PLNR's 1.29 percent drop underperformed the RLX's 0.07 percent
decline, too.  We think PETM next heads down to test our $18.29
stop, and see no reason to hold onto the stock until the stop is
hit.

Picked on July 27 at 19.99
Change since picked: -1.01
Earnings Date:    08/28/03 (confirmed)
Average Daily Volume:  1.4 million





==================================================================
  Trading Ideas
==================

This section contains stocks that meet criteria which may make
them of interest to long and short side traders.  These are not
recommendations, nor have they been reviewed by PremierInvestor
editors for investment potential.  However, each of them has
technical and fundamental characteristics that make them worthy
of further review by traders and investors looking for fresh ideas.
New stocks will appear daily following the market close.

Value Plays With Bullish Signals
---------------------------------
Ticker  Company Name               Close     Change

GCI     Gannett Co                 77.67     +0.63
CSC     Computer Sciences          42.75     +2.02

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

PKN     Petrokazakhstan Inc        14.08     +1.20
EBKR    Ebookers Plc (ADR)         19.40     +1.10
CDCY    Compudyne Corp             10.70     +1.62
SGMA    Sigmatron Intl Inc         16.11     +2.72

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

HBC     HSBC Holdings              62.98     +1.62
PCAR    PACCAR Inc                 78.35     +1.43
MWV     MeadWestvaco               25.00     +1.02
BVN     Compania De Minas Buena    35.40     +2.32
IRF     Intl Rectifier Corp        32.05     +1.20
NTE     Nam Tai Electronics        22.46     +3.06
WMS     WMS Industries             20.83     +3.28

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

EBAY    EBAY Inc                  103.36     -1.92
FRX     Forest Labs                45.23     -1.05
KYO     Kyocera Corp               55.96     -1.09
APC     Anadarko Petroleum         40.50     -2.18
WEG     Williams Energy Partners   43.99     -1.71
CVTX    CV Therapeutics            27.87     -7.31

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

PRX     Pharmaceutical Resources   54.05     -3.23
AMX     America Movil              21.35     -0.69
ALCO    Alico Inc                  25.96     -1.50



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

DISCLAIMER

Option Investor Inc is neither a registered Investment Advisor nor a Broker/Dealer. Readers are advised that all information is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor is it to be construed as a recommendation to buy, hold or sell (short or otherwise) any security. All opinions, analyses and information included herein are based on sources believed to be reliable and written in good faith, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. In addition, we do not necessarily update such opinions, analysis or information. Owners, employees and writers may have long or short positions in the securities that are discussed.

Readers are urged to consult with their own independent financial advisors with respect to any investment. All information contained in this report and website should be independently verified.

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