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Daily Newsletter, Tuesday, 08/19/2003

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PremierInvestor.net Newsletter                Tuesday 08-19-2003
                                                   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:      Over the Backs of Bears
Watch List:       ASKJ, MNC, MEDI, YCC and more!
Market Sentiment: Taking Stock

=================================================================
MARKET WRAP  (view in courier font for table alignment)
=================================================================
      08-19-2003           High     Low     Volume Advance/Decline
DJIA     9438.90 + 16.50  9445.08  9351.73 1.59 bln   2076/1135
NASDAQ   1761.11 + 21.60  1761.63  1737.37 1.70 bln   2068/1167
S&P 100   503.92 +  1.13   504.28   499.77   Totals   4144/2302
S&P 500  1002.35 +  2.61  1003.30   995.30
W5000    9683.31 + 40.10  9685.77  9618.22
RUS 2000  488.70 +  7.78   488.70   480.92
DJ TRANS 2663.95 + 20.10  2665.59  2642.61
VIX        19.23 -  0.05    20.19    18.11
VXN        26.50 -  0.12    27.76    26.50
Total Volume 3,568M
Total UpVol  2,537M
Total DnVol    978M
52wk Highs  747
52wk Lows    66
TRIN       0.93
NAZTRIN    0.69
PUT/CALL   0.64
=================================================================

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


Over the Backs of Bears

Most of the major indexes closed at new 52-week highs and it
was done by climbing over the backs of screaming bears. Well,
maybe sleeping bears. The volume was still light and the gains
were not strong but those bears who were run over were in
denial. I know I was there. The Dow hit a new high at 11:00
of 9445 and then traded down the rest of the day until the low
of 9351 was hit at 2:40. Bears were backslapping each other
that the long awaited failure at the top had arrived when the
market suddenly reversed. No problem. Just like the three
lower highs since 11:00 they hit the short button again, and
again, and again, only to see a strong ramp into the close.
The Dow did not return to its high of the day but did close
at a new 52-week high.

Dow Chart - Monthly


Nasdaq Chart - Monthly


The morning started off bad with the Retail Sales falling -0.5%
from last week but that was written off as blackout related.
Also the end of sales tax holidays in several states made the
prior week comparisons hard. Helping hold the line were more
tax checks and good weather for back to school shopping. WMT
said unit sales of school supplies were up but dollar volume
was down due to discounting and competition. ShopperTrak said
over two-thirds of sales lost due to the blackout were
recovered before the weekend was out.

Residential Construction soared to 18-year highs at 1.87
million on an annual basis as builders race to complete houses
before the interest rate rises any further. The housing permits
fell, which indicate a future slowing but for now they are
racing weather and interest rates to complete available units
before the fall rains. The June starts were revised upward to
+5.7% from +3.7%. This was another shot of speed to investors
looking for signs of economic strength. Futures soared in the
premarket and setup a gap to new highs despite the impending
Michigan Sentiment report 15 min later.

The Sentiment report for August fell to 90.2 from 90.9 and was
less than the expected 91.2. Ho-hum. Traders completely ignored
it and continued to push the Dow higher. The sentiment has
moved sideways in the 90 range since its high of 92.1 in May.
For those that have jobs things are improving with lower taxes,
tax rebate checks and retail prices dropping on everything but
energy. Despite the interest rate gains they are still low when
compared to levels seen over the last ten years. When this
number is updated later this month the blackout is sure to
lower it significantly but the new market highs may be an
offset.

After the bell tonight the Semi Book-to-bill number of 0.97 was
released. This was an improvement over the 0.93 in June and
should help the semiconductor index explode even higher. The
index broke strong resistance already this week at 400 and
closed on Tuesday at 425. Despite the level of orders still
flat for the year the +5.7% increase for the month broke a
3-month downtrend. Orders are down -21% from last year and
shipments are down -19%. While .97 is better than .93 it just
means the rate of decline is slowing. Until the number climbs
over 1.0 the chip companies are receiving fewer orders than
they are shipping. The numbers are much better than the three
month slump to .90 in Mar-May and traders will get high on
semi again tomorrow.

Also impacting tomorrows trading will be the Hewlett Packard
earnings after the close. They missed earnings by -3 cents and
lowered guidance going forward. They said the PC sector was
still weak and only laptops were seeing any gains. HPQ said
it was a tough quarter despite losses being erased in several
divisions. The CEO said aggressive pricing and weak demand
contributed to the earnings miss. Personal system sales saw
a loss of -$56 million for the quarter but that was still
better than the -$140 million for the same quarter last year.
They said volume had declined in Unix servers and that was
one area of strength before. While HPQ dropped to $19.76 from
its close at 22.12 the futures were not showing that much
impact. Many analysts claimed the HPQ results were specific
to HWP and should not be taken as an industry wide problem.

The Dow managed to close up +16 points after spending much
of the day in negative territory. The Nasdaq was never in
doubt and rebounded +21 to 1761. The big winner however was
the Russell-2000, which gained +1.61% or nearly +8 points to
close at 488. This was an explosion over downtrend resistance
at 480. The S&P closed at 1002 for a gain of +2.61 and a close
over the 100 DMA for the second day. The Wilshire 5000 was the
party pooper with a +40 point gain to 9683 but still under
strong resistance at 9700.

With the only economic reports tomorrow the Mortgage Application
Index and the Monthly Mass Layoff report traders should be taking
their cue from the book-to-bill and pressing their bets to the
long side. The wildcard is the HPQ earnings and their impact on
the sentiment. After today I am not sure if anything will damage
sentiment but that is normally when the worst events happen. The
two bombings in Iraq and Israel today had little or no impact on
sentiment so it is doubtful the HPQ news will either.

Bonds closed near the highs of the day and yields dropped
impressively. The stock market failed to take money from bonds
and with positive economic numbers they performed very well.
Is there anything that can derail this train?

The challenge now is the downtrend resistance on the Dow from
April 2001, which intersects at just over 9500. Nasdaq resistance
is the July high at 1776 then it is pretty much clear sailing to
1900. If all this sounds a little like the Twilight Zone it is
probably because it is. With the September/October period in
front of us the concept of a rally that reaches 1900 on the
Nasdaq is about as foreign as sauerkraut on strawberries instead
of whipped cream. If you are long, congratulations and keep those
stops tight. If you are flat, hold your nose and go long and
definitely keep those stops tight. The VIX put in a nearly sub
19 day and the VXN traded at a new all time low. VIX at new lows,
markets at new highs? Just keep looking around every corner as
the bulls climb the wall of worry because that is a recipe for
eventual disaster. The VIX can go lower and many times does.
Something in the 17 range would be my storm cellar warning but
until then hang on to your parachute as we move higher.

I apologize for the short wrap and the lateness tonight. I got
the blue screen of death about 2 hrs into it and spent another
2 hrs trying to recover before giving up and starting over on
another PC. Thank you Microsoft for another wonderful evening.

Enter Very Passively, Exit Very Aggressively!

Jim Brown
Editor



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

Ask Jeeves, Inc. - ASKJ - close: 18.20 change: +0.43

WHAT TO WATCH: Led by shares of EBAY, the Internet stocks have
been on fire again this week and ASKJ has been joining in the
bullish party over the past 2 days.  Closing back over $18 on
Tuesday, shares of the online search service look poised for a
breakout move to new all-time highs.  This play isn't for the
timid, but with volume running nearly double the ADV, this looks
like a good old-fashioned momentum run.



---

Monaco Coach Corp. - MNC - close: 16.55 change: +0.75

WHAT TO WATCH: Apparently consumers are still spending money
without a care.  At least that seems to be what is reflected in
the action in shares of the manufacturers of motor homes and
recreational vehicles.  MNC has been recovering modestly for the
past couple weeks and blasted higher over the past 2 days,
clearing near-term resistance at $16.30.  The stock looks poised
to test next resistance at $17.25 and if the bullish mood
prevails, a run at the $19.50 area looks possible.  Conservative
traders may want to wait for the stock to trade through the
6/12/03 high of $16.75 before playing.



---

Medimmune Inc. - MEDI - close: 35.47 change: -0.61

WHAT TO WATCH: Not every sector of the market is seeing gains,
and MEDI is a notable area of weakness, as the stock has clearly
violated its rising channel that contained price action from last
October until the breakdown earlier this month.  The stock
appears to be trying to bounce from the $35 support level, but a
failed rally near the bottom of that channel (also the site of
the 50-dma) could set up a nice bearish trade down to strong
support at $32.50, also the site of the 200-dma.



---

Yankee Candle Company - YCC - close: 23.25 change: -1.12

WHAT TO WATCH: Just when it looked like YCC was going to break
out on Friday, the bears exercised their veto and have been
selling the stock hard this week, with volume running over double
the ADV.  This has the stock on the verge of a breakdown from its
2-month consolidation and today's break under the 50-dma
certainly looks bearish.  With oscillators early in their bearish
roll, current levels (or even a failed rebound below $24) look
good for new entries.  More conservative traders may want to wait
for the $22 support level to break before playing.  Look for a
downside move towards $20, with support likely to be offered by
the 200-dma, currently just below that level.



---


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

MO $38.97 - After a failed rally attempt in June, shares of
tobacco giant MO have fallen back to consolidate just over strong
support near $38, with added support offered by the 200-dma at
$38.44).  Should the stock break below $38, it will likely have
the bears getting more aggressive as the stock moves into the
"fast move" area from May's rally off the $34 level.  Entering on
the breakdown with a target of $34 looks like a solid bearish
trade setup, especially with the PnF chart already on a Sell
signal with a price target of $30.

FLEX $12.84 - Upgrades still carry a punch, judging by the strong
breakout in shares of FLEX today, as the stock vaulted higher by
more than 10% on the heels of a Wells Fargo upgrade and an
increased price target of $15.  That's too big a move to chase,
but a pullback to confirm new support in the $11.75-12.00 might
be just the ticket for a favorable entry before the bullish move
continues.  Note that the PnF chart is already bullish with a
vertical count of $21.50.  We aren't looking for anything near
that level, but a move to the $15 Wells Fargo target certainly
seems reasonable.

PAAS $9.75 - Investors have clearly come to terms with the bull
market in gold and gold stocks, but silver stocks seem to have
been overlooked.  At least until you start looking at some price
charts.  PAAS is closing in on major resistance at $10 and
actually posted an all-time closing high on Tuesday.  A breakout
over $10 looks like it has room to run, with the PnF bullish
price target currently at $15.25.  It probably won't be a fast
mover, but the stock certainly has a positive looking trend.



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

Taking Stock
Jonathan Levinson

It's difficult to find anything bearish in the intraday charts of
the major indices, while the indicators continue to urge caution.
We see the Nasdaq-related volatility indices setting new record
lows, and the VIX following along with its own low readings.

Bullish percents remain at levels commensurate with market tops,
as do the various breadth measures.  Despite all of these
compelling signals, the indices have been extending their gains
steadily, with volume increasing today.

These indicators urge caution for bulls and warn that our
risk/reward calculations favor downside over upside.
Unfortunately, price has not obliged.  It does not pay to ignore
indicators, but they must be taken in context.  Every indicator
gives a different snapshot of a current facet of the market.  As
we've discussed in the past, a very low TRIN reading either
indicates a blowoff spike in buying pressure, of the beginning of
a trending wave of buying pressure.  The reading in each case is
the same, but its message can vary 180 degrees.

It is for this reason that account management and trading
discipline are essential.  Let the data here and in the charts
suggest the trades, but use stop losses and appropriate account
management to control your risk.


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

Market Averages

DJIA ($INDU)

52-week High:  9445
52-week Low :  7197
Current     :  9428

Moving Averages:
(Simple)

 10-dma: 9265
 50-dma: 9170
200-dma: 8580

S&P 500 ($SPX)

52-week High: 1015
52-week Low :  768
Current     : 1002

Moving Averages:
(Simple)

 10-dma:  985
 50-dma:  989
200-dma:  916

Nasdaq-100 ($NDX)

52-week High: 1316
52-week Low :  795
Current     : 1299

Moving Averages:
(Simple)

 10-dma: 1243
 50-dma: 1247
200-dma: 1104


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

The volatility indices continue to trade at or new near lows and
they should continue to do so as long as the broader indices
continue to scratch out new gains.  As Jon reminds us above, trade
carefully.

CBOE Market Volatility Index (VIX) = 19.23 –0.05
Nasdaq Volatility Index (VXN)      = 26.50 –0.12


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

          Put/Call Ratio  Call Volume   Put Volume

Total          0.64        623,106       396,897
Equity Only    0.50        541,483       268,511
OEX            1.04         13,461        14,050
QQQ            0.87         40,606        35,144


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

Bullish Percent Data

           Current   Change   Status
NYSE          69.4    + 1     Bull Confirmed
NASDAQ-100    68.0    + 3     Bear Confirmed
Dow Indust.   80.0    + 0     Bull Correction
S&P 500       75.4    + 1     Bull Correction
S&P 100       82.0    + 0     Bull Confirmed


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

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

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

 5-Day Arms Index  0.86
10-Day Arms Index  0.86
21-Day Arms Index  0.97
55-Day Arms Index  1.07


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    1838      2004
Decliners     993      1094

New Highs     230       278
New Lows       26         7

Up Volume   1094M     1240M
Down Vol.    471M      448M

Total Vol.  1579M     1710M
M = millions


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

Commitments Of Traders Report: 08/12/03

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

Commercials added slightly to their long positions in the S&P,
whilesmall traders maintained their positions, adding a net 761
contracts for the week.


Commercials   Long      Short      Net     % Of OI
07/22/03      411,206   442,131   (30,925)   (3.6%)
07/29/03      405,429   445,114   (39,685)   (4.7%)
08/05/03      395,633   450,988   (55,353)   (6.5%)
08/12/03      399,414   456,767   (57,353)   (6.7%)

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
07/22/03      155,891    76,466    79,425    34.2%
07/29/03      155,216    73,030    82,186    36.0%
08/05/03      159,971    72,951    87,020    37.4%
08/12/03      158,821    71,040    87,781    38.2%

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

Commercials added heavily to their long positions in the e-mini,
posting their most bullish reading of the year, while small
traders added further to their short positions.


Commercials   Long      Short      Net     % Of OI
07/22/03      249,392   249,386          6     0.0%
07/29/03      272,659   216,166     56,493    11.6%
08/05/03      310,662   249,004     61,658    11.0%
08/12/03      306,014   217,233     88,781    17.0%

Most bearish reading of the year: (354,835)  - 06/17/03
Most bullish reading of the year:   88,781   - 08/12/03

Small Traders Long      Short      Net     % of OI
07/22/03       45,945    76,071   (30,126)  (24.7%)
07/29/03       44,437    93,144   (48,707)  (35.4%)
08/05/03       56,663    95,919   (39,256)  (25.7%)
08/12/03       62,534   106,403   (43,869)  (26.0%

Most bearish reading of the year: (48,707)  - 07/29/03
Most bullish reading of the year: 449,310   - 06/10/03


NASDAQ-100

Commercials and small traders moved in the same direction on the
NDX, as commercials lightened up slightly on their short
positions, while small traders added to their longs.


Commercials   Long      Short      Net     % of OI
07/22/03       32,502     48,139   (15,637) (19.4%)
07/29/03       31,456     50,294   (18,838) (23.0%)
08/05/03       32,813     52,383   (19,570) (23.0%)
08/12/03       34,374     53,015   (18,641) (21.3%)

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
07/22/03       27,321     8,844    18,477    51.1%
07/29/03       25,691     7,810    17,881    53.4%
08/05/03       22,188     7,783    14,405    48.1%
08/12/03       23,957     7,871    16,086    50.5%

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

Commercials added slightly to their long positions on the Dow, but
the move was sufficient to post a new bullish high for the year,
close to reaching the October 2001 high of 15,135 contracts.
Small traders added more substantially to their shorts.


Commercials   Long      Short      Net     % of OI
07/22/03       22,198     8,176   14,022      46.2%
07/29/03       23,696     9,572   14,124      42.5%
08/05/03       23,981     9,264   14,717      44.3%
08/12/03       24,942     9,878   15,064      43.3%

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
07/22/03        6,110    10,898   (4,788)   (28.2%)
07/29/03        5,744    11,601   (5,857)   (33.8%)
08/05/03        5,716    10,422   (4,706)   (29.2%)
08/12/03        6,933    13,248   (6,315)   (31.3%)

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

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





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DISCLAIMER
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This newsletter is a publication dedicated to the education
of stock traders. The newsletter is an information service
only. The information provided herein is not to be construed
as an offer to buy or sell securities of any kind. The
newsletter picks are not to be considered a recommendation
of any stock but an information resource to aid the investor
in making an informed decision regarding trading in stocks. It
is possible at this or some subsequent date, the editors and
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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 08-19-2003
                                                   section 2 of 2
Copyright (c) 2003, All rights reserved.
Redistribution in any form is strictly prohibited.

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

Play of the Day:     Going For The Gold

Closed Plays:        HOTT, DAL, SHRP

Stop-Loss Adjustments: IRF, HELE, LSI

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

Newmont Mining - NEM - cls: 38.91 chng: +0.87 stop: 37.40

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:
We're having some fun now!  Actually, sleeping through Friday's
session would have proved to be more exciting than actually
watching the "action".  Our NEM play traded in a painfully tight
56 cent range near the top of its recent move, and it's no great
surprise with the December gold futures contract (GC03Z) trading
a paltry 60 contracts vs. a normal day where from 1400 to 2500
contracts change hands.  This is mostly the result of the power
outage in the Northeast and with no action in the futures
contract, it was no surprise to see the gold shares trade in
muted fashion as well.  We'll have to wait for more clarity next
week.  NEM is very close to our profit target of $39 and it has
been dancing around up here for most of the week.  Conservative
traders should have already harvested gains, which just leaves
those with a more aggressive risk profile holding on for a
potential move into the $39-40 area, at which point, they should
also take the money and run.  There's not much we can do to limit
our risk in the play from here, but we are inching our stop up to
$37.40, just under Wednesday's intraday low.  Just to be
perfectly clear, we are not recommending new entries at this
time.

Why This is our Play of the Day
NEM has been a frequent guest in the Play of the Day slot during
its tenure on the bullish play list, and the simple reason is
that it continues to perform.  Despite the renewed strength in
the dollar, gold and gold stocks have been holding up well.  On
Tuesday, NEM once again tested the $39 resistance level, with an
intraday high of $38.99.  Looking at the daily candles gives a
picture reminiscent of 2 weeks ago, when the stock was
threatening to break out over the $37 level.  We all know how
that played out, with a successful breakout and the subsequent
consolidation at this higher level.  We're looking for one more
strong bullish move into the $39-40 area and based on the rising
volume, we could see that materialize as early as tomorrow.
Rather than get greedy, we're going to recommend harvesting gains
on such a bullish move, primarily due to the strength of
resistance at $40, as well as it being the bullish price
objective from the breakout of the June/July consolidation,
following the preceding rally.  Due to the proximity of that
resistance, we obviously are not advocating new positions at this
time.  Consider this a heads up to plan your exit accordingly, as
a breakout tomorrow will likely have NEM transitioning gracefully
to the drop list.  While we're maintaining our stop at $37.40,
more conservative traders may want to tighten theirs up a bit,
perhaps to $37.60, just below today's intraday low.

Annotated Chart of NEM:


Picked on July 23rd at   $35.28
Change since picked       +3.63
Earnings Date            7/31/03 (confirmed)
Average Daily Volume =  4.60 mln


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


Active Trader
-------------


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


Hot Topic, Inc. - HOTT - close: 33.25  change: +0.96 stop: 30.25

Earnings and split runs appear to be back in fashion.  Since we
entered our long play on this retail stock, it leaped above its
rising regression channel and charged up the charts in an almost
vertical fashion.  Our bullish play received a boost when tax
checks arrived about the time HOTT's teen customers headed back
to school.  Not even a downgrade of Too, Inc., another retail
store targeting teens, impacted HOTT.

We're sorry to let this one go, but HOTT reports earnings
tomorrow after the bell, and it's our policy to drop plays ahead
of their earnings announcements.  Although MACD remains strong,
other oscillators begin to look toppy.  HOTT appears due for a
pullback, although nothing in the charts necessarily predicts
when the pullback will occur.  This stock has gained 11% since
August 8th.  We'll take a look at it again after it's settled
down from the volatility that usually comes after an earnings
announcement.

Picked on Aug 10 at  30.16
Change since picked: +3.09
Earnings Date:    08/20/03 (confirmed)
Average Daily Volume:  448 thousand





  --------------------
  Closed Bearish Plays
  --------------------

Delta - DAL - close: 12.06  change: +0.32  stop: 11.86

Buoyed by the resumption of routes shut down by last week's power
outages, the airline stocks started the week flying higher.  DAL
did, too.  Tuesday, DAL announced a redesign of the Fort
Lauderdale--Hollywood International Airport, with the redesign
meant to reduce airport wait times significantly and improve the
travel experience.  The redesign includes improvements in
technology, but DAL will also add customer service roles that
will enhance customer interaction.  DAL also announced plans to
increase jet service at the Wilmington, N.C. airport, offering a
nonstop flight between Wilmington and Atlanta beginning in
October.

DAL opened cents above our $11.86 stop, pulled back to the 200-
dma, and then sprang above our stop again.  Although volume
proved light, stochastics and RSI moved into a distinctively
bullish mode.  MACD curves up strongly, too, although it remains
below zero.  DAL's advance stopped today just above resistance at
$12.00, and it will find next resistance near $12.75 and then at
the 50-dma, now at $13.17.

Picked on July 30 at 11.15
Change since picked: +0.91
Earnings Date:    07/17/03 (confirmed)
Average Daily Volume:  3.3 million



----

Sharper Image - SHRP - close: 28.67  change: +2.31  stop: 26.75

The retail index $RLX might have headed down in Tuesday's
trading, but SHRP polished its image and headed up the charts. By
midmorning, SHRP had stopped us out of our play.  By the end of
the day, SHRP had gained 8.76 percent on almost double average
daily volume.

What happened?  We're not sure, but earnings are scheduled for
Thursday after the close.  Perhaps someone knows something about
earnings or perhaps we got caught in a short-squeeze ahead of
earnings. On Monday, RSI broke through its trendline of
descending highs, hinting at strength. Stochastics moved up, but
MACD remains below zero.  We notice that the strong climb moved
SHRP right back to the shoulder level of the former head-and-
shoulder formation with the advance stopping there, but we
wouldn't count on the stock rounding over again into a second
right shoulder.

Picked on Aug 10 at  24.65
Change since picked: +4.02
Earnings Date:    08/21/03 (confirmed)
Average Daily Volume:  260 thousand




=========================
Stop-Loss Adjustments
=========================


IRF – Raise from $32.00 up to $33.60

HELE – Raise from $19.60 up to $20.39

LSI – Raise from $9.25 up to $9.50


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

UTX     United Technologies Corp   78.73     +1.74
PGR     Progressive Corp           69.16     +1.33
UB      Unionbacal Corp            45.51     +1.74
ODP     Office Depot Inc           17.37     +1.02
PHM     Pulte Homes Inc            67.74     +2.79
RCII    Rent a Center Inc          77.07     +2.75


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

MU      Micron Technologies Inc    13.86     +1.10
FLEX    Flextronics International  12.84     +1.19
CLS     Celestica Inc              17.06     +1.81
SCRI    Sicor Inc                  19.27     +1.51
PLXS    Plexus Corp                15.70     +1.20
JDAS    JDA Software Group Inc     15.87     +1.20


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

RTP     Rio Tinto Plc (ADR)        88.09     +2.09
HIT     Hitachi Ltd                49.10     +2.27
A       Agilent Technologies Inc   24.29     +1.83
SPLS    Staples Inc                22.53     +2.15
BRCM    Broadcom Corp CI A         25.35     +2.50
JBL     Jabil Circuit Inc          27.20     +1.17


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

HD      Home Depot Inc             32.16     -1.74
CME     Chicage Mercantile Exchange71.60     -6.32
ENH     Endurance Specialty Holding27.90     -1.05
CTR     Cato Corporation (THE)     23.75     -1.15


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

None




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