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PremierInvestor.net Newsletter                 Monday 08-25-2003
                                                  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:      Wall Street Wavers
Play of the Day:  Cracking 200

===============================================================
MARKET WRAP  (view in courier font for table alignment)
===============================================================
     08-25-2003            High     Low     Volume Advance/Decline
DJIA     9317.64 - 31.23  9350.77  9280.94 1.21 bln   1155/1622
NASDAQ   1764.31 -  1.01  1768.12  1752.12 1.13 bln   1269/1703
S&P 100   497.66 +  0.24   497.72   495.07   Totals   2424/3325
S&P 500   993.71 +  0.65   993.71   987.91
RUS 2000  483.87 -  1.64   485.51   480.99
DJ TRANS 2633.01 -  8.55  2649.07  2624.08
VIX        20.32 +  0.05    20.94    20.23
VXN        29.34 -  0.13    30.10    29.09
Total Volume 2,510M
Total UpVol    985M
Total DnVol  1,457M
52wk Highs     248
52wk Lows       40
TRIN          1.14
PUT/CALL      1.21
===============================================================

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


Wall Street Wavers
by James Brown

Major indices across the globe wavered on either side of
unchanged today but the general mood and result was down.  U.S.
indices the Dow Jones Industrial lost 31 points to close at 9317,
the NASDAQ Composite lost one point to close at 1764 and the S&P
500 added 0.65 to close at 993.71.  Expectations for this week
were mixed but after Friday's apparent one-day bearish reversal
many investors were looking for some follow through by the bears.
Traditionally, lack of volume, which was an issue today, favors
the bears but even an overflow of sellers couldn't push the major
indices very far.

The selling was heaviest in the technology related sectors but
gold stocks joined the decline.  The bond market also lost ground
pushing the yield on the 10-year note up to 4.527%.  Declining
stocks out paced advancing stocks 16 to 11 on the NYSE and 17 to
12 on the NASDAQ.  New highs rang in at 199 with new lows at 24
between the two exchanges.  Down volume was about 50% greater
than up volume across the markets with total volume squeaking in
at a very low 1.16 billion on the NYSE and 1.1 billion on the
NASDAQ (rounded up).

Chart of the Dow Industrials:


Chart of the NASDAQ:


Housing Market Peaks

Economists and analysts who had been expecting existing home
sales to come in at an adjusted rate of 5.94 million were
surprised to see sales jump 5% to a new record high at 6.12
million in July.  The financial media was quick to report that
this morning's numbers were based on closing transactions.  That
most likely means this July's existing home sales record is based
on consumer decisions made in May and June when mortgage rates
were at their lowest.  One industry expert went so far as to say
that we may have just witnessed the peak in the U.S. housing
market.  They may not be far off the mark since the average 30-
year fixed rate mortgage was a record low of 5.23 percent in
June.  The average 30-year mortgage jumped to 5.63% in July.

The incredible sales pace pushed up home prices by 12.1 percent
in the past 12 months.  The median home sold for $182,100 in July
and the year-over-year price increase was the largest since
November 1980.  Bloomberg reported that one executive with
Century 21 Real Estate believes that while we may have hit a peak
the U.S. probably won't see a significant slow down.  An
improving economy with interest and mortgage rates still near
historic lows will keep home sales strong.  However, most
analysts believe that home price appreciation will likely slow to
a more reasonable 4-to-5 percent.  The strong home sales number
is actually good news for the economy as home sales spur
additional purchases for consumer durables.

Despite the positive implications of today's numbers is wasn't
enough to spur the markets higher as some see the report as a
lagging indicator.  Tomorrow's New Home Sales report should carry
more weight with Wall Street.

Wal-Mart & Intel Spotlight Again

Making the headlines again was Arkansas-based Wal-Mart
(NYSE:WMT).  The largest retailer on the planet said back-to-
school sales have come in so strong that they are raising their
August forecast from 3-to-5 percent to 4-to-6 percent.  After
some mid-day profit taking shares of WMT did bounce to close back
over the $59 mark.  Following its lead was the S&P retail index
(RLX), which bounced into the closing bell for a fractional gain.
Analysts believe that this is good news for the retailing
sector's upcoming fourth quarter and the country's GDP as
consumers represent 2/3rds of the economy.

Another Dow component grabbing the spotlight was semiconductor
giant Intel Corp (NASDAQ:INTC).  Almost half a dozen analysts
upgraded their price targets on the stock.  Some of the larger
names making positive comments were Smith Barney, who raised
their price target to $30; Bear Stearns, who raised their price
target to $31; and Prudential, who raised their price target to
$34.  Unfortunately all the positive comments couldn't lift
shares and Intel continued its profit taking from Friday's close.

Component Downgrades

The only analyst comments that traders were paying attention to
were downgrades for two Dow Jones Industrial components.
Prudential dropped its rating on the world's largest aluminum
producer Alcoa (NYSE:AA) from a "buy" to a "hold".  The analyst
claims that the stock is already "fully valued" and sports nearly
twice the P/E to its closest competitor Alcan.  Shares lost 1.2
percent on the session and rebounded strongly from its lows of
the day.  Meanwhile, fellow component Caterpillar (NYSE:CAT) lost
more than 2.8 percent after an analyst at Legg Mason sliced his
rating on the stock from a "buy" to a "hold".  The move was
mainly based on valuation concerns, which isn't surprising given
CAT's 75% rise in share price from its February 2003 lows.

Tomorrow

Tuesday's trading is currently a toss up.  Market direction will
be heavily influenced by the economic reports due out tomorrow.
Before the bell will be the Durable Goods Orders for July.
During the session expect to hear the latest Consumer Confidence
numbers for August and the New Home Sales for July.  Plus we're
always at risk for a terrorist event.  Markets didn't move much
on the bombing in India today but headlines like this do keep
investors on edge and fingers close to the sell button.  If
you're a "glass is half full" kind of trader then the late
afternoon bounce today might materialize into something stronger.
Unfortunately, the general mood seems to be "sit back and watch",
which given the low volume will probably lean toward additional
profit taking.  We are approaching September and everyone knows
it is historically the worst month of the year.  With this big
black cloud on the horizon the easiest bets are probably not
bullish ones.




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


AmerisourceBergen - ABC - close: 58.70 change: -0.61 stop: 62.05

- Company Description -
AmerisourceBergen is a pharmaceutical services company dedicated
solely to the pharmaceutical supply chain. The company markets
its products and services to hospital systems (hospitals and
acute care facilities), alternate care customers (mail order
facilities, physicians' offices, long-term care institutions and
clinics), independent community pharmacies, and regional
drugstore and food merchandising chains. ABC also provides
outsourced pharmacies to long-term care and workers' compensation
programs. ABC perates in two segments: Pharmaceutical
Distribution and PharMerica. The Pharmaceutical Distribution
division is primarily the company's wholesale and specialty drug
distribution business, and PharMerica is the company's
institutional pharmacy business. (Source: Company press release.)

- Most Recent Update on GTI, July 13, 2003 -
There's just no way to paint Friday's market action in a bullish
light, as the early ramp failed 30 minutes into the day, with
each and every rebound attempt rebuffed right into the closing
bell. Our ABC play made an initial surge above $60, which quickly
ropped back near Thursday's lows, leading to midday consolidation
before the slide into the close that left the stock resting just
above its 200-dma ($59.19). While we like the downward action, it
was a bit disappointing to see it come on rather light volume
that was barely half the ADV. This hints that perhaps there will
be a near-term rebound from this area, but so long as it fails
below the 20-dma (now at $61.57), the bearish picture will remain
intact. So shorting into a rebound failure still looks good for
aggressive entries, while those looking to enter on weakness will
want to use either a break below the 200-dma. Then there's the
potential for support to appear near $58 (the reaction low from
early August) before continuing down to our initial target of
$56. Recall that level is the site of the bullish support line on
the PnF chart and will likely result in a near-term rebound.
Maintain stops at $62.05 until the 200-dma breaks.

- Why This is our Play of the Day, July 14, 2003 -
Shares of ABC have continued to drop and the move today placed it
below the simple 200-dma.  We suspect that bears will capitalize
on the move with some follow through but more conservative
traders may do best to wait for a move under the Aug. 6th low of
$58.18.

Annotated Chart for ABC:


Picked on August 10th at $60.00
Change since picked       -1.30
Earnings Date          10/23/03 (unconfirmed)
Average Daily Volume =     1.38 mln






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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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Copyright ) 2003  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.
PremierInvestor.net Newsletter                  Monday 08-25-2003
                                                   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:   SAFE

Closed Plays:         AGIX

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


SAFE shows vital signs of a 3-for 2 stock split

Before the opening bell, Invivo Corp's (NASDAQ:SAFE) Board of
Directors declared a 3-for-2 stock split of its common shares.

The stock split will be payable on September 26th, 2003 to
shareholders on record as of September 12th.  The company
currently has 4.2 million shares outstanding.

This is SAFE's first split since being listed on the NASDAQ in
1988.

About the company:
Invivo Corporation's Invivo Research subsidiary designs,
manufactures and markets monitoring systems that measure and
display vital signs of patients in medical settings.
(Source: Company Press Release)


==================================================================
High Risk/High Reward
==================================================================

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

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

AtheroGenics - AGIX - close: 13.48  change: +0.43 stop: 13.30

All last week, AGIX tested our stop with low-volume days printing
small-bodied candles just below resistance.  Volume dipped even
lower Monday, measuring only 137.5 thousand shares, but that low-
volume wave carried AGIX above our stop by early afternoon.
After spending much of the day consolidating just above our
$13.30 stop, another wave swept AGIX higher into the close, with
the stock closing near the high of the day.

RSI turns up and the 21(3)3 stochastics try to do so, too, after
spending the end of last week turning up on some days and
flattening on others.  MACD has not yet fully committed to this
rise, and AGIX closed less than $0.005 above the 21-dma.  AGIX
did find support from its 10-dma, however, an average that it
closed above last Thursday, giving us a first signal that the
play might be troubled.

What happened?  We're not sure, but we note that major
pharmaceuticals such as PFE, SGP, and LLY swept higher today.
Perhaps AGIX just got caught up in the wave as the bigger
pharmaceuticals retraced some of their recent losses.

Picked on Aug 17 at  12.12
Change since picked: +1.36
Earnings Date:    07/24/03 (confirmed)
Average Daily Volume:  251 thousand




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

FBN     Furniture Brands Intl      27.26     +0.73


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

INSP    Infospace Incorporated     16.07     +1.08
QADI    QAD Inc                     9.40     +1.25
BEL     Bennett Environmental      13.75     +1.26
DJO     DJ Orthopedics (IPO)       12.10     +1.55
SCOX    SCO Group Inc              14.85     +1.30
IMM     Immtech International Inc  18.01     +1.52


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

FRE     Freddie Mac                51.66     +2.19
TWP     Trex Co Inc                36.46     +1.71
CRAU    Charles River Assoc Inc    33.77     +1.56
MTLG    Metrologic Instruments     37.27     +5.44
CLF     Cleveland Cliffs Inc       25.22     +2.87


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

SNP     China Petro & Chem (ADS)   29.16     -2.96
COX     COX Communications Inc     32.25     -1.05
AT      Alltel Corp                44.87     -1.09
UTSI    Utstarcom Inc              42.53     -2.68
FLR     Fluor Corp (NEW)           36.39     -1.09
KKD     Krispy Kreme Doughnuts     43.60     -2.57


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

CAT     Caterpillar Inc            69.66     -2.03
ROK     Rockwell Automation Inc    26.06     -0.68
ESRX    Express Foods Company      62.08     -1.40
DF      Dean Foods Company         29.24     -0.29
COCO    Corinthian Colleges Inc    54.32     -2.61
RJF     Raymond james Financial    35.57     -0.81
BHL     Berkshire Hills Bancorp    31.46     -1.74
STLY    Stanley Furniture Inc      27.50     -1.31




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