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Daily Newsletter, Tuesday, 10/07/2003

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PremierInvestor.net Newsletter                Tuesday 10-07-2003
                                                   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:      Bears on the Run
Watch List:       GNSS, POWI, GDT, LF and more!
Market Sentiment: Bulls 5, Bears 0

=================================================================
MARKET WRAP  (view in courier font for table alignment)
=================================================================
      10-07-2003           High     Low     Volume Advance/Decline
DJIA     9654.61 + 59.60  9654.61  9536.02 1.56 bln   1899/1260
NASDAQ   1907.85 + 14.40  1907.88  1878.59 1.82 bln   1906/1281
S&P 100   519.64 +  2.60   519.64   513.05   Totals   3805/2541
S&P 500  1039.25 +  4.90  1039.25  1026.19
W5000   10090.78 + 50.50 10090.78  9968.80
RUS 2000  520.77 +  4.05   520.78   513.56
DJ TRANS 2800.38 +  3.70  2803.26  2774.82
VIX        19.41 -  0.10    20.14    19.40
VXN        29.30 -  0.12    30.17    29.15
Total Volume 3,625M
Total UpVol  2,521M
Total DnVol  1,045M
52wk Highs  731
52wk Lows    15
TRIN       0.88
NAZTRIN    0.58
PUT/CALL   0.83
=================================================================

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


Bears on the Run

Not believing their eyes the bear population is running for
cover. Seeing the indexes at 52-week highs as October earnings
begin is such a contradiction of events that unbelieving bears
continue to short and continue to get trampled by the bulls.
The last gasp may have been seen today with the stop at the
contract highs on the futures. An upward break on Wednesday
could be the bears signal to head for a warm cave for the
next few months.

Dow Chart


Nasdaq Chart


The morning started calm enough with the weekly Chain Store
Sales rising +1.3% on the strength of early Halloween sales.
The date for reporting September sales is this Thursday and
we are expecting to see sales fall from their August levels.
Competition is reducing prices and making gains in total
dollar volume difficult. The stores may be selling more items
but they are getting less for them. Wal-Mart is killing all
the categories including food. There are no more tax checks
in the pipeline and cash is going to be tight through the
holidays.

August Consumer Credit rose +$8.2 billion compared to
estimates of only $5.8 billion and $6.1 billion in July. The
gains were driven by the continued zero interest on auto loans
and a new component of student loans. This was the first month
that loans made by Sallie Mae or directly by the government
were included in the totals. Despite the gains in the headline
number the overall pace of credit is growing at the slowest
pace in a decade.

Ten Year Yield Chart


The market opened down today on worries over the weak dollar
but when the drop did not intensify investors rushed in to
buy the dip. The markets traded all over the charts but did
not make a major directional move until 2:PM. Bonds closed
down with ten year yields rising to 4.24% at the close. The
dollar fell to a three month low on global worries about the
deficit. The government is selling another $71 billion in
notes this week and that supply is also depressing bonds.
A fall in the dollar can cause cash to flow out of stocks
and back overseas to avoid a greater currency translation
loss in the future. On the flip side a lower dollar helps
increase profits for U.S. corporations. A slow decline would
help stocks but a rapid decline would accelerate investing
decisions by foreigners and could hurt the market. The
dollar dropped under 110 Yen and the U.S. Dollar Index fell
to 91.91. The index is only a couple of points from its
June lows and should that fail it could get ugly. The lack
of an intervention against the Yen at 110 was also a worry.
That level was defended last week by Japan. Traders fear
that should Japan stop buying dollars to keep the Yen from
rising then they may stop buying treasuries as well. A break
under the June lows could setup a test of the 1995 lows
in the low 80s and ripple currency on a global basis.

US Dollar Index Chart


The markets are continuing their stealth rally but some of
the camouflage started coming off this afternoon. Since the
big move last week to punctuate this five day winning streak
the markets have moved up slowly as they consolidated those
big gains. Each day had moments of doubt where the averages
traded down just enough to give bears confidence to short
before bulls slowly increased their positions. The result
was another round of short covering. The Dow spent almost
an hour at the 9550 level this morning (-50) and after a
late morning rebound it retraced once more to test it again.
That was just in case there were some bears not yet convinced
to short the five days of gains. Once the bears jumped on
the train it was derailed by the bulls and went vertical
at 2:PM. The Dow closed only five points from the 52-week
closing high at 9659. The Nasdaq closed at 1907 and only
two points from its 52-week closing high.

These gains are simply amazing for multiple reasons. First
they are coming in a typically bearish period. Secondly
because of the magnitude. The five-day string for the Dow
is now up +379 points and the Nasdaq +117. These gains in
front of imminent earnings are also incredible. It brings
back memories of the bubble years where investors bid up
stocks in front of earnings expecting outstanding results.
Those outstanding results better appear or trouble will be
in our future. Analysts are positively giddy about the
potential for Q3. The earnings warnings season has closed
and other than SUNW there were no really high profile
companies and very few announcements. This has prompted
analysts to raise estimates again only a day before the
earnings flood begins. According to First Call this is the
first quarter since Q2-2000 that earnings were revised up
this close to the announcements. They have jumped from
Q3 and Q4 and are now upgrading Q1. The Q1 estimates rose
from +13% to +16%. That may sound anemic compared to the
estimates of +20% for Q3 and +26% for Q4. That is because
the year over year comparisons become much harder once you
get to 2004. For 2003 we are comparing against a lackluster
2002 that was still in a slump. For 2004 we will be
comparing to the earnings rebound which began in 2003.

If the future earnings follow the trend for today then we
do not have anything to worry about. PEP started the ball
rolling with a +13% rise in profits and raised its guidance
to the high end of previous levels. Sales were up +8.4%.
YUM beat estimates and said full year gains would be higher
than current estimates. The first Dow component to announce
was Alcoa and they beat estimates by three cents and posted
a +45% gain over the same period last year. Sales were less
than expected but the aftermarket traders did not appear to
care. They said shipments were the highest since Q1-2001.
If this trend continues we are going to have a blowout
quarter.

That concept of a blowout quarter is causing many people
grief. There are those that believe most earnings have been
on cost cutting and not revenue increases and they question
the potential for another quarter of big gains. Others just
question strong earnings in October period because the
summer quarter period is typically weak. Others simply think
that even if the earnings are strong the market is fully
priced. Those who think the market "is all dressed up with
nowhere to go" could be very surprised. Most already are.
The market simply is refusing to go down despite the almost
unanimous sentiment that it should at least profit take some
before moving higher.

There is an underlying bid to the market and it is not
getting any weaker as the calendar moves forward. This bid
is buying every dip and frustrating the bears to the point
where a credible short attempt is becoming less likely as
each day passes. Shorts are getting killed on a daily basis.
The markets are opening down with the appearance of a
breakdown and then bouncing back at midday. Late in the
afternoon buyers appear and we move higher forcing the
shorts from the morning to cover. It appears the big money
is waiting for each days action to run its course and with
no sustained drop by late afternoon they put that cash to
work. According to the tape there are large baskets of
stocks being bought late each afternoon. Not specifically
individual issues but huge blocks of SPDRs and Qs.

This supports the theory that hedge funds, 6000 of them with
over $600 billion to invest, are playing the momentum game.
Mutual funds may be helping by purchasing these baskets in
lieu of individual stocks. They would do this to profit
from the market move while waiting from any potential dip
to buy individual stocks. They can exit these baskets in
an instant where selling dozens of individual stocks during
a market event could subject them to more risk than they
are willing to assume. As long as these players can keep
the momentum cycle going then they will keep pressing
their bets. Nobody wants to be left out of the market if
we are going to have an October rally instead of a dip and
this is the easiest way to do it.

Complicating this rally is the light volume. NYSE volume on
Monday was less than one billion shares. On Tuesday there was
only 1.27 billion despite the close near the highs. As Art
Cashin described it, "the rally has all the excitement of
a dance at a nursing home." The NYSE advancing volume beat
declining 2:1 and it was the fifth consecutive day the down
volume was under 600 million shares. The Nasdaq was closer
to 3:1 in favor of up volume. New 52-week highs have been
over 700 for three consecutive days.

What we have here is a picture of a broad based up move with
no sellers and limited conviction. Conviction would be a 2B
share day and 4:1 or 5:1 up to down volume. If the bulls
could get a couple more positive earnings announcements we
could really have a party but they are going to have to find
some new money. As one trader put it, "all the old money is
either in the market on the long side or waiting on the
sidelines to short it. The only gains we are seeing are from
new fund flows." The context of the comment was "everybody
that wants to be long is long."

Regardless of the reason the Dow is up +379 points in five
days and is five points from the closing high. That alone
should cause traders to rethink adding new money to the
market. It is not because the market cannot move higher but
because of the overbought conditions from five days of gains.
The contrary viewpoint is the -50 point drop at the open
today and again at 1:PM. That was our intraday profit taking
correction. The bulls had two chances to sell or better yet
were faced with two selling events and they decided to hold
instead of dump stocks. We are seeing a rolling consolidation
and the small gains yesterday and today were a tribute to
the lack of selling interest.

This week has been strangely quiet on the economic front
and tomorrow is no exception. We have the weekly Mortgage
Applications and Wholesale Trade. Neither are normally
market movers. On the earnings front YHOO leads the list
with COST, BRO, DNA, SONS, SVU, SBL and WIN announcing.
Obviously YHOO and COST are the majors with COST before
the open and YHOO after the close. The key to Q3 earnings
is not if they beat the street on earnings per share but
how did they do on revenue. More earnings from cost cutting
will not keep the rally going. We need to see gains in
revenue to make it stick. As far as a trading for this
week, until the recent pattern fails, just buy the morning
dip and sell at the close. Eventually that pattern will
fail but until then, party on!

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

Genesis Microchip Inc. - GNSS - close: 14.69 change: +1.64

WHAT TO WATCH: Blast off!  Shares of GNSS have really been
rocking over the past three days, with Friday's action bringing
the stock right to month-long resistance.  But today, the bulls
took charge, delivering a 12.5% gain on double the average
volume.  Entries at this lofty level seem pretty aggressive,
following the sharp gains of the past 3 sessions, but a pullback
and rebound from above $13 looks like a solid entry point.
Target a move to next resistance in the $16.50-17.50 area




---

Power Integrations, Inc. - POWI - close: 39.68 change: +2.74

WHAT TO WATCH: Breakouts are once again becoming the rule, rather
than the exception and POWI has been delivering them on a regular
basis.  Today the stock broke through the $37.50 highs set in
late September, with a vertical launch to close near the highs of
the day just under $40.  If the stock follows the same pattern of
the past few months, then we don't want to chase it higher.  We
need to wait for the pullback to confirm broken resistance as new
support and take advantage of that entry point ahead of the next
breakout.  That makes the $37.50 area our target for the next
pullback entry, with the stock likely to continue working higher
in its ascending channel.




---

Guidant Corp. - GDT - close: 45.73 change: -1.22

WHAT TO WATCH: The broad markets may be flirting with a breakout
over major resistance, but not so for GDT.  The stock can't seem
to get out of its own way and is right on the verge of breaking
major support.  Technically, that support already broke with
today's drop under $46, but there's still a bit more support near
$45.50 at the bottom of the July 14th gap.  Look for entries on a
break below today's intraday low ($45.46) and target a drop
towards the 200-dma ($40.48).




---

Leapfrog Enterprises - LF - close: 44.71 change: +1.34

WHAT TO WATCH: It seems investors can't get enough of LF, a
leader in children's education products.  Yesterday's breakout
from the month-long consolidation was impressive, but to have it
followed by today's 3% gain should really get the bulls to take
notice.  This feels like a chase at current levels, but a
pullback into the $41-42 level would provide a gift of an entry
point enroute to a probable move to at least the $50 level.




---


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

FCEL $14.55 - Alternate energy stocks have been getting pretty
volatile lately and FCEL's 8.25% gain on Tuesday certainly has
the look of some short-covering.  With volume running nearly 5
times the ADV and the stock moving very strongly this week, we're
thinking this may just be the beginning of a major breakout.
Look to enter on a pullback near the $13.00-13.50 area and target
a move into the $16.50-17.00 resistance area.

CFC $84.37 - Where's the top?  That's the question being asked by
the bears as CFC charges to one new high after another.
Tuesday's 2.44% rise put the stock at another new all-time high
and it doesn't show any signs of abating soon.  Look for a
pullback near the center of the rising channel ($82) and play
that bullish pattern as long as it lasts.  Look for a move to at
least $90.

PPP $48.10 - Variations on a theme, PPP broke out on Tuesday like
so many other stocks.  The $47 level has been solid resistance
for the past 6 weeks, but not anymore as the bulls blasted higher
on nearly double the average daily volume.  PPP has been moving
higher in a rising channel for nearly 2 years and is showing no
signs of letting up.  Target entries on a pullback near $46-47
and use a stop just under the 50-dma.



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


Bulls 5, Bears 0
- J. Brown

That's the current score for the month of October.  Bulls are
winning it 5 to nothing against the bears.  Traditionally, the
first week of October is very volatile and usually down but this
time we have a complete reverse of the seasonal trend.  The DJIA
isn't the only major average to make it five in a row either.
Aside from several U.S. indices, we also see the Japanese NIKKEI
index stretching its gains to five in a row.

The Q3 earnings season is thus far off to a healthy start.  Dow
component Alcoa (AA) announced after the bell tonight and beat
estimates by three cents while reporting a 45% jump over last
year.  PepsiCo (PEP) and Yum! Brands (YUM) also chimed in with
positive earnings performances, which should keep bulls eager for
more news and bears on the defensive.  There's been so much hype
and expectation built up around the Q3 numbers that if
corporations don't perform, the rally could quickly deflate.
Keep your fingers crossed, but so far so good.

Market watchers will also point out that the sheer breadth of the
markets is very positive.  The advance decline numbers have been
positive for so long that the rally, much like the old market
axiom, is rolling in like a tide that lifts all boats.  However,
even tides recede and after a 379 point gain in the DJIA and a
117 point rally in the NASDAQ they are definitely overbought and
in need of a pause.  Just remember, markets and stocks tend to
move in cycles both up and down.  A few days up are usually
followed by a couple of days down.  We're overdue for some profit
taking even if it just another chance to buy the dip or cover
some shorts.

One technical indicator I'll point out is the 5-dma on the ARMS
index.  This is a very short-term indicator and it's turn
bearish.  It may be a good time to follow up on those stop
losses.



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

Market Averages

DJIA ($INDU)

52-week High:  9686
52-week Low :  7197
Current     :  9654

Moving Averages:
(Simple)

 10-dma: 9453
 50-dma: 9390
200-dma: 8721

S&P 500 ($SPX)

52-week High: 1040
52-week Low :  768
Current     : 1039

Moving Averages:
(Simple)

 10-dma: 1015
 50-dma: 1005
200-dma:  934

Nasdaq-100 ($NDX)

52-week High: 1406
52-week Low :  795
Current     : 1392

Moving Averages:
(Simple)

 10-dma: 1345
 50-dma: 1318
200-dma: 1155


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

The VIX is still hovering new its lows as the broader indices slowly
drift higher.  The low volatility indicates very little fear by
investors and is normally seen as a contrarian indicator.  Unfortunately
or fortunately, depending on your market bias, this indicator has
not been very effective at predicting market tops lately, but then
the market has been breaking some season trends as well.

CBOE Market Volatility Index (VIX) = 19.41 -0.10
Nasdaq Volatility Index (VXN)      = 29.30 -0.12

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

          Put/Call Ratio  Call Volume   Put Volume

Total          0.83        569,979       474,980
Equity Only    0.60        470,286       282,602
OEX            0.83         29,155        24,273
QQQ            2.13         16,558        35,364


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

Bullish Percent Data

           Current   Change   Status
NYSE          72.7    + 0     Bull Confirmed
NASDAQ-100    74.0    + 1     Bear Confirmed
Dow Indust.   83.3    + 0     Bull Correction
S&P 500       78.4    + 1     Bull Confirmed
S&P 100       78.0    + 0     Bull Correction


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  0.78
10-Day Arms Index  1.21
21-Day Arms Index  1.20
55-Day Arms Index  1.06


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    1717      1886
Decliners    1091      1165

New Highs     262       344
New Lows        5         5

Up Volume   1014M     1269M
Down Vol.    522M      481M

Total Vol.  1557M     1817M
M = millions


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

Commitments Of Traders Report: 09/30/03

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

Wow!  It looks like the commercials traders went to sleep.  There
was almost no change in either the number of longs or number of
short positions.  Everyone must have been waiting on the September
Jobs report.  Small Traders were upping their bets with small
increases in both longs and shorts but still heavily long.


Commercials   Long      Short      Net     % Of OI
09/02/03      417,973   482,392   (64,419)   (7.2%)
09/09/03      418,958   486,209   (67,251)   (7.4%)
09/23/03      395,123   397,858   ( 2,735)   (0.0%)
09/30/03      395,713   397,577   ( 1,864)   (0.0%)

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
09/02/03      169,030    75,748    93,282    38.1%
09/09/03      176,401    81,444    94,957    36.8%
09/23/03      139,482    87,981    51,501    22.6%
09/30/03      144,681    96,801    47,880    19.8%

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

We did see some movement in the e-minis.  Commercials added about
50K new longs while only adding 14K new shorts.  Small Traders took
some money off the table with a redemption in their longs by more
than 40K.  However, small traders are still heavily bullish.


Commercials   Long      Short      Net     % Of OI
09/02/03      347,724   224,011    123,713    21.6%
09/09/03      370,909   237,610    133,299    21.9%
09/23/03      109,417   204,026   ( 94,609)  (30.2%)
09/30/03      163,828   218,991   ( 55,163)  (14.4%)

Most bearish reading of the year: (354,835)  - 06/17/03
Most bullish reading of the year:  133,299   - 09/02/03

Small Traders Long      Short      Net     % of OI
09/02/03       56,709   134,094   (77,385)  (40.6%)
09/09/03       59,692   130,270   (70,578)  (37.1%)
09/23/03      175,750    62,558   113,192    47.5%
09/30/03      131,698    65,259    66,439    33.8%

Most bearish reading of the year: (77,385)  - 09/02/03
Most bullish reading of the year: 449,310   - 06/10/03


NASDAQ-100

Much like the large S&P futures contracts, the commercial
traders appear to be asleep with very little change this
last report.  Small traders were also comatose with just a
couple of thousand new long contracts.


Commercials   Long      Short      Net     % of OI
09/02/03       37,002     55,379   (18,377) (19.9%)
09/09/03       44,677     62,369   (17,692) (16.5%)
09/23/03       32,648     42,565   ( 9,917) (13.2%)
09/30/03       33,571     42,993   ( 9,422) (12.3%)

Most bearish reading of the year: (21,858)  - 08/26/03
Most bullish reading of the year:   9,068   - 06/11/02

Small Traders  Long     Short      Net     % of OI
09/02/03       23,168    10,561    12,607    37.4%
09/09/03       28,788    13,370    15,418    36.6%
09/23/03       17,862     9,880     7,982    28.8%
09/30/03       19,803     9,917     9,886    33.3%

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

There seems to be a theme here for commericals... no movement.
This time the small traders joined them in their sit back and
wait mode.


Commercials   Long      Short      Net     % of OI
09/02/03       25,462    10,447   15,015      41.8%
09/09/03       25,807    10,756   15,051      41.2%
09/23/03       15,911     9,123    6,788      27.1%
09/30/03       16,561     8,932    7,629      31.5%

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
09/02/03        6,629    13,402   (6,773)   (33.8%)
09/09/03        7,429    13,796   (6,367)   (30.0%)
09/23/03        7,505     7,779   (  274)   ( 1.8%)
09/30/03        7,578     8,125   (  547)   ( 3.5%)

Most bearish reading of the year:  (8,777) - 10/12/01
Most bullish reading of the year:   8,523  -  8/26/03

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




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DISCLAIMER
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Copyright 2001 PremierInvestor.net - Do not duplicate or redistribute in any form
PremierInvestor.net Newsletter                Tuesday 10-07-2003
                                                   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:     Dishing Up A Breakout

Stock Splits/Announcements:  KRON, JBLU

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


EchoStar - DISH - close: 40.53  change: +0.03 - stop: 38.10*new*

Company Description:
EchoStar Communications Corporation (Nasdaq:DISH) serves over 9
million satellite TV customers through its DISH Network(TM), the
fastest-growing subscription television service in the nation.
DISH Network delivers advanced digital satellite television
services, including hundreds of video and audio channels,
Interactive TV, HDTV, sports and international programming,
professional installation and 24-hour customer service. DISH
Network is the leader in the sale of digital video recorders
(DVRs).

Why we like it:
This week, DISH completed a $2.5 billion debt offering.  The
company had previously announced that it planned to use the funds
garnered to repurchase debt and to bid for assets of bankrupt
Loral Space & Communications. With that out of the way, DISH
found support at its 10-dma and moved above the midline of its
rising regression channel.  Friday's candle also represented an
upside breakout of its recent bull flag.

It was that rising regression channel and the ascending triple
top breakout P&F buy signal that caught our attention.  As DISH
found support and climbed above the midline of its regression
channel, RSI and stochastics turned up, too, with MACD lines
approaching a bullish cross.  We like the way that DISH often
finds support from its rising 30-dma, sometimes piercing it
intraday but most times closing above the moving average.  We're
setting our stop at $37.49, just under the 30-dma and near the
bottom of the rising regression channel.

Entries can be found on a pullback and bounce from anywhere above
$39.00 or from a move over Friday's intraday high.  One caution
exists, however.  Although DISH created that ascending triple top
breakout P&F buy signal in late September, its original P&F buy
signal had an upside target of $41.00.  We note that the
September 3 high was $40.95, just under that original P&F buy
signal.  Momentum traders might consider waiting for a push above
that $41.00 original signal.  Our target is $45.00, although we
anticipate another bull-flag pullback near $42.00-42.50 when DISH
again hits the top of its rising regression channel.

(Note: Different quote sources have listed a $40.02 close for
DISH, rather than the $39.95 displayed on this chart.)

Why This is our Play of the Day
DISH isn't going to set any land-speed records moving to new
highs, but the steady method in which it has been advancing since
last October make it a hard target for the bulls to ignore.  The
ascending channel defines strong support at $38, with near-term
resistance coming into play near $43.  Currently sitting right in
the middle of that span, DISH is riding right along the center-
line of that channel and looks poised to breakout, at least if
the strong volume on Tuesday is any indication.  The stock has
been turned back from the $41 resistance level twice since early
September, but with each successive dip being shallower, all
signs point higher.  A dip into the zone between the 10-dma
($39.54) and 20-dma ($38.86) looks like the best way to enter on
a pullback.  But the most likely scenario for new entries looks
like a breakout over $41.  Enter according to your risk tolerance
and look for that $45 target to be achieved over the next few
weeks ahead of the company's 11/10 earnings report.  Note that
we've slightly raised our stop tonight to $38.10, keeping it just
below the bottom of the rising channel.

Annotated Chart of DISH:


Picked on October 3rd at  $39.95
Change since picked:       +0.51
Earnings Date:          08/13/03 (confirmed)
Average Daily Volume:   2.39 mln



==========================
Stock Splits/Announcements
==========================


KRON tracks down a 3-for-2 stock split

Before today's opening bell, Kronos Inc's (NASDAQ:KRON) Board of
Directors declared a 3-for-2 stock split of its common shares.

The payable date on the stock split is October 31st, 2003 to
shareholders on record October 20th.  After the split KRON will
have approximately 31 million shares outstanding.  This will mark
KRON's fourth stock split with previous splits occurring in
January 1996, March 1999 and November 2001.


About the company:
Kronos Incorporated is a single-source provider of human
resources, payroll, scheduling, and time and labor solutions.
Kronos' best-in-class Employee Relationship Management solution
enables organizations to reduce costs and increase productivity,
put real-time information in the hands of decision makers, align
employee performance with organizational objectives, and improve
employee satisfaction. More than 40,000 organizations trust Kronos
to solve their employee-centric business challenges.
(Source: Company Press Release)

---

JBLU soars into a 3-for-2 stock split

Before today's opening bell, JetBlue Airway's (NASDAQ:JBLU) Board
of Directors declared a 3-for-2 stock split of its common shares.

The payable date on the stock split is November 20th, 2003 to
shareholders on record November 10th.  This is JBLU's first split
since their 3-for-2 stock split December of 2002.


About the company:
JetBlue is a low-fare, low-cost passenger airline, which provides
high-quality customer service. JetBlue operates a fleet of 47 new
Airbus A320 aircraft and is scheduled to place into service
another six A320s by the end of 2003. The airline recently placed
an order for 100 EMBRAER 190 aircraft with options for an
additional 100. The first EMBRAER 190 is scheduled to be delivered
in mid 2005. All JetBlue aircraft feature roomy all-leather seats
each equipped with free live satellite television, offering up to
24 channels of DIRECTV. Programming at every seat.

Based out of New York City's John F. Kennedy International
Airport, JetBlue currently operates 186 flights a day and serves
22 destinations in 11 states and Puerto Rico and plans to commence
service from Boston, Massachusetts beginning January 7, 2004. With
JetBlue, all seats are assigned, all travel is ticketless, all
fares are one-way, and a Saturday night stay is never required.
(Source: Company Press Release)



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

IMO     Imperial Oil Ltd           39.25     +0.65
DVN     Devon Energy Corp          48.70     +0.78
RGS     Regis Corp                 35.17     +1.47
CCRT    CompuCredit Corp           19.41     +1.10
DCEL    Dobson Communications       8.90     +0.74

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

TSAI    Transaction System Arch    19.32     +1.38
ASYT    Asyst Technologies         17.31     +1.18
WSTL    Westell Tech                9.24     +1.24
FCEL    FuelCell Energy            14.49     +1.05
TERN    Terayon Communication       7.71     +1.50
DTAS    Digitas Inc                 8.53     +1.03

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

NTT     Nippon Telephone & Tel     24.93     +1.59
CVS     CVS Corp                   33.61     +1.48
CFC     Countrywide Financial      84.37     +2.01
CDWC    CDW Corp                   60.94     +1.05
PPP     Pogo Producing             48.10     +1.14
LF      Leapfrog Enterprises       44.71     +1.34
RI      Ruby Tuesday Inc           26.25     +1.92

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

GDT     Guidant Corp               45.73     -1.22
FDP     Fresh Del Monte            23.68     -2.72

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

NX      Quanex Corp                34.37     -0.58



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