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Daily Newsletter, Wednesday, 10/22/2003

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PremierInvestor.net Newsletter                Wednesday 10-22-2003
                                                    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:      Drug-Induced Decline

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)

=================================================================
MARKET WRAP  (view in courier font for table alignment)
=================================================================
     10-22-2003            High     Low     Volume Advance/Decline
DJIA     9598.24 -149.40  9742.05  9580.24 2.07 bln    766/2055
NASDAQ   1898.07 - 42.83  1923.33  1897.36 1.71 bln    752/2338
S&P 100   521.76 -  8.36   521.76   512.36   Totals   1518/4393
S&P 500  1030.36 - 15.67  1076.03  1028.39
RUS 2000  513.15 - 12.38   525.53   513.15
DJ TRANS 2818.01 - 46.85  2863.90  2817.44
VIX        17.67 +  1.12    17.98    17.10
VXO        19.00 +  1.18    19.59    18.49
VXN        25.68 +  1.33    25.87    25.04
Total Volume 4,136M
Total UpVol  3,094M
Total DnVol    990M
52wk Highs     332
52wk Lows       32
TRIN          1.51
PUT/CALL      0.98
=================================================================

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


Drug-Induced Decline
by James Brown

It proved to be a tough day for bulls on Wall Street.  Major
averages lead a broad-based decline with disappointing earnings
results from three Dow components and a number of drug stocks.
Meanwhile a strong decline in the U.S. dollar, despite Secretary
Snow's attempt to bolster the currency, sent investors into the
safety of bonds and gold.  December gold futures rose $4.80 to
close at $386.80 an ounce.  By the closing bell the DJIA had lost
nearly 150 points (1.53%), the NASDAQ Composite lost almost 43
points (-2.2%) and the S&P 500 dropped more than 15 points
(-1.49%).  Only two out of dozens of major sector indices were
green, specifically the XAU gold & silver index and the UTY
utility index and then both were only up fractionally.

Foreign exchanges were little help today.  Asian stocks were
lower with the Japanese NIKKEI losing almost 142 points (-1.29%)
to 10,889.  The dollar's drop to 1.089 against the yen a likely
culprit.  European equities fared worse.  With the euro rising to
1.182 against the dollar the English FTSE lost 1.53% and the
German DAX dropped 2.5%.  U.S. markets dropped quickly at the
open and volume was rather modest by midday.  Unfortunately, the
sell-off picked up steam as we rolled into the closing bell and
the final volume numbers were heftier than expected indicating
some conviction by the sellers.

The market internals were bearish as one would expect.  Declining
stocks out numbered advancing stocks 20 to 7 on the NYSE and 23
to 7 on the NASDAQ.  Down volume was better than three times up
volume on both exchanges.  Overall volume tipped two billion
shares on the NYSE and 1.7 billion on the NASDAQ.  Professional
traders were not worried by the decline.  Given the strong run up
into the Q3 earnings season some profit taking was expected.
Many are looking for a good pull back to gauge potential new
entries heading into the fourth quarter.

Chart of DJIA:


Chart of NASDAQ:


It has been weeks since we've seen a triple-digit loss in the
DJIA.  Only three components managed to close in the green today;
those were MCD, MMM and SBC.  Leading the decliners were MRK, JPM
and DD.  It was not a coincident that all three reported their
earnings today.  Dow component DuPont (DD) reported a loss of 88
cents a share but if you exclude a $1 billion asset write-down
then earnings appear to be 13 cents, which were 2 cents above
estimates.  The company did reaffirm its full year outlook for
$1.60 a share, which is in line with analysts but investor's sold
the news.  After consolidating for a month under its 200-dma the
stock hit a new relative low with a 4.27% loss on strong volume
of 8.4 million shares.

Fellow Dow component and second largest bank in the U.S. is
J.P.Morgan (JPM) who announced Q3 earnings of 78 cents a share.
Today's result beat estimates by 2 cents but the company's
revenues of $7.53 billion were significantly under analyst
estimates of $8.6 billion.  Shares fell 4.6% to its simple 50-dma
and led both the BKX and BIX banking indices lower.

The largest drag on the DJIA was drug company Merck & Co (MRK).
Not only did MRK miss estimates of 85 cents by 2 cents but they
missed the revenue number and guided lower.  The drug titan also
announced it would cut 4400 jobs and launch a new distribution
program to U.S. wholesalers.  The stock gapped lower and closed
down 6.5% to a new 52-week low.

MRK wasn't the only drug company to disappoint today.  Schering-
Plough (SGP) announced a Q3 loss of 18 cents with sales falling
16% to $2 billion.  The company blamed a drop in sales for its
Claritin allergy drug and its Intron hepatitis treatment.  Wyeth
(WYE) also reported a Q3 loss.  Formerly American Home Products
Corp, the New Jersey-based Wyeth blamed litigation charges and
increased reserves to handle diet drug fen-phen claims for the 32
cent per share loss.  Excluding charges WYE's income would have
been 65 cents a share.  Investors sold the news and WYE hit its
200-dma by mid afternoon but rebounded off its low for a 5.45%
loss.

The biggest drug maker on the planet, Pfizer (PFE) also reported
Q3 earnings today.  The drug giant earned 47 cents a share, which
is 3 cents better than estimates but only if you discount the
acquisition charges related to its Pharmacia merger.  Probably
more important was PFE's fourth-quarter guidance, which they
lowered from 54 cents a share to 51 cents.  The standout drug
maker to report today was GlaxoSmithKline (GSK).  Britain's GSK
said profits were up 20 percent for the quarter but told analysts
that exchange rates could eat up 4 to 5 percent.  At the end of
the day the DRG drug index had lost 3.26% to close under support
at 310 and its simple 200-dma.

Another major story today was in the Disk Drive sector.  Seagate
Technology (STX) reported earnings that were 4 cents better than
expected with net income rising to 40 cents a share on revenues
that rose 10% for the quarter.  Why then did the stock plummet
almost 25% to $22.28, dragging the entire sector down with it?
Directly affecting investor sentiment for the stock was news that
STX had amended a lock-up agreement that would now allow insiders
to immediately sell more than 20 million shares instead of a
previous date in early 2004.  Secondly, the company disclosed
that the SEC had asked for copies of all analyst reports for the
last 2.5 years.  That's generally not a good thing either.  This
one-two punch hit the DDX for a 7% loss.  Major losers in the
sector besides STX were HTCH (-8.65%), STK (-13.6%) and MXO
(-16.99%).

I could go on with more earnings news but the focus was on the
earnings misses not the successes.  Of the nearly 250 companies
in the S&P 500 that have already reported for the season, 65
percent of them have beaten estimates.  Thomson Financial is
reporting that corporate profits have risen an average of 18.6
percent, which is better than the pre-season estimates for a jump
in the 16 percent range.  That certainly sounds like success to
me and traders are just cashing in on the good news to take some
profits off the table.

Now it looks like we'll be seeing a repeat of today's action
given some of the after hours news.  Chip stock KLA-Tencor (KLAC)
reported earnings after the close with net income at 18 cents or
1 cent better than the estimates.  The bad news was revenues fell
more than 15% and the company is guiding lower for the December
quarter.  Looking ahead KLAC says next quarter could be in the 18
to 19 cent range while analysts had been looking for 23 cents a
share.  KLAC expects next quarter revenues to be in the $320-325
million area, below consensus of $348 million.  KLAC management
said some key sales contracts failed to close in September and
that customers are still cautious about the rest of 2003.  They
hope that the general optimism for next year (2004) will start to
turn into sales but the proof may be in the post-Christmas
pudding (Q1 '04).  Shares were down about $4 in after hours and
the entire chip sector is bound to react negatively to the
conference call.

A heavy SOX is not going to benefit a NASDAQ that closed under
the 1900 level and the next stop for the Composite could be the
simple 50-dma near 1850.  Tomorrow the earnings parade will
continue and the major announcement on the books is Microsoft
(MSFT) who announces after the close.  MSFT management tends to
be cautious and their conference calls almost always tend to be
disappointing (to manage our expectations for next quarter).
However, should they surprise us with an upbeat call then the
mood could change.

Don't look now but that signal in the VXO (old VIX) yesterday is
getting some market confirmation today!



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

RY      Royal Bank of Canada       49.75    +0.73
SRCI    Sicor Inc                  24.20    +3.41
RYL     Ryland Group Inc.          84.40    +0.85
IPCR    IPC Holdings Ltd           37.00    +1.01


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

TUP     Tupperware Corp            15.32    +1.01
ISSX    Internet Security System   17.01    +2.54
HDWR    Headwaters Inc             17.41    +1.82


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

WM      Washington Mutual Inc      41.77    +1.30
BLS     Bellsouth Corp             25.00    +1.22
CNI     Canadian Natl Railway      57.93    +1.73
DGX     Quest Diagnostics Inc      63.99    +1.19


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

MRK     Merck & Co                 45.72    -3.19
JPM     JP Morgan Chase & Co       34.98    -1.69
AMGN    Amgen Inc                  60.30    -3.35
WYE     Wyeth                      43.30    -2.50
SLB     Schlumberger Ltd           47.95    -3.41
FRE     Freddie Mac                57.03    -1.50

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

NSANY   Nissan Motor Co Ltd (ADR)  23.19    -0.42
TYC     Tyco Intl Ltd New          21.45    -0.57
ING     ING Groep Nv               20.25    -0.47
HIT     Hitachi Ltd                58.47    -3.08
AMZN    Amazon.Com Inc             54.03    -5.32



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Do not duplicate or redistribute in any form
PremierInvestor.net Newsletter                Wednesday 10-22-2003
                                                    section 2 of 2
Copyright ) 2003, All rights reserved.
Redistribution in any form is strictly prohibited.

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

Tech Stocks
  Bearish Play Updates:  FDS, TTWO

Active Trader (Non-tech)
  New Bullish Plays:     IGT
  New Bearish Plays:     MGAM, MHK
  Bullish Play Updates:  DISH, TYC

High Risk/Reward
  New Bearish Plays:     HLTH
  Bullish Play Updates:  MPS
  Bearish Play Updates:  GILD
  Closed Bullish Plays:  SNE
  Closed Bullish Plays:  BEV

Stock Splits/Announcements:  ERTS, SYMC


==================================================================
Net Bulls (NB) Tech Stock section
==================================================================

============
PLAY UPDATES
============

  --------------------
  Bearish Play Updates
  --------------------

Factset Research - FDS - close: 44.05 change: -0.43 stop: 46.01

FDS offered the bounce-and-rollover entry we hoped to see this
week, with a bounce up toward the 21-dma and a rollover from
there.  With MACD lines separating and turning down, it may also
offer the momentum entry on a drop below $43.00.  A trade below
$43.00 will also create a new P&F sell signal.

Although we wish FDS had declined more steeply during Wednesday's
market selloff, we have noticed some encouraging signs in this
bearish play.  Volume dropped as FDS headed up to test that 21-
dma.  That's a reassuring sign.  RSI continues to turn down along
a trendline of lower highs.  Stochastics are less conclusive,
however, showing a tendency to hook up again from a higher low.
If that happens, FDS may attempt another bounce.  New entries
could still be sought on a rollover beneath the 21-dma as well as
on that breakdown through $43.00.

Annotated Chart for FDS:


Picked on Oct 17 at  43.65
Change since picked: +0.40
Earnings Date:    09/16/03 (confirmed)
Average Daily Volume:  393 thousand



---

Take-Two Interactive - TTWO - cls: 38.43 chg: -1.56 stop: 40.90*new*

It looks like we may have caught a top in shares of TTWO, as this
aggressive bearish play is definitely moving in our favor.  After
last Friday's downdraft, the stock found support just below $39
and rebounded on Tuesday to close just under $40.  That bounce
turned out to be a great entry, as TTWO gapped down today and
proceeded lower into the close, shedding nearly 4% by the end of
the day.  So far, it is just normal profit taking after running
to new all-time highs recently.  But we could be looking at a
sell-the news event in the wake of competitor ERTS' earnings
report after the close.  ERTS is trading down nearly $5 after
beating estimates, guiding higher and announcing a stock split.
That definitely looks like selling the news.  TTWO is trading
down in sympathy, currently at $37.00 in the afterhours session
vs. its $38.43 regular session close.  There's some pretty decent
support in the $36-37 area and a near-term rebound would not be
surprising.  Conservative traders may look to harvest some near-
term gains on a rebound from that area.  Our next viable shot at
a solid entry point is likely to come from a failed rebound in
the $38.50-39.00 area.  Lower stops to $40.90, which is just
above yesterday's intraday high.

Picked on October 19th at  $39.34
Change since picked         -0.91
Earnings Date            09/03/03 (confirmed)
Average Daily Volume =       1.08 mln





==================================================================
Stock Bottom / Active Trader (AT) section
==================================================================

=========
NEW PLAYS
=========

  -----------------
  New Bullish Plays
  -----------------

INTL Game Tech - IGT - close: 31.00 change: -0.42  stop: 28.79

Company Description:
IGT (www.IGT.com) is a world leader in the design, development
and manufacture of microprocessor-based gaming and lottery
products and software systems in all jurisdictions where gaming
and lotteries are legal.  (Source:  Company Press Release.)

Why We Like It:
IGT came to the attention of several of our writers on Wednesday.
It trades on a P&F triple top breakout signal with an upside
target of $37.00, but its bar chart also offers hints of possible
strength.  Last week, IGT achieved an all-time high.  It pulled
back, and then Tuesday of this week achieved a new all-time
closing high.

Wednesday, IGT offered a glimpse into an ideal bullish entry.
IGT printed an inside-day candle.  Many might be familiar with
inside-day candle entries.  A bullish entry could be found on a
move above the previous day's high.  We're setting a $31.50
trigger for this play, in keeping with an inside-day entry.
We're setting a first target of $35.00, although retaining that
P&F $37.00 as a possible second target.  Our initial stop will be
$28.79, but conservative traders might keep that inside-day
technique in mind and set stops just below Tuesday's low, perhaps
at the 10-dma.

The recent new highs were achieved as IGT announced that it had
received a large order from Harrah's Entertainment (HET).  HET
plans to buy 11,000 of IGT's coinless gaming machines.  HET's
decision confirmed IGT's strength, with one headline reading "IGT
Hits Cashless Jackpot."

Annotated Chart for IGT:


Picked on Oct 03 at  31.00
Change since picked: +0.00
Earnings Date:    11/4/03 (confirmed)
Average Daily Volume:  2.7 million




  -----------------
  New Bullish Plays
  -----------------

Multimedia Games - MGAM - close: 35.34 change: +0.16 stop: 38.75

Company Description:
Multimedia Games, Inc. is a supplier to the Native American
gaming market of both interactive electronic games and the
electronic player stations (EPS) on which the company's games are
played. The Company delivers Class II games to its customers
through a telecommunications network, Betnet, which links EPS
located both within and among Class II gaming facilities,
enabling players to compete against one another in the same game
to win pooled prizes. Multimedia Games designs and develops
software, content, networks and systems that provide its
customers with comprehensive gaming systems. The Company has
focused its development and marketing efforts on Class II gaming
systems and Class III video lottery systems for use by Native
American tribes throughout the United States.

Why we like it:
Following a near-vertical rise in late September and early
October, MGAM finally ran out of steam at $42 after tagging a
fresh all-time high.  Kicking off the current downdraft was CIBC
downgrading the stock to Sector Perform last Friday.  While the
price reaction was muted on Friday, the selling really picked up
steam yesterday, with $38 support giving way on big volume.
While today's action had the stock holding firm at $35 support,
the intraday action looks pretty ominous with a sharp drop at the
close.  The PnF chart hasn't given a Sell signal yet, but it has
just issued a High Pole Warning due to the sharp rise and
subsequent reversal.  A trade at $33 would give that PnF Sell
signal and generate a tentative bearish price target of $23,
which just happens to be the site of the bullish support line.

Isn't it interesting that the top of the late-September gap is
right at $33?  We're going to advocate jumping the gun a bit here
in anticipation of that breakdown coming in the next couple weeks
leading up to earnings on November 10th.  A failed rebound in the
$36.50-37.00 area would make for an ideal entry point ahead of
the anticipated breakdown.  With potential support near $34, a
momentum entry below $35 carries more risk than we're normally
comfortable with, although that might just work.  We'll initially
target a drop to $30 at the bottom of that gap, using an initial
stop at $38.75, which is above yesterday's high, as well as the
10-dma ($38.72).

Annotated Chart of MGAM:


Picked on October 22nd at $35.34
Change since picked        +0.00
Earnings Date           11/10/03 (unconfirmed)
Average Daily Volume =     486 K


---

Mohawk Industries - MHK - close: 68.92 change: -1.08 stop: 72.50

Company Description:
Mohawk Industries and its subsidiaries, are producers of
floorcovering products for residential and commercial
applications in the United States.  The company is the second
largest carpet and rug manufacturer, and a manufacturer, marketer
and distributor of ceramic tile and natural stone.  Through its
carpet and rug business, MHK designs, manufactures and markets
carpet and rugs in a broad range of colors, textures and patterns
and is a producer of woven and tufted broadloom carpet and rugs,
principally for residential applications.

Why we like it:
Beating earnings estimates last week wasn't enough to keep shares
of MHK on the rise.  On the contrary, the stock has reversed
sharply from the $75 resistance level and has been plunging lower
on strong volume.  It wasn't the earnings that investors focuses
on, it was the company's lowered guidance.  MHK plunged nearly $5
last Friday, finding support at $70, which held throughout Monday
and Tuesday.  But with the broad market finally cracking to the
downside today, MHK plunged through that support and now looks
destined for $65 support and possibly lower levels after that.
Yesterday's trade at $70 generated a fresh PnF Sell signal and
today's downward continuation lengthened the bearish vertical
count to $62.  We'll err on the side of caution and look for a
decline to solid support at $65 as our profit target.

Ideally, we would have liked to initiate the play prior to the
break below $70, but that wasn't possible.  The good part about
coming in after the support break is that we already have
confirmed weakness to work with.  A rebound that fails in the
$70.00-70.50 area would be a nearly perfect entry point.  Of
course, a break below today's low ($68.86) looks like a solid
entry point as well.  There is some chart support near $67.50,
but that should only slow the descent, not reverse it.  We're
initially setting our stop at $72.50, which is above the top of
Monday's failed rebound, as well as the 50-dma (currently
$72.31).

Annotated Chart of MHK:


Picked on October 22nd at $68.92
Change since picked        +0.00
Earnings Date            1/15/04 (unconfirmed)
Average Daily Volume =     411 K




============
PLAY UPDATES
============

  --------------------
  Bullish Play Updates
  --------------------

EchoStar - DISH - close: 39.00 change: -0.35  stop: 38.10

The waiting is over.  DISH was once again left standing at the
altar when the court awarded Loral's satellite sales to DirecTV.
Three state attorneys appeared before the U.S. bankruptcy court
making the dispositions, warning of competition concerns if DISH
were awarded the satellite sales.  The move was a blow to DISH's
hopes.  This week, DISH showed the effects of the disappointment,
dropping below the 21- and 30-dma's.  The decline stopped just
short of our $38.10 stop.

We don't like the big volume this week or the bearish oscillators
and we would have liked to have seen a close over the 30-dma.
However, that decline also stopped on the bottom support of the
ascending regression channel, with Wednesday's candle bouncing
from that support.  Because of that bounce, we're willing to hold
onto the play, looking for a bounce back above those moving
averages and back toward the recent highs.  If DISH continues to
move up from here, it will have completed another higher low.

Some might consider new entries at this level, but the high
volume during the recent declines and the bearish oscillators
make those entries high risk.  Conservative traders might wait
for that momentum entry on a move above $41.00.

Annotated Chart for DISH:


Picked on Oct 03 at  39.95
Change since picked: -0.95
Earnings Date:    08/13/03 (confirmed)
Average Daily Volume:  2.2 million



---

TYCO - TYC - close: 21.45 change: -0.57 stop: 20.99

Wednesday, a Tyco Electronics business unit secured a $15 million
contract with the City of Milwaukee, but most news continues to
center on the trial of ex-CEO Kozlowski.  Wednesday's market
weakness affected TYC strongly and quickly, however, with TYC
opening just above our stop. TYC bounced, but it could not hold
onto all the gains and retreated by the end of the day.  The
stock closed above its ascending trendline and the 30-dma, but
not the 21-dma.

A study of an intraday chart shows that the biggest volume spikes
occurred on red candles, a troubling discovery.  Since TYC
bounced from above the trendline and the 50-dma, we're going to
keep the play open, but we would not advise new entries at this
time.

Annotated Chart for TYC:


Picked on Sep 21 at  21.90
Change since picked: -0.45
Earnings Date:    11/04/03 (confirmed)
Average Daily Volume:    8 million





==================================================================
HIGH RISK/HIGH REWARD (HR) section
==================================================================

=========
NEW PLAYS
=========

  -----------------
  New Bearish Plays
  -----------------

WebMD Corp - HLTH - close: 7.79 change: -0.19 stop: 9.51

Wednesday brought big news for WebMD investors.  The company said
it would buy Medifax-EDI, a privately held company.  It will pay
$280 million, including debt it will assume.  Some analysts
believe WebMD is paying too much, with one analyst calling the
fee a "king's ransom" in a Reuters article.

WebMD dropped on the news, closing at a level not seen since mid-
November, 2002.  While that action was satisfying, we're puzzled
that the drop was not steeper, especially on a day when markets
declined and both the INX.X, the CBOE Internet Index, and the
HMO.X, the Morgan Stanley Healthcare Index, declined.  WebMD
clings to the midline resistance of its descending regression
channel, not yet dropping away as we expected it to do once it
reached a critical level. WebMD's chart shows that it does
sometimes drop precipitously toward the bottom of its channel.

Those seeking a new entry might consider a bounce and rollover
from anywhere under $8.00, or could enter on a momentum push
below Wednesday's low.  We're still targeting $6.50.

Annotated Chart for HLTH:


Picked on Oct 17 at  $7.93
Change since picked: -0.14
Earnings Date:    11/06/03 (confirmed)
Average Daily Volume:  4.9 million




============
PLAY UPDATES
============

  --------------------
  Bullish Play Updates
  --------------------

MPS Group INC. - MPS - close: 10.17 change: -0.03 stop: 9.49

An MPS unit began its presentation to the National Association of
Computer Consultant Businesses conference in Dallas on Wednesday,
with that conference continuing through Friday.  Beeline is the
human capital solutions business unit of MPS group, and a Beeline
VP will participate as a panel speaker.

As we mentioned last week, however, we're not sure how much the
Beeline presentation impacts MPS's trading pattern.  We were
pleased to see that MPS did not follow through on the weakness
suggested by Friday's bearish candle.  All this week, MPS has
consolidated just above $10.00 as the moving averages rise up to
provide support.  Wednesday, MPS closed a penny above the rising
10-dma.  More significant to MPS's trading pattern, however, are
the 30- and 50-dma's, now at $9.80 (black on the chart) and $9.67
(pink on the chart) respectively.  We wouldn't be surprised to
see MPS retreat to those moving averages.  However, it battled
$10.00 resistance for two months, establishing it as a
significant level.  This week's consolidation just above that
level shows MPS establishing it as support.

Oscillator evidence remains mixed, as is often true during
consolidation.  Pullbacks and bounces from above the 30-dma would
provide entries, and momentum entries could be sought on a
volume-confirmed move through last week's high.

Annotated Chart for MPS:


Picked on Oct 15 at $10.40
Change since picked: -0.23
Earnings Date:    10/28/03 (confirmed)
Average Daily Volume:  466 thousand




  --------------------
  Bearish Play Updates
  --------------------

Gilead Sciences - GILD - close: 58.33 change: -1.67 stop: 60.51

Volatility has been the name of the game in shares of GILD over
the past week and the rebound from the $57 area on Monday looked
like the bulls were stepping in to buy the dip.  Wednesday's
session was another story altogether, with the Biotechnology
index (BTK.X) getting slammed for more than a 4% loss.  GILD
dropped very near that $57 level again, but the bulls bought the
dip (although with less conviction) in the afternoon, resulting
in a close near the middle of the day's range.  We're still
looking for a breakdown ahead of earnings next Tuesday and we've
got some clear action points for new entries.  Another failed
bounce below $60 should work for aggressive traders, with the
breakdown under $57 looking like a viable momentum entry.  There
may be some mild support found near $56 and then again at $55,
which is the site of the PnF bullish support line.  But if that
breaks, then our target of $50 looks like a logical destination.

Picked on October 15th at  $59.58
Change since picked:        -1.25
Earnings Date:           10/28/03 (confirmed)
Average Daily Volume:    3.60 mln





============
CLOSED PLAYS
============

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

Sony CP ADR - SNE - close: 37.15 change: -0.81 stop: 35.49

With Sony due to report earnings Thursday, it's time to close
this play.  In fact, with those earnings being reported in the
overnight session in Japan, this play probably should have been
closed Tuesday night.

Although Sony retreated Wednesday, it held up well during the
Nikkei's decline this week and even during Wednesday's decline in
U.S. markets.  It maintained a steep rising trendline within its
rising regression channel.  Wednesday's retreat sent it down to
test its 10-dma, but it closed above that moving average.

If overnight weakness in the Nikkei or Sony's earnings report
produces weakness, SNE is likely to pull back to the 30-dma or
perhaps to the 50-dma, currently at $35.01 and just below our
stop.  That's also near the bottom support of the rising
regression channel, so if Sony should open near that level,
aggressive traders might watch for a bounce back to the 30-dma
for an exit on strength.  With KLAC warning in after hours and
tech stocks likely to be pressured tomorrow, waiting for a bounce
on which to exit might prove risky, however.

Picked on Oct 10 at $36.59
Change since picked: +0.56
Earnings Date:    10/23/03 (confirmed)
Average Daily Volume:  1.2 million




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

Beverly Ent. - BEV - close: 5.49 change: -0.09 stop: 6.12

Compared to the price action in shares of BEV, watching grass
grow could be considered an aerobic activity.  Over the past
couple weeks, there have been several opportunities for the stock
to break down, but it just hasn't happened, as the bulls continue
to defend the 100-dma (currently $5.34).  Wednesday's major
downdraft in the broad market should have seen BEV trading
sharply lower, but instead the stock traded in a tight range
above support.  We're dropping coverage of BEV tonight for lack
of performance.  The stock may still get it in gear and break
down, but we've run out of patience with so many other more
active plays to choose from.

Picked on October 12th at $32.20
Change since picked        +0.11
Earnings Date           11/03/03 (confirmed)
Average Daily Volume =  1.12 mln





==================================================================
STOCK SPLITS/ANNOUNCEMENTS
==================================================================

ERTS gets interactive with a 2-for-1 stock split

After today's closing bell, Electronic Art's (NASDAQ:ERTS) Board
of Directors declared a 2-for-1 stock split of its common shares
in conjunction with its earnings announcement.

The payable date on the stock split is November 17th, 2003 to
shareholders on record November 3rd.  This will be ERTS' fourth
stock split in the company's history.

About the company:
Electronic Arts, headquartered in Redwood City, Calif., is the
world's leading interactive entertainment software company.
Founded in 1982, Electronic Arts posted revenues of $2.5 billion
for fiscal 2003. The company develops, publishes, and distributes
interactive software worldwide for video game systems, personal
computers and the Internet. Electronic Arts markets its products
under three brand names: EA SPORTS(TM), EA GAMES(TM), and EA
SPORTS BIG(TM). EA's homepage and online game site is www.ea.com.
More information about EA's products and full text of press
releases can be found on the Internet at http://info.ea.com.
(Source: Company press release)

---

SYMC secures a 2-for-1 stock split for its shareholders

After today's closing bell, Symantec Corp's (NASDAQ:SYMC) Board
of Directors declared a 2-for-1 stock split of its common shares
in conjunction with their Q3 earnings announcement.

The payable date on the stock split is November 19th, 2003 to
shareholders on record November 5th.  This 2:1 split will
increase shares outstanding to 308 million.

About the company:
Symantec, the world leader in Internet security technology,
provides a broad range of content and network security software
and appliance solutions to individuals, enterprises and service
providers. The company is a leading provider of client, gateway
and server security solutions for virus protection, firewall and
virtual private network, vulnerability management, intrusion
detection, Internet content and e-mail filtering, remote
management technologies and security services to enterprises and
service providers around the world. Symantec's Norton brand of
consumer security products is a leader in worldwide retail sales
and industry awards. Headquartered in Cupertino, Calif., Symantec
has worldwide operations in 36 countries. For more information,
please visit www.symantec.com.
(Source: Company press release)




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