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Daily Newsletter, Thursday, 10/30/2003

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PremierInvestor.net Newsletter                Thursday 10-30-2003
                                                   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:      Boom or Blip?
Watch List:       ATH, NSM, CHIR, APA and more!
Market Sentiment: Q3 GDP Roars

=================================================================
MARKET WRAP  (view in courier font for table alignment)
=================================================================
      10-30-2003           High     Low     Volume Advance/Decline
DJIA     9786.61 + 12.10  9838.76  9754.01 2.07 bln   1608/1620
NASDAQ   1932.69 -  3.90  1957.53  1929.77 2.01 bln   1494/1685
S&P 100   517.53 -  1.13   520.99   516.37   Totals   3102/3305
S&P 500  1046.94 -  1.17  1052.82  1017.47
W5000   10195.52 - 11.80 10258.46 10171.38
RUS 2000  530.37 -  1.44   536.41   530.03
DJ TRANS 2925.28 + 23.70  2940.07  2897.97
VIX        16.33 -  0.01    16.76    16.01
VXO VIX-O  17.50 +  0.35    18.06    17.01
VXN        24.74 +  0.02    25.09    24.49
Total Volume 4,361M
Total UpVol  2,325M
Total DnVol  1,977M
52wk Highs 1042
52wk Lows    26
TRIN       1.00
NAZTRIN    0.70
PUT/CALL   0.81
=================================================================

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


Boom or Blip?

Bet you did not expect the news to be that good. Nobody did
and almost everybody did not know how to react. The GDP jump
by +7.2% shocked everyone into inaction. The disbelief in the
numbers had the talking heads battling the "boom or blip"
question all day. The answer? Almost everyone had decided by
the close that it was a real number but that could not prevent
a pull back that left the Nasdaq in negative territory.

Dow Chart


Nasdaq Chart


S&P Chart - Double Top?


Jobless Claims came in at yet another five week low at 386K
after last weeks numbers were revised up right on schedule to
391K. Whoever is in charge of producing the numbers needs to
just add 5K every week before the number is announced to
avoid the weekly embarrassment of having to revise them every
week. I love the press releases. "Jobless Claims fell by -5000
this week to another five week low". You would think we were
cutting layoffs each week and it was a pattern of falling
claims. The revised numbers for the prior four weeks are now
oldest to latest, 405K, 388K, 390K, 391K and this weeks 386K
which will probably be revised up to 390K or more. Far from
a declining pattern as the news would suggest. The news is
not bad with four weeks under 400K but just far from improving.

The Chicago Fed National Activity Index posted its first
positive month since July 2002. The headline number of +0.20
was not a blowout but just another confirmation of improving
conditions. The recent low of -1.12 in April has been slowly
improving and despite a downward revision of -0.12 to last
month the trend is intact. The CFNAI is based on 85 indicators
and 57 rose for the period covered in this report. Gains in
manufacturing gave the index its largest boost.

The Employment Cost Index rose slightly by +1.0% last month
and benefit costs were the major expense. This was no surprise
and the report was largely ignored with the blowout GDP
stealing all the headlines. The Help Wanted Index was flat
again at 37 and has shown little movement since a slight
bounce in June to 38. Some analysts suggested this could be
negative since the 4Q normally sees an uptick in advertising
for both permanent and temporary hiring. A flat index would
suggest that we transitioned from summer help to fall help
without any increase in advertising. This would suggest the
current unemployment levels were so high that companies do
not need to spend the money to recruit. The current index
levels are 66% off the cycle highs. Only 41% of the papers
surveyed reported any increase in employment ads.

The Labor Turnover Survey dropped -7.8% for August and
showed no improvement over the -5.7% drop in July. These
numbers are so old they do not get much play but the trend
is definitely down. June was the last positive month with
a +3.5% gain but that temporary bounce was quickly erased.
According to the JOLT Survey the job-opening rate has
fallen from year ago levels and is continuing to decline.
This does not paint a convincing picture for the Nonfarm
Payroll number next week except that this is an August
number and conditions could have changed substantially.

The big number for the day, actually the decade was the GDP
jump to +7.2%. This was well over the estimate of +6% which
was already considered too high by many analysts. The sticker
shock initially powered a spike from short covering but that
spike was short lived. There were so many qualifications that
traders did not know which way to jump. This gain was the
biggest jump in quarterly GDP in 19 years. To say it was
out of the ordinary would be an under statement. Personal
consumption, investments in equipment, software spending
and exports led the gains. Auto sales added +1.17% but
shrinking inventories actually knocked -0.67% off the final
number. The $35 billion drop is projecting an even bigger
bounce in the 4Q or 1Q as these inventories are replenished.
Exports added +.84% to the number and was mostly unexpected.
The weaker dollar and stronger global demand helped pump
the export number. In Q2 the GDP was powered mostly by
defense spending. In Q3 defense spending was almost flat.
Federal spending was also flat. Disposable income jumped
+7.2% from tax cuts and rebates and helped power the jump
in consumption. There are a lot of detractors to the GDP
bounce but the internals show a continued increase in home
and auto sales despite the high unemployment. Increases in
business spending surprised most analysts and many question
if the bounce will continue.

Regardless of your take on the GDP the market was completely
confused. The opening bounce took the Dow back to a high of
9827 but the selling begin almost immediately. The Dow
drifted back to 9754, -73 points off its high and nearly
-20 points into the red before 10:30. The Nasdaq bounced
to 1956, only -10 points from its 52-week high before a
quick drop back to support at 1930. The quick drop was due
to disbelief by some and profit taking by others. With only
one day left in the fiscal year for many mutual funds this
was a perfect opportunity to unload stocks. However, they
did not sell the bounce and despite the opening dip and the
closing dip the action for the day was positive. The Nasdaq
was the weakest and closed slightly negative and right on
1930 support. The Dow clung to yesterday's resistance at
9780 and refused to give up ground at the close.

For Friday we have another flurry of economic reports and
another chance for a news driven market event. The lack of
a sell off today could have been related to some month end
window dressing that offset any year end rebalancing. This
leaves Friday up for grabs. Futures are positive in the
overnight session and the post closing analyst musings are
suggesting a positive spin to the GDP once the sticker
shock dissipates.

My analysis of the event is probably a little different from
some others. While there are many qualifiers in the GDP
number those qualifiers only impact a very select few traders.
The general public only sees the headline number and thinks
"wow, the economy really is recovering". They begin to feel
better about overall conditions and the sentiment numbers
over the next month will show another boost. Still my
thoughts go more to the underlying market action today. We
did NOT sell off. This to me was the biggest event. The
current market rally had been predicated on a +6% GDP for
the last two months. Everybody with a podium had been using
the GDP as a rally point with every speech. If ever there
was a number baked into the cake this was it. Everyone who
was ready to pull the exit trigger on a +6% or lower number
was shocked into inaction by the blowout. Suddenly the
concept of market top was called into question. Whoa, if
the economy is better than everyone expected then maybe
there is more to go. Maybe I should not sell yet.

Obviously this is an oversimplification but you get the point.
There was selling on the news but there was also buying. The
opposing forces were evenly matched and volume was strong.
The advancers/decliners were even at 3102/3305 and the markets
finished flat. Flat, not +200 on the good news or -100 on
the expected news. Confusion reigns and that is a good thing.
The VXO (old VIX) hit 17.01 on the bounce today. This is an
unbelievable number and only 2 ticks away from breaking the
17 barrier. Any move up on Friday will likely do the trick.
That leaves us heading into a weak heavy with economic reports
and the market near its highs with the VXO at a five year low.
The high odds bettors are backing up the truck to load up on
puts. This type of alignment happens very rarely and almost
always ends badly. The wild card in that scenario is the GDP.

The traders almanac says the first three days of November
are normally bullish as funds reinvest the cash they got
from selling in October. Since we had almost no selling I
would be skeptical of a positive first three days if it
were not for the parade of increasingly positive economic
reports. Assuming we do not see a sudden reversal of fortune
on Friday we will go into the weekend at market highs with
good economics and good earnings and even greater
expectations for the 4Q. Greenspan could not have scripted
it better.

Before we get too far ahead of ourselves let's remember that
the estimates for growth in the 4Q and the 1Q were only in
the +4% range last week. That range could change but with
earnings expectations turning down due to a stronger 4Q-2002
comparison there could be some dampening of expectations in
the market. The Fed has begun to drain the excess liquidity
out of the money supply and interest rates are climbing
again. Unemployment is still high and the Fed is still
worried about deflation. We are not out of the woods yet
but offsetting these negatives is the influx of cash into
mutual funds. TrimTabs said we could see record inflows for
October of $30 billion. With the +7.2% GDP headline all we
need now is a Dow 10,000 headline and even the hard core
should become converts. CDs and worthless money market
accounts would be tapped to try the stock market again. It
makes no difference how badly they were burned in the past
they see the lure of easy money and want to be winners too.
If you are walking through a casino and pass a table where
all the gamblers are cheering and screaming with every roll
of the dice it is very hard to keep on walking. When you
see them raking profits off the table with every roll the
urge to throw some money on the table and get your share is
very strong.  Of course what I just described is a market
top that is doomed to eventually correct but it could be
weeks or months before that correction.

A quick look at the charts above should prompt caution
from any technical analyst. The S&P came to a dead stop
at 1050 once again and could easily be forming a double
top at that level. Same goes for the Dow and Nasdaq. For
any bullish scenario to develop these indexes must break
out to news highs over the next couple days of the bulls
will become worried and we could see weakness appear again.

That brings us back to tomorrow. We could easily move 100
points in either direction or remain flat as October slips
into history. I personally think the odds favor some profit
taking on Friday. The Dow traded over 9820 three separate
times on Thursday and failed to hold the high ground each
time. The Nasdaq went out near the low for the day and
could be seeing some profit taking by funds. With it being
the last day of the month for all and the last day of the
year for many, anything is possible. The only resistance
above us is the 52-week highs at 9850 and should that break
we are only a broad jump away from Dow 10,000. That is still
my target for the next real profit taking event. The only
real unknown is how far in front of that target will the
bulls become nervous and begin exiting the game.

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

Anthem Inc. - ATH - close: 67.20 change: -2.04

WHAT TO WATCH: Despite earnings slightly ahead of expectations
and forward guidance slightly above expectations, shares of ATH
are selling off sharply and on strong volume.  Thursday's close
below $68 is a 6-month low and if support near the current price
gives way, then we could be looking at a plunge down to the $60-
62 area.




---

National Semiconductor - NSM - close: 41.42 change: +0.43

WHAT TO WATCH: This is NOT the time to consider a new bullish
play in NSM, but it is time to put together the action plan for
the next pullback in this leading Semiconductor stock.  Look for
an entry in the $38.50-39.00 and then ride it higher towards $45
resistance, helped along by the still strong SOX.




---

Chiron Corp. - CHIR - close: 54.31 change: -2.34

WHAT TO WATCH: Shares of CHIR appear to have met stiff rejection
again right at the $57 resistance level and investors certainly
didn't like what they heard from the earnings report yesterday.
Despite beating estimates and guiding higher, the stock was sold
as those results apparently didn't measure up to expectations.
Use a break of the 50-dma as an entry trigger and look for an
initial drop to $50.




---

Apache Corp. - APA - close: 69.18 change: -0.77

WHAT TO WATCH: We've had our eye on shares of APA for some time,
as the stock has just continued to move higher over the past two
years in a broad ascending channel.  The stock appears to be
rebounding right now from the 50-dma and the midline of the
channel, which could make for a solid entry ahead of a continued
rally towards the top of the channel, currently at $75.





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

BSTE $25.23 - After a huge plunge in September, shares of BSTE
have been consolidating just over $27, but began breaking down
yesterday.  If the $25 level gives way, then look for $20 as a
reasonable downside target.

MRK $43.94 - Pharmaceutical stock certainly haven't been acting
very well, but MRK has been leading the way lower.  Now breaking
below $44, the stock looks to have downside potential to the $39-
40 area.

GTK $18.25 - The trend in GTK is certainly well-established, as
the stock has been working its way higher in a consistent channel
for more than a year.  After pulling back from its all-time highs
in mid-October, GTK is rebounding from the midline of the channel
and this looks like the point to consider new entries.



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


Q3 GDP Roars
- J. Brown

Q3 GDP roared at a 7.2% pace, more than double the Q2's 3.3% run.
This was the fast growth in 19 years but the markets reaction was
ho-hum.  Many already had big expectations and the report merely
confirmed what the Street was looking for.  Although it was
certainly above and beyond the estimates there is already talk of
it being revised lower when the data is finalized.

Investors were also happy to hear that jobless claims remained
below the pivotal 400,000 level with 386,000 filing last week.
The recent trend under the 400K level suggest that companies have
slowed their layoffs, which is the natural precursor to any
turnaround in new hirings.

We continue to remain cautious with the volatility indices so
low.  The VXO or old VIX hit a new multi-year low yesterday and
closed at 17.50 today.  This is a contrarian indicator of extreme
bullishness or lack of fear in the markets.  Traditionally, when
investors become this complacent it's usually time to expect a
short-term top in the market averages.

The markets will also have to contend with fiscal year end for
mutual funds, which takes place tomorrow.  While I would normally
expect most of the portfolio shuffling to be completed by now
October has been a very strong month for fund inflows.  It's
possible that money managers could do some last minute window
shopping.  However, normally, funds tend to put their money to
work in early November.



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

Market Averages

DJIA ($INDU)

52-week High:  9850
52-week Low :  7197
Current     :  9772

Moving Averages:
(Simple)

 10-dma: 9695
 50-dma: 9555
200-dma: 8822

S&P 500 ($SPX)

52-week High: 1053
52-week Low :  768
Current     : 1046

Moving Averages:
(Simple)

 10-dma: 1039
 50-dma: 1024
200-dma:  946

Nasdaq-100 ($NDX)

52-week High: 1439
52-week Low :  795
Current     : 1417

Moving Averages:
(Simple)

 10-dma: 1399
 50-dma: 1368
200-dma: 1186


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

We did see a small jump in the volatility indices but yesterday
was a new relative low for all of them.  The VIX and VXO continue
to suggest caution for bullish investors.

CBOE Market Volatility Index (VIX) = 16.33 -0.10
CBOE Mkt Volatility old VIX  (VXO) = 17.50 +0.35
Nasdaq Volatility Index (VXN)      = 24.74 +0.02


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

          Put/Call Ratio  Call Volume   Put Volume

Total          0.81        725,972       585,376
Equity Only    0.70        627,894       439,451
OEX            0.66         26,132        17,264
QQQ            3.19         41,569       132,431


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

Bullish Percent Data

           Current   Change   Status
NYSE          73.3    + 0     Bull Confirmed
NASDAQ-100    78.0    + 3     Bear Correction
Dow Indust.   83.3    + 0     Bull Correction
S&P 500       80.0    + 1     Bull Confirmed
S&P 100       80.0    + 2     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-dma: 1.00
10-dma: 1.10
21-dma: 1.00
55-dma: 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    1456      1406
Decliners    1379      1652

New Highs     241       260
New Lows        8         9

Up Volume   1024M     1173M
Down Vol.    971M      902M

Total Vol.  2016M     2106M
M = millions


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

Commitments Of Traders Report: 10/21/03

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

Unfortunately we're still not seeing much change in sentiment
for the Commercials in the big S&P futures.  They remain slightly
net short.  Small traders aren't making many moves either and
they remain net long.


Commercials   Long      Short      Net     % Of OI
09/30/03      395,713   397,577   ( 1,864)   (0.0%)
10/07/03      390,232   402,964   (12,732)   (1.6%)
10/14/03      391,972   410,299   (18,327)   (2.3%)
10/21/03      394,176   411,246   (17,070)   (2.1%)

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
09/30/03      144,681    96,801    47,880    19.8%
10/07/03      138,644    88,018    50,626    22.3%
10/14/03      133,940    86,418    47,522    21.6%
10/21/03      136,643    88,290    48,343    21.5%


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

It's the same story here.  Commercials increased their positions
in both longs and shorts but remains slightly net short.  Small
traders trimmed some short positions and opened 30K more long
contracts just in time for the late week weakness.


Commercials   Long      Short      Net     % Of OI
09/30/03      163,828   218,991    (55,163)  (14.4%)
10/07/03      212,273   225,377    (13,104)  ( 3.0%)
10/14/03      221,897   233,066    (11,169)  ( 2.5%)
10/21/03      226,985   236,906    ( 9,921)  ( 2.2%)

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
09/30/03      131,698    65,259    66,439    33.8%
10/07/03      134,990    63,560    71,430    36.0%
10/14/03      161,208    59,213   101,995    46.3%
10/21/03      168,236    56,564   111,672    49.7%


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


NASDAQ-100

Sorry...no big changes for the Commercial traders here either.
They remain net short while the Small Trader remains net long.


Commercials   Long      Short      Net     % of OI
09/30/03       33,571     42,993   ( 9,422) (12.3%)
10/07/03       33,253     40,861   ( 7,608) (10.3%)
10/14/03       34,639     41,880   ( 7,241) ( 9.5%)
10/21/03       36,314     43,305   ( 6,991) ( 8.8%)

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
09/30/03       19,803     9,917     9,886    33.3%
10/07/03       18,182     9,688     8,494    30.5%
10/14/03       16,822     9,046     7,776    30.1%
10/21/03       16,917     9,750     7,167    26.9%

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

No one seems willing to make any big bets.  Commercials have
been stuck in the same range for weeks now and remain net long
the DJ futures.  Small traders took some money out of their long
and dumped some of it into shorts but not much.


Commercials   Long      Short      Net     % of OI
09/30/03       16,561     8,932    7,629      31.5%
10/07/03       16,277     9,528    6,749      26.2%
10/14/03       16,595     9,433    7,162      27.5%
10/21/03       16,876     9,037    7,839      30.3%

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
09/30/03        7,578     8,125   (  547)   ( 3.5%)
10/07/03        7,392     7,910   (  518)   ( 3.4%)
10/14/03        6,427     8,495   (2,068)   (13.9%)
10/21/03        5,392     8,842   (3,450)   (23.1%)

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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Copyright ) 2003  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.
PremierInvestor.net Newsletter                Thursday 10-30-2003
                                                   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:     Marching Higher

Stop Loss Adjustments:  IGT

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


INTL Game Tech - IGT - cls: 32.50 chng: +0.35  stop: 30.50*new*

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:
After declining to establish support late last week, IGT extended
its gains this week.  Wednesday the stock gained 0.69 percent.
MACD lines separated and turned up again, continuing to move
higher as price does.  Stochastics and RSI trend at levels
indicating overbought conditions, but the sell signals they give
on downturns cannot be trusted as long as IGT's trend remains
strong.

We raised our stop on Tuesday, and will keep the new stop for
now, but conservative traders might want to follow the rising 21-
dma, setting stops just below that average.  Since volume is not
expanding on the current rise and since earnings approach next
week, we would not suggest new momentum entries.  Those
considering pullback and bounce entries could enter on a bounce
from above $30.50, but those would-be entrants should be aware
that we will be recommending that this play be closed on Monday.
Such entries would be high risk since such little time remains.

Why This is our Play of the Day
Continuing its way higher in a steady march (rather than the
volatile chop seen in the broad market) IGT is performing just as
we had hoped it would, although a bit more slowly.  Normally, the
pace of a move isn't a major concern, but with the company's
earnings report scheduled to be released Tuesday morning before
the open, we're running out of time.  Remember that we're
advocating all positions be closed ahead of that report to avoid
the possibility of a "sell the news" type event.  IGT broke out
over $31.50 on Monday and has steadily advanced right up to
today's close.  With Friday's session being the last in the month
and the quarter, not to mention the fiscal year for mutual funds,
it could be that selling into strength near the end of the day
tomorrow is the optimum exit strategy.  We aren't advocating new
entries at this point, but instead want to take this opportunity
to remind you to plan your exit strategy.  The ideal exit would
be on a rally into the $33-34 level.  Note that we've raised our
stop to $30.50 tonight, as that is just below last Thursday's
intraday low, and will be below the 20-dma (currently $30.34) by
tomorrow.

Annotated Chart of IGT:


Picked on October 22nd at  $31.00
Change since picked         +1.50
Earnings Date            11/04/03 (confirmed)
Average Daily Volume =   2.43 mln




==================================================================
STOP LOSS ADJUSTMENTS
==================================================================


IGT - Adjust from $29.74 up to $30.50


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

APC     Anadarko Petroleum         42.85     +0.51
WHR     Whirlpool Corp             71.45     +0.77
VLO     Valero Energy Corp         41.40     +1.88
AXS     Axis Capital Holdings      24.92     +0.62
OSI     Outback Steakhouse         41.63     +1.81
TIN     Temple Inland Inc          53.78     +2.72

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

BMC     BMC Software               17.12     +1.46
AGU     Agrium Inc                 15.26     +1.06
TOM     Tommy Hilfiger             14.88     +1.03
AKAM    Akamai Tech                 8.00     +2.04
EFDS    EFunds Corp                15.60     +1.23
RML     Russell Corp               17.55     +1.34

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

UPS     United Parcel Service      71.80     +1.19
UNP     Union Pacific              62.77     +1.54
MXIM    Maxim Integrated Products  49.44     +1.20
MHP     Mcgraw-Hill Companies      67.10     +1.54
ROH     Rohm & Haas                38.03     +1.50
NTLI    NTL Inc                    62.16     +2.10
ALE     Allete Inc                 30.18     +1.05

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

COF     Capital One Financial      59.68     -3.70
ATH     Anthem Inc                 67.20     -2.04
AET     Aetna                      56.42     -2.37
MBT     Mobile Telesys             75.40     -3.85
MUR     Murphy Oil                 59.00     -1.47
ESRX    Express Scripts            54.38     -4.62
KMG     Kerr-Mcgee                 41.58     -1.03
BVF     Biovail Corp               24.00     -2.81
NTES    Netease.com                45.60     -5.04

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

HOT     Starwood Hotel             34.50     -1.70
OCR     Omnicare Inc               36.81     -1.32
CVH     Coventry Health Care       54.34     -3.61
SRCL    Stericycle Inc             48.25     -3.09





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