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Daily Newsletter, Sunday, 12/14/2003

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PremierInvestor.net Newsletter          Weekend Edition 12-14-2003
                                                    section 1 of 3
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:      Holiday Sentiment Fades
Play-of-the-Day:  Best Survey
Market Sentiment: Merry Markets


=================================================================
MARKET WRAP  (view in courier font for table alignment)
=================================================================
       WE 12-12        WE 12-05        WE 11-28        WE 11-23 
DOW    10042.16 +179.48 9862.68 + 80.22 9782.46 +153.93 -140.15 
Nasdaq  1949.00 + 11.18 1937.82 - 22.44 1960.26 + 66.38 - 36.38 
S&P-100  531.78 +  8.27  523.51 +  2.77  520.74 +  8.97 -  7.24 
S&P-500 1074.14 + 12.64 1061.50 +  3.30 1058.20 + 22.92 - 15.07 
W5000  10464.48 +111.88 10352.6 +  0.38 10352.2 +253.34 -145.78 
RUT      547.59 +  8.58  539.01 -  7.50  546.51 + 20.58 -  7.03 
TRAN    2983.41 + 72.83 2910.58 - 10.65 2921.23 + 75.91 - 82.32 
VIX       16.41 -  0.68   17.09 +  0.79   16.30 -  2.68 +  2.04 
VXO       15.95 -  1.39   17.34 +  0.63   16.71 -  3.18 +  2.26 
VXN       25.86 -  1.19   27.05 +  1.44   25.61 -  3.47 +  2.92 
TRIN       1.02            1.86            1.04            1.04  
Put/Call   0.75            0.84            0.69            0.80  
WE = week ending
================================================================= 

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

Holiday Sentiment Fades
by Jim Brown

Bah Humbug! That may not have been the sentiment expressed
in the Friday morning report but it was definitely how traders
felt when the report was released. That did not prevent the
early holiday bargain shoppers from rushing to buy the dip 
and hold the Dow over 10,000 for the weekly close. 

Dow Chart - Weekly


Nasdaq Chart - Weekly


Wilshire-5000 Chart - Weekly




The Consumer Sentiment was not the only report that surprised
on Friday. The PPI for November was well below the estimate
of +0.2% with a headline number of -0.3%. Minus 0.3%! Much
of the decline was due to a fall in energy prices. The core
rate excluding food and energy declined only -0.1%. This 
was the first decline after five months of increases. Also
impacting the headline number was a drop in the price of
autos. On the surface it would appear inflation is not a
problem but the internals showed that prices for intermediate
and crude goods continued to rise in November just like they
have been doing for the last several months. With commodity
prices soaring off the charts the odds of a continued rise
in the prices of producer goods is very likely. Friday's
report should not be seen as confirmation of the Fed's no
inflation outlook although I am sure they were pleased. 

The International Trade deficit rose to $41.8 billion in
October and that was slightly higher than expected. Imports
rose +$500 million more than exports for the period. The
strong growth in both numbers indicates increasing demand 
both in the US and abroad. The weak dollar makes US exports
attractive and depresses growth in imports. This report was
neutral for the markets on Friday but a slight positive for
the continued recovery. 

The Federal Budget Balance came in at -$43 billion for Nov
and the second month in the 2004 fiscal year and very close 
to the OMB estimate of -$44 billion. This was well under the
street consensus of -$52 billion. The street was high because
the October budget deficit was $69 billion and they were 
looking for a repeat. This brings the deficit for the first
two months of fiscal 2004 to $112 billion. Multiply that 
$56B per month average by 12 months to see why there was 
little demand for treasury notes by foreign banks this week.
Foreign investors are worried that the US deficit could run
over a trillion dollars a year for the next two years and 
this causes conservative thinkers to ponder repayment. 

The biggest surprise of all was the Consumer Sentiment for
December. This was the first reading for the month and 
analysts had expected 95.5 to 96.0, up from 93.7 last month.
The 89.6 headline number shocked everyone and sent the street
back to the drawing board scratching for answers. The majority
of the decline came in the present conditions index and a
drop from 102.5 to 93.6. Expectations also fell from 88.1
to 87.1. The excuses were quick to surface although none 
were conclusive. Some thought maybe the bounce in the Jobless
Claims could have soured the expectations but that just came
to pass this week. No sale there. Others thought the drop in
the Jobs Report to only 57,000 from the 140,000 estimate
could have started people worrying again. I would put more
credence in that outlook. The Jobs Report was widely reported
last week and could have depressed consumers. Maybe. Others
thought the blizzard in the Northeast depressed shoppers
by taking a weekend out of their holiday season. Come on
guys, snow may close schools and work but shopping will 
always continue. Before you fire off the emails I know there
were some stores closed in the Northeast but enough to spoil
consumer sentiment? I think the problem was cashflow and the
flu. Shoppers got their injection of extra cash over the 
summer and that cash is gone. They are now trying to make 
ends meet and buy for the holidays on budget money. Bonuses
are going to be very light this year for workers and nearly
nine million people are still out of work. Nothing spoils 
holiday sentiment any faster than unemployment worries and 
an empty wallet. With retail prices still dropping there 
will be plenty of bargains over the next six weeks to lift
those spirits again. Retailers are going to be blowing out
that inventory at record low prices if this holiday shopping 
season begins slowing any further. Mall reports from around
the country claim good crowds and long lines so the sentiment
numbers could be just a flu blip. 

The main factor in the sentiment dip could be due to the 
flu stories making the rounds. Almost every newscast is not
complete without a total of the sick and dead from the flu.
The lack of any flu vaccine and the dire predictions from
some could have easily depressed family sentiment. Tales of
children dying all over the country and shock value stories
of millions of deaths possible have prompted people to stand 
in line for remaining shots for hours. In one city reported
on Friday, homeless people were getting in line earlier and
selling their spaces for $20 to late comers afraid they were
going to run out of the vaccine. Consumers are wearing masks
to the malls in hopes of preventing infection. How confident
in the current situation are you under these conditions? 
Before you start assigning too much value to the first 
reading of Consumer Sentiment remember it comes from only
250 households in a nation of 280 million people. It would
only take a few pessimists to spoil the picture. 

Challenger, Gray and Christmas, an employment research firm,
said today that 50 million workers could catch the flu this
season. They said more and more workers are reporting to 
work sick because of worries about their job. The actual 
numbers are at a 13 year high. A poll of Dow companies 
found that most offered flu shots to their employees, with
as many as 50,000 workers accepting the offer at one firm.

The markets tanked on the news as traders recoiled in shock
but the dip was quickly bought. Helping the Dow today were
UTX and KO. UTX held an analyst get together last night and
the stock was a favorite again today tacking on another 
+2.33 to $92.00. This rocket just keeps on flying. We had
considered UTX as a candidate for the Top Stocks for 2004
Special Investor Guide but with the stock at an almost daily
new high and closing in on $100 the options were grossly
expensive. We tried to focus on stocks that will turn into
a UTX and not those that are already out of sight. I like
the company but it is just too expensive for most traders.

KO also rocketed to a new 52-week high on news they were
buying back $2 billion in stock. The company has tacked on 
+$3 this week alone. GM continued to jump as the picture
just keeps getting better in their pension outlook. PG
rounded out the top four Dow gainers. 

The Dow broke below 10000 at the open but the rush to buy
the dip was very quick. Once back over 10K the buying 
pressure eased until the last hour. Traders are still not 
eager to buy the top but they jumped at the chance to buy 
the dip. About 3:PM we began to see some short covering as
those with a bah humbug attitude were squeezed out of the
market by holiday shoppers trying to front run any potential
Santa rally. There was no rush into the market but there a
constant bid. The Nasdaq was not as strong as the Dow with
most of the day spent under water. The end of day rebound
finally pushed it into positive territory but it failed 
to break resistance at 1950 once again. 

The Nasdaq was handicapped by the annual rebalancing it
announced for Dec-22nd. The Nasdaq announced the removal 
of eight stocks from the Nasdaq-100 putting those stocks
under pressure. The eight being dropped include ADCT, BRCD,
CIEN, ERICY, HGSI, ICOS, MNST and RFMD. Stocks being added
to replace those above include MRVL, GRMN, CECO, LRCX, LVLT,
ISIL, ATYT and RIMM. Two of those stocks are on the Top
50 Stocks for 2004 Guide. Considering there are over 400
global products and index funds that track the Nasdaq 100
there will be strong demand for those issues over the next
week. Just remember that strong demand is relative because
these stocks are coming in at the bottom of the Nasdaq and
the index is market cap weighted. What will help is the 
tracking by individuals who tend to add these stocks to 
their portfolios whenever the Nasdaq makes a change. 

Over the next two weeks the Nasdaq is likely to lag the Dow
simply due to the amount of profit accumulated over the last
nine months. There will be excess overhead supply until the
funds rebalance their portfolios in January. This suggests
the Dow will be trying to move higher while dragging the
Nasdaq along behind. The Dow continues to surprise everyone
and make new highs despite growing bearish sentiment. It
has broken very convincingly the down trend from Jan-2000
at 9900 and the psychological 10,000 level. While the bulls
are having their "been there, done that" bumper stickers
printed for each of those events the buyers just keep 
pushing the index higher. This victory lap could come to
a halt soon when the next real resistance is reached in the
10200-10250 range. Most analysts think the index is running
on borrowed time but then they are not the ones buying the
stock. 

I am one of those in disbelief as I thought the index would
slow at 10K and trade in a 9700-10000 range for the next
two weeks. We are still not far out of that range but with
two consecutive closes over 10K the Dow is winning converts
daily. With retail investors focusing on the much discussed
Santa Claus rally the odds are good we will see another 
new high before the year is out. The rally is based on the
almost always positive holiday week. This "certainty" in
some minds suggests that next week could finish positive 
in hopes of capitalizing on the trend. Nowhere in the trend
is there a rule that the week before the holidays must go
up as well but given the bullish sentiment I would be very
surprised if it didn't. There is a past saying for this 
trend that bears repeating. It is derived from historical
trends for bear markets to follow weak holiday performance.

If Santa Claus should fail to call,
bears may come to Broad and Wall.


The market managers (makers, excuse me) got their wish of
a weekly close over 10K and the breakfast table conversation
on Saturday will not only what toys to buy for the kids but
also the market recovery. "Shucks, Martha the market has
recovered from that bear market bubble thing. Maybe we
should cash out those CDs and buy some stock before the
market gets too high again." While that thought process is
not they way you and I think it will be repeated thousands
of times this weekend. I am not going into any detail about
the long term market potential today but the odds are very
good any money transferred into the market over the next
two weeks could be a victim of bad timing. I feel the next
two weeks will be a traders market and once we get to 
January the real fun will begin. We have spent a lot of 
effort picking stocks for the Top Stocks CD and I can't 
wait for those entry points to start getting hit. 

For the next two weeks I would look for the Nasdaq to remain
locked in the 1900-2025 range. I have upgraded my range for
the Dow to 9850-10250. The resistance at 10250-10300 is
very strong and is very technical unlike the psychological
10,000 level. Plan your entries and exits at the extremes
of these ranges and try to stay out of the chop in the middle.

Enter Very Passively, Exit Very Aggressively!

Jim Brown



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

CIT Group - CIT - close: 34.05  change: +0.05  stop: 32.40

Company Description:
CIT Group Inc. (NYSE:CIT), a leading commercial and consumer 
finance company, provides clients with financing and leasing 
products and advisory services.  Founded in 1908, CIT has nearly 
$50 billion in assets under management and possesses the 
financial resources, industry expertise and product knowledge to 
serve the needs of clients across approximately 30 industries.  
CIT, a Fortune 500 company, holds leading positions in vendor 
financing, U.S. factoring, equipment and transportation 
financing, Small Business Administration loans, and asset-based 
and credit-secured lending. CIT, with its principal offices in 
New York City and Livingston, New Jersey, has approximately 6,000 
employees in locations throughout North America, Europe, Latin 
and South America, and the Pacific Rim.

Why We Like It:
Since March, CIT has charged up a rising regression channel on 
its daily chart, and it looks ready to do it again.  As it has 
done numerous times since March, it retraced to the bottom of 
that channel, finding support at the (black) 30-dma.  RSI turned 
up again, and stochastics slow their descent in mid-channel, 
looking as if they might hook up again.  

One note of caution sounds when we study the P&F chart, because 
CIT long ago exceeded its $28.00 objective.  It has also exceeded 
the Morgan Stanley and UBS targets of $26-27, so is subject to a 
downgrade on valuation.  If this bullish play is living on 
borrowed time, however, CIT sure doesn't know it, as the bar 
chart shows.  We have noted bearish MACD divergence on the chart, 
but the same bearish MACD divergence showed up months ago, 
between the July and September, and September and October peaks, 
and CIT continues to climb.  That MACD divergence alerts us to be 
careful of stops, but since CIT has such a well-defined channel, 
that should not prove difficult.  Initially, we're setting the 
stop just below the (pink) 50-dma, with the initial stop at 
$32.40.  We're setting a tight target, too, at $37.50, the site 
of a swing high on the monthly chart.  We see the possibility for 
CIT to climb much higher, however, but would rather exit ahead of 
the volatility we expect at that level.    

This week, CIT Equipment Finance, one division of CIT, announced 
that a survey of U.S. construction industry leaders showed that 
in eight out of the nine regions surveyed, respondents revealed 
double-digit growth in optimism.  CIT Equipment Finance's 
president crowed about the outlook, calling the results the best 
in the survey's 28-year history.  

An ideal entry would occur on a pullback to the (black) 30-dma or 
to the trendline, but we're not sure those entries will be 
offered.  Entries could also be taken at the current level.  

Annotated Chart for CIT:


Picked on Dec 12 at  34.05
Change since picked: -0.90
Earnings Date:    01/22/03 (unconfirmed)
Average Daily Volume:  879 thousand





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

Merry Markets
- J. Brown

Is the path of least resistance still up?  That's what some 
market watchers are saying.  Disappointing consumer sentiment 
numbers and PPI results could not dissuade investors from buying 
the early Friday dip and the DJIA posted two consecutive closes 
over the 10,000 mark.  

Investor sentiment does indeed seem cheerful.  Equities have 
managed to hold on to their gains and money managers are getting 
closer to their best year-end since 1999.  The fight now is the 
urge to take profits versus hanging on just a little while longer 
to catch the top if indeed a Santa Claus rally has materialized.  

The next five to seven trading days are historically bullish 
heading into the Christmas holiday and this year looks ready to 
follow the seasonal pattern.  Now that talk has turned from a 
stimulus-induced economic recovery to a self-sustaining one the 
mood is certainly more optimistic.  This is especially true given 
the expectation for the Federal Reserve to hold back on any 
future rate hikes.  

The odds are leaning toward new highs for the DJIA & SPX with the 
NASDAQ panting wearily behind them.  Meanwhile the volatility 
indices are likely to hit even new lows as bullish sentiment 
reaches holiday-induced heights.

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

Market Averages

DJIA ($INDU)

52-week High: 10052
52-week Low :  7416
Current     : 10042

Moving Averages:
(Simple)

 10-dma: 9928
 50-dma: 9770
200-dma: 9089

S&P 500 ($SPX)

52-week High: 1074
52-week Low :  788
Current     : 1074

Moving Averages:
(Simple)

 10-dma: 1065
 50-dma: 1048
200-dma:  976


Nasdaq-100 ($NDX)

52-week High: 1453
52-week Low :  795
Current     : 1417

Moving Averages:
(Simple)

 10-dma: 1416
 50-dma: 1408
200-dma: 1249


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

No changes here.  With the major stock indices at or near their
highs for the year these volatility indices are near their multi-
year lows.  Given the strength in equities we could see these 
sentiment indicators continue to sink.

CBOE Market Volatility Index (VIX) = 16.41 -0.32
CBOE Mkt Volatility old VIX  (VXO) = 15.95 +0.09
Nasdaq Volatility Index (VXN)      = 25.86 -0.29


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

          Put/Call Ratio  Call Volume   Put Volume

Total          0.75        683,513       513,507
Equity Only    0.50        511,771       257,406
OEX            1.16         29,641        34,370
QQQ            1.76         24,533        43,075


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

Bullish Percent Data

           Current   Change   Status
NYSE          74.1    + 0     Bull Confirmed
NASDAQ-100    67.0    + 0     Bear Correction
Dow Indust.   80.0    + 0     Bull Correction
S&P 500       80.4    + 0     Bull Confirmed
S&P 100       79.0    + 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-dma: 1.09
10-dma: 1.13
21-dma: 1.15
55-dma: 1.13


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    1908      1897
Decliners     933      1112

New Highs     294       177
New Lows       10        17

Up Volume    937M      828M
Down Vol.    507M      511M

Total Vol.  1464M     1426M
M = millions


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

Commitments Of Traders Report: 12/09/03

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

There is just a hint of bearishness in the Commercials who have
upped their short positions. Right on cue the small traders have
increased their long positions but to a greater extent.


Commercials   Long      Short      Net     % Of OI
11/11/03      389,965   415,259   (25,294)   (3.1%)
11/18/03      393,893   414,442   (20,549)   (2.5%)
12/02/03      394,531   414,223   (19,692)   (2.4%)
12/09/03      396,882   420,859   (23,977)   (2.9%)

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
11/11/03      136,072    74,249    61,823    29.4%
11/18/03      147,842    80,047    67,795    29.7%
12/02/03      154,788    85,776    69,012    28.7%
12/09/03      172,178    99,484    72,694    26.8%

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

The spread is narrowing between longs and shorts in the
commercials.  The opposite is happening in small traders'
positions with longs surging more than 20K contracts.


Commercials   Long      Short      Net     % Of OI 
11/11/03      249,864   258,503    ( 8,639)  ( 1.7%)
11/18/03      249,286   264,083    (14,797)  ( 2.9%)
12/02/03      283,199   268,833     14,366     2.6%
12/09/03      294,006   288,385      5,621     1.0%

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
11/11/03       94,649    51,815    42,834    29.2%
11/18/03       95,119    61,975    33,144    21.1%
12/02/03     119,555     77,609    41,946    21.3%
12/09/03     142,173     76,171    66,002    30.2%

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


NASDAQ-100

There is a similar surge in commercial positions for the NDX
as seen in the S&P futures.  Small traders also increased
long and shorts but leaning heavily on new longs.


Commercials   Long      Short      Net     % of OI 
11/11/03       35,889     49,201   (13,312) (15.6%)
11/18/03       35,608     49,689   (14,081) (16.5%)
12/02/03       35,569     48,552   (12,983) (15.4%)
12/09/03       39,612     51,443   (11,831) (13.0%)

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
11/11/03       26,212    10,730    15,482    41.9%
11/18/03       32,034    10,356    21,678    51.3%
12/02/03       21,594     9,429    12,165    39.2%
12/09/03       25,842    10,228    15,614    43.3%

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 is little to report for DJ futures by commercial 
traders but small traders have significantly increased their
short positions.


Commercials   Long      Short      Net     % of OI
11/11/03       20,209    11,660    8,549      26.8%
11/18/03       20,746    11,080    9,666      30.4%
12/02/03       21,128    12,379    8,749      26.1%
12/09/03       20,378    11,934    8,444      26.1%

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
11/11/03        6,105     8,201   (2,096)   (14.7%)
11/18/03        5,655     8,607   (2,952)   (20.7%)
12/02/03        6,667     9,302   (2,635)   (16.5%)
12/09/03        6,858    12,006   (5,148)   (27.3%)

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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PremierInvestor.net Newsletter          Weekend Edition 12-14-2003
                                                    section 2 of 3
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 two:

Tech Stocks
  Bullish Play Updates:  NXTL
  Bearish Play Updates:  SLAB, UTEK

Active Trader (Non-tech)
  New Bullish Plays:     CIT
  New Bearish Plays:     ANF
  Bullish Play Updates:  FLIR, MRO
  Bearish Play Updates:  DLTR, TSG

High Risk/Reward
  Bullish Play Updates:  SIRI
  Bearish Play Updates:  NTES
  Closed Bearish Plays:  FCEL


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

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

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


Nextel Comms - NXTL - close: 25.30 change: -0.08 stop: 24.00

More than 2 weeks after we initiated coverage and NXTL has 
managed to tack on a whopping 3 cents.  Impatient traders might 
wonder when things are ever going to get moving, and from the 
looks of things it could be early next week that gets the ball 
rolling.  After the initial breakout, we "knew" NXTL was going to 
run into trouble near $26 at the top of the rising channel and 
that's why we cautioned against chasing the stock higher.  The 
optimum entry point was a dip and rebound from the $24.50 area 
and that's almost exactly what transpired last week.  After 
dipping as low as $24.26, NXTL found support at the 20-dma 
($24.59), confirming new support at old resistance.  Dips near 
the $24.50 level will still provide the best setup for new 
entries.  The rebound back over $25 sets the stage for another 
run at the $26 level, and this time we might even see a breakout 
over the top of the channel.  Once NXTL breaks back over $26, 
that will put the stock inside the gap from February 2001 and we 
could see a fairly quick run towards the top of that gap near 
$30.  Maintain stops at $24.

Picked on November 26th at  $25.27
Change since picked          +0.03
Earnings Date              1/15/04 (unconfirmed)
Average Daily Volume =    16.5 mln






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


Silicon Labs. - SLAB - close: 44.31 change: -1.38 stop: 46.75

Everyone has gotten a chance at our bearish play on SLAB since we 
began coverage just over a week ago.  The breakdown under support 
on December 4th was the trigger for bearish momentum players to 
enter the fray.  Since then, the stock has come back up to test 
resistance in the $45.50-46.00 area a couple times, with each 
rollover providing the opportunity for secondary entries.  The 
20-dma ($46.60) is rapidly falling towards current price action, 
which ought to reinforce that support and protect our $46.75 
stop.  The Semiconductor index (SOX.X) is struggling with the 
$500 level (now as resistance) and a rollover there in 
conjunction with SLAB rolling below resistance would make for a 
solid entry setup.  Traders that would prefer a breakdown entry 
will need to watch for SLAB to break $42 support, ideally with 
the SOX cracking below $475 support.  Keep an eye on our $39-40 
target area after that breakdown, as we'll want to harvest gains 
down there before another bounce can get underway.

Picked on December 3rd at   $46.55
Change since picked          -2.23
Earnings Date              1/19/04 (unconfirmed)
Average Daily Volume =    1.25 mln




---

Ultratech Stepper - UTEK - cls: 27.82 chng: -0.41 stp: 29.25

Just as we feared might happen, UTEK caught a fairly solid bounce 
from the $26 area, as the bulls made a last ditch stand, 
defending support from late August.  But that rebound ran out of 
steam near $28.50, confirming that broken support is now posing 
as resistance.  While aggressive due to the rising Stochastics, 
this rollover is where aggressive traders should be initiating 
new positions in anticipation of the stock heading back down and 
breaking that $26 support.  Once below there, we can expect for 
the stock to find support again near $24 on its way down towards 
our eventual target near the 200-dma ($22.25).  We're still 
expecting the $28.50-29.00 area to be stiff resistance, and by 
Monday the 20-dma ($29.38) will have fallen below our $29.25 
stop.  Either the bears defend resistance at that point or we'll 
be sitting on a busted play.  Conservative traders unwilling to 
try gaming a rollover will need to wait for UTEK to break below 
$26 before playing.

Picked on December 7th at   $28.20
Change since picked          -0.38
Earnings Date              1/15/04 (unconfirmed)
Average Daily Volume =       385 K





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

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

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

CIT Group - CIT - close: 34.05  change: +0.05  stop: 32.40

Company Description:
CIT Group Inc. (NYSE:CIT), a leading commercial and consumer 
finance company, provides clients with financing and leasing 
products and advisory services.  Founded in 1908, CIT has nearly 
$50 billion in assets under management and possesses the 
financial resources, industry expertise and product knowledge to 
serve the needs of clients across approximately 30 industries.  
CIT, a Fortune 500 company, holds leading positions in vendor 
financing, U.S. factoring, equipment and transportation 
financing, Small Business Administration loans, and asset-based 
and credit-secured lending. CIT, with its principal offices in 
New York City and Livingston, New Jersey, has approximately 6,000 
employees in locations throughout North America, Europe, Latin 
and South America, and the Pacific Rim.

Why We Like It:
Since March, CIT has charged up a rising regression channel on 
its daily chart, and it looks ready to do it again.  As it has 
done numerous times since March, it retraced to the bottom of 
that channel, finding support at the (black) 30-dma.  RSI turned 
up again, and stochastics slow their descent in mid-channel, 
looking as if they might hook up again.  

One note of caution sounds when we study the P&F chart, because 
CIT long ago exceeded its $28.00 objective.  It has also exceeded 
the Morgan Stanley and UBS targets of $26-27, so is subject to a 
downgrade on valuation.  If this bullish play is living on 
borrowed time, however, CIT sure doesn't know it, as the bar 
chart shows.  We have noted bearish MACD divergence on the chart, 
but the same bearish MACD divergence showed up months ago, 
between the July and September, and September and October peaks, 
and CIT continues to climb.  That MACD divergence alerts us to be 
careful of stops, but since CIT has such a well-defined channel, 
that should not prove difficult.  Initially, we're setting the 
stop just below the (pink) 50-dma, with the initial stop at 
$32.40.  We're setting a tight target, too, at $37.50, the site 
of a swing high on the monthly chart.  We see the possibility for 
CIT to climb much higher, however, but would rather exit ahead of 
the volatility we expect at that level.    

This week, CIT Equipment Finance, one division of CIT, announced 
that a survey of U.S. construction industry leaders showed that 
in eight out of the nine regions surveyed, respondents revealed 
double-digit growth in optimism.  CIT Equipment Finance's 
president crowed about the outlook, calling the results the best 
in the survey's 28-year history.  

An ideal entry would occur on a pullback to the (black) 30-dma or 
to the trendline, but we're not sure those entries will be 
offered.  Entries could also be taken at the current level.  

Annotated Chart for CIT:


Picked on Dec 12 at  34.05
Change since picked: -0.90
Earnings Date:    01/22/03 (unconfirmed)
Average Daily Volume:  879 thousand




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


Abercrombie & Fitch - ANF - cls: 24.59 chng: -0.30 stp: 25.75

Company Description:
A specialty retailer, ANF is principally engaged in the purchase, 
distribution and sale of men's, women's and children's casual 
apparel.  The company's retail activities are conducted through 
retail stores, a catalogue, a magazine and a website, all bearing 
some form of the company name.  Merchandise is targeted to appeal 
to customers in specialty markets, who have distinctive consumer 
characteristics.

Why we like it:
Between less than stellar Retail Sales comparisons going into the 
holidays and some mixed economic reports, the Retail sector 
(RLX.X) has really been losing its appeal with investors.  After 
rolling over from the $390 level in early December (also right at 
the bottom of the already violated ascending channel), the RLX 
dropped through the 50-dma and continued to fall last week, even 
breaking below the $370 support level.  Simply put, the RLX is 
losing strength, just as we head into the holiday shopping 
season.  Could it be that investors are selling after already 
pricing in strong performance in Q4?  While it certainly looks 
like a pocket of weakness, if we're going to play the downside, 
we need to focus our efforts on stocks in the sector that are 
looking particularly weak.  ANF definitely fits that bill, having 
broken down from a broad topping formation that began to form in 
April.  The catalyst for the drop back on December 4th was the 
company's November same-store sales, which fell 13%, much worse 
than the 5% consensus drop.  That propelled the stock below major 
support at $26 and since then the stock has been coiling just 
above $24.

This coil looks like the prelude to another breakdown and if the 
$24 level gives way, we'll be looking for an eventual fall to the 
$20 area.  The PnF chart agrees with the bearish outlook, as it 
gave a new Sell signal with the drop under $26, which also broke 
the bullish support line.  The current bearish vertical count 
points to a downside target of $17, which isn't far above the 
lows from last October.  We're going to start coverage with a $24 
entry trigger and favor momentum entries when that breakdown 
occurs.  ANF should make a fairly quick move down towards the $22 
level, as that is the bottom of the gap from early January.  
Expect a reactive bounce from the bottom of that gap, which 
should set up a rollover entry prior to the stock continuing down 
to our $20 target.  Place initial stops at $25.75, which is above 
both the 10-dma ($25.68) and the top of the recent consolidation 
zone.

Annotated Chart of ANF:


Picked on December 14th at  $24.59
Change since picked          +0.00
Earnings Date              2/17/04 (unconfirmed)
Average Daily Volume =    2.09 mln




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

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


FLIR Systems - FLIR - close: 35.33 change: +0.05 stop: 33.90

After spending the entire week toying with us, FLIR looks like it 
must might be ready to get moving again.  Tuesday's brief spurt 
over $36 was the only meaningful bullish move last week and the 
fact that it was turned back so abruptly and was followed by a 
sizable loss on Wednesday had us doubting whether FLIR would 
survive its stop into the weekend.  But just as they've been 
doing for months, the bulls stepped in just above support and 
sent the stock back higher.  Ending the week above $35 once again 
puts the stock in position to break out and make an assault on 
our $38 target.  Note how support has been holding near the 
$34.25 level (also the site of the 20-dma) for the past 3 days, 
and that lends credence to the bullish continuation case.  
Another dip near support can be used for new entries, especially 
with our stop set so close at $33.90.  Momentum traders need to 
be careful buying an apparent breakout, as the intraday high from 
Tuesday ($36.14) needs to be cleared before buying strength.

Picked on November 23rd at  $33.90
Change since picked          +1.43
Earnings Date              1/21/03 (unconfirmed)
Average Daily Volume =       383 K




---

Marathon Oil - MRO - close: 30.89 change: +0.02 stop: 29.59*new*

At a conference in Doha this week, a Libyan National Oil 
Corporation official said that progress was being made on the 
attempts by MRO, AHC, and COP to extend the permits they hold for 
Libyan oil concessions.  Libya wants to attract foreign oil 
investors, but the U.S. government has been dragging its feet 
about lifting sanctions that forbid U.S. companies to bid.  MRO, 
AHC, and COP, the Oasis group, hold permits which expire in 2005.

The XOI, the Amex Oil Index, charged higher into the end of the 
week, too, so MRO's strong performance might have been due to 
sector strength.  Whatever the reason, MRO added to its gains 
this week.  Volume remained stronger than average, although it 
did not maintain the high levels seen when MRO first pushed 
through resistance.  Oscillators look strong, too.  Friday's 
candle proved to be a doji, however, signaling uncertainty about 
driving the stock higher.  Now that MRO is safely above weekly 
resistance, it may be time for consolidation or even a retreat 
back to test that former resistance just above $30.00.  

We've raised our stop to $29.59, just under the linked 30- and 
50-dma's.  Retreats to and bounces from the 10-dma might be used 
to add to positions or enter a new one.

Annotated Chart for MRO:


Picked on Dec 05 at  30.22
Change since picked: +0.67
Earnings Date:    01/27/04 (confirmed)
Average Daily Volume:  1.2 million




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


Dollar Tree - DLTR - close: 29.28  change: -0.71  stop: 31.51

Friday, DLTR announced the appointment of a new member to its 
Board of Directors, but the big news this week was the better-
than-expected retail sales number for November, up 0.9 percent. 
Economists had expected a 0.6 percent rise.  Although the 
headline number was better than expected, autos accounted for 
much of that increase, and the increase did not match the 
summer's growth pace.  On CNBC on Friday, an analyst discussed 
the retail sector, saying that discount retailers had seen big 
gains and that they'd pretty much run their course.

While the retail sales figure helped DLTR post a gain Thursday, 
that gain could not pierce the descending trendline that has been 
pressuring DLTR since it fell beneath its 200-dma.  Friday, the 
losses resumed, with DLTR dropping hard through the early part of 
Friday's session.  All the oscillators flattened.  

Next support shows up at $28.00, but that support does not appear 
as strong as the support level that DLTR just crossed.  We 
mentioned when this play was initiated, however, that play 
participants should expect volatility as DLTR moved into that 
congestion zone from its weekly chart, and that volatility may 
still present itself.  Use any bounces up to the descending 
trendline or the 10-dma to enter new positions.  

Annotated Chart for DLTR:


Picked on Dec 10 at  29.54
Change since picked: -0.31
Earnings Date:    11/25/03 (confirmed)
Average Daily Volume:  2.0 million




----

Sabre Hldgs - TSG - close: 20.43  change: +0.32  stop: 21.60

We were gratified to see that TSG's end-of-week climb occurred on 
lighter-than-average volume.  Oscillators look stronger than we 
would like, particularly RSI, and Friday's candle showed the 
price springing from support that TSG had laboriously formed over 
the last week.  TSG followed the progress of the XAL, the Airline 
Index, as it, too, rose to test broken support, with one 
difference:  while the XAL closed below its 10-dma, TSG actually 
sprang up from its 10-dma.  

It's possible that TSG will now spend a few days testing that 
broken support line, now crossing at about $20.60, depending on 
how the line is drawn.  The (blue) 21-dma now converges with that 
line, with the (black) 30-dma sloping down toward it, too, now 
measuring $20.98.  Even the 50-dma lies between TSG's current 
price and our $21.60 stop.  

Because of that strong spring from support, only aggressive 
traders should consider new entries.  Those traders can use 
bounces to and rollovers from the rising red trendline to enter 
new positions.  Before entering, make sure that volume does not 
expand with the bounce, and check the XAL, too, to make sure it 
hasn't broken back above its 50-dma.  Forego new entries if it 
has.  

Annotated Chart for TSG:


Picked on Dec 03 at  19.92
Change since picked: +0.51
Earnings Date:    10/23/03 (confirmed)
Average Daily Volume:  727 thousand





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

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

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

Sirius Satellite Radio - SIRI - cls: 2.19 chng: +0.02 stop: 2.05

It wasn't a stellar week for SIRI, as the stock continued to 
vacillate between support and resistance, unable to break 
significantly in either direction.  The 50-dma ($2.20) 
consistently turned back every rally attempt, while the dips were 
bought near the $2.10 level.  Despite the rangebound action, SIRI 
was starting to look a bit stronger on Friday, rebounding to 
close just under the 50-dma and quite possibly set up for a 
breakout move early next week.  It is hard to draw too many 
conclusions though, with anemic volume that continues to run at 
only about a third of the ADV.  Until this range breaks 
decisively, the action points remain the same.  Enter on dips and 
rebounds above $2.10 or on a breakout over $2.25, preferably on 
increasing volume.  Maintain stops at $2.05 and look for the 
first upside target of $2.40 to be hit shortly after that 
breakout over $2.25.

Picked on November 30th at   $2.08
Change since picked          +0.11
Earnings Date              1/28/04 (unconfirmed)
Average Daily Volume =    53.6 mln





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

Netease.com - NTES - close: 40.39  change: -0.11  stop: 43.01

With the 200-dma and the 50 percent rally retracement to provide 
support, NTES climbed laboriously toward next resistance, but no 
one wanted to help it along.  Volume proved less than half 
average daily volume.  Other Chinese Internet-related stocks 
SINA, SOHU, and ZICA gained Thursday and Friday, but NTES printed 
a small-bodied candle, closing lower.  SINA, SOHU, and ZICA each 
face resistance just overhead, too, with SINA and SOHU each 
printing a doji or small-bodied candle on Friday.

NTES has not yet triggered this play by falling through 
Wednesday's $38.24 low.  We want to remind readers, too, of the 
50 percent rally retracement at about $36.40, a level at which we 
expect to see a strong bounce attempt.  Some traders might want 
to wait for a drop through that important retracement level 
before entering.

Annotated Chart for NTES:


Picked on Dec 10 at  38.96
Change since picked: +1.43
Earnings Date:    10/28/03 (confirmed)
Average Daily Volume:  4.6 million





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


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

FuelCell Energy - FCEL - close: 12.56 change: -0.18  stop: 13.25

With FCEL's earnings due to be reported Tuesday morning, we're 
closing the play this weekend.  As we'd warned might happen on 
Wednesday, FCEL climbed at the end of the week, ahead of next 
week's earnings announcement.  The climb proved tepid with FCEL 
producing a doji during Friday's trade.  The 10-dma held back 
further advances.  We suggested that FCEL might climb underneath 
recently broken resistance and cling there until the earnings 
announcement and that may be happening.

Although MACD remains flat with the histogram registering 
negative numbers, the histogram showed a rising lower trendline.  
Stochastics made a bullish kiss, but the end-of-week climb was 
not strong enough to pull them out of territory indicating 
oversold conditions.  They could still trend there.  RSI proved 
inconclusive, rising Thursday and flattening Friday.

Picked on Nov 28 at  13.46
Change since picked: -0.90
Earnings Date:    12/16/03 (unconfirmed)
Average Daily Volume:  753 thousand






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

This newsletter is a publication dedicated to the education
of stock traders. The newsletter is an information service
only. The information provided herein is not to be construed
as an offer to buy or sell securities of any kind. The
newsletter picks are not to be considered a recommendation
of any stock but an information resource to aid the investor
in making an informed decision regarding trading in stocks. It
is possible at this or some subsequent date, the editors and
staff of PremierInvestor.net may own, buy or sell securities
presented. All investors should consult a qualified professional
before trading in any security. The information provided has
been obtained from sources deemed reliable but is not
guaranteed as to accuracy or completeness. PremierInvestor.net
staff makes every effort to provide timely information to its
subscribers but cannot guarantee specific delivery times due to
factors beyond our control.

Please read our disclaimer at:
http://www.optioninvestor.com/page/oin/aboutus/disclaimer.html

*****************************************************************
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The Premier Investor Network.
Do not duplicate or redistribute in any form.




PremierInvestor.net Newsletter          Weekend Edition 12-14-2003
                                                    section 3 of 3
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 three:

Market Watch for Week of December 15, 2003
   - Major Earnings
   - Stock Splits
   - Economic Reports

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 Watch for the week of December 15th
==========================================

-----------------
Earnings Calendar
-----------------

Symbol  Co               Date           Comment      EPS Est

------------------------- MONDAY -------------------------------

LEN    Lennar Corporation    Mon, Dec 15  After the Bell     3.06
ORCL   Oracle                Mon, Dec 15  After the Bell     0.11

------------------------- TUESDAY ------------------------------

FDS    FactSet Research Sys  Tue, Dec 16  -----N/A-----      0.39
GTK    GTECH Holdings Corp.  Tue, Dec 16  Before the Bell    0.63
MATK   Martek Biosciences    Tue, Dec 16  After the Bell     0.21
PIR    Pier 1 Imports, Inc.  Tue, Dec 16  -----N/A-----      0.35


-----------------------  WEDNESDAY -----------------------------

COMS   3Com                  Wed, Dec 17  -----N/A-----     -0.14
BSC    Bear Stearns          Wed, Dec 17  Before the Bell    1.79
BBBY   Bed Bath & Beyond Inc Wed, Dec 17  After the Bell     0.31
BBY    Best Buy Co., Inc.    Wed, Dec 17  Before the Bell    0.37
KMX    CarMax, Inc           Wed, Dec 17  Before the Bell    0.17
CTAS   Cintas Corporation    Wed, Dec 17  Before the Bell    0.39
CC     Circuit City Stores   Wed, Dec 17  Before the Bell   -0.07
COGN   Cognos                Wed, Dec 17  After the Bell     0.25
FDX    FedEx                 Wed, Dec 17  Before the Bell    0.90
GIS    General Mills, Inc.   Wed, Dec 17  -----N/A-----      0.85
MLHR   Herman Miller         Wed, Dec 17  After the Bell     0.16
JBL    Jabil                 Wed, Dec 17  After the Bell     0.23
LEH    LEHMAN BROS HLDGS INC Wed, Dec 17  Before the Bell    1.57
SCHL   Scholastic            Wed, Dec 17  After the Bell     1.67
TIBX   TIBCO Software        Wed, Dec 17  After the Bell     0.02
WGO    Winnebago             Wed, Dec 17  Before the Bell    0.86
WOR    Worthington Ind       Wed, Dec 17  -----N/A-----      0.11


------------------------- THUSDAY -----------------------------

AYI    Acuity Brands, Inc .  Thu, Dec 18  -----N/A-----      0.25
APOL   Apollo Group          Thu, Dec 18  Before the Bell    0.39
BMET   Biomet, Inc.          Thu, Dec 18  Before the Bell    0.31
CCL    Carnival Corp & Crnvl Thu, Dec 18  -----N/A-----      0.28
DRI    Darden Restaurants    Thu, Dec 18  After the Bell     0.16
FDO    Family Dollar         Thu, Dec 18  Before the Bell    0.37
GPN    Global Payments Inc.  Thu, Dec 18  After the Bell     0.41
GS     Goldman Sachs         Thu, Dec 18  Before the Bell    1.52
MWD    Morgan Stanley        Thu, Dec 18  Before the Bell    0.89
NKE    Nike                  Thu, Dec 18  After the Bell     0.61
PAYX   Paychex               Thu, Dec 18  After the Bell     0.21
RHAT   Red Hat, Inc.         Thu, Dec 18  After the Bell     0.02
RAD    Rite Aid Corporation  Thu, Dec 18  Before the Bell    0.02
SLR    Solectron             Thu, Dec 18  -----N/A-----     -0.03
SCS    Steelcase Inc.        Thu, Dec 18  After the Bell    -0.06
TTWO   Take-2 Inter. Sftwr   Thu, Dec 18  Before the Bell    0.59
TEK    Tektronix Inc.        Thu, Dec 18  After the Bell     0.16


------------------------- FRIDAY -------------------------------

ATYT   ATI Technologies      Fri, Dec 19  Before the Bell    0.18
GUC    Gucci Group NV        Fri, Dec 19  Before the Bell    0.63
JOYG   Joy Global Inc.       Fri, Dec 19  Before the Bell    0.16
KBH    KB Home               Fri, Dec 19  After the Bell     3.08


----------------------------------------------
Upcoming Stock Splits In The Next Two Weeks...
----------------------------------------------

Symbol  Co Name              Ratio    Payable     Executable


ADTN    Adtran                    2:1      Dec  15th   Dec  16th
PX      Praxair Inc               2:1      Dec  15th   Dec  16th
IMDC    Inamed Corporation        3:2      Dec  15th   Dec  16th
FFIC    Flushing Finl Corporation 3:2      Dec  15th   Dec  16th
CFC     Countrywide Finl Corp     2:1      Dec  17th   Dec  18th
WSBK    Wilshire State Bank       2:1      Dec  17th   Dec  18th
CW      Curtiss-Wright C          2:1      Dec  17th   Dec  18th
ROST    Ross Stores Inc           2:1      Dec  18th   Dec  19th
CLE     Claires Stores Inc        2:1      Dec  18th   Dec  19th
AMHC    American Healthways Inc   2:1      Dec  18th   Dec  19th
MBFI    MB Financial, Inc         3:2      Dec  18th   Dec  19th
SSYS    Stratasys Inc.            3:2      Dec  22nd   Dec  23rd
EDMC    Education Management Corp 2:1      Dec  22nd   Dec  23rd
DFG     Delphi Financial Grp, Inc 3:2      Dec  22nd   Dec  23rd


--------------------------
Economic Reports This Week
--------------------------

There are two and a half trading weeks left for 2003 and traders
will be hoping the Santa Claus rally can stay aloft. This Tuesday
and Thursday are packed with economic reports like the CPI, 
industrial production, capacity utilization, business inventories
and the semi book-to-bill report.


==============================================================
                       -For-           

----------------
Monday, 12/15/03
----------------
NY Empire State Index(BB)  Dec  Forecast:    35.0  Previous:     41.0


-----------------
Tuesday, 12/16/03
-----------------
CPI (BB)                   Nov  Forecast:    0.1%  Previous:     0.0%
Core CPI (BB)              Nov  Forecast:    0.1%  Previous:     0.2%
Housing Starts (BB)        Nov  Forecast:  1.910M  Previous:   1.960M
Building Permits (BB)      Nov  Forecast:  1.900M  Previous:   1.973M
Current Account (BB)        Q3  Forecast:-$136.1B  Previous: -$138.7B
Industrial Production (DM) Nov  Forecast:    0.5%  Previous:     0.2%
Capacity Utilization (DM)  Nov  Forecast:   75.3%  Previous:    75.0%
GE's Annual Outlook

-------------------
Wednesday, 12/17/03
-------------------
None


------------------
Thursday, 12/18/03
------------------
Initial Claims (BB)      12/13  Forecast:    360K  Previous:     378K
Business Inventories (DM)  Nov  Forecast:    0.3%  Previous:     0.4%
NY Empire State Index (DM) Dec  Forecast:    25.5  Previous:     25.9
Semiconductor Book-to-Bill Report

----------------
Friday, 12/19/03
----------------
None


Definitions:
DM=  During the Market
BB=  Before the Bell
AB=  After the Bell
NA=  Not Available




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

TOT     Total Sa (ADS)             86.53    +0.61
RD      Royal Dutch Petrol         48.24    +0.07
HD      Home Depot Inc             34.68    +0.15
CVX     Chevrontexaco Corp         80.07    +0.57
UTX     United Technologies Corp   91.16    +1.89


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

CE      Concord Efs Inc            13.17    +0.32
HMY     Harmony Gold Mining Co     15.96    +0.21

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

DHR     Danaher Corp               88.22    +2.69
SAY     Satyam Computer Services   26.73    +1.80
X       U.S. Steel Corp            30.41    +0.37
CBA     Brilliance CH Auto Hldgs   60.92    +5.52


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

CAE     Cascade Corp               21.14    -0.76

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

ODFL    Old Dominion Freight Lne   31.83    -1.15



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=================================================================
DISCLAIMER
=================================================================

This newsletter is a publication dedicated to the education
of stock traders. The newsletter is an information service
only. The information provided herein is not to be construed
as an offer to buy or sell securities of any kind. The
newsletter picks are not to be considered a recommendation
of any stock but an information resource to aid the investor
in making an informed decision regarding trading in stocks. It
is possible at this or some subsequent date, the editors and
staff of PremierInvestor.net may own, buy or sell securities
presented. All investors should consult a qualified professional
before trading in any security. The information provided has
been obtained from sources deemed reliable but is not
guaranteed as to accuracy or completeness. PremierInvestor.net
staff makes every effort to provide timely information to its
subscribers but cannot guarantee specific delivery times due to
factors beyond our control.

Please read our disclaimer at:
http://www.optioninvestor.com/page/oin/aboutus/disclaimer.html

*****************************************************************
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Option Investor Inc is neither a registered Investment Advisor nor a Broker/Dealer. Readers are advised that all information is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor is it to be construed as a recommendation to buy, hold or sell (short or otherwise) any security. All opinions, analyses and information included herein are based on sources believed to be reliable and written in good faith, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. In addition, we do not necessarily update such opinions, analysis or information. Owners, employees and writers may have long or short positions in the securities that are discussed.

Readers are urged to consult with their own independent financial advisors with respect to any investment. All information contained in this report and website should be independently verified.

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