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Daily Newsletter, Tuesday, 12/23/2003

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PremierInvestor.net Newsletter                 Tuesday 12-23-2003
                                                   section 1 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
=================================================================

In section one:

Market Wrap:      The Last Hurrah?
Watch List:       AIG, CMA, HRB, WCN and more!
Market Sentiment: All Hail Santa's Arrival

=================================================================
MARKET WRAP  (view in courier font for table alignment)
=================================================================
      12-23-2003           High     Low     Volume   Adv/Dcl
DJIA    10341.26 +  3.26 10375.93 10296.15 1.40 bln 1784/1028
NASDAQ   1974.78 + 18.98  1974.78  1952.44 1.30 bln 1996/1057
S&P 100   543.42 +  1.14   544.13   541.36   Totals 3780/2085
S&P 500  1096.02 +  3.08  1096.95  1091.73 
W5000   10657.14 + 37.56 10658.72 10607.84
RUS 2000  555.03 +  5.66   555.03   548.37 
DJ TRANS 3006.61 +  1.34  3006.87  2985.95
VXO        15.57 -  0.63    16.39    15.30
VIX        16.49 -  0.45    17.40    16.29   
VXN        23.49 -  1.26    25.11    23.31 
52wk Highs  491
52wk Lows    13
PUT/CALL   0.76
TRIN       1.02
=================================================================

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

The Last Hurrah?
by Keene Little

Bulls will hate me tonight, bears will love me. For those of you 
who don't follow me in the Futures Monitor, a little background 
might help you understand the reasons for my opinions. I follow 
Elliott Wave Theory. I will not bore you to tears with wave counts 
but you should know that I am neither a bull nor a bear. I can't 
afford to be either because every time I form a strong bullish or 
bearish opinion I usually lose money. It's that forest-for-the-
trees problem. Instead I let price tell me what it's doing and use 
EW analysis to give me some clues as to what might be next. I will 
admit that I have a bearish view of the market for the long term 
but I try to follow the wave pattern to tell me each day whether I 
should be going long or short. My analysis below is based on what 
these patterns are telling me. I use trend lines, fibonacci 
levels, oscillators and a slew of other technical indicators to 
help me identify turning points in the market. I think a major 
turning point is upon us. But first let's look at what happened 
today.

After cycling up and down during the night between 1093.75 early 
last night and 1090.50 early this morning, the S&P e-mini futures 
ran up slightly into the 8:30 reports but then worked their way 
lower to the open--the e-mini futures made an immediate low of 
1090.25 at the 9:30 open. After the initial pop in the morning, we 
worked our way lower and by the late afternoon we came back to 
that number, literally, before bouncing again into the close. All 
in all, it was an uneventful day, at least from a price 
perspective.

The early morning economic reports did little to excite today's 
market. Overall, they were good numbers but just not exciting 
numbers. The University of Michigan Sentiment was revised to 92.6 
from the previously reported 89.6 (consensus was 91.0). GDP final 
for Q3 was 8.2%, no change from previously reported. Monthly Mass 
Layoffs was 1438 compared to 1532 in November. Personal income for 
November was +0.6% while personal spending was +0.4%. The 
expectation for spending growth had been +0.7% so this number was 
a little disappointing. Even though this spending growth was the 
fastest spending growth since August, the fact that their income 
was up +0.6% means the consumer could have spent more! Where are 
those consumers when you need them most? Don't they realize they 
need to go into greater debt during this holiday period to support 
this economy? The slower retail sales reported yesterday tell us 
the consumer is not willing to do this. So there was no excitement 
with all these numbers. In fact the pre-market futures dropped 
slightly after all these announcements.

At the opening kick-off, there was a fair amount of volatility and 
the market ran higher in the first hour of trading. From there the 
market back-pedaled the rest of the day. It was a slow grind south 
as some of yesterday's gains were returned. But as seems to be 
happening a lot lately, the mid-afternoon rally kicked into gear 
and we saw a fairly steep rally as we headed into the close. The 
only indexes to make new highs for the day were the techies and 
the small caps. It looked like some good short-covering going on 
there. Check out the run in the Russell 2000 in the last hour of 
trading. Too many eager shorts I'd say. I guess everyone got 
excited about RIMM's 3rd-quarter earnings announcement that was 
double the analysts' expectations. They also doubled the outlook 
for the 4th quarter. Micron Technology added to the excitement by 
increasing their earnings expectation by 3%. So if those two 
companies are doing well it must mean all tech stocks are doing 
well, so BUY was the word!

As sectors go, the Computer Hardware, Multimedia, Telecom, 
Semiconductor, Biotech, etc. indexes ran up roughly 1.0% to 3.3% 
today. Looks like what people did not want for the past two weeks, 
they wanted it back today. The gold indexes also bounced strong 
today, but got back only a little of what they've given up since 
the beginning of December. At the other end of the market were the 
Oil Service, Energy, Oil and Natural Gas indexes which took the 
biggest drubbing today, down 1.9%, 1.0%, 0.7% and 0.5%, 
respectively. I've seen evidence that oil prices may well have 
peaked at last week's price of about $33.50/barrel. Projections 
are for oil prices to sink back down to $20 some time next year 
(it closed at $31.75 today). Now that would be a nice Christmas 
present for next winter for all of us paying high prices at the 
pump and for our heat. 

For the DOW, it had a middle-of-the-road day today. It showed 
greater weakness relative to the NAZ which was a different 
behavior from what we've seen most of this month. Of the 30 
components, 17 gained ground today, so only about half the 
companies were pulling their share of the load today. But nearly 
half of those 17 hit new 52-week highs today, as did the S&P 500, 
which hit 1096.95 today, a high not seen since May 2002. As I'll 
discuss below, this 1096 level is very important and may be a 
rally high, or very near to it. The DOW components hitting their 
52-week highs were Alcoa, Boeing, Caterpillar, DuPont, Exxon Mobil 
(interesting as their sector was hit hardest), Honeywell and 
Procter & Gamble.

Market internals were actually stronger than the closing numbers 
would indicate. Advancing/declining issues and advancing/declining 
volume were positive all day. Seems like we had slow bleeds 
interspersed with buying spurts, so the buying was stronger but 
"they" were letting the market settle back each time so "they" 
could buy cheaper products. Just a guess. Overall market volume 
was below average, but no surprise there.

Looking at the major indexes, we see an overbought and extended 
market. Deja vu all over again, harking back to the days in late 
1999, early 2000. My guess is that the result of this over-
exuberance will be the same as it was then. Longs need to suck up 
your stops tight to get as much out of this as you can. Bears are 
salivating for their turn at the food table. Bears have been 
getting their paws slapped for trying to sneak a bite before it's 
their turn. The bulls are pretty full and looking sleepy so it's 
almost time to rotate positions.

Let's look at the major indexes:

The DOW daily:

 

The DOW weekly:

 

S&P 500(SPX) daily

 

Zeroing in a little closer, here's the Nasdaq-100 chart. So far 
the high put in on December 3rd has not been exceeded, nor do I 
think that it will. We're very close though, so just a little more 
rally would do it.

NDX 120-min chart:

 


Now I know a lot of people are going to look at my bearish 
comments as proof I've lost my marbles. Everyone knows that the 
Santa Claus rally goes through the end of the year and into the 
first week or two of January. I will admit that my opinion about 
the market topping right here is causing me some consternation due 
to this "belief" that we will rally. Too many people expect it and 
will make it happen. Ah, therein lies the rub. How many times have 
we seen high expectations for the market, only to then be 
surprised? Didn't everyone expect a sell-off to occur in the 
normally bearish period of September-October, especially after the 
strong rally we had seen since the spring? What happened? We 
rallied. Then everyone was expecting November to see a strong 
sell-off since we hadn't taken a breather in 8 months. What 
happened? We dropped a little but ended the month nearly back to 
even. Now everyone is expecting Santa to not disappoint us. What 
will happen? Mr. Elliott is telling me to pull my stops up tight 
and that we may have an opportunity to short this market like we 
haven't seen since early 2000.

But what about all that new money that will be coming into the 
market in the beginning of January? Surely it will drive the 
market higher since it's unlikely to make it into money market 
funds. If the market starts down, as I suspect it will, my 
expectation is that we will indeed see a rally in January. It 
might even bring the market all the back up to the highs we're 
currently seeing. But for the EW count I'm showing to stay intact, 
once we tip over we will not make new highs in January. In fact 
you may be witnessing highs that won't be seen again for, well, 
let's just say a very long time. But that's for another 
discussion.

Tomorrow morning we have a couple of economic reports. At 8:30 am 
we have Durable Goods Orders for November. Forecast is +1.5% while 
the market consensus is +0.6% (October was +3.3%). Initial 
Unemployment claims will also be reported at 8:30 am. Forecast and 
market consensus is 355K (353K was the prior number). New Home 
Sales for November is reported at 10:00 am. Forecast is 1.14M 
while market consensus is 1.11M (prior number was 1.105M).

I don't see anything earth shattering in these economic numbers so 
it's tough to tell how it might affect the market. My expectation, 
based on EW analysis and fibonacci levels (along with the myriad 
bearish divergences) is that we could see an initial move up at 
the open but it will be short-lived as I believe it will mark the 
tippy top of this market. For the bears, consider shorting any 
opening move higher. For the bulls, decide how much you're willing 
to give back. I could be wrong on this (wouldn't be the first 
time, not by a long shot), so only you can decide where you want 
your stop. Bears, don't get overly enthusiastic such that you lose 
your discipline. This market has defied most technical indicators 
for a long time now. Keep your stops tight and don't let your 
"belief" get in the way of sound money management.

Good luck to everyone in their trading tomorrow. Have a great 
night and I'll see some of you in the Futures Monitor tomorrow for 
a shortened day of trading (market closes at 1:00 pm). Let's see 
what Ms. Market serves up in the morning.



==================================================================
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
---------------------------------

American International Group - AIG - close: 64.90 change: +0.26

WHAT TO WATCH: No you aren't imagining things, AIG was in this 
spot last Thursday as well.  The technical setup is looking even 
more favorable for a breakout tonight, as the stock has been 
banging against the $65 resistance level for the past four days.  
Use a breakout over $65 as an entry trigger and target a quick 
move to the $70 area.




---

Comerica Inc. - CMA - close: 54.51 change: +0.81

WHAT TO WATCH: After the sharp rise in late October, shares of 
CMA have been steadily advancing in a higher-highs and higher-
lows pattern.  Tuesday's session say a breakout to a new high and 
a push up towards $58-59 resistance seems likely.  Take advantage 
of any intraday pullbacks near the 20-dma for a more favorable 
entry.



---

H. R. Block Inc. - HRB - close: 54.00 change: +0.68

WHAT TO WATCH: It isn't tax season yet, but you wouldn't know it 
to look at shares of HRB.  The stock broke out strongly in late 
November on the heels of the company's blowout earnings report.  
After a bit of consolidation of that strong move, HRB looks ready 
to break out again.  Use a trigger at $54.60 (just over the 11/28 
high) and look for a continued rally up near the $60 level.




---

Waste Connections - WCN - close: 37.70 change: +0.64

WHAT TO WATCH: WCN has been stymied near the $37 resistance level 
all year, with each rally to that level resulting in a sharp drop 
back to support near $32. Something is different this time 
though, as the stock blasted through that resistance on Tuesday 
to set a new recent high.  Play the breakout up to the $39-40 
area, in the vicinity of the stock's all-time highs.  Better 
entries may be possible on a pullback near the 20-dma, just below 
$37.




---

Federal Express - FDX - close: 68.99 change: -0.31

WHAT TO WATCH: FDX is another retread from Thursday's list, as 
the opportunity is still ripe.  FDX continues to drift lower 
along its descending trendline connecting the lows from late 
October and late November.  A rebound from this trendline is 
likely, with a rollover from the $71-72 area providing the 
optimum entry.  Target a drop to the $66 area near the 200-dma.





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

NVDA $21.96 - Ripe for a breakout, NVDA has been banging its head 
on $22 resistance for the past several weeks and looks like it 
wants to go higher.  Use a trigger above $22.25 and play for a 
rally up to the $25-26 area.

MESA $13.85 - After struggling below the $13 level for several 
months, shares of MESA have been seeing some very strong buying 
volume the past few days and on Tuesday broke out with 
conviction.  While it may be a bit too extended to chase higher, 
a pullback to confirm $13 as newfound support should provide an 
excellent entry point ahead of a rally up near the $15 area to 
fill the gap left behind after the September-2001 plunge.

BSTE $27.10 - BSTE has been finding strong support near $25 for 
the past two months and it looks like it is ready to finally make 
a solid bullish move.  Tuesday's volume was strong, taking the 
stock back over the 50-dma.  A pullback near $26 looks good for 
new entries ahead of a rally up near the $30 resistance.



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


All Hail Santa's Arrival
- J.  Brown

Markets made merry with yet another bullish close and new highs 
for the DJIA and the S&P 500.  However, this time it was the 
NASDAQ's turn to outpace its rivals with nearly a one percent 
gain.  Bulls certainly ruled the day with the advance-decline 
line hitting almost 18 to 10 on the NYSE and 2 to 1 on the 
NASDAQ.  New highs soared again on the NYSE and up volume 
strongly out paced down volume on both exchanges.  Much of the 
talk today was about the low volume and it's expected to get 
worse tomorrow (Christmas Eve) and Friday.   The markets close 
early both sessions and the majority of market participants will 
be absent.  

Santa has indeed delivered thus far for 2003 and he has inspired 
investors to buy the dip (yet again), which drove the indices 
from minor losses to gains in the last couple of hours of 
trading.  The Dow and the SPX may be overbought but we can 
probably expect the trend to continue tomorrow and Friday.  It is 
interesting to note that the Dow's bullish percent data has 
turned ominously into a "bear confirmed" pattern.  That means the 
internals of the index are weakening and it should set up for the 
first quarter correction we're all expecting.

Wednesday does bring the November durable goods report and 
economists are looking for a gain.  Analysts are also looking for 
strong numbers in the new home sales data out tomorrow. 


! Holiday schedule note:  The Market Sentiment column will be 
absent over the Christmas holiday and will resume again on 
Tuesday, December 30th, 2003.


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

Market Averages

DJIA ($INDU)

52-week High: 10375
52-week Low :  7416
Current     : 10341

Moving Averages:
(Simple)

 10-dma: 10147
 50-dma:  9848
200-dma:  9177

S&P 500 ($SPX)

52-week High: 1096
52-week Low :  788
Current     : 1096

Moving Averages:
(Simple)

 10-dma: 1077
 50-dma: 1055
200-dma:  984

Nasdaq-100 ($NDX)

52-week High: 1453
52-week Low :  795
Current     : 1448

Moving Averages:
(Simple)

 10-dma: 1416
 50-dma: 1412
200-dma: 1264


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

If the historical trends for a bullish second half of December 
come true then look for these volatility indices to remain or 
extend their current lows.

CBOE Market Volatility Index (VIX) =  16.49 -0.45
CBOE Mkt Volatility old VIX  (VXO) =  15.57 -0.63
Nasdaq Volatility Index (VXN)      =  23.49 -1.26


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

          Put/Call Ratio  Call Volume   Put Volume

Total          0.76        585,116       442,008
Equity Only    0.58        489,783       282,026
OEX            1.12         14,103        15,837
QQQ            1.46         35,861        52,297


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

Bullish Percent Data

           Current   Change   Status
NYSE          75.6    + 0     Bull Confirmed
NASDAQ-100    67.0    + 2     Bear Confirmed
Dow Indust.   76.6    - 3     Bear Confirmed
S&P 500       81.8    + 1     Bull Confirmed
S&P 100       81.0    + 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: 0.88
10-dma: 0.91
21-dma: 0.99
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    1783      1997
Decliners    1027      1057

New Highs     410       169
New Lows        9         6

Up Volume    852M      918M
Down Vol.    528M      360M

Total Vol.  1402M     1301M
M = millions


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

Commitments Of Traders Report: 12/16/03

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

Finally!  The commercials are finally putting some money to work
and we're seeing strong increases in both long and short positions.
New longs soared about 50K contracts while new shorts jumped about
40K contracts.  Overall, commercials remain net short.  Small 
traders have also increased their net short positions but remain
net long.


Commercials   Long      Short      Net     % Of OI
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%)
12/16/03      448,103   460,670   (12,567)   (1.4%)

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
11/18/03      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%
12/16/03      172,947   113,704    59,243    20.7%

Most bearish reading of the year:  (1,657)- 5/27/03
Most bullish reading of the year: 114,510 - 3/26/02


E-MINI S&P 500

We are seeing the same surge of activity in the e-minis.  
Commercial traders opened another 35K long contracts but opened
72K new short contracts, tipping the scales from long to short.
In contrast the retail traders reduced their shorts and opened
another 35K longs.


Commercials   Long      Short      Net     % Of OI 
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%
12/16/03      330,273   361,316    (31,043)   (4.5%)

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
11/18/03       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%
12/16/03     177,193     73,694   103,499    41.3%

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


NASDAQ-100

Again, we're seeing new money from the commercial traders.
NDX futures have seen a bump in net longs and net shorts from
both professionals and small traders.  Commercials remain
net short and small traders remain net long.


Commercials   Long      Short      Net     % of OI 
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%)
12/16/03       61,343     73,153   (11,810) ( 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
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%
12/16/03       28,676    15,197    13,479    30.7%

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

Commercials are hedging their bets on the DJ futures.  Both
longs and shorts saw a bump of about 3K contracts each.  
Meanwhile, small traders have turned decidedly bearish. The
surge of new shorts has produced the most bearish reading 
in the DJ futures since 2001.


Commercials   Long      Short      Net     % of OI
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%
12/16/03       23,509    13,880    9,629      25.8%

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
11/18/03        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%)
12/16/03        9,497    19,633  (10,136)   (34.8%)

Most bearish reading of the year: (10,136) - 12/16/03
Most bullish reading of the year:   8,523  -  8/26/03



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




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Do not duplicate or redistribute in any form.



PremierInvestor.net Newsletter                 Tuesday 12-23-2003
                                                   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
=================================================================

Play of the Day:   Blast Off!

Stop Adjustments:  NXTL

Stock Split:       HOFT


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


Nextel Comms - NXTL - close: 27.00 change: +1.08 stop: 25.50*new*

Company Description:
Nextel has come a long ways since its humble beginnings as a radio 
dispatch company.  Providing mobile phone service, two-way radio 
dispatch, and paging services to business users; all through one 
Motorola handset, the company is growing into a major digital 
wireless services provider.  NXTL's digital network (Digital 
Mobile Network) constitutes one of the country's largest 
integrated wireless communications systems utilizing a single 
transmission technology.  NXTL has specialized mobile radio 
spectrum holdings in and around every major business and 
population center in the U.S., including all of the top 50 
metropolitan areas.

Why we like it:
If "slow and steady" wins the race, then NXTL appears headed for 
the winner's circle.  After pulling back to confirm new support at 
old resistance just over $24, the stock has been steadily pushing 
higher over the past week.  The gains haven't been anything to get 
excited about yet, but the stock closed on Friday at $26 and is 
closing in on the top of its rising channel again.  If the bulls 
can continue their push higher during the abbreviated holiday 
week, we could see a breakout over the 12/1 high ($26.34) and more 
importantly, a breakout over the top of the channel ($26.50).  
That accomplishment would set the stage for NXTL to increase the 
rate of its advance and perhaps take a run at our $30 target 
before the end of the year.  We can use a dip and rebound from the 
10-dma ($25.51) as a continuation entry point.  Raise stops to 
$24.95 this weekend, just below the 20-dma ($25.22) and last 
Monday's intraday low.

Why This is our Play of the Day
We've been expecting NXTL to take another strong run at the top of 
its rising channel, as the stock has been consolidating just below 
$26 for over a week.  That assault occurred on Tuesday, with the 
stock surging higher by more than 4%, breaking through the top of 
the channel and closing very near the high of the day.  NXTL has 
now broken solidly into the gap left behind in February 2001 and 
the stage is set for a strong rally towards our $30 target near 
the top of that gap.  A pullback near the top of the broken 
channel ($26.40) or even down to the $26 level can be used for new 
entries, while momentum traders should have entered today on the 
break above $26.40, which cleared the 12/01 high.  Raise stops to 
$25.50, which is right at the site of the 20-dma.

Annotated Chart of NXTL:



Picked on November 26th at  $25.27
Change since picked          +1.73
Earnings Date              2/19/04 (unconfirmed)
Average Daily Volume =    14.5 mln



=================================================================
Stop Loss Adjustments
=================================================================

NXTL - long
Adjust from $24.95 up to $25.50



=================================================================
Stock Splits 
=================================================================

Announcements
-------------


HOFT furnishes a 2:1 stock split and an increase in cash dividend

Before today's opening bell, Hooker Furniture Corporation, Inc 
(NASDAQ:HOFT) announced that its Board of Directors has approved a 
2-for-1 stock split of its common shares outstanding and an 
increased cash dividend of $0.06.

The payable date for the stock split is set for January 30th, 2004 
to shareholders on record as of January 9th.  The payable date for 
the cash dividend is set for February 27th, 2004 to shareholders 
on record as of February 13th.

About the company:
Ranked among the nation's top 15 public furniture manufacturers in 
sales, Hooker Furniture is a 79-year old producer and importer of wall 
and entertainment systems, home office, occasional, dining, bedroom 
and upholstered leather furniture with approximately 1900 employees. 
The Company owns 9 manufacturing facilities, a distribution center and 
a warehouse located in Virginia and North Carolina. Plant locations 
include Cherryville, Hickory, Pleasant Garden, Maiden, and Woodleaf, 
N.C. and Martinsville and Roanoke, Va. The Company's stock is listed 
on the Nasdaq SmallCap Market under the symbol HOFT, and closed on 
September 30, 2003 at $34.05 per share. Please visit us on the World 
Wide Web at www.hookerfurniture.com and www.bradington-young.com.
(Source: Company Press Release)



==================
  Trading Ideas
==================

This section contains stocks that meet criteria which may make
them of interest to long and short side traders.  These are not
recommendations, nor have they been reviewed by PremierInvestor
editors for investment potential.  However, each of them has
technical and fundamental characteristics that make them worthy
of further review by traders and investors looking for fresh ideas.
New stocks will appear daily following the market close.

Value Plays With Bullish Signals
---------------------------------
Ticker  Company Name               Close     Change

WYE     Wyeth                      41.78     +0.73
MRK     Merck & Co                 44.73     +0.52
MMC     Marsh & Mclennan Cos       46.95     +0.55
NXTL    Nextel Communications      27.00     +1.08
SLM     SLM Corp                   38.17     +0.67
CVS     CVS Corp                   34.90     +0.70

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

ACF     Americredit Corp           15.67     +1.10
BFR     Banco Frances Sa            9.09     +1.24
PSSI    PSS World Medical          12.30     +1.11
BLTI    Biolase Technology         17.60     +1.88

---------------------------------------
Breakout to Upside (Stocks over $20)
---------------------------------------
  
LEH     Lehman Brothers            75.69     +0.69
JCP     J.C.Penney Co              26.21     +1.45
RIMM    Research In Motion Ltd     69.61     +23.51
IFIN    Investors Financial Svcs   38.59     +1.33
TK      Teekay Shipping            57.20     +1.40
TRMB    Trimble Navigation         35.90     +1.49
VMSI    Ventana Medical            38.22     +1.22

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

NTE     Nam Tai Electronics        26.93     -1.93
FLS     Flowserve Corp             20.83     -1.44
CBK     Christopher & Banks        20.64     -1.16
CRDN    Ceradyne Inc               33.35     -2.15
KVHI    KVH Industries             26.44     -1.72

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

MOV     Movado Group Inc           28.96     -1.03



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