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Daily Newsletter, Tuesday, 01/06/2004

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PremierInvestor.net Newsletter          Weekend Edition 01-06-2004
                                                    section 1 of 2
Copyright (c) 2004, 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:      New Highs Once Again
Watch List:       CSCO, XRX, CCMP, FD and more!
Market Sentiment: Patiently Waiting

=================================================================
MARKET WRAP  (view in courier font for table alignment)
=================================================================
      01-06-2004           High     Low     Volume Advance/Decline
DJIA    10538.66 -  5.41 10549.18 10499.85 1.95 bln   1688/1561
NASDAQ   2057.37 + 10.00  2061.54  2039.63 2.27 bln   1853/1406
S&P 100   557.75 +  0.44   558.11   555.53   Totals   3541/2967
S&P 500  1123.67 +  1.45  1124.46  1118.44
W5000   10925.16 + 18.80 10936.66 10876.18
RUS 2000  569.89 +  0.97   572.67   568.06
DJ TRANS 3037.26 +  8.60  3042.65  3012.66
VIX        16.73 +  0.76    17.67    16.19
VXO (VIX-O)15.34 -  1.37    16.78    15.07
VXN        22.76 -  1.13    24.21    22.69
Total Volume 4,473M
Total UpVol  2,567M
Total DnVol  1,837M
52wk Highs 1017
52wk Lows    13
TRIN       1.04
NAZTRIN    0.74
PUT/CALL   0.57
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===========
Market Wrap
===========

New Highs Once Again

Bad news from Gateway failed to deter tech buyers and the
Nasdaq rose to a new two-year high at 2061. It was just
yesterday that semiconductor billings came in at the lowest
level in three months. However, historical patterns of
investors buying tech stocks to open the year appears to
be over powering any negative tech news.

Dow Chart - Daily


Nasdaq Chart - Daily



Tech news was not the only bad news dragging on the markets.
The Weekly Chain Store Sales came in at -0.1% compared to
last weeks +2.0%. Holidays are over and it appears shoppers
are staying home. Colder weather in many states could have
also prompted shoppers to watch football from the couch
instead of blocking and tackling the malls. Good news was
a projection that December could have been stronger than
previously reported. Inventory levels are reported to be
very low indicating that there was a last minute push and
stores managed their inventory very well. However, low
inventory levels will prevent strong sales in January.
Considering most of those January sales are heavily
discounted not having any inventory may not be a bad thing.
I personally went to Target last weekend for some late
holiday shopping and on a list of 20 items the individual
had registered for at least 15 were sold out. Shelves were
bare in places and in others they had spread out merchandise
to 3-4 times the shelf space normally used in order to cover
up the holes.

Worse news for investors was the ISM Services Index. The
headline number came in at 58.6, well below the 60.3 estimate
and the lowest level in seven months. A 58 level still reflects
an expanding services sector but at the lowest level since
May it does not inspire confidence. New orders rose only
slightly and employment fell slightly. Basically it was
only a minor negative but with the strong market gains
pricing in strong growth this was another hairline crack
in the foundation. It was more of a talking point than a
real worry but on a slow news day it was the sound bite
we heard the most. The ISM services is normally a leading
indicator for manufacturing. A drop in services could
suggest a drop ahead in manufacturing. Far to soon to
tell and could also just be a holiday blip.

The Challenger Report showed that announced layoffs fell
slightly in December by -6.5% to 93,020 workers. Typically
companies make job cuts at year end to clean house before
the new year begins. The 93K number would indicate that
maybe the job cut cycle is fading and those normal job
cuts were light. To put it in perspective the number for
Dec-02 was also in the 93K level and it spiked significantly
in Jan/Feb to 135K again. There were several analysts
expecting a lower jobs number on Friday after the ISM and
Challenger numbers. While we may have a lower than expected
number I do not think you can make that link based on the
figures released today. Employment components for other
economic reports have been stronger and the timing of these
reports and the Jobs survey is different. The bigger impact
to the jobs number is the continued outsourcing of jobs
overseas.

Another weak number today was the Factory Orders which
dropped -1.4% but this was a November number and is already
priced into the market. Back orders did rise and inventories
continued to fall. Eventually we are going to get to the
point where we will have to trigger an inventory rebuild
cycle or there will be an impact to earnings from nothing
left to sell.

Gateway led the list of earnings warnings this morning with
an announcement that it could lose up to -15 cents after a
very tough 4Q. They said they were hurt by aggressive price
cutting by HPQ and Dell despite good sales in HDTV and
digital cameras. Downgrades were the order of the day with
both Dell and HPQ heading deeper into the consumer electronics
business Gateway's competition is only going to increase.
According to some analysts the 4Q was the best PC quarter
since 2000 in terms of sales but margins could be the worst
due to the price competition. PC models were heavily
discounted by both manufacturers and retailers in order to
move product and avoid left over inventory.

Planar Systems warned last night that slowing sales of flat
panel displays in its medical segment would lower its earnings.
They said the consumer business was good and would offset some
of the decline in the other segment but earnings would drop
to 20-22 cents when analysts were for 28 cents. PLNR fell
-18% in trading today.

GTW and PLNR were joined by LLY, TWTR, HLWD, DAB and JDAS who
also warned on Q4. Warning to the upside were CRDN on the
strength of defense orders and SBUX on stronger than expected
same store sales. GTRC also raised guidance on stronger than
expected sales. TMRS was down on allegations they had tried
to bury negative news on experimental drug T-1249. JDAS
said they failed to close a number of deals previously
expected. AMAT was upgraded by SG Cowen. Visteon was cut by
Goldman. ANF was downgraded by Lehman. The HMO sector was
downgraded by Goldman on worries that reimbursement payments
would be lowered.

The markets rallied to new highs but struggled in the process.
The volume was much stronger with total shares nearly 4.5B.
Internals were good but not great and advancers barely beat
decliners across all markets. The Dow hit 10549, only 50
points away from really strong resistance. (Not that any
resistance has mattered lately.) It took all day to recover
from the opening dip and ISM depression before it hit positive
territory and the new high. It was positive only briefly and
closed down slightly at -5 points. 10500 was support most of
the day and should be the critical level to watch the rest
of the week.

The Nasdaq was the hero with a +10 point gain to a 24-month
closing high despite the bad tech news. The Nasdaq has been
nearly vertical since hitting 1900 on Dec-10th. It is moving
into a very strong resistance range between 2065-2100 and
will find any further gains much tougher without any major
news event.

At the risk of sounding repetitious we are very overbought.
We have followed the January pattern exactly and set new
highs for the first three days of the year on the strength
of the year end retirement cash flow. The market rose despite
terror threats, earnings warnings and massive prior gains.
Very impressive. However, and you knew there had to be a
however, we are reaching very strong resistance levels and
today was the last day of any material retirement cash
inflows.

Dow Daily Chart with ADX



The Dow has gone from extreme to ridiculous. Using almost any
indicator you like the overbought conditions are very evident.
Using the ADX for example the current extremes on the Dow have
not been seen since December 1996. Not even during the bubble
years did the Dow reach these overbought levels. Considering
the Dow has gained +950 points since the end of November
without any material profit taking and the answer should be
clear. The last time the Wilshire 5000 was this extreme was
back in June of this year. Note the result.

Wilshire 5000 Chart with ADX



Those watching the market internals today saw a good example
of distribution in progress. Volume was strong but advancers
were only slightly better than decliners. The markets set new
highs but only barely with minimal gains. A lot of stock was
traded with little movement. To be fair this was the day after
a very strong gain. Just closing flat is an accomplishment but
it just did not feel that positive. With the normal January
high set in the first five days of the month we are right
there. This could have been the day.

We could also see one more climax high tomorrow at the open.
My target for the January high was 11000 on the Wilshire and
we closed at 10925 today. Very close considering the magnitude
of the numbers. I hate to be Chicken Little but trees do not
grow to the sky without losing a few leaves once in awhile.
We need to take some profits off the table soon or the
eventual correction will be much worse.

On Wednesday there are no material economic reports with only
Mortgage Applications and the Consumer Comfort Index. The only
speech to watch is Secretary Snow and the bond groupies will
be watching for comments on the dollar. The dollar set a new
low against the Euro on Tuesday and the bond guys expect the
strong dollar talk to pickup soon. We also have a lot of bond
paper coming to market this month and that will take some cash
out of the equity market in an election year.

The biggest report for the week is the Jobs report on Friday
and everything we see on Wednesday and Thursday will be
posturing in advance of those numbers. The consensus estimate
is for the addition of +127,000 jobs. Considering the November
number dropped to only +57,000 jobs this could be optimistic.
October had +137,000 and shocked the markets for a week.
Considering December is not normally a hiring month it will
be interesting to see if the estimates come to pass. A
negative number would be very serious.

Traders are keeping one eye on the five-day barometer for
guidance to the rest of the year. Historically if the first
five days of the year finish with a gain we have an 85%
chance of a positive year. If the first five days finish
with a loss there is a 50:50 chance the year will also close
down. Obviously you can twist the numbers any way you want
but traders are a superstitious lot and they really want to
keep it green through Thursday. For me I will be watching for
weakness between now and Friday. I would be very surprised if
we do not trade lower before the week is out. I consider it
a buying opportunity for those who have the patience to wait.

Enter Passively, Exit Aggressively.

Jim Brown



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


Cisco Systems - CSCO - close: 25.06 change: +0.29

WHAT TO WATCH: With the Networking index (NWX.X) breaking out
with strength this week, it should come as no surprise that CSCO
is going along for the ride.  Breaking above $24.50 yesterday was
a nice start and the bulls added to those gains today, propelling
the stock above $25 for the first time since February 2001.  The
ideal entry will come on a pullback near $24.50, with a rally
towards $28 resistance being a reasonable target.




---

Xerox Corp. - XRX - close: 14.07 change: +0.25

WHAT TO WATCH: The broad market rally is really starting to
expand out to some of the less popular names and shares of XRX
are on the move again.  After moving to new multi-year highs just
below $14, XRX got a strong boost on Tuesday and looks destined
to fill the gap to $15 from 2000 and potentially continue up
towards stronger resistance at $16.



---

Cabot Microelectronics Corp. - CCMP - close: 54.30 change: +1.27

WHAT TO WATCH: With the SOX nearing major resistance again, even
the weaker Chip stocks are joining the party.  CCMP has been
consistently under pressure for the past several months, but
yesterday's break above the descending trendline appears to have
changed all that.  Buyers drove the stock higher again on
Tuesday, this time clearing the 200-dma and it looks like a run
at $60 resistance is underway.  A pullback to support between the
50-dma and 200-dma looks attractive as an entry point.




---

Federated Department Stores - FD - close: 48.01 change: +1.10

WHAT TO WATCH: Bouncing back smartly from support, the Retail
index is just about to challenge the $380 resistance level again.
Shares of FD are ahead of the game though, having broken through
$47.50 resistance and the 50-dma on Tuesday.  Look for some
resistance near $50 and then a move to new highs, especially if
the RLX is able to keep climbing.






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


IPXL $16.88 - The combination of an upgrade from First Albany and
management changes was enough to send the stock soaring through
$16.50 resistance on Tuesday and aside from some intraday highs
near $17 back in 2001, there's no resistance to be found.  Look
for entries near $16 and then play for a rally up towards round
number resistance at $20.

AAI $13.13 - After nearly a month of grinding along the 200-dma,
shares of AAI finally got a boost on Tuesday, gaining more than
6%.  Look for continuation up through the 50-dma to set the stage
for a run at strong resistance near $15.50.

CACC $16.34 - New highs seem to be the theme in the market and
CACC joined the party again on Tuesday with a 7.5% gain to close
at its best level since 1997.  A brief pullback near $15.50 would
confirm former resistance as new support and provide for new
entries ahead of a continued rally up towards $18 resistance.



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


Patiently Waiting
- J. Brown

The markets appear to be patiently waiting for the Q4 earnings
season to start and disappointing economic data is not going to
get in its way of just waiting.  At least that's what it seems
like today.  The ISM services index was a disappointing 58.6 in
December, down from the 60.1 in November and the estimates for a
small gain to 60.8.  Plus, the factory orders in November fell
but then they were expected to.  No, the real story today was
probably not the economic data but the lack of selling in the
major indices.  Investors seem willing to hold on until we begin
to hear just how good the last quarter really was.

The DJIA held on to its Monday gains while the NASDAQ, so close
to a two-year high yesterday, decided to make it official.  The
NASDAQ gains were driven by strength in the tech sector (as
usual) and one might be lead to believe that the path of least
resistance remains up.  However, we should not forget that the
first few days of January are traditionally bullish ones so the
recent strength comes as no surprise to anyone.

Tomorrow is free of economic news and Thursday has a few reports
including the December same-store sales figures for this
country's retailers.  Plus Alcoa opens the earnings season with
its own report on Thursday after the close.  Yet the big event
everyone is now looking to is Friday's December jobs report.
Economists are hoping for an improvement of 148,000 jobs.


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

Market Averages

DJIA ($INDU)

52-week High: 10549
52-week Low :  7416
Current     : 10538

Moving Averages:
(Simple)

 10-dma: 10413
 50-dma:  9960
200-dma:  9271

S&P 500 ($SPX)

52-week High: 1124
52-week Low :  788
Current     : 1123

Moving Averages:
(Simple)

 10-dma: 1106
 50-dma: 1066
200-dma:  996

Nasdaq-100 ($NDX)

52-week High: 1504
52-week Low :  795
Current     : 1501

Moving Averages:
(Simple)

 10-dma: 1463
 50-dma: 1422
200-dma: 1281


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

A number of traders have been worried that something is just
going to yank the carpet out from underneath this market.  It's a
common fear these days.  Yet it looks like the only carpet
yanking around here has been in the volatility indices.  The VXO
(old VIX) has plummeted from its recent relative high back
towards its multi-year lows.  The VIX has followed suit and the
VXN has hit new all-time lows as of today.

CBOE Market Volatility Index (VIX) =  16.73 -0.76
CBOE Mkt Volatility old VIX  (VXO) =  15.34 -1.37
Nasdaq Volatility Index (VXN)      =  22.76 -1.13


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

          Put/Call Ratio  Call Volume   Put Volume

Total          0.57      1,003,430       567,995
Equity Only    0.40        872,664       347,760
OEX            1.11         23,950        26,677
QQQ            0.46         76,443        35,408


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

Bullish Percent Data

           Current   Change   Status
NYSE          77.2    + 1     Bull Confirmed
NASDAQ-100    79.0    + 6     Bull Confirmed
Dow Indust.   86.6    + 0     Bull Confirmed
S&P 500       85.6    + 2     Bull Confirmed
S&P 100       84.0    + 0     Bull Confirmed


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: 0.91
10-dma: 0.89
21-dma: 0.99
55-dma: 1.06


Extreme readings above 1.5 are bullish, and readings below .85
are bearish.  These signals don't occur often and tend be early,
but when they do, they can signal significant market turning
points.


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

Market Internals

            -NYSE-   -NASDAQ-
Advancers    1433      1726
Decliners    1425      1371

New Highs     495       351
New Lows       14         6

Up Volume    967M     1408M
Down Vol.    885M      822M

Total Vol.  1888M     2248M
M = millions


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

Commitments Of Traders Report: 12/22/03

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

Was it a one-week blip?  The surge in long positions by
commercial traders have evaporated.  Was a sudden change of
heart or did they just get caught up in the holiday spirit?
Of course there was an equally strong disappearing act in
commercial short positions so maybe they're just confused.
Small traders have really cut back on their shorts and in
effect become extremely bullish.


Commercials   Long      Short      Net     % Of OI
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%
12/22/03      400,066   405,240    (5,174)   (0.6%)

Most bearish reading of the year: (111,956) -  3/06/02
Most bullish reading of the year:   23,977  - 12/09/03

Small Traders Long      Short      Net     % of OI
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%
12/22/03      147,537    81,596    65,941    28.8%

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

Wow!  The disappearing act in the full contracts (above)
is nothing compared to the drop in contracts below.  Commercial
traders really reduced their outstanding long positions in the
e-mini's and that's not a bullish development. Right on cue,
the small traders cut back on their short positions.


Commercials   Long      Short      Net     % Of OI
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%)
12/22/03      128,801   213,021    (84,220)  (24.6%)

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
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%
12/22/03     125,248     43,482    81,766    48.5%

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


NASDAQ-100

We see the same contract evaporation in the NDX futures as well.
Commercial long contracts lost 1/3 of their number but short
contracts were cut in half.  That actually sounds bullish.


Commercials   Long      Short      Net     % of OI
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%
12/22/03       40,277     36,452     3,825    5.0%

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
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%
12/22/03       22,656    14,544     8,112    21.8%

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

This time it is the small traders that drastically reduced
their short contracts.  They probably got tired of losing
money.  Commercials followed suit.


Commercials   Long      Short      Net     % of OI
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%
12/22/03       14,088     9,998    4,090      17.0%

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
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%)
12/22/03        6,915     8,983  ( 2,068)   (13.0%)

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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DISCLAIMER
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Copyright ) 2003  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.
PremierInvestor.net Newsletter          Weekend Edition 01-06-2004
                                                    section 2 of 2
Copyright (c) 2004, 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:   Going Vertical

Stop Adjustments:  CIT, NVDA, PLCM

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


NVIDIA Corp. - NVDA - close: 24.80 change: +0.97 stop: 23.50*new*

Company Description:
NVIDIA Corporation designs, develops and markets 3D graphics
processors, graphics processing units and related software that
set the standard for performance, quality and features for every
type of desktop personal computer user.  Used in a wide variety of
application including games, the Internet and industrial design,
the company's products were the first to incorporate a 128-bit
multi-texturing graphics architecture.  This design approach
delivers to users a highly immersive, interactive 3D experience
with compelling visual quality and stunning effects at real-time
frame rates.  NVDA sells its products to major PC manufacturers
such as Compaq, Dell, Gateway, Hewlett-Packard and IBM.

Why we like it:
That initial breakout over the $22 level was precisely what we
were expecting from NVDA when we initiated coverage a little over
a week ago.  Jumping aboard on the initial breakout was the only
entry point offered, as the stock got even more over-cooked the
next day with its gap higher.  Finally running out of steam just
over $24, it looks like NVDA is finally going to drop back and
hopefully give a continuation entry.  Look for initial support
near $22.75 (bottom of Monday's gap) to the site of the 10-dma
($22.50).  A rebound from that area can be used for initiating new
positions, while more aggressive traders can even target entry in
the $22.00-22.25 area on a confirmation of that old resistance
area acting as newfound support.  Breakout entries over $24 might
work, but until NVDA fills in some of the chart space left behind
in the ramp from $22-24, that approach carries undue risk.
Maintain stops at $21.

Why This is our Play of the Day
Benefiting from some positive press this morning, NVDA charged
higher right out of the gate, obliterating the $24 resistance
level that has held it back for the past week.  Being recognized
as one of the 100 best companies to work for by Fortune magazine
was a nice PR boost, but the real news of the day was the
company's announcement its nForce3 media and communications
processors (MCPs) fully support the new AMD Athlon64 processor
3400+.  The stock repeatedly was turned back from the $25
resistance throughout the day, but even with some end of day
profit taking, ended with a more than 4% gain.  That's pretty
impressive when compared to the Semiconductor index's paltry 0.4%
gain.  Of course, it didn't hurt having volume run roughly 80%
above the ADV.  Our initial target was for a move into the $25-26
area, so conservative traders certainly could have harvested some
profits today.  Use another move up towards $26 as an opportunity
to exit with a hefty gain.  Obviously, this close to our target,
we are not advocating new entries.  Tighten stops aggressively to
$23.50, just below today's intraday low.

Annotated Chart of NVDA:



Picked on December 24th at  $21.80
Change since picked          +3.00
Earnings Date              2/05/04 (unconfirmed)
Average Daily Volume =    5.43 mln



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


CIT - long
Adjust from $33.98 up to $35.00

NVDA - long
Adjust from $22.00 up to $23.50

PLCM - long
Adjust from $18.40 up to $19.25




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


CTX     Centex Corp               105.30     +2.71
MDC     MDC Holdings               62.20     +1.52
HOV     Hovnanian Enterprises      81.56     +1.71
TTWO    Take-Two Interactive       31.85     +2.69
AAI     Airtran Holdings           13.13     +0.77
DCEL    Dobson Communications       7.57     +0.55

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

INFS    Infocus Corp               11.92     +1.89
HIFN    Hi/Fn Inc                  15.90     +1.70
IPXL    Impax Labs                 16.88     +1.16
SEAC    Seachange Intl             17.63     +1.14
ISSI    Integrated Silicon         17.97     +1.11
CAMD    California Micro Devices   10.85     +1.25

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

XMSR    XM Satellite Radio          28.97     +1.83
SNPS    Synopys Inc                 35.74     +1.05
ASKJ    Ask Jeeves Inc              22.96     +2.08
DLTR    Dollar Tree Stores          31.86     +2.27
DGIN    Digital Insight Corp        28.01     +1.73
ELBO    Electronics Boutique        27.17     +2.67
VSEA    Varian Semiconductor        48.54     +2.46

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

ODSY    Odyssey Healthcare          26.59     -1.73
USNA    USANA Health Science        28.10     -1.62
PLNR    Planar Systems              20.18     -5.67
KVHI    KVH Industries              20.50     -2.35
ELAB    Eon Labs                    46.97     -2.43

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

CTAS    Cintas Corp                 48.05     -1.79
DE      Deere & Co                  62.60     -1.79
UVN     Univision Corp              38.24     -1.69
DHR     Danaher Corp                89.50     -1.11
NX      Quanex Corp                 45.15     -1.25
WPS     WPS Resources               45.62     -0.66
MTLM    Metal Management            34.45     -1.05




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