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Daily Newsletter, Tuesday, 01/13/2004

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PremierInvestor.net Newsletter                  Tuesday 01-13-2004
                                                    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:      Great Expectations
Watch List:       CTXS, BC, WEN, LNCR
Market Sentiment: Waiting to Exhale

=================================================================
MARKET WRAP  (view in courier font for table alignment)
=================================================================
      01-13-2004           High     Low     Volume Advance/Decline
DJIA    10427.18 - 58.00 10509.85 10367.41 1.99 bln   1519/1733
NASDAQ   2096.44 - 15.30  2114.91  2080.29 2.38 bln   1390/1824
S&P 100   555.75 -  3.66   560.05   552.62   Totals   2909/3557
S&P 500  1121.22 -  6.01  1129.07  1115.19
W5000   10935.88 - 53.40 11003.88 10877.32
RUS 2000  581.16 -  1.85   583.18   575.04
DJ TRANS 3017.06 -  2.20  3023.87  2986.81
VIX        18.04 +  1.22    18.33    16.53
VXO (VIX-O)16.87 +  0.62    17.86    16.38
VXN        23.05 +  0.49    23.89    22.26
Total Volume 4,634M
Total UpVol  1,593M
Total DnVol  2,969M
52wk Highs  787
52wk Lows    12
TRIN       1.36
NAZTRIN    1.77
PUT/CALL   0.61
=================================================================

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

Great Expectations

The markets suffered another setback today and analysts were
racing to find a reason. Greenspan's speech? Rising oil prices
or O'Neil's criticism of the president? Sorry, it is just a
plain case of profit taking on fear that reality may not match
expectations. Even great news for the telecom sector could not
prevent fears that INTC might disappoint.

Dow Chart


Nasdaq Chart



The economic news was mixed and not really a negative for the
market. The Weekly Chain Store Sales fell -0.4% and year over
year growth fell to +4.9% and the lowest rate in five weeks.
Redemption of gift cards remains the primary driver for chain
stores with new cash shopping continuing to slow. Cold fronts
and snow storms are still being used as excuses but in reality
it is the middle of winter. What changed? Cash has dried up.
Mortgage refinancing has dried up and the tax rebates are
history. Until consumers start getting the next round of tax
refunds/rebates there is not much for retailers to look
forward to.

Import Prices rose only +0.2% and only about 1/2 what was
expected. This will be drastically different next month when
the mad cow halt to beef exports hits the tape. Meat export
prices are going to plummet due to oversupply and shortage of
buyers. Beef prices fell -20% after the discovery of the mad
cow in Washington. Rising oil prices are also going to make
an impact with oil moving over $35 in trading today.

Offsetting the Retail Sales news was the Richmond Fed Survey
which fell to 8 for December and down from 11 in November.
Despite the drop the internals were still strong. Shipments
fell -3 points but New Orders rose from 14 to 22. The backlog
remained the same at only 3 and the Six Month outlook rose +3
to 44. The Order Backlog at 22 is the highest level since last
January. The employment component rose to zero from -14 and
this is the first non-negative number in nineteen months. Just
like the Kansas Fed Survey on Monday the headline number fell
but critical components are still showing growth.

Wednesday is a big economic day with Mortgage Applications,
PPI, International Trade and the Fed Beige Book. Thursday is
even bigger with Jobless Claims, CPI, Empire Manufacturing
Survey, Monthly Retail Sales, MAPI Survey, Philly Fed Survey
and the Treasury Budget. Add in the major earnings after the
close Wednesday from YHOO, QLGC and INTC and you have a
critical 48hr period.

Fear of the next 48 hours made the earnings announcements
Tuesday morning even more important. Leading the list was
SAP which reported a drop in software revenues and planted
seeds of disappointment in tech land. SAP was profitable but
the key point was the -3% drop in software revenues. The SAP
results were good but not great. Since SAP is a major
competitor to IBM the road signs were clear to many. IBM had
already been weak on rumors they would not make their revenue
estimates and weakness in competitor revenues seemed to signal
the rumors could be true. IBM does not report until Jan-20th
but IBM fell to six-week lows on the news.

Adding to the SAP negativity was a lowered forecast from
Accenture, (NYSE:ACN), another competitor to IBM. Accenture
missed estimates by a penny but said profits could be as
much as -22% below analyst estimates. Accenture lost -3.66
on the news and helped to push IBM even lower.

The ACN/SAP ripple knocked the Nasdaq back below 2100 but not
by far. You could probably call it an Intel hiccup more than
anything else. With great expectations priced into the market
the first really clear road sign for the global recovery is
going to be Intel tomorrow night. If Intel sneezes the entire
market could catch cold. We know Intel will go out of their
way to spin the news positive. However, if you remember their
last conference in October there was a minor blip after the
call when they admitted there was a small drop in bookings.
This was not picked up by the mainstream press and the
markets rallied on the headline news. Intel did revise to
the upper end of estimates for the 4Q in their mid-quarter
update but the key for tomorrow is their guidance for the 1Q.
Considering the solicitations I am getting by email on almost
a daily basis it appears computer vendors are in a January
sales slump. They don't call/email when business is good. It
could be just a coincidence but I can't wait to see what Intel
has to say.

The Semiconductor Index fell from a 52-week on Monday at
560 to initial support at 540. Considering the huge gains
in the chip sector it is not surprising investors wanted to
take some money off the table before the Intel announcement.
XLNX lost -2.46, PMCS -1.30, NVLS -1.79. Bucking the trend
was LSCC which finished the day positive and appeared ready
to launch even higher from 11.50 support.

Also used as an excuse today was the Greenspan speech but
while uninspiring there was nothing really detrimental to
the markets. He said the lack of job creation would not
keep the economy from growing and the lower dollar really
did not matter. Dallas Fed President McTeer said he was
"shocked" by the Friday Jobs report showing only +1000 jobs
created in December. He said he expected a seasonal adjustment
and the missing 149,000 jobs would show up in January's report.
Let's hope he is right. He said he expected strong growth and
low inflation for some time to come. This reinforced thoughts
that the Fed would not be raising rates soon. Fed Governor
Olson also pushed that common thought by reiterating the
"considerable period" phrase in a speech. Let's hope the
"seasonal adjustment" McTeer spoke about is a real adjustment
and not the Fed just pushing the numbers around in our best
interest.

The Conference Board published a survey that showed CEOs'
were less positive about the future than they were before.
The poll's outlook component also fell to 66 from 73 for
the first six months of 2004. This drop was contrary to
the rise in confidence in current conditions to 68 from 64
from the 3Q to the 4Q of 2003. The Conference Board did not
feel this was a problem and more of an acknowledgement that
the soaring growth from the 3Q could not continue.

The earnings parade is beginning this week with the consensus
estimates now up to +26% for the 4Q. These great expectations
are very risky and it will not take many more events like
SAP and Accenture to puncture the balloon. Even if the
earnings do come in as expected we know from experience that
just meeting estimates does not normally send markets higher.
They have to meet or exceed estimates and guide higher. This
does not take into account the current tech valuations at a
two-year high. YHOO is currently trading at a PE of 145 for
just one example. Insider sales are typically a leading
indicator for earnings. Since YHOO hit $40 insider selling
has been very brisk. The CFO, somebody who knows exactly
what the numbers will be, just sold 80,000 shares. We will
get to see tomorrow if he was beating the rush or simply
capitalizing on the good news ahead to exit without a cloud
of questions.

As an example of the lack of upward momentum we saw almost
no impact from the $2.3 billion telecom deal with China today.
Motorola, the biggest winner with over $1 billion, only gained
+12 cents. Lucent with a +$350 million win gained +6 cents.
CSCO got $140 million and lost -14 cents. Nortel showed the
biggest gains at +21 cents. Unlike most contract awards that
take years to play out this contract will be completely
funded in 2004. Instant money for current products but no
real impact to prices. Another problem there is a demand
that the companies turn over the intellectual property to
China to enable them to make these products on their own in
the future. They also demanded a different encryption method
than currently in use. Last I checked they were still a
communist nation. Sure, sell them $2.3 billion in goods and
then give them the results of years of research so they can
avoid buying anything else in the future.

Also hurting the markets was continued depression in the
homebuilder sector. Centex announced orders that were less
than expected and MDC Holdings disappointed as well. The
analysts coming out against the sector multiplied overnight.
Most of the builders lost ground again but not by big losses.
The bulls still believe in them and with the single digit
PE numbers where else are you going to find values this cheap?
The Homebuilder Index (HGX) is well off its highs but still
lofty in relative terms. As long as it does not break two
month support at 345 the bulls will likely buy the dip. The
next material support is in the 300 range. The HGX is
optionable but expensive.

Tech worries also grew from the banking sector after
several banks reported earnings that expressed concern
that commercial loan demand was soft. This suggests that
an IT recovery may be muted if loans to purchase and upgrade
equipment are not in demand. BBT and STT suggested 2004
could be a challenging year.

The market action was both confusing and frustrating depending
on your market view. The Dow dropped -118 intraday day but
rebounded to close down only -58. The dip was well under Dow
support at 10400 but the rebound put it back above that
support to 10427. Bottom line, was this a bearish day or a
bullish day? Or was it just a profit-taking day? Since the
high near 10600 last Thursday the Dow has trended down and
today was no exception. The minor rebound on Monday was just
a short term oversold dip buy. Today was a continuation of
Friday due to worries over IBM and Intel and earnings in
general. So far it is just cautious profit taking. 10400 is
strong support and I was surprised to see it break today
even on the earnings disappointments. Tomorrow and Thursday
are the key. Should 10400 break again the next real support
is 10300 then 10100. Volume was skewed 2:1 to the downside
and it was moderately heavy with 4.6 billion across all
markets. If we break 10400 again I expect that volume to
rise and the imbalances to be strongly negative. Bulls have
got to be worried but the bears still have no conviction.

The Nasdaq dropped below 2100 but held solid on four day
support at 2080. The tech advance has been so strong there
is only minimal support below that at 2050 with much stronger
support at 2000. If the techs disappoint on Wednesday night
it is very conceivable we could test 2050 by Friday. The
tech big caps have been slipping as funds cautiously move
cash they stored in late December out of these stocks and
into other vehicles. MSFT has been trending down sharply
for the last three days. Today was the first INTC drop as
investors clung to the earnings run hope. Despite the drop
today the Nasdaq has been exhibiting serious strength. If
it can pass the test this week the tech bulls will be
cheering.

Regardless of your market view the rest of this week should
be exciting. We are seeing volatility return to the market
and buyers are finally seeing some dips. Odds are good there
will be some earnings winners this week and probably some
more losers. Keep your powder dry because the bargains are
on the way.

Enter Passively, Exit Aggressively.

Jim Brown
Editor


==================================================================
WATCH LIST
==================================================================

The PremierInvestor.net watch list is not designed to be read
as full fledged stock picks.  Rather we would prefer to offer
it as an extra tool in today's investor toolbox.  Think of it
as a radar screen with your own radar operator pointing out
interesting developments, technical patterns or potential plays
that you may or may not have seen on your own.  Due to time
constraints we do glance at the news but rarely do we have
time to fully read pertinent news stories, due background
research and other necessary screens that investors should do
before making a decision.  A common exercise is to read the
entry, glance at the sector and other stocks in that industry
and then compare what's happening in the stock to what's
happening in the broader market indices.  We hope you enjoy
the Watch List and that it proves to be a useful tool for your
own trading success.

STOCKS WORTH WATCHING
---------------------------------


Citrix Systems, Inc. - CTXS - close: 20.60 change: -1.09

WHAT TO WATCH: Ever since topping near $28 in mid-October, CTXS
has continued to trend lower with support being found at the $21
level over the past month.  That support gave way on strong
volume on Tuesday, as the stock broke the 200-dma for the first
time in over a year.  Look for downside continuation towards next
solid support in the $17.50-18.00 area.




---

Brunswick Corporation - BC - close: 32.29 change: +0.55

WHAT TO WATCH: Weakness wasn't found in every stock on Tuesday,
as demonstrated by BC's breakout to new highs on strong volume.
a mild pullback into the 20-dma just above $31.50 looks like a
solid entry ahead of a rally towards the $35-36 area.



---

Wendy's International - WEN - close: 37.90 change: -0.60

WHAT TO WATCH: Peaking in early December near the $41.50 level,
shares of WEN have been building a topping formation over the
past month and the H&S formation is nearly complete.  Price
dropped back to end at $37.90, right on the neckline on Tuesday
and a break below $37.75 can be used for bearish entry.  Target a
drop to $34 support.




---

Lincare Holdings, Inc. - LNCR - close: 28.28 change: -0.62

WHAT TO WATCH: After rebounding to the $32.50 area after the
sharp selloff in November, it looks like investors are losing
interest in shares of LNCR, as they have allowed the stock to
drop back to the bottom found in late November.  Trigger on a
break below $28 and target a drop to the $24 support area.




---

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

LPX $20.23 - The third time's a charm.  After 2 rejections from
resistance near $19, shares of LPX managed a solid breakout on
Monday and incredibly held those gains today in the midst of a
weak market.  Look for a pullback to confirm support near $19 as
the ideal entry and then look for a rally towards the $22-23
area.

IGT $34.65 - The rally in IGT appears to have culminated with a
bull trap surge up to the $37 level in mid-December and the
consolidation of the past few weeks is breaking down.  Entries on
a failed bounce below the $35.50 level look good ahead of a
decline down to the $32 level.

UPC $29.73 - Broad market weakness on Tuesday finally broke the
$30 support level in shares of UPC and it looks like the decline
towards next support at $28 and then $26 is underway.  Use a
failed bounce below the 10-dma as a low-risk entry.


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

Waiting to Exhale
- J. Brown

The official start to the Q4 earnings season may have been last
week with Alcoa but tomorrow really brings out some heavy weights
with Apple Computer (hardware), Intel (semiconductors), Yahoo!
(internets), Genentech (biotech), and QLogic (semiconductors).
Thursday brings even more with Bank of America (banking), Juniper
Networks (networking), and Sun Microsystems (hardware) just to
name a few.  What these companies have to say about their future
guidance will carry the spotlight and help set the tone for the
rest of the quarter.

In the mean time traders are holding their breath until these Q4
reports are released. Volatility in stocks and the options market
has been rising as investors try and position themselves in front
of these events.  Without any major news today, aside from a
Greenspan speech in Germany where he really didn't say much,
stocks pulled back as some investors took some money off the
table.  Those sectors hardest hit by the selling were
semiconductors and software.

Intel's earnings report after the bell tomorrow is a major event
and the SOX dipped 2.77% after a strong four-week rally from its
December lows.  We've been hearing for months now about how great
2004 is going to be for chip sales and Wall Street wants to hear
it from Intel in their guidance going forward.  Should Intel
disappoint we'll probably see the SOX reverse course and head
back toward its December lows, pausing near the 500 level to
catch its breath.

The GSO software sector also looks a little toppy and the index
fell 1.88% after German software maker SAP announced that its
fourth quarter sales slipped 3% from last year.  MSFT, ORCL and
PSFT all reacted negatively to the news.

The remaining sector indices also provided some interesting
observations.  The BIX banking index has fallen for two weeks
straight and pierced its simple 50-dma today before rebounding by
the close.  Considering the post-earnings reactions to some of
the banking stocks who announced today we're liable to see more
weakness here.

The DRG drug index has also been in a steady decline with today
marking the fourth loss in a row.  Recent broker comments have
not been kind to some of the larger drug makers and the group is
pulling back after a very strong December.

I'm also a little surprised by the drop in the XAU gold & silver
index since the dollar continue its own drop against the yen and
the euro but then February gold futures also fell more than $2.00
to $424 an ounce.


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

Market Averages

DJIA ($INDU)

52-week High: 10592
52-week Low :  7416
Current     : 10427

Moving Averages:
(Simple)

 10-dma: 10486
 50-dma: 10040
200-dma:  9328

S&P 500 ($SPX)

52-week High: 1131
52-week Low :  788
Current     : 1121

Moving Averages:
(Simple)

 10-dma: 1120
 50-dma: 1075
200-dma: 1002

Nasdaq-100 ($NDX)

52-week High: 1541
52-week Low :  795
Current     : 1524

Moving Averages:
(Simple)

 10-dma: 1502
 50-dma: 1434
200-dma: 1292


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

Today marks the third day of gains for the VXO and VIX.  While it
is normal to see volatility spike when the indices trade lower we
also have to remember that Friday is an options expiration and we
could be seeing an unusual number of put buying by investors to
protect current profits.

CBOE Market Volatility Index (VIX) = 18.04 +1.22
CBOE Mkt Volatility old VIX  (VXO) = 16.87 +0.62
Nasdaq Volatility Index (VXN)      = 23.05 +0.49


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

          Put/Call Ratio  Call Volume   Put Volume

Total          0.61      1,132,464       690,443
Equity Only    0.48        883,197       423,555
OEX            0.60         71,225        42,709
QQQ            1.14         88,348       101,028


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

Bullish Percent Data

           Current   Change   Status
NYSE          77.6    + 0     Bull Confirmed
NASDAQ-100    81.0    + 1     Bull Confirmed
Dow Indust.   86.7    + 0     Bull Confirmed
S&P 500       87.0    + 0     Bull Confirmed
S&P 100       85.0    + 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: 1.15
10-dma: 1.03
21-dma: 0.97
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    1349      1386
Decliners    1514      1712

New Highs     306       229
New Lows        7         6

Up Volume    801M      721M
Down Vol.   1126M     1611M

Total Vol.  1947M     2364M
M = millions


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

Commitments Of Traders Report: 01/06/04

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
12/09/03      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%)
01/06/04      403,721   408,729    (5,008)   (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
12/09/03      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%
01/06/04      142,844    83,518    59,326    26.2

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
12/09/03      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%)
01/06/04      175,489   240,865    (65,376)  (15.7%)

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
12/09/03     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%
01/06/04     139,433     51,909    87,524    45.7%

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


NASDAQ-100

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
12/09/03       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%
01/06/04       42,892     37,801     5,091    6.3%

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
12/09/03       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%
01/06/04        8,035    17,911   ( 9,876)  (38.1%)

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
12/09/03       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%
01/06/04       15,697     9,497    6,200      24.6%

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
12/09/03        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%)
01/06/04        5,713     8,105  ( 2,392)   (17.3%)

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                  Tuesday 01-13-2004
                                                    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
=================================================================

Stop Adjustments:  None

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)


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

None


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

BMO     Bank of Montreal           43.60     +0.81
APA     Apache Corp                84.15     +0.65
FD      Federated Dept Stores      48.15     +0.64
ABK     Ambac Financial            72.89     +1.24
AZO     Autozone Inc               85.62     +1.72
VLO     Valero Energy              50.20     +2.68

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

TOY     Toys R Us                  13.56     +1.26
NKTR    Nektar Therapeutics        18.45     +1.20
INTI    Inet Technologies          14.99     +1.16
DSCO    Discovery Labs Inc         11.88     +1.03
BCGI    Boston Communications      11.38     +1.18
VOCL    Vocaltec Communications     6.48     +1.24

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

APD     Air Products & Chemicals   53.96     +1.44
MTG     MGIC Investments           69.27     +2.68
VAR     Varian Medical Systems     74.49     +2.54
SUN     Sunoco Inc                 54.79     +1.96
LEA     Lear Corp                  66.38     +1.38
STK     StorageTek                 29.52     +1.72
GYI     Getty Images               52.08     +1.06

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

IBM     Intl Business Machines     89.70     -1.85
ACN     Accenture Ltd              22.66     -3.25
STI     Suntrust Banks             69.50     -1.28
BBT     BB&T Corp                  36.63     -1.16
MTB     M&T Bank                   91.10     -1.89
FCX     Freeport Mcmoran           40.06     -2.84
CTXS    Citrix Systems             20.60     -1.09
CYN     City National Corp         58.50     -1.66
TPP     Teppco Partners            38.50     -1.33

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

HBC     HSBC Holdings              79.01     -1.78
SAP     SAP Ag (ADS)               42.18     -2.27
INFY    Infosys Technologies       95.79     -3.11
PD      Phelps Dodge               74.45     -3.05
CBE     Cooper Industries          56.23     -1.39
NRMX    Neurochem                  23.64     -1.38


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