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Daily Newsletter, Thursday, 02/05/2004

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PremierInvestor.net Newsletter                 Thursday 02-05-2004
                                                    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:      The Moment of Truth
Market Sentiment: All About Jobs
Watch List:       NTAP, DTE, MNST, IR


=================================================================
MARKET WRAP  (view in courier font for table alignment)
=================================================================
      02-05-2004           High     Low     Volume Advance/Decline
DJIA    10495.55 + 24.80 10522.52 10453.55 1.96 bln   1703/1513
NASDAQ   2019.56 +  5.40  2031.39  2012.79 1.94 bln   1777/1423
S&P 100   559.61 +  0.74   560.81   557.41   Totals   3480/2936
S&P 500  1128.59 +  2.07  1131.17  1124.44
W5000   10974.04 + 24.50 10998.18 10935.34
RUS 2000  569.54 +  5.51   570.90   564.03
DJ TRANS 2833.59 + 11.50  2843.81  2821.76
VIX        17.71 -  0.16    17.99    17.60
VXO (VIX-O)17.75 +  0.17    18.39    17.66
VXN        26.17 -  0.48    26.81    25.96
Total Volume 4,230M
Total UpVol  2,365M
Total DnVol  1,809M
Total Adv  3900
Total Dcl  3376
52wk Highs  279
52wk Lows    18
TRIN       0.82
NAZTRIN    1.02
PUT/CALL   0.76
=================================================================

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

The Moment of Truth

Friday morning at 8:30 AM is the moment of truth for the
markets. At least that is what the talking heads were telling
traders all day. It is important but like all things economic
the outcome may have already been baked into the cake.

Dow Chart - Daily


Dow Chart - 30 min


Nasdaq Chart - Daily




Economics for Thursday put a little more fear into those who
were worried about the Nonfarm Payroll report when the Jobless
Claims jumped +17,000 to 356,000. This was the first time in
four weeks that the number was over 350K. Last weeks claims
were revised down -3,000 and analysts theorize weather was
the depressing factor. Those snowbound in the prior week
finally got out to make claims last week. Ironically the
unadjusted claims decreased in 51 states and territories
but the total number of weekly claims rose.

There are numerous conflicting employment components for the
various monthly reports. Some show minor job growth, some
show minor job declines. NONE show any significant improvement
in job creation. Is this like the emperor's clothes? Nobody
can see any jobs but everyone assures us they are there?

One analysis suggested that during the two survey weeks for
the nonfarm payrolls continuing Jobless Claims fell by 116,000.
The payroll survey is done around the 12th of the month. They
were suggesting that this would translate into an increase in
jobs of +125,000 tomorrow. Dow Jones is expecting +160,000,
the street is looking for +175,000 and one analyst on CNBC
was expecting +225,000. With estimates all over the map but
up significantly from just a couple days ago we are poised
again for a potential disappointment.

Last month the estimates were also in the same ranges and
the number was barely positive at +1,000. Various Fed heads
almost promised that those missing jobs would be found in
tomorrow's number. This has setup the markets for another
failure in confidence. At this point I am not really
concerned due to the market action this week. I think
cautious traders have already positioned themselves for
the worst and are now hoping it is just not as bad as they
expect. I think they would be relieved to just have a
positive number again. Don't forget the Challenger Layoff
report from Monday showed a +26% jump in announced layoffs
for the month over the December levels.

With the Fed on hold due to the light GDP a blowout number
could actually turn up the heat again. Any light number
will just be seen as more slow growth and not a real problem.
Should the number come in negative I would not only be very
surprised but I would expect the market to react negatively.

The Productivity report for the 4Q rose by +2.7% according
to Thursday's release. Maybe I should say dropped to only
+2.7% growth since this was the slowest growth since 2002.
The 1Q increased +3.1%, 2Q +6.1% and the 3Q soared +9.5%.
The drop back to a realistic number simply showed that the
rapid unsustainable pace of growth was just returning to
normal. Hours worked rose while unit labor costs fell and
this suggests manufacturing will not let price prevent any
new hiring.

After several days of weakness the major averages managed
to close in the green but it was not a stunning performance.
The Dow closed under 10500 once again and the Nasdaq closed
exactly on its 50 dma at 2019. Traders felt the Wednesday
drop was significantly overdone but they were not confident
enough to buy stocks before the Jobs report. WMT, HON, KO,
IP and BA were the biggest gainers on the Dow and helped
overcome losses by IBM. MSFT and INTC were down fractionally
and MSFT suffered one additional embarrassment. PFE passed
MSFT in terms of market cap pushing MSFT to 3rd place behind
GE and PFE.

The CSCO depression continued in the big cap techs with
CSCO falling to mid-December lows. INTC closed under its
100 dma and under $30. It was the lowest close since
Oct-9th. Dell closed at 32.11 and the lowest close since
August. Dell is well under its 200 dma at 33.34. With all
the majors so severely under water it is amazing the Nasdaq
is holding at the 50 dma. We have had two significantly
down days on the 28th and again on the 4th. Other than
those we have been trading sideways in a consolidation
pattern. Treading water for all practical purposes. We
still have strong emotional support at 2000 and we are
at the uptrend average support that has held since March.
The techs have pulled back to their strong support level
on decent profit taking to await the jobs report. No big
surprise there. Earnings have been good and there is
nothing to prevent us from moving higher. Each bounce is
sold but each dip is bought and this is the area where
consolidation was expected. Just look at the Nasdaq
chart above if you have any doubts about support.

The SOX has pulled back to its 100 dma at 495 and has
held there for two days despite some continued slippage
by several chip stocks. This is the key for the Nasdaq.
The SOX has not touched the 100 dma since April 2003.
This is a major sell off in semiconductors and this is
the critical support level. We could see one more dip
to horizontal support at 480 but that would be a major
break that should be bought.

SOX Chart - Daily



The Russell-2000 also pulled back to its 50 dma at 564
and rebounded slightly. The Russell has tested the 50
dma six times since March and rebounded each time. This
level needs to hold. If we suddenly get a break of the
50dma on the Russell and the 100dma on the SOX then it
could be serious. Until that happens I am still in buy
the dip mode.

Russell Chart - Daily



The Dow is consolidating nicely above the 10450 level
and has been in the same range for six days. It is still
above 10400 support and the 50 dma near 10300. We could
easily move up from here or move down slightly with no
real damage. The 50-day average has not been tested since
Thanksgiving and any real dip could easily retest that
10300 level. The blue chips are holding up the techs and
the small caps. This is exactly the reverse from the last
two months where the small cap techs lead the charge.

We appear to be seeing a rotation from prior high risk
leaders and into the defensive blue chips like drugs.
Cyclicals like AA, IP, CAT, MMM and DE are being sold
on worries that the recovery is slowing. Drugs like MRK,
LLY, SGP and PFE are seeing a flood of money as defensive
value stocks. They suffered during the recent rally in
favor of the techs. Traders are simply rotating funds
back into the defensive issues. SGP is at a six month
high and PFE hit a new twenty-one month high today.

The good news is that this is normal for a new year but
just a couple weeks later than usual. The last week of
selling has been on significantly lower volume and it
appears to be just a normal consolidation period. The
next hurdle is the Jobs report on Friday. Regardless
of the outcome there will be volatility. Those still
wising to sell will probably use any good news to dump
stocks. The odds of a sell the news event on are very
good despite the results. Personally I think the odds
of new job growth over 100,000 are very slim but what
I think does not matter. The market will react to the
number and how it impacts the recovery scenario and
the chances of a Fed rate hike. Friday is immaterial to
the larger scheme of things. Monday is the key day for
me. How the market responds on Monday to any Friday
event will tell us if the rally has any legs left.

If traders were focused entirely on earnings there would
be no doubt of direction. Over 70% of the S&P have now
announced and 67% have beaten estimates. 19% announced
inline and only 14% have disappointed. This is very good!
Overall earnings are now expected to be in the +27% range
or better for the 4Q. This is the second highest in recent
history with only 3Q-1993 higher at +30% growth. That
quarter's results sent the Dow on a vertical ramp in the
4Q to nearly 4000 in January-1994. Once the 4Q earnings
fell short of the miraculous 3Q results the Dow crashed
-12% beginning in the last week of January to nearly 3500
by the end of March. It traded sideways for the entire
year and did not reach 4000 again until February-1995.

If we could use this historical trend as a model it would
suggest that the 1Q should ramp to the heavens as traders
buy the chance for an even stronger 1Q-2004. Since the
comparisons are harder for Q1 than Q4 the odds of a repeat
are tougher. The majority of guidance for Q1 has been
coming in higher and I suspect that has kept the market
from falling under its own weight more than anything else.
In about two weeks we will start to get the mid-quarter
updates and the beginning of any earnings run for April.
That makes the next two weeks very critical. If we can
get past the Jobs report the economic calendar next week
is fairly light. There is a flurry of reports but none
are really important milestones.

The bottom line is don't let any negative Jobs commentary
on Friday or any negative market reaction bother you. Wait
for Monday and let's see how the market responds. If we
drop on Monday then be worried. There is a lot of money
on the sidelines looking for an entry point and Friday's
market action could lure them into the game. The odds are
good the Jobs outcome has already been baked into the cake
and Monday is the real moment of truth.

Enter Passively, Exit Aggressively.

Jim Brown
Editor


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

All About Jobs
- J. Brown

The last several days have seen the DJIA churn sideways in
anticipation or some might say apprehension of the jobs report
due out tomorrow before the opening bell.  Current estimates peg
January job growth in the range of 150,000-165,000.  Whether the
result is a blow out or a no show we're expecting some movement
in the major averages.

The markets did get some help today from Fed governor Ben
Bernake.  Bernake made some comments midday about the Federal
Reserve expecting large job growth "pretty soon".  Some chose to
believe that means tomorrow's report will be positive.  Others
suggested that pretty soon may be a hint that tomorrow's report
isn't so hot and the job growth may show up in the next couple of
months.

Investors were also happy to hear the January same-store sales
numbers.  Overall they were much better than expected.  Even the
apparel stores, which had been expected to do poorly, turned in
strong results.  Cold winter weather actually helped move their
winter inventory (imagine that!).  The International Council of
Shopping Centers reported a 5.8% jump in U.S. sales, above their
4.5% forecast.  A fundamentally bullish clue for the economy is
the confident consumer who opted to splurge at fancy retailers
like Neiman Marcus who reported a 15% jump in same-store sales.

Market internals were also bullish.  The NSYE advance decline
line showed winners outpacing losers 15 to 13.  On the NASDAQ
winners numbered 17 for every 13.6 decliners.  Up volume
outnumbered down volume on both exchanges.

The jobs report tomorrow truly is the market-moving event of the
week so prepare for some volatility.


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

Market Averages

DJIA ($INDU)

52-week High: 10701
52-week Low :  7416
Current     : 10495

Moving Averages:
(Simple)

 10-dma: 10531
 50-dma: 10291
200-dma:  9511

S&P 500 ($SPX)

52-week High: 1155
52-week Low :  788
Current     : 1128

Moving Averages:
(Simple)

 10-dma: 1136
 50-dma: 1103
200-dma: 1023

Nasdaq-100 ($NDX)

52-week High: 1559
52-week Low :  795
Current     : 1465

Moving Averages:
(Simple)

 10-dma: 1499
 50-dma: 1468
200-dma: 1330


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

For the first time in months we've seen the VXO (old vix) break
the trend of lower relative highs. This could mark a turning
point but like just about everything else, market direction will
depend on how investors interpret the job data tomorrow.

CBOE Market Volatility Index (VIX) = 17.71 -0.16
CBOE Mkt Volatility old VIX  (VXO) = 17.75 +0.17
Nasdaq Volatility Index (VXN)      = 26.17 -0.48

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

          Put/Call Ratio  Call Volume   Put Volume

Total          0.76        757,792       574,865
Equity Only    0.66        654,226       434,512
OEX            0.84         24,832        20,799
QQQ            1.30         48,878        63,418


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

Bullish Percent Data

           Current   Change   Status
NYSE          76.1    + 0     Bull Confirmed
NASDAQ-100    70.0    - 2     Bear Alert
Dow Indust.   90.0    + 0     Bull Confirmed
S&P 500       86.6    + 0     Bull Confirmed
S&P 100       88.0    + 1     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: 1.00
10-dma: 1.01
21-dma: 1.00
55-dma: 1.03


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    1529      1707
Decliners    1300      1369

New Highs     128       116
New Lows       12        10

Up Volume   1089M     1022M
Down Vol.    801M      865M

Total Vol.  1898M     1928M
M = millions


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

Commitments Of Traders Report: 01/27/04

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

Commercials are beginning to hedge their bullishness from two
weeks ago but the changes are mild.  In the mean time small
traders have become even more bullish with a strong decline
in open short positions.


Commercials   Long      Short      Net     % Of OI
01/06/04      403,721   408,729    (5,008)   (0.6%)
01/13/04      405,558   411,361    (5,803)   (0.7%)
01/23/04      422,135   407,626    14,509     1.7%
01/27/04      417,089   410,930     6,159     0.7%

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
01/06/04      142,844    83,518    59,326    26.2
01/13/04      149,057    90,571    58,486    24.4%
01/23/04      141,107   100,090    41,017    17.0%
01/27/04      143,089    87,828    55,261    23.9%

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

In contrast to the larger S&P contracts above, commercial
traders dramatically increased their long positions in the
e-minis but remain overall net short.  Small trader pared
back some of their exuberance from the previous weeks.


Commercials   Long      Short      Net     % Of OI
01/06/04      175,489   240,865    (65,376)  (15.7%)
01/13/04      196,858   263,845    (66,987)  (14.5%)
01/23/04      233,867   307,122    (73,255)  (13.5%)
01/27/04      291,166   334,618    (43,452)  ( 6.9%)

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
01/06/04     139,433     51,909    87,524    45.7%
01/13/04     191,241     62,711   128,530    50.6%
01/23/04     187,270     57,196   130,074    53.2%
01/27/04     154,485     60,556    93,929    43.7%

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


NASDAQ-100

There is little change to report in the commercial positions
while small traders are hedging their bets almost 50/50.


Commercials   Long      Short      Net     % of OI
01/06/04       42,892     37,801     5,091    6.3%
01/13/04       41,829     38,547     3,282    4.1%
01/23/04       42,823     39,442     3,381    4.1%
01/27/04       43,704     40,951     2,753    3.3%

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
01/06/04        8,035    17,911   ( 9,876)  (38.1%)
01/13/04        9,705    12,539   ( 2,834)  (12.7%)
01/23/04        9,180    11,371   ( 2,191)  (10.7%)
01/27/04       10,137    10,715   (   578)  ( 2.8%)

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

Commercials have reached their most bullish stance in four
weeks on the Dow and in perfect timing the small traders
are at their most bearish over the last month.


Commercials   Long      Short      Net     % of OI
01/06/04       15,697     9,497    6,200      24.6%
01/13/04       16,501     8,724    7,777      30.8%
01/23/04       16,403     9,252    7,151      27.9%
01/27/04       16,536     8,404    8,162      32.7%

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
01/06/04        5,713     8,105  ( 2,392)   (17.3%)
01/13/04        6,496     9,970  ( 3,474)   (21.1%)
01/23/04        6,068    10,183  ( 4,115)   (25.3%)
01/27/04        7,240    12,372  ( 5,132)   (26.2%)

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

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


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

Network Appliance - NTAP - close: 21.48 change: +0.51

WHAT TO WATCH: Weakness in the NASDAQ has pressured NTAP down to
strong support in the $20-21 area and the rebound is already
underway, without even touching the 200-dma.  Another dip near
$20 or a breakout over the 50-dma can be used as entry points,
looking for a rally back near the $23 resistance level ahead of
the company's February 17th earnings report.

Chart=


---

DTE Energy Company - DTE - close: 38.07 change: -0.28

WHAT TO WATCH: This week has not been kind to shares of DTE, as
the stock broke below the 50-dma yesterday and tested the 200-dma
at the $38 support level today.  If that support gives way, look
for a quick slide down to $36 and quite possibly strong support
at $35.  Use an entry trigger under today's low.

Chart=


---

Monster Worldwide Inc. - MNST - close: 25.23 change: +1.73

WHAT TO WATCH: It's hard to beat a strong rebound from the 50-
dma, unless that rebound comes at the same time as a rebound from
the 200-dma.  MNST gave such a rebound on Thursday, and it looks
like it has begun the rally into next Tuesday's earnings report.
It will have to be a quick play and that means using a trigger
over today's high.

Chart=


---

Ingersoll Rand. - IR - close: 65.29 change: +1.19

WHAT TO WATCH: While still unable to break from the short-term
downtrend, IR looks like a solid rebound candidate, as it caught
a bounce today right at the long-term rising trendline.  Consider
entries near current levels and target a move back over the $70
level.  Use a tight stop just under yesterday's low, just in case
the rebound fails.

Chart=


---

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

ADSK $26.10 - After drifting sideways for a couple weeks
following the breakout over $25, ADSK tested that level as
support before today's strong rebound.  Look for an entry
following a breakout to new highs and target a rally near $30
ahead of the company's earnings report on February 26th.

CVC $24.88 - It looks like we're catching CVC just before the
fall, as the stock has pulled back to key support and is in the
process of breaking down.  Use a trigger just under the 1/29 low
($24.69) and target a drop to next support near $22.

MKC $30.69 - Right on the cusp of a breakout to new all-time
highs, MKC looks like a good breakout candidate due to the past
couple months coiling in a tight range between $28.50-30.50.  Use
a trigger above $30.75 and target a rally to the $35 area.


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

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

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

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Copyright ) 2003  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.
PremierInvestor.net Newsletter                 Thursday 02-05-2004
                                                    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

Closed Plays:      None

Stock Splits:      ASD, BWA, MSCC

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


=================================================================
Closed Plays
=================================================================

None


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

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

ASD proposes a 3-for-1 stock split

Just after lunch time this afternoon American Standard Companies,
Inc. (NYSE:ASD) announced that its Board of Directors has approved
a 3-for-1 stock split in the form of a stock dividend.  The split
will require shareholder approval to increase the number of
authorized shares.

ASD's next annual shareholder meeting will be held on May 4th,
2004 and a proposal to increase the number of authorized shares
from 200 million to 560 million will be voted on.

Details regarding shareholder record dates and payable dates for
the split were not available.

About the company:
American Standard is a global manufacturer with market-leading
positions in three businesses: air conditioning systems and
services, sold under the Trane. and American Standard. brands for
commercial, institutional and residential buildings; bath and
kitchen products, sold under such brands as American Standard. and
Ideal Standard.; and vehicle control systems, including electronic
braking and air suspension systems, sold under the WABCO. name to
the world's leading manufacturers of heavy-duty trucks, buses,
SUVs and luxury cars. The company employs approximately 60,000
people and has manufacturing operations in 29 countries. American
Standard is included in the S&P 500.
(Source: Company Press Release)

---

BWA Announces 2-for-1 Split with Earnings

This morning before the market's open BorgWarner Inc. (NYSE:BWA)
reported fourth quarter earnings of $1.80 per share.  Revenues
were $798.8 million for the quarter.  With their earnings
announcement the Board also approved a 2-for-1 stock split.

The stock split is subject to shareholder approval to be voted on
at their annual meeting on April 21st, 2004.  If approved the
split will take effect on May 17th, 2004 to shareholders on record
as of May 3rd.

About the company:
BorgWarner Inc. is a product leader in highly engineered
components and systems for vehicle powertrain applications
worldwide. The company operates manufacturing and technical
facilities in 43 locations in 14 countries. Customers include
Ford, DaimlerChrysler, General Motors, Toyota, Honda, Hyundai/Kia,
Caterpillar, Navistar International, Renault/Nissan, Peugeot and
VW/Audi. (Source: Company Press Release)

---

Microsemi (MSCC) adjusts payable date for 2-for-1 split

 As previously announced on January 26th, 2004 MSCC will enact a
2-for-1 split for shareholders on record as of February 6th, 2004.

The payable date or ex-dividend date is being adjusted from Feb.
9th to Monday, February 23rd, 2004.

About the company:
Microsemi is a leading designer, manufacturer and marketer of high
performance analog and mixed-signal integrated circuits and high
reliability discrete semiconductors. The company's semiconductors
manage and control or regulate power, protect against transient
voltage spikes and transmit, receive and amplify signals.
Microsemi's products include individual components as well as
integrated circuit solutions that enhance customer designs by
improving performance and reliability, battery optimization,
reducing size or protecting circuits. The principal markets the
company serves include implanted medical, military/aerospace and
satellite, notebook computers and monitors, automotive and mobile
connectivity applications.  (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

FRE     Freddie Mac                62.80     +0.63
KMB     Kimberly Clark             59.86     +0.59
ALL     Allstate Corp              45.36     +0.57
GD      General Dynamics           95.51     +1.96
CCE     Coca-Cola Enterprises      23.30     +0.63
FD      Federated Dept Stores      48.91     +0.70

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

PAS     PepsiAmericas Inc          18.56     +1.22
AKAM    Akamai Technologies        14.50     +3.05
BYD     Boyd Gaming Corp           18.24     +2.49
WRNC    Warnaco Group Inc          17.50     +1.02
MTRX    Matrix Service Co          13.05     +1.10
RATE    Bankrate Inc               14.86     +2.51

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

ERICY   LM Ericsson Telephone      23.70     +1.17
KSS     Kohl's Corp                46.96     +1.87
CB      Chubb Corp                 72.51     +1.91
STJ     St. Jude Medical           72.94     +1.53
ACE     Ace Ltd                    45.05     +1.59
WFMI    Whole Foods Market Inc     71.37     +2.45
RKY     Adolph Coors               61.50     +5.58

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

MDT     Medtronic                  47.25     -4.75
DVN     Devon Energy Corp          53.50     -2.88
UCL     Unocal Corp                35.22     -1.08
UPL     Ultra Petroleum Corp       22.20     -1.69
AAII    AAI Pharma                 21.24     -6.36
RHB     Rehabcare Group            22.40     -1.59
EQIX    Equinix Inc                29.50     -3.10
NVEC    NVE Corp                   46.20     -7.57

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

SYK     Stryker Corp               88.13     -1.44
ONXX    Onyx Pharmaceuticals       32.26     -1.49
SCHS    School Specialty           34.45     -1.29
MCO     Moody's Corp               62.10     -1.00
PPL     PPL Corp                   45.08     -0.73


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