Option Investor
Newsletter

Daily Newsletter, Sunday, 02/22/2004

HAVING TROUBLE PRINTING?
Printer friendly version
PremierInvestor.net Newsletter          Weekend Edition 02-22-2004
                                                    section 1 of 3
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:       Questions and More Questions
Market Sentiment:  Are You Ready?
Watch List:        BARX, FDRY, AGIL, DADE

=================================================================
MARKET WRAP  (view in courier font for table alignment)
=================================================================
       WE 02-20        WE 02-13        WE 02-06        WE 01-30
DOW    10619.03 -  8.82 10627.8 + 34.82 10593.0 +104.96 - 80.22
Nasdaq  2037.93 - 15.63 2053.56 - 10.45 2064.01 -  2.14 - 57.72
S&P-100  564.87 -  1.05  565.92 -  0.14  566.06 +  5.75 -  5.10
S&P-500 1144.11 -  1.70 1145.81 +  3.05 1142.76 + 11.63 - 10.42
W5000  11143.58 - 30.42 11174.0 + 44.60 11129.4 +100.20 -127.58
RUT      579.89 -  5.25  585.14 +  1.07  584.07 +  3.31 - 15.38
TRAN    2892.18 - 24.38 2916.56 + 22.20 2894.36 +  8.40 -186.99
VIX       16.04 +  0.46   15.58 -  0.41   15.99 -  0.64 +  1.79
VXO       16.25 +  0.62   15.63 -  0.35   15.98 -  1.07 +  2.18
VXN       24.12 -  0.02   24.14 -  0.49   24.63 -  0.43 +  3.79
TRIN       1.29            1.19            0.62            1.00
Put/Call   0.86            0.76            0.62            0.81
WE = week ending
=================================================================

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

Questions and More Questions

Was Friday's market weakness caused by the CPI data?  Did Tokyo's
raised terror alert spook the markets?  Did the dollar's strength
hit those stocks that had seen gains in an export-friendly, low-
dollar environment?  And, the biggest question of all--did the
markets begin a breakdown on Friday or just rest for a day?

Friday dawned with a mixed performance in overnight markets.
Japanese investors reacted to a smaller-than-expected rise in the
Japanese services industries index by sending the Nikkei lower by
0.31 percent.  Other Asian bourses turned in a mixed performance.
Semi-conductors fell in Asia due to a January U.S. semiconductor
book-to-bill number that was above the benchmark 1 but still
deemed disappointing by Asian investors.  A strengthening dollar
helped support those export-heavy Asian markets, however.
European markets were mixed, too, but U.S. futures were higher
and U.S. markets looked primed for a bounce until the release of
the CPI data.

That CPI data showed a 0.5 percent increase for January, far
above the expected 0.1 percent rise.  The surprise number raised
fears of inflation and rate hikes.  The markets tried to steady
at the open, but then news of a heightened terror alert in Japan
hit the markets.  Indices fell, climbed in bear flag formations
and broke down again.  By 1:00 EST, most had hit their day's low
and then began a laborious climb that caught fire at about 2:00
EST.  The Fed had marshaled its forces and Fedspeak included
Federal Reserve Governor Ben Bernanke asserting that the CPI
figure shouldn't raise alarms.  The president of St. Louis's
Federal Reserve Bank, William Poole, also reassured investors,
saying that inflation should remain low throughout 2004.
Greenspan did his part, although he focused on job growth and not
inflation.  He reiterated his belief that expanding output would
soon lead to jobs growth.

The Dow, SPX, NDX, and OEX all managed climbs above their opening
levels, but the SOX and Nasdaq never made it that far when
another bout of selling hit the markets just before the bond
market close.  Most indices ended near the middle of their day's
ranges, with the Dow down 0.43 percent, the Nasdaq down 0.39
percent, and the SPX down 0.26 percent.

Weak sectors included semiconductor stocks, networking stocks,
computer storage and peripherals, the metals, the airliners, and
the homebuilders, but even normally defensive sectors such as the
pharmaceuticals and those represented by the Morgan Stanley
Healthcare Providers Index traded lower.  The Oil Service Sector
Index was green as were the Morgan Stanley Consumer and Early
Cyclical Indices, but the first two of those three were
essentially flat.  The advdec line was negative all day, and by
the close there were 12 advancers to 21 decliners on the NYSE and
12 advancers to 20 decliners on the Nasdaq.  Down volume measured
2.7 times up volume on the NYSE and 1.7 times up volume on the
Nasdaq.

HPQ and AA led decliners among Dow stocks.  HPQ lost 3.06 percent
following its earnings report, considered in line with
expectations; and AA lost 2.41 percent after it announced that it
had sold its automotive fastener business.  This was part of an
already announced plan to help AA pay down debt.  Other story
stocks included DIS, now target of Comcast's takeover bid; and
KO, subject of a Bear Stearns downgrade to a peer-perform rating
after Thursday's announcement that the CEO would retire at the
end of the year.  DIS lost 1.67 percent, but KO declined only
0.12 percent.  Some stocks performing well included G, adding
0.82 percent and reaching a 52-week high after Prudential raised
its rating to an overweight rating; and WMT, gaining 1.80 percent
after yesterday's earnings report.

Those who came to the markets today expecting the usual opex
Friday, including early-morning volatility and then pin-them-to-
the-max-pain number, straight-across-the-charts trading, found
themselves surprised by the day's action.  How much damage was
actually done?

Annotated Daily Chart for the Dow:



On the way to its low of the day, the Dow slipped below 10,600,
testing its 21- and 30-dma's and finding support from them.
However, some troubling facts become apparent from a study of the
chart.  The Dow may have broken down below a recently established
symmetrical right triangle, and the afternoon bounce may have
been nothing more than a bounce back up to retest the broken
support.  Bearish price/MACD divergence occurred as that higher
high was hit week before last, and oscillators have continued a
pattern of lower highs.  The apparent breakdown, even with the
bounce, may merely have been reforming the consolidation pattern
into a bearish right triangle, with a flat bottom at about
10,575-10,580 and a descending top trendline.

RSI and stochastics have rolled down and both have far to go
before hitting levels indicating oversold conditions.  Those
oscillators support the idea that the Dow is either in the
process of breaking down or has already broken down, with plenty
of downside to go.  Believing in oscillators in a trending market
is a treacherous endeavor, but the Dow has begun a consolidation
process despite the recent new highs, and we might be able to
begin putting more credence in those oscillators.  For now,
however, I consider the evidence inconclusive, although with a
slight bias to the downside.  Look for another break above 10,700
as a sign that the Dow may be breaking out to the upside, and a
break below Friday's low as confirmation of a downside break.  Be
careful, though, if that downside break occurs, because the 50-
dma speeds up to join forces with the top line of the former
ascending trendline.  A bounce of some amplitude should be
expected at that point.  A failure to maintain the 50-dma would
be more serious.

Annotated Daily Chart for the TRAN:



While the Dow was rising to its 2/11 new high, the TRAN was
bouncing from the bottom of its recent plunge.  The 50 percent
retracement of the plunge and the 50-dma stopped the TRAN's
advance, however.  The divergent behavior of the two sister
indices, the Dow Industrials and Transports, has been troubling
to those familiar with Dow theory, and the longer that divergence
persists, the more bearish the outlook for the Dow.

Like the Dow, however, the TRAN's chart leaves questions
unanswered.  Until and unless the TRAN sustains levels above that
50 percent retracement of the recent plunge, we can't consider
any move higher to be a bullish move.  Yet Friday's doji at the
bottom of a decline left open the possibility that the TRAN could
reverse, printing a higher low.  Oscillators look bearish, but
also look as if they're trying to slow their descent in
preparation to turn up again.  Next week's movement will tell us
more, but watch for a TRAN move above 2952 to verify strength in
the Dow, or a fall below 2800 to verify weakness.  A TRAN move to
2800 will create a new P&F sell signal.

Annotated Daily Chart for the NDX:



The NDX left traders with as many unanswered questions as did the
other indices.  Is the NDX breaking down out of this long-term
ascending channel?  The NDX closed right on its 50-dma after
having broken through it during Friday's dip.  Oscillators look
ready to tip over again, but essentially just squiggle around at
neutral levels for each.

As I study this chart, I note that each of the last few times the
NDX approached the upper boundary of its rising regression
channel, it turned down from a bigger distance away from that
boundary, and each time it approached the lower boundary, it
violated it to a greater degree.  Is this signaling increasing
weakness?  Perhaps, but it's been dangerous to reach that
conclusion during the last year.  If the NDX should dip below the
50-dma, it will soon find historical support at 1450, a point at
which traders should expect a bounce, if not before.  It's only
after such a bounce or failure to bounce that we'll know more
about continuing strength or weakness.  Another lower high would
set up the possibility of a bearish right triangle on this chart,
too, with a much lower downside target.

Annotated Daily Chart for the SOX:



A look at the NDX wouldn't be complete without a study of the
SOX.  Over the last few days, I've been watching as the SOX
retraced some of its recent descent.  The climb appeared to be
taking the form of a bearish rising wedge, but these formations
have been notoriously unreliable over the last year.  I found
myself somewhat skeptical.  Thursday, the SOX climbed above a 50
percent retracement of the plunge, to levels that shouldn't be
sustained if the climb is a bearish distribution formation.
However, by the end of that day, the SOX had fallen back below
that key level, unable to sustain the retracement.  Friday, the
SOX appeared to have fallen out of the bearish rising wedge.  It
certainly fell back below the 50-dma, and, unlike the NDX and
COMPX, was unable to close back on that average.  The break was
minimal, however, and the oscillators inconclusive, leaving open
the question of whether the SOX can climb back inside that
regression channel and continue its way higher.  Without the SOX,
however, the NDX and COMPX are unlikely to make much headway.

Friday's action left me with the impression that the markets
teeter on the edge of a bigger pullback, but that the action
could have resulted from a combination of multiple blows received
one after the other and opex activity.  The damage did not prove
so severe that the markets could not recover, as we've seen them
do so many times over the last year when similarly teetering on
the edge of a breakdown.  When I study the weekly chart of the
OEX, a favorite index of mine to watch, I see the possibility
that the OEX could trade sideways a number of weeks, expending
any overbought pressure, just as it's done through other periods
over the last year.  The last two sideways consolidations each
required 11 to 12 weeks, and we've seen only five or six in this
latest consolidation period. The question of what happens next
must unfortunately be delayed until next week.

Earnings reports slow down next week, but a number of retailers
do report, including GPS, JCP, and KSS, among others.  Next
week's economic calendar will see a number of releases, with
February's consumer confidence number Tuesday morning at 10:00
and January's existing home sales Wednesday at 10:00.  That's
only the beginning.  Thursday will see the release of January's
durable orders, help-wanted index, and new home sales, as well as
the previous week's initial claims.  The releases don't let up on
Friday, either, with before-the-bell releases of the Q4
preliminary GDP and chain deflator, the 9:45 release of
February's revised Michigan sentiment, and the 10:00 release of
the February Chicago PMI.  The durable orders, preliminary GDP,
Michigan sentiment, and Chicago PMI will probably draw the most
attention out of those numbers.


Linda Piazza


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

Are You Ready?
- J. Brown

Hmm... the failed rally on Thursday was bad enough but Friday's
afternoon bounce also rolled over in the last two hours of
trading and that doesn't bode well for next week.  Are you ready
for the major indices to test support again?

Inflationary fears sapped the strength out of the markets on
Friday after St. Louis fed head William Poole issued comments
concerning a stronger rise in inflation than expected.  This lead
investors to fear over a sooner than expected rise in rates
despite the Fed's promise to be patient.  Fortunately, Alan
Greenspan soothed those fears somewhat with his own comments on
Friday afternoon.  Aggravating the mood on Wall Street were
headlines from Japan about the country gearing up to their
highest state of alert over terrorism fears.

Overall it was a choppy day with only retail and oil stocks
managing any gains.  Market internals were bearish as declining
stocks out paced advancers almost 18 to 10 on the NYS and nearly
19 to 11 on the NASDAQ.  Down volume was more than double up
volume on the NYSE and almost as bad on the NASDAQ.

All of the talk about the markets looking tired is finally
starting to take affect.  Most of the sector indices do look
tired and several are testing support.  The disk drive index has
pulled back to support at 125 and if it breaks there it should
quickly test its 200-dma.  Hardware stocks also look weak as the
GHA.X has produced another sell signal in its MACD indicator.
Software stocks tell the same story but the GSO is still holding
on to its 50-dma.  Surprisingly Internet stocks are holding up
relatively well due to the strength in shares of EBAY.  The
bounce in the semiconductors appears to be fading and the
February consolidation may turn out to be nothing but a big bear
flag.  I'd expect the SOX to retest support at the 500 level
soon.  The NWX networking index is beginning to look pretty weak
with Friday's drop to the 50-dma.

Banking stocks have managed to hold up pretty well considering
all the M&A activity and speculation for more mergers defusing
most of the selling pressure.  Brokers are doing pretty well too
with only minor profit taking.

Normally one might expect defensive stocks like drugs to out
perform with the markets weak but not so this last week.  The DRG
has dropped five out of the last six sessions and looks poised
for more declines.

Oil and oil services have been able to maintain their bullish
trends but traders are beginning to take some money out of oil
services issues and the OIX still can't break resistance at 330.
Natural gas stocks had a rough week after the El Paso warning.

Defense and insurance stocks, which have been real leaders in the
markets, are finally seeing some profit taking.  If the major
indices bounce I'd expect to see traders buying the dip here.

Retail issues have been able to maintain their gains with Wal-
Mart's strong performance lending a floor to the RLX index.

Gold stocks look weak now after a strong drop in gold futures due
to the big bounce in the dollar.  The dollar may have put in a
short-term bottom but still has resistance just overhead.

Be sure to revisit your stop losses as next week could be choppy
with another round of economic reports and multiple speaking
engagements for the various Federal Reserve governors.


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

Market Averages

DJIA ($INDU)

52-week High: 10753
52-week Low :  7416
Current     : 10619

Moving Averages:
(Simple)

 10-dma: 10651
 50-dma: 10452
200-dma:  9619



S&P 500 ($SPX)

52-week High: 1158
52-week Low :  788
Current     : 1144

Moving Averages:
(Simple)

 10-dma: 1148
 50-dma: 1120
200-dma: 1034



Nasdaq-100 ($NDX)

52-week High: 1559
52-week Low :  938
Current     : 1482

Moving Averages:
(Simple)

 10-dma: 1497
 50-dma: 1482
200-dma: 1349


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

The major market averages couldn't make up their minds what
direction to go and neither could the volatility indices,
but that's probably par for the course on an expiration Friday.

CBOE Market Volatility Index (VIX) = 16.04 +0.24
CBOE Mkt Volatility old VIX  (VXO) = 16.25 -0.65
Nasdaq Volatility Index (VXN)      = 24.12 -0.12

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

          Put/Call Ratio  Call Volume   Put Volume

Total          0.86      1,224,856     1,050,314
Equity Only    0.63      1,046,201       689,385
OEX            1.30         63,522        82,645
QQQ            2.89         44,855       129,820


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

Bullish Percent Data

           Current   Change   Status
NYSE          76.9    - 1     Bull Confirmed
NASDAQ-100    68.0    - 1     Bear Alert
Dow Indust.   86.7    + 0     Bull Confirmed
S&P 500       87.0    - 1     Bull Confirmed
S&P 100       89.0    + 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: 1.11
10-dma: 1.02
21-dma: 1.02
55-dma: 0.99


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    1050      1142
Decliners    1774      1896

New Highs     171       158
New Lows       13        10

Up Volume    476M      695M
Down Vol.   1310M     1165M

Total Vol.  1823M     1882M
M = millions


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

Commitments Of Traders Report: 02/17/04

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

Commercial traders are still stuck in limbo with very little
movement, although the movement this week was bullish.  As is
normally the case small traders moved the opposite direction.


Commercials   Long      Short      Net     % Of OI
01/27/04      417,089   410,930     6,159     0.7%
02/03/04      411,920   414,596    (2,676)   (0.3%)
02/10/04      412,217   414,044    (1,827)   (0.2%)
02/17/04      416,148   415,278       870     0.0%

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
01/27/04      143,089    87,828    55,261    23.9%
02/03/04      141,465    81,926    59,539    26.7%
02/10/04      143,496    80,362    63,134    28.2%
02/17/04      141,533    84,227    57,306    25.3%

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

Commercial traders became slightly more bearish last week
with a decent increase in short positions.  Small traders
increased both longs and shorts but overall look a lot
more bullish.


Commercials   Long      Short      Net     % Of OI
01/27/04      291,166   334,618    (43,452)  ( 6.9%)
02/03/04      280,519   346,042    (65,523)  (10.5%)
02/10/04      297,601   356,630    (59,029)  ( 9.0%)
02/17/04      296,313   371,703    (75,390)  (11.3%)

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
01/27/04     154,485     60,556    93,929    43.7%
02/03/04     133,293     55,476    77,817    41.2%
02/10/04     110,480     58,428    52,052    30.8%
02/17/04     144,014     64,391    79,623    38.2%

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


NASDAQ-100

Commercials still aren't making any big changes here but
they did turn slightly more bullish on the NDX.  Small
traders didn't move much.


Commercials   Long      Short      Net     % of OI
01/27/04       43,704     40,951     2,753    3.3%
02/03/04       43,600     41,441     2,159    2.5%
02/10/04       44,406     40,439     3,967    4.7%
02/17/04       46,104     40,385     5,719    6.6%

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
01/27/04       10,137    10,715    (  578)  ( 2.8%)
02/03/04        8,907    13,729    (4,822)  (21.3%)
02/10/04        9,906    13,018    (3,112)  (13.6%)
02/17/04        9,630    12,338    (2,708)  (12.3%)

Most bearish reading of the year: (10,769) - 06/11/02
Most bullish reading of the year:  19,088  - 01/21/02

DOW JONES INDUSTRIAL

Minor increases in both shorts and longs for commercial
traders lead to a small up tick in bullish sentiment.
Small traders turned slightly more negative on the Dow.


Commercials   Long      Short      Net     % of OI
01/27/04       16,536     8,404    8,162      32.7%
02/03/04       17,765     9,619    8,146      29.7%
02/10/04       21,764    11,974    9,790      29.0%
02/17/04       24,451    12,907   11,544      30.9%

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
01/27/04        7,240    12,372   (5,132)   (26.2%)
02/03/04        6,352    13,113   (6,761)   (34.7%)
02/10/04        6,267    14,220   (7,953)   (38.8%)
02/17/04        6,768    15,623   (8,855)   (39.5%)

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

BARRA Inc - BARZ - close: 31.33 change: -0.18

WHAT TO WATCH: The longer-term trend of lower highs is starting
to pick up steam.  The latest failed rally stalled at BARZ's 40-
dma near $34.00.  Its MACD has rolled over into a new sell signal
while shares trade lower towards support at $30.00.  If BARZ
breaks $30.00 the stock will look like a short candidate for a
potential trade to $25.00.




---

Foundry Networks - FDRY - close: 21.76 change: -0.57

WHAT TO WATCH: Both bulls and bears can be watching FDRY for its
next move.  The stock has pulled back to test support at its 200-
dma while also breaking short-term support at the $22.00 level.
Bears will note the short-term trend and the better than average
volume in Friday's decline.  Also noteworthy is FDRY's very
bearish P&F chart.  Bulls can hope for a bounce but we wouldn't
consider new plays until we saw FDRY trade above the $23.25
level.




---

Agile Software - AGIL - close: 9.94 change: -0.23

WHAT TO WATCH: This may be a little aggressive but AGIL looks
poised for a drop to the $9.00 level of support.  The short-term
trend of lower highs has blossomed into a technical breakdown
through support at $10.00 and its 200-dma.  Not helping the stock
is the GSO software index, which is just barely holding support
at its 50-dma.  Watch its P&F chart.  A move under $9.50 should
break support there as well.




---

Dade Behring Holdings - DADE - close: 39.56 change: +1.76

WHAT TO WATCH: Two weeks ago we listed DADE on the Radar screen
(below) as it approached the bottom of its rising channel and
technical support at the 40-dma.  We suggested buying the dip
with a tight stop.  Congrats to traders who took that play as the
stock is now trading higher and challenging resistance at $40.00.
Entry points now are to look for a breakout over $40.00 or wait
for another dip to the 40-dma.





-----------------------------------
RADAR SCREEN - more stocks to watch
-----------------------------------

MENT $16.85 +0.76 - Mentor Graphics is bouncing from its 200-dma
after weeks of building a trend of higher lows.  Its MACD has
turned into a new bullish buy signal and shares look ready to
test overhead resistance at $18.00.

EGOV $5.77 -0.48 - The sell-off here is picking up speed and EGOV
looks like it's headed for the 200-dma near the $5.00 mark.

FL $25.87 +0.13 - We like the relative strength seen in Foot
Locker.  Bulls may want to consider buying a bounce from $25.00
or a breakout over $26.20.


=================================================================
To stop receiving this PremierInvestor.net Newsletter,
send email to Contact Support
=================================================================
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

*****************************************************************
ADVERTISING INFORMATION

For more information on advertising in PremierInvestor.net
Newsletter, or any Premier Investor Network newsletter please
contact Contact Support.

*****************************************************************

Copyright (c) 2001-2004  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.
PremierInvestor.net Newsletter          Weekend Edition 02-22-2004
                                                    section 2 of 3
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 two:

Tech Stocks
  New Bearish Plays:     CSCO, UTEK
  Bullish Play Updates:  VTSS
  Bearish Play Updates:  TSS


Active Trader (Non-tech)
  Bullish Play Updates:  ARA, ANN, BA, LIN
  Closed Bullish Plays:  SGP
  Closed Bearish Plays:  NFLX

High Risk/Reward
  Bearish Play Updates:  NETE
  Closed Bullish Plays:  GSS


Stock Splits
  Announcements:         GGG, VAPH


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

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

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

Cisco Systems - CSCO - close: 23.19 change: +0.04 stop: 25.10

Company Description:
Cisco Systems, Inc. manufactures and sells networking and
communications products and provides services associated with
that equipment and its use. The Company's products are installed
at corporations, public institutions and telecommunication
companies, as well as commercial businesses, and are also found
in personal residences. Cisco provides a broad line of products
for transporting data, voice and video within buildings, across
campuses and around the world. It conducts its business globally
and is managed geographically in four segments: the Americas;
Europe, the Middle East and Africa (EMEA); Asia Pacific, and
Japan.

Why we like it:
Along with the rest of the Technology sector, CSCO had a stellar
run into its January highs just south of $30.  But things changed
significantly soon after, with the stock falling back to just
above the 50-dma support ahead of its early February earnings
report.  Investors weren't sufficiently pleased with what the
company's management had to say and they proceeded to drive the
stock under the 50-dma after the news was out.  Over the past
couple weeks, CSCO has been consolidating just above $24, but
looking weak.  That weakness really picked up steam on Friday,
with the stock breaking solidly under that $24 level and actually
taking out the $23 level intraday before a feeble end of day
rebound.  While the stock is still technically on a PnF Buy
signal, all other indications are pointing to further downside
before CSCO finds enough support to generate a sustainable
rebound.

Support on the PnF chart doesn't really appear until the $19.00-
19.50 area, so there's no help there.  Turning to the standard
price chart, we can see that there is some support near $23,
helping to explain Friday's late-day rebound.  But more
realistically, it looks like a drop to at least $21.50 is in
store, and more likely the 200-dma ($20.85) will come into play.
If this really is the beginning of more sustained weakness than
we've been seeing of late (and with the NASDAQ Composite closing
again right on its own 50-dma, it certainly seems like that could
be the case), then we can look for the stock to continue down
towards that strong support near $19.50 could be in play.  We'll
play it a bit on the cautious side though and initially target a
drop to the 200-dma and re-evaluate once that target is reached.
While momentum entries below Friday's low may work, our
preference is to target entry into the play on a failed rebound
near strong resistance at $24.  We'll start with our stop set at
$25.10, just over the top of the post-earnings gap and the
intraday highs since then.

Annotated Chart of CSCO:



Picked on February 22nd at  $23.19
Change since picked          +0.00
Earnings Date              5/11/04 (confirmed)
Average Daily Volume =    48.8 mln



---

Ultratech - UTEK - close: 25.09 change: -1.16 stop: 27.25

company description:
Founded in 1979, Ultratech, Inc. designs, manufactures and
markets photolithography equipment used worldwide in the
fabrication of semiconductor and nanotechnology devices. The
company produces products designed to substantially reduce the
cost of ownership for manufacturers in the electronics industry.
Ultratech is a market leader in gold and solder bump lithography.
(source: company press release)

Why We Like It:
It has been a rough five weeks for shares of UTEK.  The stock
peaked above $35.00, a new 3-year high, in January before
promptly reversing direction.  Since then it has seen a steady
trend of lower highs as investors sell each rally.  Declines in
the SOX over the last month have not helped and UTEK is under
performing its peers.  Due to some of the volume spikes on the
declines it looks like investors are taking some money off the
table.  That's not a bad idea considering that UTEK traded for
less than $7.00 in October 2002.

The recent breakdown under its 200-dma is bearish and UTEK
produced another failed rally at its 21-dma with Thursday's
performance.  More conservative traders may want to consider
waiting to initiate new positions on a move below Friday's low
(24.73) or a move below the December low near $24.15.  We are
going to (hypothetically) open the play now given the last
afternoon roll over on Friday.  Point-and-figure chart traders
will note that UTEK will produce a triple-bottom sell signal once
it trades under the $24.00 mark but its P&F chart also shows
support at $21.00.  We're going to target the $22.00 (21.75) area
first with a potential secondary target of $20.00.

Annotated Chart:



Picked on February 22 at $25.09
Gain since picked:       - 0.00
Earnings Date          02/04/04 (confirmed)
Average Daily Volume:       416 thousand




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

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

Vitesse Semicon. - VTSS - close: 8.47 change: -0.37 stop: 8.10

Things are not looking good for our bullish play on VTSS, with
the breakout over $9 earlier this week being sharply reversed
over the past two sessions.  Just on Friday, the stock suffered a
4.2% decline and fell back to close right on its 20-dma ($8.46),
which is a key level of support.  The stock's decline greatly
outpaced the 1% slide in the Semiconductor index (SOX.X) and the
bulls will need to show some conviction early next week in order
to keep the play alive.  While volume on the drop of the past two
days has been less than that seen on the breakout move, it has
still been well above the ADV and with the daily Stochastics
giving a clear bearish reversal, the prospects for a rebound are
not good.  We would not recommend new positions unless VTSS can
get back over the $9.00 level and more conservative traders will
want to see a move back over Thursday's $9.39 high before
playing.  Maintain stops at $8.10, which is just under the
stock's intraday low from February 13th.

Picked on February 18th at   $9.05
Change since picked          -0.58
Earnings Date              1/22/04 (confirmed)
Average Daily Volume =    6.11 mln





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

Total System Services - TSS - cls: 21.68 chg: -0.41 stop: 22.51

Wow!  It took all week but TSS finally broke down through support
at $22 and hit our TRIGGER at $21.75 to open this short play.
Our stop loss is now at 22.51 and we're targeting a move to the
$19.00-20.00 range.  TSS' bearish P&F chart still points to a
$12.00 price target.  Headlines have been scarce for TSS but if
you remember the stock was hammered back in January on an
earnings warning and concerns that it would lose Bank One's
business once Bank One completes its merger with JPM.  If you
missed the trigger shares still look good as a short at current
levels.

Annotated Chart:



Picked on February 20 at $21.75
Gain since picked:       - 0.07
Earnings Date          01/13/04 (confirmed)
Average Daily Volume:       323 thousand




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


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

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

Aracruz Celulose Sa - ARA - close: 34.55 chg: +0.37 stop: 32.50

Our ARA play is working out well.  The stock quickly ran toward
the 36.00 level midweek before pulling back in the market-wide
profit taking.  Fortunately, traders bought the dip back toward
previous resistance now new support at 33.50.  This looks like a
new entry point for trades who missed it last week but we're
using a tighter stop loss at $32.50.  More conservative traders
can probably get away with a stop loss at 33.50 instead.  The
afternoon bounce on Friday bodes well for next week.  Our target
is $38.00.

Annotated Chart:



Picked on February 15 at $34.11
Gain since picked:       + 0.44
Earnings Date          01/13/04 (confirmed)
Average Daily Volume:       323 thousand



---

AnnTaylor Stores - ANN - close: 44.65 change: +0.64 stop: 42.25

It has been a decent week for shares of ANN.  The retail sector
help up reasonably well while most of the market suffered late
week profit taking.  WMT's strong performance this week had a lot
to do with the retail sector's strength but ANN has been getting
some positive comments in the press albeit indirectly.  A
Barron's article last week highlighted an analyst who favored ANN
while a Forbes article listed ANN as one of its stocks expected
to produce above average earnings growth for the next two years.
Plus, ANN is being "upgraded" from the S&P smallcap 600 index to
the S&P midcap 400 index.  The change takes place on February
26th.  Looking closer at ANN's performance we're encouraged by
the bounce from the $44 level but would not be surprised to see
it test its 10-dma again if the market indices turn lower next
week.

Annotated chart:




Picked on February 08 at $42.68
Gain since picked:       + 1.97
Earnings Date          03/09/04 (confirmed)
Average Daily Volume:       790 thousand



---

The Boeing Co. - BA - close: 44.34 change: -0.18 stop: 42.25*new*

After 3 consecutive days of failing to push over the $45 level,
shares of BA look to be in the early stages of a mild rollover.
Clearly, continued weakness in the Dow Transports ($TRAN) isn't
helping the play, but quite honestly, we're encouraged by how
well the stock has been holding up in the past week.  A breakout
(and close) over $45 still looks like it should kick off another
upward leg, but BA will likely need to drop back to support and
get another running start to get the job done.  Wednesday's
intraday trade at $45.10 was enough to trigger the play to live
status and now we can consider entries on this pullback to
support.  A drop back near the $43.50 level looks like a good
level for new entries, as it is supported now by the 20-dma
($43.44) and is just over the $43.32 intraday low of February
11th.  On each prior pullback in recent months, BA has found
support just above its 50-dma ($42.38) before continuing to new
highs, so it seems prudent to raise our stop to $42.25.  A break
below the 50-dma would be a clear sign that something has
changed.

Picked on February 11th at  $44.49
Change since picked          -0.15
Earnings Date              1/29/04 (confirmed)
Average Daily Volume =    3.09 mln




---

Linen N Things - LIN - close: 33.18 chg: -0.18 stop: 31.00

We'll admit it.  We're surprised by the relative strength in
shares of LIN this week.  Instead of pulling back to the $32
level as expected LIN managed to extend its trend of higher lows
while trying to breakout again over the $34 level.  A strong
retail sector didn't hurt.  LIN finally slipped in some profit
taking on Thursday-Friday but found support from 32.76, just
above its 10-dma.  We'd consider new positions at current levels
but patient traders may want to wait and see if that dip to
$32.00 is still in the works.  LIN's P&F chart looks very bullish
and points to a $50 price target.  LIN may get a boost on
Wednesday this coming week if its management offers any positive
surprises at the Bear Stearns Tenth Annual Retail, Restaurants &
Apparel Conference.

Annotated chart:



Picked on February 08 at $31.64
Gain since picked:       + 1.54
Earnings Date          02/04/04 (confirmed)
Average Daily Volume:       557 thousand




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


  --------------------
  Closed Bullish Plays
  --------------------

Schering-Plough - SGP - close: 18.30 change: -0.07 stop: 17.50

After two weeks of watching SGP, we're forced to admit that this
play is a stinker.  After breaking out in early February, the
stock has steadily been losing strength and rather than setting
up for another upside move, it looks like it is rolling over.
While still holding support at $18, the stock hasn't made any
real bullish moves since we began coverage.  We're dropping the
play this weekend in order to make room for more promising
candidates.

Picked on February 8th at   $18.55
Change since picked          -0.25
Earnings Date              1/26/04 (confirmed)
Average Daily Volume =    5.66 mln





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

Netflix, Inc. - NFLX - close: 35.38 change: +1.23 stop: 38.25

We were waiting for NFLX to trip our $34 trigger to move it to
active status and that event occurred late on Thursday, with the
stock trading just below that level.  Things looked like they
were really moving our way on Friday morning, as the stock
stumbled lower to an intraday low near $32.55.  That's when
things started to unravel, as buyers appeared and bought the
stock on strong volume all the way into the closing bell.  It
isn't so much the 3.6% gain on Friday that bothers us, but the
strength of the rebound from the lows and close right at the
intraday high.  The brief move under $34 looks like a classic
bear trap and it seems prudent to wiggle our way out of it as
soon as possible.  So we're dropping NFLX this weekend, as we
don't want to slip further under water if the buying spree
continues on Monday.

Picked on February 15th at  $35.54
Change since picked          +0.00
Earnings Date              1/21/04 (confirmed)
Average Daily Volume =    4.27 mln





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


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

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

Netegrity, Inc. - NETE - clse: 8.93 chnge: -0.39 stop: 10.00*new*

It took a lot of patience to ride through the volatile rebound of
the past couple weeks, but it looks like that patience is finally
being rewarded.  After bouncing as high as $10.29 on 2/11, NETE
spent most of last week doing battle with the $10 level, finding
consistent resistance near the 10-dma (currently $9.59).  The
stock finally began rolling over again on Thursday, breaking back
under the 200-dma ($9.54).  Things started looking even better on
Friday, as NETE started out weak and then dropped into its
intraday low of $8.82, just barely eclipsing its 2/05 intraday
low.  An afternoon rebound failed and the stock closed under the
key $9.00 level for the first time since August.  With the daily
Stochastics now tipped over in a short-cycle bearish reversal, it
looks like the downward move towards $8.00 that we've been
expecting is underway.  Another failed bounce below the 10-dma
looks favorable for new entries, as does a breakdown under
Friday's low.  Tighten stops to $10.00, which will be above the
20-dma ($10.04) on Monday, as well as the past week's intraday
highs.

Picked on February 4th at    $9.16
Change since picked          -0.23
Earnings Date              1/26/04 (confirmed)
Average Daily Volume =       702 K





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


  --------------------
  Closed Bullish Plays
  --------------------

Golden Star Rsrcs. - GSS - close: 5.69 change: -0.41 stop: 5.80

After more than a week of doing battle with its 50-dma, GSS
finally succumbed to bearish pressures on Friday, courtesy of
renewed strength in the dollar.  The stock gapped down to $6.00
and then headed straight down in the early going, hitting an
early low of $5.55 and triggering our stop in the process.  The
entire mining sector was under heavy pressure throughout the day
and clearly we have to concede defeat.  Any rebound early next
week should be used to gain a more favorable exit for those that
weren't taken out by their stops on Friday.

Picked on February 8th at    $5.94
Change since picked          -0.25
Earnings Date              2/02/04 (confirmed)
Average Daily Volume =    2.66 mln





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

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

GGG declares a 3-for-2 split & 2 million share buyback

About lunch time on Friday Graco Inc. (NYSE:GGG) announced that
its Board of Directors had approved a 3-for-2 stock split.  The
Board also approved a 2 million share buyback (or 3 million post-
split) to begin now through February 28th, 2006 and a quarterly
cash dividend of 14 cents per share (or 0.93 cents per share post-
split).

The payable date for the stock split is March 30th, 2004 for
shareholders on record as of March 16th.  According to GGG's press
release this will be their eleventh split since its IPO in 1969.

The cash dividend will be payable on May 5th, 2004 to shareholders
on record as of April 19th.


About the company:
Graco Inc. supplies technology and expertise for the management of
fluids in both industrial and commercial applications. It designs,
manufactures and markets systems and equipment to move, measure,
control, dispense and spray fluid materials. A recognized leader
in its specialties, Minneapolis-based Graco serves customers
around the world in the manufacturing, processing, construction
and maintenance industries. (Source: Company Press Release)

---

VAPH announces a 3-for-1 stock split

Prior to the opening bell Vaso Active Pharmaceuticals, Inc.
(NASDAQ:VAPH) announced that its Board of Directors had approved a
3-for-1 stock split in the form of a 200% stock dividend.

The dividend is payable on March 5th, 2004 for shareholders on
record as of February 23rd.  The split is effective for both Class
A and Class B shares.  Post-split the company should have 10.2
million shares outstanding.


About the company:
Vaso Active holds the exclusive, worldwide license to
commercialize, sell and distribute over-the-counter pharmaceutical
products incorporating the patented transdermal (i.e. through the
skin) drug delivery technology of its parent company, BioChemics,
Inc. This technology provides a highly efficient, reliable and
targeted method of drug delivery that does not require the use of
a needle or patch and eliminates many of the common side effects
of pills, such as bleeding and ulcers. (Source: Company Press
Release)


=================================================================
To stop receiving this PremierInvestor.net Newsletter,
send email to Contact Support
=================================================================
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

*****************************************************************
ADVERTISING INFORMATION

For more information on advertising in PremierInvestor.net
Newsletter, or any Premier Investor Network newsletter please
contact Contact Support.

*****************************************************************

Copyright (c) 2001-2004  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.
PremierInvestor.net Newsletter          Weekend Edition 02-22-2004
                                                    section 3 of 3
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 three:

Market Watch for Week of February  23, 2004
   - Major Earnings
   - Stock Splits
   - Economic Reports

Trading Ideas
  Value Plays With Bullish Signals
  Breakout to Upside (Stocks $5 to $20)
  Breakout to Upside (Stocks over $20)
  Breakout to Downside (Stocks over $20)
  Recently Overbought With Bearish Signals (Stocks over $20)


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

===========================================
Market Watch for the week of February  23rd
===========================================

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

Symbol  Co               Date           Comment           EPS Est

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

BNL    BUNZL PLC             Mon, Feb 23  Before the Bell      N/A
CPB    Campbell Soup         Mon, Feb 23  -----N/A-----       0.57
CHK    Chesapeake Energy CorpMon, Feb 23  After the Bell      0.35
CE     Concord EFS           Mon, Feb 23  Before the Bell     0.20
DY     Dycom Industries      Mon, Feb 23  After the Bell      0.18
ETM    Entercom Comm         Mon, Feb 23  Before the Bell     0.38
LOW    Lowe's Companies      Mon, Feb 23  Before the Bell     0.50
NAV    Navistar Intl         Mon, Feb 23  Before the Bell    -0.44
NOVL   Novell, Inc.          Mon, Feb 23  After the Bell      0.03
ODSY   Odyssey Healthcare    Mon, Feb 23  After the Bell      0.23
OKE    ONEOK Inc.            Mon, Feb 23  -----N/A-----       0.66
KPN    Royal Kpn N.V.        Mon, Feb 23  -----N/A-----        N/A
SNPS   Synopsys              Mon, Feb 23  After the Bell      0.31
TRI    Triad Hospitals, Inc  Mon, Feb 23  After the Bell      0.47
WRI    Weingarten Rlty InvstrMon, Feb 23  Before the Bell     0.88


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

ABGX   Abgenix               Tue, Feb 24  After the Bell     -0.46
AIB    Allied Irish Banks    Tue, Feb 24  Before the Bell      N/A
AMSG   AmSurg                Tue, Feb 24  After the Bell      0.40
AMLN   Amylin Pharm, Inc.    Tue, Feb 24  Before the Bell    -0.22
ASMI   ASM International N.V.Tue, Feb 24  -----N/A-----      -0.19
BMO    Bank Of Montreal      Tue, Feb 24  -----N/A-----        N/A
BTI    British Am Tobacco    Tue, Feb 24  Before the Bell     0.58
BFb    Brown-Forman Corp     Tue, Feb 24  Before the Bell     0.60
CCU    Clear Channel Comm    Tue, Feb 24  Before the Bell     0.33
COLT   COLT Telecom Group    Tue, Feb 24  Before the Bell      N/A
CPRT   Copart                Tue, Feb 24  After the Bell      0.16
DLTR   Dollar Tree Stores    Tue, Feb 24  After the Bell      0.69
ESRX   Express Scripts, Inc. Tue, Feb 24  After the Bell      0.85
FOSL   Fossil, Inc.          Tue, Feb 24  Before the Bell     0.55
HRB    H&R Block, Inc.       Tue, Feb 24  After the Bell      0.45
HNZ    H.J. Heinz Company    Tue, Feb 24  Before the Bell     0.57
HIW    Highwoods Properties  Tue, Feb 24  After the Bell      0.63
HD     Home Depot Inc        Tue, Feb 24  Before the Bell     0.39
HMT    Host Marriott         Tue, Feb 24  Before the Bell     0.23
IM     Ingram Micro          Tue, Feb 24  -----N/A-----       0.23
LIHRY  LIHIR GOLD LTD        Tue, Feb 24  -----N/A-----       0.10
NXTP   Nextel Partners       Tue, Feb 24  -----N/A-----      -0.04
POG    Patina Oil & Gas      Tue, Feb 24  After the Bell      0.70
PUK    Prudential PLC        Tue, Feb 24  Before the Bell      N/A
RCI    Renal Care Group, Inc.Tue, Feb 24  After the Bell      0.56
REP    Repsol YPF            Tue, Feb 24  Before the Bell     0.50
STOSY  Santos Ltd.           Tue, Feb 24  -----N/A-----        N/A
SRE    Sempra Energy         Tue, Feb 24  -----N/A-----       0.57
SMTC   Semtech               Tue, Feb 24  After the Bell      0.14
SFD    Smithfield Foods      Tue, Feb 24  Before the Bell     0.43
TIWI   Telesystem Intl Wrls  Tue, Feb 24  After the Bell      0.01
TTC    Toro                  Tue, Feb 24  Before the Bell     0.22
TUES   Tuesday Morning Corp  Tue, Feb 24  Before the Bell     0.88
TZA    TV Azteca S.A. de C.V.Tue, Feb 24  After the Bell      0.28
WOOF   VCA Antech, Inc.      Tue, Feb 24  After the Bell      0.20
WTW    Weight Watchers Intl  Tue, Feb 24  After the Bell      0.35


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

AEM    Agnico-Eagle Mines LtdWed, Feb 25  After the Bell      0.01
AFR    Am Finl Rlty Trust    Wed, Feb 25  Before the Bell     0.24
AAUK   Anglo American Plc    Wed, Feb 25  Before the Bell      N/A
BLI    Big Lots, Inc.        Wed, Feb 25  Before the Bell     0.65
CNQ    Can Natl Resources LtdWed, Feb 25  Before the Bell     0.95
CPG    Chelsea Property GroupWed, Feb 25  After the Bell      1.02
CYH    Comm Hlth Sys Inc.    Wed, Feb 25  After the Bell      0.32
EV     Eaton Vance Corp.     Wed, Feb 25  Before the Bell     0.45
ERIE   Erie Indemnity        Wed, Feb 25  After the Bell      0.66
FMT    Fremont General       Wed, Feb 25  Before the Bell      N/A
FMS    Fresenius Medical CareWed, Feb 25  -----N/A-----        N/A
EKT    Grupo Elektra S.A.    Wed, Feb 25  After the Bell       N/A
TV     Grupo Televisa, S.A.  Wed, Feb 25  After the Bell      0.91
JOYG   Joy Global Inc.       Wed, Feb 25  Before the Bell     0.06
MDG    Meridian Gold Inc.    Wed, Feb 25  After the Bell      0.10
NDSN   Nordson               Wed, Feb 25  -----N/A-----       0.24
ORLY   O'Reilly Automotive   Wed, Feb 25  After the Bell      0.43
PEI    Penn Rl Est Invest    Wed, Feb 25  Before the Bell     0.77
TRK    Speedway Motorsports  Wed, Feb 25  Before the Bell     0.25
SPM    Spirent PLC           Wed, Feb 25  Before the Bell     0.06
TRLY   Terra Networks        Wed, Feb 25  Before the Bell      N/A
TJX    The TJX Companies Inc Wed, Feb 25  Before the Bell     0.44
TIF    Tiffany & Co.         Wed, Feb 25  Before the Bell     0.70
URI    United Rentals        Wed, Feb 25  Before the Bell     0.16


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

ABB    ABB                   Thu, Feb 19  -----N/A-----        N/A
AEOS   Am Eagle Outfitters   Thu, Feb 26  Before the Bell     0.55
APPX   American Pharm Prtnrs Thu, Feb 26  -----N/A-----       0.22
ADSK   Autodesk, Inc.        Thu, Feb 26  After the Bell      0.29
AXA    AXA                   Thu, Feb 26  -----N/A-----        N/A
BE     BearingPoint, Inc.    Thu, Feb 26  Before the Bell     0.07
CPN    Calpine Corporation   Thu, Feb 26  Before the Bell    -0.11
BCM    Can Imprl Bank Comm   Thu, Feb 26  Before the Bell      N/A
CZ     Celanese AG           Thu, Feb 26  -----N/A-----        N/A
KOF    COCA-COLA FEMSA       Thu, Feb 26  Before the Bell     0.43
BVN    Comp Minas Buena      Thu, Feb 26  After the Bell      0.42
CXR    COX RADIO INC         Thu, Feb 26  Before the Bell     0.15
DDIOOB DDi Corp.             Thu, Feb 26  After the Bell       N/A
DCI    Donaldson             Thu, Feb 26  After the Bell      0.57
ECA    EnCana Corporation    Thu, Feb 26  -----N/A-----       0.61
EASI   Engineered Support SysThu, Feb 26  Before the Bell     0.55
E      ENI SpA               Thu, Feb 26  -----N/A-----       1.71
FMX    FEMSA                 Thu, Feb 26  -----N/A-----       0.85
GPS    Gap Inc.              Thu, Feb 26  After the Bell      0.37
HTV    Hearst-Argyle TV, Inc Thu, Feb 26  Before the Bell     0.33
OTE    Hellenic Telecomm     Thu, Feb 26  -----N/A-----        N/A
IMDC   INAMED                Thu, Feb 26  After the Bell      0.47
ISG    Intl Steel Group Inc. Thu, Feb 26  Before the Bell     0.15
IRM    Iron Mountain Incorp  Thu, Feb 26  Before the Bell     0.21
JCP    JC Penney             Thu, Feb 26  Before the Bell     0.80
KSS    Kohl's                Thu, Feb 26  -----N/A-----       0.69
LQI    La Quinta Corporation Thu, Feb 26  Before the Bell    -0.10
LR     Lafarge               Thu, Feb 26  Before the Bell      N/A
LTD    Limited Brands        Thu, Feb 26  Before the Bell     0.74
LIZ    Liz Claiborne         Thu, Feb 26  Before the Bell     0.66
CLI    Mack-Cali Realty Corp Thu, Feb 26  Before the Bell     0.88
MGA    Magna International   Thu, Feb 26  -----N/A-----       1.63
MRVL   Marvell Technology    Thu, Feb 26  After the Bell      0.28
NXL    Nw Pln Excel Rlty TrstThu, Feb 26  Before the Bell     0.47
NIHD   NII Holdings          Thu, Feb 26  Before the Bell     0.45
POM    Pepco Holdings, Inc.  Thu, Feb 26  -----N/A-----       0.18
PRX    Pharmaceutical Res    Thu, Feb 26  -----N/A-----       1.08
PDG    Placer Dome           Thu, Feb 26  -----N/A-----       0.12
PDE    Pride International   Thu, Feb 26  After the Bell      0.12
PSA    Public Storage        Thu, Feb 26  After the Bell      0.71
RHD    R.H. Donnelley Corp   Thu, Feb 26  After the Bell      0.46
RA     Reckson Ass Rlty Corp Thu, Feb 26  After the Bell      0.36
SPW    SPX                   Thu, Feb 26  After the Bell      1.30
TKP    Technip               Thu, Feb 26  -----N/A-----        N/A
RSE    The Rouse Company     Thu, Feb 26  -----N/A-----       1.11
TOL    Toll Brothers         Thu, Feb 26  -----N/A-----       0.60
TKS    Tomkins PLC           Thu, Feb 26  Before the Bell      N/A
TD     Toronto Dominion Bank Thu, Feb 26  -----N/A-----        N/A
UNEWY  United Business Media Thu, Feb 26  Before the Bell      N/A
USON   US Oncology           Thu, Feb 26  Before the Bell     0.21
VTR    Ventas                Thu, Feb 26  -----N/A-----       0.39
WPC    W. P. Carey & Co. LLC Thu, Feb 26  Before the Bell     0.84


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

ANIK   Anika Therapeutics    Fri, Feb 27  Before the Bell      N/A
AVE.L  Avis Europe           Fri, Feb 27  -----N/A-----        N/A
XTXI   CROSSTEX ENERGY INC   Fri, Feb 27  Before the Bell      N/A
FIA    Fiat S.p.A.           Fri, Feb 27  -----N/A-----        N/A
KIDD   First Years           Fri, Feb 27  -----N/A-----        N/A
FS     Four Seasons Hotels   Fri, Feb 27  Before the Bell     0.25
IART   Integra LifeSciences  Fri, Feb 27  Before the Bell     0.30
IPR    International Power   Fri, Feb 27  Before the Bell      N/A
INGN   Introgen Therapeutics Fri, Feb 27  -----N/A-----      -0.35
LOJN   LoJack                Fri, Feb 27  Before the Bell     0.15
MED.F  Mediclin AG           Fri, Feb 27  -----N/A-----        N/A
PSS    PAYLESS SHOESOURCE    Fri, Feb 27  -----N/A-----      -0.32
PNY    Piedmont Natural Gas  Fri, Feb 27  -----N/A-----       1.80
RANKY  Rank Group Plc.       Fri, Feb 27  Before the Bell      N/A
RY     ROYAL BK CDA MONTREAL Fri, Feb 27  -----N/A-----        N/A
TWI    Titan International   Fri, Feb 27  -----N/A-----      -0.47
WPPGY  WPP Group PLC         Fri, Feb 27  Before the Bell     1.18

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

Symbol  Co Name              Ratio    Payable     Executable

CCBI    Commercial Capital Bancorp4:3      Feb  20th   Feb  23rd
SLFI    Sterling Finl Corp        5:4      Feb  20th   Feb  23rd
NATI    National Instruments      3:2      Feb  20th   Feb  23rd
ACV     Alberto-Culver Co         3:2      Feb  20th   Feb  23rd
AMG     Affliated Managers Group  3:2      Feb  24th   Feb  25th
SAFM    Sanderson Farms, Inc      3:2      Feb  26th   Feb  27th
ETN     Eaton Corp                2:1      Feb  27th   Mar   1st
CNI     Canadian National Railway 3:2      Feb  27th   Mar   1st
AME     AMETEK Inc                2:1      Feb  27th   Mar   1st
HCP     Hlth Care Prop Investors  2:1      Mar   1st   Mar   2nd
SJW     SJW Corp                  3:1      Mar   1st   Mar   2nd
FWFC    Washington FinancialCorp  5:4      Mar   1st   Mar   2nd
AVP     Avon Products Inc         2:1      Mar   1st   Mar   2nd
HCSG    Healthcare Services       3:2      Mar   1st   Mar   2nd
POG     Patina Oil & Gas Corp     2:1      Mar   3rd   Mar   4th
TRMB    Trimble                   3:2      Mar   4th   Mar   5th
CLFC    Center Financial Corp     2:1      Mar   5th   Mar   8th
WGO     Winnebago                 2:1      Mar   5th   Mar   8th
SSNC    SS&C Technologies, Inc    3:2      Mar   5th   Mar   8th




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

Another busy week of economic reports with the Consumer
confidence, home sales, durable good orders, preliminary GDP,
Chicago PMI and revised Michigan Sentiment.  Plus we have several
federal reserve governors speaking this week.


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

----------------
Monday, 02/23/04
----------------
None


-----------------
Tuesday, 02/24/04
-----------------
Consumer Confidence (DM)   Feb  Forecast:    93.0  Previous:     96.8
Alan Greenspan makes an appearance

-------------------
Wednesday, 02/25/04
-------------------
Existing Home Sales (BB)   Jan  Forecast:   6.45M  Previous:    6.47M
Alan Greenspan speaks on economic outlook
Fed Governor Poole speaks in N.Carolina

------------------
Thursday, 02/26/04
------------------
Initial Claims (BB)      02/21  Forecast:    347K  Previous:     344K
Durable Orders (BB)        Jan  Forecast:    1.4%  Previous:     0.3%
Help-Wanted Index (DM)     Jan  Forecast:      39  Previous:       38
New Home Sales (DM)        Jan  Forecast:   1095K  Previous:    1060K
Bernanke speaks in Washington

----------------
Friday, 02/27/04
----------------
GDP-Prel. (BB)              Q4  Forecast:    3.8%  Previous:     4.0%
Chain Deflator-Prel. (BB)   Q4  Forecast:    1.1%  Previous:     1.0%
Mich Sentiment-Rev. (DM)   Feb  Forecast:    93.8  Previous:     93.1
Chicago PMI (DM)           Feb  Forecast:    63.5  Previous:     65.9


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


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

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

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

TOT     Total Sa (ADS)             92.00    +0.78
DEO     Diageo Plc (ADS)           55.21    +0.76
GS      Goldman Sachs Group Inc   106.71    +0.94
BLS     Bellsouth Corp             27.96    +0.56
KMB     Kimberly Clark Corp        63.04    +1.12


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

None


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

DB      Deutsche Bank Ag           89.01    +1.32
HSY     Hershey Foods Corp         83.54    +3.38
DF      Dean Foods Company         34.94    +1.44
CTXS    Citrix Systems Inc         20.57    +1.31


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

EON     E. On Ag (Ads)             65.87    -1.88
BAY     Bayer Aktien               28.65    -1.16
TV      Grupo Telecisa Sa Gdr      42.65    -1.80
UVN     Univision Communications   34.67    -1.67
UHS     Universal Health Svcs B    53.85    -1.33


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

TEF     Telefonica Sa              49.38    -1.20
CCE     Coca-Cola Enterprises      23.37    -0.42
DIA     Diamonds Trust            106.61    -0.49


=================================================================
To stop receiving this PremierInvestor.net Newsletter,
send email to Contact Support
=================================================================
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

*****************************************************************
ADVERTISING INFORMATION

For more information on advertising in PremierInvestor.net
Newsletter, or any Premier Investor Network newsletter please
contact Contact Support.

*****************************************************************


Copyright (c) 2001-2004  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.

DISCLAIMER

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

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

To ensure you continue to receive email from Option Investor please add "support@optioninvestor.com"

Option Investor Inc
PO Box 630350
Littleton, CO 80163

E-Mail Format Newsletter Archives