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PremierInvestor.net Newsletter                   Monday 03-01-2004
                                                    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:  March Opens Bullish
Watch List:   MACR, SNDK, BBY, JPM

===============================================================
MARKET WRAP  (view in courier font for table alignment)
===============================================================
     03-01-2004            High     Low     Volume Advance/Decline
DJIA    10678.14 + 94.22 10695.55 10582.22 1.76 bln   2182/ 665
NASDAQ   2057.80 + 27.98  2057.80  2032.64 1.68 bln   2091/1025
S&P 100   569.43 +  4.89   570.18   564.54   Totals   4273/1690
S&P 500  1155.97 + 11.03  1157.48  1144.94
RUS 2000  594.77 +  9.21   594.77   585.56
DJ TRANS 2916.61 + 14.42  2916.61  2886.89
VIX        14.44 -  0.11    15.05    14.40
VXO        14.18 -  0.58    14.94    14.15
VXN        22.54 -  0.30    24.02    22.54
Total Volume 3,862M
Total UpVol  3,086M
Total DnVol    709M
52wk Highs     839
52wk Lows       15
TRIN          0.69
PUT/CALL      0.74
===============================================================

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

March Opens Bullish
by James Brown

Investors came back from the weekend in a buying mood and sent
the Dow to one of its best gains in 7 weeks and the NASDAQ above
short-term resistance at 2050.  Fueling the market-wide rally was
the ISM index that reported growth in the manufacturing sector
for the 10th month in a row.  The markets were also encouraged by
a stronger employment component in the ISM as they look forward
toward this Friday's employment report.  Even the semiconductor
index overcame early losses due to an Intel downgrade and closed
higher with a 2% gain.

According to the Stock Traders Almanac the first trading day in
March has been up 6 out of the last 8 years.  We can now scratch
another point in the up column.  The Dow Jones Industrials added
94 points to close at 10,678.  The NASDAQ surged nearly 28 points
to 2057 and the S&P 500 added 11 points to close at 1155.  The
rally was very wide spread with every major index closing higher
save for the BTK biotech index, which lost 0.07%.  Buying
interest was very strong in homebuilders, airlines, oil and gas,
semiconductors and retail stocks.

Global markets were generally positive as well.  The Japanese
NIKKEI added another 229 points on top of Friday's 2.1% gain to
close at 11,271 - a new twenty-month high for the index.  The
Chinese Hang Seng added 11 points to close at 13,918.  European
stocks were higher as the dollar added 0.4% against the euro.
The British FTSE jumped almost 45 points to 4,537 and the German
DAX added 36 to 4054.  The gain in the dollar puts the brakes on
gold today.  Gold futures had rallied above $400 an ounce earlier
in the session but couldn't hold it and closed at $399.60 an
ounce (+2.80 for the day).

Gold wasn't the only commodity making a move today.  Platinum
rallied to $902 fell back to $895 and then rallied again in the
afternoon to close up $18.70 to $906.80 an ounce - a twenty-four
year high.  Silver broke above the $7.00 level intraday and
closed up 3.4% or 23 cents to $6.945 an ounce.  This was the best
level since February 1998 for the metal.  Copper surged another
3.9% or 5.25 cents a pound to $1.3985.  This is an eight-year
high for the metal and helped drive shares of Phelps Dodge (PD) a
copper miner to new all-time highs at $89.81 (+4.11% today).

Not to be out done by the metals crude oil rose 70 cents to
$36.86 a barrel, the highest since its pre-Iraq war spike in
March 2003.  Normally when crude prices trade above $30 a barrel
it's tough for OPEC to keep its members from pumping more than
their agreed to quotas but oil has risen more than $4 a barrel
since their last meeting in February where they agreed to reduce
their quotas another 4% starting in April.  I've mentioned it
before but it's amazing that the economy has been able to absorb
this sort of increase.  The rising cost of oil affects numerous
sectors from manufacturing to transports.  I'm honestly surprised
that the airlines whose profits are directly affected by fuel
costs have been able to trade sideways with oil skyrocketing.  It
won't be long and consumers are going to feel the sting of higher
oil prices at the pump and that will weigh on retail sales and
consumer confidence.

Market internals were very bullish today and bode well for the
strength in this rally.  Advancing stocks outnumbered losers 3 to
1 on the NYSE and 2 to 1 on the NASDAQ.  New highs surged to 645
versus 11 new lows between the two exchanges.  One of the most
bullish internals is how up volume sprinted past down volume by
more than 4-to-1 on both exchanges.

The daily chart for the Dow Jones Industrials looks pretty
encouraging with its short-term oscillators (RSI and stochastics)
curling higher from oversold.  We could see the index challenge
resistance at 10,750 soon.  The rally in the NASDAQ was enough to
push the Composite back above its simple 50-dma and its
technicals suggest we could see a run toward resistance in the
2090 range.

Chart of the DJIA:



Chart of the NASDAQ Composite:



The single biggest factor in today's rally was probably the ISM
index.  Economists had been expecting a dip to 62.1% from
January's 20-year high at 63.6%.  Remember that readings over 50
indicate growth and expansion.  The headline number was worse
than expected at 61.4% but investors cheered anyway.  February's
ISM marked the 10th month in a row for an expanding manufacturing
sector and the fourth month in a row for a reading over 60.  The
New Orders component slipped to 66.4 from 71.1 and prices paid
rose to 81.5 from 75.5 but the component that drew the most
excitement was the employment index component.  Manufacturing
employment rose to 56.3% in February from 52.9% in January.  This
was the best reading in 16 years for the employment component and
sparked renewed enthusiasm for this Friday's unemployment/jobs
report.  Currently the forecast on Friday is for unemployment to
hold steady at 5.6% while the economy is expected to add 125,000
new jobs last month.

The ISM wasn't the only economic report out today.  The U.S.
Commerce Department also released figures for January
construction spending and personal income and spending numbers.
Construction spending fell 0.3% to an annual rate of $931.2
billion, its first decline in eight months.  The decline was lead
by a 0.8% drop in business construction as residential
construction spending remained strong.  Meanwhile personal
spending rose 0.5% in January, which was inline with estimates.
Personal income rose 0.2%, which was below estimates.

Monday's biggest story stock was Sepracor (SEPR).  Before this
morning's opening bell SEPR announced that it has received a
conditional "approvable" letter from the FDA for its insomnia
treatment called Estorra.  While it is unknown what sort of
conditions the FDA set for SEPR to market its new drug the
company did say that additional patient testing would not be
needed.  SEPR now plans to ramp up its sales forces and marketing
costs to launch Estorra by mid-2004.  Analysts were very bullish
on the news with Deutsche Securities, Lehman Brothers, Morgan
Stanley and Standard & Poor's all upgrading the stock.  One
analyst expects that Estorra could grab 25% of the $2 billion
market currently lead by insomnia drugs Ambien and Sonata,
produced by Sanofi-Synthelabo (SNY) and King Pharmaceuticals
(KG), respectively.  Shares of SEPR gapped higher on the news and
continued to rally ending the session up 56% to $44.30.

Medimmune and AAIPharma were two drugs stocks also making
headlines today.  Unfortunately for shareholders in the two
companies their stocks went south.  Medimmune (MEDI) lost 6.18%
after lowering its earnings estimates due to increased R&D costs.
The company plans to increase R&D to 20% of sales but this will
reduce Q1 earnings to 40-43 cents a share, which is below
estimates of 54 cents per share.  MEDI expects full year 2004
earnings in the 50-60 cents a share range, which is well below
estimates of 94 cents.  Investors were also concerned that Wyeth
(WYE) may back out of its FluMist marketing partnership with MEDI
after a disappointing launch last year.  Meanwhile AAIPharma
(AAII) announced it had hired an independent auditor to
investigate "sales abnormalities" in its recently launched
Brethine and Darvocet drugs.  Brethine is an asthma treatment and
Darvocet is a painkiller.  AAII withdrew their 2004 earnings
guidance given the ongoing investigation and S&P lowered their
credit rating on the stock.  Shares of AAII dropped 36% to close
at $9.77.

The big news for tech stocks this morning was a downgrade for
both Intel (INTC) and its rival Advanced Micro Devices (AMD).  A
J.P. Morgan analyst downgraded Intel from "over weight" to
"neutral" over concerns for notebook PC sales and product delays.
Intel will take center stage on Thursday evening this week with
its mid-quarter update but the JPMorgan analyst does not expect
Intel to raise guidance for the first time in nearly a year.  JPM
also downgraded AMD from "neutral" to "under weight".  Shares of
AMD recouped most of its losses but still closed down 11 cents to
$14.89.  INTC was stronger and added 1.67% or 49 cents to close
at $29.69.  Contributing to strength in the chip sector was news
from the Semiconductor Industry Association (SIA) who reported
that January's global chip sales rose 27% over a year ago period
to $15.6 billion.  This was a 2.4% decline from December levels
but the pull back was expected and SIA stands by their 2004
forecasts for 19.4% sales growth.  Readers may remember that it
was just last week that the Gartner research group raised their
2004 semiconductor sales forecast to +23% growth.

Tomorrow will be interesting.  Bulls will be looking for some
follow through on today's rally.  After six weeks of sideways to
down trading we're probably overdue for the bounce anyway.
Tuesday we'll hear the auto and truck sales numbers but most
investors will be focused on Wednesday's ISM services index and
the Fed's Beige Book report.  Overall traders sound pretty
confident as I keep hearing comments about what a great
environment this is for stocks with low interest rates, rising
earnings and a recovery economy.  Or if you prefer a little
Greenspeak we can call it a "vigorous expansion".


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

Macromedia Inc. - MACR - close: 19.85 change: -0.59

WHAT TO WATCH: Trading in an ever tightening consolidation band
for the past several months, MACR has begun its next downward
leg, reversing from the descending trendline connecting it's
highs of the past few months on Friday.  That downward move
picked up steam on Monday, with volume clearly on the rise.  Look
for price to continue down until reaching support near the $17.50
level.  Entries near current levels look good (although another
rejection below $21 would be better), but be sure to use a stop
just over the 200-dma in case of a bullish break from the
consolidation pattern.

Chart=


---

Sandisk Corp. - SNDK - close: 28.30 change: +2.88

WHAT TO WATCH: Is the long and persistent downtrend in shares of
SNDK finally coming to an end?  The stock appears to have put in
a double bottom near $24, confirmed by today's breakout over the
$27.50 level.  The next obstacle to clear is near-term resistance
at the converged 50/200-dmas.  Once through that barrier, SNDK
should be good to run back to test strong resistance near $35, so
we definitely want to use a trigger over the 200-dma.

Chart=


---

Best Buy Company - BBY - close: 54.19 change: +0.94

WHAT TO WATCH: The past few months have seen BBY trading in an
ever-narrowing consolidation range, with each low getting
successively higher, as the rallies continue to be turned back
from resistance near $55.  This time it looks like things could
be different and if the stock can break out over the bottom of
the early December gap ($55.50) we could be off to the races.
Use a trigger above that level and target a near-term move to
close the gap at $57.50, before continuing up to test the $60
level once again.

Chart=


---

JP Morgan Chase & Company - JPM - close: 41.53 change: +0.51

WHAT TO WATCH: In case you hadn't noticed, Financial stocks are
continuing to surge higher and JPM is no exception.  Finding
support at former resistance near $40 last week, the stock
vaulted higher into the weekend and completed its breakout with
Monday's surge over the $41.50 level for the first time since the
summer of 2001.  Look for continued bullishness to carry JPM up
to next resistance near $44 and quite possibly as high as $46 in
the weeks ahead.

Chart=


---

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

LEN $52.06 - Going along for the ride with the rest of the
Housing sector on Monday, LEN finally broke above its early
December highs to once again reach new all-time highs.  Entries
look good at this point either on a continued breakout over
$52.50 or on a pullback to confirm new support near $50.

AFFX $35.14 - Shares of AFFX have been on a strong bullish run
since the start of the year, but despite that extended condition,
the stock once again broke out to new recent highs and closed
over its 200-week moving average.  Look for continuation entries
on a pullback near $33 support and then ride the rally higher
towards next resistance near $38.50.

IDTI $17.40 - Although it has been lagging the rebound in the
overall NASDAQ, shares of IDTI have put in a pretty convincing
base near $16 over the past month and it looks like the rebound
is under way.  Use an entry trigger over the 50-dma and look for
the breakout to carry IDTI up near the $20 resistance level.


=================================================================
To stop receiving this PremierInvestor.net Newsletter,
send email to remove@PremierInvestor.net
=================================================================
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 advertising@PremierInvestor.net.

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


Copyright 2004  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.
PremierInvestor.net Newsletter                   Monday 03-01-2004
                                                    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 Loss Updates:   ANN, LIN, ARA, SPF, XMSR
Closed Plays:        None
Split Announcement:  UUU


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 Updates
==================================================================

ANN, raise stop from 42.99 to 43.50

LIN, raise stop from 32.00 to 32.75

ARA, raise stop from 33.50 to 34.50

SPF, raise stop from 47.50 to 49.99

XMSR, raise stop from $22.00 up to $23.00


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

None


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

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

UUU announces 4-for-3 split

This morning before the opening bell Universal Security
Instruments, Inc. (AMEX:UUU) announced a 4-for-3 stock split in
the form of a 33.3% stock dividend.

The dividend is payable on April 5th, 2004 to shareholders on
record as of March 15th.  Fractional shares will be paid in cash.


About the company:
UNIVERSAL SECURITY INSTRUMENTS, INC. (www.universalsecurity.com ),
founded in 1969, is a worldwide marketer of safety and security
products directly and through its 50%-owned Hong Kong joint
venture. (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

TOT     Total Sa (ADS)             93.90    +1.91
SC      Sgell transport & Trading  42.97    +0.88
RD      Royal Dutch Petrol         50.61    +1.02
NTT     Nippon Tel & Tel (ADS)     24.25    +0.97
MO      Altria Group Inc           58.18    +0.63

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

FON     Sprint FON Group           19.21    +1.48
CYTC    CYTYC Corporation          18.75    +2.26


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

TM      Toyota Motor Corp (ADS)    70.70    +1.57
E       Eni Spa (ADS)             101.34    +2.52
BF      BASF Ag (ADS)              54.92    +1.46
OXY     Occidental Petro Cp        46.43    +2.03
GIS     General Mills Inc          47.19    +1.21


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

HCA     HCA Inc                    41.20    -1.32
WPPGY   WPP Group Plc (ADR)        54.70    -1.41
UNP     Union Pacific Corp         62.51    -1.13
MEDI    Medimmune Inc              24.10    -1.59
HEW     Hewitt Associates          31.41    -1.14


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

CTXS    Citrix Systems Inc         20.74    -0.51
ANAT    American National Insur    92.29    -2.12

=================================================================
To stop receiving this PremierInvestor.net Newsletter,
send email to remove@PremierInvestor.net
=================================================================
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 advertising@PremierInvestor.net.

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

Copyright 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.

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