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Daily Newsletter, Tuesday, 03/02/2004

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PremierInvestor.net Newsletter                  Tuesday 03-02-2004
                                                    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:      Dollar Dominates
Watch List:       CAG, IGT, CEG, CMVT
Market Sentiment: Super Tuesday? Not on Wall Street

=================================================================
MARKET WRAP  (view in courier font for table alignment)
=================================================================
      03-02-2004           High     Low     Volume   Adv/Dcl
DJIA    10591.48 - 86.70 10678.36 10568.88 1.87 bln 1416/1807
NASDAQ   2039.66 - 18.10  2064.40  2039.66 1.87 bln 1236/1920
S&P 100   565.86 -  3.57   569.71   565.02   Totals 2652/3727
S&P 500  1149.10 -  6.87  1156.54  1147.31
W5000   11225.44 - 64.00 11297.80 11213.94
SOX       510.24 -  2.90   521.15   509.97
RUS 2000  591.06 -  3.71   596.22   590.96
DJ TRANS 2896.90 - 19.70  2923.86  2894.80
VIX        14.86 +  0.42    14.89    14.18
VXO (VIX-O)14.60 +  0.42    14.60    14.03
VXN        22.42 -  0.12    22.93    21.97
Total Volume 4,061M
Total UpVol  1,303M
Total DnVol  2,716M
Total Adv  3053
Total Dcl  4205
52wk Highs  705
52wk Lows    16
TRIN       1.36
NAZTRIN    1.35
PUT/CALL   0.71
=================================================================

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

Dollar Dominates

Greenspan must be irritable lately because every time he takes
the stage he takes aim at the status quo. The shot heard around
the world today sent the dollar to the largest one day gain
against the Euro ever. Those short the dollar were not happy
traders today. The ramifications from Greenspan's currency
talk reverberated through all the markets, stocks, bonds and
commodities.

Dow Chart - Daily


Nasdaq Chart - Daily



The economics today were mostly positive with Chain Store
Sales flat but up from last weeks -0.2% rate. The most
positive report was the Challenger Layoff Survey for
February. The headline number showed a -34% drop in layoffs
from the January level with only 77,250 in February. This
was the lowest level in five months but the recent average
is still in the 100,000 per month range. The level prior to
the recent recession was averaging only 50,000 per month.
The drop in the headline number was very encouraging. The
components showed the majority of the cuts were in the
food services, financial services and industrial goods and
layoffs in techs and telecom have dropped substantially.

This was a positive report but the Greenspan comments far
overshadowed the markets and economics were quickly forgotten.
Greenspan took aim at the huge amount of U.S. debt owned by
Japan and China and pulled the "gotcha" card out of his deck.
He said Japan owned $650B in treasuries and China $450B. He
said they bought these securities to keep their currency
inline with the dollar and maintain the current favorable
trade rates. Today, Greenspan said further intervention by
these countries was unsustainable at the current rates.
Eventually they would have to let the market forces work
and sell much of the debt they currently owned. This would
produce a stronger dollar and higher interest rates. Oops!

Suddenly the ever declining dollar was rebounding due to the
light at the end of the tunnel and those short the dollar
were scrambling to cover. Also helping support the dollar
was rumors of a ECB rate cut in the wings. This would remove
another reason not to own the dollar and helped to provide
even more incentive to cover. The dollar rose nearly +2%
against the Euro and it was the biggest one day gain since
the Euro began. The Euro fell to a two month low against
the dollar. Ironically a rising dollar reduces the need
for Japan and China to buy more treasury debt and that
also reduces the demand for debt paper.

On the bond front treasuries plummeted on the prospect of
less buying from Japan and China and yields rocketed. The
ten-year yields soared to close at 4.05% from the 3.94% low
on Monday. With the prospect of a strong dollar returning
equities saw some serious sell programs as funds lightened
the load on interest sensitive issues and techs. The banking
sector saw some heavy selling as did some of the home builders.

In the question and answer session Greenspan was asked
directly about the coming Fed rate policy. He responded with
a grin that "we have said repeatedly that the current policy
is accommodative and eventually we will be forced to remove
that accommodation." His elaboration to that initial reply
was a clear warning that the Fed patience may be wearing
thin and there were rate hikes in the future. He did not
indicate how far in the future and it is likely several
more months or even as long as next year. He bluntly stated
that hikes were coming to put the bond market on notice that
the honeymoon was not going to last forever. Nobody expected
it to but the recent list of weaker than expected economic
reports had more analysts going on air to suggest the Fed was
on hold until 2005. Greenspan cannot let that thought process
continue. He has to keep the markets off balance to avoid
a disaster should something unexpected come up. He has to
keep the markets always on the edge to prevent traders from
loading up portfolios with lopsided rate risk.

The equities market was faced with the potential for higher
rates sooner than expected and possibly inside the six month
window and some institutions decided to take profits. The
market typically discounts all events for six months in
advance. With the general outlook of no rate cuts until 2005
there was little rate risk built into the next six months of
earnings expectations. What happened today was the addition
of some rate risk back into the current expectations.

Another problem weighing on the markets is the price of oil.
On Monday it hit the $37 level and closed today at $36.70.
It is normally reported that every $1 increase in the price
of oil costs U.S. consumers around $7 billion a year. Most
budget estimates assume a historical average oil price in
the $22-$25 range. We are currently $12 over that range and
that is an $84 billion hit to our economy. Obviously it will
hurt companies that depend on oil much more than those who
don't but the end result is the U.S. consumer will end up
footing the bill and that is real cash out of our pockets.
This problem has been mostly ignored for the last couple
months but the closer we get to $40 the more press it is
going to get.

Other commodities are also shooting through the roof. Copper
is exploding, platinum just hit a 40 year high and even
soybeans have been hitting daily contract highs. Prices for
goods made with these raw materials have to rise to cover
the increased costs. Again, these costs will be passed on
to consumers but in a weak economy with no pricing power
there has to be some earnings pressure. Corn prices just
rose to a six year high and this is pressuring the livestock
industry to the point where the little guys are beginning
to give up. Hogs are currently trading for $45 per cwt and
it costs over $42 to produce them. In 1998 hogs were selling
for $8 per cwt. Corn is up +50% per bushel from last year
and soymeal is up +57% over last year. The bottom line for
me is that the cost of everything is spiraling up but the
pricing power of the producer has not yet returned. This
suggests that earnings six months from now may suffer.

I got sidetracked on this thought while discussing oil and
its pressure on stock prices but there are broader problems
in our future. Fortunately the drop in the Euro and the gain
in the dollar had a depressing impact to commodities today.
It seems hedge funds had been buying commodities to hedge
the falling dollar and the trades started coming unwound.
Using a falling dollar to buy a rising commodity like gold,
oil or soybeans makes sense as long as the divergence
continues. Once the dollar begins to rise the divergence
collapses. The CRB fell -3.78 today as 14 of its 17
component commodities dropped on the news. The biggest
losers were cotton, platinum, silver and soybeans which
fell -3.24%. Obviously there is a mixed message here and
it may take sometime for the stock market to figure it out.

The fallout from all the currency gyrations was a Dow that
gave back nearly all of Monday's gains with a -86 point loss.
What was so promising near 10700 on Monday evaporated and
knocked the index back to support at 10580. We actually
came very close to the 50dma currently at 10533. For a few
minutes I thought the dip to 10568 was going to hold and be
close enough for a test of that average but another bout of
selling at the close killed the afternoon rebound. The
negative close across all the averages sets up another
potential retest of that average at tomorrow's open.

The Nasdaq traded up in early trading to a high of 2064 and
appeared determined to rescue the Dow from its weakness. The
SOX helped support the Nasdaq at the open by quickly adding
points to yesterday's gains. Unfortunately the Greenspan
currency talk and the prospect of higher rates was bad news
for tech stocks and the bottom fell out quickly. Once support
at 2050 was broken it never recovered. The Nasdaq did not
give up all its gains from Monday but the close was very
negative with concentrated selling. XLNX and STX provided
mid quarter updates after the close and traders were not
happy with either. The Nasdaq closed back under its 50dma
once again and we are faced with the potential for another
retest of the bottom of our range at 2000. I hate it, you
hate it but it is a fact of life that Greenspeak ruined a
perfectly good rally once again.

The best thing I can say about Tuesday is that the Russell
and SOX did not sell off to the same extent as the Nasdaq
and Dow. There were buyers taking advantage of the dips and
they held the Russell well above its recent support and to
only a -3.71 loss for the day. Were it not for the selling
right at the close the loss would have been less than two
points. The Russell is +12 points above its 50dma and it
not in danger of a serious drop unless conditions change
drastically.

SOX Chart -Daily


Russell-2000 Chart - Daily




The SOX gained nearly +12 points on Monday and gave back
only -2.87 today. Considering the market this is remarkable.
At one point today the SOX was well above its 50dma at 517
and was the strongest index on the board. The SOX closed
-11 points off its highs but nearly flat for the day. On
Wednesday it might not be so strong. The XLNX and STX
updates were not exciting and chip stocks sold off slightly
in after hours. The good news and we hope it is good news
is the Intel update on Thursday night. This normally
provides a market boost in advance and sometimes after
the update. Many times it is the trigger for the quarterly
earnings run to begin. If there was ever a quarter where
we needed Intel to produce a bounce this is it. Should the
SOX open down tomorrow the next real support is 507 and the
100dma and then horizontal support at 500.

Today the Wilshire 5000, the broadest measure of the
market, came within three points of a new post 9/11 high.
The Wilshire has struggled to shake off the Dow anchor
for two months and today's attempt was the highest level
since Feb-19th hit 11302 and the current high. On the
surface I feel this is the best indication that a rally
was in progress and a breakout imminent. How the Greenspan
speech will eventually impact the indexes remains to be
seen.

Wilshire-5000 Chart - Daily



We all know that the first reaction is the worst and is
typically a knee jerk reaction and not necessarily the real
direction for the market. Unfortunately we have a Fed meeting
on March 16th and the scuttlebutt will be flowing freely for
the next two weeks. Real worry will be absent because the
level of new jobs has yet to rise high enough for the Fed
to act. However that will not keep traders from being
nervous until the meeting statement is read.

Wednesday morning we will get the ISM Services report and
while no surprises are expected we can not afford to be
complacent. The regular ISM on Monday fell slightly but
the rising employment index was the key to the Monday
bounce. In the ISM Services index the employment component
has fallen the last two months. This does not set a good
precedent for tomorrow considering the headline number is
already expected to drop a couple points.

The rest of the week rests on the Intel update Thursday
night and the Employment Report on Friday morning. There
is no real whisper number for the Jobs report this month
and the official estimate of +125,000 jobs is pretty
much what is expected. Analysts have been so wrong over
the last couple months that they are afraid to second
guess the announcement. This sets up the Thursday close
and Friday open as very volatile sessions. On Thursday
we will have fear of both Intel and Jobs going into the
close and we could see some weakness. On Friday morning
we will have reaction to both and hopefully both will be
positive. That could produce a significant relief rally.

The risk here is the XLNX update tonight. They said revenue
would be up +9% to +10% for the quarter which was basically
a raising of the lower end of the range. It was an upgrade
from the +7% to +10% range they had previously given. The
lack of material improvement did not excite traders. The
stock was down -3% in after hours. This is my greatest
fear about Intel. If they just affirm guidance the street
will not be pleased. If they raise the bottom end only
slightly the street will not be pleased. There is a lot
of risk and very little expected reward. Seagate, STX,
also updated guidance tonight and they said first quarter
disk drive orders were weaker than expected. They also
expected first quarter units to decline by 5 to 6 million
units. STX primarily makes disk drives for desktop PCs
and a drop of five million desktop PCs would be drastic
for Intel's projections. Obviously we hope somebody else
got the business such as Maxtor and this is just a Seagate
problem but until Intel's update we do not have a clue.
Remember, Intel was already downgraded by JPM based on
channel checks showing a drop in notebook sales. Either
way Thursday night is going to be interesting.

So, where are we going tomorrow? That is the $64 question
tonight and I am afraid I do not have a satisfactory answer.
With the STX/XLNX guidance we could start with a negative
bias for techs. With the ISM Services that bias could be
erased or enhanced depending on the employment component.
I would like to think the 2020-2030 level would hold on
the Nasdaq but it depends on the SOX and what traders
decide to do before Thursday night. Either way I would
expect 2000 to hold unless disaster strikes.

On the Dow we are entering a congestion zone between 10620
and 10550. The 10550 level should hold especially as the
50dma at 10533 is rising to support it. I am expecting
500 to hold on the SOX and by extension 580 to hold on
the Russell. When I say hold I am thinking about Wednesday.
Until we see what fallout we have tomorrow from the bonds
and techs it will be impossible to predict the rest of the
week. I am still in buy the dip mode and while I would
love to see another retest of Nasdaq 2000 to pickup one
last bargain I would rather not face the possibility that
a retest may not hold. I start getting nervous when we
near that level. I feel like our ace in the hole is the
50dma on the Dow. Once that is hit it could act as an
electric fence and repel the average back higher. It has
held every test since April-2003 and while that should
comfort me it actually worries me. Eventually it will
fail and I just hope this is not that test.

Technically nothing has changed. We are still trading in
the same range we have seen for the last six weeks (10450-
10700 2000/2100) and until that range breaks we just need
to keep buying the dips and selling the highs.

Enter Passively, Exit Aggressively.

Jim Brown
Editor


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

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

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


ConAgra Foods Inc. - CAG - close: 27.44 change: +0.14

WHAT TO WATCH: Achieving a solid near-term breakout over $26.50
resistance, CAG looks poised to deliver a longer-term breakout as
well.  There's more resistance in the $28.00-28.25 area, but once
through that barrier the stock appears clear to run to $30 and
quite possibly up to the $32 level.  Use a trigger over $28.25.




---

International Game Technology - IGT - close: 42.65 change: +1.06

WHAT TO WATCH: We've looked at IGT several times lately in
anticipation of a breakout.  Over the past 3 days the stock has
broken out in fine fashion and traders that took advantage of the
trigger over the prior highs are sitting pretty.  Based on the
strong volume on this breakout, it looks significant.  Look for a
near-term pullback to the 10-dma to provide secondary entries
ahead of a continued push higher.




---

Constellation Energy Group Inc - CEG - close: 40.60 change: +0.44

WHAT TO WATCH: Repeating a pattern that is becoming very
familiar, CEG has been consolidating just under resistance at its
January highs for the past several weeks and the stock now looks
poised to break out.  Use a trigger over $40.75 and target a move
towards $45.




---

Comverse Technology Inc. - CMVT - close: 20.41 change: +0.47

WHAT TO WATCH: The $20 level has been a persistent barrier of
resistance for CMVT since mid-January, when the stock tested it
for the first time since early 2002.  Breaking out over that
level on expanding volume today certainly looks bullish and we're
expecting a continued rally to the $23-24 area, as the stock
continues to work higher in its rising channel.  Entries look
most favorable on a pullback to test broken resistance in the
$19.50-20.00 area.




---

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

VZ $39.46 - Following the cross of the 50-dma over the 200-dma
last month, shares of VZ are certainly looking more bullish and
today's breakout over the January highs looks good, especially
coming on strong volume.  As strong as the stock looks though,
there's looming resistance just over $41.  That means the best
entries will come on another pullback near the $38 level that
provided support for today's breakout.  Target a longer-term
bullish move to the $42-43 area.

MVSN $18.33 - Clear proof that not everything is looking bullish,
MVSN is in the process of a serious breakdown, smashing through
the $19.50 support level on huge volume on Tuesday.  This brings
the next level of support at $17.50 into play.  Use a trigger
below that level and target a drop to strong support near $14.

BCC $37.41 - Monday was a day full of breakouts and BCC
definitely joined the party, pushing through it's $34.50
resistance to set a new 52-week high.  Today's broad market
weakness has the stock stumbling a bit and it looks like we'll
get a second opportunity to play.  Target entries on a dip and
rebound from the $33.50-34.00 are and then look for a rally up to
strong resistance near $37.50.


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

Super Tuesday? Not on Wall Street
- J. Brown

In a very disappointing session the Industrials erased most of
Monday's gains and the NASDAQ pulled back significantly closing
back under the 2050 level and its simple 50-dma.  On Monday the
markets felt pretty confident with strong internals and very
strong up volume numbers inspired by the ISM report.  What was
truly encouraging was the ISM's manufacturing employment
component, which signaled job growth and sparked excitement over
this Friday's  unemployment/jobs report.  Now suddenly there were
comments today that a strong jobs report might give the Fed a
reason to raise rates sooner than expected.

The reversal today is certainly discouraging but it did not match
the bullish enthusiasm from Monday.  Declining stocks outnumbered
advancers 16.5 to 12 on the NYSE and 19 to 12 on the NASDAQ.
Down volume was twice up volume across both exchanges.

Tomorrow's ISM services index and the Fed's Beige book report
will take center stage and likely drive market direction.  I
would expect the semiconductor sector to churn sideways in
anticipation of Intel's Thursday night mid-quarter update and
this could mute any big moves in the NASDAQ.


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

Market Averages

DJIA ($INDU)

52-week High: 10753
52-week Low :  7416
Current     : 10591

Moving Averages:
(Simple)

 10-dma: 10616
 50-dma: 10533
200-dma:  9688



S&P 500 ($SPX)

52-week High: 1158
52-week Low :  788
Current     : 1149

Moving Averages:
(Simple)

 10-dma: 1146
 50-dma: 1131
200-dma: 1042



Nasdaq-100 ($NDX)

52-week High: 1559
52-week Low :  946
Current     : 1473

Moving Averages:
(Simple)

 10-dma: 1478
 50-dma: 1492
200-dma: 1360


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

True to form the VIX and VXO turned higher with the market's
weakness today but oddly the VXN churned sideways.

CBOE Market Volatility Index (VIX) = 14.86 +0.42
CBOE Mkt Volatility old VIX  (VXO) = 14.60 +0.42
Nasdaq Volatility Index (VXN)      = 22.42 -0.12

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

          Put/Call Ratio  Call Volume   Put Volume

Total          0.71        699,614       495,954
Equity Only    0.51        597,318       305,438
OEX            0.91         24,720        22,494
QQQ            1.93         37,266        71,796


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

Bullish Percent Data

           Current   Change   Status
NYSE          76.1    + 0     Bull Confirmed
NASDAQ-100    61.0    + 0     Bear Confirmed
Dow Indust.   86.7    + 0     Bull Confirmed
S&P 500       85.6    + 0     Bull Confirmed
S&P 100       86.0    - 1     Bull Confirmed


Bullish percent measures the number of stocks in an index
currently trading on a buy signal on their point and figure
chart.  Readings above 70 are considered overbought, and readings
below 30 are considered oversold.

Bull Confirmed  - Aggressively long
Bull Alert      - Cautiously long
Bull Correction - Pause or pullback in upward trend
Bear Alert      - Take defensive action if long
Bear Confirmed  - High risk if long, good conditions for shorting
Bear Correction - Pause or rebound in downtrend


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

 5-dma: 1.01
10-dma: 1.12
21-dma: 1.04
55-dma: 0.98


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    1196      1160
Decliners    1653      1904

New Highs     252       151
New Lows        7         6

Up Volume    648M      577M
Down Vol.   1154M     1255M

Total Vol.  1820M     1849M
M = millions


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

Commitments Of Traders Report: 02/24/04

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

No change for commercial traders.  They remain hedged either
direction.  Small traders haven't made many changes either
and remain bullish.


Commercials   Long      Short      Net     % Of OI
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%
02/24/04      417,490   416,502       988     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
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%
02/24/04      141,559    85,171    56,388    24.9%

Most bearish reading of the year:  (1,657)- 5/27/03
Most bullish reading of the year: 114,510 - 3/26/02


E-MINI S&P 500

We're seeing a lot more action in the e-minis than the large
contracts above.  Commercial traders are bearish but have
become slightly less so over the last week.  As is typical
the small traders moved the opposite direction and while bullish
became less so.


Commercials   Long      Short      Net     % Of OI
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%)
02/24/04      320,425   387,255    (66,830)  ( 9.4%)

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
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%
02/24/04     129,894     63,524    66,370    34.3%

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


NASDAQ-100

Not much change for the commercial traders in the NDX futures
this week but we are seeing a change in the small traders'
positions.  There appears to be a bullish reversal with a large
shift from shorts to longs.  Of course a contrarian will note
that the small trader is normally wrong so this could be a
bearish development for the markets.


Commercials   Long      Short      Net     % of OI
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%
02/24/04       47,266     40,452     6,814    7.8%

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
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%)
02/24/04       12,388     7,310     5,078    25.8%

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

DOW JONES INDUSTRIAL

Hmm... commercial traders have become more bullish on the
Dow in the last week.  Not much change from the little guys.


Commercials   Long      Short      Net     % of OI
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%
02/24/04       27,176    13,918   13,258      32.3%

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
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%)
02/24/04        6,509    14,919   (8,410)   (39.2%)

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

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


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

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

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Copyright ) 2003  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.
PremierInvestor.net Newsletter                  Tuesday 03-02-2004
                                                    section 2 of 2
Copyright (c) 2004, All rights reserved.
Redistribution in any form is strictly prohibited.

The entire newsletter is best viewed in COURIER 10 for alignment
=================================================================

Stop Adjustments: None
Stock Splits:     MVL

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


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

None


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

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

MVL announces 3-for-2 split with earnings

 Early this morning before the opening bell Marvel Enterprises
(NYSE:MVL) announced its Q4 earnings numbers and a 3-for-2 stock
split.  The company reported earnings of 18 cents a share, better
than estimates of 17 cents.  Revenues came in at $85.8 million,
which was well above analysts' estimates of 65.8 million for the
quarter.

The 3-for-2 split will be in the form of a stock dividend payable
on March 26th, 2004 to shareholders on record as of March 12th.

About the company:
With a library of over 4,700 proprietary characters, Marvel
Enterprises, Inc. is one of the world's most prominent character-
based entertainment companies. Marvel's operations are focused in
three areas: entertainment (Marvel Studios) and licensing, comic
book publishing and toys (Toy Biz). Marvel facilitates the
creation of entertainment projects, including feature films,
DVD/home video, video games and television based on its characters
and also licenses its characters for use in a wide range of
consumer products and services including apparel, collectibles,
snack foods and promotions. Marvel's characters and plot lines are
created by its comic book division which continues to expand its
leadership position in the U.S. and worldwide while also serving
as an invaluable source of intellectual property.
 (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

VZ      Verizon Communications     39.46     +0.76
SBC     SBC Communications         25.48     +1.23
BLS     Bellsouth Corp             28.81     +1.13
AET     Aetna Inc                  80.89     +0.52
KIM     Kimco Realty               48.50     +1.10
AVB     AvalonBay Communities      52.04     +0.84

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

ELN     Elan Corp                  17.28     +2.37
JUPM    JupiterMedia Corp          10.20     +1.13
ILE     Isolagen Inc                8.60     +1.05
PCYC    Pharmacyclics Inc          13.24     +1.80
NETM    Netmanage Inc              10.80     +1.47
MAMA    Mamma.com Inc              10.10     +6.05

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

HIT     Hitachi Ltd                69.50     +1.32
IGT     Intl Game Technology       42.66     +1.07
RIG     Transocean Inc             31.15     +1.19
HB      Hillenbrand Industries     69.20     +1.44
ACV     Alberto-Culver             43.60     +1.61
HSIC    Henry Schein Inc           73.97     +1.33
THX     Houston Exploration        40.01     +1.22

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

HBC     HSBC Holdings              78.78     -2.52
WFSI    WFS Financial              41.56     -2.39
SYNT    Syntel Inc                 26.23     -1.31
CWEI    Clayton Williams Energy    30.12     -3.72

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

NYB     New York Community         33.05     -1.80
SSNC    SS&C Technologies          45.78     -3.69
PBKS    Provident Bankshares       31.90     -1.06


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DISCLAIMER
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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 2003  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.

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