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Daily Newsletter, Thursday, 03/11/2004

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PremierInvestor.net Newsletter                 Thursday 03-11-2004
                                                    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:      Market Terror
Market Sentiment: Running for the 200-dma
Watch List:       LLL, BDK, KRON, WYE


=================================================================
MARKET WRAP  (view in courier font for table alignment)
=================================================================
      03-11-2004           High     Low     Volume   Adv/Dcl
DJIA    10128.38 -168.50 10321.41 10120.38 2.36 bln  756/2516
NASDAQ   1943.89 - 20.30  1982.58  1943.89 2.18 bln  876/2276
S&P 100   544.16 -  8.64   554.14   543.63   Totals 1632/4792
S&P 500  1106.79 - 17.10  1125.96  1105.87
W5000   10821.48 -157.90 11004.68 10814.88
SOX       473.84 -  2.50   487.19   473.61
RUS 2000  568.74 -  6.27   581.02   568.70
DJ TRANS 2796.00 +  7.50  2848.01  2783.48
VIX        20.67 +  2.00    20.69    17.63
VXO (VIX-O)21.71 +  2.91    21.71    18.35
VXN        26.58 +  0.53    26.68    25.48
Total Volume 5,006M
Total UpVol    918M
Total DnVol  3,969M
Total Adv  1869
Total Dcl  5430
52wk Highs  170
52wk Lows    46
NasTRIN    1.08
TRIN       2.41
PUT/CALL   1.20
=================================================================

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

Market Terror

The terrorist attack in Spain that killed 192 and injured
over 1400 bombed our markets as well. The indexes opened
down but well off the overnight reaction lows. After an
attempt to rally that lasted until after 2:00 bad news
sent them down again.

Dow Chart - daily


Nasdaq Chart - Daily



The second news blow came when Spain reported that a van
with explosives had been linked to the bombings and there
were Arabic tapes in the van with verses from the Koran.
Shortly after that sound bite Reuters broke a news story
from England saying Al Queda had claimed responsibility
for the bombing in a letter to a newspaper. The letter
reportedly claimed a similar attack was imminent in the
United States. Traders hit the sell button and the bottom
dropped out of the market at 2:30. American officials were
quick to point out that Al Qaeda does not normally claim
responsibility for attacks and suggested the letter was
bogus and designed to shift blame from the real suspects.
The markets did not care and fear became the motivator into
the close.

The morning economics did not help market sentiment with
Retail Sales coming in flat for February once autos were
removed. Department stores held their own but drug stores,
grocery, sporting goods and furniture stores all declined.
Rising energy prices were blamed for robbing consumers of
cash available for discretionary purchases.

Import prices rose +0.4% and export prices rose +0.6%.
Analysts said the falling dollar, higher commodity prices
and higher energy prices were blamed. Consumer goods
remained unchanged with autos and parts up +1.0%. This
was not a factor in today's market.

Jobless claims continued to fall at 341,000 and continuing
claims fell to a post-recession low of 3.032 million. This
is good news but it was overshadowed by the global events.
The very slow drop in claims continues to show there is
no pickup in hiring but as we all know jobs are a lagging
indicator in a recovery. At least that is what they keep
telling us as an excuse for no jobs. Greenspan said today
that jobs will pickup soon because he is continuing to
see increasing signs of a pickup in the economy. Somebody
get him a new speech.

It was not economics that tanked the markets today but the
terrorist attack. The markets actually rebounded off their
overnight lows when news of the bombing first hit. The
blame was first placed on the Basque separatist group, ETA,
and the markets shook off the news thinking it was an
internal matter for Spain. The Dow rallied back from the
morning low of 10228 by nearly +100 points to 10321 before
the van was found. That announcement knocked -55 points
off the index but it again rebounded when authorities said
there was nothing conclusive in the evidence. The news that
caused the implosion was the Al Qaeda letter claiming another
attack was imminent. "We bring the good news to Muslims of
the world that the expected 'Winds of Black Death' strike
against America is now in its final stage...90 percent
(ready) and God willing near," the letter said. The al-Quds
al-Arabi newspaper received similar letters from the same
brigade claiming responsibility on behalf of al Qaeda for
a November bombing of two synagogues in Turkey and the
August bombing of the U.N. headquarters in Baghdad. This
was the kiss of death for the struggling rebound. France
also announced they were raising the terrorist threat
level on all public transportation.

The damage to US markets was severe. The Dow had held above
the 100dma at 10218 all morning but after the Al Qaeda news
blew right through that level and barely blinked as it
passed 10200. Were it not for time expiring on the clock
we might have broken 10100 as well with the close at 10128.
This is a major blow to any bullish sentiment still remaining.
In four days the Dow has dropped over -500 points with -168
of those being lost today. Since the market high of 10753 on
Feb-19th the Dow has lost -5.8%. It has been 19 months since
we have had a 5% correction and we normally have 2-3 per
year.

The Nasdaq dropped nearly -40 points from the afternoon
high and closed at 1944 after the Al Qaeda news. This is
below all the averages except for the 200dma which is still
quite a ways off at 1873. However, since the Nasdaq high on
Jan-26th the Nasdaq has lost -209 points or -9.7% and is
very close to the benchmark -10% range. This is a huge
change in investor sentiment despite continued upgrades
to earnings estimates. The next major support is at 1900.

Now that we are out of our Jan/Feb trading range and have
broken all short term support where are we going? We have
officially lost the required five percent to be recognized
as a real dip and the Nasdaq is very close to -10%. In
theory we are due for a rebound. In practice we could
easily hit Dow 10000 and Nasdaq 1900 with any additional
negative news. Fears of another attack on U.S. soil sent
the VXO back to near 22 from its low of 14.09 last Friday.
This is a major fear reversal. It rose nearly three points
today alone.

Before I tackle the forecast there was some good news
today. Declining volume beat advancing volume better than
4:1. Decliners were 3:1 over advancers. Volume spiked to
over 5.0 billion shares and the biggest day since Jan-29th.
The majority of this volume came in the last hour and it
could be seen as a news washout. A potential capitulation
day when considering it came at the end of an already
oversold condition.

There was also some positive stock news, which was ignored
due to terrorist concerns. GE affirmed estimates today and
said they were continuing to see an increase in global
growth. GE fell -0.68 on the day but it failed to break
its 200dma. This is huge support on GE and it should be
very difficult to break without any major external event.
The addition of the $3.8 billion in new shares has been
weighing on GE but the 42 million shares traded today may
have put an end to that pressure.

Intel has already broken its 200dma from last weeks lowered
guidance but it closed right at strong support today at
$27 that dates back to September. Intel traded 98 million
shares but only fell -.23 cents. This could be a bottom
for Intel. Also at critical support levels is Microsoft
which closed at $25 and very strong support. MSFT traded
90 million shares and only fell -.28 cents. Dell actually
gained +.74 cents today and this was the third day of an
uptrend by Dell. It is back over $32 support. The SOX
turned in an amazing display of strength with a loss of
only -2.45 and a solid grip on the support at 475. Just
another indication that maybe we are too oversold.

SOX Chart - Daily



National Semi announced a $400 million stock buyback and
made positive comments about orders and margins for the
current quarter. Altera announced their mid quarter update
after the bell and said it expected revenue growth at the
high end of its previous estimates. Oracle reported earnings
after the bell and said software license growth was up +13%.
Yellow Roadway said first quarter business was booming and
the stock jumped +10% and helped keep the transportation
index in positive territory despite the broad market crash.
First call said earnings estimates for the first quarter
had climbed to +14.9% growth from +13.4% just a couple
weeks ago. Earnings are growing despite the worry over
the economy. Fannie Mae said rates have fallen so low
that they expected a fourth consecutive year of record
home sales and increased their estimates by +100,000
homes for the year. They said demand was so strong and
inventory so low that housing prices should rise +7.4%
in 2004 after a similar +7.5% gain in 2003. 30-year rates
dropped to 5.41% and the lowest since July-2003.

Good news was breaking out all over and many of the major
players are holding at strong resistance. The challenge
for the day was clearly terrorist related and it may have
been a market blessing in disguise. It forced us to lower
levels and flushed another billion shares of volume that
we probably would not have seen. Tomorrow is light on
economic reports with Business Inventories and Consumer
Sentiment. Inventories could be a challenge but it is not
expected to be a market mover. A positive surprise could
be a good sentiment boost. Unfortunately Consumer Sentiment
is likely to come in lower once again. The election mud
slinging on the economic outlook could again drop the
numbers. Fortunately this week's terror event, the market
drop, Intel guidance and the Jobs report all occurred after
the majority of polling took place. The next report is the
one to worry about.

Now back to the forecast. The potential is very good
for a strong move on Friday as opposed to a sideways
consolidation day. The more the press plays the official
doubt about the Al Qaeda letter the more it will be seen
as somebody trying to shift blame and a non event. The
markets are VERY oversold. -507 points for the Dow in
three days is completely out of character for the current
economic conditions.

The two options I see for Friday look like this. Depending
on the terror news coming out overnight we could see another
day of losses as weekend event risk looms large on investors
minds. One more strong decline could take the Dow closer to
10000 and the Nasdaq to 1900. Both of these levels are very
strong support. While this is a possibility I think it
would take some strong news from overseas to push us over
the edge.

The other option would be a rebound based on the lack of
any new negative news and the very oversold conditions.
While I would like to think this was the direction we will
go I have to be realistic. I thought today would be a
rebound day but the terror news killed that process after
lunch. Investors have to be thinking bargain hunting after
the drop on no real change in economics. It was just time
to rest. Once this weeks drop begin to accelerate it took
on a life of its own as they sometimes do and rapidly
overshot the expected targets. Just as the bulls headed
back into the market the terror news hit them in the face.
If you are thinking bargain hunting tonight then you are
also thinking about the weekend. Is there risk or not?
I vote no because people are more concentrated on work
days and make better terror targets. However my vote does
not count. This fear of weekend event risk could keep
traders from bargain shopping until Monday. This suggests
any rebound on Friday could be muted.

To get more specific I would expect a potential dip at
the open on any overseas news. I would expect the dip to
be bought depending on the severity of the news. Midday
could be flat as traders weigh their weekend risk. The
close could be interesting. Traders wanting to finish
dumping stocks to avoid the weekend and start with a
clean slate on Monday could be countered by strong short
covering from those wanting to lock in profits from the
big drop. Never a dull moment and never a clear answer.
Personally I would spend Friday looking for bargains and
wait for signs of strength on Monday to go buy them. Cash
is a position.

A week ago I was lamenting the fact we were trapped in a
trading range with no material movement. The first chart
below was one I showed last Thursday. Wish we were still
home on the range.

Dow Chart - 45 min


Dow Chart - 45 min



Enter Passively, Exit Aggressively.

Jim Brown
Editor


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

Running for the 200-dma
- J. Brown

Investor sentiment has turned sour pretty quickly this week.  The
terrorist bombings in Spain this morning have created an entire
new set of concerns that has traders running for the door to
capture profits before they're gone.  The Industrials appear
headed for a test of support at the 10,000 level, the NASDAQ
toward 1900 and the S&P 500 toward the 1100 mark.  Odds are that
at these round-number psychological levels we'll see a slow down
in the sell-off and give the indices a chance for an oversold
bounce.

This week's declines have sent several sectors careening through
support and almost everything appears headed for its simple 200-
dma.  One of the leaders in this sell-off is the Dow Transports,
which performed a beautiful failed rally under the 2850 mark and
closed under the 2800 level.  Its 200-dma isn't far away so the
Transports could find support near 2740.

Tech sectors like the GHA hardware index, the GSO software index,
the INX Internet index and the SOX semiconductor index are all
falling steadily toward their 200-dma's.  The DDX disk drive
index is already under its 200-dma while the NWX networking index
still has plenty of room left to fall.

The financial sector, which had been a bulwark of strength for
the markets, has finally succumbed to profit taking.  Both the
BKX banking, BIX banking and XBD broker-dealer indices have
fallen below their simple 50-dma's. Joining them in their flight
below the 50-dma is the IUX insurance index, which appears to
have painted a double-top in February and March.

One of the worst performers this week is the DRG drug index,
which has plummeted from the 340 level to its 200-dma near 325
(that's a big move for the DRG) in just four days.  So much for
investors returning to traditional defensive plays like drug
stocks.

One might have expected the defense sector to trade higher today
on the bombing news but not so.  The DFI is following the market
down four days in a row. Both General Dynamics and Northrop
Grumman have turned in very weak performances this month.  Of
course airline stocks took the brunt of the impact from the
terrorist event and dropped 3.41% on top of this week's earlier
losses.

The market internals have been very bearish with massive amounts
of decliners over advancers.  Today follows yesterday's numbers
with losers outnumbering winners 3-to-1 on both exchanges.  Down
volume has been excessive the last couple of days with down
volume 3-to-1 and even 6-to-1 (like today on the NYSE).  Total
volume was pretty heavy at more than 2.2 billion on each
exchange.


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

Market Averages

DJIA ($INDU)

52-week High: 10753
52-week Low :  7416
Current     : 10128

Moving Averages:
(Simple)

 10-dma: 10504
 50-dma: 10551
200-dma:  9753

S&P 500 ($SPX)

52-week High: 1163
52-week Low :  760
Current     : 1106

Moving Averages:
(Simple)

 10-dma: 1143
 50-dma: 1137
200-dma: 1049

Nasdaq-100 ($NDX)

52-week High: 1559
52-week Low :  946
Current     : 1402

Moving Averages:
(Simple)

 10-dma: 1455
 50-dma: 1493
200-dma: 1371


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

Volatility indices continue to soar for the second day in a row
suggesting this correction is "for real" this time.  They've all
broken their descending trendline of lower highs.

CBOE Market Volatility Index (VIX) = 20.67 +2.00
CBOE Mkt Volatility old VIX  (VXO) = 21.71 +2.91
Nasdaq Volatility Index (VXN)      = 26.58 +0.53

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

          Put/Call Ratio  Call Volume   Put Volume

Total          1.20        911,050     1,097,093
Equity Only    0.96        675,246       645,835
OEX            1.14         63,747        72.514
QQQ            5.88         38,151       224,452


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

Bullish Percent Data

           Current   Change   Status
NYSE          73.7    - 2     Bull Confirmed
NASDAQ-100    43.0    - 8     Bear Confirmed
Dow Indust.   80.0    - 6     Bull Correction
S&P 500       79.6    - 5     Bull Correction
S&P 100       84.0    - 3     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: 2.11
10-dma: 1.57
21-dma: 1.29
55-dma: 1.09


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     678       829
Decliners    2173      2233

New Highs      55        42
New Lows       14        19

Up Volume    312M      554M
Down Vol.   1984M     1562M

Total Vol.  2324M     2214M
M = millions


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

Commitments Of Traders Report: 03/02/04

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

In spite of a decrease in long positions by Commercial traders
they still remain relatively neutral on the large S&P contracts.
Small traders remain steadfastly bullish.


Commercials   Long      Short      Net     % Of OI
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%
03/02/04      411,932   418,936    (7,004)   (0.1%)

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
02/10/04      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%
03/02/04      148,383    84,135    64,248    27.6%

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

Commercials did put some money to use this last week and we
see an increase in long positions but they remain net bearish.
In contrast small traders reduced their longs and upped their
shorts but remain net bullish.


Commercials   Long      Short      Net     % Of OI
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%)
03/02/04      344,805   395,112    (50,307)  ( 6.8%)

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
02/10/04     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%
03/02/04     119,382     67,453    51,929    27.8%

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 here in Commercial traders' positions.
and the same can be said for the small traders.


Commercials   Long      Short      Net     % of OI
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%
03/02/04       49,959     41,059     8,900    9.8%

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
02/10/04        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%
03/02/04       11,605     7,128     4,477    23.9%

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

Commercial traders remain asleep in the Dow futures with
almost zero change and small traders are following suit.


Commercials   Long      Short      Net     % of OI
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%
03/02/04       27,594    14,166   13,428      32.2%

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
02/10/04        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%)
03/02/04        6,898    15,874   (8,976)   (39.4%)

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

Adobe Systems Inc. - LLL - close: 52.69 change: -0.91

WHAT TO WATCH: LLL has finished consolidating its initial drop
from the February highs and the consolidation is breaking to the
downside, with today's drop under the 50-dma and just barely
holding onto horizontal support at $52.50.  Use a trigger under
$52.25 and target a continued drop towards the 200-dma near $48.
Watch for potential support at $50 on the way down.




---

Black & Decker Corp. - BDK - close: 51.05 change: -1.45

WHAT TO WATCH: Completing its recent double top formation today,
BDK plunged through the 50-dma and took out the late February
lows on expanding volume.  While there is the possibility of
support appearing near $50, with the stock now showing bearish
Stochastics divergence, it looks like there's substantially more
downside in store.  Use a trigger below $51 and target a drop to
the 200-dma, which is near strong support at $46.




---

Kronos Inc. - KRON - close: 32.25 change: -1.48

WHAT TO WATCH: KRON has spent the past 8 months building a broad
topping formation, with support consistently being found in the
$33-34 area.  That support was shattered today, with the stock's
plunge through the bottom of the range.  It is unlikely that the
decline will continue without a bounce first, so using a failed
bounce below $34 (which should now be resistance) looks like a
great bearish entry.  Target a drop to $27 and possibly $25
support and use a stop just over the 30-dma.




---

Wyeth - WYE - close: 37.58 change: -0.89

WHAT TO WATCH: In defiance of the strength in the broad market
and even the DRG index in recent months, shares of WYE have been
posting one lower high after another.  The past month has seen
the stock continuing to decline and today's selloff down to key
support at $37.50 has the stock on the verge of a fresh
breakdown.  Use a trigger under $37.50 and look for a continued
decline to strong support near $32, near the lows from October of
2002.




---

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

RFMD $8.80 - In the wake of the mid-January selloff, shares of
RFMD have been treading water, using the 200-dma as support, as
the 50-dma has acted as resistance.  The 50-dma won the volley
today, as price broke below the 200-dma and the stock closed just
above key support.  Use a trigger at $8.50 and look for a
continued decline down to strong support near $7.

SANM $10.93 - Breaking down from its recent consolidation above
$12, SANM is really picking up some speed to the downside and the
bears have their sights firmly set on the 200-dma, just over $10.
That may turn out to be just a speed bump on the way to stronger
support in the $8-9 area though.  Use a trigger below today's low
and ride the stock as low as it will go.

GLW $11.02 - The bullish channel that has been supporting GLW for
the past many months finally broke to the downside on Thursday,
with volume surging over 22 million shares.  A failed test of the
bottom of the channel near $12 would be an ideal entry into the
reversal of this bullish trend.  Look for an initial decline down
to test the 200-dma, just over $10.


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DISCLAIMER
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Do not duplicate or redistribute in any form.





PremierInvestor.net Newsletter                 Thursday 03-11-2004
                                                    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:      ARO, CRDN


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

ARO announces 3-for-2 split

25 minutes after the market's closing bell Aeropostale, Inc.
(NYSE:ARO) announced that its Board of Directors has approved a 3-
for-2 stock split in the form of a stock dividend.

The distribution date (payable date) for the split is April 26th,
2004 for shareholders on record as of April 12th.  Post-split ARO
will have 56.9 million shares outstanding.

The company also raised its stock buyback program from $35 million
to $70 million.

About the company:
Aeropostale, Inc. is a mall-based specialty retailer of casual
apparel and accessories that targets both young women and young
men aged 11 to 20. The company provides customers with a selection
of high-quality, active-oriented, fashion basic merchandise in a
high-energy store environment. The company maintains complete
control over the proprietary brand by designing and sourcing all
of its own merchandise. Aeropostale products can be purchased only
in its stores, which sell Aeropostale merchandise exclusively.
The first Aeropostale store was opened in 1987. The company
currently operates 462 stores in 41 states.
 (Source: Company Press Release)

---

CRDN announces 3-for-2 split

This morning a couple of hours before the opening bell Ceradyne,
Inc. (NASDAQ:CRDN) announced that its Board of Directors had
approved a 3-for-2 stock split of its common stock in the form of
a 50% stock dividend.

The dividend will be payable (distributed) on April 7th, 2004 to
shareholders on record as of March 30th, 2004.  Fractional shares
resulting from the split will be paid in cash.  Post-split CRDN
will have 15.9 million shares outstanding.

About the company:
Ceradyne develops, manufactures and markets advanced technical
ceramic products and components for defense, industrial,
automotive/diesel and commercial applications.
 (Source: Company Press Release)


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

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

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

TK      Teekay Shipping Corp       64.82     +0.93
HOV     Hovnanian Enterprises      87.55     +0.55
RKY     Adolph Coors Co            66.50     +0.99
PRX     Pharmaceutical Resoureces  59.96     +0.60
ZQK     Quiksilver Inc             21.95     +1.68
INVN    Invision Technologies      41.58     +0.55

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

BONT    Bon-Ton Stores Inc         14.45     +1.58

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

TGT     Target Corp                44.65     +2.92
YELL    Yellow Roadway Corp        32.61     +2.84

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

KO      Coca-Cola Co               48.20     -1.70
NVS     Novartis Ag Ads            42.31     -1.36
PHG     Koninklijke Phillips Elec  28.00     -1.05
ERICY   LM Ericsson                26.58     -1.73
ITW     Illinois Tool Works        73.43     -1.36
GM      General Motors             44.89     -1.19
CCL     Carnival Corp              42.48     -1.93
BBY     Best Buy Co                47.30     -1.20
OMC     Omnicom Group              75.40     -1.73

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

MO      Altria Group Inc           56.35     -2.09
GDT     Guidant Corp               68.23     -2.03
NCC     National City Corp         35.29     -0.91
CMX     Caremark Rx                32.58     -0.82
PBG     Pepsi Bottling Group       28.44     -0.75
MGG     MGM Mirage Inc             43.63     -0.72
TMK     Torchmark Corp             51.42     -0.94


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