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PremierInvestor.net Newsletter                   Monday 03-15-2004
                                                    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:  Anymore Questions?
Watch List:   ISIL, MYGN, IDTI, ABGX

===============================================================
MARKET WRAP  (view in courier font for table alignment)
===============================================================
     03-15-2004            High     Low     Volume Advance/Decline
DJIA    10102.89 -137.19 10241.11 10092.47 1.90 bln    675/2160
NASDAQ   1939.20 - 45.53  1977.78  1939.20 1.71 bln    594/2453
S&P 100   542.26 -  7.66   549.92   541.67   Totals   1269/4613
S&P 500  1104.49 - 16.08  1120.57  1103.36
RUS 2000  566.95 - 15.89   582.96   566.87
DJ TRANS 2790.53 - 72.56  2860.42  2789.81
VIX        21.13 +  2.83    21.39    18.86
VXO        21.38 +  2.66    21.64    19.22
VXN        27.13 +  1.83    27.30    26.07
Total Volume 4,025M
Total UpVol    398M
Total DnVol  3,598M
52wk Highs     170
52wk Lows       36
TRIN          2.82
PUT/CALL      1.05
===============================================================

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

Anymore Questions?
by James Brown

Last Friday's rally eased the pain from a brutal week in the
markets but the question investors were left with over the
weekend was, "Is it an honest reversal or just an oversold
bounce?"  Monday's 137-point loss answered that question.  New
evidence over the weekend linking the Madrid bombings to Al Qaida
renewed terrorism fears around the globe and investors erased all
of Friday's gains.  Positive comments from GE and Wal-Mart were
not enough to inspire investor confidence and mixed economic data
only added to the turmoil.

Over the weekend Spanish officials reported that a videotape left
in a trash can outside a mosque in Madrid held a message from an
alleged Al Qaida spokesperson claiming responsibility for the
train station bombings last Thursday.  Officials were originally
blaming the Basque separatist group Eta but when rumors surfaced
late Thursday that Al Qaida may be involved the U.S. markets
immediately tanked.  Concerns that Al Qaida is still alive and
well and planning attacks here at home have immediately put
investors on the defensive.  It didn't help that authorities in
Pakistan found a bomb-laden car parked outside the U.S. consulate
this morning or news that Greek officials discovered a bomb near
a Citibank branch in Athens.

As if the terror threat issues weren't enough the surprise win by
the Socialist party in Spain's general election on Sunday is a
damaging blow to President Bush's global support network for the
war in Iraq.  The new Prime minister-elect has vowed to bring
home Spain's 1300 troops in Iraq by June 30th.  The combination
of these variables sent the European markets staggering lower.
The French CAC 40 index lost 2.4% or almost 88 points to close at
3573.  The German DAX index lost 2.67%, a triple-digit loss, to
close at 3810.  The British FTSE slipped 1.22% to 4412.  The
picture was a little different across the Pacific with the
Japanese NIKKEI adding 155 points to close at 11,317 and the
Chinese Hang Seng only losing 12 points to 12,919.  Most analysts
believe the NIKKEI's gain was a reflection of our own rebound
from Friday but with today's loss in the U.S. markets we could
see Asian stocks retreat tomorrow.

One of my biggest concerns today is the market internals.  One
would expect them to be bearish with the major indices in the red
but they're starting to get a little extreme.  Declining stocks
outnumbered advancing stocks 3-to-1 on the NYSE and 4-to-1 on the
NASDAQ.  New highs have all but evaporated during the recent
sell-off.  We were used to seeing new highs in the 400 to 800
range.  Today there were only 131 new highs.  What's really
disturbing are the up and down volume numbers.  Down volume was
almost 9 times up volume on the NYSE and down volume did hit 10-
to-1 levels versus up volume on the NASDAQ.  Last week I
commented on the upside breakout in the volatility indices and
how the surge higher broke their longer-term down trends
suggesting this sell-off was "for real".  We're seeing another
surge today on the VIX, VXO and the VXN.

The Dow Industrials did manage to close at the 10,100 level but
today's drop was another new relative low and suggests the index
is headed for the 10,000 mark.  Currently the Dow is down 6% from
its February highs, so we've satisfied those technicians crying
out for a 5% pull back but the 10K mark has now become a magnet
where bulls will wait to buy the dip to support and short-term
bears cover positions for a profit.  The S&P 500 index is
mirroring the Dow's decline with another new relative low itself
but it should find some support at its rising 100-dma near the
1100 mark just four points away.  Currently the SPX is down 4.6%
from its recent highs, which may be enough to satisfy those
investors looking to buy after a correction.  The NASDAQ
Composite out performed both the Dow and the S&P 500 during the
2003 rally so it's no surprise that it's under performing during
the pull back.  Today's 2.29% loss is a new relative low and also
happens to be extremely close to a 10% correction from the
NASDAQ's January highs.  Unfortunately, I wouldn't expect it to
stop here.  The 1900 level is the next real support level and its
200-dma near 1877 could also become a magnet pulling the index
lower.

Chart of the Dow Jones Industrials:



Chart of the S&P 500:



Chart of the NASDAQ Composite:



Monday's economic reports were mixed.  Lately we've been seeing a
very steady trend.  Economists have been expecting dips in a
large number of economic survey's following some recent highs.
Almost every time the dip has been deeper than expected, which is
throwing doubt over the economic recovery.  Case in point this
morning's New York Empire State Manufacturing index showed up
with a reading of 25.3 when economists were only expecting a dip
to 38.7 from February's record setting 42.1 reading.  Readings
above zero indicate economic expansion and the Empire State Mfg
index has been above 30 for the last five months in a row.  New
orders slipped from 34.9 to 23.5.  What are really disturbing
numbers were the employment component dropped from 16.5 to 9.7
and the workweek component dropped from 26.5 to 11.9.  Later in
the session the Federal Reserve reported that February's
industrial production rose 0.7%, which was better than the
expected 0.4% rise.  Plus the country's capacity utilization
numbers hit 76.6% in February, up from 76.1 in January and near
pre-9/11 levels.  This helped soften the blow from the New York
readings but couldn't help stem the tide of selling.

Investors also chose to ignore positive comments from Dow
component General Electric (GE).  The massive conglomerate told
investors it was confident that its Q1 and Q2 earnings numbers
will come in at the high end of its range.  That puts GE's
earnings estimates at 32 cents for the first quarter and 39 cents
for the second quarter, which is about a penny above analysts'
estimates.  Considering the market's renewed concerns over
terrorism it was apropos that GE announce its plans to acquire
InVision Technologies (INVN) for $900 million or $50 a share.
INVN is well known as one of the leading manufacturers of bomb
detectors for U.S. airports.  Separately INVN announced that it
has received an order from the Transportation Security
Administration worth $105 million.  Investors have been bullish
on the stock after President Bush's proposed budget called for a
20% increase in airport security.  Shares of INVN gapped higher
and ended the session up 19.7% to $49.30.

Another Dow component to issue good news today was Wal-Mart
(WMT).  The retail titan said March same-store sales were coming
in at the high end of its 4%-6% range.  Sales were being driven
by an increase in the number of tax refund checks their stores
were cashing.  WMT believes that retailers should do well in the
first two quarters of 2004 due to larger tax refunds for
consumers.  Yet another Dow component in the headlines was United
Technologies (UTX).  Deutsche Bank upgraded the stock to a "buy"
from a "hold" and told clients that the recent weakness was a
buying opportunity.  Analysts are bullish on the company's
defense-related businesses and an estimated increase in
commercial aircraft maintenance.  Shares of UTX added 55 cents to
close at $87.90 and was the only Dow component to close in the
green in today's widespread sell-off.

I'm actually surprised that the DFI defense index didn't see a
gain today with investors focused on terrorism concerns.  What is
not a surprise was the 7% drop in the XAL airline index.  What
probably started out as weakness related to terrorism concerns
was exacerbated by an earnings warning from Delta Airlines (DAL).
The company had already warned that it would lose between $300
and $350 million this quarter but now DAL is estimating its
losses will be closer to $400 million.  The airline cited sharply
higher fuel costs but mentioned that weaker customer demand also
played a role.  Shares of DAL fell 12.2% to $7.76 and rival
Continental Airlines (CAL) followed it with an 11.92% drop to
$12.27.  DAL's announcement shouldn't come as a surprise.  We've
mentioned before that the rising cost of oil would wreak havoc on
the airlines.  A quick glance at the charts for DAL and CAL and
you can see that investors have been rotating out of the group
for weeks.  This problem is likely to spread with oil still
rising.  Crude oil futures jumped more than 3% today and closed
above $37 a barrel.

Investor confidence is also suffering from a revival in corporate
accounting concerns.  Nortel Networks (NT) took the lead in
today's parade of accounting calamities after announcing that
they had put their CFO and Controller on paid leave of absence
pending an independent review of the company's financials.  You
might remember last week that NT said it would delay filing its
annual 10-K report because the company would probably have to
restate its past results.  J.P.Morgan downgraded the stock to
"neutral" and shares of NT fell 18.5% to $5.24.  NT's drop lead
the NWX networking index to a 3.41% decline.

Software stocks were also trading lower led by a 6% decline in
shares of Veritas Software (VRTS).  The company said it would
restate its results for 2001 and 2002 while delay filing its 2003
10-K as it dealt with various accounting errors.  Management said
that its delay would prompt a NASDAQ delisting notice but they
would take the appropriate steps to come under compliance before
any delisting deadline.

Investors were probably thankful to hear the closing bell this
afternoon and put a halt to the market's decline but that didn't
stop the bad news.  P.F. Chang's China Bistro (PFCB) announced
that it would be restating its financial results for the previous
three years as it accounted for its partnership program.  The
company said it would take an $11.5 million charge in its Q1
earnings report and the stock dropped some 8% in after hours
trading.

Fortunately not all the after hours news was bad.  3M (MMM)
joined fellow Dow component GE and issued an upside pre-
announcement for its Q1 earnings.  MMM is raising its Q1 earnings
guidance from 80-82 cents a share to 86-88 cents and raising its
full year estimates from $3.46-3.52 to $3.52-3.62.  Analysts'
estimates had been 82 cents and $3.52 respectively.  MMM said its
industrial-related businesses were seeing strong growth trends
and that currency effects were adding about 5% to its Q1 sales
numbers.

Hopefully MMM's upside earnings guidance, combined with the
underlying affects of GE's upside guidance and WMT's positive
same-store sales guidance will start to sink into the collective
investor mindset and stall the sell-off.  If not we still have
the FOMC meeting tomorrow afternoon to occupy traders' focus.  No
one really expects the Federal Reserve to alter interest rates
but what and how they comment on the country's current economic
status will have an impact on how we finish the week.

Keep an eye on the broker-dealers tomorrow.  Lehman Brothers
(LEH) reports earnings tomorrow morning before the opening bell.
Estimates are for $1.66 per share compared with $1.15 from a year
ago.  Bear Stearns (BSC) will report on Wednesday and Morgan
Stanley (MWD) will report on Thursday.  The group has been flying
past the estimates lately but that hasn't stopped traders from
"selling the news".  You'll also want to watch the homebuilders.
The group has been weathering the recent downturn extremely well
but we'll get the latest housing starts and building permit
numbers tomorrow morning before the open.


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

Intersil Corporation - ISIL - close: 21.27 change: -1.36

WHAT TO WATCH: A feeble rebound at the end of last week wasn't
enough to halt the persistent downtrend in shares of ISIL that
has been in process since early January.  The resumption of the
selling came on heavy volume today and the stock smashed through
support near $22.  Despite a rebound off the lows, the stock once
again rolled over and looks destined for new recent lows ahead.
Use a trigger under today's low and look for a continued decline
towards strong support at $18.




---

Myriad Genetics, Inc. - MYGN - close: 15.95 change: -0.92

WHAT TO WATCH: Volatile price action has been the name of the
game for MYGN over the past few months, but it looks like the
nominal bullish trend is cracking.  The bulls managed to battle
back from Thursday's break of the 200-dma, but the stock came
crashing back through that average today on strong volume.  Use a
drop under $15.50 to trigger bearish entries and look for
downside to the $13 level, with a potential near-term bounce from
the 200-dma on the way down.




---

Integrated Device Tech. Inc. - IDTI - close: 14.72 change: -0.89

WHAT TO WATCH: Breakdowns under the 200-dma have been very common
over the past week and while IDTI managed to move back over that
key average on Friday, the sellers pushed price back underwater
on Monday and another breakdown appears imminent.  Use a trigger
under $14.25 (Friday's low) and target a drop to the October lows
near $12.50.




---

Abgenix, Inc. - ABGX - close: 13.92 change: -0.68

WHAT TO WATCH: ABGX has been building a broad topping formation
for the past several weeks and Monday's drop brings price that
much closer to the expected breakdown.  A drop under $13.65 will
break support that has been in place since early January and have
the stock falling into that early January gap.  While it's
possible that support could be found at the 200-dma, a more
likely target is for a drop into the $12.25-12.50 area, where the
stock has stronger historical support.





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

VRSN $15.40 - Last week's feeble bounce failed to halt the slide
in shares of VRSN and the stock broke the 200-dma and is now
threatening to break below key support at $15.  Use a trigger
below that level and target a drop down to the September lows
near $13.

GNSS $15.30 - Pressured by the weakness in the Semiconductor
sector, GNSS fell below its 200-dma last week, but managed to
reclaim that level as potential support on Friday.  That
potential disappeared on Monday, with the stock closing at new
recent lows.  Use a trigger below $15 for initiating new bearish
positions and target a move down to next solid support near $13.

IGT $39.95 - The unstoppable rally in shares of IGT is being put
to the test over the past week, with the stock retracing its
recent breakout over the $38.50 level.  This appears to be
setting up a second chance for bulls to step into the strong
upward trend at a more favorable price point.  Look for a rebound
from the $38 level, reinforced by the 50-dma to trigger entries
and then look for a resumption of the rally and drive to new
highs.


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

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

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

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

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

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


Copyright 2004  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.





PremierInvestor.net Newsletter                   Monday 03-15-2004
                                                    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:   None
Split Announcement:  UCBI


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

None


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

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

UCBI banks on a 3-for-2 stock split

Mid-session today, United Community Banks, Inc (NASDAQ:UCBI)
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 payable date is April 28th, 2004 to shareholders on record as
of April 14th, 2004.  This is their second split in as many
years.

About the company:
Headquartered in Blairsville, United Community Banks is the
third-largest bank holding company in Georgia. United Community
Banks has assets of $4.1 billion and operates 20 community banks
with 73 banking offices located throughout north Georgia, metro
Atlanta, coastal Georgia, western North Carolina and east
Tennessee. The company specializes in providing personalized
community banking services to individuals and small to mid-size
businesses in its markets. United Community Banks also offers the
convenience of 24-hour access to its services through a network
of ATMs, telephone and on-line banking. United Community Banks
common stock is listed on the Nasdaq National Market under the
symbol UCBI. Additional information may be found at the company's
web site, www.ucbi.com.


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

UTX     United Technologies Corp   87.90    +0.55
WLP     Wellpoint Health Network  112.25    +0.75
APA     Apache Corp                42.25    +0.97
AET     Aetna Inc New              86.59    +2.17
BR     Burlington Resources Inc    60.93    +1.02


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

None


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

IDXX    Idexx Laboratories         56.02    +1.51


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

TEF     Telefonica Sa              43.79    -2.69
SI      Siemens Aktien             72.15    -2.43
PHG     Koninklijke Philips Elec   27.40    -1.01
AXA     AXA (ADS)                  20.39    -1.13
IACI    Interactivecorp            29.07    -1.93


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

ANZ     Australigen Idec Inc       69.44    -1.31


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

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

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

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

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

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

Copyright 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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