Option Investor
Newsletter

Daily Newsletter, Thursday, 03/18/2004

HAVING TROUBLE PRINTING?
Printer friendly version
PremierInvestor.net Newsletter                 Thursday 03-18-2004
                                                    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:      Al Qaeda Expiration
Market Sentiment: Not a good sign
Watch List:       THO, DISH, PRU, PBR


=================================================================
MARKET WRAP  (view in courier font for table alignment)
=================================================================
      03-18-2004           High     Low     Volume   Adv/Dcl
DJIA    10295.78 -  4.50 10328.82 10214.15 1.57 bln 1389/1724
NASDAQ   1962.44 - 14.30  1972.31  1947.31 1.66 bln 1431/1787
S&P 100   550.69 -  0.79   552.44   546.32   Totals 2820/3511
S&P 500  1122.31 -  1.44  1125.50  1113.25
W5000   10960.56 - 20.30 10990.90 10875.18
SOX       480.66 -  6.40   578.57   569.23
RUS 2000  574.55 -  4.02   578.57   569.23
DJ TRANS 2830.92 - 16.70  2850.50  2813.10
VIX        18.53 +  0.42    19.23    18.35
VXO (VIX-O)18.62 +  0.48    19.65    18.18
VXN        24.58 -  0.17    25.36    24.32
Total Volume 3,569M
Total UpVol  1,222M
Total DnVol  2,277M
Total Adv  2928
Total Dcl  4004
52wk Highs  255
52wk Lows    33
NasTRIN    1.72
TRIN       1.15
PUT/CALL   0.80
=================================================================

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

Al Qaeda Expiration

News that the number two man in the Al Qaeda organization
may expire along with March options lifted the markets off
their lows and back to the highs for the week. The rumors
were flying fast and the market makers earned their money
today keeping the SPX under 1125 and guaranteeing the most
SPX options would expire worthless.

Dow Chart - 45 min


Nasdaq Chart - Daily


SPX Chart - Daily



Pakistan announced they were in a major battle with Al Qaeda
and the tribesmen supporting them and they thought they had
a high value target surrounded. The rumors were flying as
to what high value target it might be and the latest word
was Ayman al-Zawahiri, the number two leader was trapped.
The fight was centered around a very heavily fortified area
that the military said had been built to withstand a military
attack. The military said over 200 heavily armed defenders
were surrounded and they were going to bring in air power
at dawn Friday to finish them off. It may be some time
before we really know who is under the rubble.

Fortunately the news came just in time to prevent a market
melt down as the indexes were accelerating into a decline
just after 12:00. The economic news had been less than
encouraging with the exception of Jobless Claims. New claims
for last week fell to 336,000 and the lowest level in three
years. Also encouraging is the week of the month this report
represents. Last week was the survey week for the monthly
Jobs Report and that suggests we could have an improved
jobs number for March.

The PPI for January, yes we finally got it, showed prices
jumped twice the amount expected at +0.6% but the majority
of the increase was in energy. Gasoline prices were up +14%
in January. This was old news and traders breathed a sigh
of relief that the long awaited report, delayed due to a
new method of accounting, was not substantially worse.
Prices rose on capital equipment, vehicles, construction
equipment and aircraft due to higher demand. Nobody is
going to complain about that. The only category with lower
prices was foodstuffs brought on by the Mad Cow panic in
January.

The Conference Board Leading Indicators was unchanged for
February and less than expected. The lower than expected
number was caused by a drop in sentiment. This information
is produced from previously announced components so the
market tends to ignore it.

The biggest negative for the day was the Philly Fed Survey
which dropped to 24.2 for March from 32.4 in February. This
was not exciting news. While it still shows an increasing
level of manufacturing there was a substantial drop in
several areas. New Orders fell to 21.9 from 27.8 and
suggests a slowing in the buying process. Inventories
fell back into negative territory at -12.8 from +0.8 last
month. Unfilled orders rose to 8.8 from 4.4 and delivery
times rose to 19.0 from 7.2. This is confusing as you
would think a drop off in business would speed up the
delivery process. Because of a shortage of inventories
in the entire system it could suggest a shortage of new
components and raw materials. Adding to this theory was
a drop in the average workweek to 17.9 from 23.6 and
a minor drop in employees. Prices paid jumped +10 points
which also suggests higher demand for raw materials.
The biggest component drop was in the six-month outlook
which fell to 36.7 from 51.4. That is a -14 point drop!
This report was a shock for traders but it was still a
positive report. Only the inventory component was negative.
The still positive headline number means manufacturing
activity is still increasing but only at a slower pace.

The last report was the FOMC minutes for the January meeting.
The minutes were fairly calm except for fears of a potential
deflationary enemy. The minutes said "In the view of many,
some modest further disinflation appeared to be the most
likely prospect." That feeling still persists in the recent
meeting announcement where they still gave the nod to a
potential deflationary scenario as having the highest risk
although the risks were "roughly equal". They were still
expecting "faster growth in employment" but so far that
has been an elusive goal. There was some concern about the
potential health of the economy in the second half of 2004
once the tax cut stimulus (refunds) ran their course. The
concern was a slowing of demand and potential problems in
the consumer area. I do not see any rate hikes any time in
the near future based on their valid concerns for lack of
robust and continued growth.

The uncertain and contradictory economics along with option
expiration produced a day that opened with a negative bias
after two days of strong gains. Traders started out taking
profits and the negative Philly Fed report accelerated that
trend. The Dow had fallen to 10214 from yesterday's 10305
close when the rumors hit the wire. Within 30 min the Dow
was back to the high of the day at 10328. Most of that was
in three candles as traders rushed to cover their shorts.
Once the burst of news was over and it was determined that
Bin Laden was probably not in the area the excitement begin
to fade with the indexes pulling back to support to await
a Pakistani update. When the 3:PM bell rang and there was
no further drops and no further news those still short
began pondering their fate if a surprise announcement hit
the wires overnight. Shorts began to cover once again and
the Dow jumped +60 points into the close.

The Nasdaq followed the same pattern as the Dow only it
never returned to yesterday's levels. 1970 remained the
current resistance level. This was frustrating to traders
because Merrill upgraded the semiconductor sector before
the open to overweight. The SOX made it to positive
territory but could not hold it and ended down -6 for the
day.

The real challenge for the day was not the news, economics
or al Qaeda. It was option expiration week. Those who
bought the bottom on Tuesday took profits and closed those
option positions at the open and then paused to determine
direction. With the Nasdaq hovering right in the middle
of its range for the last six days it was tough to decide
what direction we were headed and everybody waited on the
sidelines.

This was complicated by the max pain points being at the
high end of our ranges. The SPX max pain point was 1125
and we have stopped dead on that level for two consecutive
days. When the al Qaeda spike hit at 1:15 the S&P futures
ran to exactly 1124.80 and stopped dead on huge volume.
The short covering rally at the end of the day also stopped
at 1124.80 on large volume. Market makers had a serious
desire to keep the SPX pinned under 1125 and despite the
monster news spike they managed it beautifully. Now they
have to hold their breath overnight and hope there is not
any news before tomorrows open to upset their plans.

Despite the market weakness today, regardless of the cause,
there was not any serious problem with stocks. Microsoft
was knocked for a minor loss at $24.89 after they announced
settlement talks with the EU had broken down. The EU is
set to hit MSFT with a fine in the hundreds of millions
of dollars after Microsoft refused to make certain changes
to Windows. Microsoft said it planned to appeal any ruling
in court. A court case could take years to even come to
trial and an EU order could force the Microsoft make changes
in a matter of months. The EU is demanding that Microsoft
sell a discounted version of Windows that does not contain
Media Player so that rivals like RealNetworks and Apple
have a chance to sell their products. They are also likely
to require Microsoft to make their code available so other
companies like SUNW can integrate their software into
Windows. Microsoft only lost -24 cents on the news but it
did close at a new multi month low.

We are actually seeing some bullish things shaping up for
the current quarter. We are continuing to see companies
post good earnings. Adobe earnings tonight were a prime
example. They posted earnings of 50 cents when analysts
were only expecting 40 cents. They earned a record $423
million and a +43% increase over the same quarter last
year. Shares were up +$2 in after hours.

This continued trend of better than expected earnings and
better than expected guidance, except for Intel, continues
to raise the expectations for the first quarter. We are
right in the middle of the regular warning cycle and to
date we have not had any major confessions and very few
minor ones. The quarter is shaping up to be outstanding.
The low interest rates should continue, possibly for the
rest of the year. All we need is for the economy to catch
fire.

Countering the bullish thoughts above there is a growing
crowd of analysts that are worried about the 3.7% yield
on the ten-year note. They claim this is a number that
could be telegraphing economic problems ahead that may
include another recession. Some people would complain
if you hung them with a new rope. There is also the news
making the rounds again today that Japan may quit buying
bonds to weaken the Yen. They budgeted $100 Billion for
that in the first quarter and they have already spent $45B
and have twice this week floated the trial balloon that
they were rethinking their policy. This could impact
rates, the dollar and the equity market. While everyone
agrees the economy really needs to be growing faster they
also agree it is growing and eventually it will heat up.
We still have not seen the impact of the massive flood of
income tax refunds that should be hitting mailboxes soon.
Large refunds, low interest and spring weather should
provide a boost to the economy for the second quarter.

The challenge over the next several weeks is to rebuild
the bullish sentiment in the market. We suffered a huge
sentiment blow over the last two weeks. While the drop
to date was only a garden variety profit taking dip any
further drops from here could be serious. This coming
week is going to be pivotal. We will either move higher
and begin battling to recover lost ground or we are
going to head for the next lower support level. The odds
are very good we are NOT going to just continue trading
sideways. We are clearly going to have some volatility at
the open as the index options settle and probably some
news event movement as well. The rest of the day may
expire peacefully.

Moving into next week we will not have the options weight
hanging over our head and will be free to move without
restrictions. One thing is clear, even with the news
event spike today the volume was terrible. Only 3.5B
shares traded across all markets. This is almost holiday
volume and the second consecutive day under 4B. We need
a catalyst to get things going again and I do not see
anything on the horizon. There are no material economic
reports until next Wednesday so we will be left to focus
purely on stocks. Friday may not be a stellar day to jump
into a position due to all the conflicting forces. Finding
somebody important in the Pakistan rubble could provide
the stimulus for a short term breakout but there is also
the possibility that after today much of the news has been
baked into the cake.

Enter Passively, Exit Aggressively.

Jim Brown
Editor


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

Not a good sign
- J. Brown

After a volatile session the major indices closed mildly lower
with tech stocks taking the biggest lumps.  Lifting the markets
from its midday doldrums was news that Pakistani troops had
surrounded what was believed to be Al Qaeda's number two man
behind Osama.  Should they be successful in capturing or killing
him then global markets are likely to have a bullish tailwind
going into the weekend.  At least that is the general consensus.
The growing violence in Iraq as we approach the one-year
anniversary of the start of the war is still somewhat unsettling
as news channels flash pictures of flaming wreckage.

The failure to reach a settlement between software giant
Microsoft (MSFT) and the European Union helped depress the
software sector.  The EU is likely to issue a huge fine totally
several hundred million euros.

Today's weakness and inability to breakout above the simple 10-
dma in the Dow Industrials and the NASDAQ composite is not a good
sign.  I suspect that investors are still cautious and tomorrow
could be weak if we don't get any positive headlines to inspire
the markets higher.


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

Market Averages

DJIA ($INDU)

52-week High: 10753
52-week Low :  7929
Current     : 10295

Moving Averages:
(Simple)

 10-dma: 10313
 50-dma: 10526
200-dma:  9788



S&P 500 ($SPX)

52-week High: 1163
52-week Low :  843
Current     : 1122

Moving Averages:
(Simple)

 10-dma: 1125
 50-dma: 1137
200-dma: 1053



Nasdaq-100 ($NDX)

52-week High: 1559
52-week Low : 1014
Current     : 1417

Moving Averages:
(Simple)

 10-dma: 1425
 50-dma: 1487
200-dma: 1377


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

Markets churned sideways today and the volatility indices
followed suit.

CBOE Market Volatility Index (VIX) = 18.53 +0.42
CBOE Mkt Volatility old VIX  (VXO) = 18.62 +0.48
Nasdaq Volatility Index (VXN)      = 24.58 -0.17

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

          Put/Call Ratio  Call Volume   Put Volume

Total          0.80        876,364       700,998
Equity Only    0.65        607,071       393,536
OEX            0.78         87,459        68,037
QQQ            3.22         30,566        98,571


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

Bullish Percent Data

           Current   Change   Status
NYSE          71.8    + 0     Bull Correction
NASDAQ-100    43.0    + 0     Bear Confirmed
Dow Indust.   80.0    + 0     Bull Correction
S&P 500       77.0    + 0     Bull Correction
S&P 100       85.0    + 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: 1.17
10-dma: 1.64
21-dma: 1.35
55-dma: 1.11


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    1654      1440
Decliners    1158      1575

New Highs      63        40
New Lows       13        19

Up Volume   1178M     1144M
Down Vol.    618M      771M

Total Vol.  1833M     1960M
M = millions


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

Commitments Of Traders Report: 03/09/04

Weekly COT report discloses positions held by small specs
and commercial traders of index futures contracts at the
Chicago Mercantile Exchange and Chicago Board of Trade. COT data
can be found at www.cftc.gov.

Small specs are the general trading public with commercials being
financial institutions. Commercials are historically on the
correct side of future trend changes while small specs tend
to be wrong.

S&P 500

Commercial traders are committing new money to both long
and short positions but they are turning more and more
bearish in the large S&P contracts.  Small traders are
holding relatively steady.


Commercials   Long      Short      Net     % Of OI
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%)
03/09/04      418,394   433,237   (14,843)   (1.7%)

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
02/17/04      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%
03/09/04      155,947    88,317    67,630    27.7%

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

Wow!  We really saw some money come into the e-mini's
this week.  Commercial traders added nearly 90K new long
contracts and more than 90K new short contracts.  They
remain net bearish on the S&P.  Small traders also added
more to their positions but remain net bullish.


Commercials   Long      Short      Net     % Of OI
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%)
03/09/04      431,623   485,268    (53,645)  ( 5.9%)

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
02/17/04     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%
03/09/04     135,233     76,558    58,675    27.7%

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


NASDAQ-100

Commercial traders have slowly been turning more and more
bullish on the NASDAQ 100 over the last few weeks.  As of
March 9th, they hit new extremes surpassing they're last
bullish peak dating back to June 11th, 2002.  Unfortunately,
this reading is before the steep Wednesday-Thursday sell-off
this week and before the Thursday morning terror attack in
Spain.  We'll have to wait until next week to see how
commercial traders, or "smart money", reacts to the last
few sessions.  Small traders have also turned more bullish
but they're not hitting extreme readings.


Commercials   Long      Short      Net     % of OI
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%
03/09/04       57,368     46,082    11,286   10.9%

Most bearish reading of the year: (21,858)  - 08/26/03
Most bullish reading of the year:  11,286   - 03/12/04

Small Traders  Long     Short      Net     % of OI
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%
03/09/04       15,533     8,070     7,463    31.6%

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 or institutions have been slowly growing
more and more bullish on the Dow over the last few weeks.
Again, this latest data is before the Wednesday-Thursday
sell-off and the Thursday terror event but it is encouraging.
In contrast small traders have turned more bearish and actually
hit a new extreme in their bearishness, surpassing last
December's readings.  This is a contrarian bullish indicator
since small traders tend to be wrong.  Yet I would hesitate
to draw too many conclusions until we see next week's data
and investor reaction to the terrorist attacks.


Commercials   Long      Short      Net     % of OI
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%
03/09/04       26,867    12,845   14,022      35.3%

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
02/17/04        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%)
03/09/04        7,053    19,159  (12,106)   (46.2%)

Most bearish reading of the year: (12,106) -  3/09/04
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
---------------------------------

Thor Industries, Inc. - THO - close: 25.10 change: -0.91

WHAT TO WATCH: After plunging through the 200-dma, THO has been
trying to hold support near the $24 level for over a week now.
Despite the rebound in the broad market, the stock has been
largely unsuccessful, and it appears a breakdown will occur soon.
Use a trigger under $24 (just below the bottom of the recent
consolidation) and target the $20-21 support level.




---

EchoStar Communications Corp. - DISH - close: 33.75 change: -1.11

WHAT TO WATCH: It really looked like DISH might make a push to
new highs last month, but when the stock tipped over, the sellers
really piled on and since then it has broken all of its moving
averages and the last failed bounce was rejected at the 100-dma.
DISH looks poised to break still lower and entries look favorable
on a drop below $33.  Target support near $30.




---

Prudential Financial Inc. - PRU - close: 52.01 change: +1.23

WHAT TO WATCH: It was nip and tuck for a few days there, but PRU
finally managed to stage a strong rebound from the site of its
50-dma and with today's rally back through the 20-dma, the stock
is poised fro another assault on its all-time highs just over
$48.  Use a trigger over $48.25 and look for that breakout move
to extend up into the $52-53 area.




---

Petroleo Brasileiro - PBR - close: 33.89 change: +1.68

WHAT TO WATCH: Energy related stocks continue to trade strongly
and after nearly 3 months of healthy consolidation, PBR looks
poised for another breakout to new highs.  Use a breakout over
$34.75 as an entry trigger and look for a near-term move towards
strong resistance at $38.





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

MET $35.65 - With the strong rebound in Insurance stocks over the
past few days, MET has reversed its breakdown under the 50-dma
and is quickly charging up to test its recent highs near $36.
Use a breakout to trigger entries and then target a rally up to
the $40 level

AUO $19.35 - Shares of AUO barely flinched in the recent round of
broad market weakness, dropping briefly to the 20-dma.  Showing
that demand for the stock is still brisk, it gapped strongly
higher this morning and then steadily rallied throughout the
session, ending at a fresh all-time high.  Entries near this
level look favorable for a ride on the bullish train.

BG $39.51 - We've looked at BG several times in recent weeks,
hoping for an opportunity to take a position in this strong
bullish trend.  That opportunity appears to have presented itself
this week with another dip to the 30-dma and today's strong rally
brought the stock within striking distance of another breakout to
new highs.  Either another dip near the 30-dma or a breakout over
$40.10 look favorable for new entries.


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





PremierInvestor.net Newsletter                 Thursday 03-18-2004
                                                    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:      UNFI


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

UNFI grows a 2-for-1 stock split

This morning before the opening bell United Natural Foods, Inc.
(NASDAQ:UNFI) announced that its Board of Directors had approved a
2-for-1 stock split of its common shares.  The split will be
payable as a stock dividend.

The payable date is April 19th, 2004 for shareholders on record as
of March 29th. Following the split UNFI should have close to 39.6
million shares outstanding.  The stock will trade ex-dividend on
April 20th.


About the company:
United Natural Foods, Inc. carries and distributes over 32,000
products to more than 14,000 customers nationwide. The Company
serves a wide variety of retail formats including conventional
supermarket chains, natural product superstores, independent
retail operators and the food service channel. (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

CVX     ChevronTexaco Corp         89.75     +0.83
COP     ConocoPhillips             70.36     +1.46
PRU     Prudential Financial       47.00     +1.10
MET     Metlife Inc                35.65     +0.70
PBR     Petroleo Brasileiro        33.89     +1.68
GD      General Dynamics           88.06     +1.11

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

CSGS    CSG Systems                17.01     +2.65
GLYN    Galyans Trading             9.97     +1.31
EVCI    EVCI Career Colleges       12.12     +1.69
HAUP    Hauppauge Digital Inc       5.95     +1.46

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

FO      Fortune Brands             75.56     +3.73
SII     Smith Intl Inc             54.71     +1.61
KMRT    Kmart Holdings             37.06     +2.38
ASKJ    Ask Jeeves Inc             30.61     +1.26
UNFI    United Natural Foods Inc   48.46     +1.54
TASR    Taser Intl                 62.40     +5.62
DJO     DJ Orthopedics             24.30     +2.65

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

CAKE    Cheesecake Factory         45.06     -1.97
MLHR    Herman Miller Inc          26.76     -2.07
WGO     Winnebago Industries       29.91     -3.01
EAC     Encore Acquisition         26.15     -1.05
ANSI    Advanced Neuromo Sys       37.41     -2.64

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

.None..


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





DISCLAIMER

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

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

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

Option Investor Inc
PO Box 630350
Littleton, CO 80163

E-Mail Format Newsletter Archives