Option Investor
Newsletter

Daily Newsletter, Tuesday, 04/06/2004

HAVING TROUBLE PRINTING?
Printer friendly version
PremierInvestor.net Newsletter                  Tuesday 04-06-2004
                                                    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:      Wrong Number
Watch List:       ADBE, SPW, JBLU, MACR
Market Sentiment: Stocks Catch Their Breath

=================================================================
MARKET WRAP  (view in courier font for table alignment)
=================================================================
      04-06-2004           High     Low     Volume   Adv/Dcl
DJIA    10570.81 + 12.40 10570.81 10505.11 1.79 bln 1175/2087
NASDAQ   2059.90 - 19.20  2068.27  2053.32 1.78 bln 1092/2076
S&P 100   561.58 -  1.28   562.86   559.07   Totals 2267/4163
S&P 500  1148.17 -  2.40  1150.57  1143.30
W5000   11239.80 - 40.10 11279.90 11200.54
SOX       508.07 - 10.60   518.70   502.36
RUS 2000  599.33 -  7.06   606.39   599.28
DJ TRANS 2974.84 + 19.20  2982.45  2947.97
VIX        15.32 +  0.35    15.53    15.07
VXO (VIX-O)14.49 +  0.61    14.96    14.34
VXN        22.23 +  1.12    22.24    21.28
Total Volume 3,786M
Total UpVol  1,242M
Total DnVol  2,474M
Total Adv  2494
Total Dcl  4637
52wk Highs  421
52wk Lows    58
TRIN       1.00
NAZTRIN    1.06
PUT/CALL   0.82
=================================================================

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

Wrong Number
by Jim Brown

Nokia dialed a wrong number for the markets on Tuesday and
the result was a serious drop in tech stocks. Apparently
more cell phone buyers are opting for the cheap phones
instead of those laden with expensive and profitable
features. This is simply a case of the market looking for
an excuse to take profits.

Dow Chart - Daily


Nasdaq Chart - Daily


Russell Chart - Daily


Wilshire 5000 - Chart



While it may sound strange to claim that the warning was
just an excuse I believe the facts are clear. Nokia said
their Q1 revenue would be almost $8 billion. That is a
lot of phones and it is only -2% below last years levels.
That may not seem like a positive sign but there were other
points that bear mentioning. Nokia said industry growth
rose +25% for the quarter. This is a huge number considering
the saturation level of phones already. Nokia was killed on
the news as well as chip companies supplying the internals
for the phones. The entire market was taken down a notch.

Think about it for a second. If the market grew +25% then
somebody got the business. Odds are good Motorola picked
up significant share with Ericsson and Qualcomm also
gaining points. The chip companies that were cut on the
news still produced chips for that +25% growth only they
did not sell them to Nokia. The problem as I see it is a
Nokia problem. They simply did not have the right product
mix and the little guys chipped away at their market share
and profits. If the sector grew at a +25% rate that cannot
be bad news.

The markets closed right at strong resistance yesterday
after more than a week of a strong rebound. The Asian
markets were not weak with the Nikkei hitting a 32 month
high overnight. The Nokia warning was just a trigger for
funds who were already nervous and had their finger on
the trigger.

The economic reports today were positive and did not add
to the negative bias. Retail Sales were weak at +0.3% but
still better than last weeks -1.9% drop. The better news
was the Challenger Layoff Report which showed layoffs
fell -12% in March to only 68,034 and the lowest level
since June-2003. This should be good for the April Jobs
report. The year over year change was a drop of -20%.
The sector with the biggest drop was not manufacturing
but financial services. This could be due to the wave of
acquisitions in the sector and the resulting layoffs.
Just yesterday Banc America announced a cut of -12,500
jobs as the result of the Fleet Boston merger. Cost
cutting is still the motivating factor and the current
productivity surge will continue to require fewer workers.
The continued drop in layoffs despite the rising growth
in productivity is a positive sign the economy is still
growing.

After the bell Alcoa missed estimates by two cents with
earnings that were +135% over the same period last year.
The stock dropped in after hours in yet another example
of traders looking for an excuse to sell. A +135% jump
in earnings and the stock was punished because analysts
were over aggressive with their estimates. The AA CEO
said demand for aluminum fabricated products was the
highest level in three years and that was driving prices
even higher. He said this trend would provide even higher
profitability in the second quarter. Alcoa's revenue
rose to $5.7 billion and the highest in nearly three
years. This was NOT a bad earnings report yet the
futures dove in after hours.

The biggest impact to the after hours futures drop came
from Seagate Technology. They are the biggest disk drive
maker for computers. STX warned for the second time in
the last five weeks and cut estimates to seven cents
from 20 to 30 cents they had predicted in January. This
is the killer comment. They said demand for computer
disk drives had fallen far below guidance primarily in
notebooks. They said notebook demand for the quarter was
one million drives less than previously expected. That is
a -7% drop from the 14-14.5 million drives and they said
the backlog from the weak demand would probably carry
over into the June quarter. Remember Intel getting killed
over the last month because of weak notebook sales? Looks
like the problem has not been resolved. They said full
size PC drives were also weak and could be another million
drives below plan.

This is a major blow to the expanding IT spending theory.
Removing two million drives from actual Q1 demand could
mean two million fewer PCs will be sold. Obviously this
is not a direct one-to-one correlation but it would be
close. The number of drives sold as components into the
retail market would be only a small fraction of the total
demand. We had other warnings from techs EPNY and BRKT
yesterday but this CTX warning is much higher profile.

The markets are showing a much weaker opening tomorrow
from the after hours news events above. That is not the
whole story. The markets ended weak today, far weaker
than the Dow was showing at +12 for the day and a close
right at the high of the day. The problem came from the
Russell. The Russell was also weak on Monday and only
rallied on a broad based buy program at the close. The
Nokia warning this morning intensified that weakness.

We talked all last week about the window dressing and the
strong rally in small caps from that dressing. We discussed
the potential for window undressing this week if retirement
fund flows were weak. The Nokia warning simply gave those
wanting to lighten up an excuse to hurry. The Russell had
closed at significant resistance on Monday and right at
the all time closing high. It has failed here on each
attempt since March of 2000. Many had high hopes it would
break through on this attempt and lead the rest of the
index higher into the April earnings period. After the
close today the STX warning sent the Russell futures
plunging even farther.

What I thought we were seeing on Tuesday was a rotation
out of small caps and into the big caps as evidenced by
the Dow breaking out to a new high while the Russell was
setting new lows. This would indicate that funds were
still interested in being long the market but were moving
to the safety of liquidity. That theory could be tested
on Wednesday if the big caps fall as well.

Another event after the bell was the 7E7 engine award by
Boeing. GE and Rolls Royce were awarded the contracts and
UTX Pratt and Whitney was the loser. This could put some
pressure on the Dow at the open with minor gains going
to GE because the size of the contract is still unknown.
It could put more pressure on UTX because it lost out on
what is expected to be more than 2,000 aircraft over the
life of the product. Because the Dow is price weighted
the impact to $89 UTX will more than offset the minor
gain to $31 GE. Boeing will likely be neutral. GE has
earnings on Thursday and that could weigh on the stock.

The Dow also should begin to see pressure from the Dow
rebalancing as funds increase selling in EK, IP and T.
There are not a lot of funds indexed to the Dow with
only about $20 billion according to current estimates.
By comparison there is $1.2 trillion indexed to the S&P
500. The changeover occurs on Thursday and $20B of EK,
IP and T is a lot of stock to sell.

Earnings due out tomorrow include DNA, YHOO, RIMM, CBK,
CKR and PERY. Clearly the big gun is YHOO and it was
downgraded on Tuesday. There are quite a few analysts
that think the increasing competition and over valuation
from the strong rebound will clash with their announcement
tomorrow night.

The Dow moved slowly closer to the 10600 level at the
close and very close to the 10600-10650 resistance range.
With the news after the close we probably will open much
closer to the 10500 range. The overhead resistance is
very strong and the cracks in the foundation could make it
tough to move higher. This suggests that should we actually
make a higher move it would be strong confirmation that the
bulls are back to stay.

The Nasdaq is going to be the weakest link on Wednesday
based on the STX. The Nasdaq closed at 2077 yesterday and
2057 today. The overnight decline in disk drives, chips
and PC stocks is going to make 2000 a real target if this
weakness catches on. The Russell failed at 605 and is
trading at the lows at 595 overnight. This is going to
be a real drag on the Nasdaq.

The key for the rest of the week is going to be expectation.
If the expectations for the April earnings have been damaged
then we have a rough road ahead. I think the Alcoa earnings
would be ignored and even cheered tomorrow but the STX stink
bomb could linger. While the Russell and Wilshire had been
rising to their highs the Nasdaq and Dow were still well
below equivalent resistance. There needs to be some strong
earnings performance over the next couple days to provide
assurance that these were random events or the house of
cards may crumble.

This is normally a bullish week with Thursday a strong day.
That sets up a potential for a dip buy at tomorrow's open
and a rally into Thursday afternoon. Then what? A late news
flash just said 12 marines were killed in Iraq in the
strongest fighting since the end of the war. There is talk
about sending more soldiers to Iraq instead of reducing the
force. This will not help sentiment going into the Easter
holiday. Also, what happened to the terrorist threat? Would
a three day Easter holiday provide an opportunity to strike
at the predominately Christian population in the US on a
high profile religious holiday? I am not speculating that
traders will dump stocks before the weekend with a strong
earnings schedule next week but it is possible. We saw no
fear last weekend on top of a week of gains but there was
no excitement on Friday either.

I am thinking we lost a lot of bullish sentiment over the
last couple days and the April earnings run could be losing
traction. That is not to suggest it won't return with a
bang on Monday but the rest of this week could be a coin
toss. I plan on buying the dip on Wednesday for a quick
two day trade but then my risk profile is different than
most. One thing I will not be doing is shorting TASR. The
stock was hit with a drop at 12:30 on news that some bad
guys hit with a Taser eventually died in custody. The
company quickly responded that NONE of the deaths had been
attributed to the Taser and there was no correlation. Then,
in what appeared to be a pure stock price manipulation
scheme they announced a 2:1 split 30 min later. The stock
jumped +$15 on the news and shorts got killed once again.
40% of the stock was short for the latest available period.
It currently has a PE of 247 and insiders are dumping stock.
The CFO just sold 100% of his according to one report today.
While this is a highly visible short target the company has
shown no reluctance to manage the price. I will pass.

Enter Passively, Exit Aggressively.

Jim Brown
Editor


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

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

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

Adobe Systems, Inc. - ADBE - close: 41.46 change: +0.11

WHAT TO WATCH: Following its strong rebound from the March lows,
ADBE finally managed to turn its PnF chart bullish last week by
trading $41 and the stock is continuing to look strong.  Bullish
entries look favorable near current levels, targeting a continued
rally towards strong resistance near $45.




---

S P X Corp. - SPW - close: 46.01 change: +0.26

WHAT TO WATCH: After plenty of gyrations following the February
selloff, shares of SPW look like they are finally ready to break
into the gap left behind.  Use a trigger over $46.75 and target a
rally up to the $50 level, right where the 200-dma lies in wait
as potential resistance.




---

JetBlue Airways Corp. - JBLU - close: 27.29 change: +1.05

WHAT TO WATCH: News of an improvement in traffic for the month of
March finally broke JBLU out of the funk it's been in lately,
with the stock powering through its 100-dma on very strong
volume.  This sets the stage for a run towards resistance at the
200-dma and then stronger resistance up near $34.  Aggressive
traders can enter near current levels, while the more
conservative approach will be to require a breakout over today's
high.




---

Macromedia Inc. - MACR - close: 20.01 change: -0.72

WHAT TO WATCH: Giving us a nice trading range to exploit, MACR is
just starting to tip over from the top of the $17.50-21.00 range
in which it has been mired for the past several months.
Aggressive traders can establish bearish positions in the $20-21
area, looking for a drop back to the bottom of the range,
targeting exits near the $18 level.




---

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

SNDK $31.45 - After a long and persistent downtrend, SNDK broke
out on Friday and continued to surge on Monday, easily clearing
the 200-dma.  A dip to retest the 200-dma or a breakout over $32
look like viable entry setups ahead of a continued rally towards
strong resistance at $36.

JNY $38.16 - Favorable news on JNY's proposed acquisition of the
Maxwell Shoe Company sent the stock soaring today, breaking out
to its best level since the middle of 2002.  Trigger entries on a
move above today's high and target a move up to next strong
resistance at $41-42.


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

Stocks Catch Their Breath
- J. Brown

Stocks finally paused after an eight-day sprint higher from their
late March lows.  Overall the profit taking, which was focused on
tech stocks, wasn't that bad and certainly overdue.  Wall
Street's focus is turning to earnings season and so far the first
stocks out of the gate are stumbling.  Aloca (AA) missed by 2
cents while Nokia (NOK) pre-announced an earnings warning that
profits would fall toward the low end of their guidance.  This is
not encouraging news but investors seem hopeful that these
"misses" are stock-specific.  Currently First Call predicts that
earnings this season will be up 17% to 20% over last year.

The focus tomorrow will be on YHOO's and RIMM's earnings reports
after the closing bell and GE's report on Thursday.  My concern
is that the market has bounced so strongly from its March lows
that investors will use any news (good or bad) as an excuse to
take profits.  Thankfully April is historically a bullish month
and a number of market forecasters believe positive earnings news
will actually fuel the next leg higher in stocks.


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

Market Averages

DJIA ($INDU)

52-week High: 10753
52-week Low :  8145
Current     : 10570

Moving Averages:
(Simple)

 10-dma: 10352
 50-dma: 10458
200-dma:  9862



S&P 500 ($SPX)

52-week High: 1163
52-week Low :  862
Current     : 1148

Moving Averages:
(Simple)

 10-dma: 1125
 50-dma: 1133
200-dma: 1061



Nasdaq-100 ($NDX)

52-week High: 1559
52-week Low : 1018
Current     : 1493

Moving Averages:
(Simple)

 10-dma: 1449
 50-dma: 1460
200-dma: 1390


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

Volatility indices gapped higher at the open but faded lower
through most of the session.  They remain near their lows and
suggest investors remain confidently bullish.

CBOE Market Volatility Index (VIX) = 15.32 +0.35
CBOE Mkt Volatility old VIX  (VXO) = 14.49 +0.61
Nasdaq Volatility Index (VXN)      = 22.23 +1.12

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

          Put/Call Ratio  Call Volume   Put Volume

Total          0.82        846,971       692,316
Equity Only    0.69        728,128       505,325
OEX            1.61         18,173        29,200
QQQ            1.26        193,327       243,849


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

Bullish Percent Data

           Current   Change   Status
NYSE          74.1    + 1     Bull Correction
NASDAQ-100    53.0    + 3     Bear Correction
Dow Indust.   83.3    + 0     Bear Confirmed
S&P 500       76.8    + 0     Bear Confirmed
S&P 100       79.0    + 0     Bull Correction


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: 0.78
10-dma: 0.76
21-dma: 1.31
55-dma: 1.14


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    1116      1015
Decliners    1721      2078

New Highs     129       127
New Lows       35        12

Up Volume    629M      540M
Down Vol.   1070M     1170M

Total Vol.  1716M     1768M
M = millions


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

Commitments Of Traders Report: 03/30/04

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

Not much change in the commercial traders' positions this
past week.  Small traders turned a little less bearish.


Commercials   Long      Short      Net     % Of OI
03/09/04      418,394   433,237   (14,843)   (1.7%)
03/16/04      454,635   449,505     5,130     0.6%
03/23/04      401,456   418,732   (17,273)   (2.1%)
03/30/04      407,987   420,624   (12,673)   (1.5%)

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
03/09/04      155,947    88,317    67,630    27.7%
03/16/04      159,054   115,023    44,031    25.3%
03/23/04      130,648    89,943    40,705    18.5%
03/30/04      130,112    81,937    48,175    22.7%

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

Almost the same holds true here.  Commercial traders edged up
their short positions but not by much.  Small traders turned a
little less bullish.


Commercials   Long      Short      Net     % Of OI
03/09/04      431,623   485,268    (53,645)  ( 5.9%)
03/16/04      472,809   574,241   (101,432)  ( 9.7%)
03/23/04      268,647   294,930    (26,283)  ( 4.7%)
03/30/04      265,492   305,797    (40,305)  ( 7.1%)

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
03/09/04     135,233     76,558    58,675    27.7%
03/16/04     192,136     96,691    95,445    33.0%
03/23/04     131,879     59,210    72,669    38.0%
03/30/04     123,494     59,550    63,944    35.0%

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


NASDAQ-100

Whoa!  Commercials turned bearish on the NASDAQ just before
it broke out over resistance.  Unless that's a typo by the COT
it will be interesting to see how that number changes next
week.  Small traders turned more bearish.  It's been a painful
week for everyone here.


Commercials   Long      Short      Net     % of OI
03/09/04       57,368     46,082    11,286   10.9%
03/16/04       68,285     54,899    13,386   10.9%
03/23/04       52,014     34,017    17,997   20.9%
03/30/04       52,749     67,967   (15,218) (12.6%)

Most bearish reading of the year: (21,858)  - 08/26/03
Most bullish reading of the year:  13,386   - 03/16/04

Small Traders  Long     Short      Net     % of OI
03/09/04       15,533     8,070     7,463    31.6%
03/16/04       27,859    18,333     9,526    20.6%
03/23/04        9,884    12,887    (3,003)  (13.2%)
03/30/04        8,928    16,551    (7,623)  (30.0%)

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

Very little change in commercial traders' positions while
small traders pared back their longs.  Remember, these numbers
are prior to the jobs report on Friday.


Commercials   Long      Short      Net     % of OI
03/09/04       26,867    12,845   14,022      35.3%
03/16/04       32,317    17,514   14,803      29.7%
03/23/04       23,048    22,119      929       2.1%
03/30/04       23,642    22,180    1,462       3.2%

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
03/09/04        7,053    19,159  (12,106)   (46.2%)
03/16/04       10,002    20,970  (10,968)   (35.4%)
03/23/04        8,344     6,734    1,610     10.7%
03/30/04        7,020     6,711      309      2.3%

Most bearish reading of the year: (12,106) -  3/09/04
Most bullish reading of the year:   8,523  -  8/26/03

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


=================================================================
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                  Tuesday 04-06-2004
                                                    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: IMOS
Stock Splits:     BEBE, TASR

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

IMOS - tech long play
  Actually we are not changing our stop from $10.45 but readers
  might note that the intraday low says $10.23.  That's actually
  a bad tick that should be corrected by the charting services.
  However, we will add that today's close under the $11.00 mark
  is not a good sign and we could be stopped out tomorrow.


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

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

BEBE fashions a 3-for-2 stock split

This morning before the opening bell bebe stores, Inc
(NASDAQ:BEBE) announced that its Board of Directors had approved a
3-for-2 stock split.

Instead of doing the usual 3 shares for every 2 shares owned BEBE
is going to split each share owned on April 21st, 2004 into 1.5
shares.  The distribution date is May 5th and BEBE will trade
split adjusted on May 6th.  Post-split BEBE will have
approximately 39 million shares outstanding and the company will
increase the number of authorized shares from 40 million to 60
million.  Fractional shares will be paid for in cash.


About the company:
bebe stores, inc. designs, develops and produces a distinctive
line of contemporary women's apparel and accessories, which it
markets under the bebe and BEBE SPORT brand names. bebe currently
operates 191 stores, of which 173 are bebe stores and 18 are BEBE
SPORT stores. These stores are located in the United States and
Canada. (source: company press release)

---

TASR electrifies with another 2-for-1 split

 In the middle of afternoon trading TASER Intl (NASDAQ:TASR)
announced that it would declare another 2-for-1 stock split in the
form of a 100% stock dividend.

The payable date for the split is April 29th, 2004 for
shareholders on record as of April 15th.  Post-split TASR should
have close to 28.3 million shares outstanding.

The company also refuted claims from CBS evening news that 40
people had died while in police custody after being hit with a
TASER energy weapon.

About the company:
TASER International, Inc. provides advanced less-lethal weapons
for use in the law enforcement, private security, and personal
defense markets. Its flagship ADVANCED TASER. M26 product uses
proprietary technology to incapacitate dangerous, combative, or
high-risk subjects that may be impervious to other less-lethal
means. Its latest product, the TASER X26 is 60% smaller and
lighter than the ADVANCED TASER M26 and reduces injury rates to
suspects and officers, thereby lowering liability risk and
improving officer safety. TASER. technology is currently in
testing or deployment at over 4,000 law enforcement and
correctional agencies in the U.S. and Canada. (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

GSK     GlaxoSmithKline            40.65     +1.00
HBC     HSBC Holdings              75.64     +0.61
SC      Shell Transport & Trading  41.15     +0.54
UTX     United Technologies        89.75     +0.52
COF     Capital One Financial      76.82     +0.62
GD      General Dynamic            93.17     +1.15

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

TUP     Tupperware Corp            19.40     +1.22
EAGL    EGL Inc                    19.82     +1.78
NSSC    Napco Security Systems     18.52     +1.36

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

GDT     Guidant Corp               68.14     +2.29
DE      Deere Co                   72.94     +1.22
STJ     St. Jude Medical           74.65     +1.07
EL      Estee Lauder               44.52     +1.02
JNY     Jones Apparel Group        38.16     +1.42
BDK     Black & Decker             59.38     +1.35
RNR     RenaissanceRe Holdings     56.04     +1.14

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

SPG     Simon Property Group       53.35     -2.47
GGP     General Growth Properties  30.37     -1.55
VNO     Vornado Realty Trust       56.00     -1.48
PLD     Prologis                   32.78     -1.29
RSE     The Rouse Co               48.23     -2.37
PZZA    Papa Johns Intl Inc        31.09     -1.84
SFNT    Safenet Inc                31.65     -6.80
ZOLL    Zoll Medical               30.84    -11.78

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

FMX     Fomento Economico          48.82     -1.33
GLK     Great Lakes Chemical       23.77     -0.67


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