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Daily Newsletter, Tuesday, 05/18/2004

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PremierInvestor.net Newsletter                  Tuesday 05-18-2004
                                                    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:      The Day the Market Stood Still
Watch List:       An Eclectic Mix
Market Sentiment: Pay at the pump

=================================================================
MARKET WRAP  (view in courier font for table alignment)
=================================================================
      05-18-2004           High     Low     Volume   Adv/Dcl
DJIA     9968.51 + 61.60  9987.04  9906.64 1.68 bln 2304/ 893
NASDAQ   1897.82 + 21.20  1903.39  1890.95 1.48 bln 2000/1113
S&P 100   533.82 +  3.42   535.25   530.40   Totals 4304/2006
S&P 500  1091.53 +  7.43  1094.14  1084.10
W5000   10598.26 + 80.40 10615.01 10518.57
SOX       453.36 +  8.40   455.97   444.94
RUS 2000  542.56 +  7.22   542.56   535.34
DJ TRANS 2842.36 + 30.00  2844.18  2811.35
VIX        19.33 -  0.63    19.70    19.14
VXO (VIX-O)19.82 -  1.21    20.54    19.23
VXN        27.75 -  1.44    29.29    27.58
Total Volume 3,421M
Total UpVol  2,628M
Total DnVol    742M
Total Adv  4793
Total Dcl  2321
52wk Highs   52
52wk Lows   190
TRIN       0.83
NAZTRIN    0.51
PUT/CALL   0.99
=================================================================

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

The Day the Market Stood Still
by Jim Brown

Almost like a scene out of an old science fiction movie the
markets gapped open on Asian relief and then just stopped.
They traded almost completely flat after 10:30 on very light
volume. Intraday charts showed a near flat line despite the
advancers controlling the day. It was not a surge in buyers
but a complete lack of aggressive sellers.

Dow Chart - Daily


Nasdaq Chart - Daily


Nasdaq Chart - 5 min



The lack of excitement worried everyone and there was a total
lack of conviction. However, there were several attempts to
press a sell off and they all failed quickly. Resistance held
and so did support. Considering the weak economics this morning
just holding in place was an accomplishment.

Chain Store Sales came in at -0.8% and the second consecutive
weekly loss. Consumers are getting killed at the pump with
gas prices hitting an all time high today. This is taking
cash out of consumers pockets and summer weather kept them
out of stores. Tax refunds have begun to dwindle and consumers
are running out of surplus cash.

New Residential Construction fell to 1.969M units from 2.011M
in March. This shows that builders are not as optimistic about
the future with rising rates. The drop was not significant and
we did have a very strong March so this is not really a factor
to fear. If it dropped another 50-100K traders would start to
worry more that the sector was weakening. Several comments
and events recently have begun to question if the Fed would
actually hike in June so the picture is still cloudy. We
still have a couple strong months ahead for home sales.

The majority of the market relief today was due to a recovery
in the Asian markets. India led the rebound with a +8% gain
after Sonia Gandhi turned down the Prime Minister position.
The Indian markets fell -17% intraday on Monday and recovered
to close only down -11% but it was still the biggest loss on
record. Other Asian markets fell on the news on Monday with
the Nikkei down -3%, Taiwan -5.1% and Korea -5%. All those
markets recovered on Tuesday and the U.S. markets rebounded
at the open on relief. We also saw the GDP in Japan come
in at +5.6% when only +3.5% had been expected. That was the
last major economic release for the week and the Nikkei
jumped +2% but only recovered two-thirds of Monday's losses.

No sooner had the markets opened up than Fed President Al
Broaddus delivered a hawkish speech expressing concern that
core inflation had quickly bottomed and was on a subsequent
upswing. He said there was a growing concern at the Fed about
inflation. He said that after a long period of worrying about
lack of inflation he would now have to dust off his inflation
hawk feathers in case he had to attack it again soon. As if he
feared he had said to much he repeated the current Fed refrain
of "labor market slack and excess capacity will restrain the
inflation pressures in the period immediately ahead." He also
repeated the "measured pace" phrase but said there is no
question the risk is greater now than just three months ago.
He dismissed 1994 parallels saying the Fed only wanted to
"stabilize" inflation at the current levels today and not
"reduce" it as they did in 1994. Since it took almost 20
years for the last inflation cycle to be broken the Fed does
not want to go there again and Broaddus made it clear the Fed
would not allow it to happen again. This was the most hawkish
of the recent Fed speakers and brought the June rate hike back
into focus.

That hike had been discounted somewhat over the last couple
days with oil hitting 22 year highs and depressing the current
economic environment. Coupled with global market instability
there were some beginning to think the Fed could still take
a pass in June. I think the inventory adjustment to the GDP
will push it high enough that the Fed will feel required to
act.

Helping push the U.S. markets higher at the open were strong
earnings from CSC and Agilent. This helped push the Nasdaq
back to 1900 but the index could not hold it. The Dow tried
to regain 10000 but that was also an elusive target. The
Dow rebounded from 9900 support that held firm yesterday
and climbed to 9970 by 10:30 and it held that level the
rest of the day. By failing to recover 10K after trading
very close all day it cast significant doubt on the quality
of the rally.

The Nasdaq rebounded +20 points at the open and then traded
in a six point range the rest of the day. This is yet another
lower high and another failure to return to critical levels.
Both indexes gave the appearance of a simple dead cat bounce
where sellers paused in hopes buyers would rush into the dip
and push indexes back to resistance so sellers could pile on
once again.

I mentioned on Sunday there was a chance the market could
see an option expiration rally off critical support at NDX
1400 and Nasdaq 1900 on Monday assuming there were no weekend
events. Obviously the Asian market implosion was a key event
over the weekend that nullified that rebound potential. The
failure for the NDX/Compx to return to those levels today is
a clue to the weakness still ahead. The lack of volume was
another clue. We are two days into expiration week and it
appears everyone is content to let the week end at this
level.

Hedge funds or just funds in general have been pushing the
market around worse than the ball in a Ping Pong match. On
Monday volume in the QQQ was over 150 million shares. Today
it was only 96 million. Average volume is 103 million. A 50%
increase in volume on one day should give you a clue how
heavily the funds are hedged. Program trading hit 52.3% on
the NYSE last week, the highest level ever. Average daily
volume in program trades was 847 million shares. Only 11%
of the program trading was due to arbitrage. That is the
buying/selling of a basket of stocks and futures to capture
differences in the fair value.
(http://www.nyse.com/press/1084441844123.html)
The retail trader is being tossed around like a ship in a
storm as the big guys fight for points. The lack of ANY
volatility after 10:30 today indicates the hedge funds and
institutions took the day off. Whether they are comfortable
holding the indexes just under key resistance or they were
hoping for a bounce to sell we will not know until tomorrow.

One statistic on cash flow that hit the airwaves today was
the outflow of cash by foreign investors. In March there was
an inflow of +$2.4 billion but April saw outflows of -$13.5
billion. This was the highest outflow since records began
in 1978. Deficits and rate hikes were given as the reasons
for the withdrawals as foreign accounts repatriate money.

A positive for today's market was a drop in oil of more
than a $1. July crude fell -1.08 to $40.40 after setting
an all time high yesterday. There is no reason other than
profit taking and the recovery of the Asian markets. The
Bush administration said it would NOT use the strategic
oil reserves to reduce prices. That oil is supposed to be
for national emergencies and for a defense stockpile. Prices
are not an emergency. Considering the rate of escalation in
price and the heated words over oil in the press I don't
think it is a bad idea to store it up. Planes, ships, tanks,
trucks and humvees don't run without oil. I also don't think
it would hurt to start applying the screws to OPEC nations.
Cutting off trade favors to several might take the smile
off their face. It only costs an average of $8 to produce
a barrel of oil so profits are huge.

One market factor I mentioned last week was eliminated when
Bush formally reappointed Greenspan to his position today
for another four year term. He now has to be approved by
Congress but that is not expected to be a problem. Greenspan
cannot serve the entire term. His term at the Fed is up on
Feb-1st 2006 and he will have to abdicate by then. By law
he cannot continue at the Fed past that date. That gives
us a little over a year and an election before potential
successors will start posturing in the press.

After the bell today several tech companies reported great
earnings. Leading the list was Hewlett Packard, which did
announce inline at 34 cents and a profit of $1.3 billion
on an operating basis. Sales in Europe surged +17% on things
like digital cameras, music players and laptops. Carly
Fiorina said the quarter was strong but admitted corporations
were still reluctant to spend millions on computer upgrades.
She said pricing was extremely competitive and sales depended
on price. HPQ raised its guidance but it was clear that Dell
was breathing down their neck in hot pursuit and IBM is
chipping away at the HPQ base.

AMAT beat the street by three cents and said orders were up
+32% in the first quarter to $2.21 billion. AMAT raised its
guidance for the current quarter and said its plants were
running at 100% with plenty of opportunity for upside. NTAP
also announced earnings inline with estimates and they
predicted revenues would grow +4-6% in the current quarter.
ADSK also beat the street by +6 cents and boosted estimates
for the full year. PLAB beat the street by +3 cents and
will give guidance on a conference call on Wednesday.

Earnings are good, the economy is growing and Asia is still
booming as evidenced by Japan's GDP today. However the U.S.
markets are still weak. Even the finding of a couple chemical
weapons in Iraq could not send them higher. You know why and
I do not need to spell it out again. There are still some
rocky times ahead and while we may be nearing some strong
support there is still strong overhead supply. There is
stock for sale and until that supply goes away we will
continue to be weak. June 30th is the key day for more than
one reason. The key for me is when will traders decide that
enough is enough and start nibbling at beaten up issues in
hopes of a summer rally after that date. The velocity of
the decline is slowing but we may not be done yet.

For the rest of the week there are no economic reports that
should shake up the markets. We have three days left in
expiration week and based on today's volume it could be very
boring. I have been suggesting everyone sell rallies until
the trend changes but I am recommending a neutral approach
today. Until we get past expiration it could be terminally
boring interspersed with periods of extreme volatility.
Neither environment is conducive to profitable trading.
Next week we should return to normal and a trend should
emerge again.

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

An Eclectic Mix

Coca Cola Enterprises Inc. - CCE - close: 27.02 change: +0.03

WHAT TO WATCH: After an explosive upward move at the end of
April, shares of CCE have been trading in strong fashion,
gradually rising back to the top of the range of April 30th.
With the pattern of higher lows and higher highs since that move,
CCE looks like it is ready for another breakout.  The bulls
couldn't sustain a breakout today, but a move through the $27.40
level can be used for a bullish entry trigger.  Look for an
initial move to the $30 level, with potential for a longer-term
rise towards the $32 level.




---

Praxair Inc. - PX - close: 35.26 change: +0.33

WHAT TO WATCH: Spending the past several months building a broad
topping formation, shares of PX look to be in trouble.  After
putting in a convincing double top near the $39 level, the stock
has fallen back to key support near $35.  Yesterday's break of
the 200-dma didn't look good for the bulls, but they did manage
to buy the dip, just above the March lows.  Use a trigger at
$34.50 (just under those lows) and target a drop back to strong
support near $32.  Note that a trade at $34 will generate a new
PnF Sell signal with a downside objective of $29, just above the
bullish support line.




---

Knightsbridge Tankers Ltd. - VLCCF - close: 23.15 change: +1.64

WHAT TO WATCH: The reality that there is a shortage of tankers
available for shipping crude oil around the globe in an
increasing demand environment hasn't been lost on investors, as
shares of VLCCF have come roaring back following the recent dip
to the 100-dma. Yesterday's breakout over $21.50 looked
encouraging and the stock saw strong follow-through today.  After
such a strong 2-day move, we're hesitant to suggest chasing the
stock higher, but a mild pullback and rebound from the $21.50-
22.00 area looks like a great point to enter.  Note that the PnF
chart is once again strongly bullish with a new Buy signal and an
upside target of $36.50.




---

Kronos Inc. - KRON - close: 37.97 change: +1.69

WHAT TO WATCH: After a strong upward move in late April following
the company's earnings report, shares of KRON have been trading
in a tight consolidation range between $35.50-37.50, but that
range looks ready to break to the upside.  The stock rallied
strongly today and rather than showing any late-day weakness
pushed higher to close at its best level since early February.
Entries look favorable on a slight pullback near the $37 level or
on a breakout over today's high.  Target a rally back to strong
resistance near $40-41.




---


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

TIF $34.00 - The past few weeks have not been kind to TIF
investors, as the stock has broken down in a big way, taking out
strong support in the $36-37 area and falling all the way to the
$32 area yesterday.  But today the stock is on the rebound and
while early, this could be setting us up for a nice continuation
short trade.  Wait for this rebound to run its course and then
look for bearish entries on a rollover from the $36-37 area.
Target a drop near $28, the current PnF bearish price target.

PLAB $16.60 - Looking for an aggressive bullish play?  PLAB looks
like a good candidate following today's strong rally in the wake
of the company's earnings report.  The stock soared through the
past few weeks of resistance and follow-through could easily take
the stock up to test strong resistance near $19.  Use a $17
trigger (just over today's high and the 50-dma).

BJ $20.70 - We looked at BJ as a bearish candidate last week when
the stock broke down near its January lows.  As expected, the
stock was due for a bit of a bounce, but the bears hit that
bounce pretty hard today, driving the stock back towards support.
Use a trigger at $19.80, just under last week's lows and look for
the stock to trade down towards the $16 area.  Note that the PnF
chart is already bearish with a downside target of $13, although
the bullish support line currently rests at $16.


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

Pay at the pump
By Jeff Bailey

U.S. stocks recouped the bulk of Monday's losses on Tuesday as
investor sentiment is swayed not only by what is taking place at
home in the U.S., but overseas as well, where great focus has
been given to energy prices as the global economy picks up
momentum.

U.S. Government statistics released this week showed the national
average for a gallon of retail gasoline reached $2.00 for the
first time in history, leaping 7.6 cents over the past week to a
record high of $2.017 a gallon.  While the government forecasted
that the average price for retail gasoline will peak at $2.03 a
gallon in June, industry analysts expect prices to rise further
because of a seasonal increase in demand that usually kicks in
after the Memorial Day weekend.

The continued rise in gasoline prices may have eaten away at
consumer spending habits, where chain store sales edged down 0.8%
in the week ended May 15, versus a 0.3% rise in the previous
week.  Broadline retailers have expressed some concern that
higher gasoline prices may eat into sales should consumers begin
cutting back on discretionary purchases as they fill their tanks
with higher priced gasoline.

Helping alleviate some fears that the consumer's pocketbook has
been totally depleted after the recent 3-month rise in Treasury
yields, which have raised the rate of borrowing costs for
consumers and had negative impact mortgage refinancing,
was the quarterly earnings report from Home Depot (NYSE:HD)
$34.62 +3.43%, where the building products retailer handily beat
Wall Street's earnings forecast.

Early Monday morning, geopolitical events in Iraq saw stocks
drop early in the session, but by Tuesday's close, stocks are
back near Friday's closing prices.

Monday morning's news that the head of Iraq's governing council
had been killed in a car bomb attack had June, Light Sweet Crude
Oil futures (cl04m) spiking to a contract high of $41.85 and
achieving its point and figure chart bullish vertical count of
$41.75, but since that morning high trade, June crude has slipped
back below $40.50, helping alleviate some near-term fears
regarding higher energy prices impact on inflation and the global
economic recovery.

Crude prices dropped in Tuesday's trade despite the Bush
administration rebuffing pressure from Democrats to open the
spigots on the nations emergency oil stockpile to help lower
record gasoline prices.  Saudi Arabia has proposed that OPEC
boost output by 1.5 million barrels per day when the cartel meets
June 3.

Also giving boost to investor sentiment in Tuesday's trade was
Japan's Nikkei 225 gaining 1.96% after the Japanese government
said its economy grew at a 1.4% rate in the first quarter.  The
news helped calm fears that higher oil prices and rising U.S.
interest rates would jeopardize Japan's export-led recovery.

Market internals in today's U.S. trade showed some sign of
renewed bullish leadership trying to build from some deeply
oversold conditions found last week.

The NYSE reported 17 stocks hitting new 52-week highs compared to
59 stocks hitting new lows, which has the 5-day NH/NL average
ratio improving to 12.5% and moving above the still declining 10-
day ratio of 10.8%.

NASDAQ showed similar improvement with 31 new highs and 74 new
lows, but not from as deeply oversold levels where the 5-day
NH/NL average ratio improved for the fourth-straight session to
24.3%, but still remains below its declining 10-day NH/NL average
ratio of 26.6%.


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

Market Averages

DJIA ($INDU)

52-week High: 10753
52-week Low :  8416
Current     :  9968

Moving Averages:
(Simple)

 10-dma: 10062
 50-dma: 10278
200-dma: 10029



S&P 500 ($SPX)

52-week High: 1163
52-week Low :  912
Current     : 1091

Moving Averages:
(Simple)

 10-dma: 1098
 50-dma: 1118
200-dma: 1080



Nasdaq-100 ($NDX)

52-week High: 1559
52-week Low : 1103
Current     : 1397

Moving Averages:
(Simple)

 10-dma: 1407
 50-dma: 1436
200-dma: 1418


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

CBOE Market Volatility Index (VIX) = 19.33 -0.63
CBOE Mkt Volatility old VIX  (VXO) = 19.82 -1.21
Nasdaq Volatility Index (VXN)      = 27.75 -1.44


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

          Put/Call Ratio  Call Volume   Put Volume

Total          0.99        716,116       710,531
Equity Only    0.75        561,884       423,685
OEX            1.88         35,393        66,475
QQQ            1.30        147,692       191,668


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

Bullish Percent Data

           Current   Change   Status
NYSE          61.5    - 1     Bear Confirmed
NASDAQ-100    31.0    - 3     Bear Confirmed
Dow Indust.   66.7    + 0     Bear Confirmed
S&P 500       57.8    - 1     Bear Confirmed
S&P 100       61.0    + 0     Bear 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: 0.85
10-dma: 0.96
21-dma: 1.06
55-dma: 1.05


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    2084      1951
Decliners     774      1107

New Highs      29        35
New Lows       50        40

Up Volume   1288M     1074M
Down Vol.    374M      311M

Total Vol.  1694M     1395M
M = millions


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

Commitments Of Traders Report: 05/04/04

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

Commercials increased their open interest be equivalent
amounts both long and short, while small traders went
net shorter.


Commercials   Long      Short      Net     % Of OI
04/20/04      409,729   421,456   (11,727)   (1.4%)
04/27/04      406,927   416,244   ( 9,317)   (1.1%)
05/04/04      397,964   417,175   (19,211)   (2.4%)
05/11/04      401,365   421,672   (20,307)   (2.5%)

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
04/20/04      136,699    92,982    43,717    19.0%
04/27/04      133,775    90,535    43,240    19.3%
05/04/04      137,112    80,201    56,911    21.6%
05/11/04      135,534    76,987    58,547    27.5%

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


E-MINI S&P 500

Commercials were much more active in the e-mini S&P
contracts, reducing their shorts slightly and
dramatically increasing longs, flipping to net long
for the first time in at least 4 weeks.  Small
traders took the other side of the trade, reducing
longs and increasing their net short position.


Commercials   Long      Short      Net     % Of OI
04/20/04      275,985   355,555    (79,570)  (10.1%)
04/27/04      291,365   370,549    (79,184)  (12.0%)
05/04/04      316,840   370,781    (53,941)  ( 7.8%)
05/11/04      378,696   362,887     15,809     2.1%

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
04/20/04      186,799     69,137   117,662    46.0%
04/27/04      175,788     69,613   106,175    43.3%
05/04/04      119,308     74,407    44,901    23.2%
05/11/04      101,199     94,408     6,791     3.5%

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


NASDAQ-100

Commercials added slightly to their net short position,
while small traders reduced both shorts and longs but
favoring the long side, reducing their overall net short
position.


Commercials   Long      Short      Net     % of OI
04/20/04       54,852     35,964    18,888   20.8%
04/27/04       54,196     33,948    20,248   23.0%
05/04/04       56,931     35,209    21,722   23.6%
05/11/04       57,680     37,410    20,270   21.3%

Most bearish reading of the year: (21,858)  - 08/26/03
Most bullish reading of the year:  21,722   - 05/04/04

Small Traders  Long     Short      Net     % of OI
04/20/04        8,538    19,431   (10,893)  (39.0%)
04/27/04        9,008    20,347   (11,339)  (38.6%)
05/04/04       10,247    24,764   (14,517)  (41.5%)
05/11/04        9,716    21,072   (11,356)  (36.9%)

Most bearish reading of the year: (14,517) - 05/04/04
Most bullish reading of the year:  19,088  - 01/21/02

DOW JONES INDUSTRIAL

Commercials increased their net long position, while
small traders took the other side of the trade,
increasing longs and reducing shorts.


Commercials   Long      Short      Net     % of OI
04/20/04       24,156    22,009    2,147       4.7%
04/27/04       23,676    22,009    1,667       3.6%
05/04/04       24,296    22,181    2,115       4.6%
05/11/04       22,614    21,507    1,107       2.5%

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
04/20/04        5,997     9,631   (3,634)   (23.3%)
04/27/04        5,998     8,868   (2,870)   (19.3%)
05/04/04        6,262     8,155   (1,893)   ( 9.2%)
05/11/04        7,009     7,640   (  631)   ( 4.3%)

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

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


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PremierInvestor.net Newsletter                  Tuesday 05-18-2004
                                                    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
Closed Plays:     FCX
Stock Splits:     EWBC, NARA, PNM, ZLC

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


=================================================================
Closed Plays
=================================================================

Freeport McMoran - FCX - cls: 29.79 chng: +1.20 stop: 29.75

As noted over the weekend, we were growing concerned about
whether FCX really had any more downside in store without putting
in a credible rebound.  To protect open positions, we suggested
lowering stops to just above the 10-dma (now at $29.21), which
had proved to be stiff resistance throughout the recent decline.
Sure enough, that average turned back the bulls on Monday, but
they came back strong today, driving FCX right through to its
best level in over a week.  This rebound may turn out to be just
another bearish entry point, but we're happy to have captured a
piece of the slide lower and be on the sidelines, especially with
the strength of the late-afternoon move.

Picked on April 25th at     $32.59
Change since picked          -2.80
Earnings Date              4/20/04 (confirmed)
Average Daily Volume =    3.41 mln





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

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

EWBC banks on a 2-for-1 split in the form of a dividend

East West Bancorp Inc (NASDAQ:EWBC) announced before today's
trading session that its Board of Directors had approved a 2-for-
1 stock split of its common shares, in the form of a 10 percent
cash dividend.

The payable date for the stock split is June 20th, 2004 to
shareholders on record as of June 3rd.  On a post-split basis,
EWBC will have approximately 50.3 million shares outstanding.

About the company:
East West Bancorp is a publicly owned company, with $4.6 billion
in assets, whose stock is traded on the Nasdaq National Market
under the symbol "EWBC". The company's wholly owned subsidiary,
East West Bank, is the fourth largest independent commercial bank
headquartered in Los Angeles. East West Bank serves the community
with 40 locations throughout Los Angeles, Orange, San Francisco,
Alameda, Santa Clara, and San Mateo counties and a Beijing
Representative Office in China. It is also one of the largest
financial institutions in the nation focusing on the Chinese-
American community. For more information on East West Bancorp,
visit the company's website at www.eastwestbank.com.

---

NARA banks on a 2-for-1 split in the form of a dividend

Nara Bancorp, Inc (NASDAQ:NARA) announced before today's trading
session that its Board of Directors had approved a 2-for-1 stock
split of its common shares, in the form of a 10 percent cash
dividend.

The payable date for the stock split is June 15th, 2004 to
shareholders on record as of May 31st.  Each shareholder will
receive a dividend of one additional share of NARA for each share
owned.

About the company:
Nara Bancorp, Inc. is the parent company of Nara Bank, N.A. which
was founded in 1989. Nara Bank is a full-service commercial bank
headquartered in Los Angeles with twenty-five branches and loan
production offices in the United States, and one representative
office in Seoul, Korea. Nara Bank operates full-service branches
in California and New York, with loan production offices in
California, Washington, Colorado, Georgia, Illinois, New Jersey
and Virginia. Nara Bank was founded specifically to serve the
needs of Korean-Americans, one of the fastest growing Asian
ethnic communities over the past decade. Presently, Nara Bank
serves a diverse group of customers mirroring its communities.
Nara Bank specializes in core business banking products for small
and medium-sized companies with emphasis in commercial real
estate and business lending, SBA lending and international trade
financing. Nara Bank is a member of the FDIC and an Equal
Opportunity Lender. For more information on Nara Bank, please
call our Los Angeles office at 213-639-1700, our New York office
at 212-279-2790, or visit our website at www.narabank.com. Nara
Bancorp, Inc. stock is listed on Nasdaq under the symbol "NARA".

---

PNM energizes shares with a 3-for-2 stock split

Before today's opening bell PNM Resources (NYSE:PNM) announced
that its Board of Directors had approved a 3-for-2 stock split of
its common shares.

The payable date for the stock split is June 11th, 2004 to
shareholders on record as of June 1st.  Shares will resume
trading on a split-adjusted basis on June 14th.

About the company:
PNM Resources is an energy holding company based in Albuquerque,
New Mexico. PNM, the principal subsidiary of PNM Resources,
serves about 460,000 natural gas customers and 400,000 electric
customers in New Mexico. The company also sells power on the
wholesale market in the Western U.S. PNM Resources stock is
traded primarily on the NYSE under the symbol PNM. For more
information about our company, see our Web site at www.PNM.com.

---

Zale's announces 2-for-1 stock split

Zale's (NYSE:ZLC) announced before the opening bell today that
its Board of Directors had approved a 2-for-1 stock split of its
common shares.

The payable date for the stock split is June 8th, 2004 to
shareholders on record as of May 28th.

About the company:
Zale Corporation is North America's largest specialty retailer of
fine jewelry operating approximately 2,220 retail locations
throughout the United States, Canada and Puerto Rico, as well as
online. Zale Corporation's brands include Zales Jewelers, Zales
Outlet, Zale Direct at www.zales.com, Gordon's Jewelers, Bailey
Banks & Biddle Fine Jewelers, Peoples Jewellers, Mappins
Jewellers and Piercing Pagoda. Additional information on Zale
Corporation and its brands is available on the Internet at
www.zalecorp.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

BUD     Anheuser-Busch Cos Inc     51.82    +0.60
TLM     Talisman Energy Inc        60.48    +1.08
KIM     Kimco Realty Corp          41.53    +0.55
KMRT    Kmart Holding Corp         48.62    +4.32
AVB     Avalonbay Communities      51.87    +0.71


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

None


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

IMCL    Imclone Systems Inc        74.00    +2.64
NE      Noble Corp                 35.15    +1.10
IVX     IVAX Corp                  23.99    +1.39


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

CAH     Cardinal Health Inc        69.20    -4.24
MLEA    Millea Holdings Inc (ADR)  56.00    -5.50
SNP     China Petro & Chem (ADS)   32.08    -2.86
OMC     Omnicom Group Inc          78.63    -1.40
PX      Praxair Inc                34.93    -1.34


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

LLTC    Linear Technology Corp     36.67    -0.85


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





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