PremierInvestor.net Newsletter Thursday 06-03-2004 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: Waiting for Jobs Market Sentiment: Traders Brace for Jobs Report Watch List: Gravity Play ================================================================= MARKET WRAP (view in courier font for table alignment) ================================================================= 06-03-2004 High Low Volume Advance/Decline DJIA 10195.91 - 67.06 10281.92 10193.78 1.21 bln 725/2109 NASDAQ 1960.26 - 28.72 1983.86 1960.26 1.50 bln 846/2170 S&P 100 543.92 - 3.66 548.40 543.87 Totals 1571/4279 S&P 500 1116.64 - 8.35 1125.31 1116.56 RUS 2000 562.44 - 11.12 573.56 562.44 DJ TRANS 2962.96 - 38.89 3001.13 2962.92 VIX 17.03 + 0.95 17.04 16.16 VXO 17.34 + 1.10 17.45 16.44 VXN 23.93 + 1.32 23.98 22.86 Total Volume 3,391M Total UpVol 709M Total DnVol 2,643M 52wk Highs 103 52wk Lows 82 TRIN 1.58 PUT/CALL 1.13 ================================================================= =========== Market Wrap =========== Waiting for Jobs Jonathan Levinson An afternoon decline picked up speed and urgency as the session drew to a close, with the Dow declining 67.06 to finish at 10195.91 and the Nasdaq losing 28.7 to close at 1960.3. While volume was light overall there were big upside moves in the volatility indices, with the VXO rising 6.77% to close at 17.34 and the QQV rising 7.03% to close at 22.07, well off its lows below 19. After the bell, the selling accelerated with the futures setting lower lows. Breadth was decisively negative with decliners more than doubling advancers on the NYSE and Nasdaq, with down volume tripling up volume on the two exchanges- on the AMEX, down volume nearly sextupled up volume. Daily Dow Chart The Dow closed right on the ascending support line that forms a rough pennant against the declining resistance off the mid- February high. Its equivalent on the Nasdaq futures was broken to the downside today, helped along by the strong selling after 4PM, but on the Dow it held. While the daily cycle oscillators remain in upphases, we saw in last week's discussion that the weekly and monthly cycles remain down. This suggests that the daily cycle upphase is corrective within that longer-duration downtrend, which lines up with the pattern of lower lows and lower highs since February. A break below the rising daily support line, which will occur if tomorrow sees a failure to close in the green, suggests that the daily cycle upphase is coming to an end and should pave the way to a retest of the 9900 level or lower. A move above 10290, current resistance for the daily cycle upphase, should set up a test of 10360. If pulls can break that upper descending resistance line, they'll have a shot at turning this pattern into a bull wedge, but to do so will take a lot of buying from here. Daily Nasdaq Chart The Nasdaq closed below the rising pennant support line, and unlike the Dow, its 1o-day stochastic left off with the suggestion of a bearish kiss. The descending upper resistance line from February wasn't even touched, and a rollover from this lower, weaker high would be very bearish indeed. Note that the close was also below the 50 day EMA, with the 22 day EMA next support just above 1950. Next support is at 1940, followed by 1920. A close above 1996 should see a test of upper descending resistance at 2015, which would have bears significantly antsier than they currently are, as that same bull-flag interpretation discussed above would be on the table above that level. Before the bell, it was announced that the ECB would leave its overnight rate unchanged as expected. The US Dollar Index had been strong overnight and remained so on the release the news, with US equity and bond futures negative approaching 8:30 and the release of key US economic data. The Q1 non-farm productivity revision came in above the 3.7% estimated at 3.8%, up from the 3.5% initially reported. Unit labor costs exceeded expectations of .5% annual rate, posting 8%. This indicates greater than expected inflationary pressures on US corporations. Initial jobless claims were also released at 8:30AM, with the seasonally-adjusted number of new claims down 6K to 339K, missing expectations of 335K for the week. The total number of workers receiving unemployment assistance rose 65K to 3M, which is a 5- week high. The week moving average of initial jobless claims rose by 4,250 to 341K, and the previous week's reading was revised up by 1K to 345K. Bonds spiked lower on the release of the productivity numbers, but bounced immediately when the disappointing employment data hit the wires moments later. The productivity data reflected greater than expected inflation, but also an impressive worker- output-per-hour reading that shows the fastest productivity gains in over 30 years. Whether this is the result of unprecedented outsourcing of jobs or a genuine increase in domestic output-per- hour is a key interpretive question, but for the moment the persistence of US unemployment remains an important fly on the recovery's wedding cake. The record indulgence in debt at all levels of North American society sponsored by the Fed's reflationary / stimulative policies is less tenable if workers are unable to grow their salaries at a rate sufficient to keep ahead of broader price inflation. On that topic, oil was once again a dominant topic in the headlines. It was reported in the early morning that Iraq's oil minister stated that his goal is to reach 2 million bpd production for export and overall output of 2.8 million bpd this year. Just after the bell, Qatari Oil Minister Abdullah al- Attiyah announced that OPEC had agreed to increase oil output by 2 million bpd immediately, with an additional 500,000 bpd increase to follow in August. Oil futures rose on the news, which was less of an increase than anticipated by traders. As Reuters reported, "This is bullish," said Nauman Barakat of brokers Refco in New York. "Forget the promise of another 500,000, this is just plain two million. The market was convinced it would get 2.5 million so this could wave a red flag to the bulls." From OPEC's most recent press release today: Having reviewed market developments since its 130th Meeting, held on 31 March 2004, as well as the supply/demand outlook, the Conference noted with concern that, as a result of several factors, prices have continued to escalate, despite the efforts by OPEC Member Countries to meet market requirements. These factors are mainly the robust growth in demand in the USA and China, which had not been fully anticipated; geopolitical tensions; and refining and distribution industry bottlenecks in some major consuming regions, coupled with more stringent product specifications. Combined, these factors have led to unwarranted fear of a possible future supply shortage of crude oil, which has, in turn, resulted in increased speculation in the futures markets with substantial upward pressure on crude oil prices. Given current high and volatile prices and prevailing concerns regarding supply security, and in order to ensure continued, robust, global economic growth, especially in the economies of fellow Developing Countries, the Conference decided to increase the OPEC production ceiling (excluding Iraq) to 25.5 mb/d, with effect from 1 July 2004, and to 26 mb/d, with effect from 1 August 2004, in order to ensure adequate supply and give a clear signal of OPEC’s commitment to market stability and to maintaining prices at acceptable levels to both producers and consumers. The Conference also decided to convene an Extraordinary Meeting in Vienna, Austria, on 21 July 2004 to review market developments. Shortly following that release, it was announced that the United Workers Union of Venezuela oil workers had voted to commence a general strike at all industrial installations of the state-owned Ecopetrol to commence on June 22, 2004. I was unable to determine the amount of oil that such could involve. The Department of Energy reported crude oil stocks up 2.8M barrels for the week ended May 28. Gasoline supplies rose 1.3M barrels and refineries ran at 94.9% capacity. Distillate inventories rose by 200,000 barrels, and U.S. natural gas stocks rose by 87 bcf to 1.564 trillion cubic feet. The American Petroleum Institute delayed its data today, citing technical difficulties, but later announced an increase in crude stocks by 860,000 barrels and in distillate inventories 1.4M barrels. For the day, crude oil futures finished lower by 1.88% at 39.21. At 10AM, the Commerce Department released the April factory report, with factory orders falling 1.7% following March's 5% gain, the steepest decline since April 2003. Expectations were for a drop of 1.2%. Durable goods orders were revised lower to a 3.2% drop rom the previously reported 2.9%, the largest drop since September 2002. Non-durables were unchanged. The May non- manufacturing index dropped to 65.2%, missing expectations of 66.3% following the record 68.4% April reading. Readings over 50 are said to indicate expansion overall. President Bush announced that CIA director George Tenet will resign in July for personal reasons, praising his "superb" job. There was speculation that the move was somehow related to the President's meeting with private counsel yesterday and the ongoing "Wilsongate" affair, but overall reaction to the news was muted. In corporate news. there was a slew of May updates from retailers. Some highlights include Sears, Roebuck (S) reporting that May domestic same-store sales fell 3.7% y-o-y and total sales fell 4.7% to $2.08B. WMT reported a 5.9% y-o-y increase in same-store sales, led by its Sam's Club chain, with total sales up 13% to $21.43B. Costco (COST) reported a 16% y-o-y same-store increase, with total sales for the month rising 19% to $3.8B. May Department Stores (MAY) reported same-store lower by 3.8% from May 2003, with total sales down 2.7% to $978M. Kohl's (KSS) reported same-store sales higher by 5% y-o-y and total sales higher by 20% to $815.8M. Nordstrom (JWM), pronounced "Nahdstram" in the Commonwealth of Massachusetts, reported May same-store sales up 9.4% from May 2003, and total sales higher by 12% to $499M. Gap (GPS) reported a 6% same-store increase and net sales of $1.2B for May. The RLX closed lower by .47% at 403.64. After the bell, INTC gave its mid-quarter update, raising its Q2 revenue target to $8B - $8.2B and upping its estimate for gross margins to 60%-61%. Analysts had been expecting revenue of $7.98B, and the upside surprise combined with the lack of material news helped gap INTC to a spike high of 28.40 on the news, following which price settled into a range just below 28 as of this writing. The company cited strength in demand for communications products and said that demand for microprocessors, chipsets and motherboards is consistent with previous expectations. For tomorrow, we await the May employment report, including nonfarm payrolls (est. +225K), the unemployment rate (est. 5.6%), hourly earnings (est. .2%) and the average workweek (est. 33.8). I noted in the Futures Wrap that bonds diverged to the upside today, failing to fall despite the strong showing from the US Dollar Index. I would take that divergence to indicate the market's expectation for a downside surprise in tomorrow's 8:30AM report, but we'll find out soon enough. I would expect a terrible report to drop the US Dollar Index and rally bonds, equities and metals, while a strong report should do the reverse. An unexciting report would likely leave the market to its own devices, which here looks like a trend of a strong dollar and weaker equities. Tomorrow will help complete the picture. =============================== Market Sentiment =============================== Traders Brace for Jobs Report - J. Brown Thursday proved to be a busy day. Action was volatile in the oil sector with crude rocking back and forth over the $40 level but in the end oil slipped lower. OPEC did approve a production hike but the general consensus was the 2 million barrel hike merely legitimized what cartel members were already pumping. Investors grew exceedingly cautious over Intel's mid-quarter update after the bell with the SOX semiconductor index leading the NASDAQ lower. Fortunately Intel (INTC) offered positive news and guided revenues to the upper end of their previous guidance. This has the tech sector poised for a rebound tomorrow if the jobs number doesn't disappoint. Tomorrow is all about the jobs number. As long as it's not too hot or too cold we should be good. If the number comes in too hot then investors will worry that the Fed may have to hike rates faster than expected and further impact the economic recovery. Overall the market slipped in a broad sell off as traders decided to take some money off the table ahead of Intel's announcement and the jobs report. Every sector slipped lower with the heaviest losses in technology and airlines. It is noteworthy that the Dow Transports may have turned in a technical bearish reversal with today's decline erasing yesterday's strong gain. The hardware sector also took it on the chin with a big drop after several days of sideways action. Declining stocks outnumbered advancers 3-to-1 on the NYSE and almost 3-to-1 on the NASDAQ. Down volume swamped up volume by more than 4-to-1 on the NSYE and more than 3-to-1 on the NASDAQ. Stepping back and looking at the technical picture on many of the major indices it would appear that we're setting up for a roll over under resistance. This just happens to coincide with an upturn in the volatility indices. If the jobs number doesn't excite then next week could be a tough one. ----------------------------------------------------------------- Market Averages DJIA ($INDU) 52-week High: 10753 52-week Low : 8861 Current : 10195 Moving Averages: (Simple) 10-dma: 10114 50-dma: 10253 200-dma: 10077 S&P 500 ($SPX) 52-week High: 1163 52-week Low : 962 Current : 1116 Moving Averages: (Simple) 10-dma: 1111 50-dma: 1117 200-dma: 1087 Nasdaq-100 ($NDX) 52-week High: 1559 52-week Low : 1180 Current : 1445 Moving Averages: (Simple) 10-dma: 1442 50-dma: 1442 200-dma: 1428 ----------------------------------------------------------------- CBOE Market Volatility Index (VIX) = 17.03 +0.95 CBOE Mkt Volatility old VIX (VXO) = 17.34 +1.10 Nasdaq Volatility Index (VXN) = 23.93 +1.32 ----------------------------------------------------------------- Put/Call Ratio Call Volume Put Volume Total 1.13 518,239 585,165 Equity Only 1.01 407,717 409,788 OEX 2.60 12,636 32,850 QQQ 2.36 60,151 142,234 ----------------------------------------------------------------- Bullish Percent Data Current Change Status NYSE 64.8 + 1 Bear Confirmed NASDAQ-100 38.0 + 0 BULL ALERT Dow Indust. 66.7 + 0 Bear Confirmed S&P 500 61.6 + 1 Bear Confirmed S&P 100 61.0 + 1 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: 1.11 10-dma: 0.94 21-dma: 1.02 55-dma: 1.07 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 725 846 Decliners 2109 2170 New Highs 57 82 New Lows 24 24 Up Volume 283M 337M Down Vol. 1210M 1140M Total Vol. 1504M 1497M M = millions ----------------------------------------------------------------- Commitments Of Traders Report: 05/25/04 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 movement from the commercial traders. It looks like they shifted a handful of money from shorts to longs. Conversely the small traders have rotated some money from longs to shorts. Commercials Long Short Net % Of OI 05/04/04 397,964 417,175 (19,211) (2.4%) 05/11/04 401,365 421,672 (20,307) (2.5%) 05/18/04 394,352 423,258 (28,906) (3.5%) 05/25/04 400,713 420,764 (20,051) (2.4%) 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 05/04/04 137,112 80,201 56,911 21.6% 05/11/04 135,534 76,987 58,547 27.5% 05/18/04 139,647 74,597 65,050 30.4% 05/25/04 136,086 79,060 57,026 26.5% 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 There was a big drop in longs by the commercial traders but it was coupled with a significant drop in shorts too. They remain net bullish on the S&P 500. Small traders have grown net bearish after last week's bullish reading. Commercials Long Short Net % Of OI 05/04/04 316,840 370,781 (53,941) ( 7.8%) 05/11/04 378,696 362,887 15,809 2.1% 05/18/04 390,484 357,157 33,327 4.5% 05/25/04 353,722 336,406 17,316 2.5% 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 05/04/04 119,308 74,407 44,901 23.2% 05/11/04 101,199 94,408 6,791 3.5% 05/18/04 62,216 87,269 25,053 16.8% 05/25/04 91,515 100,759 ( 9,244) ( 4.8%) Most bearish reading of the year: (77,385) - 09/02/03 Most bullish reading of the year: 449,310 - 06/10/03 NASDAQ-100 Commercial traders have upped their long positions and remain net bullish on the NDX. Small traders have likewise upped their short positions and remain net bearish. Commercials Long Short Net % of OI 04/27/04 54,196 33,948 20,248 23.0% 05/04/04 56,931 35,209 21,722 23.6% 05/18/04 58,376 37,528 20,848 21.8% 05/25/04 59,891 37,630 22,261 22.8% Most bearish reading of the year: (21,858) - 08/26/03 Most bullish reading of the year: 22,261 - 05/25/04 Small Traders Long Short Net % of OI 05/04/04 10,247 24,764 (14,517) (41.5%) 05/11/04 9,716 21,072 (11,356) (36.9%) 05/18/04 9,843 18,935 ( 9,092) (31.6%) 05/25/04 10,184 20,653 (10,469) (33.9%) 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 Commercial traders are adding to their short positions while small traders are adding to their longs, which is generally par for the course. Guess who is right more often? Yup, the commercial traders. Commercials Long Short Net % of OI 05/04/04 24,296 22,181 2,115 4.6% 05/11/04 22,614 21,507 1,107 2.5% 05/18/04 22,257 22,444 ( 187) (0.4%) 05/25/04 23,578 24,632 (1,045) (2.2%) 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 05/04/04 6,262 8,155 (1,893) ( 9.2%) 05/11/04 7,009 7,640 ( 631) ( 4.3%) 05/18/04 9,098 6,591 2,507 16.0% 05/25/04 9,623 6,614 3,009 18.5% 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 --------------------------------- Gravity Play Kohl's Corp. - KSS - close: 47.74 change: +0.10 WHAT TO WATCH: After grinding its way to new multi-year lows in late April, KSS has had a nice relieve rally over the past month, but it looks like the party is just about over. The stock ran into its long-term descending trendline on Tuesday and has been stalled there all week. Entries look favorable near current levels, targeting a drop into the $42-43 support area. Use a tight stop just above the 200-dma. --- Brunswick Corp. - BC - close: 39.64 change: -0.88 WHAT TO WATCH: Over the past month we've watched as shares of BC has been building the right shoulder of its H&S topping formation and that job is almost complete now. All that is left is for the stock to break below $38, violating the neckline. Use a trigger under $38 and target an initial move to $34, with an eye towards a continued slide down to $32, the target from the H&S pattern wants it confirms. --- Rambus, Inc. - RMBS - close: 17.53 change: -0.91 WHAT TO WATCH: After watching their precious stock top out just over the $35 level early in the year, RMBS investors have been tortured by watching the share price get cut in half by the end of April. Over the past month, the stock has been trying to build a base near $18, but that base broke on heavy volume today. Use a trigger under today's low and target a drop towards what should be strong support at $15. --- Lowe's Companies - LOW - close: 54.49 change: +0.49 WHAT TO WATCH: After dipping to fill the gap from last summer, shares of LOW found support near $49 and rallied right to descending trendline resistance near $53.50 last month. But rather than stopping, the stock pushed right through, generating a decent breakout. After more than a week of consolidating just over that broken trendline, LOW looks ready to run again. Use a trigger over today's high and target a rally back to the February highs near $58. --- =================== On the RADAR Screen =================== MERQ $46.60 - Is this a bullish entry point? After rebounding from the $43 area and then rallying through the $48 level late last month, MERQ is on a solid PnF Buy signal with an upside target of $59. The current weakness looks like a second chance for bullish entries on a dip near $46. Look for a move first to $50 resistance and then up to the $52-53 area. HGSI $10.79 - Remember last week when we were looking at the potential for downside continuation in shares of HGSI, but were concerned about a near-term bounce? It looks like we got that bounce out of the way and the stock is tipping over again, having found lower resistance just over $11.00, Another failed bounce below the 10-dma can be used for entry, as can a break below last week's lows. Once the stock breaks $10, we can look for a continued slide to strong support in the $8.50-9.00 area. ================================================================= 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 06-03-2004 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: ENZN, NOVL Closed Plays: VRSN Stock Splits: MGPI 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 ================================================================= ENZN - non-tech short play - Lower stop from $15.41 to $15.01 We're encouraged by the drop under the $14.00 level but we need to see ENZN break its May lows. --- NOVL - high risk/reward short play - Exit alert! NOVL has exceeded our first target of $8.00 with today's 11% drop to $7.71. Volume was very strong and indicates a good opportunity that the decline will continue. We are highly recommending that traders consider taking profits or tighten stops. We're going to lower our stop loss to $8.01. Be careful. NOVL could bounce given the Intel news tonight. ================================================================= Closed Plays ================================================================= Verisign Inc. - VRSN - cls: 17.32 chng: -0.72 stop: 17.40 We don't have much to show for our efforts after covering VRSN for nearly a month. Twice the stock fell short of breaking over the $19 level and the second time proved terminal. The real clue that things were changing came late last week with the drop under the rising trendline. But we decided to give the bulls one more chance, since the stock was holding over the 20-dma. That silver lining vaporized this morning, with the stock plunging at the open, stabilizing just over $17.50 and then selling off again into the close and ending solidly below our stop after breaking the 100-dma. Clearly, we're discontinuing coverage on this stock and any remaining open positions should be closed out on Friday. Picked on May 5th at $17.40 Change since picked -0.08 Earnings Date 4/22/04 (confirmed) Average Daily Volume = 2.66 mln ================================================================= Stock Splits ================================================================= Announcements ------------- MGPI plants a 2-for-1 stock split This afternoon, around lunchtime, MGP Ingredients (NASDAQ:MGPI) announced that its Board of Directors had approved a 2-for-1 stock split of its common shares. The stock split will be payable on July 15th, 2004 to shareholders on record as of June 30th. Post-split MGPI will have 15.8 million shares outstanding. About the company: MGP Ingredients has served customers as an innovative leader in grain processing technology for well over half a century. Today, MGPI supplies the marketplace with a growing array of specialty proteins and starches for use in multiple food systems, personal care products, pet applications and bio- plastics. The company also produces food grade alcohol for beverage and industrial applications, and fuel grade alcohol, commonly known as ethanol. (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 KFT Kraft Foods Inc 30.66 +0.61 ATH Anthem Inc 89.65 +1.16 AET Aetna Inc 84.73 +2.37 MTG MGIC Investments 73.97 +0.62 AZO AutoZone Inc 87.97 +0.94 ANF Abercrombie & Fitch 37.17 +0.72 --------------------------------------- Breakout to Upside (Stocks $5 to $20) --------------------------------------- CMVT Comverse Technology 18.48 +1.06 CVTX CV Therapeutics 15.54 +2.33 LTRE Learning Tree Intl 15.40 +1.15 PETS Petmed Express Inc 9.51 +1.50 IPIX IPIX Corp 12.53 +4.26 --------------------------------------- Breakout to Upside (Stocks over $20) --------------------------------------- FRO Frontline Ltd (ADR) 38.47 +1.67 TLB Talbots Inc 37.88 +2.87 BGG Briggs Stratton 85.90 +2.50 NMG.A Neiman Marcus 52.62 +1.14 ARO Areopostale Inc 27.97 +1.87 KNSY Kensey Nash Corp 35.88 +1.54 ------------------------------------------- Breakout to Downside (Stocks over $20) ------------------------------------------- BRL Barr Labs 40.96 -1.33 EAT Brinker Intl 35.10 -1.11 PSUN Pacific Sunwear 20.15 -1.30 SSNC SS&C Technologies 20.68 -1.99 CACH Cache Inc 24.24 -1.58 ----------------------------------------- Recently Overbought With Bearish Signals (Stocks over $20) ------------------------------------------- DOW Dow Chemical 38.54 -1.77 CME Chicago Mercantile Exchg 118.31 -4.89 GTK GTech Holdings 54.80 -1.08 ESL Esterline Technology 24.92 -1.06 HANS Hansen Natural Corp 23.39 -2.02 PD Phelps Dodge 65.47 -1.46 ================================================================= 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.
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