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Daily Newsletter, Thursday, 06/03/2004

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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.


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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


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