Option Investor
Newsletter

Daily Newsletter, Tuesday, 06/08/2004

HAVING TROUBLE PRINTING?
Printer friendly version
PremierInvestor.net Newsletter                  Tuesday 06-08-2004
                                                    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:      Major Resistance Ahead
Watch List:       When In Pamplona
Market Sentiment: Upbeat but cautious


=================================================================
MARKET WRAP  (view in courier font for table alignment)
=================================================================
      06-08-2004           High     Low     Volume   Adv/Dcl
DJIA    10432.52 + 41.40 10432.81 10353.05 1.46 bln 1473/1721
NASDAQ   2023.53 +  2.90  2023.54  2008.30 1.47 bln 1342/1719
S&P 100   556.74 +  1.05   556.88   553.43   Totals 2815/3440
S&P 500  1142.12 +  1.70  1142.16  1135.45
W5000   11109.09 +  9.10 11120.32 11061.27
SOX       489.41 +  1.20   489.41   481.61
RUS 2000  577.91 -  0.99   578.90   575.70
DJ TRANS 3072.40 + 32.30  3072.45  3030.72
VIX        15.01 -  0.38    15.88    15.00
VXO (VIX-O)13.75 -  0.95    15.17    13.75
VXN        22.26 -  0.39    23.10    22.10
Total Volume 3,116M
Total UpVol  1,648M
Total DnVol  1,388M
Total Adv  3137
Total Dcl  3787
52wk Highs  202
52wk Lows    49
TRIN       0.92
NAZTRIN    0.66
PUT/CALL   0.86
=================================================================

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

Major Resistance Ahead
by Jim Brown

You could not tell it from the indexes during the morning
session with red across the board but the market is still
in rally mode. They did not stray far from the bullish
trend started on Monday despite the negative start. The
Russell was the only index to finish in the red although
gains on all but the Dow were slight. The good news was
a consolidation in place after the monster move on Monday
and a bullish close at the highs. It would appear the stage
was set for another big move but in which direction?

Dow Chart - Daily


Nasdaq Chart - Daily


SOX Chart - Daily



The economic reports were mixed today with the Chain Store
Sales showing only a slight gain for the week after posting
a loss last week. Consumers are not rushing to the stores
now that the income tax refund checks are slowing.

Slightly bigger news came from the Richmond Fed Manufacturing
Survey which rose to 22 in May from 13 in April. While the
headline number posted a large jump there was trouble in the
components. New orders fell to 12 from 17 and back orders
dropped into negative territory at -1 and down from +9 in
April. The six-month outlook also fell to 16 from 22. The
only really bright component was employment which jumped
from +1 to +9 and the strongest reading in over two years.
The new orders component was the lowest reading since Oct.
The picture is clear that manufacturing may have peaked in
early May and is beginning to decline into the summer
doldrums. It is ironic that employment peaked to a two
year high just as orders and backlog dropped off.

Wednesday we will see Mortgage Applications, Labor Turnover
and Wholesale Trade. The NY Fed President will speak at
11:15 and the Kansas Fed President at 4:15. Several
previously scheduled events have been rescheduled due to
the Reagan services on Friday. The PPI has been moved to
Thursday from Friday. Trade Balances have been moved to
Monday from Friday along with Consumer Confidence.
Greenspan's confirmation testimony has been moved to June
15th from Thursday. The Russell rebalance announcement will
still be on Friday and will prevent a lot of positioning
that normally occurs on announcement Friday. Look for
Monday to have some added Russell volatility added to
option expiration week.

With minimum economic news today and very little stock news
the markets were left with some huge gains from Monday that
needed to be digested. Early in the morning Greenspan sent
traders an after dinner mint that was tough to chew. In a
speech on economic developments he as much as said the Fed
was going to raise faster than expected. There was all the
required qualifications and the doublespeak but the message
was clear. The economy is growing and while we think inflation
is under control we are prepared to act aggressively at any
sign of increased inflation. He then went on to target things
like oil prices that could cause increased inflation. He
kept the measured pace phrase but the general context of
the speech was bullish towards the economy and concern
inflation might suddenly appear.

He pointed out that business have suddenly picked up a
significant degree of pricing power and moved away from
heavy discounting. In the first four months of this year
consumer prices rose +4.4% compared with only +1.9% for
all of last year. Core prices, excluding food and energy,
have risen +3% compared to +1.3% for all of 2003. The Fed
rate hike picture is clear and it is soon. The Fed funds
futures are still predicting +75 basis points by the Aug
meeting. No change in that prediction but the chance of
June being +25 and Aug +50 are now almost 100%.

Traders have already priced this into the market and the
Greenspan comments today only riled the markets for a short
period but they did cause uneasiness. Whenever the Fed
starts talking about getting aggressive the memory of the
1994 parallel quickly returns. This memory capped the
morning rebound and kept us from moving higher at the
close.

The offset to the Greenspan comments was a serious drop in
oil prices just after 1:45. The price of crude dropped from
$38.20 to $37.20 in the last 30 min of trading ending with
a -1.50 drop for the day. This is a five-week low and a move
under the 50dma, a level that has held prices since last
September. Traders are afraid of a build in U.S. supplies
and an end to price speculation. OPEC comments were flowing
again today and Saudi Arabia said they would pump as much
oil as anybody was willing to take. Oil and Gas supplies
will be announced at 10:30 tomorrow morning.

The sudden drop in crude prices sent the Dow and S&P
soaring at 2:PM but they could not hold their gains once
the oil market closed. Sellers appeared at resistance and
the indexes began a late afternoon plunge. The Dow fell
from 10432 to 10385 in only a matter of minutes but once
the 10400 level was broken with a sell program the buyers
rushed into fill the gap. The Dow quickly recovered its
-45 point drop and finished back near 10430. This was the
first close over 10400 in over a month. The Dow has risen
+500 points since the May 25th low without any material
profit taking. The Dow is approaching serious resistance
at 10450-10550.

The Nasdaq recovered from its bout of morning depression
and recovered to close over 2020 for the first time since
April 27th. The Nasdaq is up +60 points since the pre
Intel swoon last week. The Nasdaq is also approaching
very serious resistance at 2050-2070.

We talk about the Dow and Nasdaq as "the" market quite
often but the real market is more properly reflected
in the broader S&P and Russell-2000. The S&P closed
at 1141.50 and right at the beginning of very serious
resistance from 1140-1150. Where the Nasdaq has a few
points to run before strong resistance the S&P is there
already. This suggests that further gains this week
could be really tough to manage.

Along with the picture of resistance on the various
indexes above there is another form of resistance brewing.
I have not spoken of this in quite a while but like a bad
penny it keeps turning up again. The VXO closed at an all
time low (for this symbol) of 13.75. In the year since the
VIX was converted to a complicated formula to calculate
volatility from a wider range of SPX options the VXO (old
VIX) has continued to keep time with the various market
swings. The close today is a warning siren that there is
entirely too much bullishness given the current environment.
The VXO/VIX is calculated on the SPX. As such you would
expect a strong correlation between SPX movement and VXO
movement.

Chart of VXO-SPX - Daily


Chart of VXO-RUT - Daily



I had never compared a Russell chart to the VXO before but
the reaction was equally amazing. On both the SPX and RUT
charts whenever the VXO hit the low 14s the upward market
momentum completely stopped. There has not been one single
day since mid January where the markets made a new high
after the VXO hit 14 without first seeing a sell off. Some
of the sell offs were dramatic. In late April the VXO hit
14 on two consecutive days and a -60 point SPX drop followed.
I am not asking you to take my word, simply compare the
charts above. The VXO is flashing a strong warning that
the rally may be nearing its end.

We all know that the VXO can go below 14. That just happens
to be its recent trigger point. I am not trying to build a
case that we always have some kind of response every time
the VXO hits a particular level. I am only pointing out that
Since January the markets have behaved in a particular way
whenever the VXO hit 14. That is six times in six months.
If this was a horse race and number 14 was running I would
bet on it to win over Smarty Pants every time.

So what is this telling us? The markets are on a roll. Even
bad news has no impact and good news just adds fuel to the
flames. Shorts are getting squeezed at ever turn and old
resistance levels are falling daily. Still this rally has
been built on very light volume. We have not traded 4B
shares since May-19th and the volume continues to drop each
day. Today was only 3.1B shares. The Nasdaq has rallied in
June on 22% less than its average daily volume for May. We
have not hit 2B shares on the Nasdaq since May-3rd. Volume
today was only 1.4B. To put it bluntly there is no conviction
to this rally. That is not always bad but it is certainly
something to watch for. It will take conviction to move
much higher.

The SPX is right at the beginning of very strong resistance
and there is no real event to push it higher. All the good
news is priced in and all the bad news has been discounted.
In short we may be running out of news just when we need a
really strong catalyst to break the current resistance
levels. Using the SPX chart below you can see the very
strong resistance range we are facing.

SPX Chart - Daily




For the rest of the week I would be very cautious about
being long. We have some huge event risk with the G8 meeting
in progress in Georgia and the influx of VIPs for the Reagan
services on Friday. Expiration is next week and we could see
some real volatility over the next two days as those
positions are rolled forward before the weekend event risk.
We are only three weeks from the June-30 Fed meeting and
Iraq turnover. Plenty of opportunity for an event to spoil
the party. We had news of pending Al Qaeda attacks on the
U.S. on Monday and the market did not even blink. They will
blink when it happens for real.

I told you on Sunday to be ready for a rally and prepare
to buy any dips. Unfortunately we saw the rally but no dips.
The rally exploded out of the gate on Monday and added to
last weeks gains. Now I am suggesting being cautious about
being long. We can move higher but it probably will not be
a straight run and will likely be very choppy and range
bound. I feel the most likely direction will be flat to
down with very minimal additional gains. Watch the SPX.
With resistance growing with every point gained toward
1150 it will be the best barometer for market direction.

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

When In Pamplona

BEA Systems, Inc. - BEAS - close: 8.87 change: +0.18

WHAT TO WATCH: The past several weeks have provided a rough ride
for BEAS investors, as the stock lost a third of its value,
falling from above $12 to near $8.  But buyers have been back at
work this week, pushing the stock through near-term resistance
and apparently ready to take a shot at the $9 level at the bottom
of the gap.  Use a trigger at $9.15 and target a rally all the
way to the top of the gap near $10.50.




---

Blyth Inc. - BTH - close: 34.53 change: -0.02

WHAT TO WATCH: After trapping the bears with its break under the
$31.50 level, shares of BTH have been tearing up the chart and in
the past week, the volume has really started to rise.
Yesterday's bullish session saw the stock break out to its best
levels since 1999 and it looks ripe for a momentum play towards
the $38 level.  Use a trigger over $34.60.




---

Staples Inc. - SPLS - close: 28.85 change: +0.74

WHAT TO WATCH: A couple weeks back we looked at shares of SPLS as
a possible breakout candidate.  Well it finally happened, with
the stock breaking over the $28 level yesterday and then
continuing to surge today.  Chasing the stock higher here may be
a bit too aggressive, but a pullback near the $28 level would
provide a gift of an entry point as the stock should be headed
towards the $33-34 area after its lengthy consolidation.




---

Smurfit Stone Container Corp. - SSCC - close: 18.44 change: -0.17

WHAT TO WATCH: Shares of SSCC have been consolidating just below
the $19 level since last fall and with the strength in the
overall market, we're betting on the bulls being able to achieve
a breakout this time.  Aggressive traders can enter on a push
through the descending trendline near $18.70, while the more
conservative approach will be to wait for a move through
horizontal resistance at $19.15.  Target a move to $21-22.




---


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

WBSN $34.66 - While a cursory look at WBSN's daily chart would
give the impression that we've missed the breakout, stepping back
to the weekly chart provides a different perspective.  The stock
is nearing its highs from 2001 and a break over $35 could set the
stage for a rally towards next resistance at $40.

TYC $31.95 - While an argument could be made that TYC is due for
a rest after moving straight from the $27 level to $32 in less
than a month, we're looking at the fact that the stock is now
back in the upper half of its rising channel and appears destined
for a run at the $35 level.  Use a trigger over today's high.


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

Upbeat but cautious
- J. Brown

Investor sentiment feels pretty upbeat with stocks rising, jobs
rising, and corporate profits rising yet there seems to be an
undercurrent of caution.  That's not surprising.  The G8 summit
is a big target for terrorists but they're going to have a hard
time getting past security to Sea Island, Georgia.  The state
funeral in Washington to mourn President Reagan's death is also a
big target with all the high profile attendees but security is
going to be super tight.  Fortunately, if there was any question
yesterday if the Dow Industrials had or had not broken out above
its descending trendline of resistance it has been answered
today.  The 41-point gain in the Dow put it above the 10,400
level and the age-old index closed at its high for the session,
which is generally a positive sign for tomorrow.

Boosting positive interest in stocks was the drop in crude oil
prices.  July futures for crude hit new six-week lows and broke
down through support at the $38.00 level as well as its 40 and
50-dma's.  This of course weighed on the energy sector and the
OIX, OSX, and XNG indices all closed lower.  In contrast the Dow
Jones Transportation index continues to rally and is nearing
major resistance at the 3090 (and 4000) level.  The TRAN is
starting to look pretty overbought as it nears resistance.  That
should make some of you cautious.

The SOX semiconductor index is valiantly trying to breakout over
resistance at 490 and its 100 and 200-dma's but it just couldn't
do it today and that may have been what kept the NASDAQ in check.
Meanwhile the GHA hardware index did breakout over its 200-dma
just as IBM pushed through its own resistance at $90 and its 40
and 50-dma's.  Overall market internals were mixed to bearish.
The advance/decline line was negative with 5 losers for every 4
winners on the NYSE and almost 17 decliners per 13 winners on the
NASDAQ.  The up and down volume numbers were very close to even
on the NYSE but bears had the edge.  Volume was more bullish on
the NASDAQ but not by any significant ratio.

Traders should probably double check their stop losses and
reassess how much risk they're willing to take.  The VXO
volatility index is waving a HUGE warning sign.  Remember that
the VXO is the old VIX.  This gauge of investor fear has
plummeted lower in the last two sessions and hit a new all-time
low since it began trading under the new symbol.  That doesn't
mean that the markets are going to sell off tomorrow but it does
mean we could be at a short-term top.  Of course if there's one
thing we've learned about the volatility indices in the last year
is that they can sink a lot lower than generally thought they
would.






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

Market Averages

DJIA ($INDU)

52-week High: 10753
52-week Low :  8871
Current     : 10432

Moving Averages:
(Simple)

 10-dma: 10234
 50-dma: 10265
200-dma: 10091



S&P 500 ($SPX)

52-week High: 1163
52-week Low :  962
Current     : 1142

Moving Averages:
(Simple)

 10-dma: 1123
 50-dma: 1119
200-dma: 1089



Nasdaq-100 ($NDX)

52-week High: 1559
52-week Low : 1180
Current     : 1495

Moving Averages:
(Simple)

 10-dma: 1465
 50-dma: 1447
200-dma: 1431



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

CBOE Market Volatility Index (VIX) = 15.01 -0.38
CBOE Mkt Volatility old VIX  (VXO) = 13.75 -0.95
Nasdaq Volatility Index (VXN)      = 22.26 -0.39


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

          Put/Call Ratio  Call Volume   Put Volume

Total          0.86        617,310       531,082
Equity Only    0.66        457,046       300,707
OEX            1.54         25,276        38,917
QQQ            1.78         20,472        36,498


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

Bullish Percent Data

           Current   Change   Status
NYSE          66.2    + 2     Bear Confirmed
NASDAQ-100    40.0    + 2     BULL ALERT
Dow Indust.   70.0    + 2     Bear Confirmed
S&P 500       63.4    + 2     Bear Confirmed
S&P 100       63.0    + 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: 0.87
10-dma: 0.83
21-dma: 0.97
55-dma: 1.03


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    1283      1324
Decliners    1506      1676

New Highs     117       100
New Lows       24        13

Up Volume    695M      783M
Down Vol.    712M      628M

Total Vol.  1448M     1440M
M = millions


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

Commitments Of Traders Report: 06/01/04

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

Action in the large S&P 500 futures contracts has been slow.
Commercial traders remain net short but the bearish interest has
been declining for two weeks now.  Small traders' positions are
virtually unchanged.


Commercials   Long      Short      Net     % Of OI
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%)
06/01/04      406,665   421,681   (15,016)   (1.8%)

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
05/11/04      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%
06/01/04      137,100    79,583    57,517    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

Wow!  Commercial traders are completely undecided with a
dead heat between longs and shorts.  Meanwhile small traders
have turned bullish.


Commercials   Long      Short      Net     % Of OI
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%
06/01/04      325,865   325,274        591     0.0%

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
05/11/04      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%)
06/01/04      111,484     90,625    20,859    10.3%

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 hit new bullish extremes we've not
seen in many months.  Right on track small traders have hit
bearish extremes.


Commercials   Long      Short      Net     % of OI
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%
06/01/04       59,944     34,784    25,160   26.6%

Most bearish reading of the year: (21,858)  - 08/26/03
Most bullish reading of the year:  25,160   - 06/01/04

Small Traders  Long     Short      Net     % of OI
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%)
06/01/04        9,755    30,025   (20,270)  (51.0%)

Most bearish reading of the year: (20,270) - 06/01/04
Most bullish reading of the year:  19,088  - 01/21/02

DOW JONES INDUSTRIAL

Not much action going on here with the commercial traders.
They remain slightly bearish on the Dow.  Small traders are
growing more bullish.


Commercials   Long      Short      Net     % of OI
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%)
06/01/04       23,397    24,393   (  996)     (2.0%)

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
05/11/04        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%
06/01/04        9,000     6,021    2,979     19.8%

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

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


=================================================================
To stop receiving this PremierInvestor.net Newsletter,
send email to Contact Support
=================================================================
DISCLAIMER
=================================================================

This newsletter is a publication dedicated to the education
of stock traders. The newsletter is an information service
only. The information provided herein is not to be construed
as an offer to buy or sell securities of any kind. The
newsletter picks are not to be considered a recommendation
of any stock but an information resource to aid the investor
in making an informed decision regarding trading in stocks. It
is possible at this or some subsequent date, the editors and
staff of PremierInvestor.net may own, buy or sell securities
presented. All investors should consult a qualified professional
before trading in any security. The information provided has
been obtained from sources deemed reliable but is not
guaranteed as to accuracy or completeness. PremierInvestor.net
staff makes every effort to provide timely information to its
subscribers but cannot guarantee specific delivery times due to
factors beyond our control.

Please read our disclaimer at:
http://www.optioninvestor.com/page/oin/aboutus/disclaimer.html

*****************************************************************
ADVERTISING INFORMATION

For more information on advertising in PremierInvestor.net
Newsletter, or any Premier Investor Network newsletter please
contact Contact Support.

*****************************************************************


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





PremierInvestor.net Newsletter                  Tuesday 06-08-2004
                                                    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:  AAI, NXTP, SBUX, ENZN


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

AAI - long
Adjust from $12.75 up to $13.40

---

NXTP - long
Adjust from $14.90 up to $15.25

---

SBUX - long
Adjust from $39.00 up to $41.00

----------

PUTS

ENZN - non-tech short play
 Lower stop from $14.80 to $14.51
 Traders can target an exit at its 200-dma near $13.25.
 More aggressive traders can hang on and target $12.00.


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

IBM     Intl Busines Machines      90.04     +1.40
UTX     United Technologies        88.00     +0.93
PRU     Prudential                 45.66     +0.61
LEH     Lehman Brothers            79.00     +0.99
YUM     Yum! Brands                38.01     +1.00
S       Sears Roebuck              40.41     +2.11

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

HXL     Hexcel Corp                10.38     +1.13

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

HSY     Hershey Foods              92.22     +2.42
MGG     MGM Mirage                 48.03     +3.19
KMRT    KMart Holdings             66.33     +4.33
SFD     Smithfield Foods           30.21     +1.09
ELAB    Eon Labs Inc               39.92     +1.25

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

TRB     Tribune Co                 46.92     -1.76
BRL     Barr Labs                  38.80     -2.53
ONXX    ONYX Pharmaceuticals       38.85     -1.83
WEBX    Webex Communications       20.78     -1.33
DHOM    Dominion Homes             24.83     -4.50

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

FO      Fortune Brands Inc         74.61     -0.38
IPXL    Impax Labs                 21.29     -0.60
UZG     United States Cellular     27.11     -0.30


=================================================================
To stop receiving this PremierInvestor.net Newsletter,
send email to Contact Support
=================================================================
DISCLAIMER
=================================================================

This newsletter is a publication dedicated to the education
of stock traders. The newsletter is an information service
only. The information provided herein is not to be construed
as an offer to buy or sell securities of any kind. The
newsletter picks are not to be considered a recommendation
of any stock but an information resource to aid the investor
in making an informed decision regarding trading in stocks. It
is possible at this or some subsequent date, the editors and
staff of PremierInvestor.net may own, buy or sell securities
presented. All investors should consult a qualified professional
before trading in any security. The information provided has
been obtained from sources deemed reliable but is not
guaranteed as to accuracy or completeness. PremierInvestor.net
staff makes every effort to provide timely information to its
subscribers but cannot guarantee specific delivery times due to
factors beyond our control.

Please read our disclaimer at:
http://www.optioninvestor.com/page/oin/aboutus/disclaimer.html

*****************************************************************
ADVERTISING INFORMATION

For more information on advertising in PremierInvestor.net
Newsletter, or any Premier Investor Network newsletter please
contact Contact Support.

*****************************************************************

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





DISCLAIMER

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

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

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

Option Investor Inc
PO Box 630350
Littleton, CO 80163

E-Mail Format Newsletter Archives