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Daily Newsletter, Wednesday, 06/09/2004

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PremierInvestor.net Newsletter                Wednesday 06-09-2004
                                                    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:  Stocks Slide Into Reverse
Watch List:   Seeing Red

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)


===============================================================
MARKET WRAP  (view in courier font for table alignment)
===============================================================
     06-09-2004            High     Low     Volume Advance/Decline
DJIA    10368.44 - 64.08 10431.32 10364.96 1.58 bln    681/2099
NASDAQ   1990.61 - 32.92  2019.22  1989.99 1.50 bln    795/2213
S&P 100   552.30 -  4.44   556.74   552.19   Totals   1476/4312
S&P 500  1131.33 - 10.85  1142.18  1114.76
RUS 2000  568.58 -  9.33   578.12   568.50
DJ TRANS 3028.23 - 44.17  3071.74  3027.69
VIX        15.39 +  0.38    15.46    14.56
VXO        14.57 +  0.82    14.82    14.26
VXN        22.35 +  0.09    22.52    22.08
Total Volume 3,438M
Total UpVol    648M
Total DnVol  2,740M
52wk Highs     167
52wk Lows       70
TRIN          1.46
PUT/CALL      0.92
===============================================================

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

Stocks Slide Into Reverse
by James Brown

After three days of gains in the stock market investors decided
to take some money off the table.  Wednesday's decline was very
widespread affecting every stock and sector specific index.  Wall
Street doesn't seem happy unless it has something to worry about
and today it fell back to its old favorite - interest rates.  It
is no longer a matter of if and when the FOMC will raise rates
but a matter of how much and how fast.  Everyone knew rates were
going higher from their 40-year lows but now there are concerns
that the Fed may hike them faster than previously expected to
combat any perceived rise in inflation.

The concerns over inflation sent the bond market lower, which in
turn sent yields higher and that affects mortgage rates.  This
was not lost on the homebuilders who fell sharply for the second
day in a row.  Tech stocks also took a beating as traders worried
that higher rates would impact corporate profits.  The
semiconductor sector took the brunt of the selling with a 3.24%
decline after failing at resistance for the second time in two
weeks.  Networking, Internets, software and disk drives were all
down close to 2% or more on the session.

Chart of the SOX semiconductor index:


Market pundits were blaming Greenspan's comments yesterday for
the rise in the U.S. dollar today.  That sent gold futures
slipping.  Gold finally settled at $384.50 an ounce, down $6.50
on the session.  Gold stocks followed suit with a 5.02% loss in
the XAU index and a 4.9% loss in the GOX index.  Metals in
general were weaker and copper futures melted for a 5.77% loss
that broke through support at $1.20 and closed at $1.166 per
pound.

Wall Street was eagerly anticipating the May Producer Price Index
(PPI) gauge on inflation.  The PPI was originally scheduled to
release on Friday but was moved to Thursday afternoon due to
Reagan's funeral and the market's closure on Friday.  Yet as of
this afternoon the PPI has been delayed.  If you visit the U.S.
Department of Labor's website (Bureau of Labor Statistics) you'll
see their notice that says the May PPI has been postponed "until
further notice".  This isn't new.  The January, February and
March PPI's were all delayed due to new challenges converting
data under a new classification system.  It is expected to be
released sometime next week but not before Tuesday and they will
announce it a day ahead before the data is released but don't be
surprised if they push the announcement back again.  As of today
economists are expecting the PPI to rise 0.5% in May on top of
April's 0.7% climb.

Crude oil prices remained in the spotlight as world leaders
discuss rising energy costs and its affects on the global economy
at the G8 summit going on in Georgia this week.  Crude oil
futures initially fell this morning to new six-week lows but
rebounded to close up 26 cents at $37.54 a barrel.  News out this
afternoon from the Department of Energy showed a rise in oil
reserves and analysts are pointing to this and other factors
suggesting the peak is behind us for oil prices.  News that the
U.S. strategic oil reserve would be full again in July or August
should cool speculation since demand would slow down a bit.

Speaking of slowing down the U.S. markets were not the only ones
to cool off a bit today.  The Japanese NIKKEI slipped 72 points
to 11,449 while the Hang Seng inched down 4 points to 12,339.
European stocks also traded lower.  The English FTSE dropped 15
points to close under the 4500 level.  The German DAX declined 21
points to breakdown down under the 4000 level.  The French CAC
slid almost 25 points to breakdown under the 3700 level.  It
looks like a "let's break support" party.  Of course the NASDAQ
was invited and showed up with a 33-point drop to close under the
2000 level again.  The Dow Industrials dropped 64 points to close
at 10,368 and the S&P 500 lost almost 11 points to close at 1131.

Overall market internals in the U.S. exchanges were negative.
Wednesday's action was almost a bearish mirror to Monday's gains.
Declining stocks outnumbered advancers 3-to-1 on the NYSE and the
NASDAQ.  Down volume overshadowed up volume by more than 3-to-1
on the NYSE and by more than 4-to-1 on the NASDAQ.  Overall
volume came in just above 3 billion shares on both exchanges.

Chart of the Dow Jones Industrials:


Chart of the NASDAQ Composite:


Chart of the S&P 500 Index:


It is easy to point fingers at the semiconductor sector for
today's declines.  The SOX did lead the way down and there were
plenty of headlines to help it along.  First and foremost was
OmniVision Technologies (OVTI).  This specialty chipmaker not
only issued an earnings warning for the current quarter but also
said it would delay some of its filings because management was
mulling over potential restatements for 2004 and 2003.  Shares
gapped lower and fell more than 30% to $17.63.  If that wasn't
enough Goldman Sachs decided to jump in and downgrade two foundry
stocks, Taiwan Semiconductor (TSM) and United Microelectronics
(UMC).  GS lowered its rating on the two from "out perform" to
"in line".  TSM is the largest semiconductor foundry on the
planet so this undermined confidence in the whole group.  TSM
slipped 4.3% to $9.24 while UMC fell 4.6% to $4.48.  Advanced
Micro Devices (AMD) tried to issue some good news by announcing
that Lenovo Group, a Chinese PC maker, had chosen AMD's Athlon 64
and Athlon XP chips to make their PCs with but traders weren't
listening.  Shares of AMD fell 4.14% and painted an ominous
bearish engulfing candlestick.

There was plenty of action among the Dow-components as well.
Boeing (BA) continued its winning ways and hit another new two-
year high after Lehman Brothers upgraded the stock to
"overweight".  Meanwhile Coca-Cola (KO) proved to be a drag on
the Dow with a 1.6% decline after announcing its No 2 executive,
Steven Heyer, was leaving.  Heyer is KO's president and COO but
after being passed up for the CEO's job many believed he would
leave for other opportunities.  Last but not least were the
telecoms SBC Communications (SBC) and Verizon (VZ).  Both stocks
traded higher today after the U.S. Justice Department announced
that it would not seek to reverse an appeals court ruling that
threw out the FCC's directive to force local telephone companies
to lease their networks to competitors at low rates.  Whew!
That's a mouthful.  In essence SBC and VZ will not have to share
their landlines with the competition.

Retail stocks are expected to see some action tomorrow as
investors speculate on more M&A activity in the group.  After the
bell this evening Target (TGT) announced it was selling its
Marshall Field's stores and nine of its Mervyn's stores to May
Department Stores (MAY).  TGT had been under pressure to sell off
some of its under performing department stores so it can focus on
its discount chain and better compete with larger rival Wal-Mart
(WMT).  The deal with MAY is worth $3.2 billion.  TGT also
announced it would spend $3 billion to buy back stock over the
next two to three years.

Looking ahead to tomorrow I am not expecting much.  Let me
rephrase that.  I'm not expecting much from the bulls.  Investors
are still a little nervous about any potential terrorist event
with the G8 Summit finishing tomorrow and the Reagan funeral on
Friday.  It's become normal for the markets to turn cautious
ahead of any long weekend but if the weekend is quiet we can look
for a relief rally on Monday.  Tomorrow does bring a few small
economic reports with the import/export data and the weekly
initial jobless claims.  Next week is options expiration so we
could see some volatility as traders adjust positions ahead of
Friday.  Overall investor's seem to be focusing on the June 30th
FOMC meeting and the Iraq handover.  There doesn't seem to be a
lot of impetus to buy stocks before these events.  Fortunately,
the latter could take on more of positive influence for stocks
now that the U.N. Security Council just approved the latest
resolution on Iraq's changeover.


==================================================================
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
---------------------------------

Seeing Red

Newmont Mining Corp. - NEM - close: 37.51 change: -1.98

WHAT TO WATCH: Recent Fed comments have solidified the view that
interest rates will start rising at the end of the month and that
has lent a bid to the dollar, at the expense of gold and the
mining stocks.  NEM tipped over on strong volume today, smashing
through last week's lows and appears headed for a test of last
month's lows just under $35.  Look for entries on either a break
below today's closing low or on a failed bounce below the 20-dma.




---

Genzyme Corp. - GENZ - close: 41.72 change: -1.38

WHAT TO WATCH: For much of the past week, GENZ has been looking
like it wanted to roll over below the 50-dma and today's carnage
in the BTK index got the job done.  GENZ sold off hard and is now
nearing the site of the May lows.  We don't want to play ahead of
that support test, but a break below $40.75 should provide a
favorable bearish entry.  Target a drop towards strong support in
the $35-36 area.




---

Acxiom Corp. - ACXM - close: 24.72 change: +0.58

WHAT TO WATCH: Despite all the technical damage in the broad
market in recent months, ACXM is still pushing higher, finding
consistent support at its 50-dma.  The most recent bounce took
place just above that average and today the stock poked through
resistance to hit a new multi-year high.  Use a trigger over
today's high and target weekly resistance in the $28 area.




---

Costco Wholesale Corp. - COST - close: 40.68 change: -0.63

WHAT TO WATCH: After coiling sideways since the start of the
year, shares of COST are finally breaking out and are doing so on
expanding volume to boot.  Due to the stock's slow-moving nature,
we're a bit hesitant to chase the breakout, as COST has already
rallied more than $6 since its last correction.  Look for a near-
term pullback near the $39.00-39.50 area (which should be solid
support) to provide an attractive entry and then look for a
longer-term move towards next resistance in the $43 area.





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

TSN $20.47 - Ignoring the choppy pattern seen in the overall
market, TSN has had a pretty impressive bullish run since the
beginning of the year.  It may look like a slow mover, but it is
up more than 50% since the first of the year.  Dips near the 30-
dma have proved to be excellent buying opportunities, so look for
a repeat of that pattern.  Look for a continued bullish move to
the $23 area.

HRL $30.65 - HRL is another food-related stock that has been
persistent in its climb since the start of the year, finding
strong support near the 50-dma.  Today's failed rally looks
discouraging, but it appears to be setting up another test of the
50-dma.  Look for a rebound off of that average to set up a
favorable bullish entry in anticipation of a successful breakout
over $31.50.

PDLI $17.22 - Even before this week's weakness in the Biotech
sector, PDLI was looking sickly and was struggling to hold over
the 200-dma.  That attempt failed on Monday and since then the
stock has been continuing to deteriorate.  Look for an oversold
bounce to provide entry on a rollover from below the 200-dma and
then target a drop towards strong support at $15.


==================
  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     Internat Business Mach     90.33    +0.29
UTX     United Technologies Corp   87.74    -0.26
SFI     Istar Financial Inc        38.86    +0.16
AVB     Avalonbay Communities      55.11    +0.20
ASH     Ashland Inc                51.01    +0.42


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

None


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

HSY     Hershey Foods Corp         92.00    -0.22
S       Sears Roebuck & Co         40.51    +0.10
ELAB    EON Labs Inc               40.16    +0.24
FMD     First Marblehead Corp      37.96    +2.11
MSA     Mine Safety Appliance Co   35.75    +0.69


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

RHAT    Red Hat Inc                25.69    -1.34
BRL     Barr Laboratories Inc      37.38    -1.42
NIHD    NII Holdings Inc           33.86    -0.69
ONXX    Onyx Pharm Inc             38.00    -0.85
TTWO    Take-Two Intera Software   27.90    -0.75


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

FO      Fortune Brands Inc         74.34    -0.27
IRXL    Impax Laboratories Inc     20.75    -0.54


=================================================================
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 2004  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.





PremierInvestor.net Newsletter                Wednesday 06-09-2004
                                                    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
=================================================================

In section two:

Stop Loss Adjustments: IGT, ENZN
Stock Splits
  Announcements:       JOSB


==================================================================
Stop Loss Adjustments
==================================================================

IGT - non-tech long -
  Uh-oh!  The action in the SOX and IGT is bearish.
  We don't like how IGT's MACD indicator is getting ready
  to roll over into a new sell signal.  We're going to raise
  our stop loss from $38.00 to $38.50.

---

ENZN - non-tech short -
  Hello!  After all this time we finally got the breakdown we were
  looking for in ENZN.  We can't find any specific news for the 8.2%
  drop but we're not complaining.  We suggest traders consider taking
  profits now on all or some of their position.  We are going to LOWER
  our stop loss from $14.51 to $12.91 to protect a decent chunk of the
  move.  We are not suggesting new entries.


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

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

JOSB fashions another stock split

This morning before the market's opening bell JoS A. Bank
Clothiers, Inc. (NASDAQ:JOSB) announced that its Board of
Directors, who met on June 8th, declared a 25% stock dividend,
which is a 5-for-4 stock split.

This is JOSB's second split in six months.  This new stock
dividend is payable on August 18th, 2004 to shareholders on record
as of July 30th.  Post-split JOSB will have close to 13.3 million
shares outstanding.


About the company:
JoS. A. Bank Clothiers, Inc., established in 1905, is one of the
nation's leading retailers of men's classically-styled tailored
and casual clothing, sportswear, footwear and accessories. The
Company sells its full product line through 222 stores in 35
states and the District of Columbia, a nationwide catalog, and an
e-commerce website that can be accessed at www.josbank.com. The
Company is headquartered in Hampstead, MD, and its common stock is
listed on the Nasdaq National Market under the symbol "JOSB".
(source: company press release)


=================================================================
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 (c) 2004  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.

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