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Daily Newsletter, Sunday, 06/27/2004

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PremierInvestor.net Newsletter          Weekend Edition 06-27-2004
                                                    section 1 of 3
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:       Tick, Tick, Tick
Market Sentiment:  Deadline June 30th
Watch List:        Metals, Chips and More!

=================================================================
MARKET WRAP  (view in courier font for table alignment)
=================================================================
        WE 6-25         WE 6-18         WE 6-11         WE 6-04
DOW    10371.84 - 44.57 10416.4 +  6.31 10410.1 +167.18 + 54.37
Nasdaq  2025.47 + 38.74 1986.73 - 13.14 1999.87 + 21.25 -  8.12
S&P-100  549.75 -  5.06  554.81 -  0.09  554.90 +  7.82 +  1.95
S&P-500 1134.43 -  0.57 1135.00 -  1.47 1136.47 + 13.97 +  1.86
W5000  11073.60 + 39.48 11034.1 - 11.83 11045.9 +109.64 +  9.95
SOX      478.91 + 25.83  453.08 - 23.20  476.28 +  5.37 - 17.95
RUT      587.70 + 17.16  570.54 +  1.42  569.12 +  1.37 -   .53
TRAN    3164.18 + 95.61 3068.67 + 43.96 3024.71 + 32.43 + 44.27
WE = week ending
=================================================================

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

Tick, Tick, Tick
by Jim Brown

While most Americans are oblivious to the coming events
the clock continues to count down to June 30th. Whether
it will pass as a major calendar event or pass quietly
like a mini Y2K is yet unknown. The volume of press the
events are now getting should go a long way toward making
them anticlimactic. Investors, if you believe the talking
heads, are sitting on pins and needles worrying about
Wednesday's events. Personally I think Friday's Jobs
Report will be more critical but you never know.

Dow Chart - Daily


Nasdaq Chart- Daily


Russell-2000 Chart - Daily




In the economic arena investors received another blow
when the final GDP for Q1 came in lower than expected at
+3.9%. This was less than the 4.4% estimate and the last
revision. This shocker contained offsetting components.
Corporate profits were revised up to +1.7% from the +1.2%
reported in the last revision. That is good news but there
was an offsetting entry. The PCE deflator, a key inflation
gauge used by the Fed, jumped to +2.0% from the prior +1.7%.
The GDP price index was also revised up to +2.8% from +2.6%.
It seems the inflation threat is increasing and the economy
is slowing. This is bad news for the Fed and could put them
in a bind when they make their rate decision on Wednesday.
Business inventories were revised down to $25.5B from
$28.2B. The bulk of the downward GDP revision came from
a larger than expected trade deficit at -$535.6B. This
was a $10B increase from the prior revision.

The Michigan Consumer Sentiment did rise as we expected
but only slightly to 95.6 from the preliminary 95.2. This
was more than a +5 point jump from May's 90.2. If you
recall May saw a -5 point decline from April and the
June bounce has now completely erased that drop. We
speculated at the time that the Iraq prisoner scandal
had depressed the May responses. Rocketing gas prices
also impacted consumer wallets. It appears those problems
have passed.

As I suspected on Thursday the Existing Home Sales roared
higher than consensus estimates and set a new record of
6.8 million units. This was substantially over estimates
and the 6.63 million units in April. For the same reasons
I wrote about on Thursday the turnover in existing homes
is ripping along at the same hot pace as new homes. Each
move to a new home vacates an existing home and the ripples
behind the scenes begins. Each time a high-end buyer
upgrades it produces a series of vacancies/sales at lower
levels. Firming consumer confidence/sentiment is helping
promote the current wave of upgrades. Including new home
sales the annualized pace of total home sales surged past
the eight million mark for the first time ever in May.

The big news of the day was not the economics although a
low GDP and negative Durable Goods did nothing to help
stocks. The big news was the Russell shuffle at the close
and it was nothing like anyone expected. Normally the
Russell tanks into the close as fund managers sell the
stocks leaving the indexes and buy the new stocks that
will be in the indexes as of Monday. Surprise, surprise!
The Russell failed to see any serious selling during the
day despite constant conversations on stock TV about the
possibilities. Just before the close, around 3:30, the
Russell begin to climb, not just climb but accelerate
into a vertical spike. The Russell posted a gain of
+8.65 for the day and the Dow went out at -71 due to
extreme volatility related to the rebalancing. This is
crazy. The Dow closed at 10443 on Thursday and is showing
a 4:PM close of 10412 for Friday. However, due to extreme
after hours volatility right at 4:PM the after hours
settlement is printing 10371 for a -71 loss. Needless
to say there will be some serious volatility at the open
on Monday.

Major drops in GE, -1.00 at the close, and several other
Dow stocks tanked the Dow instead of the Russell. Dell
moved +1.00 after the close. Somebody needs to reevaluate
their computer models if stocks not really involved in
the rebalance got thrown this severely out of whack. The
normal pattern was supposedly disrupted by the lack of
hedge fun participation according to one analyst. The
current lack of interest in the market and the pending
news events prompted many hedge funds to simply pass on
trying to arbitrage the trade. Many funds were reported
to have legged out of the deletions and into the additions
over the last two weeks instead of doing the normal Friday
dump and buy. Whatever the reason it appears there was a
substantial short contingent in anticipation of the normal
routine and that routine was broken. Shorts found themselves
in a squeeze with nobody dumping stock and once the short
covering began it skewed the delicate market balance into
a serious imbalance.

On the charts the Dow is showing a solid stop at 10400
and a close at 10412. With the after hours imbalance
we have no idea where this will resolve on Monday. I
feel the 10400 level is the current support level and
it held up very well on Friday. However, for the third
consecutive day the Dow rebounded to 10487 and failed.
It just can't seem to get to the strong resistance at
10500. With support at 10400 and resistance at 10500 we
are looking at a very tight range next week while we wait
for the Wednesday events. If the after hours volatility
stands then I would expect that range to expand to 10360
to 10500. We could easily trade there through Wednesday
except for several external factors.

The Fed meeting has become a non-event. More than 25 points
have already been priced into the market and with the two
weak reports, GDP and Durable Goods, and the high Jobless
Claims the Fed is back in the hot box. They have gone out
of their way to prepare the market for a rate increase and
yet the economy is not holding its prior pace. On the other
side of the coin it appears inflation is rising on all
fronts. The Fed is trapped and has to raise rates and a
25 point hike should be market positive. The uncertainty
will be gone and a calming statement with the hike could
put the bond junkies at peace until after the election.
Bottom line, the Fed meeting should not have any negative
impact on the market.

The Iraq turnover has been cussed and discussed so much
that everyone expects the worst and anything short of a
Saddam escape should be ignored. The new Iraq officials
are talking a good game and everybody knows there will
be numerous attacks. I believe this is already priced
into the market. I do not believe we will see any event
that will cause us to tank except an event on U.S. soil.
We saw 75 deaths and nearly 400 injured in the big attack
this week and the market barely blinked. As one reporter
put it on Friday, Iraq will revert to prime time next
week and while we are not sure they are ready for the
spotlight even the bad side will not be anything we
have not seen before. The more they exaggerate the event
the less impact it may have on the markets. Traders tend
to glaze over after days and days of the same news.

On the positive side this is the end of the quarter and
retirement funds will be flowing. Some analysts think
most funds are heavy in cash because they were waiting
for the June implosion from the convergence of events.
With no implosion and the events upon us and priced in
those funds will want to put the money into stocks before
the quarter end statements. With more cash about to hit
those retirement accounts this should accelerate this
need to invest. This should provide a positive bias
into Wednesday's close.

Conventional wisdom suggests we are going sideways
until after the June 30th events. I have been buying
this argument myself up until last week. When I started
seeing the bullish factors lining up a week ago I began
to reevaluate this outlook. Friday's action convinced me
we still have more potential to move higher than lower
next week. Of course any material event not currently
contemplated could change that in an instant but that
is my view today.

To expand on this thought process I think the longer
term view is the key. By longer term I am thinking three
weeks. I have to clarify that because "longer term"
means different things to different people. My longer
term view is a post Fed rally into the holiday weekend
and then a continuation of that rally for the week after
the holiday. This will set us up for the Q2 earnings and
the Q3 guidance. Once we get to July expiration all bets
are off for the rest of the summer.

One of the potholes in this yellow brick road is the
Nonfarm Payrolls next Friday. The current consensus for
the June jobs gain is +275,000. This is very strong for
a summer jobs report. John Challenger was interviewed on
Friday and he said employment was slowing. According to
his surveys 69% of corporations did some hiring in the
first six months of 2004. For the next six months the
number of firms considering hiring drops to only 44%.
Also the pace of hiring is slowing. Corporations have
staffed up and now they are only looking at filling the
vacancies rather than a new wave of additions. This view
along with some of the slowing employment components from
the various manufacturing surveys suggests the next Jobs
Report could be a disappointment. That report is next
Friday. But, depending on what the Fed says on Wednesday
it could be completely ignored.

For Q2 earnings we have had very few warnings and also
very few guidance upgrades. Racing into the earnings
cycle with no material earnings news could have a dual
impact. No news could be good news for stocks as all the
optimists line up at the buyer window. This allows us to
speculate about how good things might be without really
having any evidence to back it up. That sets us up for
an earnings challenge for the last two weeks of July if
there is no positive news from the early reporters.

Most analysts expect a deceleration of earnings and an
increasing failure to hit the high bar as we near 2005.
In fact 2005 estimates are positively anemic compared
to the last two quarters. This will put added emphasis
on the Q3 guidance, especially in front of a tossup
election. Traders will be looking for a reason to stay
in the market not necessarily a reason to exit.

To net all this out into a trading plan for next week I
would again suggest buying the dips in anticipation for
a retest of the 10500 resistance level. We may not hit
it until after the Fed decision but I suggest you plan
your trades for the eventuality. With the high volatility
at Friday's close there is no telling where we will open
on Monday. The Dow is showing a close at 10371 based on
the after hours settlement. Using the 10360 support I
mentioned earlier I would look for a long entry on a
rebound from that level. Should the market gap up in
a correction from the Friday volatility skew I would
probably look for another dip to enter. Try to get in
as close to the 10360-10400 range as possible.

The risk on a long entry is the extended Nasdaq at 2030.
This is the beginning of a strong resistance range for
the Nasdaq and a level that could produce some profit
taking. 2050-2070 is the next major resistance. The
Nasdaq could see an additional bounce on Monday as funds
complete their Russell purchases. Quite a few funds will
normally wait until after the volatility event to enter
the new stocks. This could provide support for the Nasdaq
if not an outright upward bias.

I hope I have given you a general idea of what may happen
but please realize this will be an event motivated week.
These events may be already priced in but there is always
the potential for the unexpected. For instance Bush is
out of the country and could try to sneak into Iraq for
the changeover. A truck full of explosives was reportedly
found in a Turkey airport on Friday. An airport Bush will
use this weekend. On Friday an air strike in Fallujah
knocked al-Zaqawi to the ground with a near miss but he
was helped into a car and escaped. A direct hit could
produce a significant market bounce. The Fahrenheit 9/11
film opening this weekend could start something and change
the entire election balance. I hope you get the picture
that this is a critical week and the picture could change
in a heartbeat. Plan your trades including your exits and
trade your plan. Don't get married to your market bias,
divorce is painful.

Enter Very Passively, Exit Very Aggressively!

Jim Brown


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

Deadline June 30th
- J. Brown

This is it.  We've finally made it to the final week of June.
Wednesday June 30th marks the end of a two-day FOMC meeting and
the formal handover of sovereignty from the coalition to the
Iraqi people.  Alan Greenspan & Co is expected to announce a 25
bps hike in interest rates and Iraq is expected to be an
exceptionally dangerous place to be this week.  Of course there's
no guarantee the Fed won't surprise us with a 50-point hike and
there's no guarantee that terrorist in Iraq and/or Saudi Arabia
won't shock the world with some sort of unexpected attack.
That's why stocks are likely to remain range bound through
Wednesday.  Actually stocks are prone to trade sideways all week
long because Wall Street will also be waiting and watching for
the Friday morning non-farm payrolls report. (Although I will
note that the NASDAQ looks more bullish than the other indices.)

June 30th also marks the end of the quarter.  While I don't
expect much window-dressing to push stocks higher by month's end
we could see some pension-fund buying pressure in early July.  As
Jim pointed out in the market wrap if we can make it through this
week and then the long fourth of July holiday weekend without any
terrorist event on home soil we're set up for a rally into the Q2
earnings season.

It could be a strong rally too because right now a lot of the
sentiment indicators look bearish.  A big move higher would catch
a lot of shorts off guard.  The volatility indices remain near
their lows.  The ARMS or TRIN index is approaching some bearish
signals on some of its moving averages.  The latest COT data
(below) also offers some interesting insights.  Commercial
traders have brought their large S&P futures contracts close to
parity while slashing their long positions on the e-minis leaving
them drastically net short/bearish.   Commercial traders tend to
be correct on the big moves while small, retail traders march the
opposite direction.  Sure enough small traders dramatically
reduced their short positions on the e-minis leaving them
overwhelmingly bullish.  Hmm.. maybe things aren't looking so hot
and money managers plan on "selling the news" come Wednesday?

On the positive side oil prices have continued to slip in spite
of rising violence in Iraq and elsewhere.  A steady decline in
oil will be good news for several cyclical sectors as well as
give consumers some relief at the gas pumps.  Let's not forget
the stellar home sales this week.  Surging home sales, both new
and used, is a huge boom for the economy because they produce so
many ancillary purchases by consumers.  They can also be
interpreted as a direct vote of confidence by Americans about the
economy and the future.  Or if you're a cynic the big home sales
numbers are just consumers trying to get in before the next up
cycle in interest rates hits the market.

I continue to suggest trading what you see but make sure you're
aware of your risk.  We may trade sideways this week but it could
be a choppy sideways!



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

Market Averages

DJIA ($INDU)

52-week High: 10753
52-week Low :  8871
Current     : 10371

Moving Averages:
(Simple)

 10-dma: 10388
 50-dma: 10252
200-dma: 10143

S&P 500 ($SPX)

52-week High: 1163
52-week Low :  962
Current     : 1134

Moving Averages:
(Simple)

 10-dma: 1134
 50-dma: 1119
200-dma: 1096

Nasdaq-100 ($NDX)

52-week High: 1559
52-week Low : 1180
Current     : 1498

Moving Averages:
(Simple)

 10-dma: 1475
 50-dma: 1447
200-dma: 1439


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

CBOE Market Volatility Index (VIX) = 15.19 +0.38
CBOE Mkt Volatility old VIX  (VXO) = 14.89 +0.50
Nasdaq Volatility Index (VXN)      = 18.96 -0.40

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

          Put/Call Ratio  Call Volume   Put Volume

Total          0.68        567,925       385,072
Equity Only    0.57        477,164       272,300
OEX            1.03         12,950        13,353
QQQ            1.16         26,644        30,910


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

Bullish Percent Data

           Current   Change   Status
NYSE          67.1    + 0     Bear Confirmed
NASDAQ-100    45.0    + 2     BULL ALERT
Dow Indust.   66.7    + 0     Bear Confirmed
S&P 500       64.8    + 0     Bear CORRECTION
S&P 100       63.0    + 0     Bear Confirmed



Bullish percent measures the number of stocks in an index
currently trading on a buy signal on their point and figure
chart.  Readings above 70 are considered overbought, and readings
below 30 are considered oversold.

Bull Confirmed  - Aggressively long
Bull Alert      - Cautiously long
Bull Correction - Pause or pullback in upward trend
Bear Alert      - Take defensive action if long
Bear Confirmed  - High risk if long, good conditions for shorting
Bear Correction - Pause or rebound in downtrend


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

 5-dma: 0.95
10-dma: 0.99
21-dma: 0.95
55-dma: 1.04


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    1522      1749
Decliners    1273      1244

New Highs     198       133
New Lows       42        44

Up Volume   1078M     1690M
Down Vol.   1228M      893M

Total Vol.  2354M     2623M
M = millions


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

Commitments Of Traders Report: 06/22/04

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

It looks like commercial traders are hedging all their bets
by bringing them close to parity.  If the "smart money" doesn't
know what direction the S&P is going to go after June 30th
how are the "little folk" supposed to know? *grin*  Evidently,
the retail trader isn't listening.  They reduced their shorts
to leave them strongly bullish on stocks.

Commercials   Long      Short      Net     % Of OI
06/01/04      406,665   421,681   (15,016)   (1.8%)
06/08/04      397,294   452,904   (55,610)   (6.5%)
06/15/04      428,905   444,197   (15,292)   (1.8%)
06/22/04      407,842   415,462   ( 7,620)   (0.9%)

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
06/01/04      137,100    79,583    57,517    26.5%
06/08/04      158,373    92,794    65,579    26.1%
06/15/04      169,595   115,336    54,259    19.0%
06/22/04      124,985    89,934    35,051    16.3%

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! Maybe commercial traders are just ignoring the large
S&P contracts and focusing on the e-minis.  They reduced their
positions in both longs and shorts but they almost cut their
longs in half.  That's VERY bearish for the market.  Likewise
small traders are lockstep in unison going the opposite direction.


Commercials   Long      Short      Net     % Of OI
06/01/04      325,865   325,274        591     0.0%
06/08/04      367,191   409,246    (42,055)   (5.4%)
06/15/04      440,867   522,546    (81,679)   (8.5%)
06/22/04      229,290   446,974   (217,684)  (32.2%)

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
06/01/04      111,484     90,625    20,859    10.3%
06/08/04      140,191     84,649    55,542    24.7%
06/15/04      216,759    147,247    69,512    19.1%
06/22/04      243,444     58,389   185,055    61.3%

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 are reducing their positions in both longs
and shorts for the NDX and bringing them closer to break even.
Small traders are following suit bring their shorts and longs
close to even.  Looks like no one knows what direction the
NASDAQ is going.


Commercials   Long      Short      Net     % of OI
06/01/04       59,944     34,784    25,160   26.6%
06/08/04       64,747     41,178    23,569   22.3%
06/15/04       78,542     54,341    24,201   18.2%
06/22/04       40,397     37,413     2,984    3.8%

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
06/01/04        9,755    30,025   (20,270)  (51.0%)
06/08/04        9,716    29,594   (19,878)  (50.6%)
06/15/04       15,794    35,880   (20,086)  (38.9%)
06/22/04        9,311     9,950      (639)  ( 3.3%)

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

Hmm... oddly enough commercial traders are turning more bullish
on the Dow Industrials.  Looks like they like the upside breakout.
Small traders are more pessimistic here.


Commercials   Long      Short      Net     % of OI
06/01/04       23,397    24,393   (  996)     (2.0%)
06/08/04       24,636    25,821   (1,185)     (2.3%)
06/15/04       30,438    24,766    5,672      10.3%
06/22/04       26,808    19,752    7,056      15.2%

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
06/01/04        9,000     6,021    2,979     19.8%
06/08/04        8,325     6,431    1,894     12.8%
06/15/04       13,942    20,953   (7,011)   (20.1%)
06/22/04        5,626     7,798   (2,172)   (16.2%)

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

Metals, Chips and More!

Alcoa Inc - AA - close: 33.49 change: +0.64

WHAT TO WATCH: Metal stocks have been pretty strong this week and
Dow-component AA has rallied through tough technical resistance
at its 100 and 200-dma's.  It also happened to breakout above its
four-month trendline of lower highs.  Volume on Friday was also
strongly above average adding some momentum to the move.  With
the economy doing so well deep cyclical stocks like AA should be
doing big business.  Earnings are on July 7th so AA could see an
earnings run.  We would target a move to $36-37.




---

Anglogold Ashanti - AU - close: 32.49 change: -0.33

WHAT TO WATCH: Many of the gold stocks have rebound significantly
this week as the U.S. due to rising violence in Iraq and weakness
in the U.S. dollar.  Everyone expects the violence to become even
more intense next week as we race towards the formal Iraqi
handover of power on June 30th.  Plus, the dollar still looks
vulnerable to more weakness.  AU is in a P&F sell signal but if
it breaks out over $33.00 and its simple 50-dma it might be a
decent short-term bullish play.  We would target the $36-37
region.  Bears can still play it just look for a failure back
under $32.00 or a drop back under $30.00.




---

Sun Microsystems - SUNW - close: 4.41 change: +0.13

WHAT TO WATCH: SUNW is starting to look like a bullish candidate.
The 3% rally on Friday did fail at the $4.50 resistance level
(and its simple 100-dma) but it still managed to close over its
simple 200-dma.  We would consider SUNW an aggressive long play
if it broke through $4.50.  Our target would be $5.00-5.10.   We
reiterate the aggressive nature of this play.  SUNW is still very
much in a bearish P&F chart pattern with heavy resistance
overhead.




---

PMC-Sierra - PMCS - close: 14.26 change: +0.66

WHAT TO WATCH: Wow!  PMCS has been a big winner for the chip
stocks this week.  The stock has been stuck in a trading range
for two months between $12.00 and $14.50.  In the last four
sessions it has rebounded back to the top of the range on rising
volume, no less.  The P&F chart shows the exact same range-bound
trading so it's not much help.  We like the bullish move through
its simple 50-dma and feel a trade above $14.75-to-$15.00 might
be an entry point for bulls.  Be sure to watch out for overhead
resistance at its 100-dma.




---

Ask Jeeves - ASKJ - close: 37.97 change: +1.48

WHAT TO WATCH: Keep an eye on ASKJ.  The better-known Internet
stocks have been strong performers this week.  ASKJ rebounded
from a bearish breakdown and is now poised to breakout over
technical resistance at its 40 & 50-dma's near $38.00.  Such a
move could be an entry point to catch any run toward the $43-44
levels.





-----------------------------------
RADAR SCREEN - more stocks to watch
-----------------------------------

STZ: 37.10 -0.69 - STZ has been consolidation its May-June gains
for the last three weeks.  Nimble traders can try and trade the
range.  We're going to look for a breakout over $38.00.

XMSR: 25.50 +0.99 - XMSR has been a big winner this week up
almost 10%.  Shares have broken through technical resistance but
still need to trade above $25.50.  Such a move could be a trigger
to go long and target a run toward $30.00 (if your patient).

USM: 39.10 +1.14 - US Cellular has been soaring this week hitting
new 2 1/2 month highs and breaking above its 100-dma.  We would
look for a dip back to $37-38 as a potential entry point.


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only. The information provided herein is not to be construed
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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.

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PremierInvestor.net Newsletter         Weekend Edition 06-27-2004
                                                   section 2 of 3
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:

Tech Stocks
  New Bearish Plays:     ELX
  Bullish Play Updates:  BRCM, CSCO
  Bearish Play Updates:  QLGC


Active Trader (Non-tech)
  Bullish Play Updates:  JCP, SHW
  Closed Bullish Plays:  SBUX
  Closed Bearish Plays:  LEN, HOTT

High Risk/Reward
  New Bullish Plays:     EVOL
  Bullish Play Updates:  MACE
  Bearish Play Updates:  NPSP, SOHU
  Closed Bearish Plays:  RMBS

Stock Splits
  Announcements:         CFC


=================================================================
Net Bulls (NB) Tech Stock section
=================================================================

=========
NEW PLAYS
=========

  -----------------
  New Bearish Plays
  -----------------

Emulex - ELX - close: 14.90 change: -0.81 stop: 16.01

Company Description:
Emulex Corporation, which was named one of Forbes Magazine's 25
Fastest Growing Technology Companies in 2002, is the world's
largest supplier and developer of storage networking host bus
adapters. The Emulex product families are based on internally
developed ASIC, firmware and software technologies spanning both
Fibre Channel and IP networking protocols, and offer customers
high performance, scalability, flexibility and reduced total cost
of ownership.  Emulex markets to OEMs and end users through its
own worldwide selling organization, as well as its two-tier
distribution partners, including ACAL, Avnet, Bell Microproducts,
Info-X, Netmarks, Tech Data, TidalWire and Tokyo Electron.
Corporate headquarters are located in Costa Mesa, California.
(source: company press release)

Why We Like It:
Investors have been rotating out of ELX for months.  The stock
peaked above the $30.00 mark in January this year and it's been
downhill ever since.  In late April the company reported earnings
that only met estimates and then management guided lower for the
next quarter.  Shares gapped lower the next day and dropped
toward $16.00 before the selling stalled.  Over the next six
weeks ELX slowly climbed back to fill the gap and then it was
back to steady selling again.  Recently the selling has been
picking up steam.  The last couple of weeks has produced a new
bear-flag pattern and breakdown.  The flagpole on this pattern
suggest a $13.00 target but we suspect that ELX can trade even
lower.  Its P&F chart is very bearish with a $1.00 price target
(that's pretty bearish!).

Traders can initiate positions at current levels or look for
failed rallies under $15.50.  The 5% decline on Friday was fueled
by volume more than three times the average, which is very
negative.  We're going to start the play with a wide stop at
$16.01 and target a drop toward the $10-12 range.

Annotated Chart:



Picked on June 27 at $14.90
Gain since picked:   - 0.00
Earnings Date      04/22/04 (confirmed)
Average Daily Volume:   2.0 million




============
PLAY UPDATES
============

  --------------------
  Bullish Play Updates
  --------------------

Broadcom Corp. - BRCM - close: 45.41 change: +0.41 stop: 42.75

After getting off to a great start with Tuesday's strong breakout
move through the $44 resistance level, shares of BRCM have been
consolidating near their recent highs and just under the 200-week
moving average ($46.23), in anticipation of the next bullish
catalyst.  Given the fact that the Semiconductor sector (SOX.X)
has been unable to break from its dominant downtrend of the past
several months, BRCM's strength is that much more impressive.
There should now be very strong support in the $43.50-44.00 area
and a pullback and rebound in that area would make for a great
continuation entry.  Of course, a breakout through the $46
resistance level would be a solid momentum entry point as well.
Once through that level, we can look for BRCM to make a run at
strong resistance at $50.  We'll keep our stop set at $42.75 for
now, as that is solidly below the 20-dma ($43.12).

Picked on June 16th at      $43.79
Change since picked          +1.62
Earnings Date              4/22/04 (confirmed)
Average Daily Volume =    8.06 mln




---

Cisco Systems - CSCO - close: 23.43 change: -0.25 stop: 22.50

After pressing right to the edge of resistance on Wednesday, CSCO
looked ready to blast off and make a run at higher levels of
resistance.  The technical picture looked good enough to get us
to add bullish coverage of the stock, but fortunately we had the
foresight to use a high enough trigger ($24.25) to signify a real
breakout.  The stock surged to within a nickel of that point on
Thursday before turning south and heading back towards support on
Friday.  While CSCO is still poised for a breakout, we'll remain
on the sideline (in other words we don't want to buy the dip)
until that move through our trigger occurs.  Maintain stops at
$22.50.

Picked on June 16th at      $23.97
Change since picked          -0.54
Earnings Date              8/10/04 (unconfirmed)
Average Daily Volume =    51.8 mln





  --------------------
  Bearish Play Updates
  --------------------

QLogic Corp. - QLGC - close: 26.76 change: -0.62 stop: 28.15

A week after beginning bearish coverage of QLGC, we've certainly
seen the stock go through the whole cycle!  First it refused to
break under the $25 level, which avoided hitting our trigger for
the play.  Then shares soared right to resistance near $28 on
Thursday before doing an about face on Friday, rolling over from
precisely where we expected resistance to come into play.  It is
interesting to note that the intraday highs were capped by the
20-dma ($27.99), while the stock was unable to close above the
50-dma (now at $27.64).  With daily Stochastics now tipping over
in bearish fashion, it certainly looks like the downtrend is very
much intact.  We'll continue to wait for our trigger at $25 to be
hit before entering the play.  Momentum entries below the trigger
or rollover entries on a failed bounce below the 50-dma after the
initial breakdown are still our preferred entry points.  Maintain
stops at $28.15.

Picked on June 20th at      $25.57
Change since picked          +1.19
Earnings Date              4/28/04 (confirmed)
Average Daily Volume =    4.60 mln





=================================================================
Stock Bottom / Active Trader (AT) section
=================================================================

=========
NEW PLAYS
=========

============
PLAY UPDATES
============

  --------------------
  Bullish Play Updates
  --------------------

J. C. Penney - JCP - close: 38.70 change: +0.31 stop: 36.75*new*

While the bullish trend is still very much intact in JCP, the
stock didn't manage to make much headway last week.  The Tues/Wed
rally up to the $39 level was followed by a slight retracement on
Thursday and then a rebound towards the highs on Friday.  Since
the rebound from the 10-dma (now at $37.84) a couple weeks ago,
that average hasn't really been challenged, and we're expecting
to see support found at that point when it is challenged.  With
that in mind, a pullback near the 10-dma looks like a solid
continuation entry for those that missed the breakout entry
point.  On the other hand, should price shoot higher next week,
momentum traders can consider entries on a push over the $39.15
level.  We'll inch our stop up to $36.75 this weekend and will
trail it just below the 20-dma ($36.95).

Picked on June 20th at      $37.85
Change since picked          +0.85
Earnings Date              8/17/04 (unconfirmed)
Average Daily Volume =    3.16 mln




---

Sherwin Williams - SHW - close: 41.20 change: -0.16 stop: 39.25

SHW is off to a strong start.  Shares have powered their way
through round-number resistance at $40.00 with volume rising on
the rally.  The next hurdle is the $42.00 mark but SHW may be due
for a dip after three back-to-back weeks of gains.  Bulls might
consider looking for the dip back to $40.00 and buying the
bounce.  SHW hasn't produced any headlines of late but an upgrade
for Rohm & Haas (ROH), a chemical manufacturer, could boost SHW
too.  ROH makes chemicals for paints.  An analyst at Smith Barney
upgraded ROH because sales of paint have been on the rise with
the strong housing market (wholesale paint sales) and a strong
retail market for consumers upgrading to higher-quality (and more
expensive) paints.

Remember that we have a 4-to-6 week time horizon to reach our
$44-45 target or until SHW announces earnings, whichever comes
first.  We do not plan to hold over SHW's earnings in late July.

Annotated Chart:




Picked on June 20 at $39.96
Gain since picked:   + 1.24
Earnings Date      04/29/04 (confirmed)
Average Daily Volume:   777 thousand




============
CLOSED PLAYS
============


  --------------------
  Closed Bullish Plays
  --------------------

Starbucks Corp. - SBUX - cls: 43.20 chng: -0.43 stop: 42.90

After giving us a strong run from the initial breakout above the
$40 level, SBUX has run into a strong wall of resistance near the
$44 level.  We gave the play plenty of time to push through that
level and hit our $45 target, but the bulls just couldn't get the
job done.  With the peel off from resistance over the past couple
days, it looks like it is more likely that our stop will be hit
before that profit target is reached.  Rather than wait for that
event, we're going to pull the plug this weekend, while we're
still sitting on a solid gain.  Aggressive traders that are
willing to hold out for another bounce from above $43 can roll
the dice, but should keep that stop in place.  The more prudent
approach at this point is to lock in the gain and look to put the
funds to work in a more promising play.

Picked on May 26th at       $39.67
Change since picked          +3.53
Earnings Date              7/21/04 (unconfirmed)
Average Daily Volume =    2.81 mln





  --------------------
  Closed Bearish Plays
  --------------------

Lennar Corp. - LEN - close: 45.66 change: +0.17 stop: 46.50

Rather than the expected breakdown below support, LEN caught a
strong boost of buying on Thursday and surged to within a few
cents of hitting our stop.  Testing that $46.50 resistance level
again on Friday, LEN looks like it wants to break out, despite
the intraday pullbacks we've seen over the past two days.  Since
our entry trigger was never hit, the stock never issued its PnF
Sell signal and we never got an opportunity to enter the play.
We'll chalk this one up as a great setup that never materialized,
but we'll keep our eye out for another setup for that breakdown
following the FOMC meeting next week.

Picked on June 16th at      $42.90
Change since picked          +2.76
Earnings Date              6/15/04 (confirmed)
Average Daily Volume =    2.00 mln




---

Hot Topic - HOTT - close: 21.22 change: +0.45 stop: 20.51

Bad news for bears in HOTT.  The stock is surging higher and
trying to breakout over its descending technical resistance on no
news.  It's the no-news part that is perplexing.  HOTT shot
higher on Thursday with stronger than average volume for no
apparent reason.  The RLX didn't move on Thursday so it wasn't
sector related.  We were stopped out at $20.51.   Currently HOTT
is trying to break through the $22.00 level and managed to close
over its simple 50-dma.

Picked on June 20 at $19.31
Gain since picked:   + 1.91
Earnings Date      05/19/04 (confirmed)
Average Daily Volume:   1.3 million




=================================================================
HIGH RISK/HIGH REWARD (HR) section
=================================================================

=========
NEW PLAYS
=========

  -----------------
  New Bullish Plays
  -----------------

Evolving Systems - EVOL - close: 5.15 change: +0.40 stop: 4.60

Company Description:
Evolving Systems, Inc. is a provider of mission critical and
cost-effective software solutions to tier one telecommunications
companies.  The company maintains long-standing relationships
with wireline and wireless telecommunications providers in the
United States.  Customers rely on Evolving Systems to develop,
deploy, enhance, maintain and integrate complex, reliable
software solutions for a range of operations support systems
(OSS) and enhanced services platforms.  The company offers
software products and solutions that enable its customers to
comply with government-mandate requirements regarding local
number portability for wireline and wireless number portability.
Evolving Systems also offers inventory and assignment software
that supports carriers' compliance with the government phone
number conservation mandates.  In addition, the EVOL offers
network assurance and fulfillment solutions that were added to
its portfolio when it acquired CMS Communications Inc. in 2003.

Why we like it:
It has been a very rough several months for investors in EVOL, as
the stock has plunged from the $18 area to a May low just above
$3.  That's over an 80% haircut in a matter of months, and that's
bound to generate at least a bit of an oversold bounce.  That
appears to be precisely what we experienced through the first two
weeks of this month, as EVOL broke through resistance near the
$4.50 level and surged to almost $7 before falling back towards
support.  With the dominant downtrend of the past several months
still very much intact and the PnF chart still bearish, this is
obviously a very aggressive play.  But it looks like the
potential is there for a very lucrative short-term bullish move.
Since topping near the $6.75 level earlier in the month, EVOL has
been tracing out a bull flag pattern and Friday's sharp rally
gave us the bullish break from the pattern we've been waiting
for.

After the first surge higher on Friday morning, the stock settled
into a sideways consolidation pattern, which is particularly
encouraging in light of the afternoon weakness throughout much of
the broad market.  Looking at both the daily chart and Friday's
intraday chart, it looks like a break above Friday's high should
get the bulls running again and we're expecting a rally to at
least the $6.00 level and potentially a retest of the mid-June
highs.  Aggressive traders can target entries on a pullback near
the $4.70-4.80 area, while the more conservative approach will be
to wait for a break to the upside, entering on a move over $5.30.
We'll initially target $6.00, but keep our eye out for a sharp
move up to challenge the mid-June highs.  Set stops initially at
$4.60, which is just under last week's lows and the 20-dma
($4.69).

Annotated Chart of EVOL:



Picked on June 27th at       $5.15
Change since picked          +0.00
Earnings Date              3/08/04 (confirmed)
Average Daily Volume =       633 K




============
PLAY UPDATES
============

  --------------------
  Bullish Play Updates
  --------------------

Mace Security - MACE - close: 5.76 change: -0.05 stop: 5.35

Price action in shares of MACE hasn't been particularly
encouraging since the sharp drop on June 17th, the we can't quite
bring ourselves to pull the plug on the play.  After bottoming at
$5.40, the stock crept up as high as $6.00 before heading back
south over the past couple sessions and is really trying to put
in a higher low in the $5.60 area.  A breakout over $6.00 will
have the stock heading for a retest of the recent highs in the
$6.60 area, while a breakdown under $5.40 will tell us quite
clearly that it is time to move on.  While aggressive traders
could consider new positions on a bounce in the $5.60-5.70 area,
our preference at this stage would be to enter on proven strength
over the $6.05 level.

Picked on June 13th at       $6.05
Change since picked          -0.29
Earnings Date                  N/A
Average Daily Volume =    4.92 mln





  --------------------
  Bearish Play Updates
  --------------------

NPS Pharm. - NPSP - close: 21.07 change: +0.15 stop: 22.00

After the reflexive rebound following the one-day dip below $20,
shares of NPSP have been trading in a very narrow range, but have
been exerting steady pressure on resistance just over the $21
level.  The stock closed near the top of its week-long range on
Friday, but with the 20-dma ($21.30) and 30-dma ($21.56) looming
just overhead, the bulls are going to have their work cut out for
them.  Additionally, we have the daily Stochastics oscillator
topping out in overbought territory and threatening to tip over.
A rollover looks like the best opportunity for initiating new
positions and our preference would be on a rejection from the 20-
dma early next week.  Momentum traders can consider new entries
on a break below the bottom of the past week's range at $20.50.
For a real breakdown, we're going to need to see NPSP break and
close below the $20 level, but for now we're stuck in this
holding pattern.  Maintain stops at $22.

Picked on June 13th at      $20.68
Change since picked          +0.39
Earnings Date              5/06/04 (confirmed)
Average Daily Volume =    1.08 mln




---

Sohu.com - SOHU - close: 20.18 change: -0.32 stop: 21.51

We would have liked to see more follow through on the breakdown
under $20.00 but we're not going to complain about a 4% drop in
SOHU shares this week.  SOHU and its Chinese Internet brethren
have been hovering around their Monday lows as they consolidate
recent declines.  We're encouraged that they are not in rally
mode like the larger Internet stocks YHOO, AMZN and EBAY.
Therein lies our future risk, though.  As YHOO begins what could
be a pre-earnings ramp up (for its July 7th earnings) it might
rub off on stocks like SOHU.  We'd be extra careful initiating
new plays here.  Fortunately, the bounce on Thursday in SOHU (and
SINA and NTES) failed and technicals remain mostly bearish.

Please note this is an aggressive play.  SOHU tends to be
volatile.  Watch your stops carefully.  We're going to lower our
stop loss to $21.51.  New plays might be considered on a move
lower through $19.50.

Annotated Chart:




Picked on June 20 at $21.14
Gain since picked:   - 0.96
Earnings Date      04/29/04 (confirmed)
Average Daily Volume:   3.0 million




============
CLOSED PLAYS
============

  --------------------
  Closed Bearish Plays
  --------------------

Rambus Inc - RMBS - close: 17.50 chg: +0.68 stop: 17.51

It's possible that our stop at $17.51 was a little too tight.  Of
course it's tough to be bearish in chips stocks when the SOX
semiconductor index rallies more than 5% in a week.  RMBS decided
to rally with it and hit $17.50, one penny below our stop on
Wednesday.  Thursday it hit $17.51 stopping us out.  Friday it
hit $17.51 again but couldn't crack it (or its simple 21-dma).
RMBS's point-and-figure chart is still bearish so traders might
want to keep an eye on it for a move lower back through $16.50.
We're closing the play at our stop 17.51.

Picked on June 6 at $17.68
Gain since picked:  - 0.18
Earnings Date     04/14/04 (confirmed)
Average Daily Volume:  1.7 million




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

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

CFC announces another 2-for-1 split

This morning before Friday's opening bell Countrywide Financial
Corp (NYSE:CFC) announced that its Board of Directors has approved
a 2-for-1 stock split in the form of a stock dividend.

The split will be payable on August 30th, 2004 to shareholders on
record as of August 25th.  The split is subject to shareholder
approval.  On August 17th, 2004 CFC will hold a special meeting of
shareholders to approve an increase in the number of authorized
shares from 500 million to 1 billion, to enable the stock split.


About the company:
Founded in 1969, Countrywide Financial Corporation is a member of
the S&P 500, Forbes 2000 and Fortune 500. Through its family of
companies, Countrywide provides mortgage banking and diversified
financial services in domestic and international markets.
(source: company press release)


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

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:
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Do not duplicate or redistribute in any form.






PremierInvestor.net Newsletter          Weekend Edition 06-27-2004
                                                    section 3 of 3
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 three:

Market Watch for Week of June 28th, 2004
   - Major Earnings
   - Stock Splits
   - Economic Reports

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 Watch for the week of June 28th
==========================================

-----------------
Earnings Calendar
-----------------

Symbol  Co               Date           Comment      EPS Est

------------------------- MONDAY -------------------------------

RIMM   Research In Motion LtdMon, Jun 28  After the Bell      0.32
SONC   Sonic Corp.           Mon, Jun 28  -----N/A-----       0.31

------------------------- TUESDAY ------------------------------

MKC    McCormick & Company   Tue, Jun 29  Before the Bell     0.29
NPSN   NASPERS LTD           Tue, Jun 29  -----N/A-----        N/A


------------------------ WEDNESDAY -----------------------------

STZ    Constellation Brands  Wed, Jun 30  After the Bell      0.50
EMMS   Emmis Communications  Wed, Jun 30  -----N/A-----       0.07
GIS    General Mills, Inc.   Wed, Jun 30  Before the Bell     0.72
MON    Monsanto Company      Wed, Jun 30  Before the Bell     0.82


------------------------- THUSDAY -----------------------------

BMET   Biomet, Inc.          Thu, Jul 01  Before the Bell     0.36
CAG    ConAgra Foods, Inc.   Thu, Jul 01  Before the Bell     0.42


------------------------- FRIDAY -------------------------------

None


----------------------------------------------
Upcoming Stock Splits In The Next Two Weeks...
----------------------------------------------

Symbol  Co Name              Ratio    Payable     Executable

FBMT    First National Bancshares 3:2      Jun  30th   Jul   1st
KWK     Quicksilver Resources, Inc2:1      Jun  30th   Jul   1st
AXYS    Axsys Technologies, Inc   3:2      Jun  30th   Jul   1st
TEVA    Teva Pharm Industries Ltd 2:1      Jun  30th   Jul   1st
PTEN    Patterson-UTI Energy Inc  2:1      Jun  30th   Jul   1st
CNT     CenterPoint Prop Trust    2:1      Jun  30th   Jul   1st
LPMA    Lipman Elect Engineering  2:1      Jul   1st   Jul   2nd
BPOP    Popular Inc.              2:1      Jul   8th   Ju1   9th
URBN    Urban Outfitters Inc      2:1      Jul   9th   Ju1  12th


--------------------------
Economic Reports This Week
--------------------------

This is it!  This is the week the markets have been focused on
for the past month.  Tuesday brings the consumer confidence numbers.
Wednesday is the PMI, the FOMC decision on rates and the Iraq
handover.  Thursday is the ISM index announcement and Friday
is the June non-farm payrolls report.



==============================================================
                       -For-

----------------
Monday, 06/28/04
----------------
Personal Income (BB)       May  Forecast:    0.5%  Previous:     0.6%
Personal Spending (BB)     May  Forecast:    0.8%  Previous:     0.3%


-----------------
Tuesday, 06/29/04
-----------------
Consumer Confidence (DM)   Jun  Forecast:    95.0  Previous:     93.2


-------------------
Wednesday, 06/30/04
-------------------
Chicago PMI (DM)           Jun  Forecast:    64.5  Previous:     68.0
FOMC Meeting - ANNOUNCEMENT on INTEREST RATES
IRAQ DEADLINE for formal handover of power.

------------------
Thursday, 07/01/04
------------------
Initial Claims (BB)      06/26  Forecast:     N/A  Previous:     349K
Construction Spending (DM) May  Forecast:    0.5%  Previous:     1.3%
ISM Index (DM)             Jun  Forecast:    61.2  Previous:     62.8
Auto Sales (NA)            Jun  Forecast:    5.6M  Previous:     5.7M
Truck Sales (NA)           Jun  Forecast:    8.0M  Previous:     8.5M


----------------
Friday, 07/02/04
----------------
Nonfarm Payrolls (BB)      Jun  Forecast:    240K  Previous:     248K
Unemployment Rate (BB)     Jun  Forecast:    5.6%  Previous:     5.6%
Hourly Earnings (BB)       Jun  Forecast:    0.3%  Previous:     0.3%
Average Workweek (BB)      Jun  Forecast:    33.9  Previous:     33.8
Factory Orders (DM)        May  Forecast:    1.5%  Previous:    -1.7%


Definitions:
DM=  During the Market
BB=  Before the Bell
AB=  After the Bell
NA=  Not Available


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

PTR     Petrochina Co Ltd          45.90    +0.63
GS      Goldman Sachs Group Inc    94.55    +1.36
CSR     Credit Suisse Group        35.76    +0.95
NXTL    Nextel Communications      26.83    +0.69
WLP     Wellpoint Health Network  111.35    +1.40
HIG     Hartford Fncl Srvcs Grp    67.92    +0.70


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

LUV     Southwest Airlines Co      17.00    +1.23
AKAM    Akamai Technologies Inc    17.45    +1.43
WHI     W Holding Company          17.69    +1.68
SIMG    Silicon Image Inc          12.23    +1.99
USG     USG Corp                   18.00    +1.02
CKP     Checkpoint Systems Inc     18.50    +1.13


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

EBAY    Ebay Inc                   90.72    +1.98
DELL    Dell Inc                   36.02    +1.10
NKE     Nike Inc CI B              75.31    +2.91
BIIB    Biogen Idec Inc            62.37    +1.79
ERTS    Electronic Arts Inc        53.25    +1.94


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

XOM     Exxon Mobil Corporation    44.25    -1.02
PEP     Pepsico Inc                54.00    -1.13
GE      General Electric Co        32.18    -1.09
ABT     Abbott Laboratories        40.56    -1.35
ADP     Automatic Data Processng   42.44    -1.30


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

NCC     National City Corp         34.60    -0.63
RTN     Raytheon Co                34.67    -0.30
GDW     Golden West Financial     107.65    -1.15
APC     Anadarko Petroleum Corp    57.83    -0.72
ITT     ITT INdustries Inc In      83.63    -1.12


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