PremierInvestor.net Newsletter Thursday 08-12-2004 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: Hewlett Packard Disappoints Market Sentiment: Markets Slide Again Watch List: Software to Restaurants ================================================================= MARKET WRAP (view in courier font for table alignment) ================================================================= 08-12-2004 High Low Volume Adv/Dcl DJIA 9814.59 -123.70 9936.48 9808.54 1.71 bln 898/2308 NASDAQ 1752.49 - 29.90 1774.68 1751.95 1.63 bln 825/2220 S&P 100 519.56 - 6.98 526.54 519.47 Totals 1723/4528 S&P 500 1063.23 - 12.56 1075.79 1062.82 W5000 10293.52 -159.20 10416.62 10291.76 SOX 365.27 - 7.40 372.67 363.39 RUS 2000 517.10 - 9.53 526.63 517.07 DJ TRANS 2995.44 - 54.50 3050.03 2993.93 VIX 19.08 + 1.04 19.30 18.36 VXO (VIX-O)19.16 + 1.63 19.53 18.13 VXN 28.28 + 1.32 28.54 27.41 Total Volume 3,629M Total UpVol 472M Total DnVol 3,125M Total Adv 1986 Total Dcl 5133 52wk Highs 34 52wk Lows 463 TRIN 2.54 NAZTRIN 1.63 PUT/CALL 1.06 ================================================================= =========== Market Wrap =========== Hewlett Packard Disappoints by Jim Brown Disappoint is probably the wrong word for the HPQ earnings this morning. Not only did the news knock -16% off HPQ stock but knocked tech stocks back to August 2003 levels. New lows are beginning to be the norm and the event risk is only increasing as the month progresses. Dow Chart – Daily Nasdaq Chart – Daily SPX Chart – Daily The morning started calmly with Jobless Claims neutral at a slightly lower 333,000 for the week and slightly below consensus estimates. No news here but plenty of other events to worry the market. Import and Export prices rose +0.2% in July and erased the June loss. Unfortunately the main component for the rise was higher oil prices. The gain for the last year stands at +5.5% but only +2.6% when you remove the oil impact. This is good news for the economy because it shows the recent soft patch took nearly all signs of inflation out of prices. Import prices for consumer goods ex-autos were unchanged for the second consecutive month. This was good news for the market but the news was still rising prices due to higher oil. Retail Sales for July rose +0.7% and erased the -0.5% decline in June. A strong jump in auto sales was the main cause as dealers piled on the incentives to dump excess inventory in front of the change in model years. Remove auto sales and the headline number would have only risen +0.2%. Consumers are still on hold without a powerful incentive to part with their cash as in the $5,000+ rebates on autos. The next report will show any back to school rise but weekly reports have yet to show any material gains. Business Inventories rose +0.9% and well over consensus estimates of +0.6%. This was the largest gain in more than two years and the gains were accompanied by only a minimal +0.1% jump in sales. The ramp in inventories could help to boost the next GDP revision but overall it is not a good sign when not accompanied by a rise in sales. We have seen Cisco and Intel and various other tech companies complain about rising inventory levels as a result of slow sales and this is confirmation on a much broader scale. It is time for consumers to rush into the gap or recession fears will return to the market. If inventories are rising because dealers are experiencing a pickup in sales then this number would be highly positive. Unfortunately it appears the buildup was unintentional and could put the brakes on manufacturers prematurely. The FOMC minutes for June contained some bearish news with several members openly concerned about the jump in inflation. Several argued to remove the "measured pace" phrase to allow them to hike rates faster as in 1994. This is very negative to market sentiment as it shows the Fed is ready to aggressively hike and only the June swoon in the economy kept them from moving faster at the last meeting. The Fed, constantly looking down from their ivory tower, continues to see strongly bullish signs in the economy. This report was seen as bearish with the dissention among the ranks as to the pace of hikes. The major event risk to the market is no longer the Olympics but appears to have shifted to any remaining tech earnings. HPQ surprised the markets this morning with earnings a week before they were expected and with a huge earnings miss. They also warned that the tech weakness would continue through the current quarter. Carly Fiorina said demand had dropped sharply at the end of the quarter as the economy stumbled. Earnings after items were only 24 cents and analysts were expecting 31 cents. HPQ stock was pounded for a -16% haircut and the tech ripples pushed many other high profile tech stocks to new 52-week lows. Many claim the problem was related to HPQ only. They saw declines in enterprise servers and storage which is exactly where IBM and Dell are showing gains. Still the negative sentiment was indelibly etched on the market consciousness at the open and it lasted all day. Even the news from IBM failed to rally techs. IBM said they were hiring 18,800 new employees in 2004, up +8,800 from their prior forecast. IBM is seeing strength in its global services business and its enterprise server division. This will bring IBM employment back to highs not seen since 1991 when they had 344,000 workers. In IBM's heyday in the mid 1980s they employed over 400,000. The bad news was only one third of the 18,800 new hires would be in the U.S. The rest would be half in Asia and the remainder dotted around the globe. Dell also reported earnings tonight with results inline with estimates at 31 cents per share. Dell is showing growth in servers, storage and printing and continuing to take market share. After the HPQ news today we know where most of their share came from. The company said demand improved on a global basis with a +19% increase in shipments. Shipments to Europe, Middle East and Africa rose +30%. Dell saw a +44% increase in server shipments and a +60% increase in storage products. What was unsaid was the majority of Dell's growth was outside the U.S. They did report gains in the U.S. but they were far below the gains in the global market. With those three major companies above you have the good news and bad news about the current tech story. Dell is a winner and met estimates with strong overseas sales and lower component costs. IBM is adding nearly 13,000 workers to handle business outside the U.S. and is seeing its biggest gains in its services business. HPQ, stumbled and both IBM and DELL took advantage of the situation. Did business improve to the point that IBM and Dell profited from the gains or did they just capture the share that HPQ lost? It is not a zero sum game but with all three companies running neck and neck it should diminish the overall impact of Dell's report. The Dell CFO was the first to say that they were continuing to gain market share at a rapid pace. Also tanking the market was another new high in the price of oil. Oil soared to $45.75 and closed at $45.45 as bad news for the sector continues to mount. The Yukos saga continued with increasing fears that they may have to cease production in as much as half of their 1.7 million barrels per day due to a freeze on their assets. The war heated up again in Iraq with a raid against Al Sadar and fears of retaliation with oil sabotage helped to spike prices. Twin storms Bonnie and Charlie are shutting down production in the gulf for two days this week as they churn across the oil fields. The one piece of good news came from Venezuela which said there would be no impact to oil shipments from the coming election. Analysts had feared a slowdown depending on the victor. TrimTabs.com said today that $1 billion flowed out of equity funds for the week ended Wednesday. My initial thought was "is that all?" With the strong downtrend in place I would have thought it would have been higher but I forgot about the two day rally in the middle. Money flow is like the wind, it changes on a whim with the ebb and flow of market fortunes. Those fortunes have been highly volatile recently with Thursday's -123 point Dow drop the fourth triple digit day in the last two weeks. Heck we have not had that kind of volatility in ages. Welcome to August and the start of the three most bearish months of the year. With only two weeks behind us and a lot of potential potholes ahead it could be a rough month. The Dow closed at 9814 and only a little more than a dozen points from a nine month low. 9800 is the last support level before we risk a sharp drop to 9500 and a 38% retracement of the 2003 rally. That may sound like a lot but considering the strength and length of that rally, from the 7416 March low to the 10753 February high the Dow rebounded +45%. In perspective giving back a thousand points of that +3300 point gain does not seem so drastic. The Nasdaq has been the focus of the tech wreck and the bloodshed does not appear to be over. The Nasdaq closed at 1752 and a level not seen since last AUGUST. Sound familiar? Even during the strong bull run in 2003 the Nasdaq dropped about -7% in the first two weeks of August before charging higher. Without the same economic dynamics in place today, warnings every day and major event risk in our future the odds of a similar rebound are slim. The Nasdaq has risk to 1600 which is major support. 1700 was my initial target as the 50% retracement but we are already very close to that level with a lot of bumpy road ahead. The equivalent level on the SPX would be 965 and that seems light years away from today's 1063 close. I am not predicting it but just pointing out the worst case scenario. The SOX continues to be the weakest link with a break below 385 support on Wednesday and a close at 365 on Thursday. I am now targeting SOX 350 for bargain hunters to appear. SOX Chart – Daily Our problem for the coming weeks is not specifically the various high risk events but the constant earnings warnings as the current cycle draws to a close and the lack of any meaningful catalyst to push us higher. Everyone knows that earnings are slowing and the warnings serve to punctuate that fact on a daily basis. Despite the slowing they are still strong but that factor is lost on investors facing the "why buy" question. Add in the potential for $50 oil before the month is out and we could see even more warnings from those companies that depend on oil for their products. The economy continues to sputter and traders can't decide if we are growing or recessing and the Fed is determined to continue its rate hike scenario. Now under this shaky set of market building blocks place several firecrackers of event risk with fuses already smoldering. The stage is set and the potential for further, possibly significant, market events to the downside far outweigh the upside potential over the next three weeks. We also have a market milestone coming next week when Google prices its IPO. They said after the close today that the auction would begin tomorrow and the IPO would be priced next week. With the smoke swirling around the deal this could send a very negative message to the street should the IPO not find enough buyers to meet the posted prices. With two thirds of investors polled saying they would not touch the IPO and the majority of those left saying they would buy only at a much lower prices, GOOG may have a challenge ahead. If the auction does go off successfully it will take $3 billion out of the tech marketplace at a time when techs need all the help they can get. Should be interesting. As an investor I would not worry about any impending future dips and use them as buying opportunities for bargain stocks. Look for blue chips beaten down from the last several months of selling and tech stocks with rapidly increasing earnings. Look for lower lows over the next three weeks and plan on entering in small increments as your target prices are reached. You do not have to be a trader to profit from a bear market. You only have to be willing to buy good stocks in a down market. Enter Passively, Exit Aggressively. Jim Brown Editor =============================== Market Sentiment =============================== Markets Slide Again - J. Brown Ouch! The Stock Traders Almanac wasn't kidding when it said August was the worst month of the year for the Dow Industrials. It also stated that August is the second worst for the NASDAQ. As Jim pointed out in the wrap tonight we're only half way through the month and we still have the Olympics and the Republican National Convention ahead of us. The sell-off this week has been fueled by disappointing earnings from tech heavy weights CSCO and HPQ but it has been exacerbated by the record high prices in crude oil. Fears that corporate earnings may slow down faster than previous expected on top of fears that the economy may be slowing added to fears that we could see a terrorist event in Athens, New York or somewhere where in the global oil supply all add up to a big reason why investors are not eager to buy stocks right now. Looking at some of the investor sentiment gauges we see the VIX/VXO/VXN all gaining sharply and nearing their recent highs. While it could be a sign that we're near a bottom veteran traders know that there's nothing to stop these volatility indices from skyrocketing higher. Likewise the ARMS index's moving averages are all nearing bullish reversal levels but that doesn't mean we can't see them climb even higher. Market internals were obviously negative today. Declining stocks outnumbered advancers 20-to-7 on the NYSE and 22-to-8 on the NASDAQ. Down volume was about 7-to-1 over up volume on the NYSE and about 6-to-1 on the NASDAQ. Looking across the various sector indices I'm seeing a lot of new bearish breakdowns and new lows. Plus, those sectors that had weathered the recent weakness with any strength are starting to roll over as well. Overall the market and most of the stocks I looked at today look terrible and when everything starts to look this bad it makes me suspect that we could be in for a bounce soon but until then the "trend is your friend". Keep in mind that doesn't mean we should be opening huge bearish positions but if that's all the market is providing (bearish opportunities) then we can choose to sit out or initiate small, speculative plays. Something to take note of is the Stock Trader Almanac's observation that the last week in August has been very bearish for six out of the last seven years. Yes, this is definitely a tough spot to confidently buy stocks right now. ----------------------------------------------------------------- Market Averages DJIA ($INDU) 52-week High: 10753 52-week Low : 9208 Current : 9814 Moving Averages: (Simple) 10-dma: 9985 50-dma: 10133 200-dma: 10227 S&P 500 ($SPX) 52-week High: 1163 52-week Low : 979 Current : 1063 Moving Averages: (Simple) 10-dma: 1083 50-dma: 1102 200-dma: 1108 Nasdaq-100 ($NDX) 52-week High: 1559 52-week Low : 1220 Current : 1304 Moving Averages: (Simple) 10-dma: 1352 50-dma: 1406 200-dma: 1444 ----------------------------------------------------------------- CBOE Market Volatility Index (VIX) = 19.08 +1.04 CBOE Mkt Volatility old VIX (VXO) = 19.12 +1.59 Nasdaq Volatility Index (VXN) = 28.28 +1.32 ----------------------------------------------------------------- Put/Call Ratio Call Volume Put Volume Total 1.06 658,641 695,880 Equity Only 0.98 506,274 495,092 OEX 0.72 42,035 30,373 QQQ 2.52 65,502 165,253 ----------------------------------------------------------------- Bullish Percent Data Current Change Status NYSE 53.2 - 1 Bear Confirmed NASDAQ-100 26.0 - 1 Bear Confirmed Dow Indust. 46.7 - 7 Bear Confirmed S&P 500 47.2 - 1 Bear Confirmed S&P 100 45.0 - 4 Bear Confirmed Bullish percent measures the number of stocks in an index currently trading on a buy signal on their point and figure chart. Readings above 70 are considered overbought, and readings below 30 are considered oversold. Bull Confirmed - Aggressively long Bull Alert - Cautiously long Bull Correction - Pause or pullback in upward trend Bear Alert - Take defensive action if long Bear Confirmed - High risk if long, good conditions for shorting Bear Correction - Pause or rebound in downtrend ----------------------------------------------------------------- 5-dma: 1.74 10-dma: 1.63 21-dma: 1.42 55-dma: 1.25 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 749 803 Decliners 2050 2202 New Highs 29 13 New Lows 92 198 Up Volume 211M 235M Down Vol. 1473M 1333M Total Vol. 1700M 1578M M = millions ----------------------------------------------------------------- Commitments Of Traders Report: 07/27/04 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 Commercial traders haven't made any big bets but the data we're looking at doesn't reflect the big sell-off in the last two days. Small traders remain bullish as of this report. Commercials Long Short Net % Of OI 07/13/04 407,166 416,869 ( 9,703) (1.2%) 07/22/04 404,828 419,017 (14,189) (1.7%) 07/27/04 397,354 422,914 (25,560) (3.1%) 08/03/04 401,619 419,429 (17,810) (2.2%) 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 07/13/04 133,935 95,787 38,148 16.6% 07/22/04 138,123 94,990 43,133 15.5% 07/27/04 135,136 90,433 44,703 19.8% 08/03/04 128,510 88,833 39,677 18.3% 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 Not much movement in the e-minis from commercial traders. Small traders have turned a bit more bullish, but again this is before the big sell-off. Commercials Long Short Net % Of OI 07/13/04 265,142 427,017 (161,875) (23.4%) 07/22/04 309,972 428,240 (118,268) (16.0%) 07/27/04 337,615 429,477 ( 91,862) (12.0%) 08/03/04 340,053 428,736 ( 88,683) (11.5%) Most bearish reading of the year: (354,835) - 06/17/03 Most bullish reading of the year: 133,299 - 09/02/03 Small Traders Long Short Net % of OI 07/13/04 225,410 57,699 167,711 59.2% 07/22/04 212,078 62,416 149,662 54.5% 07/27/04 186,211 68,930 117,281 46.0% 08/03/04 195,105 68,717 126,388 47.9% 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 reversed their previous gain by paring their longs and adding to their shorts. Meanwhile small traders have turned bearish again. Commercials Long Short Net % of OI 07/13/04 44,211 37,007 7,204 8.9% 07/22/04 45,069 37,975 7,094 8.5% 07/27/04 43,042 35,935 7,107 9.0% 08/03/04 42,771 36,863 5,908 7.4% 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 07/13/04 7,847 15,243 (7,396) (32.0%) 07/22/04 9,398 11,776 (2,378) (11.2%) 07/27/04 14,543 14,518 25 0.0% 08/03/04 8,995 13,901 (4,906) (21.4%) 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 Commercials seem to be taking some money off the table as their bullish stances seems to waver a bit here. Small traders pared back their longs and their shorts but remained net bearish. Commercials Long Short Net % of OI 07/13/04 27,773 20,573 7,200 14.9% 07/22/04 27,957 20,389 7,568 15.7% 07/27/04 27,577 21,427 6,150 12.5% 08/03/04 30,118 25,029 5,089 9.2% 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 07/13/04 5,292 9,068 (3,776) (26.3%) 07/22/04 4,857 7,297 (2,440) (20.1%) 07/27/04 5,310 6,099 ( 789) ( 6.9%) 08/03/04 4,325 5,212 ( 887) ( 9.3%) 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 --------------------------------- Software to Restaurants Oracle - ORCL - close: 9.90 change: -0.29 WHAT TO WATCH: Software giant ORCL has broken down under long- term, psychological, round-number support at the $10.00 level. The move has also produced a new "sell" signal on its MACD indicator. Readers might want to use the drop as an entry point to target ORCL's next level of support at $9.00. The bearish P&F chart actually points to a $4.00 target. --- Dana Corp - DCN - close: 17.59 change: -0.36 WHAT TO WATCH: The trend of lower highs is about to blossom into a major breakdown under support in the $17.50-17.00 range. The recent oversold bounce in DCN has quickly failed and the bearish P&F chart points to a $12.00 target. Readers can choose their trigger depending on how much confirmation they'd like. A quick drop to its November lows near $14.75 is certainly a possibility. --- Ruby Tuesday - RI - close: 26.23 change: -1.02 WHAT TO WATCH: Restaurant stock RI has fallen more than 3.7% to break the neckline of its Head & Shoulders pattern. This technical pattern currently points to a $22-21 price target. Readers could use a drop under $26.00 as an entry point to short the stock. The P&F chart, while still bullish, has produced a high-pole warning. ----------------------------------- RADAR SCREEN - more stocks to watch ----------------------------------- ABV $21.76 +0.75 - ABV has rallied right back to resistance at the $22.00 level but managed to close over its simple 200-dma. PWER $7.74 -0.24 - PWER has broken under support at $8.00 to hit new one-year lows. This could be an entry point for a drop toward $6.50 SBUX $43.73 -0.87 - Starbucks is finally showing some weakness. We would watch for a drop toward the simple 100-dma, which was technical support back in May. ================================================================= To stop receiving this PremierInvestor.net Newsletter, send email to Contact Support ================================================================= DISCLAIMER ================================================================= This newsletter is a publication dedicated to the education of stock traders. The newsletter is an information service only. The information provided herein is not to be construed as an offer to buy or sell securities of any kind. The newsletter picks are not to be considered a recommendation of any stock but an information resource to aid the investor in making an informed decision regarding trading in stocks. It is possible at this or some subsequent date, the editors and staff of PremierInvestor.net may own, buy or sell securities presented. All investors should consult a qualified professional before trading in any security. The information provided has been obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. PremierInvestor.net staff makes every effort to provide timely information to its subscribers but cannot guarantee specific delivery times due to factors beyond our control. Please read our disclaimer at: http://www.optioninvestor.com/page/oin/aboutus/disclaimer.html ***************************************************************** ADVERTISING INFORMATION For more information on advertising in PremierInvestor.net Newsletter, or any Premier Investor Network newsletter please contact Contact Support. ***************************************************************** Copyright ) 2003 PremierInvestor.net. and The Premier Investor Network. Do not duplicate or redistribute in any form.
PremierInvestor.net Newsletter Thursday 08-12-2004 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: CCBL, CMTL, NATI, NXL, DLTR, OSI, ENDP Closed Plays: RSAS 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 ================================================================= CCBL - tech stock short - CCBL continues to slip lower and today's close under the $7.00 level is a good sign for the bears. We're going to lower our stop to $7.61. Remember, that our initial target is the $6.00 level. --- CMTL - tech stock short - CMTL did manage a bounce today so we're going to lower our stop loss from $18.75 to $18.25. The $18.00 level should hold as overhead resistance. --- NATI - tech stock short - NATI continues to drop and hit an intraday low of $24.70. Our initial target was the $25.00 level. We suggest that readers consider taking some profits off the table here. We're going to keep the play open with a new target of $24.00. Should NATI trade at or below $24.00 we will close the play. We are also lowering our stop to $26.01. --- NXL - non-tech long - Uh-oh! Readers should double check their stops and/or plan to exit immediately. NXL has dropped sharply on Thursday afternoon and closed under the simple 200-dma. Our stop loss is at $24.00 but this looks pretty bearish. --- DLTR - non-tech short - DLTR has fallen another 2.45 percent toward the $23 level. Shares are quickly approaching our target range of $22-20. Readers should prepare to exit. We're going to lower our stop loss to $24.75. --- OSI - non-tech short - OSI fell sharply on Thursday with a 3.5 percent decline and a breakdown under the $39.00-38.50 level. We have been TRIGGERED at $38.99. The close under the $38.00 level is good news for the bears. We're going to lower our stop loss to $40.01. --- ENDP - high risk/reward short - ENDP has rolled over on Thursday with a 3.5 percent drop. We're going to lower our stop loss to $17.51. ================================================================= Closed Plays ================================================================= RSA Security - RSAS - close: 16.03 chg: -1.00 stop: 16.50 The market-wide sell-off on Thursday was very broad based and tech stocks took the brunt of it again. The GSO software index slipped 1.94 percent but that didn't compare to the 5.8 percent drop in RSAS. We don't see any specific news to explain the drop but volume was strong. RSAS has now broken technical support at the simple and exponential 200-dma's and has also broken support on its P&F chart. We have been stopped out at $16.50. Picked on August 01 at $18.61 Gain since picked: - 2.58 Earnings Date 07/22/04 (confirmed) Average Daily Volume: 988 thousand ================== 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 AAUK Anglo Amer. Plc (ADR) 22.13 +0.80 SKM SK Telecom 18.35 +0.65 CMA Comerica 59.10 +0.73 UB Unionbancal 58.41 +1.16 ABV Ambev 21.75 +0.74 PNW Pinnacle West 42.00 +0.56 --------------------------------------- Breakout to Upside (Stocks $5 to $20) --------------------------------------- CACC Credit Acceptance 17.78 +3.71 MICU Vicuron Pharma 12.63 +2.27 PCSA Airgate PCS 15.34 +1.10 --------------------------------------- Breakout to Upside (Stocks over $20) --------------------------------------- WGII Wahsington Group 35.09 +2.88 BMHC Building Materials 23.60 +1.55 ------------------------------------------- Breakout to Downside (Stocks over $20) ------------------------------------------- SAP SAP Ag (ADS) 35.49 -1.59 GDW Golden West Financial 100.82 -4.17 JWN Nordstrom 39.15 -1.70 TIF Tiffany & Co 27.10 -4.70 WTW Weight Watchers 34.48 -1.02 EAT Brinker Intl 29.78 -1.82 IBOC Intl Bancshares 35.05 -1.17 OSG Overseas Shipholding 41.01 -3.16 NMGA Neiman Marcus 50.30 -1.95 ----------------------------------------- Recently Overbought With Bearish Signals (Stocks over $20) ------------------------------------------- CUNO CUNO Inc 52.88 -1.76 ================================================================= To stop receiving this PremierInvestor.net Newsletter, send email to Contact Support ================================================================= DISCLAIMER ================================================================= This newsletter is a publication dedicated to the education of stock traders. The newsletter is an information service only. The information provided herein is not to be construed as an offer to buy or sell securities of any kind. The newsletter picks are not to be considered a recommendation of any stock but an information resource to aid the investor in making an informed decision regarding trading in stocks. It is possible at this or some subsequent date, the editors and staff of PremierInvestor.net may own, buy or sell securities presented. All investors should consult a qualified professional before trading in any security. The information provided has been obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. PremierInvestor.net staff makes every effort to provide timely information to its subscribers but cannot guarantee specific delivery times due to factors beyond our control. Please read our disclaimer at: http://www.optioninvestor.com/page/oin/aboutus/disclaimer.html ***************************************************************** ADVERTISING INFORMATION For more information on advertising in PremierInvestor.net Newsletter, or any Premier Investor Network newsletter please contact Contact Support. ***************************************************************** Copyright 2003 PremierInvestor.net. and The Premier Investor Network. Do not duplicate or redistribute in any form.
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