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Daily Newsletter, Sunday, 08/22/2004

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PremierInvestor.net Newsletter          Weekend Edition 08-22-2004
                                                    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:       Oversupply and Undersupply Stories
Market Sentiment:  End of Summer
Watch List:        Gold to Supercomputers and more!

=================================================================
MARKET WRAP  (view in courier font for table alignment)
=================================================================
         WE 8-20          WE 8-13         WE 8-06         WE 7-30
DOW     10110.14 +284.79  9825.35 + 10.02 9815.33 -324.38 +177.49
Nasdaq   1831.02 + 73.80  1757.22 - 19.67 1776.89 -110.47 + 38.27
S&P-100   536.04 + 15.32   520.72 -  1.11  521.83 - 15.84 +  7.29
S&P-500  1098.35 + 33.55  1064.80 +  0.83 1063.97 - 37.75 + 15.52
W5000   10648.75 +344.09 10304.66 -  3.18 10307.84-393.81 +147.83
SOX       386.00 + 19.35   366.65 - 20.23  386.88 - 29.55 + 10.85
RUT       547.92 + 30.53   517.39 -  2.26  519.65 - 31.64 + 12.07
TRAN     3090.87 +123.95  2966.92 +  0.84 2966.08 -145.61 + 68.25
WE = week ending
=================================================================

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

Oversupply and Undersupply Stories
Linda Piazza

Jim Brown attends a conference this week, and will return next
week.  Writers and subscribers alike look forward to his return.

Oversupply and undersupply stories dominated reports early Friday
morning, with those reports pressuring markets.  Futures eased
during the overnight session.  Cash markets dipped at the open,
too.  They soon found support and waffled around for a number of
hours, looking for next direction before heading higher through
the afternoon until a steep dip off the highs in the last few
minutes.  Internals had been strong all day, with advancers ahead
of decliners on both exchanges throughout the day.  TRIN had
trended down from bearish to neutral in the early period and then
quickly into bullish territory, signaling the up-thrust to come
in the equities before it actually arrived.

Those oversupply and undersupply stories did not start the day on
a bullish theme, however.  They included oversupply issues
related to LCD's.  Isupply Corporation, a California-based
business, reported that global supply of LCD's needed for
computer and television screens surpassed demand in the first
half of the year, and that the excess was likely to widen.  In
European trading, companies such as Royal Philips Electronics had
already headed down before the U.S. open.  As James Brown
reported later in the day on OIN's Market Monitor, CNBC later
reported that the oversupply was likely to bring prices lower on
flat-panel televisions.

Concerns about rising inventories in semiconductor and tech
stocks have pressured semi-related stocks lower through the
summer months until August's bounce.  Figures released by the
Semiconductor Equipment and Materials International after the
close Thursday did not ease those concerns. According to a
Bloomberg article, the semi-book-to-bill report showed the
smallest month-to-month increase in global orders since August,
2003.  Although the book-to-bill ratio remained above the
benchmark 1.00, the July ratio fell to 1.05 from June's revised
1.07. Credit Suisse First Boston reportedly termed the number
worse than expected, with CSFB expecting 1.08 from a revised 1.07
for June.  As Jim Brown has often reminded us, that book-to-bill
ratio reflects a three-month average.  That means that the July
number must have been lower than 1.05 to achieve that lower
three-month-average.  For those who would like to view the
complete report, it can be accessed www.semi.org.

During the morning, the SOX's behavior remained lackluster,
dragging down other indices that appeared to want to bounce from
support, then doing some waffling of its own.  That waffling took
the form of a neutral triangle before the SOX finally pushed
above that triangle and joined other indices that were breaking
out at the same time.

Annotated 15-Minute Chart of the SOX:



Gap Inc. (GPS) might have experienced a bit of an oversupply
problem, too.  Poor attendance at summer clearance sales impacted
the retailer, causing it to be lumped together with JWN and NOVL,
other companies with earnings reports deemed disappointing.  The
RLX, the S&P Retail Index, managed a gain Friday, but that gain
straddled the 200-dma, showing the RLX spending a fourth day
testing that average.

Annotated Daily Chart of the RLX:



The RLX looks ready to roll down into a right shoulder or punch
up through the converging 50- and 200-dma's.

Another oversupply story concerned GM.  According to a WSJ story,
GM may trim production as much as five percent due to dealers
cutting back their orders as they experience rising inventories.
GM opened $0.54 below Thursday's close, but managed to make up
all but $0.21 or 0.51 percent of those losses.

Rising fuel costs number among the reasons for those rising
inventories that car manufacturers and others experience.  Crude
costs and the reasons behind those costs composed the undersupply
story for the day.  In the overnight session, crude futures for
September delivery traded a new record high, variously reported
as $49.20 and $49.27, on supply concerns.  The clash between
radical cleric Muqtada al-Sadr's militia and U.S. and Iraqi
troops escalated overnight, with one headline Friday morning
mentioning 77 killed and 70 wounded in the fighting since
Thursday morning.  The cleric's militia had threatened to attack
Iraq's pipeline and other elements of the oil infrastructure.

By midmorning, reports began surfacing that Iraqi police had
gained control of the Iman Ali Mosque, the shrine where the
cleric had taken refuge.  Witnesses had reported seeing Iraqi
police transporting arms out of the mosque.  Markets began
hesitant climbs off their lows of the day.

Some speculated that the cleric had fled the mosque, and Iraq's
Interior Ministry spokesman appealed to the cleric to turn
himself in, saying that the police were in control of the shrine.
Those reports were soon disputed, however.  A senior aide of the
cleric claimed that the shrine was still in control of the Mehdi
army.  News correspondents associated with the U.S. Marines
reported that the Marines were unable to verify the reports that
Iraqi police had taken control, with witnesses reporting fighting
continuing near the shrine where Mehdi militia have been holed up
in the mosque complex, the adjoining cemetery, and the alleyways
leading to the mosque.  The Iraqi national security adviser
reported an inability to establish communications with the
governor and chief of police of Najaf and verify those earlier
reports.  Later in the afternoon, U.S. time, witnesses began
reporting the Mehdi militia in charge of the shrine and its
approaches, with Iraqi police not seen.  One must wonder whether
the initial reports of a takeover of the shrine and a disarming
of the cleric's militia were not intended to convince Sadr to
turn himself over and call off his militia.

As this report was prepared Friday evening, Iraqi police in Najaf
had reportedly just confirmed that they did not control the site.
Sadr's aide said that talks were underway to transfer control of
the site to another cleric.

As the day wore on, however, markets seemed to care less and less
about what was happening in Najaf.  Perhaps some reasoned that
the conflict was drawing to close, whether that close came on
Friday or another day.  Crude futures dropped throughout the
afternoon, with crude futures for September delivery dropping
from that overnight high all the way to $47.60.  Equity markets
began bouncing as crude futures dropped.

As the conflict dragged through the week, at least some of the
quick inflation in crude futures might have been attributed to
the fast-approaching expiration of crude futures for September
delivery, however, with that expiration occurring Friday.  Shorts
who had expected a resolution any day as the cleric agreed to
ceasefires and then rescinded his agreement almost as quickly
must have been feeling the squeeze as expiration Friday
approached.

Rising crude costs have benefited the OSX, of course, and Lehman
Brothers upgraded the group to a positive rating from its
previous neutral rating.  The firm also upgraded companies CAM,
CLB, TDW, OII, RIG, GSF, NE, and SII. Almost all of those stocks
gapped higher Friday, but although none closed the gap, most
could not hold onto all their gains and printed bearish shooting
stars Friday.

The intraday chart for the SOX shown above indicated that the SOX
also could not hold onto its gains.  Wednesday's Wrap had
suggested that indices might print small-bodied candles at
resistance, perhaps through Friday, and the SOX followed that
scenario.

Annotated Daily Chart for the SOX:



The theory presented Wednesday had been that many indices had
seen strong gains Wednesday, and might need a day or two to
consolidate their gains.  Many indices also displayed the
possibility of forming inverse H&S, with either descending
necklines if the indices turned down from then-current levels or
from horizontal ones if they rose up to next resistance.  The
expectation had been for many indices to print candles like the
ones shown on the SOX daily chart for Thursday and Friday.  That
did happen for the RLX and some other indices as well as the SOX.
However, other indices confounded that theory by showing larger-
range days than expected Thursday and Friday while still
maintaining the possibility of turning down into another
shoulder.

Annotated Daily Chart of the SPX:



The bearish 50/200 cross and the continued trade within the
descending regression channel still suggest that selling rallies
remains the preferred strategy, but the possibility that the SPX
could trade all the way up to the top of that descending
regression channel or even break out of the channel cannot be
ignored.  The weekly chart presents a more bullish view of the
SPX's actions.

Annotated Weekly Chart of the SPX:



Because of the possibility that the SPX's weekly morning-star
pattern could be signaling a reversal up through its descending
regression channel, those who prefer to play the bullish side
could wait for a test of the 200-dma, with a move above it
confirmed by a move above the 100-dma.  Plans should be made to
protect profits in the 1130-1135 zone, however, in case the SPX
turns down again instead of breaking out through resistance line.
In actuality, with the exception of the breakout above 1080, it
has been difficult to find a safe place from which to suggest a
bullish play because of multiple resistance zones ahead as the
SPX moves up through that congestion zone.

The Nasdaq printed its own potential reversal signal on the
weekly chart, although not in as classic form as did the SPX.
The daily chart shows that the Nasdaq stopped short Friday at a
descending trendline that has been in place for more than a
month, also the site of the diving 30-dma.

Annotated Daily Chart of the Nasdaq:



The descending red trendline depicted above could serve as the
neckline for an inverse H&S, but the Nasdaq oscillators indicate
that the Nasdaq could push higher.  Those who prefer to play the
bullish side could watch for a push above that trendline,
confirmed by a move above the 30-dma, but should have profit-
protecting plans in place as the Nasdaq approaches 1890-1900, the
likely site of the descending 50 and 200-ema's by the time that
level could be approached.  If the Nasdaq is to form an inverse
H&S from a horizontal neckline, that would be the appropriate
spot for a rollover into another shoulder.

Like the other indices, however, bearish MA crossovers suggest
that selling rallies could still be the preferred strategy, with
the knowledge that crossovers tend to come late in a movement.
Bullish MA crossovers, confirming strength, could come just as
late in the movement.

Out of all the indices, the Russell 2000 may be the closest to
reaching an appropriate rollover level from a horizontal neckline
or a push through the neckline, rejecting the potential formation
and preparing for a climb up toward the 200-dma.

Annotated Daily Chart of the Russell 2000:



Like the positioning of the oscillators on other indices, their
positioning on the Russell 2000's daily chart presents the
possibility of more upside.  A rollover at the potential
horizontal neckline for an inverse H&S may not occur, and the
Russell 2000 may instead shoot up to test its more closely
watched 200-sma and then perhaps the top of its regression
channel.  A bullish trade in the Russell remains problematic,
however, as there has just been a bearish 100/200-sma cross, it
does still remain within a descending regression channel, and so
many potential pitfalls in the form of various MA's exist in the
path of any bullish play.  Some oscillators signal incipient
bearish divergence as they've already reached higher highs when
compared to the early August period while price has not. The
Russell 2000 can erase that potential divergence, however, by the
simple method of climbing higher than that early August high.

The Dow, too, may be aiming for a horizontal neckline to a
potential inverse H&S, if it intends to form one.

Annotated Daily Chart for the Dow (using DJX as proxy):



The Dow also produced a nice-looking morning-star reversal signal
on its weekly chart.  It had also been showing bullish divergence
on this daily chart.  Note that the last approach to the bottom
of the regression channel stopped before touching that channel,
when the previous approach had not only touched it, but breached
it.  However, a bullish trade in the Dow appears as problematic
as one in the Russell 2000, with a group of important moving
averages converging overhead.  While the Dow can plow through
those averages, it appears more likely that it would need
consolidation or a pullback from that resistance before doing so.
Look for a test of 10,130-10,170 and a rollover from that zone as
an opportunity for a bearish play.  A break above the 200-sma
would be one indication for a bullish play, but profit-protecting
plans should be in place as the top of the descending regression
channel is approached.

If indices begin rollovers sometime next week instead of punching
up through next resistance levels, special note should be taken
of the shoulder levels in the possible inverse H&S formations.
If in bearish plays, profit-protecting plans should be place
ahead of tests of those potential shoulder levels.  OIN readers
are not the only ones capable of noting potential formations, and
those intending to buy could step in ahead of the actual shoulder
level.  Anywhere ahead, actually.  With weekly charts showing
bullish reversal signals and daily charts presenting the
possibility that even a pullback could be part of a bullish
inverse H&S formation, some might be willing to buy well ahead of
such a test of the shoulder level.  Those profit-protecting plans
could include plans that allow for participation in further
downside if the shoulder levels are violated.

Taking over for the SOX lately as an indicator index, the TRAN
may provide our first clue as to whether other indices are likely
to roll over or break out to the upside.

Annotated Daily Chart of the TRAN:



Unlike some other indices, the TRAN has the support of both the
200-sma and -ema below it.

The indices are printing beautiful potential reversal signals on
their weekly charts.  Some have broken above the midlines of
their regression channels.  Daily chart oscillators still
indicate there's plenty of upside to go.  What could precipitate
a rollover now?

Crude could, of course.  If the theory about an expiration-
related run-up in crude coupled with an actual price increase is
wrong, crude could continue higher next week.  An incident in the
final days of the Olympics or a blown-up pipeline in Iraq could
precipitate a rollover, although it's difficult to even give
words to that first possibility.  The terrible historical trading
pattern for the last week in August, mentioned by James Brown in
OIN's Market Monitor on Monday, could reassert itself this year,
resulting in a rollover.

Fear of the GDP could also do it.  That GDP will be released
Friday.

No important economic releases are scheduled for Monday, and the
calendar for the entire week will be lighter than last week's
heavy calendar, although not without its share of weighty
releases.  Tuesday sees July's Existing Home Sales at 10:00 EST.
Expectations are for a decrease to 6.78 million, down from the
prior month's 6.95 million.

Wednesday's numbers include July's Durable Orders at 3:30, with
expectations for that number at a 0.8 percent rise after June's
0.9 percent climb.  Wednesday's releases also include July's New
Homes Sales, with expectations for 1,280 thousand sales, down
from June's 1,326 thousand sales.  Also, Wednesday has become
important because of the 10:30-11:00 releases of the Department
of Energy and API figures for crude, distillate, and gasoline
inventories.  Thursday, natural gas inventories, watched less
closely lately, will be released, but more might be watching for
the earlier, 8:30 release of Initial Claims and the 10:00 release
of July's Help-Wanted Index.  Economists expect the Help-Wanted
Index to show an increase to 39 from June's 38.

Friday draws more attention, however, with the 8:30 release of
the second-quarter preliminary Chain Deflator and GDP, and the
10:30 release of August's Revised Michigan Sentiment.  Earlier
this week, a French minister quantified the effect he expected
rising crude to have on the French GDP, saying that if crude
reached $50/barrel and stayed at that level, he expected the GDP
gain to decrease by one percent.  During much of the second
quarter, crude futures were retracing gains and hadn't approached
$40.00, so that preliminary GDP might not yet show the effect of
increasing crude costs.  Crude futures for September delivery
increased from the March 31 close at $33.65 to the June 30 close
at $37.14.

However, Japan's shocking Q2 GDP number certainly could make
markets jittery, concerned that the U.S. could be in for a
similar downside surprise.  That's especially true since June's
trade balance, released last week, showed that the gap had
widened to a record $55.8 billion, with prices paid for crude oil
and other industrial supplies showing up as one of the factors in
that increasing deficit.  Perhaps those crude costs earlier this
summer, although minimal by comparison to today's costs, were
still high enough to impact the GDP figure, too, some might
wonder.

That widening trade balance last week also revealed that exports
had decreased.  Upon the release of that number, some began
speculating that growth estimates for the U.S. economy might
require revision.  The too-low estimate for June's trade gap had
probably been folded into the calculations for economic growth,
some commented.

Forecasts for the preliminary GDP are for 2.8 percent, a small
decrease from the previous 3.0 percent.  Estimates for the
preliminary Chain Deflator are for a flat 3.2 percent, and no
change in expected in the revised Michigan Sentiment number,
either, according to one source.

Monday begins a week that's been bearish for six out of the last
seven years, with drops in the major indices averaging more than
3.5 percent.  We begin that week with weekly charts showing
beautifully completed morning-star reversal signals.  Switching
back and forth from weekly, daily, and intraday charts show
differing pictures for the indices, so that one could form wildly
differing market outlooks.  Weekly says up.  Daily bar charts say
up, but maybe with pullback first.  Daily nested Keltner charts
suggest that the two S&P's, at least, are nearly jammed up
against next strong resistance.  Facing Friday's possible GDP
downside surprise and uncertainty over what will happen with
crude costs, trade carefully during this traditionally bearish
week, prepared for a rollover into shoulders for potential
inverse H&S formations or for moves up through to the tops of the
descending regression channels on daily charts.  Be prepared to
jump out of the way if your bias is proved wrong and indices head
the other direction.


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

End of Summer
- J. Brown

It has been an interesting summer thus far.  June was strong.
July was terrible and August has just been plain volatile.  If we
use Memorial Day as the unofficial start of summer then we
haven't moved very far.  The Dow Industrials are only down 78
points from May 28th.  The NASDAQ looks a lot worse because July
was so painful.  The NASDAQ Composite is down 148 points from
Memorial Day.  Meanwhile the S&P 500, which better represents the
market as a whole, is down about 22 points for the summer.
That's really not too bad considering the carnage from July 1st
through the first week of August.

During the same time period crude oil has risen 21.6% from May
28th through Friday's close (using the recently expired September
contract).  Crude is up almost 34% from its June lows, where
stocks peaked.  Oil continues to be the main story affecting the
markets and it almost hit $50 a barrel on Friday morning as
fighting raged in Najaf and investors responded to stories late
Thursday of Iraqi oil company buildings being burnt down by
militants.  Fortunately, oil began to subside as the weekend
approached and stocks pushed higher into the close.

The question now is what are investors feeling?  The recent rally
has produced some positive bullish reversals in a number of
stocks and indices.  Is it a new bullish entry point?  Or will it
become a new lower high in the market's seven-week downtrend.
The bounce from 10,000 in the Industrials on Friday is
encouraging but the S&P 500's inability to breakout and close
over the 1100 level is equally discouraging.  If you look at the
volatility indices they have all fallen sharply from their recent
highs indicating that investors are feeling more confident
(a.k.a. bullish) on stocks.  Friday's market internals were
certainly positive.  Advancers outpaced decliners by 21 to 6 on
the NYSE and almost 22 to 8 on the NASDAQ.  Up volume outweighed
down volume on both exchanges but overall volume was pretty
light.

Odds are volume will continue to be light until after Labor day.
On Thursday I noted that most of the professionals were echoing
comments made by Jim a couple of weeks ago that there really
isn't any reason for stocks to rally before Labor Day.  Yes, we
could see an oversold bounce but any meaningful uptrend is likely
to remain absent.  We still have another week of Olympics but the
real threat is the upcoming Republican National Convention in New
York City that begins a week from Monday.  The temptation for
terrorists to strike at both the President's political party and
the financial capital of the world New York City has to be a big
one.  Whether anything happens or not the threat of an event
could easily keep a lid on stocks.  Volume in the markets is
expected to dry up and shrivel away during the week of the RNC.

Yet that's still a week away.  This coming week doesn't offer us
any reprieve either.  Stocks are starting to look bullish with
the bounce from August 16th but the Stock Trader's Almanac has
bad news for us.  As reported earlier the Almanac states that the
last five days of August have been extremely painful 6 out of the
last 7 years.  The average loss in the Dow is -4.0%, on the S&P
500 it's -3.8% and on the NASDAQ it's -3.5%.  If the markets
follow this historical trend then the end of August could witness
the Industrials near 9700, the S&P 500 near 1056 and the NASDAQ
near 1775.  Of course if you're feeling optimistic you could
round the numbers up a bit and just look for the major indices to
retest their August lows.  Then if you're feeling really
optimistic imagine the whole scenario as an opportunity for a big
double-bottom to lead us into the fall.

Unfortunately, this is all just conjecture and what-if's.  The
facts are that we still have to face the month of September,
which has historically been the WORST month of the year for all
three indices.  Now we could see stocks buck this trend if crude
oil suddenly reverses on us but that's a big if right now.
Investors need to shed their personal bias on the markets and
consider the following.  Not only are we facing some painful
historical trends but record high oil prices, rising terror
fears, concerns over a slowing economy and major uncertainty over
the upcoming Presidential election do not nurture a bullish
environment for stock prices.

Bulls say the markets usually need a wall of worry to climb.
Well they've got one and it's looking pretty steep.


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

Market Averages

DJIA ($INDU)

52-week High: 10753
52-week Low :  9230
Current     : 10110

Moving Averages:
(Simple)

 10-dma:  9999
 50-dma: 10144
200-dma: 10229



S&P 500 ($SPX)

52-week High: 1163
52-week Low :  983
Current     : 1098

Moving Averages:
(Simple)

 10-dma: 1079
 50-dma: 1099
200-dma: 1109



Nasdaq-100 ($NDX)

52-week High: 1559
52-week Low : 1256
Current     : 1366

Moving Averages:
(Simple)

 10-dma: 1334
 50-dma: 1392
200-dma: 1442



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

CBOE Market Volatility Index (VIX) = 16.00 –0.96
CBOE Mkt Volatility old VIX  (VXO) = 16.30 –0.97
Nasdaq Volatility Index (VXN)      = 23.06 –0.85


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

          Put/Call Ratio  Call Volume   Put Volume

Total          0.95      1,049,280     1,001,436
Equity Only    0.72        784,646       566,482
OEX            1.07         82,678        88,318
QQQ            1.20         90,233       107,960


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

Bullish Percent Data

           Current   Change   Status
NYSE          54.0    + 1     Bear Confirmed
NASDAQ-100    29.0    + 2     Bear Confirmed
Dow Indust.   46.7    + 0     Bear Confirmed
S&P 500       49.0    + 1     Bear Confirmed
S&P 100       46.0    + 1     Bear Confirmed


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

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


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

 5-dma: 0.66
10-dma: 1.00
21-dma: 1.27
55-dma: 1.24


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    2147      2189
Decliners     650       824

New Highs      87        35
New Lows       13        26

Up Volume   1183M      967M
Down Vol.    866M      347M

Total Vol.  1439M     1330M
M = millions


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

Commitments Of Traders Report: 08/17/04

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

There has been very little change in the commercial traders'
positions.  They remain slightly net short while small traders
are net long (bullish).

Commercials   Long      Short      Net     % Of OI
07/27/04      397,354   422,914   (25,560)   (3.1%)
08/03/04      401,619   419,429   (17,810)   (2.2%)
08/10/04      397,576   419,734   (22,158)   (2.7%)
08/17/04      398,472   416,109   (17,637)   (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
07/27/04      135,136    90,433    44,703    19.8%
08/03/04      128,510    88,833    39,677    18.3%
08/10/04      135,689    93,897    41,792    18.2%
08/17/04      138,550    97,792    40,758    17.2%

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

In the e-mini contracts we see commercial traders upping
both their long and short positions but they remain net
bearish.  Small traders have done the same by increasing
positions overall and they have increased their bullish
sentiment.

Commercials   Long      Short      Net     % Of OI
07/27/04      337,615   429,477   ( 91,862)  (12.0%)
08/03/04      340,053   428,736   ( 88,683)  (11.5%)
08/10/04      369,547   441,055   ( 71,508)  ( 8.8%)
08/17/04      404,065   457,372   ( 53,307)  ( 6.2%)

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
07/27/04      186,211     68,930   117,281    46.0%
08/03/04      195,105     68,717   126,388    47.9%
08/10/04      179,940     89,239    90,701    33.7%
08/17/04      192,939     92,361   100,578    35.3%

Most bearish reading of the year: (77,385)  - 09/02/03
Most bullish reading of the year: 449,310   - 06/10/03


NASDAQ-100

Commercial traders have increased both their longs and
shorts in the NDX but shorts made a stronger comeback.
Commercial traders remain net bullish but the strength of
their sentiment is decreasing at least as of Aug. 17th.
Small traders have turned sharply bullish with a big switch
in positions.

Commercials   Long      Short      Net     % of OI
07/27/04       43,042     35,935     7,107    9.0%
08/03/04       42,771     36,863     5,908    7.4%
08/10/04       43,968     38,351     5,617    6.8%
08/17/04       44,743     41,535     3,208    3.7%

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
07/27/04       14,543    14,518        25     0.0%
08/03/04        8,995    13,901    (4,906)  (21.4%)
08/10/04       10,081    10,858    (  777)  ( 3.7%)
08/17/04       12,256     8,352     3,904    18.9%

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

Commercial traders are at a virtual standstill during the
latest period and remain net bullish on the Industrials.
Naturally small traders are making the opposite bet and have
turned more bearish.

Commercials   Long      Short      Net     % of OI
07/27/04       27,577    21,427    6,150      12.5%
08/03/04       30,118    25,029    5,089       9.2%
08/10/04       30,634    22,994    7,640      14.2%
08/17/04       30,271    22,809    7,462      14.1%

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
07/27/04        5,310     6,099   (  789)   ( 6.9%)
08/03/04        4,325     5,212   (  887)   ( 9.3%)
08/10/04        6,450     8,488   (2,038)   (13.6%)
08/17/04        4,388     7,089   (2,701)   (23.5%)

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

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

==================================================================
WATCH LIST
==================================================================

The PremierInvestor.net watch list is not designed to be read
as full fledged stock picks.  Rather we would prefer to offer
it as an extra tool in today's investor toolbox.  Think of it
as a radar screen with your own radar operator pointing out
interesting developments, technical patterns or potential plays
that you may or may not have seen on your own.  Due to time
constraints we do glance at the news but rarely do we have
time to fully read pertinent news stories, due background
research and other necessary screens that investors should do
before making a decision.  A common exercise is to read the
entry, glance at the sector and other stocks in that industry
and then compare what's happening in the stock to what's
happening in the broader market indices.  We hope you enjoy
the Watch List and that it proves to be a useful tool for your
own trading success.

STOCKS WORTH WATCHING
---------------------------------

Gold to Supercomputers and more!

Anglogold - AU - close: 36.55 change: +0.85

WHAT TO WATCH: It's been a lustrous week for gold and gold
stocks.  The XAU gold & silver index has rallied past major
resistance just as gold surges to new four-month highs above
resistance at $412 an ounce.  Shares of AU have followed the
rally and broken out over the $35.00 level and its exponential
200-dma near $35.75.  This looks like an aggressive entry point
but traders might want to look for a dip before considering
plays.  The next hurdle for AU is the simple 200-dma near $38.65.




---

Silicon Storage - SSTI - close: 6.21 change: +0.29

WHAT TO WATCH: The SOX semiconductor index was one of the worst
technology performers on Friday but that didn't stop SSTI from
adding almost 5%.  The climb back over the $6.00 mark is
impressive and shares are challenging the top edge of its
descending channel dating back to April.  Aggressive traders
might want to consider a breakout over the channel near $6.50 as
a potential entry point.  Watch out for possible resistance at
$7.55 and $8.00.




---

Cray Inc - CRAY - close: 3.89 change: +0.36

WHAT TO WATCH: The name CRAY brings of images of massive
supercomputers.  CRAY is still in the business but its share
price hasn't been too super.  The stock crashed from $5.00 to
$3.50 back in July after missing earnings.  Now the sideways
consolidation is over and CRAY is broken into the gap.  We think
CRAY might be able to fill the gap but it needs to breakout over
the $4.00 mark first.  This would be a very high risk,
speculatively play but readers could use a trigger over $4.00 and
target $5.00.




---

Hutchinson Tech. - HTCH - close: 24.55 change: +0.44

WHAT TO WATCH: Disk drive maker HTCH is on the move.  Shares have
rallied sharply this past week to breakout through its five-month
old descending trendline of resistance and its 40 and 50-dma's.
This could be the start of a new change in direction for HTCH but
we'd want to see the stock climb past the $25.00 level.  Watch
out for potential resistance at its simple 200-dma near $28.00.






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

MLI $38.99 +0.84 - The recent breakout and bounce from $38.00 has
pushed MLI to new five-year highs.  It looks like a great entry
point but volume is very low on this stock and shares have some
resistance near $40 dating back to 1998.

ROK $38.30 +0.42 - Defense contractor ROK is breaking out to new
three-year highs over $38.00-38.25.

NPSP $21.75 +1.23 - The rally continues for NPSP. If you bought
the dip to $20.00 kudos to you!  Be sure you manage your risk
carefully.  The next challenge is the 100-dma near $21.91.

MAS $32.26 +0.44 - MAS continues to climb and has broken out to
new multi-year highs but is nearing resistance at $33 dating back
to the late 90s.


=================================================================
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) 2001-2004  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.





PremierInvestor.net Newsletter          Weekend Edition 08-22-2004
                                                    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
  Bullish Play Updates: TKLC
  Bearish Play Updates: SWIR

Active Trader (Non-tech)
  New Bullish Plays:     ELY, SBUX
  Bullish Play Updates: NYB
  Bearish Play Updates: OSI

High Risk/Reward
  Bullish Play Updates: MACR
  Bearish Play Updates: CTMI

Stock Splits
  Announcements:         CATY


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

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

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

Tekelec - TKLC - close: 18.29 change: +0.20 stop: 16.99

The bounce from support continues for TKLC.  The stock actually
managed a 1.1 percent rally on Friday on top of announcing a $56
million acquisition.  TKLC said it would spend cash and stock to
buy privately held Steleus Group Inc in an effort to enhance its
"capacities and expand its global presence" according to the
Reuters article.  The transaction is expected to hit Q4 earnings
by 1-to-2 cents while adding 1-to-2 cents in FY05.  Traders have
a couple of choices for new entry points.  Momentum traders can
look for a new relative high over $18.50 as an entry or readers
can look for a dip and bounce from the $17.50-17.75 range.  Our
target remains at $20.00 while the P&F target is $23.00.

One note of caution - if TKLC doesn't keep this rally alive we're
going to suspect that the stock is building a bearish H&S pattern
more easily seen on its weekly chart.

Annotated Chart:



Picked on August 18 at $18.40
Gain since picked:     - 0.11
Earnings Date        07/22/04 (confirmed)
Average Daily Volume:     722 thousand




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

Sierra Wireless - SWIR - close: 23.88 chg: +0.44 stop: 26.49

SWIR was a notable under-performer during the first part of the
week.  Reluctantly the stock began to rebound on Thursday and
Friday. Now SWIR is testing minor resistance at its simple 10-
dma.  The stock is so oversold that even this minor bounce is
producing bullish signals in its stochastics.  We suspect that
any bounce here will only prove to be a new entry point for
bearish positions.  We'll suggest any failed rally under the
$25.00 mark as a new entry point.  Our target at the May lows
near $21.25 remains.  The P&F chart remains very bearish with a
$13 target.  No change in our stop loss at $26.49.

Annotated Chart:



Picked on August 11 at $25.10
Gain since picked:     - 1.22
Earnings Date        07/21/04 (confirmed)
Average Daily Volume:     1.5 million




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

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

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

Callaway Golf - ELY - close: 11.83 change: +0.26 stop: 11.25

Company Description:
Callaway Golf Company makes and sells Big Bertha. Metal Woods and
Irons, including ERC. Fusion. Drivers and Fairway Woods, Great
Big Bertha. II Titanium Drivers and Fairway Woods, Great Big
Bertha II 415 Titanium Drivers, Big Bertha Titanium Drivers and
Big Bertha Stainless Steel Fairway Woods, Hawk Eye. VFT. Tungsten
Injected(TM) Titanium Irons, Big Bertha Stainless Steel Irons,
Steelhead. X-16. and Steelhead X-16 Pro Series Stainless Steel
Irons, the Game Enjoyment System(TM) of GES(TM) Golf Clubs,
Callaway Golf Forged+ Wedges and Callaway Golf Forged Wedges, and
Callaway Golf Tour Blue(TM) Putters. Callaway Golf Company also
makes and sells Odyssey. Putters, including White Hot., TriHot.,
DFX., Dual Force. and 2-Ball Putters. Callaway Golf Company makes
and sells the Callaway Golf. HX. Tour Balls, HX Blue and HX Red
Balls, Big Bertha(TM) Blue and Big Bertha Red Balls, and the
Warbird. Balls. Callaway Golf also owns and operates The Top-
Flite Golf Company, a wholly owned subsidiary that includes the
Top-Flite. and Ben Hogan. brands and Bettinardi Putters. The
Trade In! Trade Up!(TM) program is owned and operated by Callaway
Golf Company. (source: company press release)

Why We Like It:
The fundamentals stink but ELY may turn out to be a bullish
candidate after all.  Back in June the company issued an earnings
warning and said that Q2 sales would fall significantly under
analysts' expectations.  Management also said they would not hit
their full year numbers.  The stock crashed from $15 to $12.
Since then ELY has been consolidating mostly sideways under
$12.00.  However, the last four weeks have certainly had a
bullish tint to them.  The stock is back over its 40 and 50-dma's
and is nearing bottom of the gap resistance near $12.00-$12.25.


Whether it makes sense or not stocks do have a habit of "filling
the gap".  ELY has a sizeable gap down and if it breaks upward we
could see it climb back toward $14 or even $15.  Point-and-figure
chart traders will quickly point out that ELY's P&F chart is
extremely bearish.  We don't disagree but ELY could produce a
huge bounce and still remain bearish.  Now we feel it's important
to use a TRIGGER over resistance because with ELY just under the
$12.00 mark it's a tempting place to short it.  We'll use a
TRIGGER at $12.30 so ELY will have to climb over the bottom of
the gap at $12.25.  Once started we'll use a stop loss at $11.25.

Annotated Chart:



Picked on August xx at $xx.xx <-- see TRIGGER
Gain since picked:     + 0.00
Earnings Date        07/22/04 (confirmed)
Average Daily Volume:     1.0 million



--

Starbucks - SBUX - close: 45.05 change: +0.39 stop: 42.75

Company Description:
Starbucks Coffee Company is the leading retailer, roaster and
brand of specialty coffee in the world, with more than 8,000
retail locations in North America, Latin America, Europe, the
Middle East and the Pacific Rim. The Company is committed to
offering the highest quality coffee and the Starbucks Experience
while conducting its business in ways that help foster social,
environmental and economic benefits for communities in which it
does business.  (source: company press release)

Why We Like It:
We've been bullish on SBUX for months.  It's been a great
momentum play but we missed the entry point back in May when it
broke out over the $40.00 level.  Now we feel the recent pull
back and bounce from $42.50 above its simple 100-dma is a gift
for bullish investors.  Technicals are starting to suggest the
same thing with its MACD very close to a new buy signal.

We want to get long and target a run toward $50.00 but SBUX still
has some resistance at its 40 and 21-dma's just overhead.  We'll
wait for some confirmation with the breakout and use a TRIGGER at
$45.51 to open the play.  Until SBUX trades at this level we'll
sit out.  However, once open we'll use a stop loss at $42.75.

Annotated Chart:



Picked on August xx at $xx.xx <-- see TRIGGER
Gain since picked:     + 0.00
Earnings Date        07/21/04 (confirmed)
Average Daily Volume:     3.2 million




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

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

New York Cmmty Bank - NYB - close: 20.34 change: +0.13 stop: 19.49

After spending several days on the watch list we decided to
promote NYB to the play list after it broke out above resistance
at the $20.00 mark.  The stock's slow and steady ascent from its
July lows is encouraging and we believe NYB can trade to the
$22.00 region.  Traders can also find encouragement in the BKX
banking index's bullish breakout above its simple 200-dma on
Friday. Traders bought the dip on Thursday when NYB tested the
$20.00 level as support.  We will admit this is somewhat
aggressive since the P&F chart is still bearish.  A move over
$21.00 will produce a new "buy" signal.

Annotated Chart:



Picked on August 18 at $20.39
Gain since picked:     - 0.05
Earnings Date        07/21/04 (confirmed)
Average Daily Volume:     3.2 million




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

Outback Steakhouse - OSI - close: 39.14 chg: +0.89 stop: 40.01

To be honest we didn't know that OSI had so many stores in
Florida.  The company has more than 12 percent of its outlets in
Florida and all of them, including some in the Carolina's, were
shut down due to mandatory evacuations.  The company said they
lost about 130 operating days and upwards of $2 million in
revenues due to the store closings.  What's really surprising,
considering this news, is the rebound in the stock price.  Yes,
it is true that stocks tend to move with the markets and the
markets were bouncing this past week but we didn't expect OSI to
rebound back above the $39 level. This is a significant warning
sign for us but we're going to leave the play open with the stop
loss at $40.01.  Readers considering new positions can look for a
failed rally under $39.50 or a new drop under $38.00.  Until then
we would not suggest new positions.

Annotated Chart:



Picked on August 09th at $38.99
Gain since picked:       + 0.15
Earnings Date          07/22/04 (confirmed)
Average Daily Volume:       629 thousand




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

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

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

Macromedia - MACR - close: 19.53 change: +0.23 stop: 18.00

Our speculative buy the bottom play is holding in there.  MACR
seems to be struggling a little bit with its simple 21-dma but
we're encouraged by the rebound on Friday morning.  There
appeared to be some buyers supporting MACR near $19.45-19.47
throughout much of Friday's session.  More conservative traders
interested in this play might want to wait for MACR to breakout
over round-number resistance at $20.00 before initiating
positions.

Annotated Chart:



Picked on August 18th  $19.78
Gain since picked:     - 0.25
Earnings Date        07/28/04 (confirmed)
Average Daily Volume:     1.0 million




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

CTI Molecular Imaging - CTMI - cls: 9.91 chg: +0.21 stop: 11.01

CTMI has managed a weak oversold bounce and is consolidating its
losses under resistance at the round-number, psychological $10.00
mark.  As long as it remains under $10.00 bears should be okay.
Any bounce over $10 and we'll become concerned and consider
exiting the play.  At this point we would not consider new
bearish positions until CTMI traded back under the $9.50 level.

Annotated Chart:



Picked on August 15 at $ 9.67
Gain since picked:     + 0.24
Earnings Date        08/05/04 (confirmed)
Average Daily Volume:     322 thousand




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

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

CATY announces a 2:1 split

This morning before the opening bell Cathay General Bancorp
(NASDAQ:CATY) announced that its Board of Directors had approved a
2-for-1 stock split of its common shares.

The split will take the form of a 100% stock dividend to be paid
on September 28th, 2004 to shareholders on record as of September
13th.


About the company:
Cathay General Bancorp is the one-bank holding company for Cathay
Bank, a California state-chartered bank. Founded in 1962, Cathay
Bank offers a wide range of financial services. Cathay Bank
currently operates 32 branches in California, three branches in
New York State, two branches in Massachusetts, one in Houston,
Texas, one in Washington State, and representative offices in Hong
Kong and Shanghai, China. In addition, the Bank's subsidiaries,
Cathay Investment Company and GBC Investment & Consulting Company,
Inc., both maintain an office in Taipei.
(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

*****************************************************************
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Newsletter, or any Premier Investor Network newsletter please
contact Contact Support.

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

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The Premier Investor Network.
Do not duplicate or redistribute in any form.






PremierInvestor.net Newsletter          Weekend Edition 08-22-2004
                                                    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 August 23rd, 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 August 23rd
==========================================

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

Symbol  Co               Date           Comment      EPS Est

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

TOY    Toys R Us           Mon, Aug 23  Before the Bell     -0.04


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

BMO    Bank Of Montreal    Tue, Aug 24  During the Market     N/A
HRB    H&R Block, Inc.     Tue, Aug 24  After the Bell      -0.05
HNZ    H.J. Heinz Company  Tue, Aug 24  Before the Bell      0.55
HUG    Hughes Supply       Tue, Aug 24  After the Bell       1.16
MRX    Medicis             Tue, Aug 24  After the Bell       0.36
RGS    Regis Corporation   Tue, Aug 24  Before the Bell      0.59
STOSY  Santos Ltd.         Tue, Aug 24  -----N/A-----         N/A
SMTC   Semtech             Tue, Aug 24  After the Bell       0.21
TKA    Telekom Austria AG  Tue, Aug 24  Before the Bell       N/A
TTC    Toro                Tue, Aug 24  Before the Bell      1.28


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

ADCT   ADC                 Wed, Aug 25  After the Bell      0.01
BTH    Blyth Inc.          Wed, Aug 25  -----N/A-----       0.23
BCM    Can Imp Bank CmmerceWed, Aug 25  -----N/A-----        N/A
DLTR   Dollar Tree Stores  Wed, Aug 25  After the Bell      0.26
SJM    J. M. Smucker Co    Wed, Aug 25  Before the Bell     0.56
MIK    Michaels Stores     Wed, Aug 25  -----N/A-----       0.40
NDSN   Nordson             Wed, Aug 25  -----N/A-----       0.47
REXMY  REXAM PLC           Wed, Aug 25  -----N/A-----        N/A
TOL    Sulzer              Wed, Aug 25  -----N/A-----        N/A
WSM    Wi-Lan Inc          Wed, Aug 25  After the Bell     -0.05


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

BFb    Brown-Forman Corp   Thu, Aug 26  Before the Bell     0.38
CHS    Chico's FAS         Thu, Aug 26  After the Bell      0.38
DG     Dollar General Corp.Thu, Aug 26  Before the Bell     0.20
OTE    Hellenic Telecomm   Thu, Aug 26  Before the Bell      N/A
JOYG   Joy Global Inc.     Thu, Aug 26  Before the Bell     0.32
KWD    Kellwood Company    Thu, Aug 26  After the Bell      0.35
AHO    Koninklijke Ahold NVThu, Aug 26  -----N/A-----        N/A
PDCO   Patterson Dental    Thu, Aug 26  -----N/A-----       0.59
SCO    Scor                Thu, Aug 26  Before the Bell      N/A
SFD    Smithfield Foods    Thu, Aug 26  Before the Bell     0.47
TECD   Tech Data Corp      Thu, Aug 26  After the Bell      0.49
TKS    Tomkins PLC         Thu, Aug 26  -----N/A-----        N/A
TD     Toronto Dominion BnkThu, Aug 26  -----N/A-----        N/A
VIP    Vimpel Comm         Thu, Aug 26  -----N/A-----        N/A


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

PNY    Piedmont Natural GasFri, Aug 27  -----N/A-----       -0.40
RY     Royal Bank Of CanadaFri, Aug 27  -----N/A-----         N/A


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

Symbol  Co Name              Ratio    Payable     Executable

HTLD    Heartland Express         3:2      Aug  20th   Aug  23rd
TOX     MEDTOX Scientific, Inc    3:2      Aug  20th   Aug  23rd
IVX     IVAX Corporation          5:4      Aug  24th   Aug  25th
ZBRA    Zebra Tech Corp           3:2      Aug  25th   Aug  26th
WOOF    VCA Antech, Inc           2:1      Aug  25th   Aug  26th
PGTV    Pegasus Comm Corp         2:1      Aug  26th   Aug  27th
BAC     Bank of America           2:1      Aug  27th   Aug  28th
CFC     Countrywide Financial Corp2:1      Aug  30th   Aug  31st
VNBC    Vineyard National Bancorp 2:1      Aug  30th   Aug  31st
HOC     Holly Corp                2:1      Aug  30th   Aug  31st
TRBS    Texas Regional Bancshares 3:2      Aug  30th   Aug  31st
ENSI    EnergySouth, Inc          3:2      Sep   1st   Sep   2nd
CHD     Church & Dwight Co. Inc   3:2      Sep   1st   Sep   2nd
TCB     TCF Financial Corp        2:1      Sep   3rd   Sep   6th


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

The Olympics will move into its second week but Wall Street will
look with wary eyes on the upcoming Republican National Convention
that starts a week from Monday.  This week we'll see new and used
home sales, the preliminary GDP numbers and revised sentiment figure.

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

----------------
Monday, 08/23/04
----------------
None


-----------------
Tuesday, 08/24/04
-----------------
Existing Home Sales (DM)   Jul  Forecast:   6.80M  Previous:    6.95M


-------------------
Wednesday, 08/25/04
-------------------
Durable Orders (BB)        Jul  Forecast:    1.0%  Previous:     0.9%
New Home Sales (DM)        Jul  Forecast:   1292K  Previous:    1326K
Federal Reserve Governor Guynn speaks on U.S. Economy

------------------
Thursday, 08/26/04
------------------
Initial Claims (BB)      08/21  Forecast:     N/A  Previous:     331K
Help-Wanted Index (DM)     Jul  Forecast:      38  Previous:       38


----------------
Friday, 08/27/04
----------------
GDP-Prel. (BB)              Q2  Forecast:    2.8%  Previous:     3.0%
Chain Deflator-Prel. (BB)   Q2  Forecast:    3.2%  Previous:     3.2%
Mich Sentiment-Rev. (DM)   Aug  Forecast:    94.0  Previous:     94.0



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 (ADS)    48.78    +0.42
COP     Conocophillips             74.16    +0.20
CNQ     Canadian Natural Res Ltd   33.21    -0.68
CEO     Cnooc Ltd (ADR)            48.19    +1.24
BBY     Best Buy Co Inc            48.73    +0.25


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

MYL     Mylan Laboratories Inc     16.89    -0.31
HOTT    Hot Topic Inc              16.24    +0.34
PDQ     Prime Hospitality Corp     11.97    +0.01


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

NEM     Newmont Mining Corp        44.38    +0.35
SYMC    Symantec Corp              48.04    +0.28
INRU    Intuit Inc                 41.09    +0.62
BJS     BJ Services Co             46.93    +0.85
HAR     Harman Internat Ind Inc    93.89    +4.19


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

CVX     Chevrontexaco Corp         74.18    +1.08
ASD     American Standard Cos      37.41    +0.24
PNW     Pinnacle West Capital Cp   41.39    -0.05
HRL     Hormel Foods Corp          26.00    -0.49
AMSG    Amsung Corp Common         20.78    +0.21


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

CMBC    Community Bancorp Inc      25.00    -0.08


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