PremierInvestor.net Newsletter Tuesday 08-24-2004 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: Sitting here in No-man's Land. Watch List: Apples to Chips Market Sentiment: No Bounce from Oil Drop ================================================================= MARKET WRAP (view in courier font for table alignment) ================================================================= 08-24-2004 High Low Volume Adv/Dcl DJIA 10098.63 + 25.58 10146.79 10062.13 1.34 bln 1612/1226 NASDAQ 1836.89 - 1.81 1850.29 1828.51 1.28 bln 1637/1364 S&P 100 534.98 + 0.09 537.46 533.43 Totals 3249/2590 S&P 500 1096.19 + 0.51 1100.94 1092.82 SOX 380.27 - 9.82 391.92 378.12 RUS 2000 545.01 + 1.54 548.58 542.56 DJ TRANS 3102.17 + 34.08 3103.72 3070.05 VIX 15.33 - 0.55 15.81 15.33 VXO (VIX-O)15.21 - 0.65 15.87 14.91 VXN 21.97 - 0.57 22.73 21.97 Total Volume 2,620M Total UpVol 1,141M Total DnVol 1,362M Total Adv 3249 Total Dcl 2590 52wk Highs 116 52wk Lows 59 TRIN 1.47 PUT/CALL 0.79 ================================================================= =========== Market Wrap =========== Sitting here in No-man's Land. The Dow gained 25.58 points to settle at 10098.63. The Nasdaq slid 1.81 to end the day at 1836.89 and the S&P ended pretty well flat at 1096.19. The biggest sector percentage loser today was the AMEX Gold Bug Index (HUI) with a loss of -5.50 or 2.68%. I'm sure this will be addressed more fully in the Futures Wrap tonight. The next on the list of the top five sector losers was the Semiconductor Index (SOX) with a loss of -9.82 points or 2.51%. Rounding out the list of the top five sectors losers were the Networking Index at -2.45 points or -1.14%, the Oil Index (OIX) at -2.88 points or -0.81% and the software index (GSO) at -0.50 or -0.37% loss. Your top five gainers were lead by the Airline index (XAL) with a jump of +1.14 or +2.43%, Transportation Index (TRAN) with a rise of +34.08 or +1.11%, both reflecting the drop in Crude Oil. Third on the list is the Banking Index (BIX) with a rise of +1.52 or 0.42%, fourth is the insurance index (IUX) with a rise of 0.75 or 0.24% and finishing off the list was the Morgan Stanley Healthcare Index (HMO) with a increase of +1.82 or 0.19%. Today's news Iraq resumed exporting oil today and the October Crude Oil contract traded under $45 a barrel. After posting all time highs for most of August, oil prices have fallen more than $3.50 in the past three trading sessions. The September crude contract, which set the all-time high of $49.40, expired on Friday. Earlier this month Toys "R" Us Inc. (TOY) said it might abandon its toy business, but is now cautioning that this speculation may have been premature. John Eyler, chief executive of TOY recently said "while this remains a possibility, our focus ... remains on running our company and taking advantage of our place in the market as the world's largest specialty toy retailer." He also said the company's toy business remains lucrative generating about $6.5 billion in sales last year and with an operating income in excess of $100 million. TOY ended the day +0.17 at 16.21. A report from Semiconductor International Capacity Statistics states that the demand for the chips used in cellphones and digital products has boosted the world's chipmakers operating capacity to 95.4% utilization rate. This is the highest utilization percentage in nearly four years and crosses the threshold at which manufacturers start building new factories. The factory utilization rate was the sixth straight quarter of increasing output and the highest since 96.4 percent in the third quarter of 2000. When utilization rates are above 90 percent, chip makers typically begin building new factories. Economic reports July sales of existing homes declined from the previous month showing we have hit a soft spot in the housing market even though mortgage rates remain relatively low. The National Association of Realtors' Existing-homes Sales failed to meet Wall Street expectations when it fell 2.9% to a seasonally adjusted annual rate of 6.72 million units last month. This is down from a downwardly revised 6.92 million unit pace in June. NAR Chief Economist David Lereah said July's numbers were the first drop since January and the third best annualized rate of home resales ever and thinks this is a healthy pullback in the housing market and is due to rising interest rates. Although mortgage rates rose sharply in last two months, they have settled well below 6.0% in recent weeks to an average of 5.81% last week. The average interest rate for a 30-year fixed- rate mortgage hovered around 6.0% for most of July, compared to an average of 6.29% in June and 6.27% in May. Earnings Despite an increase in sales from the year-earlier fiscal first quarter, H.J. Heinz Co.'s (HNZ) profit slid 9%. The maker of processed foods such as ketchup and baked beans said it earned $194.8 million, or 55 cents a share, for the first quarter ended July 28, down from $214 million, or 60 cents a share, for the year-earlier quarter. HNZ ended the day +1.03 at 37.63. On to the charts In my August 19th Market Wrap, I drew a bunch of red boxes where I thought we would see resistance. I would now like to revisit those resistance zones and see how well they are holding up. Annotated Daily Chart of the NYA : NYA is the strongest market of all the major markets so resistance holding here would not bode well for the stock market in general. So far there is no evidence that the resistance will break and NYA is in the process of making an ominous double top. But we are way too premature here because we also have little evidence this resistance will not break. I think more than a 50% retracement of the move from August 12th lows to august 23rd highs would tell us the resistance has held and we are destined for lower lows. A 50% retracement is a trade below 6318. Although I hesitate to mention bearish patterns because I can be labeled as too bearish, the swing high on August 23rd was lower than the swing high on August 2nd making the bearish case just a tad stronger. But then on the bullish side you have a huge positive MACD divergence and those cannot be ignored. However, the RED box on this chart is very important and one you need to watch. Annotated Daily Chart of the RUT: The blue line joins the March lows with the June lows but notice the August highs are lower. Then we have the August 23 high lower than the August 2nd high and I am looking at a market that needs some of mom's chicken soup because it does not look healthy. Qcharts does not do a great job of volume on the major indexes so I use a proxy for my volume studies. The proxy I will use here is Russell 2000 Ishare IWM to show you the declining volume as the market advances. The Red arrows show IWM advancing on declining volume, then the magenta arrows show IWM falling on advancing volume and since August 16th (blue arrows) IWM is advancing on declining volume again. Annotated Daily Chart of the SPX: SPX has continued to advance but is hitting its red box also. I expect SPX to make it at least to the red arrow which is the swing high made on August 2nd and then make a decision as to if it wants to move on up or retest August lows at 1060. Volume here is quite bearish also. I have used the SPY for the volume chart. The Red arrows show SPY advancing on declining volume. The magenta arrows show SPY falling on advancing volume and since August 16th (blue arrows) SPY is advancing on declining volume again. Annotated Daily Chart of the DOW: The 50 and 200 MAs are diverging more now than they were when I showed them on August 19 but they will still work as resistance because right in the middle of them is the red arrow from the August 2nd highs. When I wrote my wrap on August 19th I didn't think MACD was showing a positive divergence but I see that it really is. It is also making a higher high while price is not and is another positive divergence. For volume studies I used the Diamonds (DIA) As you can see it is the same story here as in the SPY and IWM. Annotated Daily Chart of the COMPX: This market is not yet testing the Red Box and I still don't see anything bullish about this chart. The 200 and 50 MA have diverged so much in this market that you cannot use them both for a resistance zone so I have used the August 2nd highs, of course, then the 50 MA and the 50% retracement from June highs to August lows for resistance. For the volume studies I used the QQQs Volume is the same story in this market as it is in the others. Tomorrows Earnings and Economic Releases Tomorrow at 8:30 ET the Department of Commerce will release data for July's Durable Goods. Consensus is for a 1.0% rise. Briefing.com gives and importance rating to the economic releases from A to F and this report got a B for importance. Also out tomorrow, the Commerce Department will release data on new-home sales at 10:00 ET but this should not be a market mover. Economists surveyed by Dow Jones Newswires and CNBC expect a 2.3% decrease. Briefing.com gave this report a C+ for importance. Tomorrow look for earnings from CWTR, DLTR, MEDW, MIK, NTWK, RAZF, TOL and WSM. Outlook As I said in my August 19 Market Wrap I will be keeping my powder dry and continue to sit here in No-Man's Land until I see the markets break some Red boxes and if not then break August 16th lows. And remember Plan your Trade and Trade your Plan. Jane Fox ================================================================== 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 --------------------------------- Apple Computer - AAPL - close: 31.95 change: +0.87 WHAT TO WATCH: Once again we continue to believe that AAPL looks like a strong bullish candidate. Today's bounce over its simple 40 and 50-dma's and its new MACD buy signal looks like an entry point for longs. The stock didn't even shudder when word hit that MSFT was going to enter the downloadable music market. We would consider a move over $32.00 as an entry point. There is resistance at $34.00 but the current trend suggests that AAPL can trade higher. --- Mueller Industries - MLI - close: 39.50 change: +0.98 WHAT TO WATCH: We've mentioned MLI before. The stock's August trend of higher lows has been impressive. Now the stock is breaking out to new highs not seen since 1998. If shares can breakout above the $40.00 mark it would be new all-time highs for the stock. Considering that volume on today's breakout was more than double the average MLI may have enough gas to push past $40. The bullish P&F chart points to a $56 target. Traders can choose to watch for the move past $40 or buy a bounce from $39. --- Xilinx - XLNX - close: 27.72 change: -0.52 WHAT TO WATCH: XLNX, like many of its fellow semiconductor stocks, has been trading in a descending channel for weeks. The recent failed rally near $29.00 also happens to be a failure near the top of the channel. Negative comments out on Tuesday about the chip sector in general could send the whole group lower. This may be an entry point to target a drop to $25.00 or lower in XLNX. ----------------------------------- RADAR SCREEN - more stocks to watch ----------------------------------- IGT $29.20 -0.47 - IGT continues to make our list as a potential short. Look for a drop under $29.00 or $28.85 as an entry point. ZEUS $24.57 +0.53 - Steel maker ZEUS surged another 2.2% on Tuesday and it's coiling for a breakout over $25.00. =============================== Market Sentiment =============================== No Bounce from Oil Drop - J. Brown Over the last few weeks the markets have been begging for crude oil to drop. It was only a few days ago that stocks surged on the hope that crude prices had topped. That was before oil surged to $49 a barrel. Now that we've seen crude prices slide three days in a row there's no reaction. This could leave the little investor wondering, "what's going on?" If you ask the "professionals" on the floor they'll say that a drop in price has already been priced into the market. Sure, it's priced in. Sounds like they don't know either. While the drop in oil prices is good news the disappointing home sales numbers was bad news for the markets today. Yet this didn't have the same impact that the semiconductor sector did. The SOX slipped 2.5% turning in the worst performance among the major sector indices. The move was sparked by a CSFB downgrade of Broadcom. The analyst firm said channel checks predicted potentially weak sales and the firm lowered their price target on BRCM from $54 to $38. Pouring salt in the wound were comments from the management at semiconductor maker Infineon. They said they did not believe the U.S. chip market would grow at 25 to 30 percent in 2005 as previously expected. This undermined the whole group. There was a lot of talk today about the upcoming Republican National Convention (RNC), which is due to hit New York City a week from yesterday. Bob Pisani, on CNBC, estimated that 50% of Wall Street was planning to take the week off and avoid downtown. This will turn what is normally a weak trading period into a ghost town. Volume will probably hit its lows for the year and stock movements will likely be exacerbated both directions. Investors will need to be careful tomorrow. Late this evening news spread that two passenger jets in Russia have crashed. The first question in everyone's mind is "could it be terrorist?" With two jets dropping in the same few minutes it certainly seems like a possibility. Wednesday morning could see an initial reaction to sell first and ask questions later. ----------------------------------------------------------------- Market Averages DJIA ($INDU) 52-week High: 10753 52-week Low : 9230 Current : 10098 Moving Averages: (Simple) 10-dma: 9991 50-dma: 10157 200-dma: 10247 S&P 500 ($SPX) 52-week High: 1163 52-week Low : 983 Current : 1096 Moving Averages: (Simple) 10-dma: 1084 50-dma: 1105 200-dma: 1110 Nasdaq-100 ($NDX) 52-week High: 1559 52-week Low : 1256 Current : 1369 Moving Averages: (Simple) 10-dma: 1342 50-dma: 1409 200-dma: 1441 ----------------------------------------------------------------- CBOE Market Volatility Index (VIX) = 15.33 –0.55 CBOE Mkt Volatility old VIX (VXO) = 15.21 –0.65 Nasdaq Volatility Index (VXN) = 21.97 –0.57 ----------------------------------------------------------------- Put/Call Ratio Call Volume Put Volume Total 0.79 581,836 458,150 Equity Only 0.59 475,033 282,587 OEX 1.18 10,356 12,211 QQQ 0.27 55,859 15,399 ----------------------------------------------------------------- Bullish Percent Data Current Change Status NYSE 54.0 + 0 Bear Confirmed NASDAQ-100 29.0 + 0 Bear Confirmed Dow Indust. 46.6 + 0 Bear Confirmed S&P 500 49.0 + 0 Bear Confirmed S&P 100 46.0 + 0 Bear Confirmed Bullish percent measures the number of stocks in an index currently trading on a buy signal on their point and figure chart. Readings above 70 are considered overbought, and readings below 30 are considered oversold. Bull Confirmed - Aggressively long Bull Alert - Cautiously long Bull Correction - Pause or pullback in upward trend Bear Alert - Take defensive action if long Bear Confirmed - High risk if long, good conditions for shorting Bear Correction - Pause or rebound in downtrend ----------------------------------------------------------------- 5-dma: 0.90 10-dma: 1.08 21-dma: 1.20 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 1612 1637 Decliners 1226 1364 New Highs 78 38 New Lows 20 39 Up Volume 638M 503M Down Vol. 658M 704M Total Vol. 1342M 1284M 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 ================================================================= To stop receiving this PremierInvestor.net Newsletter, send email to Contact Support ================================================================= DISCLAIMER ================================================================= This newsletter is a publication dedicated to the education of stock traders. The newsletter is an information service only. The information provided herein is not to be construed as an offer to buy or sell securities of any kind. The newsletter picks are not to be considered a recommendation of any stock but an information resource to aid the investor in making an informed decision regarding trading in stocks. It is possible at this or some subsequent date, the editors and staff of PremierInvestor.net may own, buy or sell securities presented. All investors should consult a qualified professional before trading in any security. The information provided has been obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. PremierInvestor.net staff makes every effort to provide timely information to its subscribers but cannot guarantee specific delivery times due to factors beyond our control. Please read our disclaimer at: http://www.optioninvestor.com/page/oin/aboutus/disclaimer.html ***************************************************************** ADVERTISING INFORMATION For more information on advertising in PremierInvestor.net Newsletter, or any Premier Investor Network newsletter please contact Contact Support. ***************************************************************** Copyright ) 2004 PremierInvestor.net. and The Premier Investor Network. Do not duplicate or redistribute in any form.
PremierInvestor.net Newsletter Tuesday 08-24-2004 section 2 of 2 Copyright (c) 2004, All rights reserved. Redistribution in any form is strictly prohibited. The entire newsletter is best viewed in COURIER 10 for alignment ================================================================= In section two: Stop Loss Adjustments: TKLC, SWIR, ELY, SBUX Net Bulls (Tech Stocks) New Bearish Plays: GLW, TXN Stock Splits Announcements: WST 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 ================================================================== TKLC - tech stock long - TKLC is looking pretty bullish here with the short-term trend of higher lows and bounce from the $18.00 level. SWIR - tech stock short - SWIR fell more than 4.5 percent on Tuesday after failing near overhead resistance at its exponential 200-dma. This could be a new entry point for bearish positions. ELY - non-tech long - Shares of ELY hit an intraday high of $12.15 before slipping back under the $12.00 level. We remain un-triggered as we wait for ELY to trade at $12.30 or above. SBUX - non-tech long - We HAVE been TRIGGERED in our SBUX long play. The stock surged quickly toward $45.80 this morning and then spent the session consolidating higher. Its MACD indicator has produced a new "buy" signal. Our entry point was $45.51. ================================================================== Net Bulls (NB) Tech Stock section ================================================================== --------- New Plays --------- New Bearish Plays ----------------- Corning Inc - GLW - close: 10.47 change: -0.18 stop: 11.01 Company Description: Corning Incorporated is a diversified technology company that concentrates its efforts on high-impact growth opportunities. Corning combines its expertise in specialty glass, ceramic materials, polymers and the manipulation of the properties of light, with strong process and manufacturing capabilities to develop, engineer and commercialize significant innovative products for the telecommunications, flat panel display, environmental, semiconductor, and life sciences industries. (source: company press release) Why We Like It: August has been a rough month for shares of GLW. In mid-July the company posted strong earnings and raised its guidance. Its LCD glass panel business is booming and remains "sold-out". Unfortunately, there appears to be a fundamental deterioration in that business at least that's what BAC said when they downgraded GLW in August. Truly there has been nothing but good news coming out for GLW and a couple of firms have tried to defend the stock with upgrades but investors seem too concerned about a slow down and/or oversupply of LCD panel displays. We find that it's no coincidence that GLW's oversold bounce failed at $10.90 today. That happens to be the 50 percent retracement of its August drop. With such a perfect failed rally this is a great spot to consider bearish positions. Our target is the August lows near $9.35-9.45. We'll use an initial stop loss at $11.01 but $10.91 should work too. The bearish P&F chart shows a spread triple-bottom breakdown and a $5.50 target. Annotated Chart: Picked on August 24 at $10.47 Gain since picked: - 0.00 Earnings Date 07/19/04 (confirmed) Average Daily Volume: 9.9 million --- Texas Instruments - TXN - cls: 19.69 chg: -0.57 stop: 20.55 Company Description: Texas Instruments Incorporated provides innovative DSP and analog technologies to meet our customers' real world signal processing requirements. In addition to Semiconductor, the company's businesses include Sensors & Controls, and Educational & Productivity Solutions. TI is headquartered in Dallas, Texas, and has manufacturing, design or sales operations in more than 25 countries. (source: company press release) Why We Like It: Negative comments from CSFB about Broadcom's sales and negative comments from semiconductor maker Infineon about the U.S. market undermined the recent bounce in the SOX and chip stocks began rolling. We see several chip stocks rolling over near the tops of their descending channel. What we like about TXN is the stock's bearish engulfing candlestick and the breakdown back under the $20.00 mark. We do feel that this is a little bit aggressive but we'll try and minimize our risk with a tight stop just above today's high. If this is the bearish reversal it appears to be then this is a great entry point. Feel free to wait and look for confirmation. Our initial target will be $18.00 but the bottom of the channel is lower. Annotated Chart: Picked on August 24 at $19.69 Gain since picked: - 0.00 Earnings Date 07/21/04 (confirmed) Average Daily Volume: 13.8 million ================================================================== Stock Splits ================================================================== Announcements ------------- WST declares a 2-for-1 stock split This afternoon before the closing bell West Pharmaceutical Services, Inc. (NYSE:WST) announced that its Board of Directors had approved a quarterly cash dividend and a 2-for-1 stock split of its common shares. The cash dividend of 11 cents per share will be paid on a post- split basis on November 3rd, 2004 to shareholders on record as of October 20th. The stock split, in the form of a 100% stock dividend, is payable on September 29th, 2004 to shareholders on record as of September 15th. Post-split WST will have approximately 30.5 million shares outstanding. About the company: West is the world's premier provider of standard-setting systems and device components for parenterally administered medicines and an emerging leader in the development of drug formulation and delivery system technologies for the nasal and targeted oral delivery of drugs. Internationally headquartered in Lionville, Pennsylvania, West supports its partners and customers from 50 locations throughout North America, South America, Europe, Mexico, Japan, Asia and Australia. (source: company press release) ================== 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 HBC HSBC Holdings 76.18 +0.65 WB Wachovia Corp 46.90 +0.66 TD Toronto Dominion 35.19 +1.12 CVS CVS Corp 40.43 +0.54 PGR Progressive 78.75 +0.94 UNP Union Pacific 56.51 +0.53 --------------------------------------- Breakout to Upside (Stocks $5 to $20) --------------------------------------- AGYS Agilsys Inc 15.60 +1.12 EPIQ Epiq Systems 16.20 +1.12 AMXC AMX Corp 16.91 +1.49 --------------------------------------- Breakout to Upside (Stocks over $20) --------------------------------------- HNZ H.J.Heinz 37.63 +1.03 EQR Equity Residential 32.17 +1.04 HRB H&R Block 51.23 +1.26 POT Potash 51.66 +1.37 MHK Mohawk Industries 76.00 +1.88 PCU Southern Peru Copper 43.00 +2.45 NCEN New Century Financial 53.10 +1.10 ------------------------------------------- Breakout to Downside (Stocks over $20) ------------------------------------------- SVU Supervalu Inc 27.26 -1.24 SRCL Stericycle 45.32 -1.29 ORLY O'Reilly Automotive 38.60 -1.27 FFH Fairfax Financial 132.41 -7.88 COT Cott Corp 26.86 -1.28 PPC Pilgrim's Pride 24.72 -3.23 TTC Toro Co 62.07 -4.63 SAFM Sanderson Farms 34.90 -11.12 ----------------------------------------- Recently Overbought With Bearish Signals (Stocks over $20) ------------------------------------------- WWCA Western Wireless 25.28 -1.37 CCBI Commercial Capital 22.11 -1.14 ================================================================= To stop receiving this PremierInvestor.net Newsletter, send email to Contact Support ================================================================= DISCLAIMER ================================================================= This newsletter is a publication dedicated to the education of stock traders. The newsletter is an information service only. The information provided herein is not to be construed as an offer to buy or sell securities of any kind. The newsletter picks are not to be considered a recommendation of any stock but an information resource to aid the investor in making an informed decision regarding trading in stocks. It is possible at this or some subsequent date, the editors and staff of PremierInvestor.net may own, buy or sell securities presented. All investors should consult a qualified professional before trading in any security. The information provided has been obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. PremierInvestor.net staff makes every effort to provide timely information to its subscribers but cannot guarantee specific delivery times due to factors beyond our control. Please read our disclaimer at: http://www.optioninvestor.com/page/oin/aboutus/disclaimer.html ***************************************************************** ADVERTISING INFORMATION For more information on advertising in PremierInvestor.net Newsletter, or any Premier Investor Network newsletter please contact Contact Support. ***************************************************************** Copyright (c) 2004 PremierInvestor.net. and The Premier Investor Network. Do not duplicate or redistribute in any form.
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