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Daily Newsletter, Tuesday, 08/24/2004

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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


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


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