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Daily Newsletter, Thursday, 09/02/2004

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PremierInvestor.net Newsletter                 Thursday 09-02-2004
                                                    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:       Chip Crumbs
Watch List:        Disk Drives to Retro Apparel
Market Sentiment:  Odds of Profit Taking

=================================================================
MARKET WRAP  (view in courier font for table alignment)
=================================================================
      09-02-2004           High     Low     Volume   Adv/Dcl
DJIA    10290.28 +121.80 10301.49 10162.05 1.37 bln 2308/ 903
NASDAQ   1873.43 + 23.00  1876.24  1846.95 1.22 bln 1993/1031
S&P 100   544.15 +  5.55   544.54   538.35   Totals 4301/1934
S&P 500  1118.31 + 12.40  1119.11  1105.60 
W5000   10865.46 +116.59 10873.25 10745.76
SOX       377.60 +  3.40   378.08   370.12
RUS 2000  559.78 +  7.32   559.80   551.88
DJ TRANS 3162.49 +  7.32  3162.49  3105.68
VIX        14.28 -  0.63    15.05    14.18
VXO (VIX-O)14.37 -  0.61    15.26    14.20
VXN        21.62 -  1.03    22.94    21.50 
Total Volume 2,824M
Total UpVol  2,286M
Total DnVol    481M
Total Adv  4840
Total Dcl  2239
52wk Highs  217
52wk Lows    68
TRIN       0.50
NAZTRIN    1.41
PUT/CALL   0.92
=================================================================

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

Chip Crumbs
by Jim Brown

Don't you hate to open a bag of chips and find them settled
into a pile of crumbs at the bottom of the bag? The chip
sector may soon look like a sector of crumbs after the 
news released on Thursday. Low demand has chips on the
shelf approaching their expiration date and half price 
sales can't be that far off if Intel's update is any
guide. 

Dow Chart – daily

 
Dow Chart - 60 min

 
Nasdaq Chart – Daily

 
SPX Chart – daily

 
SOX Chart

 
Advance/Decline Chart - 2 min

 

It was a busy day economically and as usual the answers
were as mixed as Forrest Gump's box of chocolates. The 
Chain Store Sales posted only a +1.1% gain for August
compared to a +3.1% gain in July. This was the worst
showing since March of 2003. We all know the reasons 
are gas prices, tougher comparisons over last year and
some say the weather. Nothing new here from the weekly
update, just more of the same. Every store group except
for drug stores posted lower sales. One report today
showed that 55% of stores reporting same store sales
for August were below plan. Not a good outlook for the
sector or the economy. Back to school sales were also
reported as slower than normal. 

Jobless claims rocketed to 362,000 for the week and the
analysts were quick to blame the after effects of Hurricane
Charley on the increase. This was the first week over
350K since June 5th and was the highest level since April
10th. Offsetting the Jobless Claims news was a jump in
the Monster Employment Index to 145 from last months
134. This was particularly strange since I heard an on
air commentator yesterday saying they had seen an advance
copy and it was not pretty. It looked ok to me but 
without seasonal adjustments it is tough to know what
the number should be. There is not enough history for
this index to be meaningful. Monster itself indicated
that much of the advertising was due to seasonal trends
in the Agriculture, forestry, manufacturing, mining, 
transportation and warehousing sectors. 

Productivity and Costs were revised down to 2.5% and
below the estimates of 2.7% for the updated report. 
The revision was due to changes in the GDP and a jump
in hours worked. This was the smallest gain since the
second quarter of 2002 and far less than the +9.0%
we saw in Q3-2003. This falling productivity is not
something the Feds will be excited about but not low
enough to impact their rate hike policy. Offsetting
the drop in Productivity was a jump in Factory Orders
by +1.3%. This was slightly better than expected and
suggests the manufacturing sector is still moving 
forward despite the slowdown in other sectors. This
was the third consecutive month of increases and the
largest gain since March. Autos were weakest and that
goes along with the drastic drop in auto sales which
were reported yesterday. 

The Risk of Recession shot up to 32.7% in August from
only 25.7% in July. Consumer Confidence, interest rates
and weakness in the equity markets were prime factors
in the jump. This report projects the chances of a
new recession over the next six months. This was the
second strong monthly jump with the July jump from 
June's 12.3% a significant move. 

It appears the semiconductor sector is already in a
recession with the barrage of data out today. The
semiconductor billings were released for July and they
increased only a marginal +1%. While we have seen a
decreasing trend since March and the likelihood we
will see a drop in August the numbers still represent
a +37.9% gain over the 2003 levels. This is the highest
level attained since Q4-2000. VLSI Research would have
us believe that things are better than they appear to
be. We have been getting so much negative press on
chips over the last two weeks that it is hard to put
enough lipstick on this pig to believe that story. 

After the bell today Intel released their long awaited
mid quarter update and it was not an exciting outlook. 
Intel has a lot of problems and they continue to emerge
as the layers of doublespeak are peeled away. Intel 
lowered its revenue expectations for the current 
quarter to a range of $8.3B to $8.6B. This new midpoint
of $8.45B is well outside their previous range of $8.6B
to $9.2B with a midpoint of $8.9B. This nearly half a 
billion dollar haircut was accompanied by a drop in 
gross margin expectations to 58% from the prior estimate
of 60%. This goes along with the negative margin surprises
various brokers have been predicting. 60% of $9.2B is 
a gross profit of $5.3B. 58% of the lowered estimate 
of $8.45B is $4.9B in profits. This represents a drop 
in $400 million in expected gross earnings before costs.
I doubt Intel will be standing in line for food stamps
anytime soon but this was a substantial cut in estimates
and represents a continuation of the downtrend started
several months ago. 

Intel said the problem stemmed from weakness around the
globe in both corporate and retail sectors with the
larger weakness coming from the retail sector. They
also said inventory would INCREASE again instead of
dropping as they had previously forecast. This is a 
major change in trend and a major slip up for Intel. 
They said the 3Q drop was due to a weaker demand 
picture at the low end of historical expectations. 
They also said the 4Q would also be weak and set the 
stage for a lowered profit forecast when they announce
3Q earnings in Oct. Intel said its primary architecture
products and flash memory products were trending below
plan. They also said they would cut capex spending for
the current quarter. 

There is no way to paint this update in a favorable
light and investors clobbered the stock in after hours
to a low of $19.57 and a close under $20. Several 
analysts predicted a fair value based on the current
outlook at $18. Smith Barney said yesterday there was
20% downside left in Intel at 21.50 which would put it
just over $17. We have been looking for a touch of $20
in the LEAPs section for an entry on some 2006 LEAPS. 
Looks like we got our wish. Odds are good we will also
hit our exit on the SMH puts at $28. 

Helping push the sector lower was an after hours warning
from ALTR and IDTI. While the headline stocks warning
dropped between -7% to -10% on the news the majority
of the other chip stocks were off -4% to -5% in late
trading. As I mentioned earlier this week the closer
we get to the warning season, about two weeks away, we
would see an increase in warnings and chip and software
companies should head the list. Fairchild Semi warned
yesterday as well. 

Also pressing equity prices this morning was another
jump in oil prices after Yukos said they were on the
verge of a shutdown because of frozen accounts. Crude
hit an intraday high of $45.40 before dropping to 
close about a dollar lower. Those that thought the
$41.30 low on Monday was a hint of lower prices ahead
were sadly mistaken. 

Everyone knows the President speaks tonight in the
biggest event in the Republican convention. After a
very slow and weak morning the market took flight at
2:PM and gave Bush a triple digit gift as an investor
warm up prior to him taking the stage. Multiple strong
buy programs fired off in quick succession and added 
over 2000 issues to the A/D line and +100 points to 
a sleepy market. We get buy programs all the time but
to see multiple programs in succession and in front 
of the Intel update, which was expected to be negative
and tomorrow's Jobs report which could also be a disaster
suggests something fishy afoot. I am sure there are 
quite a few traders who would like to know who launched
those programs and why but it is something we will never
know. I would also not only pick on just the Republicans
because there was an identical unwarranted program trade
spike at the end of the Democratic convention. That
spike rallied the Dow +155 points off its intraday lows.
Actually that spike made more sense because the low for
the day was just under 10,000 and strong support. 

We all know games are played and sometimes by people
with very deep pockets and sending the President to 
the podium with a triple digit gain instead of a fear
of Intel drop probably looked good to a lot of people. 

The Dow explosion today launched from 10175 and ended
with a touch of 10301. This was well over several strong
resistance levels and triggered substantial short covering.
This was the highest level reached by the Dow since July
2nd. The Nasdaq rallied +23 points which by itself was
not spectacular except that it came right in front of
an almost guaranteed Intel disaster. It is amazing they
could budge it higher at all. The SPX exploded over the
strong 1111 resistance level and its 100/200dma as though
on rocket boosters. There was barely even a blip of 
recognition as it crossed multiple resistance levels.

Ah yes, that was today. Tomorrow may be an entirely
different story without any artificial support and 
with very strong negatives in the tech sector. We also
have that questionable Jobs report before the open and
the whisper numbers are all over the map. I have heard
the potential for a negative number as well as some
expectations for something north of 200K. This is a 
huge range and given today's spike and tonight's chip
news the only thing we can guarantee is a very volatile
session. 

The main thing I heard today was "the bad news is priced
in" and buyers are bargain hunting for the post convention
rally. I have to agree that I was expecting a post 
convention bounce last week and the gains this week 
were probably some early adopters trying to sneak into
positions but we are rapidly running out of events to 
power/depress the market. Beginning next week we will
be left to wander on our own with little more than 
earnings warnings to keep us company. Beware the 
September winds because they blow nothing good our way.
Historically next week sees an opening rally but then
deteriorates into the normal October surprise. So if
we do get a decent Jobs report and a post convention
holiday rally be sure to wear your parachute and keep
those seatbelts fastened. 

By breaking those resistance levels today we have just
about reached the upper edge of our potential range. 
The Dow could have seen a further rise to 10400 if
Intel has not spoiled the party. It is always possible
that a blowout Jobs report tomorrow could resurrect
that bullish spirit but I am thinking the damage has
been done. If we do move higher it should not be much
higher and we are only setting up for the next drop.
As of tonight the Jobs report should have more bearing
on tomorrows trading than Intel and our fate will remain
unknown until 8:30 in the morning. 

Enter Passively, Exit Aggressively. 

Jim Brown
Editor


==================================================================
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
---------------------------------

Hutchinson Tech - HTCH - close: 25.31 change: +0.35

WHAT TO WATCH: We almost added HTCH to the play list last night 
as an aggressive long play.  We like the mid-August breakout 
above its descending trendline of resistance dating back to 
April.  Shares spent most of the last two weeks consolidating 
those gains as it churned between $24 and $25.  Wednesday saw 
HTCH produce a bullish engulfing candlestick, which appeared to 
be an entry point but we didn't take it because of concern over 
Intel's update tonight and HTCH's bearish P&F chart.  Today HTCH 
broke through and closed over the $25.00 level but its P&F chart 
remains bearish and Intel disappointed as expected.  If HTCH dips 
with the tech sector tomorrow watch for a bounce from support at 
$24.00.  Otherwise keep an eye on its P&F chart.  A move over 
$27.00 would produce a new "buy" signal.




---

Network Appliance - NTAP - close: 20.61 change: +0.29

WHAT TO WATCH: NTAP looks poised for a bullish breakout over the 
top of its descending channel and its simple 200-dma.  However, 
now investors have to digest the disappointing Intel news, which 
is likely to send the tech sector lower.  Traders may want to 
consider bearish plays on a drop below $19.25 or bullish plays on 
a move over $21.00.  The P&F chart is actually bullish.




---

Pacific Sunwear - PSUN - close: 20.64 change: +1.52

WHAT TO WATCH: PSUN surged almost 8 percent on Thursday with 
volume well above normal after reporting better than expected 
August same-store sales numbers.  The move pushed PSUN through 
round-number resistance at $20.00 and technical resistance at its 
simple 100-dma and the exponential 200-dma.  PSUN has also broken 
its five-month trend of lower highs.  Look for a move past $21.00 
as confirmation of the new uptrend.




---

Hot Topic - HOTT - close: 16.20 change: +0.83

WHAT TO WATCH: HOTT could be a retailer worth watching.  
Yesterday the company reported disappointing same-store sales for 
August but the results were largely inline with estimates.  Today 
the stock added 5.4 percent as the retail sector rallied with the 
market and widespread same-store sales data from the industry.  
Readers can watch for a breakout from the top of its current 
trading range above $16.50 or watch for a dip back toward $14.50 
and buy a bounce.  There is technical resistance at its simple 
50-dma but a move over $16.50 would put it into the gap allowing 
for a run towards $19.00.





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

CECO $34.51 +1.96 - Yesterday was COCO's turn to rally.  Today 
was CECO's turn.  The stock added 6 percent but couldn't breakout 
over the $35.00 level.  If CECO can trade above $35.22 consider 
it a trigger to go long and target the $40.00 mark.



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

Odds of Profit Taking
- J. Brown

It has certainly been an interesting market this week.  The rally 
on Thursday seemed to catch most traders off guard.  Everyone was 
waiting for Intel's mid-quarter update and the expectations 
weren't very high.  After all most of Wall Street's largest firms 
had already warned that they expected bad news from Intel.  Yet 
despite this concern stocks charged higher and the Industrials 
and the S&P 500 broke through their simple 100 and 200-dma's.  
This was a very bullish technical breakout today and the NASDAQ 
closed at new four-week highs and the Dow closed at new seven-
week highs.  29 of the 30 Dow components closed in the green and 
only the OSX oil services index and the XAU gold& silver index 
closed lower showing just how widespread the rally was today.

Looking across the two-dozen or so major sector indices it's an 
interesting picture.  For most the rally from the August lows is 
easily three maybe four weeks old already.  Yet while some 
sectors are starting to look tired others appear to be catching 
their second wind.  

As most of you continue to look below this column at the various 
sentiment indicators I'd like to draw your attention to the 
bullish percent data.  We've haven't discussed this much lately 
because most of the indices were stuck in "bear confirmed" 
status.  Yet in the last few days we've seen the NASDAQ-100 index 
(NDX) bounce into a "bull alert" status.  Meanwhile the S&P 100 
and the S&P 500 have bounced into a "bear correction".  Now the 
question here should be whether or not the bear "correction" is 
merely a pause or rebound in the downtrend or the precursor to 
growing into a new "bull alert".  I'm not sure we can draw any 
short-term conclusions today but it might make you pause if 
you're considering new bearish positions.   

Now why would we be considering new bearish positions? After all 
the major indices just broke out to new highs over their major 
moving averages?  One could point to the volatility indices.  The 
rally in stocks has sent the volatility indices toward their 
lows, which is a dangerous spot to be considering new bullish 
plays.  Of course the VIX/VXO are not the besting timing/entry 
point indicators and only offer us clues that a turnaround could 
be in the short-term future.  Yet what a coincidence that Intel's 
mid-quarter update just happens to be the necessary catalyst to 
spark a potential bearish turnaround.  Yes, if you haven't read 
tonight's market wrap yet Intel, as predicted, disappointed and 
was punished with an 8 percent drop in after hours trading.  This 
is going to seriously hurt the SOX, which will then weigh on the 
NASDAQ.  Odds of any profit taking after this week's rally ahead 
of the long Labor Day weekend just skyrocketed.  

Not only do investors have to deal with the Intel fallout but 
Wall Street will be digesting President Bush's speech tonight 
while anticipating the jobs report after the open on Friday.  At 
the same time Hurricane Frances is rushing towards the east coast 
in what could be the most expensive storm to hit the U.S. in 
history!

Yes, the odds of profit taking on Friday are almost guaranteed!


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

Market Averages

DJIA ($INDU)

52-week High: 10753
52-week Low :  9233
Current     : 10290

Moving Averages:
(Simple)

 10-dma: 10158
 50-dma: 10127
200-dma: 10261



S&P 500 ($SPX)

52-week High: 1163
52-week Low :  983
Current     : 1118

Moving Averages:
(Simple)

 10-dma: 1103
 50-dma: 1101
200-dma: 1112



Nasdaq-100 ($NDX)

52-week High: 1559
52-week Low : 1280
Current     : 1398

Moving Averages:
(Simple)

 10-dma: 1378
 50-dma: 1397
200-dma: 1440



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

CBOE Market Volatility Index (VIX) = 14.28 –0.63
CBOE Mkt Volatility old VIX  (VXO) = 14.37 -0.61
Nasdaq Volatility Index (VXN)      = 21.62 -1.03


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

          Put/Call Ratio  Call Volume   Put Volume

Total          0.92        537,742       493,922
Equity Only    0.72        404,787       293,349
OEX            1.35         21,078        28,456
QQQ            3.07         20,488        62,869


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

Bullish Percent Data

           Current   Change   Status
NYSE          56.9    + 1.5   Bear Confirmed
NASDAQ-100    36.0    + 4     Bull Alert *****
Dow Indust.   53.3    + 6     Bear Confirmed
S&P 500       54.4    + 3     Bear Correction***
S&P 100       54.0    + 5     Bear Correction***


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

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


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

 5-dma: 1.24
10-dma: 1.09
21-dma: 1.23
55-dma: 1.27


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    2091      1985
Decliners     702       978

New Highs     139        57
New Lows       10        22

Up Volume   1129M      936M
Down Vol.    202M      239M

Total Vol.  1355M     1199M
M = millions


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

Commitments Of Traders Report: 08/24/04

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

Commercials have upped both their longs and shorts but remain
net bearish. Small traders have upped their shorts and pared
back their longs a bit but remain net bullish.

Commercials   Long      Short      Net     % Of OI
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%)
08/24/04      402,599   420,478   (17,879)   (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
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%
08/24/04      135,151   100,351    34,800    14.7%

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

Commercial traders have decreased their longs and increased
their shorts, which could be bad news for the S&P 500.  In
lockstep mirror-like fashion small traders are moving the 
opposite direction than the "smart money".  

Commercials   Long      Short      Net     % Of OI 
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%)
08/24/04      392,065   473,911   ( 81,846)  ( 9.4%)

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
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%
08/24/04      211,995     76,184   135,811    47.1%

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 added to both their shorts and longs
but the end result was an increase in bullish sentiment on
the NDX.  Small traders are also bullish but have cut their
enthusiasm in half.  In essence small traders are beginning
to turn bearish, which in a contrarian sense is bullish.
Confused yet?

Commercials   Long      Short      Net     % of OI 
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%
08/24/04       48,624     43,222     5,402    5.8%

Most bearish reading of the year: (21,858)  - 08/26/03
Most bullish reading of the year:  25,160   - 06/01/04

Small Traders  Long     Short      Net     % of OI
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%
08/24/04       11,666    10,068     1,598     7.3%

Most bearish reading of the year: (20,270) - 06/01/04
Most bullish reading of the year:  19,088  - 01/21/02

DOW JONES INDUSTRIAL

Commercial traders remain bullish but have pared back their 
longs a bit. Meanwhile small traders remain bearish but have also 
hedged their enthusiasm a bit.

Commercials   Long      Short      Net     % of OI
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%
08/24/04       28,919    23,658    5,261      10.1%

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
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%)
08/24/04        5,052     7,214   (2,162)   (17.6%)

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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PremierInvestor.net Newsletter                 Thursday 09-02-2004
                                                    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:  NYB

Stock Splits
  Announcements:       None

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

NYB - non-tech long -
  Exit Point/Profit Alert!  - NYB has hit the $22.00 level.   
  We're still suggesting readers consider taking some profits
  here but we're going to keep the play open and see how far
  it can run.  NYB has already exceeded our initial profit target.


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

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

None


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

FDC     First Data Corp            42.83     +0.64
LOW     Lowe's Companies           51.30     +1.12
UTX     United Technologies        94.74     +0.79
CAH     Cardinal Health            46.77     +0.98
PCAR    Paccar Inc                 62.21     +1.10
GP      Georgia-Pacific            35.00     +0.81

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

TCC     Trammell Crow Co           15.50     +2.08
CATZ    Computer Access Tech        5.80     +2.00

---------------------------------------
Breakout to Upside (Stocks over $20)
---------------------------------------
  
AEOS    American Eagle Outfitters  36.38     +2.22
MLI     Mueller Industries         42.77     +3.77
PLCE    Children's Place           21.76     +2.76
MBRS    Memberworks                25.76     +1.09

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

CHS     Chico's FAS                38.58     -2.50
VTS     Veritas Dgc                20.97     -3.60

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

.none..


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