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Daily Newsletter, Sunday, 10/24/2004

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PremierInvestor.net Newsletter          Weekend Edition 10-24-2004
                                                    section 1 of 3
Copyright (c) 2004, All rights reserved.
Redistribution in any form is strictly prohibited.

The entire newsletter is best viewed in COURIER 10 for alignment
=================================================================

In section one:

Market Wrap: New Low        
Market Sentiment: One Week To Go    
Watch List: Drugs to Internets and more!          

=================================================================
MARKET WRAP  (view in courier font for table alignment)
=================================================================
       WE 10-22        WE 10-15        WE 10-08        WE 10-01
DOW     9757.81 -175.57 9933.38 -121.82 10055.2 -137.45 +145.41 
Nasdaq  1915.14 +  3.64 1911.50 -  8.47 1919.97 - 22.23 + 62.72 
S&P-100  525.16 -  6.64  531.80 -  6.67  538.47 -  4.64 +  8.74 
S&P-500 1095.74 - 12.46 1108.20 - 13.94 1122.14 -  9.36 + 21.39 
W5000  10748.04 - 90.63 10838.7 -125.85 10964.5 - 94.18 +220.40 
SOX      395.16 + 13.79  381.37 -  8.15  389.52 - 12.39 + 19.36 
RUT      567.77 -  0.65  569.42 -  6.23  575.65 -  9.38 + 19.06 
TRAN    3371.94 + 19.26 3352.68 + 16.68 3336.00 + 37.20 + 96.69 
VXO       16.09           15.89           14.95           12.55 
VXN       21.36           21.80           20.69           18.91   
=================================================================

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

New Low
by Jim Brown

It is official! The Dow closed at the low for the year on
Friday at 9757. The gains for the year have been erased
and we are only 157 points away from erasing all the gains
from the Nov/Dec rally last year. That rally saw a low of
9600 in November and ended in February at 10656. A +1056
point gain on the verge of being completely erased. Please
pinch me, I want to wake up from this nightmare. 

Wilshire 5000 Chart

 
Dow Chart

 
Nasdaq Chart

 

There were no economic reports to sway trader's feelings
on Friday and there were little in the way of stock events.
Earnings slowed and there were no high profile earnings
misses. Some blamed oil as it traded over $55 for most 
of the day but I believe it was more of the scapegoat
rather than the reason. 

The main story of the day was the Google explosion and
a +$25 gain in the stock price. Nearly 37 million shares
traded and there are only 31 million or so available to
trade. Short interest was obscenely high and it appears
they all tried to cover on the same day with many shares
trading hands several times before the day was out. The
press could not decide to praise Google or crucify them
given the ramp to $180 intraday. Brokers were tripping
over themselves raising price targets to between $180
and $200 now that their original targets in the $125-145
range were badly missed. Valuation was discussed over
and over with comparisons to other Internet stocks the
norm. This is the way they stack up. 

Amazon @ $34.50 2005 PE is 29
Yahoo @ $35.00 2005 PE is 72 
Ebay @ $96.00 2005 PE is 62  
Google @ $175 2005 PE is 45

Should Google rise to $250 it would be a 2005 PE of 66.
The gains on Friday were not related to valuation as
much as they were related to the monster short squeeze.
Many traders had expected them to produce disappointing
earnings and plummet from the lofty levels of last week.
Long call options generated even more short covering
activity. Option volume was huge. The Nov-170 call had
open interest of only 4682 but volume Friday was 8930.
The 180 call had open interest of 1556 but volume of
7964. Multiply this for all the months/strikes and you
can see how the panic developed. Traders trying to use
normal logic in trading the stock were creamed. For
instance, traders long the stock but expecting the
bounce to fail could have sold covered calls at the
$165 open expecting to collect the premiums and laugh
when the stock rolled over. As the stock shot up to
$175-180 and people started talking about $200-250
they raced to buy the calls back thereby adding to the
volatility they were trying to avoid. It was a crazy
day that brought back memories of the Nasdaq bubble. 
GOOG increased its market cap by $7 billion by the
close. 

Unfortunately investors may have found Google's legs 
but they could not find any coattails. The Google 
windfall did not help the market or even the other
stocks in its sector. AMZN dropped -4.87 to $34.50
after warning that earnings were slowing. YHOO fell
-$2 off its high and closed down -75 cents as traders
ran to the new kid on the block. EBAY fell -$6.16 off
its Google induced opening high of $102.12 to close 
-3.68 for the day at $95 despite great earnings earlier
in the week. Traders took profits on the old timers
and I a sure a few dollars were thrown at Google in
hopes of another $400 Amazon replay.

Spitzer took aim at another sector on Friday in an
effort to be an equal opportunity prosecutor. Music
companies came under fire for investigation into schemes
that could be seen as pay for play which is illegal. 
EMI said Spitzer was investigating how music companies
influence what songs are played on the radio. They
indicated they along with other music companies were
cooperating fully in the investigation. The investigation
centers on how they hire and compensate middlemen to
promote their music in an effort to sidestep U.S. laws
against pay for play or bribing of broadcasters and
DJs. One industry source said the investigation would
be a good thing if it eliminated the practice because
companies pay hundreds of millions of dollars per year
to these middlemen. 

In a news release that will be bad for consumers INTC
cancelled its plans to produce its liquid crystal chip
for big screen TVs. This new process was going to cut
production costs of wide screen TVs much like their
processor chips did for personal computers over the
last two decades. Intel had delayed it twice and finally
cancelled it saying the investment and time would be
better used in other areas. Intel just recently dropped
plans to produce a 4ghz chip scheduled to ship early in
2005. They said they could produce better throughput
gains using other processes rather than concentrate on
the faster chip. Experts have pointed out recently that
the current generation of 3+ghz chips are not being used
to full capacity due to limitations in other hardware
and software on current PCs. 

I mentioned on Thursday night that the SOX had resisted
the broad market sell off and was holding near resistance
at 410 in what could be a potential breakout ahead. After
Friday's chip wreck that seems less of an option than
before. The SOX failed at that 410 resistance and fell
back to 395 after the flood of warnings on Thursday night.
The sector had been bullet proof since the Monday low
but the combination of the BRCM, XLNX, KLAC, LSCC, MCHP,
IDTI and TQNT warnings all on the same day was too much
for chip buyers to bear. The SOX fell -14 points BUT that
was less than it gained on Thursday before the warnings.
Chips may have been weak on Friday but weak is relative
and the index closed up +14 for the week and well off
its 375 lows from Monday. 

So what did cause the market decline? I have several 
suggestions that may have contributed to the decline. 
First there was the SOX decline on the chip warnings. 
No big deal and it appeared to be simply normal profit
taking from the weeks pre earnings gains. Another 
contributing reason was the high oil prices and heating
oil hitting record highs at $1.586. Government data this
week showed home heating oil inventory levels to be -12%
below normal and analysts fear a cold snap as we near 
Halloween could push those levels even lower. Lately 
equities have been ignoring oil prices but the new 
warnings may have been a minor contributing factor. 

Earnings are not coming in as strong as expected. With
52% of the S&P already reported the most optimistic 
calculation shows average earnings at +15.2% growth but
there are firms publishing numbers at +10.8% as well.
The average earnings beat is only +2.2% compared to 
+3.0% on a normal basis. We currently have a 2:1 ratio
of guidance warnings compared to a normal 3:1 ratio of
companies raising estimates. While this was not expected
to be an exciting quarter most expected it to be better
than what we are getting. With most companies guiding
lower the earnings deceleration is coming a quarter
earlier than most expected. Most analysts expected Q4
to be decent and the decline to +3% growth to begin in
Q1. 

Bonds hit a seven month high on Thursday and ten year
yields have been under 4.0% for three days now. The
bond rally is creating uneasiness in equities when 
you realize we are 12 days away from another Fed rate
hike. What do bonds know that we don't is the worry
among equity traders? Are bonds predicting an economic
decline? If so then the gains are from traders shifting
out of equities and into the safety of bonds until the
future brightens. 

The cloudy future could have a lot to do with the current
election predictions. RealClearPolitics.com averages the
various surveys on a weekly basis and they are showing
a very scant 2% lead for Bush. http://realclearpolitics.com/bush_vs_kerry.html 
Since the Dow has fallen the two months before the 
election 9 of the last 10 elections where the incumbent
lost we could be seeing a higher level of caution enter
the markets as we near the election. The market could be
predicting a change in administration ahead. With only a
week to go and no clear leader the various market factors
specific to each candidate cannot be brought into play.
Nobody knows which way to play. Are taxes going up or 
down? Will spending increase or decrease? Will drug 
companies be forced to sell drugs cheaper? What will
happen to social security, health care, etc? Nobody 
knows and hedge funds don't know where to invest their
$1.2 trillion in cash currently under management. Mutual 
funds who have thinned their portfolios heading into
their October year end don't know if they should invest
in health care, energy, financials or homebuilders. With
the economic outlook cloudy there is no clear sector 
other than commodities that suggest a reasonable return.
With China still growing at a +9.1% clip based on this 
week's data the commodity sector is not likely to slow.
That leaves equities starving for dollars. 

Historically the end of October sees a ramp into the
election when there is an obvious leader. No leader
equals no ramp. We are getting to the point where the
undecided voters will have to get off the fence and
make a commitment. The surveys will intensify next
week and hopefully that commitment will be reflected
because left on our own next week could get ugly. 

The Dow closed at the lows for the year and the fourth
major new low for the current down trend pattern. The
general consensus expected the Dow to hold at the 9800
level and Friday's close was a wake up call for traders.
The Dow now has potential to trade down to 9700 or
even 9600 to complete the current pattern. With all
the indecision about oil, economy, earnings and election
it could easily hit 9600 by Tuesday. I am not saying it
will because there are other circumstances at work here.
Once a rebound begins, if it begins, there is strong 
resistance at every 50 point increment from 9900 to 
the top of the pattern at 10350. Despite the -107 drop
on Friday there were only two Dow components that lost
more than $1. AIG -1.75 and MMM -1.72. 28 of the Dow
components ended negative but the majority were only
down 50 cents or so. It was not a washout or a landslide
regardless of the final numbers.

The Nasdaq is still in much better shape and holding
over strong support at 1900. The -38 point Friday drop
still left it +13 for the week. It appeared to be chip
led profit taking more than tech dumping. The SOX and
the Russell continue to provide support and until that
changes we will continue to see bullish divergence. The
Nasdaq has multiple supports all converging between
1885-1915. The 100dma at 1907, 50dma at 1885, uptrend
support at 1915 and horizontal support at 1900. This
congestion range should withstand any casual selling
and only be broken with a serious market downdraft.

SOX Chart

 
Russell Chart

 

I mentioned the external circumstances I believe were
at work on Friday. Many mutual funds have October year
ends and they shuffle their portfolios in October and
sell some winners to offset the losers also sold. A
fund holding EBAY for instance has a 100% gain from
the $50 price this time last year. How much higher
can EBAY be expected to rise? Probably not another
+100%. For funds that found themselves with a bunch 
of MRK, MMC, AIG or tech stocks that imploded rather
than exploded then EBAY, RIMM, SYMC, etc, become cash
machines to fill those potholes. They certainly do not
want to sell all their winners because they want to 
show how smart they were by having winners on their
year end statements. But nothing prevents them from
paring those positions to smooth out the rough spots.
Thus the big losses in EBAY, SYMC and RIMM to name a
few. Even energy stocks lost ground despite a new 
high for oil over $55. This could be just normal 
October portfolio adjusting. 

If they are going to make adjustments before their
year end they only have five days left. Last week 
probably represented this pruning process and the 
Thursday earnings flood of nearly 400 companies
gave them plenty of guidance on which stocks to
dump. Hopefully that dumping process has been 
completed and funds will be shopping again next 
week.   

We need to also keep in mind that there has not been
any terrorist event designed to impact the election
as they had in Spain. If they are going to try to
sway the election this is the week. Personally I
think any event would only help Bush and that may
be what is holding them back. This could also have
been a factor in our market weakness this week. Fear
of the unknown is always market negative. 

Speculating on daily market direction in October is
a fools errand. Historically bottoms are made in Oct
and Nov/Dec are usually up. Without a crystal ball
picking that October bottom is best done in November
when hindsight is the best. I would love to say 
Friday was a final flush job but there are far too 
many factors to make that call. I still believe the
market will rally after the election but with no 
clear leader the rest of October will be a tossup. 
However, if you are a fund manager with cash to 
invest the Dow represents the most depressed big 
caps in the market. Hunting for bargains in the
Dow is like trying to find the last edible piece of
popcorn among the scorched kernels in the bottom of
the bag. With the exception of HD, VZ, JNJ and XOM 
the rest of the roster offers risk/reward profiles
only Mother Teresa could love.  

That poses a problem for the rest of the year. Any
Dow rally could be weak and divergence from the other
indexes is almost guaranteed. While prior analyst
estimates suggested 10750-11000 would be the year end
range I would be happy to just see four positive days
out of every five so as not to be a major drag on the
rest of the indexes. Triple digit days are not required
and probably will not be seen. Just let the Dow stay 
positive and disaster free leave the long distance 
driving to the Russell. 

Just keep repeating this to yourself. Just one more
week, just one more week. Just let this torture pass
and get the election behind us so investors can 
concentrate on the future. If next week ends positive
then consider it a gift from the market and a sign
of better times ahead. Should we close lower than
Friday's 9750 you can consider that a sign as well.
A sign the party may be over. 

Enter Very Passively, Exit Very Aggressively!

Jim Brown


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

One Week To Go
- J. Brown

Friday should have been no surprise.  The disappointing earnings 
reports from AMZN, MSFT, BRCM and others was more than enough to 
spark a pre-weekend, post-earnings sell-off.  Adding to the list 
of why investors both big and small are hesitating to buy stocks 
was another record high for crude oil.  The December contract 
broke through the $55 level for the first time ever.  The markets 
were also caught off guard by a 20 percent, five-day rally in 
natural gas prices.  

The market internals are on Friday were very negative.  Losing 
stocks outnumbered advancers by 2-to-1 on both the NYSE and the 
NASDAQ.  Down volume overshadowed up volume by more than 2-to-1 
on the NYSE and by almost 4-to-1 on the NASDAQ.  The Dow 
Industrials sank to a new 11-month low while the S&P 500 closed 
back under the 1100 level.  This week has shown that for the most 
part the descending channel trading pattern is still very much in 
place for the major indices.

Jim brings up a good point regarding the bond market.  The ten-
year bonds are trading near five-month highs.  Bonds are normally 
seen as a "safety" play.  If money has been moving into bonds for 
the last few months that doesn't say much for the market's 
expectation on how stocks will perform.  

Looking ahead to next week investors will have to deal with four 
things. First will be economic data.  We have a number of 
economic reports out this week.  Wall Street will be curious to 
see what the Fed's Beige book will say and where the GDP number 
will fall.  The recent trend has been for the numbers to be 
positive but they will continue to show a slow down the rate of 
growth.

Second will be energy prices.  The rising price of crude doesn't 
have a direct affect on the market, except the airlines, and for 
the most part the Dow Transportation index has ignored the rise 
in oil.  However, rising oil means rising costs for both 
businesses and consumers.  

The third issue the markets will be digesting this week are more 
third quarter earnings.  Over 130 of the S&P 500 will be 
reporting and six Dow-components will release their numbers.  
Plus, there will be dozens and dozens of smaller companies 
releasing their Q3 results.  This week will also bring a number 
of earnings reports from the energy sector with AHC, APC, COP, 
CVX, HAL, MRO and XOM all reporting.

The fourth and probably biggest factor is of course the Nov. 2nd 
election.  The mud slinging will get dirtier.  The media buzz 
will reach a deafening tone and the polling data will hit a 
fevered pitch.  This alone and the fact that there is no clear 
winner could keep stocks flat to down this week.  The markets 
hate uncertainty but the biggest thing this election has 
generated has been just that - uncertainty.  Unfortunately, the 
threat of a terrorist event near or during the election still 
lingers in the air like a faint odor you can't get rid of. 

I'd like to say we only have one more week (7 trading days) to 
suffer through this election miasma.  Unfortunately, we have to 
consider the possibility that with the race this close and with 
both sides drumming up their army of lawyers to contest every 
twist and turn in the voting process we may not escape on 
November 3rd because we may not have a winner.  



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

Market Averages

DJIA ($INDU)

52-week High: 10753
52-week Low :  9497
Current     :  9757

Moving Averages:
(Simple)

 10-dma:  9935
 50-dma: 10113 
200-dma: 10271



S&P 500 ($SPX)

52-week High: 1163
52-week Low : 1018
Current     : 1095

Moving Averages:
(Simple)

 10-dma: 1118
 50-dma: 1109
200-dma: 1119



Nasdaq-100 ($NDX)

52-week High: 1559
52-week Low : 1301
Current     : 1438

Moving Averages:
(Simple)

 10-dma: 1442
 50-dma: 1407
200-dma: 1440



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

CBOE Market Volatility Index (VIX) = 15.39 +0.74
CBOE Mkt Volatility old VIX  (VXO) = 16.09 +1.10
Nasdaq Volatility Index (VXN)      = 21.36 +1.00 


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

          Put/Call Ratio  Call Volume   Put Volume

Total          0.74        721,848       536,881
Equity Only    0.67        549,506       365,979
OEX            0.37         47,568        17,872
QQQ            1.89         14,678        27,811


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

Bullish Percent Data

           Current   Change   Status
NYSE          62.7    - 0     Bear Correction
NASDAQ-100    47.0    - 2     Bull Alert      
Dow Indust.   50.0    - 0     Bear Confirmed
S&P 500       59.6    - 0.4   Bear Correction
S&P 100       58.0    - 1     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: 1.00
10-dma: 1.09
21-dma: 1.09
55-dma: 1.10


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     952       959
Decliners    1821      2001

New Highs      67        53
New Lows       33        42

Up Volume    522M      363M
Down Vol.   1202M     1345M

Total Vol.  1815M     1720M
M = millions


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

Commitments Of Traders Report: 10/19/04

Weekly COT report discloses positions held by small specs
and commercial traders of index futures contracts at the 
Chicago Mercantile Exchange and Chicago Board of Trade. COT data 
can be found at www.cftc.gov.

Small specs are the general trading public with commercials being 
financial institutions. Commercials are historically on the 
correct side of future trend changes while small specs tend 
to be wrong.  

S&P 500

Commercial traders continue to hedge their bets in the big
S&P contacts and are nearing a dead heat between longs and
shorts.  Small traders remain mostly net bullish but have
pared back their enthusiasm a bit.

Commercials   Long      Short      Net     % Of OI
09/28/04      404,773   434,441   (29,668)   (3.5%)
10/05/04      421,217   435,736   (14,519)   (1.7%)
10/12/04      423,472   436,780   (13,308)   (1.5%)
10/19/04      432,945   441,041   ( 8,096)   (0.1%)

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
09/28/04      135,317   107,173    28,144    11.6%
10/05/04      137,210   114,489    22,721     9.0%
10/12/04      139,175   113,903    25,272     9.9%
10/19/04      147,148   124,827    22,321     8.2%

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

We see a similar picture in the e-minis.  Commercial traders
aren't making any changes.  They remain net bearish and we
have the same reading as last week.  Meanwhile small traders
have slowly grown more net bullish, which of course is a
bearish contrarian indicator.

Commercials   Long      Short      Net     % Of OI 
09/28/04      226,020   420,714   (194,694)  (30.1%)
10/05/04      248,190   476,608   (228,418)  (31.5%)
10/12/04      258,457   517,805   (259,348)  (33.4%)
10/19/04      264,860   531,541   (266,681)  (33.4%)

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
09/28/04      262,501     68,255   194,246    58.7%
10/05/04      308,021     80,373   227,648    58.6%
10/12/04      309,720     62,502   247,218    66.4%
10/19/04      353,903     66,027   287,876    68.5%

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 trades have not moved much.  They remain net 
bullish on the NASDAQ 100.  Small traders upped both their
longs and shorts and reduced their bearish posture a tad but
remain strongly net bearish.

Commercials   Long      Short      Net     % of OI 
09/28/04       55,045     32,319    22,726   26.0%
10/05/04       55,640     32,872    22,768   25.7%
10/12/04       52,572     32,775    19,797   23.2%
10/19/04       52,630     31,940    20,690   24.4%

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

Small Traders  Long     Short      Net     % of OI
09/28/04       10,078    22,917   (12,839)  (38.9%)
10/05/04       12,254    30,693   (18,439)  (42.9%)
10/12/04        8,756    24,400   (15,644)  (47.2%)
10/19/04       10,462    25,243   (14,781)  (41.3%)

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 seem content to sit on the sidelines with
out any big directional bets on the Industrials.  Longs and
shorts have remain pretty close to one another for a few weeks
now.  That's not so with the small traders.  The latest data
shows a big drop in short positions and the bias has turned
bullish for the first time in weeks.


Commercials   Long      Short      Net     % of OI
09/28/04       29,714    26,877    2,837       5.0%
10/05/04       27,498    25,772    1,726       3.2%
10/12/04       24,150    22,849    1,301       2.7%
10/19/04       25,385    24,213    1,172       2.3%
 
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
09/28/04        5,143     5,988   (  845)   ( 7.6%)
10/05/04        5,531     5,539   (    8)   ( 0.0%)
10/12/04        8,814     9,167   (  353)   ( 1.9%)
10/19/04        8,327     6,015    2,312     16.1% 

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

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

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

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

United Industries - UIC - close: 31.09 change: -1.22

WHAT TO WATCH: We came very close to adding UIC to the play list 
this weekend as a new high risk-reward short play.  The stock has 
been a huge winner this year with a run from $18 to $36 since 
March.  Now the stock appears to be faltering and the recent drop 
is suggesting a trend change.  More importantly the P&F chart now 
shows a fresh sell signal with a $24 target.  Friday's trading 
painted a bearish engulfing candlestick and UIC closed under the 
simple 50-dma for the first time since May.  Everything seems to 
be pointing lower.  We can't find an earnings date but our 
research suggests UIC will announce Q3 results in the first week 
of November.




---

Elan Corp - ELN - close: 25.32 change: +1.12

WHAT TO WATCH: Irish drug-maker ELN is completely ignoring the 
sell-off in the drug sector.  While the DRG index is hitting new 
one-year lows shares of ELN are nearing new three-year highs.  
The stock has charged higher with Friday marking its sixth gain 
in a row.  A breakout over $26.00 would be pretty bullish and 
help confirm the new MACD buy signal.  We hesitate to play it 
because the stock looks short-term overbought and earnings are 
expected on Thursday, Oct. 28th. 




---

Ask Jeeves - ASKJ - close: 33.04 change: -3.91

WHAT TO WATCH: Ouch!  ASK gapped higher on the GOOG excitement 
and then crashed.  The stock has painted a huge bearish engulfing 
candlestick, which is normally interpreted as a one-day reversal 
pattern.  Considering how much "profit" there is in ASKJ's 40 
percent climb from the September lows the stock could easily 
sell-off the rest of this week.  Of course earnings are expected 
on Wednesday so trade carefully.  We would not hold over the 
report with either long or short positions.




---

Carlisle Cos - CSL - close: 58.35 change: -1.65 

WHAT TO WATCH: Investors did not respond well to CSL's earnings 
report on Oct. 20th. The company missed estimates by 1 cent and 
shares broke support at the $60 mark and its simple and 
exponential 200-dma's on above average volume.  The trend appears 
to have changed.  The peaks in July and October look like a 
double-top.  On a short-term basis the Friday breakdown could 
lead to a drop toward support near $55.00.  The newly bearish P&F 
chart now points to a $51 target.





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

IACI $19.18 -0.76 - Here's another Internet stock that's not 
getting any love.  IACI has been melting lower for the past few 
weeks and now it has broken round-number support at the $20 mark.  
Earnings are expected on Nov. 3rd.

JUPM $19.23 -2.51 - Here's another Internet stock that has 
produced a bearish engulfing candlestick at the top of its 
bullish trend.  Is this a reversal in progress?

SUP $26.94 -1.07 - SUP has been descending in a long-term channel 
for months (since February).  Now the stock is slipping lower 
through the bottom of its channel.


=================================================================
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=================================================================
DISCLAIMER
=================================================================

This newsletter is a publication dedicated to the education
of stock traders. The newsletter is an information service
only. The information provided herein is not to be construed
as an offer to buy or sell securities of any kind. The
newsletter picks are not to be considered a recommendation
of any stock but an information resource to aid the investor
in making an informed decision regarding trading in stocks. It
is possible at this or some subsequent date, the editors and
staff of PremierInvestor.net may own, buy or sell securities
presented. All investors should consult a qualified professional
before trading in any security. The information provided has
been obtained from sources deemed reliable but is not
guaranteed as to accuracy or completeness. PremierInvestor.net
staff makes every effort to provide timely information to its
subscribers but cannot guarantee specific delivery times due to
factors beyond our control.

Please read our disclaimer at:
http://www.optioninvestor.com/page/oin/aboutus/disclaimer.html

*****************************************************************
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For more information on advertising in PremierInvestor.net
Newsletter, or any Premier Investor Network newsletter please
contact Contact Support.

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

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







PremierInvestor.net Newsletter          Weekend Edition 10-24-2004
                                                    section 2 of 3
Copyright (c) 2004, All rights reserved.
Redistribution in any form is strictly prohibited.

The entire newsletter is best viewed in COURIER 10 for alignment
=================================================================

In section two:

Tech Stocks
  Bullish Play Updates:  OVTI, PLAB
  Bearish Play Updates:  NVLS, SWIR

Active Trader (Non-tech)
  New Bearish Plays:     BSX, AFG
  Bullish Play Updates:  BC, BG
  Bearish Play Updates:  TIF
  Closed Bearish Plays:  LSCP

High Risk/Reward
  Bearish Play Updates:  MLNM

Stock Splits
  Announcements:         None


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

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

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

OmniVision Tech - OVTI - close: 15.12 change: -0.50 stop: 13.99

Hang on to your seat belts.  It's time for OVTI to show some 
relative strength.  The SOX took a 3.3 percent dive on Friday after 
a number of semiconductor-related stocks issued lackluster earnings 
or issued warnings for the fourth quarter.  OVTI was not able to 
shrug off the sector downturn and lost 3.2 percent.  However, we 
will note that OVTI did manage to hold above round-number 
support/resistance at the $15 level.  More aggressive traders can 
prepare to enter on a dip. If OVTI does dip under the $15 level 
we'll be looking for a bounce in the $14.25-14.50 region.  Yet 
we're suggesting that more conservative traders only consider 
positions with the stock above the $15 mark.

Annotated Chart:

 

Picked on October 20 at $15.03
Gain since picked:      + 0.09
Earnings Date         11/17/04 (unconfirmed)
Average Daily Volume:      5.0 million 



---

Photronics - PLAB - close: 17.39 change: -0.36 stop: 16.25

PLAB is another example of a relatively strong semiconductor-
related stock getting caught in Friday's sell-off.  PLAB lost about 
2 percent on Friday but that was better than the SOX's 3.3 percent 
decline.  We are expecting shares to dip again on Monday but bulls 
can look for a bounce near $17.00, which is bolstered by its simple 
200-dma.  The rising trend of higher lows is still very much 
intact. 

Annotated Chart:

 

Picked on October 20 at $17.48
Gain since picked:      - 0.09
Earnings Date         08/18/04 (confirmed)
Average Daily Volume:      576 thousand




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


Novellus Systems - NVLS - close: 25.00 change: -0.58 stop: 26.26

Hmm... we are getting conflicting signals from NVLS.  Some of the 
oscillators are bearish, others look more bullish.  Overall the 
prevailing trend is down and its P&F chart points to a $19.00 
target.  Fortunately, Friday's action appears to have created a 
failed-rally at the $26.00 mark and its simple 40 and 50-dma's.  
Aggressive traders may want to consider new short positions now but 
we are suggesting that readers wait and see some confirmation of 
Friday's reversal.  Really conservative traders can wait for NVLS 
to trade back under the recent lows near $23.70.  Keep an eye on 
the SOX index.  The SOX just failed at the 410 level and its simple 
100-dma.  If the SOX continues to turn lower then NVLS is more 
likely to see some follow through. 

Annotated Chart:

 

Picked on October 17 at $24.22 
Gain since picked:      - 0.00
Earnings Date         10/13/04 (confirmed)
Average Daily Volume:      5.0 million 



---

Sierra Wireless - SWIR - close: 15.94 chg: -0.33 stop: 16.75*new*

SWIR is not cooperating.  Oh, the general trend is still down but 
the minor bounce from the $15 level is not what we need.  SWIR is 
just a few days away from the October 27th earnings report after 
the closing bell.  We do not want to hold over the report even if 
we suspect the results will be disappointing.  Therefore we need to 
plan on closing the play on Tuesday afternoon or if you're feeling 
more adventurous then close it on Wednesday afternoon ahead of the 
announcement.  We are not suggesting new bearish positions at this 
time.  We are going to lower our stop loss to $16.75.

Annotated Chart:

 

Picked on October 18 at $15.45
Gain since picked:      + 0.49
Earnings Date         10/27/04 (confirmed)
Average Daily Volume:      1.9 million 




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

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

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

Boston Scientific - BSX - close: 35.21 chg: -0.29 stop: 37.01

Company Description:
Boston Scientific is a worldwide developer, manufacturer and 
marketer of medical devices whose products are used in a broad 
range of interventional medical specialties.
(source: company press release)

Why We Like It:
BSX actually turned in a positive earnings report.  The company 
beat Wall Street estimates by 1 cent.  The company offered positive 
comments for its Taxus stent unit, which sent shares tumbling in 
July when BSX announced a recall.  Business looks pretty good so 
why are investors selling the stock?  Could it be normal post-
earnings "sell the news"? The answer is yes but BSX was struggling 
before the report with a series of lower highs.  So it's not like 
there was a big ramp higher before the report for there to be a big 
"sell the news" reaction.  What else could it be?  For one thing 
the entire medical device sector seems to be suffering.  Okay, that 
may be over simplification.  Rivals GDT and MDT aren't doing so bad 
with their stock price but more diverse medical device makers like 
ZMH and SYK don't look so hot.  If you step back and look at BSX's 
weekly chart you can see that the selling pressure and lower highs 
with lower lows has actually been an issue for the past few months.  
BSX has been a HUGE winner over the past few years trading from 
$6.50 back in late 2000 to over $45 this past year.  That's a lot 
of room for some profit taking during these uncertain times. 

We're going to speculate that BSX will continue to trade lower in 
spite of some of the positive analysts comments that have surfaced 
recently.  The initial oversold bounce has failed and BSX looks 
vulnerable toward the $31.50-32.00 region.  This will be our 
initial target.  Long-term the trend points to an even lower level.

Annotated chart:

 

Picked on October 24 at $35.21
Gain since picked:      - 0.00
Earnings Date         10/19/04 (confirmed)
Average Daily Volume:      5.6 million 



---

American Fincl Grp - AFG - close: 27.77 chg: -0.46 stop: 31.01

Company Description:
Through the operations of the Great American Insurance Group, AFG 
is engaged primarily in property and casualty insurance, focusing 
on specialized commercial products for businesses, and in the sale 
of retirement annuities, supplemental insurance and life products.
(source: company press release)

Why We Like It:
We have mentioned AFG before in our nightly watch list.  The stock 
has been trading in a tight range between $28.00 and $31.00 for the 
last several months (since March 2004).  That range narrowed to 
$29-31 for most of that time period.  When AFG broke down under the 
$29 mark and its exponential 200-dma on above average volume we 
were watching but we didn't want to jump in ahead of its earnings 
report.  Earnings are out of the way (10/21) and the initial 
investor reaction has been negative.  Yet we're not playing the 
earnings reaction.  Instead we're merely playing the range.  In 
reality AFG has not one trading range but two of them.  The 
breakdown under the $28.00 level is merely an entry point for us to 
play the larger, wider range.  If you look at a weekly chart you 
can probably see that AFG has been trading between $31.00 and 
$18.00 since October of 1999.  Thus far it has made the trip eight 
times.  Now we're not actually targeting the $18 level.  Long-term 
traders may want to go for it.  We'd be happy with a drop toward 
$24.  Once we see some follow through on this week's decline we'll 
lower our stop loss.

Annotated Chart:

 

Picked on October 24 at $27.77
Gain since picked:      - 0.00
Earnings Date         10/21/04 (confirmed)
Average Daily Volume:      193 thousand




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

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

Brunswick Corp - BC - close: 45.57 change: -1.05 stop: 44.64

Conservative traders, listen up!  We've given BC a week and the 
stock managed to climb towards the $47 level but failed to 
breakout.  The Dow's 108-point drop on Friday didn't help but BC 
turned in its own failed rally.  Now we only have a few days before 
BC reports its Q3 earnings on Thursday.  To make matters worse the 
short-term RSI oscillator looks bearish.  We'd probably suggest 
exiting this play now to reduce risk.  However, for the more 
aggressive trader we're going to leave the play open with our 
relatively tight stop at $44.64.  We'll re-evaluate an exit on 
Tuesday. 

Annotated Chart:

 

Picked on October 17 at $45.70 
Gain since picked:      - 0.13
Earnings Date         10/28/04 (confirmed)
Average Daily Volume:      717 thousand



---

Bunge Ltd - BG - close: 43.72 change: -0.16 stop: 41.75*new*

This is it.  BG only has a few days left to make its final pre-
earnings push higher.  The company is due to report Q3 results on 
Thursday before the bell.  Therefore we need to be out of this play 
on Wednesday afternoon before the close.  We are encouraged by how 
quickly traders stepped in and bought the dip on Wednesday to 
$41.75.  The P&F chart looks very strong with the follow through on 
its triple-top breakout buy signal.  The only issue on the P&F 
chart is the bullish price objective has already been achieved at 
the $44 level.  Of course these are not set in cement and P&F 
targets can be surpassed but they're a good guideline.  We are 
aiming for the $46 level but will exit on Wednesday afternoon at 
the close no matter what.  That's assuming we don't get stopped 
out.  We are raising our stop loss to $41.75. 

Annotated Chart:

 

Picked on October 17 at $41.96 
Gain since picked:      + 1.76
Earnings Date         10/28/04 (confirmed)
Average Daily Volume:      625 thousand



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

Tiffany & Co - TIF - close: 28.27 change: -0.07 stop: 30.51*new*

Think of TIF as a bearish momentum play.  The long-term and short-
term trend are both bearish as TIF continues to sink under a steady 
pattern of lower highs.  We've got almost three weeks before TIF is 
expected to report earnings and hopefully the stock can reach our 
target in the $25-24 region by then.  We are going to lower our 
stop loss to $30.51.  


Annotated Chart:

 


Picked on October 13 at $29.00
Gain since picked:      - 0.73
Earnings Date         11/11/04 (unconfirmed)
Average Daily Volume:      1.3 million 




============
CLOSED PLAYS
============

  --------------------
  Closed Bearish Plays
  --------------------

LaserScope - LSCP - close: 19.85 change: -0.01 stop: 21.01      

We give up!  After a month LSCP has gone nowhere.  The stock closed 
at $19.85, which is exactly where we started.  The six-week trend 
remains bearish with lower highs and lower lows but we're going to 
exit anyway.  LSCP is due to report earnings this week and we don't 
want any unexpected surprises.

Picked on September 22 at $19.85 
Gain since picked:        - 0.00
Earnings Date           07/28/04 (confirmed)
Average Daily Volume:        477 thousand




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


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

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

Millenium Pharma - MLNM - cls: 11.64 chg: -0.40 stop: 12.41*new*

This could be the week that we finally see MLNM trade lower.  The 
BTK biotech index has been down three out of the last four days and 
looks poised to trend lower, especially with biotech giant AMGN 
selling off.  Meanwhile the DRG drug index is hitting new one-year 
lows as investors flee the sector.  MLNM has been trending somewhat 
lower with a pattern of lower highs this past week.  Friday's 
rollover at the $12.10 mark looks very encouraging so we're going 
to lower our stop loss to $12.41.  Here's the plan going forward.  
MLNM is due to report earnings on Thursday morning before the 
opening bell.  That means we have to be out of MLNM on Wednesday 
afternoon before the close.  Therefore we are not suggesting new 
positions for anyone unless you feel comfortable jumping in and out 
of stocks in just a couple of days.

Annotated chart:

 

Picked on October 13 at $11.99 
Gain since picked:      - 0.35
Earnings Date         10/28/04 (unconfirmed)
Average Daily Volume:      2.7 million 




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

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

None



=================================================================
To stop receiving this PremierInvestor.net Newsletter,
send email to Contact Support
=================================================================
DISCLAIMER
=================================================================

This newsletter is a publication dedicated to the education
of stock traders. The newsletter is an information service
only. The information provided herein is not to be construed
as an offer to buy or sell securities of any kind. The
newsletter picks are not to be considered a recommendation
of any stock but an information resource to aid the investor
in making an informed decision regarding trading in stocks. It
is possible at this or some subsequent date, the editors and
staff of PremierInvestor.net may own, buy or sell securities
presented. All investors should consult a qualified professional
before trading in any security. The information provided has
been obtained from sources deemed reliable but is not
guaranteed as to accuracy or completeness. PremierInvestor.net
staff makes every effort to provide timely information to its
subscribers but cannot guarantee specific delivery times due to
factors beyond our control.

Please read our disclaimer at:
http://www.optioninvestor.com/page/oin/aboutus/disclaimer.html

*****************************************************************
ADVERTISING INFORMATION

For more information on advertising in PremierInvestor.net
Newsletter, or any Premier Investor Network newsletter please
contact Contact Support.

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

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





PremierInvestor.net Newsletter          Weekend Edition 10-24-2004
                                                    section 3 of 3
Copyright (c) 2004, All rights reserved.
Redistribution in any form is strictly prohibited.

The entire newsletter is best viewed in COURIER 10 for alignment
=================================================================

In section three:

Market Watch for Week of October 25th, 2004
   - Major Earnings
   - Stock Splits
   - Economic Reports

Trading Ideas
  Value Plays With Bullish Signals
  Breakout to Upside (Stocks $5 to $20)
  Breakout to Upside (Stocks over $20)
  Breakout to Downside (Stocks over $20)
  Recently Overbought With Bearish Signals (Stocks over $20)


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

=========================================
Market Watch for the week of October 11th
=========================================

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

Symbol  Co               Date           Comment          EPS Est

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

ACEC Ace Comm             Mon, Oct 25  After the market     n/a
AFCI Advanced Fibre Com.  Mon, Oct 25  After the market     0.02
AFC  Allmerica Financial  Mon, Oct 25  After the market    -0.23
AMX  America Movil S.A.   Mon, Oct 25  After the market     0.65
AXP  American Express     Mon, Oct 25  After the market     0.69
ASH  Ashland              Mon, Oct 25  Before the bell      1.62
ADP  Automatic Data Proc. Mon, Oct 25  Before the bell      0.33
BOH  Bank of Hawaii       Mon, Oct 25  ----- n/a -----      0.74
BLS  BellSouth Corp       Mon, Oct 25  Before the bell      0.51
BWA  BorgWarner Inc       Mon, Oct 25  Before the bell      0.75
CEGE Cell Genesys         Mon, Oct 25  Before the bell     -0.53
CRS  Carpenter Tech.      Mon, Oct 25  Before the bell      0.53
CNC  Centene Corp         Mon, Oct 25  After the market     0.51
CNF  CNF Inc.             Mon, Oct 25  Before the bell      0.77
CCBI Commercial Cap. Ban  Mon, Oct 25  ----- n/a -----      0.31
CBU  Community Bank       Mon, Oct 25  Before the bell      0.43
EXBD Corp. Executive Brd  Mon, Oct 25  After the market     0.37
CSGS CSG Systems Inc.     Mon, Oct 25  After the market     0.21
EDS  Electronic Data Sys  Mon, Oct 25  After the market     0.08
EC   Engelhard Corp       Mon, Oct 25  Before the bell      0.46
FLEX Flextronics          Mon, Oct 25  After the market     0.17
GNSS Genesis Microchip    Mon, Oct 25  After the market     0.04
HMY  Harmony Gold Mining  Mon, Oct 25  During the market   -0.14
HTLF Heartland Financial  Mon, Oct 25  Before the bell      0.26
HLT  Hilton Hotels        Mon, Oct 25  Before the bell      0.13
INSP InfoSpace            Mon, Oct 25  After the market     0.25
ISSX Internet Security    Mon, Oct 25  After the market     0.16
K    Kellogg Co.          Mon, Oct 25  Before the bell      0.55
KMB  Kimberly Clark       Mon, Oct 25  Before the bell      0.90
LAB  LaBranche & Co Inc.  Mon, Oct 25  Before the bell      0.02
MDCI Medical Action Ind.  Mon, Oct 25  Before the bell      0.24
MTH  Meritage             Mon, Oct 25  After the market     2.20
MOBE Mobility Electronics Mon, Oct 25  ----- n/a -----      0.01
NWRE Neoware System       Mon, Oct 25  After the market     0.09
OVNT Overnight Corp       Mon, Oct 25  After the market     0.77
PBI  Pitney Bowes Inc.    Mon, Oct 25  After the market     0.63
PCL  Plum Creek Timber    Mon, Oct 25  After the market     0.33
PPD  PrePaid Legal        Mon, Oct 25  After the market     n/a
PHM  Pulte Homes Inc.     Mon, Oct 25  After the market     2.00
DGX  Quest Diagnostics    Mon, Oct 25  Before the bell      1.27
RAI  Reynolds American    Mon, Oct 25  ----- n/a -----      1.53
R    Ryder System, Inc.   Mon, Oct 25  Before the bell      0.79
SLAB Silicon Labs         Mon, Oct 25  After the market     0.36
SII  Smith Intl Inc.      Mon, Oct 25  Before the bell      0.51
TIN  Temple-Inland Inc.   Mon, Oct 25  After the market     1.15
UNTD United Online Inc.   Mon, Oct 25  Before the bell      0.25
VISG Viisage Technology   Mon, Oct 25  After the market     0.00
WLP  Wellpoint Hlth Ntwk  Mon, Oct 25  After the market     1.91
WDC  Western Digital      Mon, Oct 25  After the market     0.11
ZMH  Zimmer Holdings Inc. Mon, Oct 25  After the market     0.53


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

ABGX Abgenix              Tue, Oct 26  After the market    -0.52
ACE  ACE Limited          Tue, Oct 26  After the market     0.00
ATVI Activision           Tue, Oct 26  After the market     0.09
AFL  AFLAC Inc            Tue, Oct 26  After the market     0.57
AW   Allied Waste Ind.    Tue, Oct 26  ----- n/a -----      0.14
AMH  AmerUs Group Co.     Tue, Oct 26  After the market     1.03
AMSG AmSurg               Tue, Oct 26  After the market     0.29
ABI  Applied Biosystems   Tue, Oct 26  Before the bell      0.17
ATML Atmel Corp           Tue, Oct 26  After the market    -0.02
AV   Avaya                Tue, Oct 26  After the market     0.18
AVID Avid Technology Inc. Tue, Oct 26  After the market     0.52
BN   Banta Corp           Tue, Oct 26  After the market     0.75
ABX  Barrick Gold         Tue, Oct 26  ----- n/a -----      0.04
BSTE Biosite Inc.         Tue, Oct 26  After the market     0.54
BBOX Black Box Network    Tue, Oct 26  After the market     0.60
BLUE Blue Martini Softw.  Tue, Oct 26  After the market     n/a
NILE Blue Nile Inc.       Tue, Oct 26  After the market     0.07
BYD  Boyd Gaming          Tue, Oct 26  After the market     0.37
BTI  British Amer. Tobac. Tue, Oct 26  During the market    n/a
BMHC Building Materials   Tue, Oct 26  Before the bell      0.95
BNI  Burlington Northern  Tue, Oct 26  Before the bell      0.75
CP   Canadian Pacific     Tue, Oct 26  Before the bell      0.50
CECO Career Education     Tue, Oct 26  After the market     0.39
CRA  Celera Genomics      Tue, Oct 26  Before the bell     -0.30
CTX  Centex Corp          Tue, Oct 26  After the market     1.59
CKP  Checkpoint Systems   Tue, Oct 26  Before the bell      0.28
CME  Chicago Merc Exchge  Tue, Oct 26  Before the bell      1.67
CB   Chubb Corp.          Tue, Oct 26  After the market     1.63
COH  Coach Inc.           Tue, Oct 26  Before the bell      0.33
CTSH Cognizant Tech.      Tue, Oct 26  ----- n/a -----      0.18
CFB  Commercial Federal   Tue, Oct 26  Before the bell      0.50
CVTX CV Therapeutics      Tue, Oct 26  After the market    -1.18
XRAY DENTSPLY Intl Inc.   Tue, Oct 26  After the market     0.55
RDY  Dr. Reddy's Lab      Tue, Oct 26  ----- n/a -----      n/a
DSCM Drugstore.com        Tue, Oct 26  After the market    -0.06
DD   DuPont               Tue, Oct 26  Before the bell      0.24
EPIQ EPIQ Systems         Tue, Oct 26  After the market     0.28
FFIV F5 Networks          Tue, Oct 26  After the market     0.21
FMC  FMC Corp.            Tue, Oct 26  After the market     0.81
FDP  Fresh Del Monte      Tue, Oct 26  Before the bell      0.08
FBR  Friedman Billings    Tue, Oct 26  Before the bell      0.56
GISX Global Imaging Sys.  Tue, Oct 26  Before the bell      0.58
GTRC Guitar Center        Tue, Oct 26  ----- n/a -----      0.42
HAL  Halliburton Co       Tue, Oct 26  Before the bell      0.36
HSIC Henry Schein         Tue, Oct 26  Before the bell      0.70
ICST Integrated Circuit   Tue, Oct 26  Before the bell      0.23
IP   Intl Paper Co.       Tue, Oct 26  Before the bell      0.45
JCI  Johnson Controls     Tue, Oct 26  Before the bell      1.32
KIM  Kimco Realty Corp    Tue, Oct 26  Before the bell      0.88
LLL  L-3 Comm. Holdings   Tue, Oct 26  Before the bell      0.88
LPNT LifePoint Hospitals  Tue, Oct 26  After the market     0.46
LMT  Lockheed Martin      Tue, Oct 26  Before the bell      0.65
FLSH M-Systems Flash      Tue, Oct 26  Before the bell      0.15
MSTR MicroStrategy Inc.   Tue, Oct 26  After the market     0.51
MUR  Murphy Oil Corp.     Tue, Oct 26  After the market     1.05
ORLY O'Reilly Automotive  Tue, Oct 26  After the market     0.60
OMC  Omnicom Group        Tue, Oct 26  Before the bell      0.75
OVRL Overland Storage     Tue, Oct 26  Before the bell      0.06
PENN Penn National Gaming Tue, Oct 26  Before the bell      0.57
PNR  Pentair Inc.         Tue, Oct 26  Before the bell      0.32
RGC  Regal Entertainment  Tue, Oct 26  Before the bell      0.24
RCII Rent-A-Center        Tue, Oct 26  ----- n/a -----      0.47
RFMD RF Micro Devices Inc Tue, Oct 26  After the market    -0.02
SLE  Sara Lee             Tue, Oct 26  Before the bell      0.43
SEPR Sepracor             Tue, Oct 26  Before the bell     -1.04
SINA Sina Corp            Tue, Oct 26  After the market     0.28
SSCC Smurfit-Stone        Tue, Oct 26  Before the bell      0.13
SAH  Sonic Automotive     Tue, Oct 26  Before the bell      0.53
SBL  Symbol Technologies  Tue, Oct 26  After the market     0.11
TLAB Tellabs              Tue, Oct 26  Before the bell      0.12
RIG  Transocean Inc.      Tue, Oct 26  Before the bell      0.05
TRI  Triad Hospitals      Tue, Oct 26  After the market     0.54
TRMB Trimble Navigation   Tue, Oct 26  ----- n/a -----      0.24
X    United States Steel  Tue, Oct 26  Before the bell      2.05
UTSI UTStarcom            Tue, Oct 26  After the market     0.03
VLO  Valero Energy        Tue, Oct 26  ----- n/a -----      1.54
VSEA Varian Semiconductor Tue, Oct 26  After the market     0.62
VRTS VERITAS Software     Tue, Oct 26  After the market     0.21
BER  W.R.Berkley          Tue, Oct 26  After the market     1.01
WAT  Waters Corp.         Tue, Oct 26  Before the bell      0.42
WBSN Websense             Tue, Oct 26  After the market     0.26
WWY  WM Wrigley Jr. Co.   Tue, Oct 26  ----- n/a -----      0.55


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

APD  Air Products Chem.   Wed, Oct 27  Before the bell      0.73
AAI  AirTran Holdings     Wed, Oct 27  ----- n/a -----     -0.07
AKAM Akamai Technologies  Wed, Oct 27  After the market     0.09
AHC  Amerada Hess Corp.   Wed, Oct 27  Before the bell      2.13
AWA  America West Hldg    Wed, Oct 27  Before the bell     -0.63
BUD  Anheuser-Busch Cos.  Wed, Oct 27  ----- n/a -----      0.85
ATH  Anthem Inc.          Wed, Oct 27  Before the bell      1.65
APPB Applebee's Intl      Wed, Oct 27  After the market     0.34
AGY  Argosy Gaming        Wed, Oct 27  Before the bell      0.64
ARBA Ariba                Wed, Oct 27  After the market    -0.06
ASKJ Ask Jeeves           Wed, Oct 27  After the market     0.25
RATE Bankrate, Inc.       Wed, Oct 27  Before the bell      0.14
BGFV Big 5 Sporting Goods Wed, Oct 27  After the market     0.36
BIIB Biogen IDEC Inc.     Wed, Oct 27  After the market     0.35
BDK  Black & Decker       Wed, Oct 27  Before the bell      1.32
BBI  Blockbuster Inc.     Wed, Oct 27  Before the bell      0.12
BOW  Bowater Inc.         Wed, Oct 27  Before the bell     -0.05
CBT  Cabot                Wed, Oct 27  After the market     0.51
CNI  Canadian Ntl Railway Wed, Oct 27  Before the bell      0.84
CMCSA Comcast Corp        Wed, Oct 27  ----- n/a -----      0.11
COP  ConocoPhillips       Wed, Oct 27  Before the bell      2.58
COX  Cox Communications   Wed, Oct 27  Before the bell      0.13
CCI  Crown Castle Intl    Wed, Oct 27  ----- n/a -----     -0.18
ECA  EnCana Corp          Wed, Oct 27  Before the bell      1.01
EOG  EOG Resources        Wed, Oct 27  ----- n/a -----      1.02
FLR  Fluor Corp           Wed, Oct 27  After the market     0.57
FBN  Furniture Brands     Wed, Oct 27  After the market     0.36
ROCK Gibraltar            Wed, Oct 27  After the market     0.79
HAR  Harman Intl Indu.    Wed, Oct 27  ----- n/a -----      0.41
IMDC Inamed               Wed, Oct 27  After the market     0.45
IRF  Intl Rectifier       Wed, Oct 27  After the market     0.52
ISIS Isis Pharmaceuticals Wed, Oct 27  ----- n/a -----     -0.43
JDSU JDS Uniphase         Wed, Oct 27  After the market    -0.01
JNY  Jones Apparel Group  Wed, Oct 27  Before the bell      0.77
KMG  Kerr-McGee           Wed, Oct 27  Before the bell      0.94
LNY  Landry's Resturants  Wed, Oct 27  Before the bell      0.74
LF   LeapFrog Enterprises Wed, Oct 27  ----- n/a -----      0.32
LVLT Level 3 Comm.        Wed, Oct 27  ----- n/a -----     -0.28
LSI  LSI Logic            Wed, Oct 27  After the market    -0.05
MMC  Marsh & McLennan     Wed, Oct 27  Before the bell      0.70
MET  MetLife Inc.         Wed, Oct 27  After the market     0.79
NEM  Newmont Mining Corp. Wed, Oct 27  Before the bell      0.26
NXTP Nextel Partners      Wed, Oct 27  Before the bell      0.11
NOC  Northrop Grumman     Wed, Oct 27  ----- n/a -----      0.77
POG  Patina Oil & Gas     Wed, Oct 27  ----- n/a -----      0.51
PEET Peet's Coffee & Tea  Wed, Oct 27  After the market     0.12
PHTN Photon Dynamics      Wed, Oct 27  After the market     0.18
PDG  Placer Dome          Wed, Oct 27  After the market     0.11
PYX  Playtex Products     Wed, Oct 27  After the market     0.03
PG   Procter & Gamble     Wed, Oct 27  Before the bell      0.72
REM  Remington Oil & Gas  Wed, Oct 27  Before the bell      0.53
RNR  RenaissanceRe Hldg   Wed, Oct 27  After the market    -3.69
ROH  Rohm and Haas Co     Wed, Oct 27  Before the bell      0.53
SEE  Sealed Air           Wed, Oct 27  ----- n/a -----      0.67
SIRI Sirius Satellite     Wed, Oct 27  ----- n/a -----     -0.12
SPF  Standard Pacific     Wed, Oct 27  After the market     2.02
SRCL Stericycle           Wed, Oct 27  After the market     0.46
SRDX SuModics Inc         Wed, Oct 27  After the market     0.21
BA   The Boeing Co        Wed, Oct 27  Before the bell      0.40
THQI THQ Inc              Wed, Oct 27  After the market    -0.20
UL   Unilever PLC         Wed, Oct 27  During the market    0.77
VAR  Varian Medical Sys   Wed, Oct 27  After the market     0.35
VMC  Vulcan Materials     Wed, Oct 27  After the market     0.98
WDFC WD-40 Company        Wed, Oct 27  After the market     0.55
ZBRA Zebra Technologies   Wed, Oct 27  ----- n/a -----      0.42

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

SE   7-Eleven             Thr, Oct 28  Before the bell      0.34
RKY  Adolph Coors Co.     Thr, Oct 28  Before the bell      1.76
AET  Aetna Inc.           Thr, Oct 28  Before the bell      1.73
ACV  Alberto-Culver       Thr, Oct 28  Before the bell      0.58
ALA  Alcatel              Thr, Oct 28  Before the bell      0.12
ATK  Alliant TechSystems  Thr, Oct 28  Before the bell      0.71
AXL  Amer. Axle & Mfg     Thr, Oct 28  Before the bell      0.68
APCC American Power Conv. Thr, Oct 28  After the market     0.17
AOC  Aon Corp.            Thr, Oct 28  After the market     0.49
AZPN Aspen Technology     Thr, Oct 28  After the market    -0.03
AN   AutoNation           Thr, Oct 28  Before the bell      0.34
BLL  Ball Corp.           Thr, Oct 28  Before the bell      0.80
BDY  Bradley Pharma.      Thr, Oct 28  Before the bell      0.21
BC   Brunswick Corp       Thr, Oct 28  Before the bell      0.64
BG   Bunge Ltd            Thr, Oct 28  Before the bell      0.82
CCMP Cabot Microelectr.   Thr, Oct 28  Before the bell      0.48
CATT Catapult Comm.       Thr, Oct 28  After the market     0.22
CHRT Chartered Semicondtr Thr, Oct 28  After the market     0.03
CSK  Chesapeake           Thr, Oct 28  Before the bell      0.34
CCE  Coca-Cola Enterprise Thr, Oct 28  Before the bell      0.38
CSTR Coinstar Inc         Thr, Oct 28  After the market     0.29
COLM Columbia Sportswear  Thr, Oct 28  After the market     1.64
CAM  Cooper Cameron       Thr, Oct 28  After the market     0.53
CSX  CSX                  Thr, Oct 28  Before the bell      0.52
DCX  DaimlerChrysler      Thr, Oct 28  Before the bell      0.68
DLX  Deluxe Corp          Thr, Oct 28  Before the bell      n/a
DCLK DoubleClick          Thr, Oct 28  After the market     0.03
EMN  Eastman Chemical Co  Thr, Oct 28  After the market     0.70
XOM  ExxonMobil           Thr, Oct 28  ----- n/a -----      0.88
GTW  Gateway Inc.         Thr, Oct 28  ----- n/a -----     -0.07
GP   Georgia-Pacific      Thr, Oct 28  Before the bell      0.84
GSK  GlaxoSmithKline      Thr, Oct 28  Before the bell      0.72
GES  Guess                Thr, Oct 28  After the market     0.24
IKN  Ikon Office Solution Thr, Oct 28  Before the bell      0.16
IMCL ImClone Systems      Thr, Oct 28  ----- n/a -----      0.33
IM   Ingram Micro         Thr, Oct 28  After the market     0.18
IFF  Intl Flavor Frgrance Thr, Oct 28  ----- n/a -----      0.62
IVGN Invitrogen Corp      Thr, Oct 28  After the market     0.75
JBLU JetBlue Airways      Thr, Oct 28  Before the bell      0.10
KSU  Kansas City Southern Thr, Oct 28  Before the bell      0.14
KG   King Pharmaceuticals Thr, Oct 28  Before the bell      0.22
KYO  Kyocera Corp         Thr, Oct 28  ----- n/a -----      n/a
LTR  Loews Corp.          Thr, Oct 28  Before the bell      0.83
MSO  Martha Stewart Liv.  Thr, Oct 28  Before the bell     -0.47
MVL  Marvel Enterprises   Thr, Oct 28  ----- n/a -----      0.22
MLNM Millennium Pharma.   Thr, Oct 28  Before the bell     -0.23
MYL  Mylan Labs           Thr, Oct 28  Before the bell      0.26
NWL  Newell Rubbermaid    Thr, Oct 28  Before the bell      0.33
PNRA Panera Bread         Thr, Oct 28  Before the bell      0.28
PRX  Par Pharmaceutical   Thr, Oct 28  Before the bell      0.46
PD   Phelps Dodge         Thr, Oct 28  Before the bell      2.71
PDS  Precision Drilling   Thr, Oct 28  Before the bell      0.53
ROP  Roper Industries     Thr, Oct 28  After the market     0.72
SANM Sanmina-SCI Corp.    Thr, Oct 28  ----- n/a -----      0.09
SOHU Sohu.com             Thr, Oct 28  After the market     0.04
SNE  Sony Corp            Thr, Oct 28  ----- n/a -----      n/a
DOW  The Dow Chemical Co  Thr, Oct 28  Before the bell      0.62
G    The Gillette Co      Thr, Oct 28  Before the bell      0.43
SMG  The Scotts Co        Thr, Oct 28  Before the bell      0.02
TRB  Tribune              Thr, Oct 28  Before the bell      0.50
VZ   Verizon              Thr, Oct 28  ----- n/a -----      0.64
WMI  Waste Management     Thr, Oct 28  Before the bell      0.41


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

APC  Anadarko Petroleum   Fri, Oct 29  Before the bell      1.67
AU   Anglogold Ashanti    Fri, Oct 29  ----- n/a -----      0.14
AVP  Avon Products        Fri, Oct 29  Before the bell      0.34
CVX  ChevronTexaco        Fri, Oct 29  Before the bell      1.37
CEG  Constellation Energy Fri, Oct 29  Before the bell      1.15
FRNT Frontier Airlines    Fri, Oct 29  ----- n/a -----     -0.14
HC   Hanover Compressor   Fri, Oct 29  Before the bell     -0.08
NOI  National Oilwell     Fri, Oct 29  Before the bell      0.32
NSANY Nissan Motors       Fri, Oct 29  Before the bell      n/a
DCM  NTT DoCoMo           Fri, Oct 29  ----- n/a -----      n/a
WON  Westwood One         Fri, Oct 29  ----- n/a -----      0.29


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

Symbol  Company Name              Ratio    Payable     Executable

CELG    Celgene Corp              2:1      Oct 22nd    Oct 25th
PDCO    Patterson Companies       2:1      Oct 22nd    Oct 25th
PFSB    PennFed Financial         2:1      Oct 29th    Nov 01st
ROCK    Gibraltar                 3:2      Oct 29th    Nov 01st
PNY     Piedmont Natural Gas      2:1      Oct 29th    Nov 01st
ASGR    America Service Group     3:2      Oct 29th    Nov 01st
VIDE    Video Display Corp        2:1      Oct 31st    Nov 01st
BGG     Briggs & Stratton         2:1      Nov  9th    Nov 10th
DVN     Devon Energy              2:1      Nov 15th    Nov 16th
NFB     North Fork Banc           3:2      Nov 15th    Nov 16th
FBNC    First Bancorp             3:2      Nov 15th    Nov 16th


-----------------------------------
Economic Reports & Events This Week
-----------------------------------
Q3 earnings will continue to take center stage with another huge
week of announcements.  Yet it will be the upcoming Nov. 2nd 
election that will dominate the news.  There is economic data
out every day this week but the big reports will be the Fed's
Biege book, the GDP, ECI and PMI.


==============================================================
                       -For-           
----------------
Monday, 10/25/04
----------------
Existing Home Sales for September  Last: 6.54M  Est: 6.54M

-----------------
Tuesday, 10/26/04
-----------------
Consumer Confidence for October    Last: 96.8   Est: 93.8


-------------------
Wednesday, 10/27/04
-------------------
The Fed's Biege Book report
Durable Goods for September        Last: -0.3%  Est: +0.5%
New Home Sales for September       Last: 1,184K Est: 1,150K

------------------
Thursday, 10/28/04
------------------
Initial Jobless Claims             Last: 329K   Est: 335K
Help Wanted Index for September 

----------------
Friday, 10/29/04
----------------
GDP for the third quarter          Last: +3.3%  Est: +4.3%
Employment Cost Index (ECI) for Q3 Last: +0.9%  Est: +1.0%
Chain deflator for third quarter   Last: +3.2%  Est: +1.6%
Michigan Sentiment for October     Last: 87.5   Est: 88.0
Chicago PMI for October            Last: 61.3   Est: 59.0



Definitions:
DM=  During the Market
BB=  Before the bell the Bell
AB=  After the market the Bell
NA=  Not Available


======================================================
  Trading Ideas
======================================================

This section contains stocks that meet criteria which may make
them of interest to long and short side traders.  These are not
recommendations, nor have they been reviewed by PremierInvestor
editors for investment potential.  However, each of them has
technical and fundamental characteristics that make them worthy
of further review by traders and investors looking for fresh ideas.
New stocks will appear daily following the market close.

Value Plays With Bullish Signals
---------------------------------
Ticker  Company Name               Close     Change

COP     ConocoPhillips             84.80     +1.07
FPL     FPL Group Inc              68.71     +0.91
MHS     Medco Health               33.17     +1.39
AEE     Ameren Corp                47.01     +0.84
PPL     PPL Corp                   50.95     +1.10
KMG     Kerr-Mcgee                 58.96     +1.07

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

FDRY    Foundry Networks           11.88     +1.10
KAR     Adesa Inc                  18.00     +1.70
XXIA    Ixia                       10.96     +1.74
TRDO    Intrado Inc                13.00     +1.20

---------------------------------------
Breakout to Upside (Stocks over $20)
---------------------------------------
  
GOOG    Google                    172.43    +23.05
TXU     TXU Corp                   52.81     +2.53
INFY    Infosys Technologies       65.82     +2.25
XMSR    XM Satellite Radio         32.07     +1.13
BTU     Peabody Energy             65.77     +2.45
FBP     First Bancorp              50.51     +1.26
EWBC    East West Bancorp          37.99     +1.07

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

AIG     American Intl Group        54.70     -1.75
ERICY   LM Ericsson Telephone      28.41     -3.24
BLS     Bellsouth Corp             26.55     -1.26
GILD    Gilead Sciences            33.25     -3.43
AMZN    Amazon.com                 34.60     -4.87
S       Sears Roebuck              32.52     -1.22
BRCM    Broadcom                   26.41     -4.06
CELG    Celgene Corp               56.12     -2.10
CBH     Commerce Bancorp           56.50     -3.10

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

YELL    Yellow Roadway             45.20     -2.67
WBSN    Websense Inc               39.70     -5.39

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