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Daily Newsletter, Thursday, 10/28/2004

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PremierInvestor.net Newsletter                 Thursday 10-28-2004
                                                    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:       Tape Painting Eases
Watch List:        Plenty of Tech
Market Sentiment:  Three More Trading Days

=================================================================
MARKET WRAP  (view in courier font for table alignment)
=================================================================
      10-28-2004           High     Low     Volume   Adv/Dcl
DJIA    10004.54 +  2.50 10044.95  9952.48 2.04 bln 1632/1555
NASDAQ   1975.74 +  5.80  1980.36  1959.57 1.81 bln 1514/1544
S&P 100   539.48 +  1.70   541.16   535.67   Totals 3146/3099
S&P 500  1127.44 +  2.04  1130.67  1120.57 
W5000   11049.24 + 13.39 11077.04 10981.23
SOX       412.36 +  1.50   415.91   408.86
RUS 2000  585.63 -  1.55   587.19   581.72
DJ TRANS 3484.45 +  9.30  3484.45  3440.22
VIX        15.39 -  0.33    16.05    15.36
VXO (VIX-O)15.46 -  0.67    16.64    15.37
VXN        21.25 -  0.27    21.87    20.88 
Total Volume 4,217M
Total UpVol  2,385M
Total DnVol  1,774M
Total Adv  3608
Total Dcl  3532
52wk Highs  347
52wk Lows    92
TRIN       0.98
NAZTRIN    0.72
PUT/CALL   0.68
=================================================================

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

Tape Painting Eases
by Jim Brown

Mutual fund tape painting eased on Thursday despite a
drop in oil and a strong IPO market. Volume remained
high but at 4.2B shares it fell short of the 4.75B 
shares traded on Wednesday. That number was a multi-
month high. 

Wilshire Chart

 
Dow Chart

 
Nasdaq Chart

 

Economic news was light and failed to impress traders
but it also failed to dim any outlook. The Jobless 
Claims jumped to 350,000 once again and continue to
confuse analysts expecting them to fall as we enter
the holiday season. Estimates had been for only 338K
and inline with the low summer averages. The only 
guess from the Labor Department was lingering impact
from the hurricanes. 

In conjunction with the rising Jobless Claims the
Help Wanted Index fell back to its cycle low at 36 
and has declined in eight of nine U.S. regions over
the last three months. Only the Pacific region has
remained stable at 31 and well below the average. The
headline number reached a cycle high of 40 in February
but that was well below the pre-recession reading of
90. This is an index of newspaper advertising and the
growth in Internet job searching has depressed this
expensive medium. However the cycles still remain
valid although numbers may never return to prior highs.
This suggests hiring is still weak and the economy is
not gaining speed. 

A surprise quarter point (+0.27% to be exact) rate 
hike by China knocked oil and commodities for a loss
today on fears that China would actually slow down. 
Oil fell to close at $50.92 and well below the $55.65
all time high just yesterday. China oil imports have 
grown +61% since last year and a slowing of that demand
was seen to be a relief for oil prices. Steel and copper
prices as well as stocks dealing in those commodities 
also fell. 

This was great for the market today but I seriously
doubt it is going to last. Several analysts suggested
this was a token rate hike made as a thank you gift
to the U.S. for Colin Powell's comments yesterday.
He said Taiwan was NOT a separate country. This was
a major policy comment that lends credibility to 
China's attempt to control the Taiwan discussion.
This was the first rate hike in nine years and it
will not have any material impact. It was also seen
as an effort to move ahead of the U.S. rate hike due
Nov-10th to be seen as a leader not a follower.

China cannot afford to slow down from its current 
+9% growth rate. Every month two million rural Chinese
flee the poverty of the vast countryside and move to 
the cities in search of work and a better life. If 
China fails to provide infrastructure, housing and 
jobs for these migrants then social decay, civil 
unrest and crime will soar. The +61% increase in oil
imports over the last year is only the leading edge
of a tidal wave of oil that will be needed to continue
the growth. Upgrading just the coastal 1/3 of China to
the economic level of Korea would increase China's oil
imports from the current six million bbls per day to 
nearly 20 mil bpd. This would be another +233% increase
in imports of oil and continue huge increases in hard
commodities. 20 mil Bpd is nearly double the output of
Saudi Arabia today. Will it happen? Absolutely, only 
the timing is unknown. Over the last year their raw 
iron imports have jumped +21% and processed steel +11%.
They already consume a large portion of our building 
material output for things like plywood, sheetrock and
insulation. Should the market be worried about a quarter
point rate hike in China and the potential for their 
economy slowing? Not in my opinion!  

Oil fell below $51 and the markets did not rally. What
happened to the connection between oil and equities?
I believe that the connection has been broken for 
quite a while and the talking heads on TV have been
trying to keep it alive. A trader only needs to look
at the transports currently at a five year high with 
oil over $50 to see this disconnect. Sure we got a 
reaction bounce on Wednesday with the first break in
oil prices but the equity bounce was related more to
year end tape painting by mutual funds than the drop
in oil.

The October tape painting is a historically recognized
event. Mutual funds shuffle their portfolios over the
first three weeks of October to eliminate the losers
before their October year end. Once the losers are
dumped they pour huge amounts of money into the stocks
they are keeping over the last week of the month to 
produce the most positive picture possible for their 
year end statements. 

Historically this has produced a significant jump in
the indexes over the last week of October. It also
helps that the dumping of losers in early October
pushes those same indexes to significant support
levels that make a good launch point for the end of
month tape painting. Over the last ten years the last
week of October has shown gains ten out of ten times
even in 2001 and during the bear market. 

Ten Year Table of October Last Week Gains 

 


Today is the 75th anniversary of the Black Tuesday
market crash in 1929. Over two days the Dow lost -24%
and it took a very long time to recover that loss. I
doubt that had anything to do with today's performance
but I am sure more than one money manager did a quick
fact check to assure himself that conditions were not
building to another similar event in the near future.

At present the only major event the markets will be
watching is the election next Tuesday. The current
surveys continue to predict a dead heat and that 
should work to slow any further market advances. The
electoral count shows 191 hard for Bush and 149 for 
Kerry with 270 needed to win. 36 votes are leaning
to Bush and 58 are leaning to Kerry. 104 votes are
currently considered a toss up. Using the current 
statewide surveys to predict the results Bush would 
have 220 votes to Kerry's 207 with FL, OH and PA the
68 votes that would swing the election. The bottom 
line is the election is still too close to call and
the lack of a clear leader should keep any market 
gains over the next two days to a minimum. 

For the Dow we have seen a +300 point jump in three
days from the 9708 low on Monday. The Dow closed at
10004 today and to put it in simple terms the easy
points have already been captured. Moving over 10100
and 10200 is probably going to have to wait until after
the election. The Dow has made a very nice sprint and
it was especially nice after the three weeks of losses
but it is showing signs of being winded. Today saw a
bounce to near 10050 before consolidation began to 
appear. Market makers, fund managers or both managed
to close the Dow at just over 10000 for the second 
consecutive day and I believe it represents the level
they want to hold tomorrow and the last day of their
accounting year. 

The Nasdaq also managed to consolidate its gains and
move slightly higher to 1974 and hold over its 200dma
at 1957. The early October resistance highs were just
over 1970 and today's close eclipsed those levels. The
Nasdaq managed to close at four-month highs and even 
if it was only by a couple points traders should be
excited. You can see the Saturday papers now, "Nasdaq
at Four Month Highs as Bull Market Returns." Of course
that means they have to hold the line on Friday. 

The SOX is also at a three month high just over 410 and
it is clear that funds shifted some of their money into
chip stocks despite the general bad news from the sector.
You have to buy stocks when nobody else wants them to
be successful long term and they did exactly that in
October. The SOX is up +5% for the week. 

The Russell has also rallied off its October lows and
is nearing all time resistance at 600. Resistance at
587 has slowed the advance for the last two days but
the lack of any selling suggests a new sprint ahead.
A move over 600 should produce a stampede.  

The Wilshire-5000 closed at 11042 and barely 100 points
away from the June and October resistance high at 11164.
A breakout here along with a break over 600 on the 
Russell would be bull heaven. 

Earnings are nearly over with 377 of the S&P-500 already
reported. Current earnings have averaged +15.5% with
revenue up +11.1%. This compares to earnings of better
than 25% in each of the prior two quarters. It is also
better than some of the dire estimates of +13-14% to as
low as +10.8% over the last month. According to Thompson
Financial the final number will be in the +16.4% range
based on current company guidance from those companies
not yet reported. It also assumes no major misses. 63%
of companies have beaten the mostly lowered estimates,
20% have missed estimates and 16% have reported inline. 

The slowing of the earnings flow and the current hard
estimates leaves little to excite the market from the
earnings standpoint. Now that we are at month end the
economics will increase sharply and Friday is the first
major reporting schedule in this cycle. We will see the
GDP, Employment Cost Index, NAPM, PMI and Consumer 
Sentiment. You can bet the numbers will immediately be
turned into campaign fodder and hurled vehemently from
side to side. This does have the potential to upset
the current market consolidation we saw today. I would
look for traders to be cautious but funds have a vested
interest in maintaining Dow 10,000 so selling could be
contained. I would be careful going long ahead of next
Wednesday because Monday could turn into a day of
window undressing after the fund year end and ahead 
of the election. A legal battle over the election 
results could also poison market sentiment. Patience
is the key here. We have endured many months of being
bombarded with campaign mudslinging and the finish line
is just ahead. These last three trading days should pass
quickly. 

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

QLogic Corp - QLGC - close: 32.18 change: +0.71

WHAT TO WATCH: We came very close to adding QLGC to the play list 
tonight.  The stock has broke through resistance at the $32.00 
and broken through technical resistance at its simple 200-dma and 
the exponential 200-dma.  Technical oscillators are bullish and 
its MACD has recently reversed into a new buy signal.  The P&F 
chart is bullish with a long-term $53 price target. 




---

Cypress Semiconductor - CY - close: 10.59 change: +0.72

WHAT TO WATCH: The SOX managed to close over its simple 100-dma 
for a 2 1/2 month high but it was a lot less impressive than CY's 
7.2 percent rally.  CY broke through round-number resistance at 
the $10.00 mark on more than double its average volume.  This is 
a very bullish move.  Traders can choose to watch for a dip back 
toward $10.00-10.25 and buy a bounce or look for a move over the 
100-dma.




---

FormFactor - FORM - close: 22.89 change: +1.19

WHAT TO WATCH: FORM is a semiconductor stock that has been stuck 
in a trading range for almost a year.  Today's move over 
resistance at $22.85 is a significant breakout.  Momentum traders 
may want to consider positions if FORM can push past the $23 
mark.  Otherwise we'd probably wait and watch for a bounce from 
the $21 level (maybe $22).  The stock does look more than a 
little overbought from its August lows so watch those stops.




---

Juniper Networks - JNPR - close: 26.31 change: +0.49

WHAT TO WATCH: We had JNPR on the watch list last night for a 
breakout over resistance at $26.00.  Now it's happened.  This 
looks like a bullish entry point for a run to the $30 level.  
Yes, there appears to be some resistance near $28 but if the 
market does produce a post-election rally we don't expect the $28 
level to slow JNPR down.  Today's rally has produced a new buy 
signal on its P&F chart with a $37 target.





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

Three More Trading Days
- J. Brown

Hang on folks we're almost to the finish line.  I am talking 
about the Nov. 2nd election.  With the election this close 
investors could be dipping their toe in the water and placing 
some early bets to beat the crowd on any post-election rally.  Of 
course there is a strong chance that the election numbers will be 
so close the final result will be tied up in recounts and 
lawsuits.  This is a potential negative for the markets that 
would like to see this whole election-circus end.  Remember, the 
stock market hates uncertainty and the margin between Bush and 
Kerry seems to be slimming. 

I think the markets did pretty well holding on to their gains 
from the previous two sessions.  There was definitely some profit 
taking in oil and energy stocks but crude oil fell for its third 
session in a row closing under $51 a barrel for the first time in 
three weeks. 

A lot of the chatter today was on commodity related stocks due to 
a surprise rate hike from China.  The Chinese has been trying to 
slow down their economy before it overheats.  This was the first 
rate hike in nine years.  There was an immediate concern that if 
China slows down too much it will drag on the U.S. and the rest 
of the global economy.  

Speaking of economics Friday will bring a raft of economic 
reports.  First and foremost will be the Q3 GDP numbers.  
Economists are currently looking for +4.0 to +4.3 percent growth 
rate compared to a +3.3 percent rate last quarter.  As we near 
the holiday shopping season Wall Street will also be watching the 
University of Michigan Consumer sentiment numbers.  The current 
estimate is for a reading of 88 compared to the last reading at 
87.5.  We'll also get the Employment Cost Index (ECI), the NAPM 
number, and the Purchasing Managers Index (PMI). 

Tomorrow could be a toss up.  I know.  I'm really sticking my 
neck out here but it wouldn't surprise me to see the market go 
either way.  Friday is the last day for many mutual funds' year-
end window dressing.  That probably means that the current 
"winners" could see another last push higher.  Plus, as I 
suggested earlier there could be investors out there buying now 
to get in front of any post-election rally.  Yet on the other 
hand there is so much confusion, uncertainty and indecision on 
who might win the election we could trade sideways for the next 
three days.  If I had a third hand I'd suggest that we might see 
more defensive moves and profit taking.  There is still a 
possibility of a terrorist event near or on election day. Plus, 
the cloud of not having a clear winner is a big negative. 

Overall I think investors would like to be bullish and with the 
election coming to an end soon and oil prices dropping.  Normally 
news that another airline had filed for bankruptcy would be a big 
story but the media seems to have already forgotten.  Of course 
that's easy to do with the election next Tuesday.  Yet another 
sentiment indicator that investors are turning bullish again has 
been the recent attraction and excitement over the IPO market 
again.  



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

Market Averages

DJIA ($INDU)

52-week High: 10753
52-week Low :  9497
Current     : 10004

Moving Averages:
(Simple)

 10-dma:  9894
 50-dma: 10109 
200-dma: 10260



S&P 500 ($SPX)

52-week High: 1163
52-week Low : 1018
Current     : 1127

Moving Averages:
(Simple)

 10-dma: 1109
 50-dma: 1114
200-dma: 1119



Nasdaq-100 ($NDX)

52-week High: 1559
52-week Low : 1301
Current     : 1487

Moving Averages:
(Simple)

 10-dma: 1453
 50-dma: 1417
200-dma: 1438



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

CBOE Market Volatility Index (VIX) = 15.39 -0.33
CBOE Mkt Volatility old VIX  (VXO) = 15.48 -0.67
Nasdaq Volatility Index (VXN)      = 21.25 -0.27 


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

          Put/Call Ratio  Call Volume   Put Volume

Total          0.68        827,548       560,128
Equity Only    0.55        654,090       359,641
OEX            0.55         32,153        17,726
QQQ            1.40         30,292        42,577


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

Bullish Percent Data

           Current   Change   Status
NYSE          63.7    + 0.8   Bear Correction
NASDAQ-100    51.0    + 2     Bull Alert      
Dow Indust.   50.0    - 0     Bear Confirmed
S&P 500       61.4    + 1.2   Bear Correction
S&P 100       60.0    + 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: 0.96
10-dma: 0.94
21-dma: 1.00
55-dma: 1.05


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    1408      1456
Decliners    1379      1523

New Highs     195       152
New Lows       22        31

Up Volume   1126M     1052M
Down Vol.    929M      733M

Total Vol.  2073M     1810M
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


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DISCLAIMER
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Do not duplicate or redistribute in any form.







PremierInvestor.net Newsletter                 Thursday 10-28-2004
                                                    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: AFG  

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

AFG - non-tech short -
  Uh-oh!  Insurance stock AFG has taken off and reversed course
  on us.  The recent bounce from under $28 to $29 was understandable
  because the IUX insurance index was rebounding on a possible 
  settlement with NY Attorney General Spitzer.  Yet until today shares
  of AFG remained under their exponential 200-dma.   Today's rally of 
  more than 3 percent is a concern.  There was no news to account for
  the move and shares of AFG have pushed back above the simple 
  200-dma.  Technicals have turned bullish on us and volume has been
  strong on the rebound.  We are not suggesting any new plays.  If
  AFG trades over $30 we may close the play early.


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

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

AIG     American Intl Group        61.20     +1.18
MO      Altria Group               48.69     +0.66
TGT     Target Corp                50.00     +0.55
MFC     Manulife Financial         45.59     +0.59
UN      Unilever N.V.              58.91     +0.99
GS      Goldman Sachs              97.42     +1.32

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

ANDW    Andrew Corp                13.91     +1.21
MVL     Marvel Enterprises         15.32     +1.42
ARBA    Ariba Inc                  13.32     +2.25
CVTX    CV Therepeutics            15.97     +1.22
KOMG    Komag Inc                  16.06     +1.90
ITMN    Intermune Inc              12.61     +1.09

---------------------------------------
Breakout to Upside (Stocks over $20)
---------------------------------------
  
GOOG    Google                    193.30     +7.33
CAJ     Canon Inc (ADR)            49.86     +1.46
AAPL    Apple Computer             52.19     +1.89
BEN     Franklin Resources         60.74     +1.49
WWY     William Wrigley Jr Co      65.09     +1.08
MCO     Moody's Corp               78.00     +1.22
CCE     Coca-Cola Enterprises      20.67     +1.78

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

JCP     J.C.Penney                 35.35     -2.01
AHC     Amerada Hess               79.22     -4.63
FCX     Freeport Mcmoran           35.05     -2.05
CTL     Centurytel Inc             31.40     -2.46
ZBRA    Zebra Technologies         53.24     -1.34
IMCL    ImClone Systems            45.95     -5.25
TSG     Sabre Holdings             21.10     -2.96
OCR     Omnicare Inc               27.50     -2.63
CBT     Cabot Corp                 33.35     -3.94

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

IMO     Imperial Oil Ltd           56.97     -1.21
DVN     Devon Energy               73.13     -2.39
BR      Burlington Resources       40.65     -1.41
APC     Anadarko Petroleum         67.54     -1.06
APA     Apache Corp                50.01     -1.76
DO      Diamond Offshore           33.00     -1.70
BTU     Peabody Energy             62.45     -2.68
OSG     Overseas Shipholding       54.10     -2.39


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