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Daily Newsletter, Tuesday, 11/09/2004

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PremierInvestor.net Newsletter                  Tuesday 11-09-2004
                                                    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:       Tension Mounting
Watch List:        A few Big Caps
Market Sentiment:  Fed Waiting

=================================================================
MARKET WRAP  (view in courier font for table alignment)
=================================================================
      11-09-2004           High     Low     Volume   Adv/Dcl
DJIA    10386.37 -  4.90 10427.81 10368.59 1.83 bln 1812/1409
NASDAQ   2043.33 +  4.10  2049.77  2034.41 1.76 bln 1740/1372
S&P 100   556.90 -  0.40   559.45   556.06   Totals 3552/2781
S&P 500  1164.08 -  0.81  1168.97  1162.48 
SOX       415.80 -  2.80   419.52   413.79
RUS 2000  606.64 +  4.56   607.00   601.27
DJ TRANS 3587.71 +  5.70  3599.37  3576.59
VIX        13.61 -  0.19    13.96    12.89
VXO (VIX-O)13.64 -  0.28    14.18    13.49
VXN        19.19 -  0.03    19.50    18.84 
Total Volume 3,895M
Total UpVol  1,854M
Total DnVol  1,958M

Total Adv  4023
Total Dcl  3189
52wk Highs  449
52wk Lows    63
TRIN       1.10
NAZTRIN    1.46
PUT/CALL   0.68
=================================================================

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

Tension Mounting
by Jim Brown

After three days of trading at the highs but seeing no
forward motion there are quite a few traders beginning 
to worry that the bounce is failing. The Dow continues
to spike over 10400 but cannot seem to hold the high
ground. The SPX has posted three lower highs on its
attempts to break 1168. Is this a breakout waiting to
happen or a breakdown in progress?

Dow Chart

 
Nasdaq Chart

 

Economically there were no reports to add to the high
excitement from Friday's Jobs Report. The Job Opening
and Labor Turnover Survey (JOLTS) showed no real change
in hiring. However this report covered the September
time frame and was trumped by the later period Jobs
Report for October. However, because this jobs data 
comes from a different survey the lack of confirmation
from JOLTS does cause some concern. This less positive
picture showed an increase in separations that were not
matched by increased hiring trends. 

The Richmond Fed Manufacturing Survey showed a slowing
of manufacturing in the region to the slowest pace 
since July. At 14 the headline number still indicates
growth but well below the 22 posted in September. The
order backlog was -5 and only a minuscule improvement
from the -6 in September. New orders at +3 fell from
+8 to move very close to negative as well. Shipments
fell to a three month low at 14 from a six month high
of 22 in September. However, the six month outlook 
jumped to 35 from 21. Amazing that all the production
indicators can fall substantially but the outlook was
raised. There was no hiring in the region and the avg
workweek fell. 

Wholesale Trade rose less than expected at +0.5% and
well below the +0.9% from last month. Inventories also
rose +0.5% and less than the +1.1% in August. This was
the first time in five months that inventory expansion
failed to keep pace with sales. Inventory to sales
remains at 1.15 as it has for the last four months. 
The inventory component fell but is not expected to 
be a drag on GDP until 2005. There seems to be a 
common theme in the various reports that 2005 could
be an economic challenge. 

While the economics were mixed to weak most investors
were not focused on the boring reports. If anything 
they were focused on the FOMC meeting tomorrow and
the lack of a breakout after such a great post election
start. There is a 100% chance of a 25-point rate hike
that will bump the rate to 2.0%. The outlook statement
is more of a key than the rate hike unless they bump
it up +50 points. Because of the strong jobs report 
there is some concern the Fed could raise the stakes
with their statement or even vote for a 50 point hike
tomorrow. Almost nobody expects more than 25 points
but there is always the fear. The next meeting is on
Dec-14th and there is an 81% chance of another hike
to 2.25% at that meeting. There are two meetings in
Q1-2005, Feb-1st and Mar-22nd. There is nearly a 100%
chance of a hike in February and a 25% chance of a 
hike in March. If jobs remain strong that could put 
us back to 2.75% in March. Almost everyone expects
the hikes to quit in 2.50-3.00% range and all eyes
will be on the statement to see if this expectation
has changed. 

The fear of the Fed in light of the blowout jobs report
has put the bulls back in the corral. The major indexes
all screeched to a stop at critical resistance and have
failed to continue the monster bounce. In all fairness
they have failed to sell off as well but worry is 
beginning to weigh on the indexes. 

SPX Chart – Daily

 
SPX Chart – Weekly

 

The most visible is the SPX which finally broke the
50% bear market retracement level at 1161. Unfortunately
it came to a dead stop immediately after it crossed that
level. Beginning on Friday the SPX has now tried three
times to break through 1170 to no avail. There have
been two lower highs below 1170 but 1162.50 has held
as solid support. Considering the very strong gains
and the critical levels reached this is a very good
sign. 1172-1176 was the resistance high for all of
2002 and this is very strong resistance. When taken
together the 1160-1175 range is the highly visible
line in the sand that must be crossed for the rally
to continue and both sides know it. This would be the
key level to predict a failure if a failure was in the
cards. 

The Dow is facing a much smaller battle at 10400-10420
and compared to the last two months of Dow declines the
Dow is doing a very good job of holding the high ground.
The Dow has run nearly +700 points since the 9708 lows
back on Oct-25th. +700 points in nine trading days is
a very strong run that leads to very overbought 
conditions. Those conditions appear to have led to a
consolidation in place instead of a profit taking dip.

The Nasdaq is facing a task similar to the Dow at 2050.
This is the resistance high from late April and June
and while decent resistance it is not as critical as
the SPX is currently facing. The Nasdaq is actually 
showing more of an uptrend over the last three days
than the Dow/SPX. The Nasdaq is not being supported
by the SOX with that index hovering in a flat line 
around 415 and not showing any indications of moving
higher. No uptrend help there but 410 is strong
support that should keep the Nasdaq from imploding. 

SOX Chart

 
Russell Chart

 

The Nasdaq is gaining significant uptrend support from
the Russell. The Russell closed at an all time high
today at 606.64. This is above the 2000 bull market 
highs and should be a clear sign the rally is still
alive. This high was only a quarter of a point over
the prior record so it is not a resounding breakout.
Still it is a clear sign mutual funds are moving into 
the market while we wait on the Fed. 

TrimTabs.com said today that $2.4 billion came into 
U.S. equity funds for the first week in November. $1B
flowed into global funds and a whopping $3.6 billion
was added to exchange traded funds. The +$7B in new
cash helped produce our post election rally and we
are still seeing new cash flows hitting the small 
caps. At least it was today.

After the bell Cisco reported earnings inline with
estimates at +0.21 cents and said inventory problems
were beginning to ease. This should have been good
news but Cisco's outlook was less than exciting and
revenue was slightly lighter than expected. Orders
trailed shipments and Cisco said competition was
growing. They said revenues would increase only +1% 
to +3% over last quarter but that was below current
analyst estimates. Cisco only managed to report 
inline with estimates due to better than expected
cost savings and continuing stock buybacks. Cisco
said there was a growing impact by low cost Asian
competitors. Despite the cautious comments and outlook
Cisco still generated $1.5B in cash for the quarter
and raised their cash account to $17.7 billion. That
is nearly -$2 billion lower than last quarter due to
the aggressive share buy back program. Margins are
continuing to fall as a result of more sales in the
lower priced products. The company cut orders to 
suppliers for Q4 by -$106 million because of their
reduced outlook. Cisco also announced they were 
increasing their current share buyback program by
$10 billion. They must really expect Q4 to be a strong
challenge and need to drop the outstanding shares by
a bunch. Most analysts and probably most investors
would rather see them spend $10 billion on acquisitions
that would grow them out of their rut. 

The current earnings cycle is nearly over with Dell
and HPQ the only two major techs left to report. Dell
reports on Thursday and HPQ reports next Tuesday. The
running total for the 90% of the S&P that have reported
is +15.1% earnings growth and +11.9% revenue growth.
It the remaining 10% of the S&P reports inline the
total for the quarter will be +16.7% earnings growth.

Crude Oil Chart

 


The Cisco earnings tonight tanked the futures but the
dip was brief. They rebounded after Cisco said revenue
could rise slightly and it appeared to be a case of
expectations being worse than even the lukewarm results.
This suggests we could have yet another mixed session
at the open as we await the Fed statement at 2:15. Oil
prices have imploded with a $47.17 print overnight and 
a nearly -$2 drop intraday. The falling oil prices 
should be helping equities but stocks could not break
out of their range today. With Cisco behind us and the
Fed almost a footnote we could see the bids begin to 
pick up again. 

I remain bullish on the market but fully aware we could
see profit taking at any time. However, the last two
days would have been prime opportunities for sellers
to appear and they were conspicuously absent. I still
advocate buying the dips and should a breakout over
SPX 1170 appear I would not hesitate to go long there
as well. The official target for the year-end is SPX
1250 but what happens if we get there early is still
a guess. Mutual funds are very worried but it is not
about the weak dollar, oil prices, trade deficit or 
rising interest rates. They are worried they will miss
the rally and get beaten by somebody else in the great
returns race. We are facing true performance anxiety
and I believe that will provide the eventual end of 
year rally. I believe it is a breakout waiting to 
happen and funds will not allow us to breakdown. So 
far this year most funds are just barely positive and
they need to collectively juice the tape to produce 
gains everyone can feel good about advertising. 

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

Microsoft Corp - MSFT - close: 29.77 change: +0.49

WHAT TO WATCH: One-day sales of close to $100 million for its new 
Halo 2 X-box game and news of its special cash dividend in 
December are driving MSFT higher.  The stock has major resistance 
at the $30.00 mark and a breakout would be very bullish.  If you 
prefer to buy a dip watch for a dip (and bounce) from the $29.00 
level.   The bullish P&F chart currently points to a $44 target.  
If we held MSFT through the end of this year our target would 
probably be the $34-35 range. 




---

General Electric - GE - close: 35.42 change: +0.30 

WHAT TO WATCH: GE is another big cap on the move.  In the past 
couple of weeks GE has broken through its 200-week moving average 
and price resistance in the $34.50-35.00 range.  Now shares have 
very little resistance between here and the $40.00-41.50 region.  
Even so we would still watch for a dip.  If GE can dip to the 
$34.50-34.75 area we'd buy the bounce and consider hanging on 
through the end of the year.  




---

Texas Instruments - TXN - close: 24.75 change: +0.01 

WHAT TO WATCH: Semiconductor stocks have been consolidating 
sideways lately and TXN has been following the crowd.  Actually 
shares of TXN have been challenging resistance at the $25.00 
level and its simple 200-dma for the past several days.  The 
stock looks like it's coiling for a bullish breakout.  Aggressive 
traders may want to go long over $25.00.  Conservative traders 
also need to watch out for resistance near $26.00 with its 200-
week moving average.  If TXN can pass $26 it could be able to run 
toward $30.00 or higher.




---

Williams Cos - WMB - close: 13.57 change: +0.20

WHAT TO WATCH: Natural gas stock WMB continues to rally despite a 
four-day decline in natural gas prices.  The bullish breakout 
over resistance at $13.00 for WMB looks like a momentum trader's 
entry point.  Volume has been rising on the rally and that's a 
good sign for the bulls.  Patient traders can probably wait for a 
dip back toward $13.00-13.15.  The bullish P&F chart points to a 
$24 (long-term) target.   We would target resistance at $15.00.





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

FRO $53.70 +0.70 - We mentioned FRO on Monday's watch list.  The 
stock is still creeping higher but not yet over resistance at 
$54.00. 

CEC $40.00 +0.71 - This looks like an entry point for the bulls.  
The P&F chart points to $55.  We would target $44-45.

CAMD $9.24 +0.46 - For the second day in a row CAMD has risen 
strongly on big volume.  This time shares broke through the $9.00 
level and its exponential 200-dma.

CRM $19.53 -0.87 - Salesforce.com has pulled back to its simple 
21-dma.  The stock has bounced from this technical support twice 
in the past couple of months and could do so again.  

DELL $37.43 -0.25 - DELL still looks bullish with the breakout 
over resistance at $37.00 but earnings are coming up on Nov. 
11th.


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

Fed Waiting
- J. Brown

Given the previous week's gains it's no surprise to see stocks 
pause ahead of Wednesday's FOMC meeting on interest rates.  
Stocks got a chance to rest while investors wait for what is 
widely expected to be a 25 basis-point increase in interest rates 
to 2 percent.  Despite the two-day stall in the bull run I would 
still look for a short-term dip before we move higher into any 
fourth quarter rally.  The short-term sentiment indicators like 
the ARMS index or TRIN's moving averages remain in near bearish 
reversal levels as do the volatility indices.  

Fortunately, the longer-term bullish percent data that turned 
positive late last week remains positive today.  The feeling on 
the street seems to be pretty positive especially for the fourth 
quarter.  One analyst commented that the street had pushed back 
most of its worries into the summer of 2005.  

Looking ahead to tomorrow I don't expect a lot of trading ahead 
of the FOMC meeting and its decision on rates that normally hits 
early afternoon.  Of course it's unclear how Wall Street will 
interpret the news that both Attorney General John Ashcroft and 
Commerce Secretary Don Evans both resigned from the President's 
cabinet, especially since the rumor mill had been expecting some 
resignations. Odds are this won't have much of an affect on 
stocks but the Cisco earnings news will.  

CSCO reported earnings that were in-line with analysts' estimates 
at 21 cents a share but the company missed the revenue and gross 
margin estimates.  This is likely to have a negative affect on 
tech stocks, especially the networkers unless it looks like 
Nortel and Juniper are somehow taking market share.  Considering 
the market's need to see some consolidation it may be a good 
thing that CSCO effectively "missed".  There are a lot of 
investors waiting for a dip and CSCO's earnings could be the 
spark to ignite a decent round of profit taking. 



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

Market Averages

DJIA ($INDU)

52-week High: 10753
52-week Low :  9585
Current     : 10386

Moving Averages:
(Simple)

 10-dma: 10174
 50-dma: 10124 
200-dma: 10245 



S&P 500 ($SPX)

52-week High: 1170
52-week Low : 1031
Current     : 1164

Moving Averages:
(Simple)

 10-dma: 1144
 50-dma: 1122
200-dma: 1119



Nasdaq-100 ($NDX)

52-week High: 1559
52-week Low : 1301
Current     : 1527

Moving Averages:
(Simple)

 10-dma: 1503
 50-dma: 1438
200-dma: 1437



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

CBOE Market Volatility Index (VIX) = 13.61 -0.19
CBOE Mkt Volatility old VIX  (VXO) = 13.64 -0.28
Nasdaq Volatility Index (VXN)      = 19.19 -0.03 


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

          Put/Call Ratio  Call Volume   Put Volume

Total          0.68        878,274       596,088
Equity Only    0.53        756,787       401,731
OEX            1.18         24,943        29,628
QQQ            1.56         17,762        27,821


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

Bullish Percent Data

           Current   Change   Status
NYSE          68.5    + 0.5   Bear Correction
NASDAQ-100    63.0    + 1     Bull Confirmed
Dow Indust.   60.0    + 0     Bear Correction
S&P 500       69.2    + 0.8   Bull Confirmed
S&P 100       69.0    + 0     Bull Confirmed


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

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


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

 5-dma: 0.86
10-dma: 0.83
21-dma: 0.97
55-dma: 1.04


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    1589      1690
Decliners    1220      1324

New Highs     167       123
New Lows       11        21

Up Volume    987M      784M
Down Vol.    810M      882M

Total Vol.  1821M     1700M
M = millions


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

Commitments Of Traders Report: 11/02/04

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

Considering the fact that the latest data was taken as of
election day, Nov. 2nd, it's no surprise to see both 
commercials and small traders hedging their bets.  The 
next round of data should be more informative. 

Commercials   Long      Short      Net     % Of OI
10/12/04      423,472   436,780   (13,308)   (1.5%)
10/19/04      432,945   441,041   ( 8,096)   (0.9%)
10/26/04      441,263   445,992   ( 4,729)   (0.4%)
11/02/04      446,192   441,676   ( 4,516)   (0.4%)

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
10/12/04      139,175   113,903    25,272     9.9%
10/19/04      147,148   124,827    22,321     8.2%
10/26/04      138,201   121,275    16,926     6.5%
11/02/04      136,290   132,040     4,250     1.5%

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

E-mini traders are not as humble as the larger S&P futures
traders.  Commercials remain bearish and small traders 
have pushed their bullish bias to new multi-week levels. 
Just remember, this data is post-election. 

Commercials   Long      Short      Net     % Of OI 
10/12/04      258,457   517,805   (259,348)  (33.4%)
10/19/04      264,860   531,541   (266,681)  (33.4%)
10/26/04      276,128   509,552   (233,424)  (29.7%)
11/02/04      307,053   580,081   (273,028)  (30.7%)

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
10/12/04      309,720     62,502   247,218    66.4%
10/19/04      353,903     66,027   287,876    68.5%
10/26/04      345,908     64,061   281,847    68.7%
11/02/04      395,029     63,746   331,283    72.2%

Most bearish reading of the year: (77,385)  - 09/02/03
Most bullish reading of the year: 449,310   - 06/10/03


NASDAQ-100

Just as small traders pushed their bullish S&P bias to multi-
week extremes; they've done the opposite on the NDX with a 
new multi-week bearish extreme and a new low for the year.

Commercials   Long      Short      Net     % of OI 
10/12/04       52,572     32,775    19,797   23.2%
10/19/04       52,630     31,940    20,690   24.4%
10/26/04       53,233     31,323    21,910   26.2%
11/02/04       53,002     31,231    21,771   25.0%

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
10/12/04        8,756    24,400   (15,644)  (47.2%)
10/19/04       10,462    25,243   (14,781)  (41.3%)
10/26/04       10,521    25,388   (14,867)  (42.8%)
11/02/04        8,886    36,621   (27,735)  (61.3%)

Most bearish reading of the year: (27,735) - 11/02/04
Most bullish reading of the year:  19,088  - 01/21/02

DOW JONES INDUSTRIAL

Neither commercials nor small traders seem willing to place
any big bets but both are somewhat bullish on the Industrials.

Commercials   Long      Short      Net     % of OI
10/12/04       24,150    22,849    1,301       2.7%
10/19/04       25,385    24,213    1,172       2.3%
10/26/04       25,707    24,855      852       1.6%
11/02/04       25,319    24,261    1,058       2.0%
 
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
10/12/04        8,814     9,167   (  353)   ( 1.9%)
10/19/04        8,327     6,015    2,312     16.1% 
10/26/04        8,405     6,336    2,069     14.3%
11/02/04        7,952     6,306    1,261      8.8%

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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The Premier Investor Network.
Do not duplicate or redistribute in any form.







PremierInvestor.net Newsletter                  Tuesday 11-09-2004
                                                    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: None

Stock Splits
  Announcements:       CNC, CAKE

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

None


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

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

CNC declares a 2-for-1 stock split

Right at the closing bell today the Centene Corp. (NYSE:CNC) 
announced that its Board of Directors had approved a 2-for-1 stock 
split.

The split will take effect as a 100 percent stock dividend.  This 
dividend will be distributed on December 17th, 2004 to 
shareholders on record as of November 24th.  Post-split CNC will 
have approximately 41.2 million shares outstanding. 



About the company:
Centene Corporation provides multi-line managed care programs and 
related services to individuals receiving benefits under Medicaid, 
including Supplemental Security Income (SSI) and the State 
Children's Health Insurance Program (SCHIP). The Company operates 
health plans in Indiana, New Jersey, Ohio, Texas and Wisconsin. In 
addition, the Company contracts with other healthcare 
organizations to provide specialty services including behavioral 
health, nurse triage and treatment compliance. (source: company 
press release)
--

CAKE cooks up a 3-for-2 stock split

This afternoon after the market's closing bell the Cheesecake 
Factory (NASDAQ:CAKE) announced that its Board of Directors had 
approved a 3-for-2 stock split.  The split will take place as a 50 
percent stock dividend.

This dividend is payable on December 8th, 2004 to shareholders on 
record as of November 23rd.  

About the company:
The Cheesecake Factory Incorporated operates 86 upscale, casual 
dining restaurants under The Cheesecake Factory® name that offer 
an extensive menu of more than 200 items with an average check of 
approximately $16.09. The Company also operates a bakery 
production facility that produces over 50 varieties of quality 
cheesecakes and other baked products for the Company's restaurants 
and for other leading foodservice operators, retailers and 
distributors. Additionally, the Company operates four upscale 
casual dining restaurants under the Grand Lux Cafe® name in Los 
Angeles, Chicago, Las Vegas and Dallas; one self-service, limited 
menu "express" foodservice operation under The Cheesecake Factory 
Express® mark inside the DisneyQuest® family entertainment center 
in Orlando, Florida; and licenses three bakery cafe outlets to 
another foodservice operator under The Cheesecake Factory Bakery 
Cafe® name. (source: company press release)

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

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

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

BUD     Anheuser-Busch Cos         51.07     +0.81
CHA     China Telecom              34.53     +0.86
COF     Capital One Financial      77.75     +0.70
CAH     Cardinal Health            50.29     +1.28
DE      Deere & Co                 67.85     +3.10
DGX     Quest Diagnostic           91.26     +1.16

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

MWY     Midway Games               11.63     +1.13
IDCC    Interdigital Community     17.00     +1.04
AGEN    Antigenics Inc              9.18     +1.19
NFLD    Northfield Labs            17.24     +1.74
ECST    Ecost.com                  15.24     +1.62
IMR     Imco Recycling             13.05     +1.17

---------------------------------------
Breakout to Upside (Stocks over $20)
---------------------------------------
  
ATH     Anthem Inc                 91.23     +4.73
WHR     Whirlpool corp             63.77     +1.76
TOL     Toll Brothers Inc          50.63     +1.48
NRG     NRG Energy                 31.10     +1.80
RKY     Adolph Coors               71.27     +2.07
BZH     Beazer Homes              120.67     +4.68
MYG     Maytag Corp                20.27     +1.74

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

APA     Apache Corp                48.37     -1.10
AHC     Amerada Hess               76.63     -2.15
HSP     Hospira Inc                30.97     -1.83
LAMR    Lamar Advertising          41.17     -1.14
FOSL    Fossil Inc                 27.76     -3.63
SCHS    School Specialty Inc       37.11     -5.29
UNS     Unisource Energy           23.40     -1.16

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

PETM    Petsmart Inc               32.63     -0.50
PSUN    Pacific Sunwear            23.18     -0.72

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