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Daily Newsletter, Tuesday, 11/16/2004

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PremierInvestor.net Newsletter                  Tuesday 11-16-2004
                                                    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:       Finally, A Pause To Reload
Watch List:        Medical supplies to semiconductors
Market Sentiment:  No Surprises

=================================================================
MARKET WRAP  (view in courier font for table alignment)
=================================================================
      11-16-2004           High     Low     Volume   Adv/Dcl
DJIA    10487.65 - 62.60 10549.79 10477.95 1.73 bln 1243/1999
NASDAQ   2078.62 - 15.50  2087.30  2073.35 1.91 bln 1158/1937
S&P 100   562.26 -  3.83   566.09   562.19   Totals 2401/3936
S&P 500  1175.43 -  8.38  1183.81  1175.32 
SOX       427.38 -  1.96   431.00   422.57
RUS 2000  617.89 -  5.97   623.86   617.80
DJ TRANS 3572.19 - 39.30  3611.96  3570.45
VIX        13.21 -  0.17    13.67    13.20
VXO (VIX-O)14.00 -  0.21    14.69    13.79
VXN        18.60 +  0.10    18.95    18.52 
Total Volume 3,961M
Total UpVol  1,297M
Total DnVol  2,592M
Total Adv  2804
Total Dcl  4457
52wk Highs  414
52wk Lows    65
TRIN       1.58
NAZTRIN    0.72
PUT/CALL   0.71
=================================================================

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

Finally, A Pause To Reload
by Jim Brown

After three weeks of a sustained uptrend the market
finally decided to take a day off and rest its weary
legs. The surge to new highs has been relentless and
those not already long have been wringing their hands
in anguish over the thought of having to go long at
new highs with no profit taking for a safer entry. 
Those fears have been calmed after today and now all
they need is confirmation of new upward movement to 
hook them with the promise of higher highs. 

Dow Chart

 
Nasdaq Chart

 
SPX Chart

 

The morning dip was blamed on a higher than expected
inflation reading from the Producer Price Index. The
PPI may have been blamed but they could just as easily
blamed it on the moon or sunspots. The market was very
extended and just needed to rest and the PPI was the
best excuse market reporters could find. The PPI did
jump +1.7% and well over expectations for +0.5%. This
was the largest gain in fourteen years and produced a
form of sticker shock for those not paying attention. 

Those pausing for a minute to look under the hood saw
that it was directly related to the spike in oil and
the hurricane and those factors causing the bounce are
already abating. Oil spiked to $55 on pre election 
terrorist fears and speculative excess and that is
already fading as expected. The impact to the PPI from
fuel was enormous at +4.12% and distorted the headline
number significantly. Another component causing trouble
was food which was driven higher by produce and feed
shortages caused by the hurricane damage and supply
disruption. Individually vegetables jumped +34.2%, 
gas +17.3% and fuel oil +17.9%. The headline number
got all the attention but ex-food/energy it was a tame
+0.3%. Lots of smoke but the fire is already out. This
was a slam dunk for traders and should have never 
caused more than a momentary blip for news dissemination.
Instead they looked at the calendar and saw the Consumer
Price Index due out tomorrow and took a pass on new
positions until that news is out on the consumer level.

The Chain Store Sales fell -0.4% for the week ended 
Nov-13th and that makes four of the last five weeks
the index has fallen. Last weeks +1.3% jump turned
out to be an anomaly and could not be continued. Sales
on a year over year basis have been running on about
a +3% clip and that trend continued. The ICSC is 
projecting holiday sales of +3% to +4% for both 
November and December. If oil does continue lower,
something we cannot count on, then consumers will 
feel a pressure release that could lead to more 
spending. 

The November NAHB Housing Index was flat at 71 with
October and that is also the 12-month high. Builders
continue to be positive despite a minimal drop in
traffic to 50 from 52. It is fall and weather does
diminish idle shoppers. Those that really want to 
buy a new home are not deterred. The string of months
at 50 or higher reached seven months and the longest 
string since the late 1990s. The expectations component
is holding at 80 and very optimistic. Maybe too 
optimistic in light of the current uncertainty and
the Fed rate hike process. 

For Wednesday we have the CPI, Residential Construction,
Industrial Production, Mortgage Applications and Oil
and Gas Inventories. Short of a disaster that is not
energy related in the CPI I doubt that will be a factor
for the market. The oil inventories could either send
prices sharply lower or reverse the current drop and
could be the most important release. 

After the bell tonight HPQ reported earnings that beat
the street by +4 cents and raised their estimates for 
the first half of 2005. Not only did they have their
best printer quarter ever, HPQ said they strengthened
their competitive position with significant new offerings
in storage, blade servers, imaging, printing and digital
entertainment. HPQ said it had record revenues in every
division and every region that helped push profits up
+26%. Shares of HPQ jumped +10% in after hours trading.
HPQ raised estimates for both revenue and earnings for
the first half of 2005. 

Network Appliance (NTAP) also announced earnings that
beat the street by +2 cents and raised guidance for
the current quarter and full year. NTAP said there
was rising strength in all product lines and all 
geographies. They especially saw strength in Japan 
and from the Federal Government which was spending
heavily in homeland defense applications requiring
massive amounts of data. NTAP projected revenue in
the current quarter to grow +35% to +38% year over 
year. NTAP soared nearly +10% in after hours trading.

Unfortunately the good news from HPQ and NTAP did not
cross over to the broader market. Futures ceased their
closing drop on the news but failed to move higher
but they do have a positive bias. Several challenges
still need to be overcome. Intel was downgraded today
from a buy to hold at Wedbush Morgan and it was 
downgraded on Monday to underperform from buy at First
Albany. On Friday Wells Fargo initiated coverage with
a SELL. While the tech analyst bears were ganging up
on Intel the stock continued to set new three month
highs and closed only three cents below those highs.
Intel may not be able to hold the SOX up all by itself
but it is definitely bucking the downgrade trend. The
SOX tried to hold the higher ground today above 430 
but could not maintain traction. The SOX only lost 
-1.96 so it was still a good performance. Having HPQ
and NTAP both beat and raise estimates tonight the 
potential for a new SOX high tomorrow is pretty good. 
Ironically HPQ made a specific note of strong Intel
server sales. Guess those Intel bears will be road 
kill again.

In order for that new SOX high to hold the investing
public will have to overcome caution from the Goldman
Sachs CIO survey released today. Goldman found that
CIOs were more upbeat about 2005 but 2004 was not
going to end with a bang. The 2004 IT growth was
likely to end up between +3% and +4% according to the
survey. Actually that is much higher than previous
estimates but it is still lackluster. More bad news
was the prospect for only +2% to +4% growth for 2005.
This is also better than prior estimates at +1.9% but
still lackluster. It is considered a recovery year 
and historically there was substantially stronger
double digit growth in past recoveries. Analysts and
traders could not decide to be excited or worried
about the improved forecast. Goldman said Dell, HPQ,
NTAP, EMC, MSFT and SYMC were gaining market share in
terms of IT budgets with SUNW and CA losing ground. 

The markets opened weak on not only the PPI but on
numbers from Wal-Mart that failed to impress. Earnings
were inline with estimates but profits failed to meet
Wal-Mart's hopes. They blamed the slippage on high gas
prices and budgets experiencing an energy crisis. They
did say sales were ramping up nicely into the holidays
and they are expecting same store sales growth between
+2% and +4%. WMT lost -81 cents for the day but the
results impacted the entire retail sector. 

The Dow could not find a bid at the open and fell from
yesterday's 10550 close to 10480 before any dip buyers
appeared. Once they did appear they were unable to 
return it to its previous glory but they were successful
in holding the index to barely more than a 25 point
range around 10500 the rest of the day. Considering
the massive gains of nearly +850 points over the last
three weeks the minor -62 point loss was only a drop
in the bucket. Should we really break the trend and
move lower we should find initial support in the 10470
range with very strong support back at 10400. With the
HPQ/NTAP news after the bell I would be really surprised
to see a continued dip but anything is possible given
the huge gains. 

The Nasdaq dropped -15 points to 2075 and found very
decent support all afternoon. With the tech news after
the bell spiking Dell, NTAP, SUNW, INTC, the SMH and
many others in after hours I suspect the Nasdaq will 
open higher without a new pre open disaster. Should 
we move lower there is very strong support in the 
2040 range but a drop of that magnitude would call
into question the future of the current rally. 

If you look at the charts above you will see that the
Dow and Nasdaq failed exactly where they should have
failed after the strong run. While they may not just
catapult over that resistance tomorrow or even this
week I believe they will stay in close proximity for
the next attack. 

There are a lot of traders waiting for a strong pull
back that may never come and I would be very surprised
if it appeared this week. If you watched the market 
gain hundreds of points without you over the last two
weeks would you want to face that possibility again
as we near Thanksgiving week? Historically the holiday
week is bullish and traders hoping for entries before
that week are quickly running out of time. They will
have to act quick on any remaining weakness and hope
there is not a bigger problem lurking in our future.
This is option expiration week and the first two days
have not been exciting. Those short and hoping for a
continued pull back to cover are probably more nervous
than a cat in a room full of rocking chairs tonight.
The earnings have given the futures an upward bias and
a positive CPI before the open could reawaken the bulls.
Those waiting for Nasdaq 2050 to enter long positions
could be waiting a long time. 

Shifting gears slightly I am starting to see more
negative press about possible market direction once
we get to January. While I agree the direction for 
2005 could be a challenge I don't think wasting time
worrying about it now is a worthwhile effort. Remember,
those fund managers still behind the curve need to 
capture some performance over the next six weeks and
they will be providing the market momentum for the
rest of us. Plus, retail investors have awakened
from their sleep with newspapers touting the current
rally. Money is pouring into funds and that money has
to be put to work. TrimTabs said $1.8 billion flowed
into the SPY on Monday alone. So far this month $6B
has flowed into US Equity funds and $4.6B into ETFs.
This is the biggest influx of cash since March. Unless
the spigot suddenly runs dry tomorrow that inflow 
should continue through the Thanksgiving rally. Also
helping this flow of cash is the continued low price
of oil. Oil closed at $46.10 today and while still
above the 100 day average at $45.50 those hoping for
a rebound at that support should be getting worried. 
That worry could lead to further shifting of money 
from oil to equities. If you are bullish on the market
you should be looking for a low CPI tomorrow, higher
industrial production and a sharp rise in oil inventories
at 10:30. Those three things should erase any lingering
doubts traders might have about being out of the market
ahead of Thanksgiving. 

Buy the dips until the trend changes. 

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

Mentor Corp - MNT - close: 29.88 change: -1.58

WHAT TO WATCH: Today's five percent decline in MNT could be an 
entry point for bears.  The stock was hammered in early November 
after reporting earnings that were only in-line with estimates.  
The earnings news were quickly followed by a broker downgrade and 
the stock gapped lower.  Now after two weeks of an oversold 
bounce MNT is failing again under the bottom of the gap down and 
its simple 200-dma.  The long-term chart appears to be giving a 
rounding-top pattern.  We would watch for a move under current 
support in the $29.25 region.  A breakdown there could lead 
toward the $25 area. The P&F chart is already into a sell signal 
with a $24 target.




---

CalAmp Corp - CAMP - close: 8.50 change: +0.62

WHAT TO WATCH: After months of consolidation between $5 and $8 a 
share CAMP has finally broken out.  The rally began after the 
election and CAMP pushed its way towards resistance at $8.00 and 
its exponential 200-dma.  CAMP broke through its 200-ema 
yesterday and broke through the $8.00 level today on volume 
almost three times its average.  This looks like a bullish entry 
point but we're a little worried by the simple 200-dma directly 
overhead.  P&F chart readers will note that CAMP has reversed its 
sell signal into a new buy signal with a $13 target.




---

Infinity Property & Casualty - IPCC - close: 33.42 change: +0.99

WHAT TO WATCH: This insurance stock has rallied with the rebound 
in the IUX insurance index.  Now shares of IPCC are nearing major 
resistance at $34.00.  A breakout here would be very bullish and 
pave the way for a run toward its highs near $38.00.  





---

Rambus Inc - RMBS - close: 21.47 change: +2.63

WHAT TO WATCH: The rally in RMBS continues.  Shares have now 
broken through round-number, psychological resistance at $20.00 
and its simple 200-dma.  Volume was very strong at nearly ten 
times the average volume.  The headlines suggest the rally is 
fueled by a favorable court decision in one of RMBS patent cases.  
Watch for a dip to $20.00 and consider a bounce an aggressive 
bullish entry point. 





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

AMAT $16.76 +0.02 - AMAT is due to report earnings tomorrow.  
Wall Street is looking for 26 cents a share.  Watch for the move 
over $17.00.

QLGC $34.94 +0.02 - Almost there.  We're watching for the close 
over $35.00.

TOPT $18.34 +1.45 - The more aggressive trader may want to give 
TOPT another look.  This transport stock is breaking out from a 
pennant-type pattern on big volume.  Its MACD has produced a new 
buy signal.

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

No Surprises
- J. Brown

Okay the big jump in wholesale prices was a surprise but was the 
pull back really a surprise?  I hope not.  We've been looking for 
a dip for days now.  If not for the rise in inflation via the PPI 
index stocks may not have dipped at all.  The news was probably 
just the excuse traders needed to do some much needed profit 
taking.  Even with the excuse to sell the weakness was not very 
deep.  

I would hope for more profit taking tomorrow but a positive 
earnings report from tech heavy-weight Hewlett-Packard (HPQ) 
after the bell on Tuesday could spoil that.  The company came in 
above estimates and offered a positive outlook on the fourth 
quarter.  Normally this would put a bid under tech stocks, 
especially hardware stocks tomorrow.  

Of course tomorrow brings a parade of economic data.  First and 
foremost is the Consumer Price Index or CPI.  If the CPI comes in 
way above expectations it could/should weigh on the markets.  
Wednesday also brings the industrial production and capacity 
utilization numbers.  Plus, Wall Street will be digesting the 
latest housing starts and building permits data.  

Another pivotal piece of evidence for the tech sector and 
specifically the semiconductor sector will be Applied Material's 
(AMAT) earnings.  Wall Street is looking for 26 cents a share 
from the planet's largest chip equipment maker.  AMAT's results 
and guidance could have a big affect on the SOX and thus 
indirectly on the NASDAQ. 

FYI: the COT data at the bottom of this report has been updated 
for the latest data available on 11/09/04.


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

Market Averages

DJIA ($INDU)

52-week High: 10753
52-week Low :  9585
Current     : 10487

Moving Averages:
(Simple)

 10-dma: 10404
 50-dma: 10148 
200-dma: 10244 



S&P 500 ($SPX)

52-week High: 1170
52-week Low : 1031
Current     : 1175

Moving Averages:
(Simple)

 10-dma: 1167
 50-dma: 1128
200-dma: 1120



Nasdaq-100 ($NDX)

52-week High: 1559
52-week Low : 1301
Current     : 1548

Moving Averages:
(Simple)

 10-dma: 1532
 50-dma: 1455
200-dma: 1438



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

CBOE Market Volatility Index (VIX) = 13.21 -0.17
CBOE Mkt Volatility old VIX  (VXO) = 14.00 -0.21
Nasdaq Volatility Index (VXN)      = 18.60 +0.10 


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

          Put/Call Ratio  Call Volume   Put Volume

Total          0.71      1,007,709       713,584
Equity Only    0.59        801,638       474,116
OEX            1.62         30,248        49,147
QQQ            0.60         80,552        48,923


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

Bullish Percent Data

           Current   Change   Status
NYSE          71.5    + 1     Bear Correction
NASDAQ-100    71.0    + 2     Bull Confirmed
Dow Indust.   63.3    + 0     Bull Confirmed
S&P 500       72.2    + 1     Bull Confirmed
S&P 100       72.0    + 1     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: 0.98
10-dma: 0.93
21-dma: 0.94
55-dma: 1.00


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    1042      1130
Decliners    1788      1899

New Highs     197       130
New Lows       13        14

Up Volume    458M      790M
Down Vol.   1248M     1062M

Total Vol.  1734M     1885M
M = millions


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

Commitments Of Traders Report: 11/09/04


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

The difference between longs and shorts on the commercial side
continues to narrow suggesting no bias one way or the other.
Small traders are also somewhat neutral with a mild bullish
bias.

Commercials   Long      Short      Net     % Of OI
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%)
11/09/04      447,779   449,171   ( 1,392)   (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
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%
11/09/04      148,415   136,325    12,090     4.2%

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

Commercials traders appear to be trying to capitalize on the 
S&P's overbought status.  Short positions soared and the latest
data is one of the most bearish readings of the year.  As is
usually the case the small traders is on the opposite side of
the play with one of the most bullish readings of the year.


Commercials   Long      Short      Net     % Of OI 
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%)
11/09/04      337,164   672,903   (335,739)  (33.2%)

Most bearish reading of the year: (354,835)  - 06/17/03
Most bullish reading of the year:  133,299   - 09/02/03

Small Traders Long      Short      Net     % of OI
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%
11/09/04      392,253     58,999   333,254    73.8%

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


NASDAQ-100

Commercial traders remain bullish on the NASDAQ.  Meanwhile
small traders upped their positions on both longs and shorts
but hit a new bearish extreme as far as net short positions.


Commercials   Long      Short      Net     % of OI 
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%
11/09/04       54,509     33,016    21,493   24.5%

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
10/19/04       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%)
11/09/04       10,213    38,251   (28,038)  (57.8%)

Most bearish reading of the year: (28,038) - 11/09/04
Most bullish reading of the year:  19,088  - 01/21/02

DOW JONES INDUSTRIAL

Not much action in the commercials as they remain evenly
divided between longs and shorts.  The same can be said for
small traders this past week with a split between bulls and
the bears.


Commercials   Long      Short      Net     % of OI
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%
11/09/04       22,863    22,463      400       0.8%
 
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%
11/09/04        6,165     6,483    ( 318)   ( 2.5%)

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


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Do not duplicate or redistribute in any form.







PremierInvestor.net Newsletter                  Tuesday 11-16-2004
                                                    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:        AIT, SAVB

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

AIT announces 3-for-2 stock split

Tuesday morning before the opening bell Applied Industrial 
Technologies (NYSE:AIT) announced that its Board of Directors has 
approved a 3-for-2 stock split of its common shares.

The split will be payable on December 17th, 2004 to shareholders 
on record as of December 3rd.  Fractional shares resulting from 
the split will be paid in cash.  Post-split AIT will have 
approximately 29.6 million shares outstanding.



About the company:
With more than 430 facilities and 4,300 employee associates across 
North America, Applied Industrial Technologies offers more than 2 
million parts critical to the operations of MRO and OEM customers 
in virtually every industry. In addition, Applied provides 
engineering, design and systems integration for industrial and 
fluid power applications, as well as customized mechanical, 
fabricated rubber and fluid power shop services. For its fiscal 
year ended June 30, 2004, the Company posted sales of $1.52 
billion. (source: company press release)

--

SAVB announces 5-for-4 stock split

This afternoon right at Tuesday's closing bell the Savannah 
Bancorp, Inc. (NASDAQ:SAVB) announced that its Board of Directors 
had approved a 5-for-4 stock split of its common shares.

This stock split will take the form of a 25 percent stock dividend 
payable on December 17th, 2004 to shareholders on record as of 
November 26th.  Fractional shares will be paid in cash. 


About the company:
The Savannah Bancorp, Inc., a bank holding company for The 
Savannah Bank, N.A. and Bryan Bank & Trust, Richmond Hill, GA, is 
headquartered in Savannah, GA. Harbourside Mortgage Company, a 
division of The Savannah Bank, N.A., is a loan production office 
on Hilton Head Island, SC that began business on October 1, 2003. 
SAVB began operations in 1990. Its primary businesses include 
deposit, credit, trust and mortgage origination services provided 
to local customers. (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

CNI     Canadian Natl Railway      56.72     +0.52
BNN     Brascan Corp               36.92     +1.22
KMI     Kinder Morgan              66.96     +0.55
NRD     Noranda Inc                17.77     +0.72
DRL     Doral Financial            46.45     +0.96
CP      Canadian Pacific Ltd       29.78     +0.75

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

MFLX    Multi-Fineline Electronix  18.04     +1.05
CTMI    CTI Molecular Imaging      11.31     +2.48
ASF     Administaff                14.46     +1.43
TOPT    Top Tankes Inc             18.34     +1.45
RVSN    Radvision Ltd              13.20     +1.07
RTIX    Regeneration Technologies   9.72     +2.01

---------------------------------------
Breakout to Upside (Stocks over $20)
---------------------------------------
  
BNN     Brascan Corp               36.92     +1.22
XMSR    XM Satellite Radio         36.13     +1.86
FNF     Fidelity Natl Financial    42.28     +3.32
VRSN    Verisign Inc               31.57     +1.49
CCJ     Cameco Corp                91.90     +2.79
HRS     Harris Corp                67.12     +1.25
KMX     Carmax Inc                 29.07     +1.80

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

MBT     Mobile Telesys            139.00     -3.50
ZBRA    Zebra Technology           48.48     -3.57
INSP    Infospace Inc              49.17     -5.43
MNT     Mentor Corp                29.88     -1.58
HDWR    Headwaters                 29.75     -1.38
ESE     Esco Technologies          69.17     -5.57

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

COGN    Cognos Inc                 38.85     -1.30
PJC     Piper Jaffray              45.73     -3.32
NX      Quanex Corp                54.30     -1.09
FCFS    First Cash Financial       23.87     -1.42
PKOH    Park-Ohio Holdings         21.50     -1.09


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