PremierInvestor.net Newsletter Tuesday 12-07-2004 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: Naughty Traders Watch List: Possible Breakouts Market Sentiment: Overdue ================================================================= MARKET WRAP (view in courier font for table alignment) ================================================================= 12-07-2004 High Low Volume Adv/Dcl DJIA 10440.58 -106.50 10567.16 10440.36 1.95 bln 773/2434 NASDAQ 2114.66 - 36.60 2161.30 2114.65 2.69 bln 796/2351 S&P 100 560.94 - 5.65 567.84 560.92 Totals 1569/4785 S&P 500 1177.07 - 13.18 1192.19 1177.07 SOX 437.51 - 9.40 451.31 437.49 RUS 2000 625.50 - 13.53 639.78 625.46 DJ TRANS 3669.66 - 37.60 3730.12 3669.66 VIX 13.67 + 0.48 13.74 12.96 VXO (VIX-O)14.18 + 0.61 14.41 13.59 VXN 20.28 + 0.75 20.38 19.02 Total Volume 4,908M Total UpVol 1,267M Total DnVol 3,577M Total Adv 1877 Total Dcl 5415 52wk Highs 289 52wk Lows 43 TRIN 1.37 NAZTRIN 0.65 PUT/CALL 0.75 ================================================================= =========== Market Wrap =========== Naughty Traders by Jim Brown It appears Santa made a list of those who have been naughty and nice and traders ended up on the naughty list. While we are still far away from the normal Santa Claus rally it was mentioned many times today and not in a complementary fashion. Everybody with a microphone or a keyboard was moaning about the failing market and the prospects of the Santa rally being past tense for 2004. Enough traders took them at heart and the markets closed at the lows for the day with no buyers in sight. Dow Chart SPX Chart Nasdaq Chart The economic reports today left a lot to be desired and they helped to weaken bullish sentiment. Chain Store Sales fell again by -1.7% and the second consecutive week of strong declines. The index fell to its lowest reading since the end of January and this at the beginning of the strong holiday shopping season. A special ICSC survey this week showed 32% of shoppers were already half done with their holiday shopping and 9% had already completed the task. Obviously some shoppers had too much extra time on their hands. I am waiting for the "real" discounts to begin on Dec-20th. Quite a few people follow my example, mostly male shoppers I presume because the same survey suggested a strong finish similar to last year's pattern. October consumer credit rose by +$7.7 billion and last months number was revised upward to +$13.6 billion from +$9.8B. This rising credit is pushing the consumer debt burden even higher and December is expected to continue this trend. High energy prices and low wages are forcing consumers to depend more on credit to get through the month. Jobs are still an issue with the Challenger report showing a rise in announced layoffs to 104,530. This was the third consecutive month over 100,000 and this is generally the time of year when layoffs moderate. This rising trend in a normally positive period suggests there is still trouble under the hood in the economy. The Jobs report last Friday was also lower than expected and this layoff report was a confirmation of that weakness in labor. During the boom years prior to 2000 the level of layoffs remained below 50,000 per month. However, layoffs in 2004 are 19% below the 2003 level for the 12 months ending in November. Q3 Productivity was revised down slightly to +1.8% but costs were revised higher by that same +1.8% rate. On an annual basis productivity in Q3 dropped to +3.1% from +4.9% in the second quarter. The revision today was not a real problem but the rising costs continue to drag on profits. Corporations are doing everything they can to keep from adding to payrolls and taking on the added cost burden. While economics were seen as only a slight depressant on the market there were some other challenges traders had to overcome. Lehman advised customers that the market ahead could be disappointing with only single digit gains in 2005. They said earnings would disappoint and not to expect big gains. Insider trading hit a four-year high with $6.6 billion in stock sales in November. Analysts point to this trend as a lack of confidence by insiders that business conditions are going to improve in the short term. If insiders were optimistic then investors should be optimistic. This is not a hard statistic given the massive selling by the Google insiders and by Larry Ellison. Together they accounted for the majority of the sales. Despite the triple digit Dow loss there was very little negative news on stocks. In reality there was a flood of positive news. Cisco said guidance for +13% growth was reasonable and said many positive things about their new product line. Cisco soared on the news to a three month high over $20 and then sold off to close negative. They did however make comments that suggested margins were coming under increasing pressure on tougher competition from overseas competitors. Intel CEO Craig Barrett said that Intel had recovered from product missteps and the company was now firing on all eight cylinders again. He said Intel had regained its market share in memory after pricing themselves out of the market in 2003. They will be shipping their new dual core processors in 2005 and by 2006 they expect 70% of the product line will be the faster dual core processors. The WSJ is reporting tonight that Intel expects a ten fold increase in processor speed by 2008. That would equate to a 30 ghz chip but since they are getting away from that measurement no target was mentioned. Intel said within three years it would be delivering not just dual core processors but multicore chips with multiple processors to catapult total processor speed to new highs. Intel dropped -50 cents on the good news. Corning announced that two of its customers had either pushed out or cancelled existing orders of LCD glass. Corning had already announced they were not going to try and increase production to corner the market. After being killed on an excess of fiber optic cable when the Internet bubble burst they are comfortable manufacturing for a profit and not trying to hog the entire sector. They expect LCD TVs to be 16% of the market in 2005. The satellite radio wars continue to heat up with XMSR announcing Toyota will offer the radios as a factory option in 2006. Customers buying Toyota and Lexus cars can order them with factory installed radios. Not to be left out SIRI announced that Toyota will offer dealer installed radios on nine models beginning in Feb-2005. This blow for blow advertising war continues to push both stocks higher. There was a rumor today the Nasdaq would put SIRI in the QQQQ and that provided another boost for both companies. XMSR currently has more than three times as many subscribers as SIRI and this David and goliath battle is far from over. After the bell Texas Instruments gave their mid quarter update and they narrowed guidance to the middle of their previous range. They said the inventory correction that began in Q3 was continuing and order trends remained soft. TXN said its own inventory problem will be down by year end but they declined to predict how long the sector problem would last. The after hours impact to futures from TXN was negligible. On a positive note Seagate Technology (STX) raised its estimates on stronger than expected demand for its products. They said profits could be as high as 22 cents and that was well above the prior 11 to 14 cent estimate. Revenue was expected to jump to $1.76B from the $1.61B prior estimate. Shares of STX jumped +$2 in after hours to $18.50. The company said retailer inventories had declined to 3-4 weeks. With the prices at nearly free it is not surprising. I bought five 200GB Western Digital enhanced IDE drives this week for $104 each. (no rebate needed at www.dttechnology.com) The market drop today came only a few hours after Ralph Acampora issued his new targets for all the indexes. Ralph now believes that we are in a new cyclical bull market that started in October 2002 and will last for the next six months. His targets are Dow 13,264, SPX 1473, Nasdaq 2796, Russell 797. I am sure he was very gratified by the market implosion the day after he went on CNBC with his bullish comments. In reality he is about the only high profile analyst expecting good things from 2005. The list is long and growing longer for those who feel January will be the high for the year. That feeling may have helped put the market on the skids today and once the drop began it took on a life of its own. Volume was very high on the Nasdaq with 2.7 billion shares trading. The broad market advance decline line was more than 3:1 in favor of declines. The market reporters were constantly feeding the public a dose of the Santa rally blues and predicting it will not appear this year. In reality we are just in the period I mentioned several times last month where tax loss selling normally occurs. I have discussed in this column the potential for that selling to have moved to the week ahead of Thanksgiving in order to get in front of the Microsoft dividend and that could have been a factor in the pre Thanksgiving weakness. However, the sharp drop today without any real news trigger was not simply a concentrated effort by some funds to adjust their portfolio. Why they chose today to accelerate the selling we will never know exactly. This was the third consecutive down day and the selling began at 1:PM and never stopped. Various support levels provided short pauses but sellers were still unloading in the after hours futures. Several reporters mentioned that extreme selling volume in the S&P futures after 1:PM drove the majority of the drop. One theory I pondered today had to do with the Microsoft dividend play. If you remember we saw a huge spike in the market the day before the dividend payment. The Dow soared +162 points and the SPX rallied to a high just below 1195 on "strong buying in the S&P futures." Once the dividend was paid NOTHING happened. After that Wednesday rally the market has been flat to down. We speculated that the funds who bought the futures were hedging themselves in advance of the expected liquidity bounce. The high volume for the next three days with no gains or losses were thought to be funds unwinding those futures positions (negative market pressure) and moving into stocks with the Microsoft money. (positive pressure) This unwinding was thought to be producing the high volume and no relative movement. After watching the market action today and reviewing the action after the close I am speculating today was the real unwinding of that Wednesday bounce. I am speculating that the strong futures led bounce was in anticipation of that Microsoft liquidity causing a monster market move. Hedge funds positioned themselves for that move with futures just like the mutual funds. When it did not appear they grew nervous and today they bailed. The market retraced to almost EXACTLY where the rally began last Wednesday. Last Wednesday the Dow opened at 10425, SPX 1174, Nasdaq 2104. Of those three the Dow and SPX retraced to almost exactly those levels today. The Nasdaq held its gains slightly better with a close at 2116 but I am betting the positive Cisco and Intel news helped prevent further weakness. The Russell was the index that really broke the trend. The Russell began last Wednesday at 634 and closed today at 626. However, the Russell had been the index of choice for the prior five weeks. Funds normally buy the Russell stocks going into year end and I suspect there was a lot more posturing in small caps before last week's bounce. The Russell also led this week's drop with a very weak performance beginning on Monday. When the bottom fell out today it began on the Russell and never let up. After the close the Russell futures fell to 624 in after hours. The Russell futures have been weaker than the cash index and this agrees with my speculation about the pre dividend futures speculation. They just unloaded them today and with the Russell futures a "thinner" market the damage was more apparent. All this speculation about the reason for the drop does not tell us where the drop will stop. Personally my target for the drop this week was SPX 1177. (1176 in the futures) I talked about it all day in the futures monitor and that has been exactly the low so far. No magic here but just very obvious support. That equates to 10425-10440 on the Dow. The Nasdaq equivalent would have been 2100 but the techs are holding their gains better despite the -36 point drop. The Nasdaq closed at 2116. For Wednesday I am looking for a potential rebound but it may only come in the form of an oversold relief bounce. Some damage has been done to the bullish sentiment and it may take a couple days for that to be erased. We are still in the period in December where weakness is common so there is no reason to get too excited. I have to admit the sharpness of today's drop was out of character for the current market and if it is not due to the futures play by hedge funds then there are forces at work that could continue to undermine support. I am still a dip buyer above SPX 1165 and would target that level for a conservative entry in front of a Santa Claus rally. Below 1165 I would be flat or short. If we do get a relief bounce at the open on Wednesday then I would want to see that bounce hold over 1177 for bullish confirmation before going long. December is normally a bullish month but no trend is infallible. Choose your positions wisely and raise your stops to protect profits. Don't get caught letting profits slip away just because December is "normally" bullish. Time is slipping away for the end of year renewal special. This would be a good time to check it out! Bonuses are shipped in the order they are received. 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 --------------------------------- Marsh & Mclennan - MMC - close: 29.77 change: +0.54 WHAT TO WATCH: We have mixed feelings on MMC. The recent consolidation is suggesting a breakout over resistance at $30.00 soon. We'd love to play a "fill the gap" move back towards $35. Yet we hesitate to consider longs since MMC will be at the top of the list for tax loss selling this year. Investors holding MMC will begin to sell the stock between mid-December and year-end. This makes any breakout in the next couple of days a potential bull trap. If you trade options it might be a potential straddle play instead. --- NU Skin - NUS - close: 22.70 change: -0.64 WHAT TO WATCH: NUS has bravely battled back from its October lows to breakout above technical resistance at the 200 and 100-dma's. However, the stock has now filled the gap down and looks overbought, extended and tired. Technicals are beginning to fade and its MACD is on the verge of a new sell signal. Watch for a breakdown under $22.00. --- Xilinx - XLNX - close: 31.25 change: -0.64 WHAT TO WATCH: Semiconductor stock XLNX has been struggling with its simple 200-dma as resistance for the past three weeks. Unfortunately for shareholders it has been losing the fight. Currently XLNX has pulled back to minor support at $31.00 bolstered by its exponential 200-dma. We're going to watch for a bullish breakout over the $33.00 level. It may not happen this week and shares may dip to $30 before it occurs. ----------------------------------- RADAR SCREEN - more stocks to watch ----------------------------------- FOSL $24.87 -0.29 - We are still watching FOSL. Today's breakdown under $25.00 looks like a new bearish entry point. Our initial target would be $22 with a secondary target at $20. FCEL $8.21 -1.25 - Ouch! FCEL fell 13.2 percent after Smith Barney started coverage with a "sell". We're not suggesting any plays here but brave bears might target long-term support near $5.00. PPD $38.42 +2.10 - The rally in PPD is incredible but it's also unsustainable. Nothing goes straight up forever. Today's pull back from its highs could be signs of a possible top. INTC $23.48 -0.53 - Lack of follow through on last week's rally is disappointing. INTC remains under pressure with its 200-dma. Bulls can wait for a move over $25.00. SANM $8.53 -0.51 - Uh-oh! Today's 5.6 percent decline looks pretty ominous. If shares don't bounce from the $8.00 level SANM could be in trouble. =============================== Market Sentiment =============================== Overdue - J. Brown Stocks have been overdue for a significant pull back for weeks so we shouldn't be surprise to see one this week. This does seem to be somewhat of an empty week on Wall Street. Last week there was a wave of economic news with the jobs report plus we had the Microsoft dividend and Intel mid-quarter update. Today there was some news from various analysts conferences held by some tech bellwethers but nothing to keep the momentum alive. Even a 3.3% drop in crude oil to $41.55 failed to spark any interest in buying stocks. Bulls probably shouldn't worry much. Stocks look tired and need a break. A pull back this week would set up for an end of your finale. Normally we can look for small caps to out perform as they get a boost from an early January effect in mid-December. I realize the Russell 2000 index just produced a new MACD sell signal but after a few days of declines the dip buying could begin again. Market internals were certainly bearish but that's what we would expect from a market-wide sell-off. Declining stocks outnumbered advancers 11 to 3 on the NYSE and 23 to 7 on the NASDAQ. Down volume overwhelmed up volume by 5 to 1 on the NYSE and 17 to 9 on the NASDAQ. The rest of the week is pretty quiet on the economic front until we get to Friday's PPI report. ----------------------------------------------------------------- Market Averages DJIA ($INDU) 52-week High: 10753 52-week Low : 9585 Current : 10440 Moving Averages: (Simple) 10-dma: 10519 50-dma: 10234 200-dma: 10237 S&P 500 ($SPX) 52-week High: 1188 52-week Low : 1031 Current : 1177 Moving Averages: (Simple) 10-dma: 1183 50-dma: 1146 200-dma: 1123 Nasdaq-100 ($NDX) 52-week High: 1581 52-week Low : 1301 Current : 1589 Moving Averages: (Simple) 10-dma: 1591 50-dma: 1504 200-dma: 1445 ----------------------------------------------------------------- CBOE Market Volatility Index (VIX) = 13.67 +0.48 CBOE Mkt Volatility old VIX (VXO) = 14.18 +0.61 Nasdaq Volatility Index (VXN) = 20.28 +0.75 ----------------------------------------------------------------- Put/Call Ratio Call Volume Put Volume Total 0.75 926,429 697,405 Equity Only 0.59 758,292 446,314 OEX 1.16 29,569 34,289 QQQQ 2.48 34,042 84,463 ----------------------------------------------------------------- Bullish Percent Data Current Change Status NYSE 75.7 + 0 Bear Correction NASDAQ-100 78.0 + 0 Bull Confirmed Dow Indust. 66.6 + 0 Bull Confirmed S&P 500 74.6 + 0 Bull Confirmed S&P 100 75.0 + 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: 1.08 10-dma: 0.95 21-dma: 0.99 55-dma: 1.09 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 590 771 Decliners 2227 2301 New Highs 61 56 New Lows 13 19 Up Volume 322M 890M Down Vol. 1585M 1717M Total Vol. 1924M 2630M M = millions ----------------------------------------------------------------- Commitments Of Traders Report: 11/30/04 Weekly COT report discloses positions held by small specs and commercial traders of index futures contracts at the Chicago Mercantile Exchange and Chicago Board of Trade. COT data can be found at www.cftc.gov. Small specs are the general trading public with commercials being financial institutions. Commercials are historically on the correct side of future trend changes while small specs tend to be wrong. S&P 500 Commercials traders didn't budge from their slightly bearish tone last week while small traders have increased their bullish attitudes. Commercials Long Short Net % Of OI 11/09/04 447,779 449,171 ( 1,392) (0.1%) 11/16/04 452,149 468,048 (15,899) (1.7%) 11/23/04 462,408 491,384 (28,976) (3.0%) 11/30/04 462,394 491,813 (29,419) (3.0%) 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 11/09/04 148,415 136,325 12,090 4.2% 11/16/04 166,862 156,751 10,111 3.1% 11/23/04 171,192 150,606 20,586 6.4% 11/30/04 176,031 148,876 27,155 8.3% Most bearish reading of the year: (1,657)- 5/27/03 Most bullish reading of the year: 114,510 - 3/26/02 E-MINI S&P 500 Commercial traders added to both longs and shorts while small traders reduced some longs to lower their bullishness by a few percentage points. Commercials Long Short Net % Of OI 11/09/04 337,164 672,903 (335,739) (33.2%) 11/16/04 371,282 796,279 (424,997) (36.4%) 11/23/04 412,724 849,091 (436,367) (34.6%) 11/30/04 439,074 855,440 (416,366) (32.2%) Most bearish reading of the year: (436,367) - 11/23/04 Most bullish reading of the year: 133,299 - 09/02/03 Small Traders Long Short Net % of OI 11/09/04 392,253 58,999 333,254 73.8% 11/16/04 445,737 70,169 375,568 72.8% 11/23/04 400,995 62,080 338,915 73.1% 11/30/04 386,665 67,926 318,739 70.1% Most bearish reading of the year: (77,385) - 09/02/03 Most bullish reading of the year: 449,310 - 06/10/03 NASDAQ-100 Sentiment is hitting new one-year extremes on the NDX. Commercials are becoming more bullish while small traders are becoming more bearish! Commercials Long Short Net % of OI 11/09/04 54,509 33,016 21,493 24.5% 11/16/04 55,737 33,683 22,054 24.6% 11/23/04 58,159 34,104 24,055 26.0% 11/30/04 56,629 30,571 26,058 29.8% Most bearish reading of the year: (21,858) - 08/26/03 Most bullish reading of the year: 26,058 - 11/30/04 Small Traders Long Short Net % of OI 11/09/04 10,213 38,251 (28,038) (57.8%) 11/16/04 10,533 37,660 (27,127) (56.2%) 11/23/04 11,153 39,712 (28,559) (56.1%) 11/30/04 9,902 44,779 (34,877) (63.7%) Most bearish reading of the year: (34,877) - 11/30/04 Most bullish reading of the year: 19,088 - 01/21/02 DOW JONES INDUSTRIAL Both the commercial traders and the small traders have grown more bearish on the Industrials. Commercials Long Short Net % of OI 11/09/04 22,863 22,463 400 0.8% 11/16/04 22,004 23,744 (1,740) (3.8%) 11/23/04 22,527 25,537 (3,010) (6.2%) 11/30/04 22,622 25,411 (2,789) (5.8%) 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 11/09/04 6,165 6,483 ( 318) ( 2.5%) 11/16/04 5,937 6,533 ( 596) ( 4.7%) 11/23/04 5,833 8,299 (2,466) (17.4%) 11/30/04 5,739 8,536 (2,797) (19.6%) Most bearish reading of the year: (12,106) - 3/09/04 Most bullish reading of the year: 8,523 - 8/26/03 ================================================================= 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 ) 2004 PremierInvestor.net. and The Premier Investor Network. Do not duplicate or redistribute in any form.
PremierInvestor.net Newsletter Tuesday 12-07-2004 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: SEBL, QLGC, PDCO, STJ Active Trader (Non-tech Stocks) Closed Bullish Plays: ACH 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 ================================================================== SEBL - tech stock long - SEBL started out strong but the rally failed at $10.85 and the stock slid lower throughout the rest of the day. We're watching for a bounce from the $10.15 region. Fortunately, its surprise announcement came after the closing bell. SEBL plans a new initiative to target the small and medium business market. The news had share trading slightly higher after hours. QLGC - tech stock long - Uh-oh! Double check your risk on this play. QLGC just painted a bearish engulfing candlestick with today's market decline. We would expect more weakness tomorrow. If QLGC doesn't bounce from the $35.00-35.50 level then we would probably exit. PDCO - non-tech long - Watch for a bounce from support at $40.00 as the next entry point. STJ - non-tech long - Hang on! STJ is painting a potential bearish reversal with today's failed rally near $41.00. If the stock breaks down under $39.00 we might exit early. ================================================================== Active Trader (AT) Non-Tech Stock section ================================================================== ============ Closed Plays ============ Closed Bullish Plays -------------------- Aluminum Corp China - ACH - close: 59.50 chg: -2.98 stop: 59.75 Looks like our caution on ACH was warranted. The broad-market sell-off was too much for shares of ACH. The stock broke down under support at $62.00 and again at round-number, psychological support at $60.00. Volume was above average suggesting this reversal has more weakness ahead of it. We've been stopped out at $59.75. Picked on November 14 at $63.45 Gain since picked: - 3.95 Earnings Date 00/00/04 (confirmed) Average Daily Volume: 150 thousand ================================================================== Stock Splits ================================================================== Announcements ------------- None ================== Trading Ideas ================== This section contains stocks that meet criteria which may make them of interest to long and short side traders. These are not recommendations, nor have they been reviewed by PremierInvestor editors for investment potential. However, each of them has technical and fundamental characteristics that make them worthy of further review by traders and investors looking for fresh ideas. New stocks will appear daily following the market close. Value Plays With Bullish Signals --------------------------------- Ticker Company Name Close Change GSK GlaxoSmithKline 45.05 +0.53 CL Colgate-Palmolive 50.07 +3.78 MMC Marsh & Mclennan 29.77 +0.54 FRX Forest Labs 41.56 +0.66 BLL Ball Corp 43.52 +0.89 DVA Davita Inc 37.72 +0.90 --------------------------------------- Breakout to Upside (Stocks $5 to $20) --------------------------------------- DSCO Discovery Labs 8.22 +1.40 RFMI RF Monolithics 10.60 +1.05 ABIX Abatix Corp 12.77 +4.88 RCO Ramp Corp 5.45 +1.56 --------------------------------------- Breakout to Upside (Stocks over $20) --------------------------------------- GDT Guidant Corp 72.35 +3.60 GYI Getty Images 63.95 +2.21 NVDA NVIDIA Corp 22.81 +1.09 RCI Renal Care 34.52 +1.33 LAUR Lareate Education 42.47 +1.11 CRDN Ceradyne Inc 50.69 +2.00 PPD Pre-Paid Legal Services 38.42 +2.10 ------------------------------------------- Breakout to Downside (Stocks over $20) ------------------------------------------- NCC Natl City Corp 36.17 -1.20 FITB Fifth Third Bancorp 45.99 -1.01 IMO Imperial Oil Ltd 57.36 -1.92 CCJ Cameco Corp 90.00 -4.60 AMCR Amcor Ltd 21.10 -2.26 SAY Satyam Computer 24.27 -1.50 PPDI Pharma Product Development 38.55 -1.39 PPC Pilgrim's Pride Corp 30.33 -1.60 GGC Georgia Gulf 49.53 -6.90 ----------------------------------------- Recently Overbought With Bearish Signals (Stocks over $20) ----------------------------------------- E Eni Spa 120.03 -2.17 LMT Lockheed Martin 60.21 -1.40 PPG PPG Industries 65.92 -1.86 COL Rockwell Collins Inc 39.15 -1.37 NTLI NTL Inc 69.27 -1.92 SNDA Shanda Interactive 39.30 -3.51 LOGI Logitech Intl 58.00 -1.20 WLK Westlake Chemical 29.78 -1.89 ================================================================= 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) 2004 PremierInvestor.net. and The Premier Investor Network. Do not duplicate or redistribute in any form.
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