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Daily Newsletter, Thursday, 12/09/2004

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PremierInvestor.net Newsletter                 Thursday 12-09-2004
                                                    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:       Ho, Ho, Ho!
Watch List:        Homebuilders to Movies and more!
Market Sentiment:  Buying The Dip

=================================================================
MARKET WRAP  (view in courier font for table alignment)
=================================================================
      12-09-2004           High     Low     Volume   Adv/Dcl
DJIA    10552.82 + 58.60 10562.51 10418.63 2.03 bln 1636/1438
NASDAQ   2129.01 +  2.90  2134.23  2097.86 2.27 bln 1375/1722
S&P 100   566.37 +  2.56   567.11   559.87   Totals 3011/3160
S&P 500  1189.24 +  6.43  1190.51  1173.76 
SOX       425.46 -  6.50   428.48   414.02
RUS 2000  629.19 -  1.96   631.15   621.74
DJ TRANS 3709.21 - 14.70  3723.09  3680.11
VIX        12.88 -  0.31    13.71    12.77
VXO (VIX-O)13.23 -  0.49    14.59    13.23
VXN        19.84 -  0.17    20.94    19.63 
Total Volume 4,591M
Total UpVol  2,482M
Total DnVol  2,038M
Total Adv  3433
Total Dcl  3573
52wk Highs  207
52wk Lows    54
TRIN       0.86
NAZTRIN    0.78
PUT/CALL   0.80
=================================================================

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

Ho, Ho, Ho!
by Jim Brown

While the chip sector may be getting coal in their 
stocking this year there were some stocks receiving 
votes of confidence from Santa's elves today. The
housing sector proved to be the golden child and the
sector most likely to be blessed with holiday dollars.
It was a mixed market but one that closed at the highs
and returned hopes to traders that a Santa rally may
still appear. 

Dow Chart

 
Nasdaq Chart 

 


The day did not start off well with the Jobless Claims
rising to 357,000 for the week and well above estimates.
This is the second week in the 350K range and rising.
Analysts were quick to suggest the jump was due to 
seasonal factors but it was still disconcerting. They
claimed the Thanksgiving week prevented many from filing
claims and they ended up filing the week after. Since 
the Thanksgiving week was also high at 349,000 I don't
really buy this but it makes a good sound bite. We have
seen multiple reports on jobs that have failed to show
meaningful gains over the last two weeks as well as an
upsurge in planned layoffs. Starting to look a lot like
trouble ahead. 

Import Prices jumped +0.2%, less than the prior month
at +1.5% but more than consensus at -0.1%. The main
factor for the drop was a -2.6% fall in energy prices.
Non-petroleum imports rose +0.7% to hold the index in
positive territory. Non-petroleum prices are up +3.4%
for the year. Export prices also rose at +0.3% despite
a decline in agricultural prices. With crude oil prices
up +60% over the same period last year it is amazing 
the total index is not much higher. 

Wholesale Inventories rose +1.1% and more than twice 
consensus estimates. Wholesale Sales rose +1.6% and 
the prior month was revised upward to +0.8%. The very
sharp increase in inventories came after a four-month
low in September. It appears that inventory replenishment
is underway across all sectors in anticipation of a
continued rise in sales. The inventory/sales ratio has
remained flat at 1.15 for five months despite the jump
in both inventories and sales. This suggests further 
gains are ahead. 

Investors were not interested in the economic news today
but focused instead on the multiple warnings in the chip
sector. CYMI, ALTR and XLNX all warned on revenue last
night and the impact to the SOX was immediate at today's
open. The SOX dropped to 414 at the open and a drop of
more than -4%. That drop stretched the losses from the 
Tuesday high over 450 to more than -8% in three days. 
This was a serious drop out of the recent range and 
below support at 430. 

While the news was bad we need to keep in focus that
50% of the income for ALTR and XLNX comes from chips
needed by the communications sector. We know that the
cell phone sector is currently buried in inventory but
they are selling new phones. The rapid change in models
requires a constant supply of new chips and a constant
dwindling of demand for old ones. Those old ones may
only be several months old. The current demand is a
moving target compared to more stable chip applications.
Weakness in XLNX and ALTR is not necessarily weakness in
the broader chip sector. 

One problem with ALTR is broad based and could be a
serious challenge. Cisco is a major customer of Altera
for communication chips used in their routers and switches.
Altera is seen as a leading indicator for Cisco's health.
This caused a little more concern than normal and pushed
CSCO lower. However, Cisco just affirmed growth estimates
of +13% earlier this week and I doubt they would have been
so public if business was bad. 

After the monster chip drop at the open that pushed the
SOX to 414, Nasdaq to 2100 and Dow back to the gap fill
from last Wednesday at 10425 a miracle appeared. NSM
announced earnings about 12:15 and did not warn. While
that may seem like an generic event it turned the tide
for the chip bears and they were forced to cover those
large short positions they had just entered. NSM matched
lowered earnings estimates and guided inline for the
current quarter. No excitement there but they went on 
to say that the inventory correction was almost over.
Specifically they said customers felt inventory levels
were where they needed to be and the correction was now
behind them. They said orders for portable power management
products had risen more than 25% over last year. This sudden
reversal of fortunes for chips sent the indexes soaring on
short covering and the gains lasted into the close. 

Adding fuel to the fire was an IDC report that said PC
sales are now expected to rise +10% in 2005 to more than
$200 billion. They said commercial shipments were rising
and the outlook was improving. 

Housing builder Toll Brothers blew out earnings with a
+93% surge in profit for the last quarter and the entire
housing sector celebrated. TOL said demand for homes was
soaring and it also raised its estimates again for 2005. 
Analysts were expecting $1.97 for the quarter and TOL
posted earnings of $2.22 per share. The company expects
earnings in 2005 to be 40% over 2004 and sales to climb
nearly +$2 billion to $5.35B. TOL jumped +6.88 on the
news. 

Stocks rose all afternoon despite rising oil prices and
comments from various OPEC states that they were all in
agreement on cutting production to increase prices. This
sudden change in commentary is removing the negative bias
we have seen for the last two weeks. Oil has rebounded to
$42.65 overnight and if the OPEC meeting in Egypt this
week follows through on these production cuts then $45
oil or higher is just around the corner again. I believe
it is only a matter of time before much higher prices are
a matter of life. 

I spent several months researching my "Coming Oil Crisis" 
report we are giving away with the year end renewal special.
I can guarantee you that gas prices as we know them will
be ancient history by the end of this decade. You will not
hear this in the mainstream press but production is already
falling in all but FOUR oil producing countries. Those four
are very close to their peak. Check out this chart of the
production levels for the non OPEC oil producing countries.
With the billions being spent on exploration the results
are clear. We are running out of oil and much higher prices
are ahead. Anyone concerned about how to profit from it or
just survive it needs to sign up for the special and get the
report. The number by each name is the year production began
to decline. 

Oil Depletion Chart for non OPEC Countries

 

After the bell today UTX said it expected growth of +10% 
to +15% in earnings in 2002. They also said they were
going to buyback $600 million in shares in 2005. The 
stock spiked to over $100 in after hours from a close
at $99.48.

Telecoms also helped push the markets higher after CIEN
beat estimates and news broke about Sprint and Nextel in
merger talks. CIEN jumped nearly 25% after posting sales
that were stronger than expected and forecasting stronger
growth ahead. CIEN back from the dead? I am not too excited
yet with a close at $2.86 and the high for the year at $8.14.
FON jumped +7.9% and NXTL gained +6.5% after the Wall Street
Journal speculated they were in merger talks to create the
3rd largest wireless company. 

For tomorrow there are no major economic reports and stocks
will be left to find their own level. We are only a week
away from a quadruple witching Friday and recently we have
seen increased volatility on the Friday before expiration.
With a positive bias at the close today we could be looking
at some positions squared early and positioning in advance
for any end of year rally. 

The Dow dropped to 10418 at the open due to the negative
chip news and the higher than expected jobless claims. 
This exactly correlated with the 10417 low for this 
current range set back in November. Bears were drooling
at the chance for a collapse of this support but it did
not happen. Instead buyers bought the dip once again but
for 90 minutes there was extreme caution as the index
ticked slightly higher. The NSM news at 12:15 triggered
a couple buy programs that appeared to be short covering
programs and the rest as they say was history. If three
major chip warnings could not break support and one 
little positive statement from NSM was enough to erase
those warnings then the bears decided to run for cover.
The Dow closed +133 points off its lows and very near
the highs. Only four hours separated the Dow from an
impending crash and rebounding to less than 50 points
from 10600 resistance once again. Those end of year 
buyers who were waiting for a better entry have got to 
be thinking tonight the train could be leaving the station
without them. 

The Nasdaq cratered to 2097 on the semi news and held
at support at 2100 for the first two hours of trading.
The NSM news reversed the SOX and that sent the Nasdaq
back to 2130 and resistance from yesterday in the blink
of an eye. The Nasdaq fought that resistance and lost
but dip buyers again appeared at 2120 and sent the 
index back over 2130 for the last hour. Profit taking
appeared at the close but 2130 held as resistance
turned support. With 2100 support from the end of
November apparently holding firm it gave the tech 
buyers confidence and baring any negative news over
night we could easily see 2150 again soon. 

The weakest link was the Russell with a strong drop
back to 621 and just over the 620 support from early
November. Buyers reluctantly appeared on the NSM news
but it still lagged the other indexes the rest of the
day. It closed negative and failed to reach the highs
from yesterday at 631. The rebound failed twice at
630 and tonight the Russell futures are much weaker
than the other contracts. The Russell, more so than
the Nasdaq, is very influenced by chip stocks. The
Russell has more chip stocks by weighting than any 
other index with tech stocks in general the third
largest group in the index. Technology problems and
especially chip sector problems are very damaging to
the index. The Russell has led the markets down for
three consecutive days and we need to see a break 
over 632 to confirm a break in that trend. 

Russell Chart

 

For Friday the market may still be confused. I have
repeatedly told you to buy the dip above SPX 1175 and
we saw the dip to that level bought strongly this 
morning. The SPX closed right at 1190 and 1192-1195 
is strong resistance. A break over that level should 
setup the end of year outlook and could attract a lot
of short covering. This will be the key for Friday. 
With the expiration week ahead anything is possible 
and while I would be surprised to see a breakout on 
Friday it is definitely possible. I would expect more
uncertainty instead of more bullishness but after 
today's rebound that uncertainty may be fading. 
Continue to buy the dips over 1175 and add to 
positions over 1195. 

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

Hovnanian Enterprises - HOV - close: 42.10 change: +2.22

WHAT TO WATCH: The housing sector added 5.5 percent on Thursday 
following a strong earnings report from Toll Brothers (TOL).  HOV 
paced the industry's gain and closed just under resistance at the 
top of its four-week trading range.  We would watch for a move 
over $42.25-42.50 as a new bullish entry point.  The bullish P&F 
chart points to a $67 target.




---

Rambus Inc - RMBS - close: 25.83 change: +2.35

WHAT TO WATCH: Specialty semiconductor maker RMBS soared 10 
percent on very strong volume Thursday.  The move was said to 
have been sparked by rumors that the company's legal battle with 
the FTC was going to rule in its favor.  Technically the breakout 
over resistance $25.00 is very bullish.  The P&F chart target has 
been met at $24.50 but the current momentum could carry RMBS to 
the $29-30 range.




---

Westwood One - WON - close: 25.56 change: +1.08

WHAT TO WATCH: Shares of WON have been big winners in December.  
The stock is up several days in a row.  Yesterday WON broke 
through resistance at the $24 level.  Today the stock broke 
through technical resistance at its simple and exponential 200-
dma's.  Volume has been rising on the rally too.  Readers may 
want to watch for a pull back into the $24.50-25.50 range and 
then consider a bounce as a new entry point. 




---

Marsh & Mclennan - MMC - close: 30.57 change: +0.96

WHAT TO WATCH: MMC has been a recent guest on our watch list.  
The stock appeared to be coiling for a breakout over resistance 
at the $30.00 level.  Yet we suggested that bulls be careful 
here.  MMC is a prime candidate for tax loss selling between now 
and the end of this year.  While normally the tax loss selling 
doesn't really hit full steam until the last two weeks of 
December it could occur at any time.  That's what makes today's 
breakout dangerous.  It looks like a new bullish entry point but 
it could end up being a bull trap.  Trade carefully.





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

UHS $47.79 +1.08 - Yesterday we highlighted USH on the watch list 
for a breakout over $47.00 and then again at $48.00.  The stock 
added 2.3 percent today and almost powered through both levels.


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

Buying The Dip
- J. Brown

Wall Street is still showing a little holiday cheer as stock 
rebound from support and traders show they are still willing to 
buy the dip.  The Industrials bounced from the bottom of their 
trading range at 10,400.  The NASDAQ Composite bounced from the 
2100 level and the S&P 500 put in a new higher low.  The two-day 
bounce has erased concerns that the potential top last week has 
been postponed.  Even a rebound in crude oil of 1.5 percent as it 
bounces from round-number support at $40 a barrel failed to 
impact stocks today.

Overall investor sentiment remains cautiously positive.  
Technically stocks remain overbought but they may be stuck there 
until next year.  We're impressed that the market is doing so 
well in spite of all the negative news (downgrades/earnings 
warnings) in the semiconductor sector this week.  Market 
internals were mixed today.  Advancers beat decliners 5-to-4 on 
the NYSE but lost 13-to-17 on the NASDAQ.  Up volume was 
significantly over down volume on the NYSE but it was a tie-game 
on the NASDAQ.  Total market volume remained heavy.

Tomorrow brings the Producer Price Index (PPI), the Michigan 
Consumer Sentiment numbers and an OPEC meeting in Cairo.  Not any 
one event is expected to weigh on stocks too much unless the PPI 
or sentiment figures are extremely out of sync.  



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

Market Averages

DJIA ($INDU)

52-week High: 10753
52-week Low :  9585
Current     : 10552

Moving Averages:
(Simple)

 10-dma: 10522
 50-dma: 10251 
200-dma: 10237 



S&P 500 ($SPX)

52-week High: 1188
52-week Low : 1031
Current     : 1189

Moving Averages:
(Simple)

 10-dma: 1184
 50-dma: 1149
200-dma: 1123



Nasdaq-100 ($NDX)

52-week High: 1581
52-week Low : 1301
Current     : 1609

Moving Averages:
(Simple)

 10-dma: 1598
 50-dma: 1512
200-dma: 1446



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

CBOE Market Volatility Index (VIX) = 12.88 -0.31
CBOE Mkt Volatility old VIX  (VXO) = 13.23 -0.49
Nasdaq Volatility Index (VXN)      = 19.84 -0.17 


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

          Put/Call Ratio  Call Volume   Put Volume

Total          0.83        874,753       723,012
Equity Only    0.76        641,624       489,330
OEX            0.92         46,438        42,571
QQQQ           6.38         24,607       157,069


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

Bullish Percent Data

           Current   Change   Status
NYSE          74.7    - 1     Bear Correction
NASDAQ-100    80.0    + 2     Bull Confirmed
Dow Indust.   66.6    + 0     Bull Confirmed
S&P 500       73.2    - 1.4   Bull Confirmed
S&P 100       75.0    + 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: 1.19
10-dma: 1.03 
21-dma: 1.00
55-dma: 1.07


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    1534      1333
Decliners    1255      1701

New Highs     115        63
New Lows       16        18

Up Volume   1224M     1123M
Down Vol.    800M     1125M

Total Vol.  2051M     2280M
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


=================================================================
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Do not duplicate or redistribute in any form.







PremierInvestor.net Newsletter                 Thursday 12-09-2004
                                                    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: QLGC, STJ

Stock Splits
  Announcements: None    

Net Bulls (Tech Stocks)
  Closed Bullish Plays: SEBL

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

QLGC - tech stock long -
  This may be a new bullish entry point on QLGC.
  The stock is holding up well in spite of negative
  news in the semiconductor sector lately.
 
STJ - non-tech long -
  This could be a new bullish entry point in STJ.
  The stock is bouncing from its simple 10-dma 
  and looks ready to hit another new high.


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

None



Active Trader (Non-tech Stocks)
  New Bullish plays:    --delete if you don't have any
  New Bearish Plays:    --delete if you dont' have any
  Closed Bullish Plays: -- delete if you don't have any
  Closed Bearish Plays: -- delete if you dont' have any

High Risk/Reward
  New Bullish plays:    --delete if you don't have any
  New Bearish Plays:    --delete if you dont' have any
  Closed Bullish Plays: -- delete if you don't have any
  Closed Bearish Plays: -- delete if you dont' have any

Stock Splits
  Announcements:       Ticker here

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




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

============
Closed Plays
============

  Closed Bullish Plays
  --------------------

Siebel Systems - SEBL - close: 10.10 change: +0.09 stop: 9.85

We tightened our stop earlier this week and for good or for bad 
we've been stopped out at $9.85.  Shares of SEBL gapped lower 
under round-number support at $10.00 this morning and opened at 
$9.83.  This was below our stop at $9.85 so we were immediately 
taken out.  It is probably not a coincidence that $9.75, the low 
of the day, happens to be near the simple 200-dma, 40-dma and 
exponential 200-dma.  

Picked on November 17 at $10.18
Gain since picked:       - 0.08
Earnings Date          10/20/04 (confirmed)
Average Daily Volume:       7.5 million 




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

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

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

WFC     Wells Fargo & Co           62.96     +0.54
MO      Altria Group               58.85     +0.82
AIG     American Intl Group        65.67     +0.92
UTX     United Technology          99.45     +1.26
MER     Merril Lynch               58.37     +0.81
ECA     Encana Corp                53.75     +0.88

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

NXTP    Nextel Partners            18.60     +1.27
ATPG    ATP Oil & Gas              16.11     +2.11
GAP     Great Atl. & Pac. Tea       8.91     +1.17
INGN    Introgen Therapeutics       8.82     +1.17

---------------------------------------
Breakout to Upside (Stocks over $20)
---------------------------------------
  
PG      Procter & Gamble           56.38     +1.35
FON     Sprint Fon Group           24.28     +1.78
NXTL    Nextel Comm.               29.81     +1.84
BIIB    Biogen Idec                66.12     +1.59
MON     Monsanto Co                49.90     +1.81
MAR     Marriott Intl Inc          60.27     +1.28
BSC     Bear Stearns              106.55     +3.40

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

ERICY   Lm Ericsson                31.95     -1.35
MBT     Mobile Telesys            122.90     -2.16
ALTR    Altera                     20.47     -1.73
FRO     Frontline Ltd              52.85     -2.69
VIP     Vimpel Comm.               27.10     -3.00
OSG     Overseas Shipholding       58.73     -2.03
JEF     Jefferies Group            38.71     -1.57
KOSP    KOS Pharmaceuticals        35.82     -5.41
CYMI    Cymer Inc                  29.74     -2.25

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

BT      British Telecom            38.48     -0.89
AMD     Advanced Micro Devices     22.10     -0.80
CCRT    Compucredit Corp           25.34     -0.34


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