Option Investor
Newsletter

Daily Newsletter, Tuesday, 12/28/2004

HAVING TROUBLE PRINTING?
Printer friendly version
PremierInvestor.net Newsletter                  Tuesday 12-28-2004
                                                    section 1 of 2
Copyright (c) 2004, All rights reserved.
Redistribution in any form is strictly prohibited.

The entire newsletter is best viewed in COURIER 10 for alignment
=================================================================

In section one:

Market Wrap:       Back From The Brink
Watch List:        Trains, Games and Apparel
Market Sentiment:  Santa Claus, January Effect or Window Dressing

=================================================================
MARKET WRAP  (view in courier font for table alignment)
=================================================================
      12-28-2004           High     Low     Volume   Adv/Dcl
DJIA    10854.54 + 78.40 10859.04 10773.92 1.25 bln 2327/ 919
NASDAQ   2177.19 + 23.00  2177.19  2156.53 1.61 bln 2285/ 921
S&P 100   577.16 +  3.30   577.77   573.81   Totals 4612/1840
S&P 500  1213.54 +  8.62  1213.54  1204.92 
SOX       426.75 +  3.70   427.48   421.51
RUS 2000  654.57 + 10.23   654.60   644.34
DJ TRANS 3811.62 + 57.40  3811.62  3753.96
VIX        12.00 -  0.14    12.40    11.97
VXO (VIX-O)12.31 +  0.15    12.47    12.12
VXN        17.79 -  0.54    18.51    17.74  
Total Volume 3,039M
Total UpVol  2,095M
Total DnVol    877M
Total Adv  5183
Total Dcl  2208
52wk Highs  545
52wk Lows    34
TRIN       0.65
NAZTRIN    1.42
PUT/CALL   0.69
=================================================================

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

Back From The Brink
by Jim Brown

The earthquake depression that weighed on the market
on Monday appeared to lift today with the market 
returning to the recent highs. The Monday dip had 
pushed the indexes back to support and right on the 
brink of a potential trend change. Strong Consumer 
Confidence and strong Retail Sales helped to bring 
traders back to trade but volume was still light. 
That volume will decline even further we near the 
end of the week and the year. 

Dow Chart

 
Nasdaq Chart

 
SPX Chart

 

The holiday finished strong for retailers with a closing
spurt of buying for a +2.7% gain over the prior week. 
According to ICSC-UBS, the people that prepare the weekly
numbers, year over year growth surged +4.3% and the best
gain since June. This was the third consecutive week of
strong gains after a weak post Thanksgiving period. It
appears the majority of buyers waited for the discounts
to increase before releasing their grip on their cash. 
Higher gas prices could have weighed on consumers with
gas up an average of 30 cents a gallon over the same
period last year. 

The biggest boost to the market was a jump in Consumer
Confidence to 102.3 and well over the estimates of 94.0
and November's number of 92.6. Today's 102.3 was a five
month high with gains in all components. The Present
Situation rose to 105.9 from 96.3 and Expectations rose
to 99.9 from 90.2. Those planning to buy homes, autos 
and major appliances also saw a strong bounce. Falling
energy prices and a rising stock market helped produce
the lift. A positive outlook on jobs also contributed 
to the gains. We will get the December Jobs report on
January 7th and analysts are expecting more job gains.

The Consumer Confidence helped provide a boost to the
market on a slow news day but it failed to produce any
decent volume. This week is not known for strong volume
but more of just a constant upward bias. With positive
news all around it appears that trend could continue
for at least the rest of the week. Let the tape painting
continue. 

SIRI fell back to earth today after Banc America raised
its price target to $5.25 from $3.68 per share. This
caused some sharp selling since SIRI was trading at 
$8.10 at Monday's close. 110 million shares were traded
today. XMSR was also upgraded by Banc America with a 
price target of $44, up from $37. XMSR was trading just
under $40 when the upgrade hit the street but fell to 
$38.86 at the close. Valuation concerns were the culprit
after negative comments were made about SIRI. Both 
announced strong subscriber gains for 2004 with XMSR 
up to 3.1 million subscribers after starting 2004 with
only 1.3 million. SIRI jumped from 260,000 to one 
million over the same period. 

Amazon completed two amazing days of gains with a +10%
jump from $39 to $44.62 after multiple upgrades and
positive comments about sales patterns this holiday
season. Bear Stearns upgraded AMZN to outperform on
the belief that they are poised to benefit from the
next wave of e-commerce. BSC raised their price target
to $55 and upped their earnings estimate +3 cents to
44 cents for the current quarter. Amazon is expected
to have sold $2.5 billion in merchandise during the
fourth quarter. Amazon also said it had its highest
volume day ever during December and was selling items
at the rate of 32 per second. They said their watch
shop has been selling more than a watch a minute since
Nov-25th and its music store sold more than one million
units a week for two straight weeks. 

As strong as Amazon may be it is a distant second to 
EBAY. Previous Internet darlings AMZN, YHOO, VRSN as
well as many other high flyers in 2000 are just a 
shadow of their former stock prices. EBAY however has
more than tripled in the last five years and still 
climbing. EBAY is the only Internet stock that has
created its own self sustaining support base. Hundreds
of thousands of sellers now make a living on EBAY 
working out of their homes. Companies use EBAY to sell
excess inventory and offer their core wares to a broader
audience. EBAY recently said China, a strong growth 
market for them, would eventually surpass America as
its biggest revenue producer. Europe has also turned
into a strong performer. EBAY gained +3.30 today on 
the Amazon news and it is only $2 below its all time
high.  

The weekend earthquake shook our markets on Monday as
some traders locked in profits while they waited to 
see if there would be any economic impact on the U.S.
Once the news was fully digested the Nikkei rose to
a five month high and that led a market rebound that
followed the sun westward. Traders holding their breath
after Monday's market swoon finally exhaled as the long
awaited Santa Claus rally finally appeared. 

The Dow rose to close at 10856 and completely erased
Monday's loss. This is the third consecutive day the
Dow has tested resistance at 10850 and today's move
suggests there is a breakout ahead. Today's close was
another new multi-year closing high and only 11 points
away from its intraday highs for the year at 10867. 
Intel was the only Dow component that finished in the
red. Caterpillar was the leader with a +2.37 gain and
a breakout to another new high. There was speculation
that CAT could benefit from the tsunami rebuilding 
effort. 

The Nasdaq surpassed the Dow by posting a strong gain
and surging to a new 3.5 year high and a close at the
high of the day at 2175. This is a very strong move
considering Intel was negative on the day and the SOX
is still clinging to 425 with no hint of breaking that
grip. The Nasdaq gained support from biotechs and from
the Russell. The Russell fell off the planet on Monday
dropping from a new all time high of 651.72 at the
open to 642.84 on the morning dip. Today the Russell
rebounded even stronger than before to close at another
new all time high at 654.35, well over Monday's pre
drop high. This gain was sparked by three strong buy
programs and suggested funds were already putting end
of year money to work or maybe just repainting the 
tape after Monday's drop.   
 
The SPX also rose to a new closing high at 1213 but
it is facing some serious overhead resistance at this
level. If the SOX suddenly found buyers, which it may
any day now, I believe the techs in the SPX would push
it well over this resistance very quickly. Another 
factor holding the SPX back is the energy component 
which accounts for 8% of the S&P. Energy stocks have
softened as we wait for the Wednesday crude oil 
inventories. 

Crude has found support at $42 and has held at this
level for nearly all of December. Wednesday's inventory
numbers are expected to show a drop in inventory levels
due to higher consumption from colder weather. I have
not heard of any material oil disruptions from the
earthquake region but those would not impact inventory
in the U.S. for weeks to come. If there was any drop 
in production related to the disaster the speculators
should have already picked up on it and prices have
not budged. 

For the rest of the week we can expect low volume and
a potential upward bias. The year-end positions have
already been established and funds will be holding 
their breath hoping the current levels hold for the
next three days. There will likely be some tape
painting as we near Friday's close but once those 
performance bonuses are locked in and the calendar
expires it could produce a rocky week ahead. Funds
with huge profits in some high flyers could elect to
take those profits once the calendar year changes. 

The worry for traders is the potential for some 
institutions to exit in front of this event. Offsetting
the potential for profit taking should be the very strong
cash flows into retirement funds over the next two weeks.
It could develop into a question of who blinks first the
bears or the bulls. The next big flurry of economic
reports begins on Friday with the NAPM-NY, PMI and the
Help Wanted Index. Monday has the ISM and kicks off a
week of heavy reporting. All of these things should be
overshadowed by the cash influx but we need to keep our
eye on the potential potholes ahead. Until the trend
changes we should remain long but with increasing 
caution. Watch the volume and the advance/decline line
for clues to the real market strength. 

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

Norfolk Southern - NSC - close: 36.38 change: +0.63

WHAT TO WATCH: Momentum traders may want to take another look at 
NSC.  The stock is inching to new five-year highs again as it 
paces the strength in the Dow Transports index.  The MACD has 
produced a new buy signal.  If you choose to go long be mindful 
of where you put your stop loss and be patient.  NSC doesn't 
climb very quickly.  




---

Gamestop Corp - GME - close: 22.25 change: +0.93

WHAT TO WATCH: The five-week consolidation in GME may be over.  
shares added 4.3 percent to breakout over resistance at $22.00 on 
Tuesday.  Technicals are positive and its MACD has produced a new 
buy signal.  Traders can probably use today's action as an entry 
point with at target of $23.00 or $23.50.  




---

Stage Stores - STGS - close: 42.03 change: +1.74

WHAT TO WATCH: STGS turned in a very solid 4.3 percent rally on 
decent volume to out perform the RLX retail index.  Technicals 
are turning positive and its MACD has produced a new buy signal.  
STGS is currently testing resistance at the $42 level.  Watch for 
a breakout and consider using it as an entry point.  The P&F 
chart looks pretty bullish with a $61 target. 





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

ELBO $41.83 +1.73 - ELBO is video game retailer that is nearing 
resistance at new highs at the $42.00 level.

CMP $24.14 +0.81 - CMP has been a consistent winner over the last 
several months (granted October was tough) and shares look ready 
to begin a new leg higher.


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

Santa Claus, January Effect or Window Dressing
- J. Brown

Once again strong consumer confidence numbers help spur stocks 
higher.  Of course we're in the middle of arguably one of the 
most bullish weeks of the year.  One could easily claim that 
today's gains were due to the seasonal Santa Claus rally, the 
January effect or just plain old window dressing by fund 
managers. 

Like most on Wall Street we expect the next few days to remain 
bullish but there are clouds on the horizon.  The volatility 
indices remain in bearish reversal territory.  The P&F chart 
bullish percent numbers remain overbought in bearish reversal 
territory.  The ARMS index or TRIN moving averages all took a 
turn for the worse with the 5-dma and 10-dma reaching 
overbought/bearish reversal territory.  

Plus, to add to the various technical readings the latest COT 
data calls for caution ahead.  The commercial traders or "smart 
money" has turned more bearish on the S&P 500 e-minis and the 
Industrials.  Meanwhile we've seen a dramatic reversal in the NDX 
futures with commercials suddenly turning bearish and small 
traders becoming net bullish.


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

Market Averages

DJIA ($INDU)

52-week High: 10868
52-week Low :  9708
Current     : 10854

Moving Averages:
(Simple)

 10-dma: 10741
 50-dma: 10401 
200-dma: 10250 



S&P 500 ($SPX)

52-week High: 1213
52-week Low : 1060
Current     : 1213

Moving Averages:
(Simple)

 10-dma: 1204
 50-dma: 1168
200-dma: 1127



Nasdaq-100 ($NDX)

52-week High: 1635
52-week Low : 1301
Current     : 1624

Moving Averages:
(Simple)

 10-dma: 1611
 50-dma: 1552
200-dma: 1456



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

CBOE Market Volatility Index (VIX) = 12.00 -0.14 
CBOE Mkt Volatility old VIX  (VXO) = 12.31 +0.15
Nasdaq Volatility Index (VXN)      = 17.79 -0.54 


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

          Put/Call Ratio  Call Volume   Put Volume

Total          0.69        561,745       387,881
Equity Only    0.48        472,655       227,347
OEX            1.82         10,595        19,280
QQQQ           1.29         23,622        30,501


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

Bullish Percent Data

           Current   Change   Status
NYSE          76.8    + 0.2   Bear Correction
NASDAQ-100    80.0    + 2     Bull Confirmed
Dow Indust.   73.3    + 0     Bull Confirmed
S&P 500       78.2    + 0.2   Bull Confirmed
S&P 100       78.0    + 0     Bull Confirmed


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

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


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

 5-dma: 0.64
10-dma: 0.86 
21-dma: 0.96
55-dma: 1.01


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    2135      2209
Decliners     693       839

New Highs     237       158
New Lows       16         8

Up Volume    961M      987M
Down Vol.    233M      568M

Total Vol.  1225M     1574M
M = millions


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

Commitments Of Traders Report: 12/21/04


Weekly COT report discloses positions held by small specs
and commercial traders of index futures contracts at the 
Chicago Mercantile Exchange and Chicago Board of Trade. COT data 
can be found at www.cftc.gov.

Small specs are the general trading public with commercials being 
financial institutions. Commercials are historically on the 
correct side of future trend changes while small specs tend 
to be wrong.  

S&P 500

Commercial traders are growing more bearish while small traders
are naturally moving the other direction and growing more 
bullish.

Commercials   Long      Short      Net     % Of OI
11/30/04      462,394   491,813   (29,419)   (3.0%)
12/07/04      450,072   498,057   (47,985)   (5.0%)
12/14/04      502,471   540,494   (38,023)   (3.6%)
12/21/04      455,238   502,538   (47,300)   (4.9%)

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
11/30/04      176,031   148,876    27,155     8.3%
12/07/04      187,707   135,776    51,931    16.0%
12/14/04      201,428   164,111    37,371    10.2%
12/21/04      157,015   106,205    50,810    19.2%

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

There has been a dramatic reduction in open positions for
both longs and shorts for both the commercial traders and
small traders.  The net result has produced an increase
in bearishness for professionals and an increase in bullishness
for small traders.

Commercials   Long      Short      Net     % Of OI 
11/30/04      439,074   855,440   (416,366)  (32.2%)
12/07/04      470,553   805,234   (334,681)  (26.2%)
12/14/04      556,980   899,616   (342,636)  (23.5%)
12/21/04      279,694   554,818   (275,124)  (32.9%)

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
11/30/04      386,665     67,926   318,739    70.1%
12/07/04      311,838     66,496   245,342    64.8%
12/14/04      398,915    137,598   261,317    48.7%
12/21/04      227,047     66,140   160,907    54.8%

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


NASDAQ-100

Hmm... we are seeing a dramatic reversal for both commercial
and small traders.  Commercials have significantly cut their
long positions reversing their bullishness into bearishness
for the NDX.  Small traders have drastically reduced their
short positions to flip-flop them from net bearish to net
bullish. 

Commercials   Long      Short      Net     % of OI 
11/30/04       56,629     30,571    26,058   29.8%
12/07/04       57,621     34,313    23,308   25.4%
12/14/04       73,554     50,286    23,268   18.7%
12/21/04       30,614     45,158   (14,544) (19.1%)

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
11/23/04       11,153    39,712   (28,559)  (56.1%)
11/30/04        9,902    44,779   (34,877)  (63.7%)
12/07/04       15,489    49,064   (33,575)  (52.0%)
12/14/04       26,781    58,159   (31,378)  (36.9%)
12/21/04       20,840     9,109    11,731    39.1%

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

Commercial traders have suddenly become a lot more bearish 
on the Dow Industrials.  Meanwhile small traders have
significantly cut their positions on both sides of the trade.


Commercials   Long      Short      Net     % of OI
11/30/04       22,622    25,411   (2,789)     (5.8%)
12/07/04       25,523    27,351   (1,828)     (3.4%)
12/14/04       36,960    38,566   (1,606)     (2.1%)
12/21/04       24,850    31,920   (7,070)    (12.4%)
 
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
11/30/04        5,739     8,536   (2,797)   (19.6%)
12/07/04        5,274     9,507   (4,233)   (28.6%)
12/14/04       13,445    19,089   (5,644)   (17.3%)
12/21/04        5,637     6,961   (1,324)   (10.5%)

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 12-28-2004
                                                    section 2 of 2
Copyright (c) 2004, All rights reserved.
Redistribution in any form is strictly prohibited.

The entire newsletter is best viewed in COURIER 10 for alignment
=================================================================

In section two:

Stop Loss Adjustments:  None

Active Trader (Non-tech Stocks)
  New Bullish plays:    PNC, YUM

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

None


==================================================================
Active Trader (AT) Non-Tech Stock section
==================================================================

---------
New Plays
---------


  New Bullish Plays
  -----------------

PNC Financial - PNC - close: 57.19 chg: +0.68 stop: 54.99

Company Description:
The PNC Financial Services Group, Inc. is one of the nation's 
largest diversified financial services organizations providing 
consumer and business banking; specialized services for 
corporations and government entities including corporate banking, 
real estate finance and asset-based lending; wealth management; 
asset management and global fund services.
(source: company press release)

Why We Like It:
Here we go again!  A couple of weeks ago we tried to play PNC for 
its inverse (bullish) Head & Shoulders pattern.  We got filled on a 
fluke gap higher and then decided to bail when shares struggled 
under resistance at $56 for several days.  Looks like we should 
have held on.  Now PNC has broken through resistance at $56.00, 
which makes the neckline to the H&S pattern.  The pattern points to 
a $63 target, which is less than the bullish P&F chart that points 
to a $70 target.  We're going to go long at current levels with our 
eyes on the $62-63 range.  The plan is to exit before PNC announces 
earnings on January 21st.   We do expect some resistance at $60.00 
so short-term players may want to exit there.

Annotated Chart:

 

Picked on December 28 at $57.19
Gain since picked:       + 0.00
Earnings Date          01/21/05 (confirmed)
Average Daily Volume:      1000 thousand



---


YUM Brands! - YUM - close: 47.00 change: +0.69 stop: 45.49

Company Description:
Yum! Brands Inc., based in Louisville, Kentucky, is the world's 
largest restaurant company in terms of system restaurants with more 
than 33,000 restaurants in more than 100 countries and territories. 
Four of the company's restaurant brands -- KFC, Pizza Hut, Taco 
Bell and Long John Silver's -- are the global leaders of the 
chicken, pizza, Mexican-style food and quick-service seafood 
categories respectively. Yum! Brands is the worldwide leader in 
multibranding, which offers consumers more choice and convenience 
at one restaurant location from a combination of KFC, Taco Bell, 
Pizza Hut, A&W or Long John Silver's brands. The company and its 
franchisees today operate over 2,600 multibrand restaurants. 
Outside the United States in 2003, the Yum! Brands' system opened 
about three new restaurants each day of the year, making it one of 
the fastest growing retailers in the world.  (source: company press 
release)

Why We Like It:
We like YUM as a pure momentum play. The trend has been bullish for 
a long-time but the current leg is now into its fifth month.  Yet 
shares have actually churned sideways for almost all of December 
and are just now breaking out to new highs.  Stochastics and RSI 
are turning higher and its MACD is nearing a new buy signal. The 
P&F chart is very bullish with a $74 target.  We will go long at 
current levels although conservative traders may want to see a new 
high over $47.20 before initiating positions.  Our immediate target 
is $50 but we suspect that YUM can trade higher.

Annotated Chart:

 
Picked on December 28 at $47.00 
Gain since picked:       + 0.00
Earnings Date          02/09/05 (unconfirmed)
Average Daily Volume:       1.2 million 




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

HD      Home Depot                 42.84     +0.61
MO      Altria Group               61.58     +0.73
FRE     Freddie Mac                72.49     +0.70
MET     Metlife                    41.01     +0.60
STI     SunTrust Banks             74.15     +0.70
CAH     Cardinal Health            57.60     +0.77

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

MUSA    Metals USA Inc             19.30     +1.17
OCA     OCA Inc                     6.70     +1.01
CLRK    Color Kinetics             17.55     +1.55
ZOLT    Zoltek Companies           13.65     +1.06
LCBM    Lifecore Biomedical        11.59     +1.23
MFRI    MFRI Inc                   11.20     +1.58

---------------------------------------
Breakout to Upside (Stocks over $20)
---------------------------------------
  
TV      Grupo Televisa             60.70     +1.59
AMZN    Amazon.com                 44.63     +2.38
CTSH    Cognizant Tech             42.77     +2.25
FDS     Factset Research           58.47     +2.28
NNDS    NDS Group                  34.48     +1.69
UNFI    United Natural Foods       31.23     +2.90
IPMT    Ipayment                   50.29     +6.56

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

ALD     Allied Capital             24.46     -1.15
PKZ     Petrokazakhstan            32.99     -2.88
UHS     Universal Health           44.51     -1.18

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

XMSR    XM Satellite Radio         38.89     -0.84
BKUNA   BankUnited Financial       31.97     -0.22
RFGP    First Regional Bancorp     54.00     -0.50

=================================================================
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.

DISCLAIMER

Option Investor Inc is neither a registered Investment Advisor nor a Broker/Dealer. Readers are advised that all information is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor is it to be construed as a recommendation to buy, hold or sell (short or otherwise) any security. All opinions, analyses and information included herein are based on sources believed to be reliable and written in good faith, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. In addition, we do not necessarily update such opinions, analysis or information. Owners, employees and writers may have long or short positions in the securities that are discussed.

Readers are urged to consult with their own independent financial advisors with respect to any investment. All information contained in this report and website should be independently verified.

To ensure you continue to receive email from Option Investor please add "support@optioninvestor.com"

Option Investor Inc
PO Box 630350
Littleton, CO 80163

E-Mail Format Newsletter Archives