PremierInvestor.net Newsletter Thursday 01-13-2005 section 1 of 2 Copyright (c) 2005, 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: Not A Pretty Picture Watch List: Drugs to Shippers and more Market Sentiment: Earnings Jitters ================================================================= MARKET WRAP (view in courier font for table alignment) ================================================================= 01-13-2005 High Low Volume Adv/Dcl DJIA 10505.83 +112.00 10618.15 10486.17 1.87 bln 1481/1737 NASDAQ 2070.56 - 22.00 2094.80 2068.27 2.15 bln 1167/1926 S&P 100 561.56 - 5.75 567.31 560.47 Totals 2648/3663 S&P 500 1177.45 - 10.25 1187.70 1175.80 SOX 396.17 - 5.70 401.79 395.87 RUS 2000 610.13 - 3.06 616.57 609.06 DJ TRANS 3533.57 - 53.60 3591.89 3532.15 VIX 12.84 + 0.28 12.86 12.37 VXO (VIX-O)13.07 + 0.28 13.42 12.59 VXN 19.09 - 0.19 19.45 18.81 Total Volume 4,242M Total UpVol 1,407M Total DnVol 2,713M Total Adv 3058 Total Dcl 4163 52wk Highs 169 52wk Lows 57 TRIN 1.39 NAZTRIN 1.12 PUT/CALL 0.93 ================================================================= =========== Market Wrap =========== Not A Pretty Picture by Jim Brown After a rebound on Thursday and a positive open thanks to Apple earnings the markets lost momentum early and began to slip. As the day progressed oil prices greased the skids and the closing drop was anything but bullish. Time to take a hard look at the future for January. Economically there are warning clouds on the horizon. The Jobless Claims rose again to 367,000 for the week and the highest level in three months. The Labor Dept was at a loss for the reason and did not try to explain it away as a seasonal adjustment problem. This was +27,000 above the consensus estimate of 340K and it pushed the four week average to 344,000. This was also a new cycle high. This is not a good sign for the economy but it is too soon to tell if this is just post holiday terminations of peak employees or the start of a new trend. Import Prices fell much stronger than expected at -1.3% pulled down mostly by falling oil prices in December. Oil prices fell -11.5% but that drop is rapidly evaporating as oil moves higher in January. Excluding energy, import prices rose only +0.5%. Export prices rose only +0.2%. These numbers will reverse if oil continues its climb. The Retail Sales for December (MARTS) jumped +1.2% led by strong sales in autos. Without those year end specials on cars/trucks that were designed to blowout old models the gains would have only been +0.3%. There are so many different retail sales reports and conflicting numbers it is hard to determine the real truth. Another study out today said holiday sales were up +5.7% for Nov/Dec and the strongest gains since 1999. Autos, furniture and online sales helped ramp up the numbers. Considering the huge support from auto sales are dependent on the very strong year end incentives we can't expect the sales for Q1 to continue to post strong gains. The Manufacturing Alliance Survey headline number fell from 75 to 70 and the second quarterly decline. The index high for this cycle came in 2004-Q2 at 80 and we have seen a drop back to 2003 levels with this report. All components, shipments, new orders, order backlog and margins fell with only inventories showing a gain. The inventory component at 72 is now at the highest level since 1995. This could be bad news if the inventory gain is due to falling sales. Perhaps the report with the most impact on the market was the weekly natural gas storage report that showed a drop of -88 billion cubic feet. Despite warm weather in most of the U.S. there was enough cold climates to overpower the distribution system and cause a significant draw down in inventories. This caused oil prices to spike back over $48 on speculation next weeks expected cold wave would cause an even further drop in supplies. In my oil crisis report I outlined that Chesapeake Energy said 95% of their prior gas wells were between 3-5,000 feet. In 2005 35% will be 13,500 feet or deeper. Gas is becoming harder to find in any quantity and more expensive to produce. The CHK CEO said a nationwide cold snap at the same time would deplete supplies and there would be shortages. He said if all plants were generating at peak capacity there would not be enough gas in the pipeline system to satisfy demand. He said a future shortage was almost guaranteed as more electric generation plants were built because they consume huge amounts of gas. The U.S. is already a net importer of natural gas. As oil sprinted back over $48 and a six week high the markets began to decline. Oil traders said they were afraid supply was going to run short again as demand increases from the coming cold weather but bigger problems ahead were also looming. Over the next two weeks we will see the Presidential Inauguration, Iraq elections and the OPEC meeting on the 30th. They expect increased supply disruptions as the election approaches in Iraq and in the other OPEC countries. There is also a concern building that the inauguration could be a terror target. Those expressing concerns say that we have gone far too long without an event on U.S. soil and this would be a highly visible, hard to defend target. I know we went through this concern period in 2004 for each of the conventions and the Olympics with no problems. This event could be seen as an opportunity to attack the administration directly. Despite all the worry above the real reason for the late afternoon decline was attributed to a Treasury ruling that repatriated cash could not be used for dividends and stock buybacks. In Q4 it was reported that these were allowed uses of the nearly $600 billion in cash that companies were planning on bringing back into the U.S. as a result of the 2004 Repatriation Act. That act allows a bargain basement tax rate on any cash that is brought back into the U.S. and used for a specific number of job creating uses. Companies had hoped to be able to use the money for dividends and stock buybacks. We also saw negativity from a surprise earnings warning from GM. GM announced this morning that profits were going to fall because of lower profits at its financing unit and a $1 billion increase in healthcare costs. GM fell -1.07 on the news but the depression was felt across the entire market. GM is the largest private provider of healthcare in the U.S. and supports hundreds of thousands of retirees, employees and their dependents. The rising cost of health insurance and medical costs is not only impacting GM but all major corporations and continues to spiral out of control. The GM problem is just the latest in a long line of corporate revelations. GM expects earnings to drop to between $4-$5 a share in 2005 compared to an estimated $6.31 for 2004. Another big hit is coming from the financing arm which has had to eat billions in zero percent financing over the last couple years and higher interest rates it has to pay. GM tried to pacify investors by restating its goal of $10 a year in earnings but now says it could be 2007 at the earliest before that goal is met. I am not holding my breath given the continues influx of Asian automakers. Their market share in 2004 was the largest ever and growing rapidly. In 2004 sales by the big three U.S. makers fell to only 58.7% of vehicles sold and its lowest rate ever. Asian U.S. sales grew at a double digit rate in 2004. The higher oil prices accelerated the drop in the Dow Transports with a drop to 3533 at the close. The high for this index was 3823 back on December 30th. This -7.6% drop broke strong November support at 3560 and is very close to the 38% retracement of the gains since August at 3493. This index confirmed the Dow rally in Q4 and is now confirming the Dow drop in 2005. For many weeks in 2004 the TRAN rose while the Dow floundered. It was far stronger and rose despite the record high oil prices. It was very influential in pulling the Dow out of its doldrums in October. The implosion over the last two weeks could be continued profit taking from the strong run with oil prices giving it an added push. Adding to the negativity was the warning from UPS. The -$7 drop in UPS over the last two days has been a major factor in the drop in the TRAN for this week. The drop in UPS on "less than expected volume growth" should not be an indictment of the entire sector. FDX said business could not have been better and affirmed estimates saying they had a strong Q4 and favorable economic conditions ahead. Could it be that UPS is simply losing the ground war and the "FDX 35% cheaper than UPS" ads are winning converts? I believe investors will find this to be the case but they are currently throwing them all out until the outlook clears. Chipmaker CREE announced earnings after the bell and was quickly slaughtered by investors. CREE lost -$7 to $27 after warning that earnings for the current quarter will be well below estimates. This should tank the SOX again on Friday and makes 380 a viable target for the next big drop. The Intel news was unable to provide more than a few minutes of bounce before the weakness appeared again. The SOX closed today at 396 and just a couple points over the pre Intel low at 394. The SOX is proving to be the Achilles heel for the Nasdaq and the CREE news is not going to help. Sun Micro also announced earnings after the bell and while it met earnings the revenue for the quarter was lighter than estimates. It seems a new range of products has failed to excite buyers and shares dropped -5% in after hours. Bears are coming out of the forest in droves. Investors Business Daily ran a headline today saying the "Bull Market Rally is Over" and many believe it. The markets have been unable to find any traction despite hundreds of analysts making public statements that 2005 is going to be a great year in the markets. Considering they were saying we would only see gains of +5% to +8% just a month ago that should make you pause to ponder. TrimTabs said investors withdrew -$3.7B from U.S. stock funds last week and inflows this week have only amounted to $500 mil. International funds saw an inflow of $3.1B the prior week but saw withdrawals of -$685 million for the week ended on Wednesday. Considering TrimTabs had forecasted inflows of $31 billion for all of January this is a huge estimate miss. The markets were counting on that cash inflow to provide a cushion for new year profit taking and it simply did not appear. Analysts are scratching their heads for the reason and suggesting investors want to get past the January events before putting money back into the market. Those events I mentioned before, Inauguration, Iraq elections and OPEC are in addition to earnings. The earnings calendar for 2005 has so far been extremely light and there has been some very mixed results. There is currently no consensus for Q4 as not enough companies have announced to provide a trend of beats, hits and misses. Next week should be a defining week for the markets. Nearly 500 companies will report and we should have a clear picture of guidance by this time next week. The trouble with that view is we have to struggle another week to try and hold the markets above critical support or risk a technical breakdown in addition to the current sentiment breakdown. The sell off this afternoon was ugly. It was ugly because there was not any specific negative stock news and it followed good news from Intel and Apple. The Dow rebound from 10500 on Wednesday was seen as putting a bottom in place for January and today's break back to below 10500 could be seen as negating that bottom. It clearly targets the 38% retracement level of 10425 which is also just above the December low of 10418. Make no mistake. This is the line in the sand that we must not cross. A move below 10425 will negate the bullish uptrend from October and put us right back in the congestion zone from all of 2004. We do NOT want to go there as investors chopped to pieces last year by the range bound trading will tire of the process and move to the sidelines. Dow Chart – Daily Dow Chart – Weekly The Nasdaq is on the verge of a nasty decline as well. The Nasdaq has one more level of weak support at 2050 and the 38% retracement level at 2022. I believe if 2050 breaks we could retrace all the way to 1900. It is too soon to predict that breakage but it will be a critical test. Over the last two days the Nasdaq has broken the uptrend support from August and the 25% retracement level at 2080. Given the good news from Intel and Apple this is not an inspiring performance. Friday will be a pivotal day with the CREE earnings and the potential continuation of today's downdraft. The 2080 support level was also the resistance dating back to Jan-2002. Now that we are back below this resistance it should grow in strength again. Nasdaq Chart – Daily Nasdaq Chart – Weekly The S&P is clinging to support at 1178 and right at the 1175 level I am using as a market sentiment indicator. 1175 was the low back in December and has been tested twice this week. This is a very critical test for market sentiment and the outlook tonight is not good. We could have been the victim of a large sell program at the close but I believe the problem is deeper than that. I mentioned above that money flows have been almost zero and in extreme contradiction to recent norms and predictions. This could be a change in sentiment that will develop into a new leg down. SPX Chart – Daily The SOX could be our leading indicator for the health of the tech sector. Analysts are telling us that the rebound in chip demand has ended for this cycle and 2005 will be a year of rebuilding, retooling and waiting for the next wave of demand to develop from new applications. The SOX has broken 400 and is just above the uptrend support from the 2002 bottom. If the SOX can hold this support around 380 then techs have a chance for a rebound from a higher low. If this support breaks along with the 2004 support low at 360 then techs are in for a very bearish year. SOX Chart – Daily SOX Chart – Weekly For Friday I don't have a very positive outlook. We are right on the edge of switching from a bull market to a bear market in my bias and SPX 1175 must hold along with Dow 10425. Should either break slightly we could still see an end of January rally but I believe the window of opportunity has passed. Funds are faced now with an outlook of protecting prior profits rather than expecting new profits in 2005. Those that held on while others took profits last week are facing a new leg down that could be steep and they could be worrying about protecting their remaining holdings from the bears. A break of 1175/10425 could be the trigger that sends everyone to the opposite side of the boat and begins a sharper downdraft as the boat capsizes. I hope this does not happen but we can't build our future on bullish hopes if there is nothing bullish in the market. So far the January market has been anything but normal and this has to be sending shivers through many money managers as they watched today's drop. Remember my recommendation from Tuesday. I am not a buyer under 1175, I would either be flat or short. Tomorrow is a critical day. There are many possible scenarios and we could still go either way but I would be very cautious of any bounce unless it contains high volume and a very strong advance/decline line. Enter Passively, Exit Aggressively! Jim Brown Editor "The trouble with stretching the truth is that it is liable to snap back." ================================================================== 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 --------------------------------- ONYX Pharma - ONXX - close: 29.64 change: -1.13 WHAT TO WATCH: The meltdown in ONXX is starting to pick up speed. Shares just broke through round-number, psychological support at the $30.00 mark on above average volume. This doesn't bode well for the stock and traders may want to consider bearish positions. We would target a drop toward $26.00-27.00. The P&F chart is much more bearish with a $10 target. --- Lone Star Tech - LSS - close: 33.55 change: +1.62 WHAT TO WATCH: Keep an eye on LSS. The consolidation has bounced back toward the top of its trading range and resistance at $34.00. Aggressive traders may actually want to consider long positions if LSS can trade above $34.40 or the bottom of its October gap down. Technicals are turning positive and its bullish P&F chart points to a $47 target. --- Overseas Shipholding - OSG - close: 53.36 change: +0.96 WHAT TO WATCH: OSG is another shipping/oil-tanker play that is beginning to bounce after several weeks of profit taking. Aggressive traders can evaluate positions now with support near $51. We would rather wait and see shares breakout over the $55 mark and its 21-dma and 100-dma. By waiting we should be able to see the MACD indicator produce a new buy signal. ----------------------------------- RADAR SCREEN - more stocks to watch ----------------------------------- EXM $23.30 +2.55 - Yet another shipping stock that is bouncing after weeks of profit taking. ANDW $11.79 -0.09 - ANDW has been sliding for a few days now but shares just broke the $12.00 mark after a minor failed rally this morning. The next level of support looks like $10.50-10.75. VRSN $28.56 -1.37 - VRSN is still seeing profit taking and the breakdown under $30.00 looks bad. The next level of support could be the 100-dma (26.25) or the $25 level. =============================== Market Sentiment =============================== Earnings Jitters - J. Brown Another round of high-profile earnings warnings from the likes of Verizon Communications (VZ) and General Motors (GM), both Dow- components, was enough to sink the markets yet again. Homebuilders may be doing well and Apple Computer is knocking the ball out of the park but overall the market remains defensive. Or if you believe some of the market pundits out there this is just a partial retracement of the super strong fourth quarter. Whatever the case investors aren't finding many reasons to be bullish. The headline earnings news has been disappointing and there remains an under current of worry about interest rates, oil and to a lesser extent the Iraqi elections coming up. Market internals continue to favor the bears as well. The real deluge of earnings news doesn't hit until next week so it's possible that money continues to sit on the sidelines as we wait for the first big week of corporate announcements. One thing is for sure - this is one January where the "effect" on the smallcaps has been nonexistent. ----------------------------------------------------------------- Market Averages DJIA ($INDU) 52-week High: 10868 52-week Low : 9708 Current : 10505 Moving Averages: (Simple) 10-dma: 10626 50-dma: 10577 200-dma: 10278 S&P 500 ($SPX) 52-week High: 1217 52-week Low : 1060 Current : 1177 Moving Averages: (Simple) 10-dma: 1189 50-dma: 1187 200-dma: 1132 Nasdaq-100 ($NDX) 52-week High: 1635 52-week Low : 1301 Current : 1545 Moving Averages: (Simple) 10-dma: 1571 50-dma: 1580 200-dma: 1466 ----------------------------------------------------------------- CBOE Market Volatility Index (VIX) = 12.84 +0.28 CBOE Mkt Volatility old VIX (VXO) = 13.07 +0.28 Nasdaq Volatility Index (VXN) = 19.09 -0.19 ----------------------------------------------------------------- Put/Call Ratio Call Volume Put Volume Total 0.90 893,271 799,634 Equity Only 0.68 711,982 484,745 OEX 0.68 43,216 29,649 QQQQ 2.44 20,168 49,245 ----------------------------------------------------------------- Bullish Percent Data Current Change Status NYSE 73.1 - 0.6 Bear Correction NASDAQ-100 73.0 - 1 Bull Correction*** Dow Indust. 73.3 + 0 Bull Confirmed S&P 500 74.4 - 0.4 Bull Confirmed S&P 100 76.0 + 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: 1.27 10-dma: 1.34 21-dma: 1.11 55-dma: 1.02 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 1244 1079 Decliners 1563 1925 New Highs 69 52 New Lows 19 39 Up Volume 651M 670M Down Vol. 1179M 1342M Total Vol. 1852M 2100M M = millions ----------------------------------------------------------------- Commitments Of Traders Report: 01/04/05 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 Not much change in the large S&P futures contracts. Professionals remain net bearish and small traders remain net bullish. Commercials Long Short Net % Of OI 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%) 01/04/05 456,255 505,042 (48,787) (5.0%) 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 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% 01/04/05 159,197 111,900 47,297 17.4% 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 have increased their bearish bias just as small traders have increased their bullish bias. Commercials Long Short Net % Of OI 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%) 01/04/05 302,339 620,759 (318,420) (34.5%) 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 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% 01/04/05 279,274 71,151 208,123 59.4% Most bearish reading of the year: (77,385) - 09/02/03 Most bullish reading of the year: 449,310 - 06/10/03 NASDAQ-100 Commercial traders have turned significantly more bearish on the NDX just as the small traders has turned sharply more bullish. Commercials Long Short Net % of OI 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%) 01/04/05 27,226 44,600 (17,374) (24.1%) 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 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% 01/04/05 22,227 8,293 13,934 45.6% 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 are increasing their bearish bias on the Dow Industrials but small traders have jumped ahead in their bearish attitude for the index. Commercials Long Short Net % of OI 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%) 01/04/05 24,704 32,916 (8,212) (14.2%) 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 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%) 01/04/05 5,166 7,596 (2,430) (19.0%) 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 ) 2005 PremierInvestor.net. and The Premier Investor Network. Do not duplicate or redistribute in any form.
PremierInvestor.net Newsletter Thursday 01-13-2005 section 2 of 2 Copyright (c) 2005, 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: EP Stock Splits Announcements: None Active Trader (Non-tech Stocks) Closed Bullish Plays: YUM 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 ================================================================== EP - non-tech long - EP added 1.7 percent on strength in the natural gas sector. The breakout over resistance at $10.60 is very bullish and shares have hit our entry point to go long at $10.61. ================================================================== Stock Splits ================================================================== ================================================================== Active Trader (AT) Non-Tech Stock section ================================================================== ============ Closed Plays ============ Closed Bullish Plays -------------------- YUM Brands! - YUM - close: 45.38 change: -0.66 stop: 45.65 YUM had been consolidating sideways above rising support at its 40 and 50-dma's for days but Thursday's market sell-off was too strong. Shares broke technical support and hit our stop loss at $45.65 to close the play. Picked on December 28 at $47.00 Gain since picked: - 1.62 Earnings Date 02/09/05 (unconfirmed) Average Daily Volume: 1.2 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 --------------------------------- Ticker Company Name Close Change MO Altria Group 62.30 +0.67 COP ConocoPhillips 88.60 +1.33 AET Aetna 128.17 +1.88 APA Apache Corp 51.14 +1.43 UCL Unocal Corp 46.31 +0.81 PD Phelps Dodge 100.65 +2.54 --------------------------------------- Breakout to Upside (Stocks $5 to $20) --------------------------------------- HLIT Harmonic Inc 9.19 +1.70 BBBB Blackboard 16.72 +1.28 CLHB Clean Harbors 17.60 +2.20 VRST Verisity Ltd 11.52 +4.12 IIG Imergent Inc 16.70 +1.00 LCBM Lifecore Biomedical 15.00 +3.50 --------------------------------------- Breakout to Upside (Stocks over $20) --------------------------------------- AAPL Apple Computer 69.80 +4.34 HAL Halliburton Co 40.60 +1.08 FSH Fisher Scientific 62.33 +1.83 NE Noble Corp 51.98 +1.81 JOE St. Joe Co 65.85 +1.20 FDG Fording Canadian Coal 77.57 +4.07 FMD First Marblehead 60.25 +2.85 ------------------------------------------- Breakout to Downside (Stocks over $20) ------------------------------------------- EBAY eBay Inc 103.21 -4.04 VZ Verizon Comm. 37.10 -1.13 UPS United Parcel Service 76.10 -1.08 SBUX Starbucks 55.37 -1.65 GM General Motors 37.32 -1.07 ZMH Zimmer Holdings 77.16 -2.53 BMET Biomet 40.98 -1.06 ----------------------------------------- Recently Overbought With Bearish Signals (Stocks over $20) ----------------------------------------- SYK Stryker Corp 48.17 -1.76 BEN Franklin Resources 66.63 -2.72 CECO Career Education 41.09 -0.95 ================================================================= 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) 2005 PremierInvestor.net. and The Premier Investor Network. Do not duplicate or redistribute in any form.
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