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Daily Newsletter, Wednesday, 01/19/2005

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PremierInvestor.net Newsletter               Wednesday 01-19-2005
                                                   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: Inflated Hopes?
Watch List:  Semis look weak but oil service is not


===============================================================
MARKET WRAP  (view in courier font for table alignment)
===============================================================
      01-19-2005           High     Low     Volume   Adv/Dcl
DJIA    10539.97 - 88.82 10626.28 10536.49 1.86 bln 1063/1797
NASDAQ   2073.59 - 32.45  2105.84  2072.20 2.18 bln  971/2067
S&P 100   563.89 -  5.64   569.53   563.72   Totals 2034/3864
S&P 500  1184.63 - 11.35  1195.98  1184.37
SOX       397.89 -  8.66   407.75   397.76
RUS 2000  617.91 -  6.96   625.38   616.73
DJ TRANS 3552.48 - 36.74  3591.67  3550.43 
VIX        13.18 +  0.71    13.21    12.41
VXO (VIX-O)13.74 +  1.07    13.79    12.77
VXN        19.24 +  0.49    19.43    18.82 
Total Volume 4,054M
Total UpVol    848M
Total DnVol  3,159M
Total Adv  2034
Total Dcl  3864
52wk Highs  143 
52wk Lows    35
TRIN       2.00
PUT/CALL   0.86
===============================================================

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

Inflated Hopes?
Linda Piazza

Inflation was the catch-word in Wednesday's trading.  Market
watchers scrutinized economic releases for signs of inflation and
poured over Fed speeches and the Beige Book for clues as to how
the FOMC felt about the issue.  Inflation had another meaning,
too, with hopes for this earnings season perhaps inflated by the
scarcity of warnings.  Competing bullish and bearish chart
characteristics already predicted choppy trading conditions for
Wednesday, and the attention garnered by each release contributed
to the impression that trading conditions might be choppy.

By the end of the day, that choppiness had resolved into a strong
downward push that thrust many indices below their 50-sma's
again.  The SOX, long ago falling below its 50-sma, dropped below
400 by the close.  Internals had been bearish all day, with the
advdec line negative.  Most sectors dropped, with the SOX; GHA,
the GSTI Hardware Index; DDX, the Disk Drive Index; NWX, the
Networking Index; and XAL, the Airline Index among the sectors
dropping more than two percent.  

Annotated Daily Chart of the SPX:

 

The presence of two confirmed long-in-the-making inverse head-
and-shoulder formations may make it difficult for the SPX to
reach any downside target predicted by this H&S on the daily
chart, if it's confirmed.  Competing chart characteristics often
point to confusion among bulls and bears and sometimes lead to
choppy trading conditions.  The SPX may not yet be finished
building that right shoulder, for example, and might chop around
at the appropriate right shoulder level another day or two before
either confirming the formation or negating it.

Other indices show some of the same chart characteristics.

Annotated Daily Chart of the Dow:

 

The Nasdaq's chart proves more difficult to decipher.

Annotated Daily Chart of the Nasdaq:

 

Wednesday opened to a busy earnings and economic release
schedule, with some release times and dates shaken up from the
usual.  At 7:00, the MBA Refinancing Index jumped 19.1 percent
from the previous week's.  Refinancing activity fell as a total
percentage of mortgage activity, however.  The Composite Index
also jumped, by 16.2 percent on a seasonally adjusted basis.  

In an industry-related release at 8:30, the Commerce Department
released housing starts figures for December, characterizing the
10.9 percent seasonally adjusted increase as occurring at the
fastest monthly rate in seven years.  Starts numbered a
seasonally adjusted annual rate of 2 million units, up slightly
from the forecast 1.9 million.  All regions and subcategories saw
a rise in housing starts.  Less than two hours later, a component
of December's CPI was to show that housing prices also rose 0.2
percent.  In all of 2004, housing prices rose 3 percent.

A look forward wasn't as cheery, with December's building permits
falling 0.3 percent on a seasonally adjusted basis.  While
housing starts measures the number of units upon which
construction has begun, building permits offers a preview of the
future, as permits often lead housing starts.  Some discounted
the decline in permits, however, saying that the number can be
volatile and that it takes several months to see a trend.  The
number can be affected by weather conditions.  

Later, the Beige Book release was also to show that residential
mortgage lending was generally slower.  However, the DJUSHB, the
Dow Jones U.S. Home Construction Index, proved to be one sector-
related index that eked out a gain, climbing 0.31 percent.

With inflation the catch-word, the dollar was also in focus pre-market. 
Overnight, The Bank of Japan's Governor Fukui made a statement that
impacted the dollar/yen pair during the pre-market session.  He avowed
that during next month's G-7 meeting, Japan would oppose any wording of
the joint statement suggesting that Europe has unfairly absorbed dollar
weakness and that Asian countries should absorb more.  

Why should U.S. equity investors care what the dollar is doing?  A
commentator on CNBC summed up traders' impressions this morning.  He
said that if there is a feeling that the dollar has bottomed, U.S.
markets should see record inflows from Asia and Europe.  

That statement was made after the 8:30 release of the CPI data, with
that data also figuring into the dollar's behavior.  Falling crude
prices in December helped keep consumer prices low, with prices
decreasing 0.1 percent.  Excluding energy and food prices, the core CPI
climbed 0.2 percent, with both numbers characterized as being in line
with expectations.  

It's when examining the yearly numbers in the context of Fed goals and
recently rising crude prices that some worry arises.  The Federal
Reserve's goal of maintaining core inflation rates between 1.5 and 2.5
percent was met, with the core CPI rising 2.2 percent, but that
increase was still the largest since 2001.  The headline number rose
3.3 percent for 2004, the largest increase since 2000, perhaps
dampening hopes that the Fed might be through raising rates for a
while.  While core CPI was in-line with expectations, both for the
month and the year, continued higher crude prices could sharpen the
beaks of the hawks on the FOMC.  

Wages don't seem to be adding pressure.  Adjusted for inflation, real
hourly wages declined 0.8 percent in 2004, falling for the first time
in ten years.  Not adjusted, hourly wages rose 2.7 percent.  Weekly
wages declined 0.2 percent.  The Labor Department also noted that
initial jobless claims fell 48,000 for the reporting week, but some
note that weather and other factors might have impacted that number. 

After the blizzard of economic releases at 8:30, equity futures
climbed, but the dollar fell. Ten-year yields rose. Fed Governor
Bernanke was speaking before the market open and hurried to qualm
inflation fears, saying that risks hadn't risen over the last six
months.  That dollar decline was to be temporary, as was the climb in
equities.  After climbing for another hour, ten-year yields came off
their high, too, drifting lower into the release of the Beige Book,
steadying ahead of the release, and then falling further.

Interest in equities had been damaged by pre-market results by JP
Morgan Chase (JPM), Lucent (LU) and Pfizer (PFE), as well as Motorola's
(MOT) after-hours report Tuesday. By the close, JPM had dropped 1.45
percent; LU, 7.56 percent; PFE, 1.66 percent and MOT, 7.05 percent.

Two of those four, JPM and PFE, are Dow components.  JPM's earnings
disappointed, while LU's revenues did.  MOT received three downgrades
after yesterday's earnings report, and led communications equipment
stocks lower.  In the afternoon, the Beige Book release was to show
that the Dallas district, at least, experienced slowing demand for
consumer communications equipment.  

Headlines proclaimed PFE's quarter soft, with both strong drug sales
and cost-cutting measures contributing to profit gains but with its
adjusted EPS failing to meet estimates.  The company reported a 7
percent revenue increase, but that revenue was in part attributed to a
24 percent increase in Celebrex sales and a 57 percent increase in
Bextra sales.  An FDA advisory committee meeting as to the safety of
those two drugs will be held in mid-February, with their further
contributions to PFE's sales in question.  

Perhaps due at least in part to uncertainty regarding the outcome of
that upcoming FDA meeting, PFE declined to offer guidance for 2005
until an analyst meeting planned for April.  The outcome of that
meeting isn't the only uncertainty regarding PFE.  Of interest to PFE
and many other multinationals is a law signed late last year that
allows for a much lower rate for repatriation for domestic use of
earnings from foreign subsidiaries.  Discussions at PFE and offices of
other multinationals concern how much money can be repatriated, under
what conditions, and for what uses.

As expected, markets chopped around into the 2:00 release of the
Beige Book Report, with that report's summary including a
statement that during December and early January, inflationary
pressures remained in check.  While costs had risen for
manufacturers and builders, the consumer saw only modest cost
increases for final goods and services.  The Boston and
Minneapolis districts reported a sharp rise in input prices, with
modest to high price increases in the costs of building materials
in Atlanta, Kansas City and Minneapolis. Other districts reported
mixed results.  The Dallas district reported that stiff
competition stopped firms from passing rising costs through to
the consumer.

Nine out of twelve districts saw factory output rise.  Consumer
spending increased, with the Fed reporting that the much-disputed
holiday sales season saw retail sales above year-ago levels in
many districts.  Economic activity continued to expand.  In the
context of a generally strong real estate market, some districts
noted slowing in both residential real estate and construction
activity.  As had been shown by the previous Labor Department
release, some firming was seen in labor markets, but no increase
in wage pressures.  Districts reported a mixture of results
related to auto sales, with some districts seeing a rise in
inventories "above desired levels."  

Whatever market watchers had hoped to see in the Beige Book, they
didn't find it.  Although crude prices closed down $0.35 and some
earnings had proven strong, none of that was enough to overcome
the earnings disappointments listed above or those from LUV, AMD
and NWAC or even event fear ahead of the inauguration. After the
bond market closed, equities plunged.  

After the close, EBAY and QCOM joined other reporting companies,
and inflated expectations from traders sent them sharply lower
when they didn't meet those inflated expectations.  As Jim Brown
noted in the OptionInvestor Market Monitor, EBAY blew through
multiple support levels in after-hours trading after
disappointing on profit guidance, but dropped all the way into
possible support.  After-hours trades plunged all the way toward
the 200-ema and -sma.  EBAY had beat on Q4 profit and revenue,
and announced a 2-for-1 stock split.  The conference call pinned
that lowered guidance at least on part to increased investments
in China, a strong point rather than a weak one to some watchers.  

QCOM was also dropping in after-hours trading.  QCOM reported Q1
sales of $1.39 billion against expectations for $1.40 billion,
with profit of 28 cents excluding items against expectations of
27 cents.  However, the company guided analysts to expect Q2
revenue of $1.35-1.45 billion, lower than the previously expected
$1.49 billion.  It also predicted earnings lower than
expectations, but many cautioned that accounting changes could be
responsible for those misses.  

Other reporting companies included COF, missing expectations;
FFIV, beating expectations; QLGC, falling as this report was
prepared after reporting Q3 profit a cent lower and revenue
slightly lower than expected; PLNR, missing on earnings and
warning for 2005; SYMC, falling after reporting higher-than-
expected sales and forecasting revenue higher than current
expectations; and SWKS, falling after reporting profit of 9 cents
against expectations of 13 cents, coming up shy on sales, and
forecasting next-quarter revenue below current expectations. 
Whatever market watchers expected to see, they found their
expectations inflated.

The release of crude oil, gasoline, and distillate inventories
was pushed back to 5:00 p.m.  The Department of Energy and
American Petroleum Institute numbers differed as widely as they
often do, with the API reporting crude inventories up 6.0 million
barrels while the DOE reported them up 3.4 million barrels; the
API reporting distillates down 450,000 barrels and the DOE, up
880,000; and the API reporting gasoline up 5.4 million barrels
and the DOE, up 1.7 million barrels.  Estimates had been for a
rise of 1.5 million barrels in crude inventories, so both the API
and DOE reported a much-bigger-than-expected buildup.  Estimates
had been for a 1.00 million barrel increase in gasoline
inventories, and those beat by estimations of both the API and
DOE, too.  

However, it's the supply of distillates that's been of most
concern during the winter months, and it was in that number that
the API and DOE differed most.  The API reported a drop of
450,000 barrels and the DOE a gain of 880,000, with the DOE's
number close to the expected rise of 750,000.  

With crude traders appearing to accept the DOE's more reassuring
number, crude dropped after-hours.  A drop below $45.68, the 50-
sma, or a climb above $50.00 may be important, but for now crude
prices remain at a level where the validity of the potential H&S
remains questionable.  It hasn't yet been invalidated, but may be
on a climb much above $50.00.

Annotated Daily Chart for Crude for February Delivery:

 

Thursday's economic releases begin with December's Leading
Indicators at 10:00, concurrent with the Fed's Poole discussion
on the economic outlook at a speech in Mississippi.  Those events
are followed by the January Philadelphia Fed at noon and the
Fed's Yellen following up Poole's Mississippi address on the
economic outlook by one on the same topic in San Francisco. 
Money supply figures are to be released at 4:30, but the Semi
Book-to-Bill number at 6:00 might draw the most attention.  

Much-watched earnings tomorrow include before-the-open releases
by a number of retailers and airlines and after-the-close
releases by KLAC and XLNX.    

As noted on many of these charts, long plays currently look iffy. 
Many indices appear to be in right-shoulder building exercises,
with potential confirmation of head-and-shoulder formations
looking imminent, but "looking" imminent and seeing follow-
through are two different matters.  If already in bearish plays
from rollovers beneath the right-shoulder levels, follow indices
down with your stops, noting potential profit-protecting levels
mentioned on the various charts, with the necklines being obvious
levels that might prompt a bounce.

If there's a bounce tomorrow from those neckline levels, options
traders, paying spreads and facing decay in the likely case of
falling volatility indices while equity indices bounce, may not
be able to capitalize on a choppy upward move within a potential
right shoulder formation.  Tomorrow, ahead of the inauguration
and the Semi Book-to-Bill number, for that matter, may not be the
right day to make a bet on a long position from the neckline area
of potential H&S formations, betting against the chart formation
being confirmed.  Shorts could be surprised by such a bounce and
the markets could run away to the upside, but the wiser choice
may be passing up any such potential play if it occurs tomorrow. 

Bearish players should exercise caution, too, as symmetry
suggests that there may be another day or two of choppy shoulder-
forming behavior before indices decide whether to confirm those
formations and head downward or invalidate them and climb toward
recent highs.  Decide before the day begins whether you will be
willing to hold overnight tomorrow if markets plunge and you've
accrued bearish profits. 

Bears will have real difficulty if the indices chop back up
toward the tops of those right shoulders tomorrow into the close.
From this distance, that looks like a good bearish entry, but
that's ignoring the change in tenor that might be present Friday
morning and the role that event risk might be playing in the
markets' declines.  Would that be a good bearish entry ahead of
potential event risk?  Probably not with anything but lottery
money.  It might be better to wait until volatility settles out
Friday morning to make a decision, realizing that a gap move
might be possible, thwarting plans for new entries. 


=================================================================
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
---------------------------------

Cymer Inc - CYMI - close: 24.72 change: -1.61

WHAT TO WATCH: The tech sector looks weak and the SOX 
semiconductor index looks very vulnerable with today's drop under 
the 400 level.  Likewise CYMI looks vulnerable to more selling 
pressure.  CYMI had been consolidating sideways above the $25 
level the last two weeks but shares broke support today on strong 
volume.  The P&F chart looks very ugly with a failed rally and a 
$14 target.  Our only problem is the upcoming earnings report on 
January 25th.  We hate to hold over an event like that so we have 
to pass.  Nimble traders may want to take advantage of CYMI's 
weakness.  




---

Ultratech Inc - UTEK - close: 14.55 change: -1.03

WHAT TO WATCH: UTEK is another semiconductor-related stock that 
also looks poised to move lower.  Shares broke significant 
support at the $16 level and the 200-dma several days ago and 
spent the last week consolidating sideways. Now today's failed 
rally at the 10-dma and a new relative low look like a bearish 
entry point for a drop through potential support at $14 and 
beyond.  Once again our one concern is the upcoming earnings 
report on January 27th.  That's too close for the newsletter to 
play UTEK but individual traders may want to give the strategy 
another look.




---

Titan Corp - TTN - close: 15.17 change: -0.32

WHAT TO WATCH: TTN is part of the computer networks industry.  We 
would have expected that JNPR's strong earnings last night would 
have given the sector a lift.  Instead traders sold the news and 
the NWX networking index was one of today's worst losers down 3.6 
percent.  This lead TTN to a two-percent decline and a new 
relative low.  Look for a drop under the $15 level as a potential 
bearish entry point.  We would target support near $13.50. It is 
worth noting that the P&F chart is still in a bullish buy signal.  
Earnings are expected in late February. 




---

Cal Dive Intl Inc - CDIS - close: 40.65 change: -0.03

WHAT TO WATCH: The OSX oil services index was one of the very few 
sector-specific indices to close in the green on Wednesday.  This 
relative strength led us to look through some of the oil service 
stocks.  We noticed that CDIS has been consolidating sideways the 
last several weeks but is testing resistance near the $42 level.  
Short-term oscillators are bullish and the MACD just produced a 
new buy signal.  Watch for a move over $42 as a potential entry 
point.  Watch for earnings in late February. 





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

ISIL $13.94 -0.59 - ISIL is another semiconductor stock slipping 
to new lows.  The breakdown under $15.00 was a major blow and 
ISIL looks poised to drop towards the $11-12 range. 

WMB $15.80 -0.16 - WMB has been digesting its big November gains 
for the last six weeks.  Currently the trend has been one of 
lower highs but shares are now coiling into a tighter pattern.   
Bulls can watch for a breakout over the $16.25 level as a 
potential entry point.  Bears may want to consider shorts under 
$15.00.

CIEN $2.73 -0.18 - CIEN's four-month up trend is in jeopardy.  
Shares are testing and currently breaking rising technical 
support at the 50-dma. 

ACDO $28.83 -0.30 - We're still watching ACDO for a bullish 
breakout over $30.00 and its 200-dma.  
 

==========================================================
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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
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factors beyond our control.

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Copyright 2005  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.

PremierInvestor.net Newsletter               Wednesday 01-19-2005
                                                   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:  None

Net Bulls (Tech Stocks)
  New Bearish Plays:    SNPS

Active Trader (Non-tech Stocks)
  New Bearish Plays:    EMMS

Stock Splits
  Announcements:        EBAY

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


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

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

  New Bearish Plays
  -----------------

Synopsys - SNPS - close: 17.14 change: -0.56 stop: 17.90

Company Description:
Synopsys, Inc. is a world leader in electronic design automation 
(EDA) software for integrated circuit (IC) design. The company 
delivers technology-leading IC design and verification platforms 
to the global electronics market, enabling the development of 
complex systems-on-chips (SoCs). Synopsys also provides 
intellectual property and design services to simplify the design 
process and accelerate time-to-market for its customers. Synopsys 
is headquartered in Mountain View, California and has offices in 
more than 60 locations throughout North America, Europe, Japan 
and Asia.  (source: company website)

Why We Like It:
Yesterday's oversold bounce in the GSO software index is already 
failing and that's bad news for beleaguered SNPS.  The stock has 
seen some rocky times the past several months and the market 
weakness in January has not been kind to SNPS either.  The up 
trend during the Q4 proved to be nothing more than SNPS filling 
the gap from August.  After essentially filling that gap at year 
end shares turned lower on rising volume. It didn't help that on 
January 10th the company lowered its 2005 earnings outlook.  
Today's action also looks troublesome for SNPS with a new bearish 
engulfing candlestick.  We want to use a TRIGGER to capture a 
breakdown under the $17.00 level.  Our entry point will be $16.95 
and we'll target a drop to support near $15.50.  We'll start with 
a stop loss at $17.90 above today's high.  P&F chart readers will 
note that SNPS is currently in a buy signal but a drop under 
$17.00 would reverse that into a new sell signal.  

Annotated chart:


Picked on January xx at $xx.xx <-- see TRIGGER
Gain since picked:      + 0.00
Earnings Date         02/17/05 (confirmed)
Average Daily Volume:      1.5 million 




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

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


  New Bearish Plays
  -----------------

Emmis Corp - EMMS - close: 17.45 change: -0.32 stop: 17.85

Company Description:
Emmis Communications is an Indianapolis-based diversified media 
firm with radio broadcasting, television broadcasting and 
magazine publishing operations. Emmis owns 23 FM and 2 AM 
domestic radio stations serving the nation's largest markets of 
New York, Los Angeles and Chicago as well as Phoenix, St. Louis, 
Austin, Indianapolis and Terre Haute, IN. In addition, Emmis owns 
a radio network, international radio stations, 16 television 
stations, regional and specialty magazines, and ancillary 
businesses in broadcast sales and book publishing.
(source: company website)

Why We Like It:
This diversified media stock is not having a good year.  Shares 
peaked back in January 2004 and have been withering lower ever 
since.  EMMS tried to form a base over the last few months with a 
sideways trading range between $17.50 and $20.00 but it looks 
like that attempt is failing.  As a matter of fact it almost 
looks like EMMS has produced a bearish head-and-shoulders 
pattern.  Impacting stock performance was a disappointing 
earnings report early this month.  The company hit estimates but 
revenues came in under Wall Street expectations.  Now after five 
days of consolidating between $17.50 and $17.85 shares of EMMS 
are breaking down.  However, we don't want to go short just yet.  
There was a low near $17.40 back in September so we want to use a 
TRIGGER at $16.99 to open the play.  If and when EMMS trades at 
our entry point to go short we'll target a drop toward the $15.00 
level.  The P&F chart confirms the bearish trajectory with a 
$6.00 target.  

Annotated chart:


Picked on January xx at $xx.xx <-- see TRIGGER
Gain since picked:      + 0.00
Earnings Date         01/06/05 (confirmed)
Average Daily Volume:      478 thousand




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

Announcements
-------------

EBAY announces a 2-for-1 split

Internet auction giant eBay (NASDAQ:EBAY) reported Q4 earnings 
after the bell this evening.  Management tried to soften 
disappointing earnings with a 2-for-1 stock split announcement.

The Board of Directors approved the split payable on February 16, 
2005 to shareholders on record as of January 31st.  



About the company:
eBay is The World's Online MarketplaceŽ. Founded in 1995, eBay 
created a powerful platform for the sale of goods and services by 
a passionate community of individuals and businesses. On any given 
day, there are millions of items across thousands of categories 
for sale on eBay. eBay enables trade on a local, national and 
international basis with customized sites in markets around the 
world. Through an array of services, such as its payment solution 
provider PayPal, eBay is enabling global e-commerce for an ever-
growing online community
(Source: Company Press Release)

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

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

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

GDW     Golden West Financial      62.35     +0.72
PHM     Pulte Homes                66.52     +0.51
SUN     Sunoco Inc                 83.88     +0.80
HOV     Hovnanian Enterprises      52.21     +0.53
CBL     CBL & Assoc.               72.02     +0.80
WCI     WCI Communities            30.88     +1.13

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

TRY     Triarc Co                  14.52     +1.78
GRU     Gurunet Corp               10.90     +1.80

---------------------------------------
Breakout to Upside (Stocks over $20)
---------------------------------------
  
MCO     Moody's Corp               85.34     +1.14
KMI     Kinder Morgan              74.43     +1.94
JOE     St. Joe Co                 70.10     +1.72
PENN    Penn Ntl Gaming            67.37     +2.97
IMDC    Inamed Corp                65.38     +1.62
NX      Quanex Corp                50.51     +1.58
DRQ     Dril-Quip                  27.25     +1.25

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

QCOM    Qualcomm Inc               41.07     -1.55
EBAY    eBay Inc                  103.05     -3.32
FNM     Fannie Mae                 67.43     -2.27
STT     State Street               45.06     -1.46
AL      Alcan Inccue Metal         39.25     -5.15
SAFC    Safeco Corp                47.61     -2.63
DRL     Doral Financial            44.00     -5.45
MACR    Macromedia                 25.99     -1.36

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

SLM     SLM Corp                   52.94     -1.34
BEC     Beckman Coulter            68.00     -1.95
IOC     Interoil Corp              36.00     -1.34


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