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Daily Newsletter, Thursday, 02/28/2002

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The Option Investor Newsletter                Thursday 02-28-2002
Copyright 2001, All rights reserved.                       1 of 3
Redistribution in any form strictly prohibited.


Posted online for subscribers at http://www.OptionInvestor.com
************************************************************
MARKET WRAP  (view in courier font for table alignment)
************************************************************      
      02-28-2002           High     Low     Volume Advance/Decline
DJIA    10106.13 - 21.45 10238.70 10104.88 1.36 bln   1652/1448
NASDAQ   1731.52 - 20.36  1773.20  1728.65 1.91 bln   1634/1895
S&P 100   562.41 -  0.68   570.51   562.36   Totals   3286/3333
S&P 500  1106.73 -  3.16  1121.57  1106.73             
RUS 2000  469.37 -  3.24   473.40   467.91
DJ TRANS 2810.93 - 50.13  2879.26  2810.93
VIX        23.06 -  0.03    23.79    22.49
VXN        46.19 +  0.43    47.04    44.81
TRIN        1.32 
PUT/CALL    0.83
************************************************************ 

Techs Continue To Lead, Down!

Tech stocks weighed heavily on the Dow again as another big intraday
gain evaporates before the close. For the second day in a row the
Dow has given up nearly 130 points from the day's highs near 10250.
This is not the kind of trend traders like to see. Volume increased
on today's drop where is was light earlier in the week. A barrage
of speeches by Fed governors was unable to press home the advantage
of positive economic reports this morning.



 



 



 

Starting the day was a break out in the Chicago PMI to 53.1, which
is the first indication of business expansion in this indicator in
the last eighteen months. A number over 50 indicates expansion. New
orders shot up to 59.5 from 48.7 in January and order backlogs turned
positive as well. The employment index rose to 36.3 from 23.2 indicating
that production is growing. All in all these are highly bullish reports.

Adding to the bullish PMI was a 4Q GDP estimate that soared over 
current estimates. At 1.4% growth it nearly doubled prior estimates
and if it is anywhere near the actual number will show that the
recession was the lightest economic correction in modern times. This
was also very bullish with estimates for the full 2002 year now
in the 2.5% to 3% growth range. Consumer spending was revised upward
to 6.0% annualized in the 4Q but remember there was nearly $60 billion
in auto sales as a result of the interest free financing deals. The
expected fall off in 1Q auto sales has not occurred with only a 
moderately seasonal softness. 

The negative items were a continued drop in telecom and IT spending
along with a drop in orders for computers despite an up tick in January.
Also, business construction is experiencing a slow down as leases 
signed during the boom are not being renewed and new office space is
going vacant.

Initial jobless claims for unemployment rose slightly to 378K for the
last week but the prior week was revised downward to only 361K. The
claims appear to have leveled off slightly below 380K which shows there
appears to be a balance between new jobs and newly unemployed but the
employers are still not rushing to refill the ranks. Impacting the
continuing claims number is the number of workers running out of
benefits due to their time expiring. Many states have now put in 
voluntary extensions to the 26 week period due to the number of
unemployed in their state. That makes the continuing claims numbers
suspect even as they rose to 3,492,000 last week. Greenspan indicated
that although the economy is expected to rebound soon that rebound is
likely to be moderate and unemployment could rise to 6.5% before a
full recovery is felt. Contributing to the theory that jobs are still
tough to find was the Help Wanted Index which was flat at 47 for the
second month. Slightly improved from the Nov lows of 45 but still flat.
No new ads but no further drop.

The positive economic news was no help to Genesis Microchip (GNSS)
which lost -17.51 on news that the merger with Sage could be dilutive
and not accretive as previously thought. CIBC analyst Robert Adams
downgraded the stock to buy from strong buy but cut his price target
to $45 from $85. Considering the high this week was near $45 the news
and the downgrades, three in all, hammered the stock price. Did I 
mention we picked GNSS as a put play at $45 on Feb-14th. We dropped
the play today with a -$21.51 change since picked.

Shares of Riverstone Networks dropped -50% to $3.82 after saying that
4Q sales would be in the $54 million range instead of $65 million as
previously expected. This was also notable as the first time in 12
quarters that sales volume fell instead of rose. RSTN said it would 
cut more of its workforce and attempt to cut costs by another -10%
and would eliminate certain products. The networking sector just can't
get a break and with this news on top of the CSCO downgrade on Wednesday
the NWX.X hit a new five month low. Cisco attempted to rally from its
$14.16 low from yesterday but early gains evaporated to close flat
for the day. Rumors persist that Cisco will be the next Enron and 
while nobody really believes it the pressure and the volume is intense.
CSCO traded over 100 million shares on Thursday and 122 million on
Wednesday. As they say on the street, Cisco is for sale!

Adding to today's tech wreck was the warning from Gateway that they 
would lose as much as $120 million in the first quarter. The CEO was
glowing on CNBC that although things were tough they were on track
for profitability. Those profits would not come in 2002 as previously
expected but had now been pushed into 2003. GTW dropped into the mid
$4 range but the real impact was to Nasdaq heavyweights Dell and Intel 
which fell on the warning. INTC shook off a bounce to $31.50 earlier 
in the week and set a new four month low of $28.50 today.

Other warnings included PDLI, which announced earnings inline with
estimates but warned for the entire 2002 year. MBG warned but it is
not a mainline company and the impact on the markets will be muted.
MBG has been climbing nearly vertically out of the September bottom
and this could slow that rate of climb. DIS was hit by a downgrade
by Goldman Sachs after the company expressed concern over future
earnings. Disney's CEO was on Capitol Hill today complaining about
the piracy of movies and their availability on the Internet. Cigna
dropped -$4 on news that the Department of Justice was investigating
their cost reporting practices over the last 10 years. AMR warned
that they expected a loss for the full year but were unable to provide
an estimate because the full impact on air travel from the 9/11 attacks
will continue to be significant throughout 2002. MSFT lost ground
slightly after the Justice Dept filed a revised settlement agreement
after taking over 30,000 comments from consumers. MSFT said the 
revised agreement was mostly new language designed to make it more
understandable to third parties.

EBAY was one of the few winners on Thursday. After being hammered by
a downgrade from Lehman Bros. Holly Becker on Wednesday a different
view was posed by Mary Meeker at Morgan Stanley. A little competition
between Internet analysts or the start of a fight? Holly said
the company may not have the momentum to continue growing at the
prior rates and increased competition by Yahoo and Amazon could slow
growth. Meeker said the +64% revenue growth last year would be met
by +125% international growth in 2002 and the category expansion
and fixed price efforts were gaining ground. EBAY is now the fourth
largest used car seller in the nation. Meeker said the E2E efforts
were exploding and cited IBM as the largest seller on EBAY and they
took that position from SUNW. EBAY gained nearly +3 on the Meeker
comments. She is still able to move those Internet stocks it appears.

With all the bullish economic news why are the markets still struggling?
The answer it appears is historical valuations and cautious comments
by everyone with a microphone. Several times, maybe dozens, this week
the Nasdaq PE has been called into question by the various talking
heads. Reporters are parroting views by analysts that with a forward
looking PE of 88 or a trailing PE of 45, whichever you prefer, the
tech stocks are very overvalued. Historically that is. Most quote a
traditional PE of 10-30 for growth stocks and a flat market until 
those types of ratios return. While that is smoke for "they don't
know why stocks are struggling" it is still having an impact on the
retail investor sentiment. Add into this environment negative comments
from almost every major CEO interviewed and caution prevails. The 
EDS CEO said today that he saw no turn around this year. The MMM CEO
said he wanted to see concrete evidence of a rebound before he would
acknowledge it existed. That evidence does not yet exist in his mind. 
Even a bullish Greenspan tempered his positive comments with caution 
that any rebound would be moderate.

With the major components of the Nasdaq, including the NWX, SOX, BTK
and GSO heading south it is not surprising that the Nasdaq is having 
trouble sustaining a rally. The tech sector is acting as an anchor for
the S&P and DOW and there appears to be no end in sight. Eventually
the positive economic news will overcome the negative sentiment but until 
that happens we may be doomed to the current ranges. The Nasdaq appears
headed for a retest of 1700, a level that held last Friday. The S&P
has support at 1103 and the Dow at 10065. Should those levels break
on Friday then Monday's gains will be at risk. Recently Fridays 
have been mixed with two of the last three weeks providing short
covering rallies at the close. Should we get an intraday dip I would
expect the same tomorrow. Bears will be afraid of another Monday
rally and Bulls will be hoping for the same. Futures are slightly
positive at 7:15 PM and could be telegraphing a positive day. Either
way the positive economic news will eventually overpower the negative
sentiment hangover and provide a real rally with legs. It just may
not be tomorrow. Continue to be cautious.

Enter very passively, exit aggressively!

Jim Brown
Editor


********************
INDEX TRADER SUMMARY
********************

Trifecta
Austin Passamonte

The past three sessions have seen an early rally off the open and 
euphoria in the bullish media, all smiles & chuckles to start the 
day. Then like clockwork the indexes meet resistance and immediate 
rejection, muddle just below these pivots trying to decide what 
comes next before turning tail and running south into the closing 
bell.

Each day we hear fundamental reasons why this happened, etc, etc 
but that's all irrelevant to the basic facts: markets are dying to 
rally but simply cannot. Beginning and end of story. There just 
isn't enough buying interest to push thru layered webs of 
resistance and Issac Newton stated it simply and best... "What 
can't go up will most assuredly come down".

(Weekly Chart: DRG)


 

The DRG index continues its wedging ways and seems to have taken 
sedatives when it comes to bullish euphoria. Both weekly and daily 
chart (not shown) stochastic values are topping or already in 
overbought extreme, and price action is weak at best. If the Drug 
Sector and any weak components within showing similar charts touch 
resistance of this year-long wedge above, I'd get short in a hurry 
myself! Downward pressure from weak price action as those 
oscillators prove give us upside protection for long puts/short 
shares near resistance.

(Weekly Chart: BTK)


 

The Biotechs don't look quite that ripe for shorting, but I 
wouldn't be getting long this very minute either. Perhaps another 
touch of that bottom trendline spanning one year's time is a 
better spot to manage risk/reward, but not up in space where price 
action suspends itself right now.

(Weekly Chart: OEX)


 

And for our macro picture in summation, the future is clearing up 
for us: either the leading indexes break above these two year old 
channels and hold their ground or we will see mid-line values 
touched again before traders break for summer. Simple as that. 
Indexes are already oversold and should have plenty of muster to 
break higher and end the wicked bear so aptly depicted here. If 
not, look for OEX 500 and all that corresponds before Memorial Day 
arrives.

Summation
I have no idea what is poised to happen next but that's irrelevant 
to me. We have some very clear points of action to watch in sector 
and major index charts and it's the market's next move from here. 
We know how to react accordingly when directional action finally 
resumes and will be fully & amply prepared either way!

Best Trading Wishes,
austinp@OptionInvestor.com


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****************
MARKET SENTIMENT
****************

Different Day, Same Story
By Eric Utley

The dynamic we set forth Tuesday showed up again in Thursday's
session.  The Dow is the place for the bulls.  The Nasdaq is the
place for the bears.  For the day, the Dow finished 0.21 percent
lower.  The Nasdaq-100 finished 1.39 percent lower.

The sectors that performed well Thursday were of the NYSE type,
such as energy, financial, and services.  The poorest
performing sectors, not by surprise, were of the four-letter
type.  Semiconductor, hardware, and software issues traded
poorly, revealing the inherent weakness in tech stocks and
reinforcing the bearish stance of the Nasdaq-100 bullish
percent data.

Separately, the failure of the market to rally in the face
of good economic news was not all that surprising.  Buy the
rumor, sell the news, right?  

The internals of the NYSE remained positive, noting the
slight positive finish in the advance/decline line and the
trouncing of new highs over new lows.  Even the Nasdaq new
highs managed to out pace new lows.

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

Market Averages


DJIA ($INDU)

52-week High: 11350
52-week Low :  8062
Current     : 10106

Moving Averages:
(Simple)

 10-dma:  9989
 50-dma:  9934
200-dma: 10036



S&P 500 ($SPX)

52-week High: 1383
52-week Low :  945
Current     : 1107

Moving Averages:
(Simple)

 10-dma: 1101
 50-dma: 1127
200-dma: 1153



Nasdaq-100 ($NDX)

52-week High: 2771
52-week Low : 1089
Current     : 1359

Moving Averages:
(Simple)

 10-dma: 1396
 50-dma: 1534
200-dma: 1577



Oil Service ($OSX)

The Oil Service Sector continued along its tear with another
1.10 percent gain in Thursday's session, earning the day's
best performing sector spot.  A rally in crude (CL02J) helped
equities higher.

Leading sector components included Global Industries
(NASDAQ:GLBL), Varco (NYSE:VRC), Nabors Industries (NYSE:NBR),
Noble Drilling (NYSE:NE), and Smith International (NYSE:SII).

52-week High: 139
52-week Low :  58
Current     :  93

Moving Averages:
(Simple)

 10-dma: 90
 50-dma: 84
200-dma: 89


Fiber Optic ($FOP)

The opticals earned the day's worst performing sector spot
with its 3.22 percent drop back down to its all-time lows.
Although not a component of the sector, Riverstone Networks'
(NASDAQ:RSTN) blow-up contributed to the weakness in the
opticals.

Leading losers included Williams Communications (NYSE:WCG),
which is on its way to insolvency, Finisar (NASDAQ:FNSR),
PMC-Sierra (NASDAQ:PMCS), and Vitesse (NASDAQ:VTSS).

52-week High: 139
52-week Low :  81
Current     :  81 

Moving Averages:
(Simple)

 10-dma:  87
 50-dma: 108
200-dma: N/A

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

Market Volatility

The VIX finished near its mid-range of the day Thursday
despite the late day weakness in stocks.  It closed below its
converged 10-dma and 50-dma for the third consecutive session.

The VXN finished fractionally higher in Thursday's session.
Nevertheless, it remains near its all-time lows.  Its 50-dma
sits overhead at 47.36.

CBOE Market Volatility Index (VIX) - 23.06 -0.03
Nasdaq-100 Volatility Index  (VXN) - 46.19 +0.43

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

          Put/Call Ratio  Call Volume   Put Volume
Total          0.83        529,104       440,375
Equity Only    0.74        443,290       329,854
OEX            1.64         11,450        18,735
QQQ            3.38         15,526        52,508
 
-----------------------------------------------------------------

Bullish Percent Data

           Current   Change   Status
NYSE          55      + 1     Bull Alert
NASDAQ-100    34      + 0     Bear Confirmed
DOW           63      + 3     Bull Confirmed
S&P 500       63      + 1     Bull Confirmed
S&P 100       67      + 1     Bull Confirmed

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

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

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

 5-Day Arms Index  1.05
10-Day Arms Index  1.31
21-Day Arms Index  1.26
55-Day Arms Index  1.25

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 the do, they can signal significant market turning 
points.

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

Market Internals

        Advancers     Decliners
NYSE      1652           1448
NASDAQ    1634           1895

        New Highs      New Lows
NYSE      174             37
NASDAQ    101             75

        Volume (in millions)
NYSE     1,361
NASDAQ   1,912

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

Commitments Of Traders Report: 02/19/02

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 kept their long position essentially
unchanged, while they added about 4,000 short positions for
a net increase in the group's bearish position.  Small traders
added a small number of longs to their net bullish position.

Commercials   Long      Short      Net     % Of OI 
02/05/02      347,583   401,569   (53,986)   (7.2%)
02/12/02      355,276   412,868   (57,592)   (7.5%)
02/19/02      355,905   416,664   (60,759)   (7.9%)

Most bearish reading of the year: (111,956) -   3/6/01
Most bullish reading of the year: ( 36,481) - 10/16/01

Small Traders Long      Short      Net     % of OI
02/05/02      128,235     64,404   63,831     33.1%
02/12/02      126,730     59,902   66,828     35.8%
02/19/02      130,856     63,311   67,545     34.8%

Most bearish reading of the year:  36,513 - 5/01/01
Most bullish reading of the year:  91,122 - 3/06/01
 
NASDAQ-100

Commercial traders added more longs than shorts for a net
decrease in the group's bearish position.  Small traders
added to both sides, resulting in a small increase in the
group's net bullish position.

Commercials   Long      Short      Net     % of OI 
02/05/02       32,357     35,405    (3,048)  (4.5%)
02/12/02       32,712     34,841    (2,129)  (3.2%)
02/19/02       33,871     35,690    (1,819)  (2.6%)

Most bearish reading of the year: (15,521) -  3/13/01
Most bullish reading of the year:   7,774  - 12/21/01

Small Traders  Long     Short      Net     % of OI
02/05/02       10,416     8,173     2,243     12.1%
02/12/02        9,009     7,415     1,594      9.7% 
02/19/02        9,966     8,073     1,893     10.5%

Most bearish reading of the year:  (9,877) - 12/21/01
Most bullish reading of the year:   8,460  -  3/13/01

DOW JONES INDUSTRIAL

Commercial traders grew more bullish last week by adding about
1,300 contracts to their net bullish position.  Small traders
grew slightly more bearish with the addition of 300 contracts
to their net bearish position.

Commercials   Long      Short      Net     % of OI
02/05/02       21,868    12,068    9,800     28.9%
02/12/02       26,811    16,488   10,323     23.8% 
02/19/02       29,606    17,953   11,653     24.5%

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
02/05/02        5,764    10,528    (4,764)   (29.2%)
02/12/02        4,562    10,038    (5,476)   (37.5%) 
02/19/02        4,654    10,431    (5,777)   (38.3%)

Most bearish reading of the year:  (8,777) - 10/12/01
Most bullish reading of the year:   1,909  -  1/16/01

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


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***********************
INDEX TRADER GAME PLANS
***********************

IS Swing Trade Model: Thursday 2/28/2002
Scalper's Sessions


News & Notes:
------------
From last night's summation: " I'd feel more bullish on Thursday 
if indexes fell at the open, bounced at or above Wednesday lows 
and chart signals turned up from oversold extreme in unison. That 
fantasy could easily be thwarted by markets that pop & drop 
instead. Or sideways, choppy action until another afternoon move."

We got all of that & then some. Another noisy session fit for 
scalping but nothing even close to a true swing trade entry has 
been seen all week. That probably won't happen on Friday, either.


Featured Markets:
----------------
[60/30-Min Chart: OEX]


 

The S&Ps continue to consolidate near resistance but just cannot 
close strong. Attempts to crack the 570 barrier here are met with 
swift & powerful rejection for two sessions now.

[60/30-Min Chart: SPX]


 

These current ascending triangles are bullish by nature, but few 
traders want to game the upside for any length of time. I don't 
blame them one bit, and oscillators suggest lower price action in 
the morning on Friday as well.

[60/30-Min Chart: QQQ]


 

The Qs have fallen and cannot get up. This wedge pattern also 
suggests price action will break higher, and stochastic values 
buried in oversold extreme confer.

Summation:
---------
I personally refuse to hold any plays over the close this week, 
and that goes doubly true for holding calls or puts over the 
weekend. Any plays entered on Friday should be exited that same 
day in my opinion. No swing trade parameters or setups exist 
tonight.


Trade Management:
----------------
Option traders may choose listed In-The-Money (ITM) or Out-The-
Money (OTM) contracts by personal preference. They are selected 
based on volume, open interest and "Delta" values in that order. 
Our preference is usually OTM contracts except for the last few 
days of expiration when ATM or ITM contracts are preferred.

Entry triggers are points where plays are tracked when price 
action breaks above for calls or below for puts. Stops are the 
exact opposite of that. Sell targets are points to exit based on 
index levels or %gain on option contract price as noted.

*No entry targets listed mean the models are idle at that time.


New Play Targets:
----------------
         QQQ                          DJX
Mar Calls: 37 (QQQ-CK)            Mar Calls: 102 (DJV-CX)  
Long: BREAK ABOVE none            Long: BREAK ABOVE none
Stop: Break Below                 Stop: Break Below 
                                

Mar Puts: 34 (QQQ-OH)             Mar Puts: 100 (DJV-OV) 
Long: BREAK BELOW none            Long: BREAK BELOW none
Stop: Break Above                 Stop: Break above 


=====


         OEX                         SPX
Mar Calls: 570 (OEB-CN)           Mar Calls: 1125 (SPT-CE)
Long: BREAK ABOVE none            Long: BREAK ABOVE none
Stop: Break Below                 Stop: Break Below 


Mar Puts: 550 (OEB-OJ)            Mar Puts: 1075 (SPQ-OO)
Long: BREAK BELOW none            Long: BREAK BELOW none
Stop: Break Above                 Stop: Break Above 



Open Plays:
----------
Call plays entered at the open, exited at par.


IS Position Trade Model: Thursday 2/28/2002
Theta Decay & Chopped Stops

News & Notes:
------------
Option traders with a holding period longer than several hours 
continue to get hit by the twin evils of their game: time decay 
and whipsaw action around stops. Values shrink due to theta decay 
as indexes move sideways, and the volatile chop we've seen only 
serves to pick off stop-loss orders held on both call and put 
plays. Intraday trader's market only right now.


Featured Plays:
--------------
None


Summation:
---------
The trend is decidedly down while indexes struggle to rally. We 
cannot in good faith suggest any index or sector option plays that 
will hold for several days or weeks for high-odds success right 
now. 


Trade Management:
----------------
Option traders may choose listed In-The-Money (ITM) or Out-The-
Money (OTM) contracts by personal preference. They are selected 
based on volume, open interest and "Delta" values in that order. 
Position Trade model usually tracks OTM contracts with several 
weeks of time premium left until expiration for buy & hold plays.

Entry triggers are points where plays are tracked when price 
action breaks above for calls or below for puts. Stops are the 
exact opposite of that. 

*No entry targets listed means the model is idle at this time.


New Play Targets:
----------------
None


Open Plays:
----------
None


Sector Share Trade Model: Wednesday 2/27/2002
Up & Down Again

News & Notes:
------------
Another pop & drop session where market action has no direction, 
and intraday trading rules. Other than that, good time to be flat 
or very defensive with longer-term plays.

Featured Plays:
--------------
None


Summation:
---------
Current open plays have stops trailed closer, and no new entries 
to track are listed tonight.


Trade Management:
----------------
Entry triggers are points where plays are tracked when price 
action breaks above for calls or below for puts. Stops are the 
exact opposite of that. Sell targets are points to exit based on 
index levels or %gain on share price as noted.

No entry targets listed mean the model is idle at that time.

* Asterisk means stop-loss level changed since prior posting


New Play Targets:
----------------
None


Open Short Plays:
----------------
None


Open Long Plays:
---------------
IIH             BHH
Long: 4.75      Long: 3.50
Stop: 4.25      Stop: 3.25

HHH             XLE             IYV
Long: 28.00     Long: 26.75     Long: 11.40
Stop: 28.00     Stop: 26.50     Stop: 11.00


QQQ             BDH             SWH
Long: 35.30     Long: 12.75     Long: 40.00
Stop: 34.00 hit Stop: 12.00     Stop: 38.50 hit
Result: -1.30                   Result –1.50

WMH             IAH             MKH
Long: 45.60     Long: 32.75     Long: 57.60
Stop: 45.00     Stop: 31.50 hit Stop: 57.00
                Result: -0.75

OEF             SPY             FFF
Long: 56.65     Long: 111.60    Long: 80.15
Stop: 56.00     Stop: 110.00    Stop: 79.00

IYZ             IYW             IYC
Long: 26.60     Long: 48.10     Long: 55.60
Stop: 26.00     Stop: 46.00     Stop: 55.00

IYG             IVE             IVW
Long: 87.00     Long: 53.10     Long: 58.10
Stop: 87.50     Stop: 52.50     Stop: 57.00

MDY             XLF             XLK
Long: 92.70     Long: 25.25     Long: 21.40
Stop: 93.00     Stop: 25.00     Stop: 20.50


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more; call 1-888-889-9178 or click for more information.

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The Option Investor Newsletter                 Thursday 02-28-2002
Copyright 2001, All rights reserved.                        2 of 3
Redistribution in any form strictly prohibited.


****************
PICKS WE DROPPED
****************

When we drop a pick it doesn't mean we are recommending a sell
on that play. Many dropped picks go on to be very profitable.
We drop a pick because something happened to change its
profile. News, price, direction, etc. We drop it because we
don't want anyone else starting a new play at that time.
We have hundreds of new readers with each issue who are
unfamiliar with the previous history for that pick and we
want them to look at any current pick as a valid play.


CALLS:
*****

None


PUTS:
*****

GNSS $23.49 -17.51 (-15.51) Don't you just love it when you're
in the right place, at the right time?  We've been playing GNSS
to the downside due to the relative weakness of the stock and
bearish analyst comments.  But today provided more than we had
hoped for, as the company provided revised guidance following
the completion of its acquisition of Sage.  That was followed by
a rapid fire series of analyst downgrades, and investors
responding by selling early and often.  By the closing bell, the
stock had lost more than 42% of its value.  Traders with open
puts are smiling big tonight.  Now that we've gotten more than
we asked for, we're going to gladly drop coverage of GNSS and
chalk it up as a big winner.  Now we can focus on other plays
with the potential to deliver.  If you opt to press your luck
with GNSS and try to squeeze more profit out of the play, be
sure to tighten up those stops so you don't give back too much
of your gains.

KSS $67.67 +1.12 (+1.84) We were a little concerned with KSS'
rebound in today's session after its rollover yesterday.  The
stock's bounce came in spite of weakness in the broader market
as well as the Retail Sector Index (RLX.X).  The RLX finished
0.57% lower in Thursday's session.  KSS relative strength has
us dropping coverage on the put play.  Look for weakness early
tomorrow morning to use as an exit from current open plays.


***********************************************************
DAILY RESULTS
***********************************************************

Please view this in COURIER 10 font for alignment
*************************************************

CALLS              Mon    Tue    Wed    Thu

SII      64.65    2.01   0.19  -0.60   1.30  Continues climbing
TDW      38.98    1.32   0.22  -0.40   0.44  Trades very strong
UTX      72.95    0.35   1.75   1.15   0.00  Profit taking ahead
HON      38.12    1.54  -0.34   1.04   0.97  Leading the Dow
BA       45.96    0.18   0.21   0.75   0.06  Watch the 200-dma
MMM     117.93    1.45  -1.15  -0.30  -1.07  Waiting for entry


PUTS

KSS      67.67    1.18   1.21  -1.67   1.12  Dropped, rebound
GNSS     23.49    4.45  -3.36   0.91 -17.51  Dropped, WHOA!!!
GS       80.94    2.96  -0.56  -0.51   0.05  Inside day
QLGC     37.25    1.86   0.08  -3.69  -1.85  Big breakdown!!!
MXIM     45.76    1.71  -1.42  -1.43  -2.07  Working very well
ISSX     23.71   -0.22   0.94  -1.50  -2.26  New, softening
NVDA     51.01    3.91   1.17  -1.85  -2.14  New, 200-dma drop
ALTR     19.07    1.72  -0.78  -1.82  -0.92  New, breakdown


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********************
PLAY UPDATES - CALLS
********************

BA $45.96 +0.06 (+1.20) Traders that have been watching the
powerful sectors lately shouldn't be at all surprised to see
BA continuing to surge higher.  On Wednesday the Dow Transports
($TRAN) closed at a their highest level since early August,
taking out the $2850 resistance level and launching BA to test
its 200-dma near $46.50 before late day selling took some of
the froth out of the recent rally.  The profit taking in
Transportation stocks reflects the nervousness still in this
market, even in a strong sector.  That sector weakness was more
than BA could take on Thursday, and despite pushing through the
200-dma intraday, pulled back in the afternoon.  It is a
testament to the stock's strength that it managed to close in
positive territory at all.  With doji candlesticks the stock has
posted over the past 2 days, we need to exercise caution here.
Daily Stochastics are threatening to roll over from overbought
territory and BA is finding some firm resistance at the 200-dma
($46.48) and may need to gather its strength before powering
higher.  Look to initiate new positions on a rebound from either
the $45 level (the site of the breakout from earlier in the week)
or intraday support between $44.00-44.50.  But make sure the
bounce has the conviction of volume and the $TRAN is pushing
higher again before taking the plunge.  Keep stops in place at
$43.30.

SII $64.65 +1.30 (+2.90) SII ever so slightly pulled back in
yesterday's session after the latest round of inventory
data was released.  The American Petroleum Institute
reported late Tuesday night mixed data on the inventory front;
gasoline and distillate supplies fell, while crude inventory
levels rose.  The mixed data induced a slight pullback in
the broader group, but the sector rebounded in Thursday's
session, carrying SII back up to its relative highs at $65.
We've been expecting more of a pullback in the Oil Service
(OSX.X) group this week, but we haven't seen it yet.  Target
new entries based on your trading style and risk tolerance.
If you prefer trading breakouts, then you might look for an
advance in SII above the $65 level.  Just make sure that the
OSX is strong when attempting an entry on a breakout.  If
you're more of a dip buyer, then continue to wait for a two
or three day pullback in the OSX, which should pressure SII
back down towards its 10-dma, now at $60.90.

TDW $38.98 +0.44 (+1.58) TDW pulled back in yesterday's
session along with the mild weakness in its sector, the
Oil Service Sector Index (OSX.X).  The stock followed its
group higher in today's session, to finish a little better
than 1% higher for the day.  The stock's performance in
today's session tracked the OSX.X very closely, which was
a reminder that traders need to track the index very closely
when gaming entries and exits into the TDW play.  Further
strength in the OSX.X could allow TDW to advance above its
recently established short-term resistance between the $39.25
to $39.50 levels.  A breakout in the OSX above 95 should
cause TDW to advance above its resistance.  If the OSX begins
to pullback in the coming sessions, then watch for TDW to
ease down towards its 10-dma, currently below at the $37.30
level.

UTX $72.95 +0.00 (+3.25) UTX finished in the middle of the
Dow components today with its unchanged settlement for the
day.  Nevertheless, it remains one of the strongest Dow
components and should continue to work higher so long as
the blue chip index does the same.  Without further strength
in the Dow, UTX will most likely pullback to consolidate its
recent rally.  That means options traders who took entries
earlier this week should be thinking of either locking in
gains on open positions or setting tight stops to protect
against downside risk potentially spurred by a pullback in
the Dow.  If the Dow pulls back over the coming sessions,
we'll be watching for UTX to come back down to the platform
of its recent breakout at the $70 level.  There, the 10-dma
will reinforce the support level, making $70 a prime level
for entries on a pullback.  Monitor volume as it should be
lighter on any profit taking related pullback.

HON $38.12 +0.97 (+3.03) HON was the best performing component
of the Dow Jones Industrial Average (INDU) in today's
trading.  The stock finished 2.61% higher in the face of a
late-day pullback in the average.  The stock continues to
display impressive relative strength in light of the
volatile market.  At this point in the stock's trend, traders,
however, should be thinking about either locking in gains
or taking protective measures such as setting tight stops.
We've had a good run in HON this week and don't want to give
back our gains.  The stock could be due for a round of
consolidation after its run higher in today's session.  Daily
oscillators are up in overbought territory, which may increase
the downside risk in the play.  Granted, it's one of the
strongest big cap stocks in the market, it just may be a bit
tired after the recent run.  In terms of new entries, we'd
like to see some of the downside risk removed.  That means we
need to see some sort of pullback in the coming sessions,
possibly back down to the $36 level, where we'd feel more
comfortable taking new bullish plays.

MMM $117.93 -1.07 (-1.07) MMM pulled back for the third
consecutive session on weakness in the Dow Jones (INDU).  The
recent weakness in the stock is starting to set up an entry
opportunity into new call plays.  Ideally, we'd like to see
some more weakness in the Dow going into tomorrow's session,
which should pressure MMM closer to its short-term support
levels.  The stock closed near its support around the $117.50
to $118 area today, which could inspire a bounce in tomorrow's
session.  But with the Dow looking weak going into the close
today, MMM's support might not hold.  In the event of
continued weakness in the Dow, we'd like to see MMM bounce
from the $114 to $115 range.  Such a move would help to
remove some more of the downside risk associated with MMM at
current levels and offer traders a better entry in terms of
risk management.


**************
NEW CALL PLAYS
**************

None


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*******************
PLAY UPDATES - PUTS
*******************

GS $80.94 +0.05 (+1.94) Entry points have been popping up all
over the place lately, especially on our successful put plays.
Owing to the market's tendency over the past several days to
rally in the morning and sell off in the afternoon, our GS play
has presented us with attractive entry points on both of the
past two days as it has rolled over from resistance between
$82.50-83.00.  Granted, the upper bound of that resistance range
is above our $82.50 stop, but there certainly wasn't any arguing
with the way the price peeled off yesterday following the end of
Greenspan's testimony.  The Broker/Dealer index (XBD.X) is
behaving similarly, unable to put together a sustained rally,
continuing to fall back to support near the $460 level.  Look for
GS to fall back under $80 with the XBD falling under $460 before
initiating new positions or else wait for another failed rally
near resistance.

MXIM $45.76 -2.07 (-3.27) Picking on the weakling in a weak
sector is a high odds trading approach and it is paying off right
now in our MXIM play.  After we initiated coverage on Tuesday,
the stock popped up to the $50 resistance level on Wednesday
before resuming its downtrend.  That presented a great entry
point into the play, and then latecomers got another shot this
morning when the early rally failed near $48.50 and the stock
rolled lower from there into the close on volume that continued
to increase.  Adding to the bearish sentiment was the fact that
MXIM took out recent support near $47 on its way to posting its
lowest close since late October.  The PnF chart shows that there
is still more room to fall, with a bearish price target of $42.
Make no mistake, there is some significant support near $45, and
we could be in for a bounce as we head into the weekend.  Look
to initiate new positions when that bounce runs out of steam,
likely in the vicinity of failed support at $47.50, or even
$48.50 in conjunction with renewed weakness in the SOX.  We're
lowering our stops tonight to $49.25.

QLGC $37.25 -1.85 (-3.60) Storage stocks have continued to
languish this week along with those in the Networking sector
(NWX.X).  Our QLGC play was looking weak earlier in the week,
due to its inability to significantly participate in the broad
market rally.  Sure enough, there was some internal weakness
there, and the stock really got moving yesterday morning after
rolling over right at the $43.50 resistance level.  That
provided a great entry point, as it showed that the bulls didn't
have the resolve to push through our stop at that level.  That
rollover led shares of QLGC down to the $36 level on heavy
volume before the stock found any buying support late Thursday
afternoon, yielding a quick bounce back up to $38.  This looks
like a necessary oversold bounce, and we would look to initiate
new positions on another rollover from the $39-40 area, support
from last week that has now failed.  Lower stops to $41.


*************
NEW PUT PLAYS
*************

ISSX – Internet Security Systems $23.71 -2.26 (-3.04 this week)

Internet Security Systems is a global provider of security
management solutions for protecting e-business.  The company's
Adaptive Security Management approach to information security
protects distributed computing environments from attacks, misuse
and security policy violations, while ensuring the
confidentiality, privacy, integrity and availability of
proprietary information.  ISSX delivers an end-to-end security
management solution through its SAFEsuite security management
platform coupled with around-the-clock remote security
monitoring through the company's managed security services
offerings.

Sharp reversals have been the name of the game this week as the
broad markets have made it three for three.  Each of the past 3
days has seen the broad market indices reverse their early gains
in the afternoon session and sell off into the close.  Well,
we've got a stock that did the same thing on Thursday.  Shares of
ISSX plunged below long-term support near $25 (also the site of
the 50% retracement of the stock's gains between September and
January) early this morning and dropped almost to the $22 level
before staging a sharp recovery.  Short-lived, that recovery came
to an abrupt end as sellers hit the stock again just below the
$26 level, wiping out most of the intraday gains.  By the closing
bell, ISSX had given up 8.7% on volume more than 6 times the ADV.
Now that's a high-volume breakdown!  ISSX is no stranger to
weakness either, as the stock has been rolling lower since the
beginning of the month, and volume has been on the rise for the
past 2 weeks.  Thursday's breakdown in price gave us a fresh sell
signal on the PnF chart with a descending triple bottom
breakdown.  Adding insult to injury, the current bearish count
projects an ultimate bottom for the stock of only $14.  There's
definitely some room to fall in this one.  Look for a failed
rebound near the $25-26 area to provide entry into the play or
else wait for the stock to take out the $22 support level on
continued heavy volume.  Our coverage stop is initially in place
at $26.50.

BUY PUT MAR-25*ISU-OE OI=320 at $3.60 SL=1.75
BUY PUT MAR-22 ISU-OX OI= 23 at $1.75 SL=0.75

Average Daily Volume = 2.55 mln


NVDA – NVIDIA Corporation $51.01 -2.14 (+1.09 this week)

NVIDIA Corporation designs, develops and markets 3D graphics
processors, graphics processing units and related software that
set the standard for performance, quality and features for
every type of desktop personal computer user.  Used in a wide
variety of application including games, the Internet and
industrial design, the company's products were the first to
incorporate a 128-bit multi-texturing graphics architecture.
This design approach delivers to users a highly immersive,
interactive 3D experience with compelling visual quality and
stunning effects at real-time frame rates.  NVDA sells its
products to major PC manufacturers such as Compaq, Dell,
Gateway, Hewlett-Packard and IBM.

So many over-inflated Chip stocks, so little time!  While the
markets have tried to build (unsuccessfully, we might add) on
their gains earlier in the week, the Semiconductor index
(SOX.X) has seen some concerted selling, with each rally
attempt being turned back at lower levels.  Just a week ago the
SOX was flirting with a breakdown under the $500 support level
and after a quick rebound and subsequent failure, it is right
back in the same boat.  But this time, the daily Stochastics are
just beginning a short-cycle bearish reversal, giving the index
room to fall.  No doubt, the meltdown in shares of GNSS weighed
heavily on the sector on Thursday, but there are some other
bloated names in the sector that we can exploit.  Shares of NVDA
have been having a rough time since the first of the year, and it
looks like the next down leg is just getting started.  After
failing to hold above the $56 resistance level on Wednesday, the
rally failed and sellers have clearly been in control since
then.  Still, NVDA hasn't given us the big breakdown that will
usher in the next leg down in this 2-month series of lower highs
and lower lows.  Last week's lows were put in near $49.50, and
momentum traders will want to see that level taken out on solid
volume before taking a position.  But the real obstacle for the
bears will be the combination of the 200-dma ($48.45) and the
50% retracement of the fall rally, which sits at $48.21.
Breaking below that level will really open up the floodgates of
selling and likely push the stock down towards the 62%
retracement, which currently rests at $42.44.  The PnF chart
paints an even more bearish picture, with the most recent sell
signal giving a bearish target of $35.  Even with all that
potential downside, we'd still prefer to get one more bounce to
sell into before taking a position, and a failed rally in the
$54-55 area would be ideal.  In order to give the stock some
room to move, we're initiating the play with a liberal stop
at $56.

BUY PUT MAR-55 RVU-OK OI= 6022 at $5.70 SL=3.75
BUY PUT MAR-50*RVU-OJ OI=10855 at $3.10 SL=1.50
BUY PUT MAR-45 RVU-OW OI= 2034 at $2.25 SL=1.00

Average Daily Volume = 9.94 mln


ALTR - Altera $19.07 -0.92 (-0.80 this week)

Altera Corporation designs, manufactures and markets programmable
logic devices (PLDs) and associated development tools. PLDs are
semiconductor integrated circuits that customers can program using
its proprietary software, which operate on personal computers and
engineering workstations. 

Valuation and growth concerns continue to pressure shares of
semiconductor issues.  The Philadelphia Semiconductor Sector
Index (SOX.X) finished 3.10% lower in today's session in part
due to those fears.  Leading the way down was ALTR.  At 79
times this year's earnings, the stock is less than cheap.  The
company reaffirmed its guidance late last night for a revenue
increase of 3 to 5%.  That wasn't enough to appease tech
investors who sold the stock lower through the close of today's
trading.  The stock broke down below its short-term support
level on heavy volume, which has shares suspect to further
downside in the coming sessions.  Momentum traders who are big
on breakdowns can look for a decline below today's intraday
low at $18.82 going into tomorrow's session.  Watch for the
SOX.X to crack the 500 level to the downside.  Such failures
should eventually lead to ALTR testing the $17 area over the
coming trading days.  If you're style is to wait for a 
rollover near resistance, then wait for ALTR to rebound on
relatively light volume back up to the $19.50 to $19.75
congestion area.  A rollover from there would offer traders
a favorable entry accompanied with a relatively tight stop
to manage risk.  We're initiating coverage on this play with
a stop at $21.25 in the event of a short covering rally in
the chip shares.

BUY PUT MAR-22 LTQ-OS OI=1606 at $3.60 SL=1.50
BUY PUT MAR-20*LTQ-OD OI=4481 at $1.85 SL=0.75
BUY PUT MAR-17 LTQ-OP OI=1476 at $0.70 SL=0.25

Average Daily Volume = 6.86 mln



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**************************************************************


**********
DISCLAIMER
**********

Please read our disclaimer at:
http://www.OptionInvestor.com/page/oin/aboutus/disclaimer.html


**************************************************************
ADVERTISING INFORMATION

For more information on advertising in OptionInvestor Newsletter,
or any Premier Investor Network newsletter please contact:

Contact Support
The Option Investor Newsletter                 Thursday 02-28-2002
Copyright 2001, All rights reserved.                        3 of 3
Redistribution in any form strictly prohibited.


*********************
PLAY OF THE DAY - PUT
*********************

MXIM – Maxim Integrated Products $45.76 -2.07 (-3.27 this week)

MXIM designs, develops, manufactures and markets a broad range
of linear and mixed-signal integrated circuits, commonly
referred to as analog circuits.  The company also provides a
range of high-frequency design processes and capabilities that
can be used in custom design.  MXIM's objective is to develop
and market both proprietary and industry-standard analog
integrated circuits that meet the increasingly stringent
quality standards demanded by customers.

Most Recent Update

Picking on the weakling in a weak sector is a high odds trading
approach and it is paying off right now in our MXIM play.  After
we initiated coverage on Tuesday, the stock popped up to the $50
resistance level on Wednesday before resuming its downtrend.
That presented a great entry point into the play, and then
latecomers got another shot this morning when the early rally
failed near $48.50 and the stock rolled lower from there into
the close on volume that continued to increase.  Adding to the
bearish sentiment was the fact that MXIM took out recent
support near $47 on its way to posting its lowest close since
late October.  The PnF chart shows that there is still more
room to fall, with a bearish price target of $42.  Make no
mistake, there is some significant support near $45, and we
could be in for a bounce as we head into the weekend.  Look
to initiate new positions when that bounce runs out of steam,
likely in the vicinity of failed support at $47.50, or even
$48.50 in conjunction with renewed weakness in the SOX.  We're
lowering our stops tonight to $49.25.

Comments

The Semiconductor Sector (SOX.X) has key support just below
at 500.  A breakdown could induce a broad sell-off in chip
shares.  One of the weaker in the group, MXIM could continue
lower on such a breakdown in the SOX.  Watch the index
closely early tomorrow.  A breakdown would come on a decline
below 495.

BUY PUT MAR-50 XIQ-OJ OI=3981 at $5.10 SL=3.50
BUY PUT MAR-45*XIQ-OI OI=1088 at $2.20 SL=1.00

Average Daily Volume = 5.45 mln



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**************
TRADERS CORNER
**************

Milking Q-Charts, Part VIII, An Owner's Manual
Buzz Lynn
buzz@OptionInvestor.com

This series has gone on longer than I ever dreamed.  What started 
out as simple answers to a few e-mailed questions has taken on a 
life of its own to become the only known existing users guide to 
Q-Charts practical use.  Many of you have already said so, and 
further suggested that I might personally make a small fortune 
selling it to Q-Charts for their users' benefit.  Perhaps.  If 
that's so, then they know where to find me.  

And for the record, I'm open to offers!  But until then, only our 
faithful OIN subscribers will have access to it.  Just in case you 
missed the previous articles, you can catch up on the following 
links:

http://www.OptionInvestor.com/traderscorner/011002_1.asp

http://www.OptionInvestor.com/traderscorner/011702_1.asp

http://www.OptionInvestor.com/traderscorner/012402_1.asp

http://www.indexskybox.com/archive/fieldbriefings/031801_1.asp

http://www.OptionInvestor.com/traderscorner/013102_1.asp

http://www.OptionInvestor.com/traderscorner/020702_1.asp

http://www.OptionInvestor.com/traderscorner/021402_1.asp

http://www.OptionInvestor.com/traderscorner/022602_1.asp

Ready for the next chapter?  Let's get started.  I've had a few 
recent requests for symbols related to market internals - you 
know, volume, advance/decline ratios, TICK and TRIN (aka Arms 
Index), and the like.  Just knowing that there are multiple market 
venues like NYSE, NASDAQ, Russell, Wilshire, and such tells us 
that there are a bucket of symbols - many more that we would care 
to install by hand, one symbol at a time from each market.  That's 
a lot of repetitive motion.

So is there an easier way?  You bet!  In fact, LEAPS Editor, Mark 
Phillips beat me too it in his Trader's Corner article on Tuesday 
night.  Little did each of us know that the other was working on 
it for Prime Time.  But it's called the Breadthalizer (presumably 
for those who are or would like to be intoxicated with all manner 
of market internal detail).  

Want to know the number of U.S. stocks trading?  Or maybe just the 
NYSE or NASDAQ?  How about the number of advancers, decliners, or 
those unchanged?  Up volume, down volume, volume at the bid, 
volume at the ask, block trades, or new lows/highs for the 
day/year?  If it's imaginable, it's in there!  Here's how to get 
it, and how to get the Advancing Volume vs. Declining Volume 
referenced by Mark as well.

Start with an empty workspace or add it to an existing workspace.  
We'll start with an empty one for this example.  Remember, we 
start with a just a gray, empty workspace that looks like this:



 


From the new workspace, click the double quote button on the menu 
icon bar.  Remember too that until you have something in the 
workspace, the majority of icons will be gray and non-functional.

Once you click on the double quote icon, a new quote sheet will 
open up on the workspace that look something like this:



 


Notice one set of buttons has become live.  This is where we will 
begin in our pursuit of the Breadthalizer.  

A word of caution for those of us adding this information to an 
existing workspace: We will still need to add a new quote sheet.  
If we don't, the next step will erase the symbols we have in any 
one of our existing quote sheets.  It isn't a permanent erasure, 
but in order to regain what we previously had, the time-consuming 
task of shutting down Q-Charts WITHOUT saving the workspace, and 
then restarting Q-Charts must be performed.  Hence the warning - 
be sure to have an empty active quote sheet in before you start.

Now back to those new live icons.  They look like this up close:


 


We've seen the first three in an earlier episode.   The fourth one 
that looks like a file folder with SYM on top of it is called 
"Load Symbol File".  That's the one we'll use right now, so go 
ahead and click on it.



 


The above dialogue box should pop up.  From there, select the 
Quote.com Breadthalizer file.  That will open up another box with 
a series of options as follows:



 


There are five choices - All U.S. Stocks, AMEX Stocks, NASDAQ 
Stocks, NYSE Stocks, and 30 Industrial Stocks.  You can experiment 
and select any of these you like.  However, for the broadest 
market spectrum, select All US Stocks, as we'll do for this 
example.  Ready, click, Ta-Da!



 


Wow!  Just look at that data fill in the spaces!  To fully access 
all that's there, you'll need to scroll down using the quote sheet 
scroll bar.  We can also size the quote sheet to fit nearly the 
whole screen in order to make all the data visible, or size it to 
fit wherever we like in an existing workspace.  Truth be known, 
there is a ton of data in there - some of it more useful than 
others.  You can simply delete what you don't want.

Once you have everything you want and have it where you want it, 
remember to save the workspace so it comes up when you open Q-
Charts.  That way, you don't have to reinvent the information each 
time.

Ready for more?  Great!  Anybody interested in knowing how Eric, 
Jeff, and Austin determine what sectors are hot and what sectors 
are not during the course of the trading day?  We're about to 
learn the secret, and it's available to us in Q-Charts if we know 
where to look.

Just like before, pop a quote sheet or use an existing one in 
which you don't mind watching old data disappear, click on the 
Load Symbol File icon again, which should pop up the same dialogue 
box.  Only this time, we'll select US Stock Sector Indexes as it 
appears below:



 


Once we click here, 79 different sector indexes pop into our quote 
sheet.  I have taken the liberty of expanding it to full screen in 
the picture below and randomly eliminating a few symbols from the 
quote sheet (for brevity) because we can then employ another 
useful tool to the mix.  



 

Sharp-eyed readers will notice all that green at the top and all 
the red at the bottom with a few unchanged in between.  By now, 
you are probably saying to yourself, "Hey, my symbols are all 
jumbled up.  What did he do?  Boy, would that ever be helpful to 
see the biggest percentage gainers and losers in descending order 
like that".  Ask and you shall receive!

Simply go to the header column labeled Net %, and click on it once 
for the biggest percentage losers to appear at the top, or click 
twice to see the biggest percentage gainers at the top.  It gets 
better.  You can add columns of data just by right-clicking at the 
top of an empty, gray header column, then selecting the data field 
that you would like to appear there.  Even better, by double-
clicking on the header, it will sort the order of values for that 
column.

One last thing on sorting before we sign off for the night.  There 
is also a Sort button on the live icons we discovered in this 
edition of Milking the Charts.  If in the sea of information we've 
absorbed, the Sort icon isn't coming to mind (it happens to me 
often than I care to think of), here it is again:



 


It's the sixth one down, second from the bottom.  Click on it to 
get the following pop-up box:



 


There are many ways to sort in here that it makes my head swim.  
The Sort box will work with any quote sheet using any and all 
symbols of your choice.  It can sort by these values even if you 
don't have them in the headers of the quote sheet.  It's that 
intuitive.  Want to sort by volume of trades?  Go right ahead.  
While the volume values don't show in the headers, the Q-Charts 
program is quietly working behind the scenes to filter it.  Thus, 
you can be sure that it has the correct order sequence.  As an 
added bonus, you can also control whether the symbols appear in 
ascending or descending order just by clicking the appropriate 
button.

That all for tonight.  See you in the next episode.  Even though 
we can't answer all questions due to the volume, your questions 
are always welcome, and we'll try to get the biggies of the most 
interest answered in the column.

Until next time, Happy Charting!


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