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Daily Newsletter, Tuesday, 01/14/2003

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The Option Investor Newsletter                 Tuesday 01-14-2003
Copyright 2003, All rights reserved.                       1 of 3
Redistribution in any form strictly prohibited.


In Section One:

Wrap: Finally Over 8800
Futures Markets: Bears Going Into Hibernation?
Index Trader Wrap: Complacency, or just plain old confidence?
Market Sentiment: Crossing the Barrier
Weekly Manager Microscope: Least Volatile Funds


Updated on the site tonight:
Swing Trader Game Plan: Higher Ground


Posted online for subscribers at http://www.OptionInvestor.com
************************************************************
MARKET WRAP  (view in courier font for table alignment)
************************************************************ 
      01-14-2003           High     Low     Volume Advance/Decline
DJIA     8842.62 + 56.60  8843.37  8746.35 1.65 bln   1948/1307
NASDAQ   1461.01 + 15.00  1461.12  1442.63 1.49 bln   1936/1356
S&P 100   474.31 +  3.48   474.31   468.55   Totals   3884/2663
S&P 500   931.66 +  5.40   931.66   921.72 
W5000    8793.17 + 47.50  8793.17  8706.82
RUS 2000  398.72 +  2.27   398.45   395.11 
DJ TRANS 2382.72 -  4.70  2388.94  2369.74   
VIX        26.55 -  0.97    27.78    26.55   
VXN        41.92 +  0.18    43.75    40.94 
Total Volume 3,281M
Total UpVol  2,283M
Total DnVol    937M
52wk Highs  232
52wk Lows    67
TRIN       0.85
PUT/CALL    .70
************************************************************

Finally Over 8800

Fear of Intel sent the bears into short covering mode just
before the bell and the Dow made its first close over 8800
since Dec-2nd. After more than a week of breaking and then
falling below that number the average finally managed to 
make it stick. The key now is how long will it hold. 

Dow Chart – Daily


 
Nasdaq Chart – Daily


 

The headline economic numbers this morning came from yet
another look at retail sales for December. The last look 
at the December numbers showed that sales overall were +1.2%
including autos. Without the auto gains sales were flat for
the month. Sales at auto dealers and parts stores soared
+5.5% for the month on top of a +2.6% rate the prior month. 
This shows consumers were taking advantage of their home
refinancing bonus by purchasing cars and accessories. The
consumer is still holding up the economy but unemployment
and risk of war is slowing the broader pace. 

The Richmond Fed Survey came in at -3, down two points
from last month. This shows that manufacturing activity
remained weak in November. The new order component remained
flat at 4 and but the order backlog improved slightly. This
is not a signal that the risk of a double dip has passed
but it also does not indicate that the economy is plunging
headlong into the abyss either. 

The economic reports were ignored due to heavy rumor
activity. There were so many rumors flying the commentators
had to list them in order of appearance to keep them straight. 
There was the rumor that Russia was going to allow Saddam
to flee in exile to avoid a war. Libya was also rumored to 
be accepting $3 billion to allow Saddam to take up residence
in that country. Egypt was also reported to be making 
preparations for his arrival. All of these were eventually 
denied but the possibility of an exile to prevent the war
helped lift the markets. 

There were also comments by Hans Blitz that they had found
weapons in Iraq. Then is was refined to be that Iraq had
smuggled weapons. Later it was said that these weapons had
disappeared then it was said it was the same weapons the
inspectors had known about 10 years ago. Literally there
was a different version of all the rumors pounding the 
market about every 15 minutes. There were several rumors
that Iraq had told the inspectors to leave the country. 
There were rumors that the U.S. had told them to leave
by Feb-12th. All denied. By the end of the day the
general consensus of opinion was that Blitz had found 
them in violation of the directives on several counts. 
News programs ran countless sound bites of President Bush 
on the verge of losing his temper and complaining about 
being "sick and tired" of Iraq's games and that time had 
run out. Add to that the new pictures of ships and troops
leaving for the gulf and the bullish morning was quickly 
crushed. Other challenges were a bomb found in a Paris 
cathedral, a plot for a car bomb at JFK and several more
attempted terrorist arrests in Europe. Still nothing 
could keep the market down.

Worse than the Retail Sales report was news that Kmart
would close another 326 stores and terminate up to 37,000
more employees. Remember Kmart? The low cost, no frills
cross between Sears and a dime store said they were going
to keep 1500 stores open and still employ 168,000 if the
bankruptcy plan was approved. Martha Stewart's main
outlet may not be done. They said more cutbacks could be
needed in order to compete with Wal-Mart. Kmart closed
283 stores last year and fired 22,000 workers. Sounds
like a duel is in order. We need the WMT and TGT CEOs to 
sit down at a table for one game of stud poker. Winner
gets Kmart, loser gets MSO. 

The market traded in a very narrow range most of the day. 
It was not until the end of the day that fear of an Intel
surprise caused the bears to cover. Intel did beat the 
street by two cents but the reaction was far from exciting. 
Buried in their guidance was a drop in capital expenditure
spending to between $3.5 and $3.9 billion and well below
the $5 billion whisper number analysts had expected. The
chip equipment makers suffered in after hours as a result. 

The outlook was inline with estimates for revenues to be
flat or show a slight decline in the 1Q. The weakness is
seasonal and not a problem. However, CFO Andy Grove was
far from bullish in a TV interview. He said Intel benefited
from better than expected sales of high end processors in
the 4Q with strength coming from overseas. He said the 1Q
was going to be seasonally weak but twice he said he "saw
no signs of a recovery at all". Business was still moving
but he saw no improvement. The stock dropped initially on
the capital expenditure changes but recovered to close up
slightly in after hours trading. 

That leaves us with earnings from three other major tech 
stocks on Thursday. MSFT, IBM and SUNW will announce
after the close. With Intel, the primary piece in the PC
food chain, saying there are no signs of a recovery the
chances for those companies to produce a major upside
surprise is slim. We already have serious indecision
between the bulls and the bears. What the bulls heard 
tonight should not give them much cause for hope in the
short term. 

The very flat trading range is a problem for analysts. 
Professional traders want to see strong volume with good
follow through on rallies. We did not get that. We have 
been running in place for a week while we wait for the 
earnings. Only the short covering prior to the close 
powered the Dow over 8800. We have now seen the leading
edge of the tech sector say there was no recovery in 
sight. The bulls lost one leg of their support and will
now find it harder to rally buyers for the long term. 

Make no mistake. Closing over 8800 was a key point, just
possibly not key enough. The 200 EMA is lurking just 
above at 8853 and the 200 SMA is 8919. Both should be
strong resistance. Futures are positive at 8:PM and 
odds are good we are going to get a positive open as
long as there are not any negative news events overnight. 
What will be key is the holding power of any gains. If
we end up back below 8800 at the close on Wednesday then
I would be extremely wary. We don't need to add triple
digit gains every day to keep the rally going. Just
knock off one resistance level at a time until we 
break 9050 and the party could begin. There are a lot
of roadblocks between 8842 and 9050 so don't start
counting your chickens just yet. With every earnings
report bulls will lose another reason to buy. The 
short term reasons to buy will diminish more with every 
"no recovery yet" guidance statement. It is critical 
the bulls capture as much high ground as possible this 
week and then fight like heck to hold it. If we did 
get negative guidance from one of the big three on 
Thursday things could get grim. Instead of the bulls 
playing king of the mountain they are going to feel 
like Custer with a mountain of Indians riding down 
to visit at Little Big Horn. Got your ammo ready?

Enter Very Passively, Exit Very Aggressively!

Jim Brown
Editor


******************************
Annual Renewal Special Is Over
******************************

It is over, done, kaput, finished. It is always amazing 
to me that we run this special for four weeks each year.
For four weeks we send out emails proclaiming the virtues
of the special and explaining in a dozen different ways 
why readers should take us up on the offer. But even 
after being deluged with dozens of comments and multiple 
emails for four weeks the rush to register does not occur
until last weekend. Nearly 50% of all the subscriptions 
for the entire four weeks took place in that last 48 
hours. Simply amazing! It restores my faith in the value 
of procrastination and reminds me that if it was not for 
the last minute many things would ever get done.

From the bottom of my heart and that of my team we thank 
you for the commitment you have shown to us and the value
you place on our efforts. We commit to you that we will 
redouble our efforts to make 2003 a very profitable year
both in terms of education and profit. We salute you and
thank you for pointing out our errors when we are wrong 
and patting us on the back when we do good. We feel the 
OIN readers are some of the most committed traders in the
business and part of our extended family. Now let's go 
kick some bear butt.

Jim Brown


***************
FUTURES MARKETS
***************

Bears Going Into Hibernation?
By John Seckinger
jseckinger@OptionInvestor.com

It has been a few weeks since we have really heard from bearish 
traders.  On Wednesday, will bullish traders continue to prosper 
now that some key levels have been taken out?  

Tuesday, January 14th at 4:15 P.M. 

Contract      Last    Net Change    High        Low       Volume    

Dow Jones    8842.62   +56.64     8843.37     8746.35
YM03H        8811.00   +34.00     8835.00     8727.00     17,999
Nasdaq-100   1094.87   +11.87     1097.71     1080.85     
NQ03H        1092.00    +5.50     1101.00     1082.00    198,557
S&P 500       931.66    +5.40      931.66      921.72
ES03H         929.25    +2.25      931.50      920.50    530,772

Contract         S2         S1       Pivot       R1         R2    

Dow Jones      8713.76    8778.19   8810.78    8875.21    8907.80
YM03H          8683.00    8747.00   8791.00    8855.00    8899.00
Nasdaq-100     1074.15    1084.51   1091.21    1101.57    1108.27
NQ03H          1072.75    1082.25   1091.75    1101.25    1110.75
S&P 500         918.41     925.04    928.35     934.98     938.29
ES03H           916.00     922.75    927.00     933.75     938.00

YM03H = E-mini Dow $5 futures   
NQ03H = E-mini NDX 100 futures  
ES03H = E-mini SP500 futures    

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

Note:  The 03H suffix stands for 2003, March, and will change 
as the exchanges shift the contract month.  The contract months 
are March, June, September, and December.  The volume stats are 
from Q-charts.  

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

The March E-mini S&P 500 Contract (ES03H)

A range trade for most of session had traders wondering which 
rumor to believe (various on Iraq and Intel), as well as if 
Tuesday would be the day that bulls finally took a breather.  
Well, it wasn’t, and, based on shares of INTC after-hours (17.93 
versus the 17.79 close), bulls should experience a higher opening 
on Wednesday.  

Let us look at a weekly chart of the ES contract.  Notice how the 
futures contract closed above the 19.1% area last week.  This 
sets up an intermediate objective of 953.50, with resistance 
found at both 920.84 and 937.17 along the way.  So far, this 
week’s range has been between the 937 and 921 area.  Coincidence?  
What a long trader would not want to see is a trade back under 
910 before hitting its intermediate objective.  This would 
represent a failure (seen roughly a month ago during a downside 
move) and should shift sentiment to more bearish levels.   

Chart of ES03H, Weekly


 

Turning to a daily chart, we have the contract higher in after-
hours and pressing the 932 resistance area.  Resistance above is 
seen near 937 on a daily chart as well, and comes in very close 
to the R2 level calculated for Wednesday.  I would be surprised 
to see if the 938-944 level gives without a fight.  Remember, if 
the R2 level is penetrated, look for bids to enter on pullbacks 
(most likely back to R1 and 933.75).  The pivot comes in at 927 
on Wednesday, and a move below this area should start to get 
traders wondering about a post-Intel trap.  This should take the 
contract back towards the blue uptrending line.  

Chart of ES03H, Daily


 

I added a 10-minute chart of the ES contract because it shows how 
the futures contract made various moves above and below its 
intra-day pivot – giving some false signals as a very slow range 
trade took hold.  Most of the time, a contract will gravitate 
around its pivot more than any other level.  This is a period 
when ‘no trading’ sometimes makes sense.  It is easy to say this 
in hindsight, and at the time it did feel as if the contract 
would bid at times more than it did.  Wednesday should give 
better trading opportunities.  

Chart of ES Contract, 10-minute


 

Bullish Percent of SPX: 61.70% and in column of O’s (Recent High 
at 66%, Low of current column at 58%).  There is still risk in 
buying the contract, and note that the number has not risen and 
gone into a column of X’s after Thursday’s, Monday’s, or 
Thursday’s rally.  The Bullish Percent Index would have to 
reverse back to 64 to cancel out the recent column of O’s.  

The March E-mini Nasdaq 100 Contract (NQ03H)

The 1090 area didn’t provide the pivotal area I had expected, but 
the close above this area should portend a move higher on 
Wednesday.  There was another slight failure near the 1100 area, 
and this should be in traders’ minds if bulls take hold in the 
early session.  Also bullish should be the fact that the contract 
used the bottom of a regression channel as support.  This is an 
aggressive channel, and a move back under Wednesday’s pivot at 
1091.75 will start to pressure the lower part of the channel.  
Note that even a move to 1109 would not test the mid-part of such 
a regression channel.  

If weakness does develop and the pivot is taken out on Wednesday, 
look for sentiment to switch to more neutral levels if the NQ 
contract closes under 1083.  Neutral does not mean bearish, since 
the real support area is lower between 1059 and 1071.  Since this 
is a wide range, it really does pay to play levels.  If 1083 is 
penetrated, look for a move to at least 1071 with a stop back 
above the pivot.  

Chart of NQ03H, 120-Minute


 

Bullish Percent for NDX:  66% and in column of O’s (Recent High 
at 82%, last Significant Low at 14%) There is now a new column of 
X’s on the bullish percent chart.  This gives the index a ‘short-
term’ bullish rating.       

The March Mini-sized Dow Contract (YM03H)

The daily range of the YM contract took place between the 61.8 
and 80.9% area.  This certainly makes it hard to forecast 
direction.  The higher daily close continues to indicate the 8866 
area will be tested once again, but conservative traders can 
simply wait until either 8714 or 8866 is hit before jumping in.  
Least resistance appears higher, but a close back under 8714 
should take sentiment towards more neutral reading.  Only a close 
back under 8620 would give more bearish indications.  Notice how 
the 22 DMA is still above the 50 DMA, and that the more 
consolidation at the potential right shoulder should be telling 
bears that they might not get their desired chart pattern.  

Chart of YM03H, Daily


 

A five-minute chart of the YM contact shows how an apex was 
formed, a break lower ensued, but then bulls stepped in and 
squeezed bears heading into the close.  Going forward, a move 
back underneath the 8791 area would break both the apex and 
Wednesday’s pivot  - a bearish development.  Currently, the 
objective is for a move to 8857.  Aggressive longs could look to 
place stops at 8808 if the market opens up above 8816 but not 
higher than closing prices.  Doubtful, but it will be hard to 
effectively manage risk if the YM gaps higher but under 8857.  It 
would then be wise to wait for a move above 8857 or a failure at 
that level.   

Chart of YM03H, 5-minute


 

Bullish Percent of Dow Jones: 56.67% and in column of X’s.  A 
move to 50% would cancel out the recent bullishness.  The last 
significant high comes in at 72%.  There was no change on Monday.  

Good Luck.

Questions are welcomed,

John Seckinger
jseckinger@OptionInvestor.com 


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

Complacency, or just plain old confidence?

Each day I really try and "clean the slate" and look at the 
market from an unbiased viewpoint and look for "negatives" and 
"positives" to try and help me pick a directional trade.

While the more narrow bullish % indicators have been edging 
higher in recent sessions and some stocks begin generating 
reversing point and figure buy signals, the major indexes while 
edging higher are just acting as if a great deal of pressure is 
building, which at some point should be released.

Stronger daily moves up or down in the indexes are often seen 
when at least some portion of bearish or bullish market 
participants "give in" and close out some positions as an index 
or group of stocks trades at a level that the "wrong side of the 
trade" deems a point where the trade has moved too much against 
them.  That "giving in" combines with directional trading of 
trend traders then gives the markets some type of more 
"meaningful" daily move.

It has been several sessions since I had started by analogy of an 
American football game, where bulls had the ball first and goal 
at the bear's goal-line, and while the narrower NASDAQ-100 
Bullish % ($BPNDX) and S&P 100 Bullish % ($BPOEX) did reverse 
back into "bull confirmed" status, even that hasn't been enough 
to move too many bears off the field, and help jolt the indexes 
higher.  

Last night, I thought that semiconductor giant Intel's 
(NASDAQ:INTC) $17.79 +2.35% earnings report from tonight might 
act like a stick of dynamite that might break the logjam that the 
indexes appear to be in.

But there were little "surprises" on the cover from Intel's 
(INTC) earnings release, and conference call comments.  While the 
company said it saw little sign of "underlying growth" in the 
U.S. economy to help build demand for its products, and that it 
was going to cut its 2003 capex budget to between $3.5-$3.9 
billion, which was below consensus, the only visible impact from 
Intel's comments was some negative after-hours action in the 
semiconductor equipment names like Applied Materials 
(NASDAQ:AMAT) $15.36 -0.25%, which fell to $14.60 in after-hours 
trading.  AMAT carries a 1.57% weighting in the NASDAQ-100 Index 
(NDX.X) 1,094.87 +1.09%, while Intel (INTC) carries a 4.8% 
weighting.  

A late session rally by Intel from $17.50 to $17.79 into the 
close helped spur a late session rally in the NASDAQ-100 and 
major market index as they all pegged their highs of the session 
into the close.  It was as if "all eyes were on Intel" and the 
rally into the close had traders expecting some type of big 
upside surprise.  

While Intel traded as high as $18.18 in after hours, when the 
headline EPS number of $0.16 EPS beat estimates by 2-cents, as I 
write, Intel is settling out at $17.93, and its 4.8% weighting 
compared to AMAT, KLAC and NVLS, which are larger semi-equipment 
weightings with 1.57%, 1.1% and 0.61% respectively, have the QQQ 
trading relatively unchanged with their 04:15 PM EST close of 
$27.10.

Are bears simply "complacent" or are they very convinced or 
confident that the upside is limited to the December highs?

It was Thursday evening when I labeled "key levels of resistance" 
as being 472.50 in the OEX, which was broken the next day, and 
while today's OEX close of 474.31 is higher, and the OEX Bullish 
% reversed up into "bull confirmed" status, I wouldn't say the 
OEX has made a break-through session.

It was also on Thursday, that I labeled the "key level of 
resistance" in the QQQ as being $27.06.  While the QQQ has seen a 
high of $27.47 (Monday) and went out at $27.10 today, I wouldn't 
say the QQQ has had a breakthrough session either.

Unfortunately, the relatively little movement in the major 
indexes, gives the daily interval charts a striking similar look 
to how they looked late last week, and some traders looking for 
"action" probably feel a little like Rip van Winkle as each day, 
things look very similar to how they looked the previous day, and 
it is as if we haven't missed much from session to session.

Yet while the "surface" or the indexes themselves are little 
changed, we do see some interesting things from the market 
internals on a day by day basis.

At 03:15 PM today, I thought it would be hard pressed for the 
NYSE and NASDAQ to reach yesterday's volume levels, but by 
session's end, volume picked up enough to have a pretty close 
match with NYSE volume at 1.34 billion (yesterday 1.36 billion) 
and NASDAQ at 1.54 billion (yesterday 1.59 billion).

Broader-breadth was more bullish today compared to yesterday's 
dead heat of equal breadth.  Today, the NYSE finished with 20 
advancers for every 13 decliners, while NASDAQ was equally 
bullish at 19:13.

New highs versus new lows on the NYSE and NASDAQ dropped off a 
bit from Monday's session, with today's trade seeing 92 new highs 
compared to 19 new lows at the big board (yesterday 100:30) and 
NASDAQ showing 69 stocks trading new highs compared to just 15 
new lows (yesterday 100:18).  While this indicator remains rather 
bullish, and bulls don't expect the new highs category to build 
day after day, the slight drop off in new highs hints that bulls 
weren't overly aggressive with their buying and pushing stocks to 
new highs.

Since we're on the topic of "breadth," I'll also mention here 
that the bullish % charts saw no net change in their charts 
today.  In fact, the only change in the bullish % was that the 
S&P 500 Bullish % ($BPSPX) saw a net loss of 0.4%, or 2 stocks to 
reversing p/f sell signals, as the bullish % slipped to 62.4% 
from 62.8% and remains "bull correction" status.  While these 
500-stocks slipped back a bit in the bullish % category, the much 
broader NYSE and NASDAQ Bullish % resembled today's broader 
market bullish breadth and edged up marginally to 52.82% and 
47.21% respective.

With little change in the major indexes on a daily chart, I'd 
like to take some time tonight to discuss how a trader might try 
and trade the QQQ, SPY and DIA on an intra-day basis.  While I 
don't want to make day-traders out of everyone, and don't mean to 
suggest that traders trade just to pass time as you wait for the 
major indexes to make a "meaningful move."  Some index traders 
are holding some February, March put/call positions, and are 
watching the markets on a hourly basis during the day.

Each night in the market monitor (and we've started placing them 
here too) we publish the intra-day pivots and resistance/support 
levels.

Here are tomorrow's 01/15/03 intra-day levels along with a 
comparison of today's intra-day levels.

Index         S2      S1       P      R1     R2
Dow Jones    8714    8778    8810    8875   8907

SPX           918     925     928     935    938

OEX           466     470     472     476    478

NDX          1074    1084    1091    1101   1108

QQQ         26.62   26.86   27.09   27.33  27.56

And can be compared to today's 01/14/03 levels of 

Index         S2      S1       P      R1     R2
Dow Jones    8678    8732    8800    8854   8923

SPX           914     920     927     933    941

OEX           465     468   471.5     474    478

NDX          1059    1071    1088    1100   1116

QQQ         26.30   26.61   27.04   27.35  27.78

Let's take a look at one way a trader can use this information to 
perhaps identify some "key levels" for tomorrow's trading.

In last night's index trader wrap, I thought a QQQ spread at $27 
would be a good index trader's trade, which had a trader 
establishing a rather "neutral" type of trade ahead of Intel's 
earnings and looked for those earnings to potentially drive some 
volatility into tomorrow's trade.  I felt I needed at least $1.00 
move either side of QQQ $27 to have the trade paying off.  My 
PLAN was to initiate the position at $0.50 per call and $0.50 per 
put contract, and look to sell the ENTIRE position tomorrow.

NASDAQ-100 Index Tracking Stock (QQQ) - 5-minute intervals


 

The above chart is a 5-minute bar chart, and DOES NOT show 
extended hours of trade past 04:00 PM EST.  What I'm trying to 
show is how even a "swing trader" or shorter-term day trader can 
use his/her retracement (how levels there tend to be traded).  It 
"makes sense" that the outer edges of our retracement are that 
day's S2 and R2 levels and though of as the "day's range."  While 
the S2 and R2 levels can be exceeded, simply think of it as a 
daily range.  I've also added "dashed" green and red levels to 
show the daily S1 and R1 levels that we posted for the QQQ last 
night.  The QQQ came very close to trading R1 of $27.35 today, 
but fell 3-cents shy.  However, the retracement sure seemed to 
have $26.86 serving up support in the first 15 to 20-minutes of 
trading and kept the QQQ from ever testing today's S1.

Two things that I will note from "today's retracement" is some 
correlative or "coincident" support with TOMORROW's S1 at $26.86 
and the above retracement.  They are "identical" in value, and 
therefore, a shorter-term traders may identify that level as a 
potentially important level of support.  While not "identical," I 
made similar note as it relates to the 19.1% retracement of 
$26.58 and tomorrow's S2 of $26.62.  I didn't have enough room to 
also make comment in the chart, but traders will also pick up the 
similarity of today's S1 of $26.61, with TOMORROW's S2 of $26.62.

I see or note NO correlation with any resistance levels.

Now... while I'm sure only a handful of QQQ traders implemented a 
straddle, I can still use the above information to help plan out 
an EXIT strategy tomorrow.  

While after-hours trading does NOT have all market participants 
casting their votes, it sure doesn't appear that I'm going to get 
my $1 move at the open that I needed.  With expiration taking 
place on Friday, then EXIT execution must be done all at once, 
or.....

I would look to sell the call portion of the QQQ trade if the QQQ 
does NOT trade $27.36 or higher in the first 5-minutes of 
trading.  This would go hand in hand with John Seckinger's "open 
drive" trading strategy for short-term traders.  For me to hold 
the QQQ calls, I want the market to show me something in the 
first 5-minutes to make be think QQQ has a shot at $28. (If the 
QQQ does trade $27.36 or higher, then sell the QQQ puts) and will 
sell the QQQ calls on move BELOW $27.09 PIVOT or $28 as planned.

IF the QQQ does not trade $27.36 or higher in the first 5-minutes 
of trading, and a trader sells the calls, then he/she looks to 
close out the QQQ put at.... 1)  A move back above $27.36, or 2) 
$26.86, or 3) $26.70, which would be "comfortably" above 
tomorrow's S2 and lower support levels found.

As I see it, there has been "little surprise" from Intel's (INTC) 
earnings and conference call, other than some negative skew near-
term toward the semiconductor equipment stocks.

Right now, it sure seems that the market indexes are tightly 
bound and what "action" there is right now, seems to be little 
driven by some of the intra-day news that we get out of U.N. 
weapons inspectors, etc.  

I will NOT focus on the above intra-day levels each day like I 
have tonight, but many traders have been asking for some thoughts 
on trying to scalp some intra-day moves in the QQQ, SPY and even 
the DIA.  Perhaps the above "techniques" and correlative 
observations that I made in the QQQ can be carried over to the 
SPY and DIA.

Jeff Bailey


**************************************************************
Annual Renewal Special
**************************************************************

The annual special this year is far too large to put into an
email. The highlights include two option expiration mousepads
to which we have added the FOMC meeting dates this year. There
are also two videos with Jim, Jeff and Buzz and seven books 
by leading market professionals like John Murphy and and Jim 
Rodgers. We even brought back the Trading Strategies CD from 
last year for all the new subscribers who have been asking 
for it. 

Click here for the full details:  

https://secure.sungrp.com/03renewal/#m
**************************************************************

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

Crossing the Barrier

A reader sent me an e-mail reminding me of the saying "never 
short a dull market."  That would seem to apply to today's 
action.  The lesson is highlighted by the fact that we got some 
bad news to start the day and yet the market still found buyers 
on the morning dip.  We started out with a worse than expected 
retail sales report for the month of December that showed a 
measly gain of only 1.2%.  Excluding auto sales, which have 
continued to benefit from zero-percent financing, sales were 
flat.  It was the worst data since the early 1990s.  However, if 
consumers are still spending on cares, does it matter that they 
aren't spending in the malls. There is only so much money to go 
around and if we are simply seeing a temporary shift to take 
advantage of financing deals, then maybe the drop in other retail 
areas is not as bad as it seems.   Retail sales account for a 
third of final sales in the economy, so this is a sector to watch 
closely.  The problem with the shift to autos is that these 
stocks at some point will have to pay the piper for giving up a 
previously profitable financing practice and that should be 
reflected in earnings down the road. On top of that concern, the 
data, even including auto sales, was still below expectations for 
a gain of 1.5%.

Comments from chief weapons inspector Hans Blix regarding the 
discovery of evidence about smuggled weapons in Iraq were 
released shortly after the retail sales data, contributing to the 
morning drop.  The dip buying seems to provide evidence that we 
will once again test our December 2 highs, after the market has 
shaken off a poor jobs report from last week, high unemployment, 
geo-political concerns and poor retail data. However, without a 
new catalyst, it seems we are stuck in a rut, with the Dow 
hovering around 8800 and the SPX sitting at just about 930.  The 
closes above those levels, at Dow 8842 and SPX 931.66, are 
significant in that after seemingly running out of steam below 
those levels, we have finally managed to get over the hump and 
may now find support at previous resistance. 

The 0.3% drop in department store sales hasn't helped many 
retailers, but apparently things are starting to turn around for 
beleaguered Kmart (KMRTQ).  The company said it expects to come 
out of bankruptcy protection by the end of April.  It will issue 
new stock to its creditors that will effectively wipe out the 
value of current shares.  In addition, the company posted its 
first quarterly profit since entering bankruptcy, in spite of a 
same store sales decline of 5.7%.  Now the bad news for the 
economy.  Kmart will be closing another 326 stores and cutting up 
to 35,000 jobs.  The cuts are not unexpected, but simply 
highlight the difficulties the economy is facing after a terrible 
December payrolls report that showed a loss of 101,000 jobs, 
instead of the expected gain of 32,000.  The Kmart news alone 
could have wiped out all of December's expected gain.  

With a relatively small trading range for most of the afternoon, 
the markets went into a holding pattern ahead of Intel's earnings 
release.  The Semiconductor Index got a slight boost by the end 
of the day, as investors were betting on positive comments. The 
SOX finished at 336, which is above support at 330, but below 
340, which served as resistance before Monday morning's spike 
level to 348.  Intel beat estimates by $0.02 per share and also 
posted revenue that was higher at $7.16 billion than expectations 
of $6.9 billion.  The company also said it expects first quarter 
revenue of $6.5-$7 billion, which was above expectations of $6.6 
billion.   The stock traded as high as $18.18 after hours before 
settling at $17.92, which is just above the close of $17.79. The 
50-dma sits at the after hours high of $18.18.  If the after 
hours range is any indication, traders were waiting to short the 
good news.  However, with IBM and Microsoft releasing earnings on 
Thursday, the Intel reaction should carry weight for only a 
couple of days before traders turn their attention elsewhere. 

Now that we are over the Dow 8800 and SPX 930 hump, traders can 
look first for a test of the descending 200-dmas at 8919 and 
948.42.  The other important 200-dma is that in the OEX.  The OEX 
closed at 474.31 and has the 200-dma sitting just above it at 
476.21.  We may see any or all of these tested tomorrow following 
the Intel results.  If we are able to get through those averages, 
then expect another run at the December highs in the Dow at 9043 
and SPX 954.  The OEX 200-dma test is not a foregone conclusion, 
however, as the last time an upside breakthrough led to a 
continued rally was in October 1998. It has penetrated the 
average to the upside several times during the bear market, 
however the rallies have been short lived. If we do break through 
and continue higher, bulls can look to jump in after crossing the 
December highs.  More conservative traders may want to wait for a 
test of Dow 9000 as support.  


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

Market Averages

DJIA ($INDU)

52-week High: 10673
52-week Low :  7197
Current     :  8842

Moving Averages:
(Simple)

 10-dma: 8682
 50-dma: 8599
200-dma: 8917



S&P 500 ($SPX)

52-week High: 1176
52-week Low :  768
Current     :  931

Moving Averages:
(Simple)

 10-dma:  916
 50-dma:  907
200-dma:  948



Nasdaq-100 ($NDX)

52-week High: 1734
52-week Low :  795
Current     : 1094

Moving Averages:
(Simple)

 10-dma: 1055
 50-dma: 1048
200-dma: 1059



-----------------------------------------------------------------
The Semiconductor Index (SOX.X):  The SOX hovered between support 
and resistance all day, awaiting Intel's (INTC) announcement 
after the bell. The company beat both earnings and revenue 
estimates, as well as raising future revenue guidance.   With all 
that bullishness, INTC finished up only a few pennies after 
hours. Traders can watch recent resistance levels at 340 and 350 
in tomorrow's trading action.  If it can crack 350, then we will 
likely re-test the August resistance level at 365-368.  That 
August resistance would coincide with the descending 200-dma at 
369.50.  The SOX hasn't seen its 200-dma since a failed bounce 
attempt in May 2002, when it sat up at 532.  If we instead fall 
on the Intel results, which seems unlikely (but stranger things 
have happened following earnings), then look for continued 
support at the 50-dma of 323, which served as a bounce point on 
the last pullback.

52-week High: 657
52-week Low : 214
Current     : 336

Moving Averages:
(Simple)

 10-dma: 323
 50-dma: 323
200-dma: 369

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

Market Volatility

The VIX is once again flirting with support at 26.  The recent 
market rally has led to repeated tests of this level and the 
close over Dow 8800 and SPX 930 should only ease downside fears 
and push the VIX lower if the rally holds. A real volatility 
breakdown will occur if we are able to push above the December 
highs in the broader indices and dare I predict we could see a 
low in the teens if that occurs.

CBOE Market Volatility Index (VIX) = 26.55 –0.97
Nasdaq-100 Volatility Index  (VXN) = 41.92 +0.18

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

          Put/Call Ratio  Call Volume   Put Volume

Total          0.70        657,834       457,876
Equity Only    0.56        523,934       293,095
OEX            1.42         20,781        29,561
QQQ            1.08         48,295        52,159


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

Bullish Percent Data

           Current   Change   Status
NYSE          53      + 1     Bull Confirmed
NASDAQ-100    66      + 1     Bull Confirmed
Dow Indust.   57      + 0     Bull Confirmed
S&P 500       62      + 0     Bull Correction
S&P 100       60      + 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  0.92
10-Day Arms Index  0.88
21-Day Arms Index  1.25
55-Day Arms Index  1.21


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

        Advancers     Decliners
NYSE       1736          1149
NASDAQ     1848          1297

        New Highs      New Lows
NYSE        110              18
NASDAQ       89              15

        Volume (in millions)
NYSE       1,640
NASDAQ     1,510


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

Commitments Of Traders Report: 01/07/02

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

Commercials increased long positions slightly, while reducing 
shorts by 7,000 contracts.  Small traders added 4,000 long 
contracts, while also adding 8,000 short contracts.

Commercials   Long      Short      Net     % Of OI 
12/17/02      465,361   528,896   (63,535)   (6.4%)
12/23/02      408,592   467,259   (58,667)   (6.7%)
12/31/02      410,968   462,782   (51,814)   (5.9%)
01/07/03      411,542   455,538   (43,996)   (5.1%)

Most bearish reading of the year: (111,956) -   3/6/02
Most bullish reading of the year: ( 16,472) - 10/01/02

Small Traders Long      Short      Net     % of OI
12/17/02      194,740    90,803   103,937     36.4%
12/23/02      138,756    58,236    80,520     40.9%
12/31/02      139,383    75,640    63,743     30.0%
01/07/03      143,169    83,895    59,274     26.1%

Most bearish reading of the year:  36,513 - 5/01/01
Most bullish reading of the year: 114,510 - 3/26/02
 
NASDAQ-100

Commercials added 6,000 long contracts, while adding 4,000 
shorts.  Small traders left long positions basically unchanged, 
while increasing shorts by 3,400 contracts, or 68%.


Commercials   Long      Short      Net     % of OI 
12/17/02       51,999     54,383   ( 2,384) ( 2.2%)
12/23/02       32,067     44,451   (12,384) (16.2%)
12/31/02       31,399     44,387   (12,988) (17.1%)
01/07/03       37,966     48,156   (10,190) (11.8%)

Most bearish reading of the year: (15,521) -  3/13/02
Most bullish reading of the year:   9,068  - 06/11/02

Small Traders  Long     Short      Net     % of OI
12/17/02       23,027    18,027     5,000    12.2%
12/23/02       17,009     5,865    11,144    49.0%
12/31/02       19,841     5,009    14,832    60.1%
01/07/03       19,708     8,453    11,255    40.1%

Most bearish reading of the year: (10,769) - 06/11/02
Most bullish reading of the year:  14,832  - 12/31/02

DOW JONES INDUSTRIAL

Commercials left positions relatively unchanged, while small 
traders increased short positions by 1800 contracts. 

Commercials   Long      Short      Net     % of OI
12/17/02       23,782    20,605    3,177       7.2%
12/23/02       14,991    11,103    3,888      14.9%
12/31/02       15,940    11,253    4,687      17.2%
01/07/03       16,210    11,333    4,877      17.7%

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
12/17/02        5,498     9,045    (3,547)   (24.4%)
12/23/02        4,584     6,296    (1,712)   (15.7%)
12/31/02        4,997     6,553    (1,556)   (13.5%)
01/07/03        4,963     8,334    (3,371)   (25.4%)

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

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


**************************************************************
Annual Renewal Special
**************************************************************

The annual special this year is far too large to put into an
email. The highlights include two option expiration mousepads
to which we have added the FOMC meeting dates this year. There
are also two videos with Jim, Jeff and Buzz and seven books 
by leading market professionals like John Murphy and and Jim 
Rodgers. We even brought back the Trading Strategies CD from 
last year for all the new subscribers who have been asking 
for it. 

Click here for the full details:  

https://secure.sungrp.com/03renewal/#m
**************************************************************


*************************
WEEKLY MANAGER MICROSCOPE
*************************

Least Volatile Funds

Ultra-conservative investors seeking total return consistent with 
minimal share price fluctuation may find these low volatile funds 
to be appropriate for their financial plan.  Each of these mutual 
funds has a trailing 3-year standard deviation of less than 1.00% 
according to Morningstar, ranking them among the "least volatile" 
funds on the market today.

To put this standard deviation figure into perspective, consider 
that the group average of 5,590 funds in Morningstar's system is 
13.94%.  So, the average fund's returns deviated from its "mean" 
return by nearly 14 percent on average over the past three years 
compared to less than one percent for these least volatile funds.

Since risk and reward usually go together, having low volatility 
generally means the fund has low total return potential.  Though 
that is generally true, we'll attempt to identify those low-risk 
funds that have the potential to outperform money market returns.  

With the average money market fund yielding just 0.84% today, the 
average money market fund is likely to produce very little "total 
return" in 2003.  These funds seek to provide a total return that 
is above the average money market fund, while limiting fund price 
fluctuations.  Some may use wrapper agreements to help stabilize 
the fund's net asset value (NAV).

Accordingly, this week's screen should appeal to investors that 
desire greater return potential than what money market funds can 
offer, but aren't willing to subject their capital to significant 
volatility.
 
Screening Process

For our screen this week, we use one of Morningstar tools online 
called Fund Quickrank (www.morningstar.com).  As its name states, 
the Fund Quickrank tool quickly ranks funds based on returns for 
various time periods, as well as on the basis of trailing 3-year 
standard deviations.  In the case of the standard deviation page, 
funds are ranked based on least volatile and most volatile funds.

The "least volatile" funds list consisted of several funds, each 
with average standard deviations of between 0.21% to 0.71%.  The 
list is summarized below (excluding institutional share classes).  
For load funds with multiple share classes, we show the A shares 
herein.

 Least Volatile Funds:
 Scudder Preservation Plus Income (DBPIX)
 Oppenheimer Capital Preservation A (OCAPX)
 Scudder Preservation Plus (BTPSX)
 PBHG IRA Preservation (PBCPX)
 Gartmore Morley Capital Accumulation (NMIRX)
 Security Capital Preservation A (SIPAX)
 Calvert Tax-Free Reserves Limited-Term A (CTFLX)
 Permanent Portfolio Treasury Bill (PRTBX)
 AMF Adjustable Rate Mortgage (ASARX)
 Federated Government Ultrashort (FEUSX)
 RSI Retirement Trust Short-Term Investment (RSISX)

To compare these funds further, we next turned to Morningstar's 
Fund Compare tool.  It permits you to enter fund ticker symbols 
and then compare funds on the basis on return, risk, costs, and 
other factors.  Note that all of these funds are bond funds and 
fall into one of three Morningstar categories: ultra-short bond, 
short-term bond, or multi-sector bond.  

Using the Performance View, we next sorted these funds based on 
their trailing 3-year returns as of January 10, 2003.  For your 
convenience, the top-performing funds for this period are shown 
below.

 3-Year Average Annual Returns:
 +6.0% Scudder Preservation Plus Income (DBPIX)
 +5.9% PBHG IRA Preservation (PBCPX)     
 +5.8% Security Capital Preservation A (SIPAX)
 +5.6% Oppenheimer Capital Preservation A (OCAPX)
 +5.4% AMF Adjustable Rate Mortgage (ASARX)
 +5.3% Scudder Preservation Plus (BTPSX)
 +5.2% Gartmore Morley Capital Accum IRA (NMIRX)

AMF Adjustable Rate Mortgage (ASARX) sports the highest 5-year 
average annual return (of those funds with 5-year histories to 
compare).  It returned an average of 5.1 percent a year during 
the last five years, according to Morningstar.  For comparison 
purposes, the US stock market as measured by the S&P 500 index 
rose by an average rate of 1.2 percent over the same period of 
time.

Next, we looked to see which of these funds had the best risk-
adjusted performance rating from Morningstar.  In that regard, 
five funds have above average or high overall ratings for risk-
adjusted relative performance.  Those are listed below as well.

 Morningstar Ratings: 4 Stars or Better
 Scudder Preservation Plus Income (DBPIX) 5 stars
 AMF Adjustable Rate Mortgage (ASARX) 4 stars
 Gartmore Morley Capital Accum IRA (NMIRX) 4 stars
 Oppenheimer Capital Preservation (OCPYX) 4 stars
 PBHG IRA Capital Preservation (PBCPX) 4 stars

On the basis on performance and risk-adjusted performance, the 
standout among these funds is Scudder Preservation Plus Income 
(DBPIX), which has the best trailing 3-year return, as well as 
the only Morningstar 5-star overall rating.  Only 10% of funds 
within a category receive Morningstar's coveted 5-star overall 
rating for risk-adjusted performance.  

The last thing we did was use the Morningstar Fund Score tool, 
which allows you to set criteria importance and then score the 
results on what's most important to you.  For our purposes, we 
customized the criteria to include certain risk statistics and 
what Morningstar calls "nuts and bolts" stuff (manager tenure, 
turnover, expense ratio, etc.) as follows:

 -Low standard deviation
 -Low beta
 -High Sharpe ratio
 -High alpha
 -High yield
 -Long manager tenure
 -Low turnover
 -Low expense ratio

We gave equal weight to each of the eight "score" criteria and 
then ran the score tool.  Based on the scoring process, Scudder 
Preservation Plus Income Fund (DBPIX) had the highest score of 
40.  Gartmore Morley Capital Accumulation IRA Fund (NMIRX) and 
Scudder Preservation Plus Fund (BTPSX) tied for second, with a 
score of 30.

The scoring process confirmed our earlier findings that Scudder 
Preservation Plus Income Fund appears to be the best bet on the 
basis of return (and risk-adjusted return), yield, fund expense, 
manager tenure, and other criteria.  We then spent some time at 
the Scudder website to learn more about their Preservation Plus 
income fund products, and found them to be worthy of discussion. 
In the next section, we explore these safe investments a little 
further.

Scudder PreservationPlus Fund (BTPSX)
Scudder PreservationPlus Income Fund (DBPIX)

These two income-based funds Scudder Investments seek to provide 
a high level of current income while working to maintain a stable 
$10 per share price.  They do so by investing primarily in fixed 
income securities of varying maturities and entering into "wrap" 
contracts with financial institutions designed to stabilize the 
funds' net asset values.

As the Scudder website (www.scudder.com) points out, these funds 
are not money market funds.  Scudder gives no assurance that the 
funds will be able to maintain a stable value per share. 

In addition to fixed income securities, the funds will invest in 
money market instruments, futures, options and other instruments.  
Like "GIC" funds, these funds enter into wrapper agreements with 
insurance companies, banks, and other financial institutions, to 
stabilize the value per share.  These funds are not FDIC insured  
and involve investment risk, the Scudder website says, including 
possible loss of capital.

Note that the fund symbols reflected above represent the funds' 
Investment Class shares, which are available through financial 
planners, registered investment advisors and broker-dealers or 
other institutions.  Investment class shares require a minimum 
initial purchase of $1,000.  There is also a 0.25% "shareholder 
servicing" fee for qualifying firms, per the Scudder website.

Scudder PreservationPlus Fund has a 0.65% expense ratio, while 
Scudder PreservationPlus Income Fund has a 1.00% expense ratio.  
The former fund has a 12-month yield of 4.80%, while the latter 
fund has a 12-month yield of 4.54%.  

Both funds are team managed by Scudder affiliates.  Two of the 
co-managers are from Bankers Trust and the other two hail from 
Deutsche Asset Management.  Deutsche acquired Bankers Trust in 
1999 and Scudder in 2002.  In August 2002, these funds changed 
their names from Deutsche to Scudder.




 


The chart above for Scudder PreservationPlus Income Fund shows 
that it has been successful in maintaining a stable $10.00 per 
share price.  Indeed, this is what you'd expect to see from a 
fund that has a microscopic 0.21% standard deviation.  They've 
essentially pulled it off, producing returns similar to short-
term bond funds with money market type of principal stability.

For the trailing 3-year period as of January 10, 2003, the two 
funds produced the following average annual total returns with 
little or no risk to investors thanks to the wrapper contracts.

 3-Year Average Annual Returns:
 +6.0% Scudder Preservation Plus Income (DBPIX)
 +5.3% Scudder Preservation Plus (BTPSX)

For comparative purposes, the average short-term fund generated 
an average total return of 6.7 percent, while the average ultra-
short-term fund returned just 4.7 percent/year, per Morningstar.  
So, returns have been similar to short-term and ultra short-term 
funds with similar risk to money market funds. 

Conclusion

Although the funds seek to maintain a stable share value, there 
are risks associated with fixed income securities.  The Scudder 
website spells them out and you should be aware and comfortable 
with them.  Remember this is not a money market fund and things 
like sharp rises in interest rates and credit defaults can rear 
their ugly head from time to time.  You may not see problems in 
the fund's NAV price, but it may impact future yields credited.

However, for all intents and purposes, these stable-value funds 
offer investors higher yield and return than money market funds, 
with virtually no share price fluctuation, making them suitable 
choices for conservative income investors that want more return 
potential than is available today from the typical money market 
fund.  Because of their conservative income nature, they aren't 
suitable for investors seeking significant capital appreciation, 
however. 

For more information or to download a fund prospectus, logon to 
the Scudder website at www.scudder.com.

Steve Wagner
Editor, Mutual Investor
steve@mutualinvestor.com


**************************************************************
Annual Renewal Special
**************************************************************

The annual special this year is far too large to put into an
email. The highlights include two option expiration mousepads
to which we have added the FOMC meeting dates this year. There
are also two videos with Jim, Jeff and Buzz and seven books 
by leading market professionals like John Murphy and and Jim 
Rodgers. We even brought back the Trading Strategies CD from 
last year for all the new subscribers who have been asking 
for it. 

Click here for the full details:  

https://secure.sungrp.com/03renewal/#m
**************************************************************


***********************
SWING TRADER GAME PLANS
***********************

Higher Ground

After sitting around much of the day, watching the markets once 
again failat recent rally levels, we finally got a closing push to 
higher ground.


To read the rest of the Swing Trader Game Plan Click here:
http://www.OptionInvestor.com/itrader/indexes/swing.asp


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The Option Investor Newsletter                  Tuesday 01-14-2003
Copyright 2003, All rights reserved.                        2 of 3
Redistribution in any form strictly prohibited.


In Section Two:

Dropped Calls: ACS
Dropped Puts: TDS
Daily Results
Call Play Updates: LTR, VRTY, CI, 
New Calls Plays: CMCSK, RJR
Put Play Updates: ASD, PG, WLP
New Put Plays: None


****************
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:
*****

ACS $55.50 +0.49 (+0.49) After huffing and puffing and
straining to clear the $56 resistance level numerous times over
the past couple weeks, ACS seems to be settling into a range
between $54-56.  The stock remains above its trendline and
could very well make another run at a breakout, but with volume
on the wane and time ticking away, we would prefer to err on
the side of caution.  We've got a nice gain in the play, which
we initiated at $51.86.  Rather than risk those gains, we're
dropping the play tonight.  Traders that wish to hold open
positions should ratchet stops up to $54, as a break below
that level would be a bearish break from the current range.


PUTS:
*****

TDS $47.03 +1.27 (+2.38 for the week) TDS gave quite a head fake 
with the breakdown below support at $45.  We got one more drop 
out of it and then the stock followed the telecom bounce higher 
for a gain of almost $4 from its lows.  It has rallied right up 
to a descending trend line begun in early December and serious 
bears may see this as a short entry opportunity.   If the sector 
were showing any sign of weakness, we may agree.  However, with 
strength in a number of telecom related stocks, we will let this 
one go and look for better opportunities.


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

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

CALLS              Mon    Tue

ACS      55.50   -0.58   0.49  Drop, Profits
CI       45.75    0.29   1.14  Into the gap
CMCSK    27.30    0.02   0.80  New, Catapult top
LTR      47.65   -0.33   0.28  Hanging tough
RJR      45.27    0.24   0.83  New, Quadruple top breakout
VRTY     15.69   -0.18  -0.12  Need $16 close


PUTS

ASD      68.43   -0.15   0.03  Look for break under $68
PG       86.36    0.06   0.17  No rally participation
TDS      47.03    0.76   1.27  Drop, telecom bounce
WLP      67.60   -0.96  -1.00  Great start


**************************************************************
Annual Renewal Special
**************************************************************

The annual special this year is far too large to put into an
email. The highlights include two option expiration mousepads
to which we have added the FOMC meeting dates this year. There
are also two videos with Jim, Jeff and Buzz and seven books 
by leading market professionals like John Murphy and and Jim 
Rodgers. We even brought back the Trading Strategies CD from 
last year for all the new subscribers who have been asking 
for it. 

Click here for the full details:  

https://secure.sungrp.com/03renewal/#m
**************************************************************


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

LTR $47.65 +0.28 (+0.05) Attentive traders got a solid entry
into our LTR play this morning as the early weakness in the broad
market dragged the stock down to just above the 10-dma ($46.67)
at the open.  From there, we saw a consistent rise through the
lunch hour, and it looked like there might be a run at Monday's
intraday high.  Alas, it wasn't to be, and LTR pulled back and
then staged a minor rebound into the close, still closing very
near the high of the day.  The clue that a breakout wouldn't
succeed today was the lackluster volume, which declined steadily
throughout the day until the final spurt in the last 20 minutes
of the day.  The bullish trend remains in force, and clearly
there is a fair amount of supply at the $47.55 level (top of the
9/20 gap) that needed to be worked through.  With the strong
rebound at the close, we could be looking at the setup for a
push through that resistance level over the next couple days.
Intraday dips near the 10-dma should still provide solid entry
into the play, while momentum traders will want to see a
decisive (read:volume) move through the $48 resistance level.
Raise stops to $45.75, just above the intraday lows of the past
2 weeks.

---

VRTY $15.69 -0.12 (-0.26) Following the impressive move up from
the $13 level since the start of the year, the odds were good
that VRTY was going to need to catch its breath after the first
test of resistance, just over $16.  Sure enough, yesterday's
morning high of $16.36 provided the catalyst for some near-term
profit-taking and the past 2 days have seen the stock gradually
drifting lower.  That said, the weakness has been rather mild
and when it has run its course, the rebound from support should
provide for a decent entry point.  Below current levels, the
first decent support comes in at $15, becoming fairly strong
at the $14.50-14.75 level, the site of prior resistance that
should now act as support.  That support area should be further
reinforced by the rising 10-dma ($14.82) and 20-dma ($14.57).
Recall that the impetus for this rally that began back in the
middle of December was the company's impressive earnings
results.  With daily Stochastics already falling back out of
overbought, buying the dips is the preferred strategy, as the
stock works through its near-term overbought condition.  Traders
set on buying a breakout will really need to see a volume-backed
move through $16.50 before jumping on board.  Keep stops set at
$13.75.

---

CI 45.75 +1.14  (+1.44 for the week) The third time was the charm 
for CI.  Shares broke out above $45.00 on Tuesday after butting 
their head against that resistance level during the previous two 
sessions.  Our long play was triggered at $45.01.  That trade of 
$45 was also a new buy signal on the point and figure and a new 
relative high since the late October plunge. You could almost 
visualize the shorts running for cover as CI moved higher for 
most of the day and reached a multi-month high of $46.69.  The 
stock finished with a 2.5% gain after pulling back toward the end 
of the session.  Shares also showed good relative strength versus 
the IUX.X insurance index, which moved to a new short-term high.  
The index seems to be on course to test overhead resistance at 
275.  With CI now moving into the October 25th gap, we'll be 
looking for a rally up to the $57.00 area.  New entries could be 
targeted on a move above today's high or on a pullback to $45.00.  
In terms of risk management, you'll notice that we've raised our 
stop to $42, just below the 21-dma of $42.77.  


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

CMCSK – Comcast Corp. $27.30 +0.80 (+0.89 this week)

Company Summary:
Comcast and its subsidiaries are involved in three principal
lines of business: cable, commerce and content.  The cable
communications side of the business in involved in the
development, management and operation of broadband cable
networks in the United States.  Electronic retailer QVC
constitutes the company's commerce arm, through which a wide
variety of products are marketed directly to consumers on
merchandise-focused television programs.  Content is provided
through CMCSK's subsidiaries Comcast-Spectator, Comcast
SportsNet and E! Entertainment Television Inc., and through
other programming investments including The Golf Channel,
Speedvision and Outdoor Life.

Why We Like It:
While a long time in coming, it appears that consumers are
finally making the jump broadcasters have been hoping for, the
jump to broadband Internet service and Digital Cable.  Over the
last year, subscribers to cable modems jumped 42%, while digital
cable subscribers increased 32%.  Couple that with the trend of
cable service operators cutting costs, and the fourth quarter
just may turn out to be better than expected.  A notable standout
from other players in the industry, CMCSK plans to spend between
$2.0-2.5 billion in 2003 to build out and upgrade its AT&T
broadband network, which many are taking as a sign of health at
the company.  If so, then investors seem to be getting an early
jump on the trend, as they've been gobbling up shares of the
stock over the past 2 weeks, propelling the stock higher by more
than 20% since the start of the year.  After basing in the $22-24
range throughout the month of December, the stock launched higher
in early January, breaking first through the top of that range,
then clearing the 200-dma (currently $24.15), and today vaulting
through the November high of $26.66.  Volume hasn't been stellar
(still running will below the ADV), but the trend is impressive,
with the stock now trading at its highest level since early June
of 2002.  Another bullish technical development about to take
place is the crossover of the 50-dma over the 200-dma, which
ought to occur near the $24 level over the next few day.  Despite
today's breakout, it seems unlikely this run higher can continue
without at least a bit of profit taking.  When it occurs, we want
to take advantage of it by buying the rebound from a lower level.
There should now be fairly solid support near $24.50 (prior
resistance), and a rebound from that level would make for a great
entry.  However, given the strength of the recent rally, we may
have to settle for a shallower pullback, targeting entries near
$26.50 (the site of the 2-week ascending trendline) or even a bit
lower at $25.50-26.00.  A quick look at an intraday chart shows
how the stock has been stepping higher in these 50-cent
increments and the depth of the pullback will give a good read
on the health and sustainability of the trend.  Place stops
initially at $24, as that level shouldn't be violated if the
rally is to continue.

BUY CALL FEB-25 CQK-BE OI=12076 at $3.00 SL=1.50
BUY CALL FEB-27*CQK-BY OI= 1355 at $1.40 SL=0.75
BUY CALL APR-27 CQK-DY OI= 8100 at $2.35 SL=1.25
BUY CALL APR-30 CQK-DF OI= 5727 at $1.15 SL=0.50

Average Daily Volume = 13.0 mln


---

RJR - RJ Reynolds $45.27 +0.83 (+1.52 for the week)

Company Description:
R.J. Reynolds Tobacco Company is the second-largest tobacco 
company in the United States, manufacturing about one of every 
four cigarettes sold in the United States. Reynolds Tobacco's 
product line includes four of the nation's 10 best-selling 
cigarette brands: Camel, Winston, Salem and Doral. (source: 
company press release)

Why We Like It:
Shares of RJ Reynolds formed a short-term bottom at $39.20 
earlier this month after competitor Phillip Morris announced 
price cuts for wholesale retailers of its core brand cigarettes.  
Investors in both RJR and MO initially balked at the possibility 
of a price war that could eat away at the company's bottom lines.  
However, these concerns seemed to evaporate rather quickly.  RJR 
in particular has staged a powerful comeback from its recent 
lows.  Following a week-long uptrend, the stock reached multi-
month highs today after breaking above resistance at $45.00.  
Although the extended daily stochastics are hinting that the 
uptrend might lose momentum, the bullish MACD and quadruple-top 
p-n-f buy signal indicate that RJR should continue its ascent.  
This outlook is bolstered by the fact that the stock has no clear 
levels of overhead resistance until the July lows near $49.00.  
We believe RJR will be able to clear this level, retrace the 
steep September losses, and move to our official profit-target at 
$49.94.  

You'll notice from the earnings date listed below that RJR will 
announce their quarterly results next Thursday (before the bell).  
Because we'll probably be closing this play prior to the 
announcement, longer-term traders may want to look elsewhere for 
a possible trade.  Our objective is simply to ride RJR higher 
over the next 5-6 days before bailing out of this trade with some 
nice gains.  Although those with a longer-term timeframe could 
still think about going long, we would not advise taking full 
positions until after the earnings announcement.  As a 
precautionary measure we will place our action point for this 
play at $45.33, one cent above today's high.  If we're triggered 
our stop will be placed at $42.50.  This sets up a risk/reward 
ratio of roughly 1:2.  More aggressive traders could use a stop 
slightly below $42.00.

*****January Contracts Expire Friday******

BUY CALL FEB-42.50*RJR-BV OI= 877 at $4.10 SL=2.05
BUY CALL FEB-45    RJR-BI OI= 1111 at $2.50 SL=1.25
BUY CALL MAY-42.50 RJR-EV OI= 182 at $5.20 SL=2.60
BUY CALL MAY-45    RJR-EI OI= 741 at $3.90 SL=2.00

Average Daily Volume = 876 k



**************************************************************
Annual Renewal Special
**************************************************************

The annual special this year is far too large to put into an
email. The highlights include two option expiration mousepads
to which we have added the FOMC meeting dates this year. There
are also two videos with Jim, Jeff and Buzz and seven books 
by leading market professionals like John Murphy and and Jim 
Rodgers. We even brought back the Trading Strategies CD from 
last year for all the new subscribers who have been asking 
for it. 

Click here for the full details:  

https://secure.sungrp.com/03renewal/#m
**************************************************************


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

ASD $68.43 +0.03 (-0.11) As the broad market has churned along
in its rather tight range this week, shares of ASD have largely
done the same, while drifting ever closer to that pivotal $68
level.  The stock has traded exactly $68 both days this week,
highlighting the importance of that level, which is the PnF
bullish support line.  Actually, it had been at $68, until the
stock traded that level, and it has subsequently shifted to the
$67 level.  Taking another look at the PnF chart, we can see
that the Sell signal is still in force, with a bearish price
target of $64.  But as we pointed out over the weekend, waiting
for another failed rally will provide the better entry into the
play, given the likelihood of a rebound from that bullish
support line.  Monday's rollover from $70 was a good entry and
a subsequent intraday rally failure in the $70-71 area would
make for a good opportunity to enter the play.  More
conservative traders that want to see a breakdown before
playing will really need to see ASD print $67 before committing
to the play.  Stops remain at $72.

---

PG $86.36 +0.17 (+0.23) With the bulk of the action in the broad
markets so far this week being rangebound, it should come as no
surprise that PG continues to vacillate in its own range.
There's been a bit of a rebound from the lower end of the range
($84.50), but certainly no buying frenzy of eager bulls.  If
anything, the rise in the stock over the past few days appears
to be setting us up for a solid bearish entry point, given the
rather light volume.  Not only that, but the relative strength
chart of PG shows that the stock continues to deteriorate
relative to the DOW.  Resistance appears to be solidifying near
the $86.50 level, with further reinforcement coming from the
declining 50-dma ($86.59) and 20-dma ($86.81).  A rollover near
that level should make for a solid entry into the play, as we
continue to control risk with our $88 stop and the PnF bearish
price target of $77.

WLP $67.60 -1.00 (-1.97) In a marked departure from the
rangebound to slightly bullish action in the broad markets,
shares of WLP are looking decidedly unhealthy.  After topping
out near $74 (right at the 200-dma) a couple weeks ago, the
stock has turned in a pretty dismal performance, slicing through
the 50-dma, 20-dma and 10-dma in the process.  Even potential
support just above $68 didn't slow the stock down, and on
Tuesday it traded as low as $66.70 before finding some mild
interest from the buy side.  The $66 level should be important
support, as it marked a low in both May and August of 2002, and
then served as resistance after the rebound from the October
2002 lows near $62.  The upshot is that we don't want to try
gaming new entries on a further breakdown as it is too difficult
to control risk.  Rather, wait for the next failed rally to
present itself, ideally in the $69.75-70.25 area, the site of
former support, which now appears to be resistance.  Continue
to monitor the HMO index, which has been showing weakness along
with WLP.  Much like WLP is challenging the $66 support level,
the HMO index is nearing its own strong support at $500.  A
rebound in the HMO index is likely to take our play along with
it, setting the stage for that next failed rally.  Lower stops
to $71.


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

None


**************************************************************
Annual Renewal Special
**************************************************************

The annual special this year is far too large to put into an
email. The highlights include two option expiration mousepads
to which we have added the FOMC meeting dates this year. There
are also two videos with Jim, Jeff and Buzz and seven books 
by leading market professionals like John Murphy and and Jim 
Rodgers. We even brought back the Trading Strategies CD from 
last year for all the new subscribers who have been asking 
for it. 

Click here for the full details:  

https://secure.sungrp.com/03renewal/#m
**************************************************************


**********
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                  Tuesday 01-14-2003
Copyright 2003, All rights reserved.                        3 of 3
Redistribution in any form strictly prohibited.


In Section Three: 

Play of the Day: CALL - RJR
Futures Corner: Paper Trading Futures


**********************
PLAY OF THE DAY - CALL
**********************

RJR - RJ Reynolds $45.27 +0.83 (+1.52 for the week)

Company Description:
R.J. Reynolds Tobacco Company is the second-largest tobacco 
company in the United States, manufacturing about one of every 
four cigarettes sold in the United States. Reynolds Tobacco's 
product line includes four of the nation's 10 best-selling 
cigarette brands: Camel, Winston, Salem and Doral. (source: 
company press release)

Why We Like It:
Shares of RJ Reynolds formed a short-term bottom at $39.20 
earlier this month after competitor Phillip Morris announced 
price cuts for wholesale retailers of its core brand cigarettes.  
Investors in both RJR and MO initially balked at the possibility 
of a price war that could eat away at the company's bottom lines.  
However, these concerns seemed to evaporate rather quickly.  RJR 
in particular has staged a powerful comeback from its recent 
lows.  Following a week-long uptrend, the stock reached multi-
month highs today after breaking above resistance at $45.00.  
Although the extended daily stochastics are hinting that the 
uptrend might lose momentum, the bullish MACD and quadruple-top 
p-n-f buy signal indicate that RJR should continue its ascent.  
This outlook is bolstered by the fact that the stock has no clear 
levels of overhead resistance until the July lows near $49.00.  
We believe RJR will be able to clear this level, retrace the 
steep September losses, and move to our official profit-target at 
$49.94.  

You'll notice from the earnings date listed below that RJR will 
announce their quarterly results next Thursday (before the bell).  
Because we'll probably be closing this play prior to the 
announcement, longer-term traders may want to look elsewhere for 
a possible trade.  Our objective is simply to ride RJR higher 
over the next 5-6 days before bailing out of this trade with some 
nice gains.  Although those with a longer-term timeframe could 
still think about going long, we would not advise taking full 
positions until after the earnings announcement.  As a 
precautionary measure we will place our action point for this 
play at $45.33, one cent above today's high.  If we're triggered 
our stop will be placed at $42.50.  This sets up a risk/reward 
ratio of roughly 1:2.  More aggressive traders could use a stop 
slightly below $42.00.

*****January Contracts Expire Friday******

BUY CALL FEB-42.50*RJR-BV OI= 877 at $4.10 SL=2.05
BUY CALL FEB-45    RJR-BI OI= 1111 at $2.50 SL=1.25
BUY CALL MAY-42.50 RJR-EV OI= 182 at $5.20 SL=2.60
BUY CALL MAY-45    RJR-EI OI= 741 at $3.90 SL=2.00

Average Daily Volume = 876 k



**************************************************************
Annual Renewal Special
**************************************************************

The annual special this year is far too large to put into an
email. The highlights include two option expiration mousepads
to which we have added the FOMC meeting dates this year. There
are also two videos with Jim, Jeff and Buzz and seven books 
by leading market professionals like John Murphy and and Jim 
Rodgers. We even brought back the Trading Strategies CD from 
last year for all the new subscribers who have been asking 
for it. 

Click here for the full details:  

https://secure.sungrp.com/03renewal/#m
**************************************************************


**************
FUTURES CORNER
**************

Paper Trading Futures
By John Seckinger
jseckinger@OptionInvestor.com

Paper trading certainly has its advantages, but a trader has to 
be realistic about slippage and very mindful of proper trade 
management. 

It really comes down to a proper, well-defined strategy that can 
trigger some semblance of emotions if a trade turns into a loser.  
That is absolutely the key; emotional management.  I have had 
many nights experiencing an abnormal (read: fast) heartbeat 
accompanied by dreams of some geopolitical event ruining my 
entire trading account.  Is that healthy?  No, and I have learned 
to be much more ‘in control’ while keeping a trade overnight.  
Then there are the trades that turn into losers, but you feel 
like you knew the market and should have made money nonetheless.  
I would then forget the loss and somehow imagine a gain.  Not a 
good idea.  Fortunately, those situations were many years in the 
past as well.  

It all starts with paper trading, so remember to bring a pencil 
and a pad of paper to the computer around 9:00 a.m. (est) with 
your thinking cap on.  If you simply ‘go through the motions,’ 
you will most likely get a poor education into the reality of 
trading.  Here is the reality:  I enter this trade electronically 
as the pace of the market is picking up, “Sell 2 ES Contracts at 
900, Stop at 904.”  After I miss the trade, I change the order: 
“Sell 2 ES Contracts at 897, Stop at 901.”  Then, still without 
an execution, “Sell 2 ES Contracts at the market.”  Filled at 
895.  Ok, stop at 899.  Did this really make sense?  I don’t 
think so.  When paper trading, a lot of traders can do the same 
trade and fill themselves at 900 as the ES contracts prints 899.  
Then immediately put in a stop at 899 or 900, depending on if the 
next print is 898 or 900.  If 900, a paper trader wouldn’t lose 
any money, and most likely forget about commissions.  Plus there 
would be no emotional dealings.  In the live situation, it 
becomes very frustrating.  Making money is hard, so expect these 
things to take place. 

Ok, all of the books have been read, all the seminars attended, 
and you are ready to make some money trading futures.  We all 
know that only real trading counts for experience, but let us be 
smart and test a system via paper trading.  That does make sense, 
and I do it many times as well.  

If you are starting with 25,000 dollars, remember that each 
contract bought or sold will have an initial and maintenance 
margin.  For the E-mini S&P 500 Contract, there is 3,563 dollars 
to put on the trade and 2,850 as a maintenance issue (firms will 
vary on this).  Moreover, every tick (0.25) is $12.50 per 
contract.  Therefore, one point is $50.  Open Interest is roughly 
400k in the ES, with volume at about 550k a day; therefore, we 
don’t have to put a ton of emphasis on slippage (read: bad fill) 
unless it is during a time when the market is going vertical.

Before I continue, please make sure you have a fast computer (256 
MB RAM or greater).  Fills usually take only a few seconds, and a 
relatively slow computer really can heighten the odds of you 
rebooting your computer and potentially costing you money.

Also, try not to risk more than a few percent on any trade.  If 
trading with 25,000, 1% is 250 dollars or 5 points.  I do like to 
use 1%, but this is not a set-in-stone rule.  Even if trading 
with a million dollars, I would not use a stop greater than five 
points unless conditions really warrants such a stop.  With that 
said, accounts 25k or less, try to risk only 1-2% per trade.  
Above 25k, try to keep stops at 5-points or less. 

Now is also the time to start keeping a journal.  You can review 
and analyze all the trades you have done during the day; 
analyzing the price and time at which you entered each trade, as 
well as the time and price at which you exited each trade.  Your 
logic you used to enter each trade can be written down; possibly 
via a chart drawn on a piece of paper (or screen shot). 
This journal should help with reducing recurring mistakes, 
finding weaknesses in logic, and allowing you to process an 
immense amount of information in order to put it all together.  
Remember, be honest with your trading.  Here are some questions 
that might need answered, “Why are I trading?  Why is this trade 
a winner?  Why are I losing money?  Why am I repeating negative 
destructive behaviors?

On your piece of paper, here are some things that can be listed:
Record Date, Order Number (good to write down, since a bad fill 
can be questioned and referenced later in a more efficient 
manner), Symbol, Month, Year, Modifier (eg. At market, limit, 
stop), Quantity, Filled Price (subtract 0.25 for slippage on both 
sides of the trade), Long/Short, and P/L.  Record your initial 
investment needed to cover the initial margin, as well as using 
$10 commissions for round turns.  

Here are some other things that a potential futures trader can 
write down:  How soon after was a trade placed once a buy/sell 
signal was recognized?  This is extremely important, since being 
just a few seconds slow to pull the trigger in paper trading can 
drastically change the scope of the experiment.  Example:  I want 
to sell 899, and the ES is at 900.  Now 899.  I check all my 
oscillators, the Dow, news, etc. and then see the ES tick 898.50.  
Ok, I sold the contract at 899.  What?  Not realistic.  If you 
want to go short here, give yourself a fill at 898.25 and then 
ask yourself if selling 898.25 is a different trade then selling 
899.  Sometimes it is, actually, since a trader’s goal could only 
be to capture a few points.  

In the past, I have put on a trade, lost a few hundred within a 
few minutes, exited, and then wondered what I could have bought 
with that money.  When paper trading, it is hard to ‘really’ 
understand these thoughts.  Your mind will tell you that you 
didn’t really lose the money.  How can a trader duplicate these 
emotions?  I honestly don’t know.  Hopefully, there was a 
learning aspect on why the money was lost, which would mean that 
there was some slight good that came out of a losing trade.  With 
that said, maybe buy a few books on trading after every 
‘hypothetical’ losing trade.

Last, but certainly not least, trade methodically.  If you are 
testing a trading system, but really are only playing around and 
capturing 0.25 point moves at a time, please don’t trade futures.  
I have spent at least 9 years trading and 60-70 hours a week 
talking about the market and trying to keep up-to-date with a 
system that is profitable.  I will admit bad ideas, as well as 
being confident that I have a system that works during a 
particular time.  The market is dynamic; therefore, I like to 
change with it.  When starting out, keep it simple so that you 
will remember what to do when stress really builds.  And trust 
me, the stress will build.  Write down a plan and stick with it 
for a significant amount of time.  Even the best system ever will 
have a losing trade, and it is all about confident when 
implementing a plan of attack.  If the system fails more often 
then not, inquire as to why.  Ask all your trader friends what is 
wrong.  Send me countless emails on what could be the problem.  
Just like being in school.  This is your education.  Please take 
advantage of it.

Let us say that you have been staring at every tick for 5 hours 
and still no trade.  Come on, something is wrong, right?  Of 
course not.  I have forced two trades in the last few months and 
lost thousands.  It is not fun.  I actually enjoy some days 
having a system that says ‘don’t trade.’  Not trading is so 
ridiculously hard, since it is like going into work all day and 
then not getting a paycheck after hours in the cubical.  However, 
if you try to force a paycheck, then the analogy is you sitting 
in the cubical all day and then paying money to do it.  The 
market loves to take money from impatient traders.  Don’t be one 
of them.  

Good Luck.

Questions are welcomed,

John Seckinger
jseckinger@OptionInvestor.com


**************************************************************
Annual Renewal Special
**************************************************************

The annual special this year is far too large to put into an
email. The highlights include two option expiration mousepads
to which we have added the FOMC meeting dates this year. There
are also two videos with Jim, Jeff and Buzz and seven books 
by leading market professionals like John Murphy and and Jim 
Rodgers. We even brought back the Trading Strategies CD from 
last year for all the new subscribers who have been asking 
for it. 

Click here for the full details:  

https://secure.sungrp.com/03renewal/#m
**************************************************************


**********
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

DISCLAIMER

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