Option Investor
Newsletter

Daily Newsletter, Thursday, 02/20/2003

HAVING TROUBLE PRINTING?
Printer friendly version
The Option Investor Newsletter                Thursday 02-20-2003
Copyright 2003, All rights reserved.                       1 of 3
Redistribution in any form strictly prohibited.


In Section One:

Wrap: Economy Stupid or Stupid Economy?
Futures Markets: (See Note)
Index Trader Wrap: (See Note)
Market Sentiment: It's the Economy
Weekly Manager Microscope: Robert Scharar: Commonwealth
Australia/New Zealand Fund (CNZLX)


Updated on the site tonight:
Swing Trader Game Plan: Picnic Basket for Yogi


Posted online for subscribers at http://www.OptionInvestor.com
************************************************************
MARKET WRAP  (view in courier font for table alignment)
************************************************************
      02-20-2003           High     Low     Volume   Adv/Dcl
DJIA     7914.96 - 85.60  8027.35  7893.74 1.39 bln 1478/1723
NASDAQ   1331.23 -  3.10  1344.29  1329.09 1.29 bln 1635/1598
S&P 100   424.29 -  4.51   430.63   423.70   Totals 3113/3321
S&P 500   837.10 -  8.03   849.37   836.56
W5000    7931.61 - 64.10  8032.12  7928.01
RUS 2000  359.74 -  0.54   360.94   359.07
DJ TRANS 2084.91 - 20.50  2114.07  2082.63
VIX        35.67 +  0.45    36.77    35.38
VXN        48.56 +  0.93    49.18    47.68
Total Volume 2,834B
Total UpVol  1,098B
Total DnVol  1,660M
52wk Highs  115
52wk Lows   193
TRIN       1.68
PUT/CALL   0.86
************************************************************

Economy Stupid or Stupid Economy?

Economists were run over by the economic bus this morning
but the markets barely reacted. The markets shook off the
bad news as just more evidence that the stupid economy is
still wandering aimlessly in the soft patch. President Bush
took to the stage today to warn that the economy could get
worse if his stimulus package was not passed soon. Based
on the volume nobody believed him.

Dow Chart - 10 min



Nasdaq Chart - 10 min




There was a flood of economic reports today and none of
them were positive. The Trade Deficit hit a record low in
December at -$44.2 billion and over 10% deeper than the
prior month. This shows that world markets are still in
decline and will probably remain weak through the first
quarter. It appears that weak global demand is slowing
manufacturing around the world. Global sentiment is falling
and with it global markets. The deficit is going to be a
drag on the 1Q-GDP and more analysts are now worried that
it could be negative.

The Jobless Claims rebounded over 400,000 and layoffs
appear to be growing again. Continuing claims rose to 3.44
million from 3.29 million. This number is nearing the 2001
high of 3.5 million. Without job growth any recovery is
still months away. Any initial recovery will be seen in
signs of increased productivity as manufacturers produce
more with existing workers until physical limits are
reached. As demand picks up we will see slowing jobless
claims before we see an increase in jobs. To date this has
not happened. The four-week moving average also rose to
395,000 and very close to the critical 400K level.

The MBA mortgage application index was flat for the week
due to a decline in refinancing applications being offset
by a slight rise in new purchase activity. Refis represented
72.5% of applications and will be the hardest hit by any
rate increase. The current 30yr mortgage is 5.69% and with
the PPI exploding today that number is at risk.

The Philly Fed Survey surprised analysts considerably at
2.3 compared to estimates of 10 to 12 and inline with
Dec/Jan numbers of 11.2. The numbers showed weakening
demand and slowing shipments. Shipments fell to 0.0 from
21.3 in January. This is very bearish. Inventories are
continuing to fall and prices paid rose sharply from 11.6
to 16.2. Prices paid are rising, prices received are
falling and demand is evaporating. Does not paint a very
pretty picture.

The Conference Board Leading Indicators came in a -0.1%
after being revised intraday. This dip ended a three-month
string of gains with November the highest at 0.5%. The
decline is increasing and only four of the ten components
made any improvement in the last six months. This shows
there is no recovery expected any time soon.

The biggest economic problem for the day was the PPI
report which came in at +1.6% compared to estimates of
+0.4%. The majority of the gain came from increases in
energy/oil prices but even without food/energy, the "core"
rate still rose more than twice the estimates at +0.9%.
This shows that producer prices rose on all levels and
there is suddenly real fear that the inflation monster
is returning. Like a preview of a Godzilla movie with
the monster quietly swimming under the ocean toward some
distant shore, the ripples on the surface are growing
while unsuspected civilians go about their lives. When
he arrives at the shore and suddenly stands up to his
full height it is too late for action and something is
going up in flames. That something for us is prices and
interest rates. Neither of which will help the economy.
The Fed is busy shoveling money into the system by the
truckload to prop up the economy and ward off deflation
but with inflation suddenly appearing they will have to
rethink their plan. Yesterday there was a 24% chance of
another rate cut at the FOMC meeting on March 18th but
with numbers like these those odds may shrink significantly.
Most feel that this number is a statistical error which
will be corrected next month. Others feel that it is
indicating rising demand pushing up prices. I fail to
see that demand in any other report. The PPI number was
the largest jump in 13 years.

About the only good news today came from Merrill Lynch
which upgraded the chip sector based on oversold conditions
and low inventory levels. They raised the sector from
negative to slightly positive. They feel that without
another significant drop in demand the sector is reasonably
valued. The research note suggested there could be a
+10% increase in demand in 2003 but they were not basing
the recommendation on that possibility. They said the
very low inventory levels could prompt a reasonable bounce
if there was any demand increase. The SOX has rebounded
from 260 to near 300 in the last four days and has been
instrumental in holding up the Nasdaq.

GE CEO Jeffery Immelt, was interviewed and said the US
economy was still very challenging but if the consumer
keeps spending we should not slip back into recession.
That is a very big "IF" based on currently falling
consumer sentiment and rising unemployment. In a rare
break with consensus many of the CEOs at the summit in
Florida said that even IF the war was avoided the economy
would still be in trouble.

The FNM CEO offered a competing view that most companies
were not holding up on spending. Hello, Franklin Raines,
anybody home? After the close FNM reaffirmed that it
would earn "about" what it earned in the 4Q or $1.66.
According to First Call the consensus was for $1.74.
Since FNM does not issue specific guidance it cannot
be seen as a warning but it was clearly an indication
that they were not going to meet the consensus numbers.
FNM also said they saw the housing market slowing by
2-3% this year. The stock was down in after hours.

BEAS announced earnings after the close that beat the
street but then gave guidance that was seen as negative.
Revenue estimates for the 1Q were less than expected and
they declined to give estimates for the full year and
used the Iraq ate my earnings outlook excuse. BEAS was
down slightly in after hours.

With earnings about over for the 4Q the outlook for the
year has dropped significantly with S&P full year earnings
now expected to grow only in the 8-9% range depending
on who is adding up the numbers. 40% of the S&P companies
have warned for the 1Q with only 23% giving positive
guidance. These percentages are based on already seriously
revised earnings estimates. The earnings hurdle is so low
it is painted on the asphalt instead of rising above it
and they are still cutting estimates. With the geopolitical
concerns not likely to ease for at least another month I
think it is safe to say the 1Q is already a loser.

After a substantial short covering rally which ended on
Tuesday afternoon the Dow has resumed its previous down
trend. There was a sharp spike at the close on Wednesday
but that evaporated just as quickly at the open on Thursday.
The Dow drop came to a halt at 7900 on Thursday and it
resisted every effort to push it lower. The final tally
was a -86 point close but considering the overwhelming
negativity of the economic reports it could have been
much worse.

The Nasdaq is the star of the show and is being held up
by the semiconductor sector. The Nasdaq held onto 1330
support all day and is still positive for the week. With
the SOX near strong resistance at 300 the odds of continued
support are slim.

With the Dow having completely retraced its gap up on
Tuesday and poised to break 7800 again there is real fear
that last weeks low of 7629 could be broken. The problem
is not a flood of sellers but lack of buyers. The volume
is nearing record low levels for the year and barely over
one billion each for the NYSE/Nasdaq. The Etrade CEO said
in an interview that even small investors are moving to
the sidelines and trading activity is slowing to a crawl.
If there was any concentrated selling event we could be
in serious trouble. We are drifting down due to lack of
interest rather than the results of massive dumping.
Mutual fund cash is nearing record levels and
institutional traders have simply stopped trading.

The geopolitical concerns along with economic concerns
have made trading about as profitable as a moonlight
walk through a minefield. They don't know if the next
new alert will be the one that sets off the panic drop.
They are afraid to be in the market and afraid to not be
in the market. This is why there is no selling. They are
maintaining current hedged positions but are not committing
any new funds to the market. Huge blocks of puts are
trading on the indexes and I-shares as new money is being
put to work as insurance instead of investment. In a
nutshell traders are adopting a bunker mentality and
while they are not selling they are not buying either.

The positive side of the equation is the lack of selling.
Bears appear to be as reluctant to short as bulls are
to buy. After the huge +450 point Dow romp from last
weeks lows the bears are afraid to go short again in
volume. They are nibbling but on a diet. With a Saddam
retirement announcement a 450 point gain could be just
the opening gap. The risk reward in this environment is
just not conducive to big positions.

One reader who has been trying to short several stocks
this week related that there was no stock available to
short in the semi sector or in the Dow diamonds (DIA).
I researched the diamonds and there was only three days
of volume short as of Jan-31. That means a heck of a
lot more people have shorted them since OR they have
taken the shares out of circulation to prevent them
from being shorted and putting pressure on the market.
The reader tried to short them in accounts at Brown,
InteractiveBrokers and CyberTrader with zero results.
I would lean more to the "removed from inventory" thesis
instead of all available shares shorted. The idea would
be to not voluntarily give your last box of bullets to
somebody that wanted to shoot back at you.

Friday is a tossup again. With the Dow five points above
last Friday's close anything is possible. We could see
buyers appear who missed last weeks rally. We could see
sellers appear confident that the bulls could not hold
the line and looking for 7500 next week. Tomorrow we
have the CPI or Consumer Price Index. With the lack of
attention the PPI got today the CPI should also be
ignored if negative. Either way there is likely to be
an afternoon bounce as everyone still trading goes flat
for the weekend.

Enter Very Passively, Exit Very Aggressively!

Jim Brown
Editor


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

Check the Site Later Tonight For John’s Futures Market Article
http://members.OptionInvestor.com/futureswrap/fw_022003_1.asp


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

Check the Site Later Tonight For Jeff’s Index Trader Article
http://members.OptionInvestor.com/itrader/marketwrap/iw_022003_1.asp


------------------------------------------------------------
WINNER of Forbes Best of the Web Award
  optionsXpress voted Favorite Options Site by Forbes
  Easy screens for spreads, collars, or covered calls
  Free streaming quotes
  Real-time option chains, charts + calculators

Go to http://www.optionsxpress.com/marketing.asp?source=oetics21

Note: Options involve risk. Risk disclosure:
http://www.optionsxpress.com/welcome_risk_index.htm
------------------------------------------------------------


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

It's the Economy
by Steven Price

It appears that without any major developments in the geo-
political arena, traders were left to focus only on the economic
data released this morning. That data showed an economy that is
far from improving.  In fact, it is hard to find a silver lining
in any of the data and the markets certainly reacted that way for
the most part.

The initial jobless claims for last week came in at 402,000,
breaking the barrier of 400,00 that economists use to judge
whether the employment picture is getting worse.  It was the
third straight rise in claims and came in above the consensus for
390,000.  During the holiday season, this number is subject to
wide fluctuations, but as we get further away from that time of
the year, the trend is definitely moving in favor of a worsening
picture. It was the highest level in seven weeks and pushed the
four-week moving average to 394,750, which is the highest level
in six weeks for that average.

The U.S. trade deficit grew by a record $44.2 billion in
December.  That resulted in a record $435.2 billion for the year
and registered an increase of $76.9 billion from 2001.  The
previous record was $378.7 billion, set in 2000.  The higher
deficit is partially a reflection of the U.S. economy showing
less weakness than that of the rest of the world.  While U.S.
policymakers can give themselves a weak pat on the back, a
worsening world economy does not mean good things to anyone.
December exports fell by 2.5%, while imports rose 1.7%. For the
full year, exports fell $35.6 billion, which was the second
largest year-over-year decline.

For those unemployed souls looking for the unemployment picture
to reverse the recent trend, a survey released by the Business
Council unfortunately does not bode well.  It CEO survey said
that only 9% of those responding said they were planning on
increasing hiring above last year's levels.  46% said they
planned no change in hiring practices (disappointing in and of
itself). The worst part of the survey came in the form of the 45%
that said they planned on reducing their hiring pace of 2002.

The Conference Board's Leading Economic Index fell 0.1% in
January, contrary to an inaccurate release that showed it
unchanged.  It was revised and re-released after including
revisions to its vendor performance category.    Not sure how it
was left out, since there are only ten indicators, but I suppose
if a Bear Stearns clerk can accidentally purchase almost a
billion dollars of stock (as happened last year), anything is
possible.  The indicators showed a 4:6 increase/decrease ratio.
The positive contributors to the index, from largest to smallest,
were average weekly initial claims for unemployment insurance
real money supply, manufacturers’ new orders for consumer goods
and materials, and interest rate spread. With the recent
increases in initial claims, the most positive indicator appears
in danger.  The negative contributors, from the largest to
smallest, were index of consumer expectations, building permits,
average weekly manufacturing hours, manufacturers’ new orders for
non-defense capital goods and stock prices.  The coincident index
turned up and for the six-month period through January has risen
0.2%.  The Conference Board interprets the results to point to a
more robust pace of economic activity in the coming months.

The Philly Fed survey came in far below expectations, with a
reading of 2.3, versus a consensus of 11.7, which would have been
a slight gain.  The shipments index fell to zero from 21.3 and
new orders dropped from 17.3 to 14.1.  Employment increased, from
the previous reading of negative 6.1, but still stayed negative
at -0.9.

The producer price index reflected the worst wholesale inflation
in 13 years. It was mostly due to an increase in energy costs,
which jumped 4.8%.  Prices also jumped elsewhere, as the core
inflation rate rose 0.9%.  Most of the core rate increase, which
excludes food and energy, came from a 3.5% increase in new car
prices.   That rise was partially due to the end of special
promotions.

With the rollover from Tuesday's high of Dow 8075 we have now
given up 170 points from the high after a 400+ point rally from
last Thursday's low of 7628.  With each move lower, the sinking
bullish percent's indication that we were just seeing an oversold
bounce appears more accurate. We took out 7900 on an intraday
basis, but rallied back above that level after the bond market
closed.  We have seen a late day rally following the close of the
bond market the last two days, which suggests bears lose a little
confidence when they are not getting confirmation.  The late day
rally did run out of steam, failing just below the daily S1 level
of 7942 noted in the Index Trader Wrap, for those traders
following the daily pivots.   The drop has also led us to another
point and figure reversal down and taken us back to the previous
triple bottom breakdown level of Dow 7900.  We got a similar
reversal in the OEX, but have yet to get one in the SPX, which
stopped just shy of the required 835 trade, bouncing at 836.56.

Bulls can make an argument that a 170-point pullback after a 400-
point gain is just a dip buying opportunity.  However, the bears
can suggest that a 400-point rally after a 1200-point drop is
more convincing as a short entry opportunity.  As long as the
bullish percents are still dropping and each bounce falls short
of a new buy signal, I am going to side with the bears.

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

Market Averages

DJIA ($INDU)

52-week High: 10673
52-week Low :  7197
Current     :  7914

Moving Averages:
(Simple)

 10-dma: 7887
 50-dma: 8341
200-dma: 8674



S&P 500 ($SPX)

52-week High: 1176
52-week Low :  768
Current     :  837

Moving Averages:
(Simple)

 10-dma:  834
 50-dma:  880
200-dma:  917



Nasdaq-100 ($NDX)

52-week High: 1734
52-week Low :  795
Current     : 1001

Moving Averages:
(Simple)

 10-dma:  978
 50-dma: 1015
200-dma: 1018



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

The Semiconductor Index (SOX.X):  The SOX continues to give
warning signs for bears.  I mentioned that it began to form
support before the major indices last week, foreshadowing a
possible bounce.  It hovered at 260 before it bounced along with
the broader markets and has now held its gains in spite of a
rollover in the Dow and Nasdaq. The sector has received upgrades
the past two days, as well. Morgan Stanley raised its rating on
the chip stocks on Wednesday from in-line to attractive (and no,
not after a few beers).  It said the reward to risk parameters
had become more attractive over the past few months and expects
the group to outperform the overall market in the next 12-18
months. On Thursday, Merrill Lynch shifted its stance on the
semis to slightly positive.  While that does not sound like an
overwhelming vote of support, it said it believes that valuation
is reasonable, if not highly attractive.  It also said that low
inventory levels and low capital spending would increase the
industry's sensitivity to an increase in demand.  The SOX closed
above its last bounce high of 292.07, but still has stiff
resistance just above at 300.  While the comments are positive -
sort of - I'd wait for a move over 300 before initiating long
plays in the sector.

52-week High: 641
52-week Low : 209
Current:      292

Moving Averages:
(Simple)

 21-dma: 277
 50-dma: 298
 200-dma: 335
-----------------------------------------------------------------


The VIX behaved as expected, with an increase on today's
pullback, but it didn't show a very big fear factor.  The gain of
 0.45 was mild, as it held above support at 35%, but didn't
 really jump. The premium calculation moved to March-April
 options at the beginning of the week, so expiration is not
 really a factor in the reluctance.  If we do get rolling
 downhill, however, there is plenty of room until it hits
 resistance at 40% again.  If it drops below 35% and the markets
 head higher, then we may be getting a clue that what we've seen
 the past two days were just a pullback on the way up in
 equities, as opposed to an oversold bounce on the way down.



CBOE Market Volatility Index (VIX) = 35.67 +0.45
Nasdaq-100 Volatility Index  (VXN) = 48.56 +0.93

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

          Put/Call Ratio  Call Volume   Put Volume

Total          0.86        367,753       291,620
Equity Only    0.86        592,988       509,333
OEX            1.05         33,666        35,426
QQQ            1.52         22,072        33,620


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

Bullish Percent Data

           Current   Change   Status
NYSE          40.3    + 0     Bull Correction
NASDAQ-100    34.0    + 1     Bear Confirmed
Dow Indust.   16.7    + 0     Bear Confirmed
S&P 500       34.8    - 0     Bull Correction
S&P 100       29.0    + 0     Bear 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  1.09
10-Day Arms Index  1.24
21-Day Arms Index  1.33
55-Day Arms Index  1.36


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       1286          1536
NASDAQ     1541          1519

        New Highs      New Lows
NYSE        36               61
NASDAQ      69               72

        Volume (in millions)
NYSE       1,392
NASDAQ     1,297


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

Commitments Of Traders Report: 02/11/02

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 slightly decreased long positions, while increasing
shorts by a more significant amount.  The net result was an
increase of 8700 on the short side. Small traders increased longs
by 10,000 and shorts by 2,000.

Commercials   Long      Short      Net     % Of OI
01/21/03      415,028   456,885   (41,857)   (4.8%)
01/28/03      422,232   468,586   (46,354)   (5.2%)
02/04/03      414,543   465,678   (51,135)   (5.8%)
02/11/03      412,333   472,156   (59,823)   (6.8%)

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
01/23/03      148,227    95,356    52,871     21.7%
01/28/03      142,734    85,567    57,167     25.0%
02/04/03      151,174    93,439    57,735     23.5%
02/11/03      161,126    95,618    65,508     25.5%

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 reduced longs by 1,500 and increased shorts by 3,000,
for a 6% increase in overall short position. Small traders
increased the long side by 4,000 contracts, while leaving shorts
close to unchanged.


Commercials   Long      Short      Net     % of OI
01/23/03       37,174     49,789   (12,615) (14.5%)
01/28/03       37,955     49,321   (11,366) (13.0%)
02/04/03       40,934     50,992   (10,058) (10.9%)
02/11/03       39,412     53,818   (14,406) (15.5%)

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
01/23/03       25,852     6,764    19,088    58.5%
01/28/03       25,814     7,576    18,238    54.6%
02/04/03       25,573     8,648    16,925    49.5%
02/11/03       29,667     8,915    20,752    53.8%

Most bearish reading of the year: (10,769) - 06/11/02
Most bullish reading of the year:  19,088  - 01/21/02

DOW JONES INDUSTRIAL

Commercials increased long positions by 2,000 contracts and
shorts by 600.  Small traders took a similar approach with an
increase of 800 to the long side and a small decrease to shorts.

Commercials   Long      Short      Net     % of OI
01/23/03       16,901    11,031    5,870      21.0%
01/28/03       16,013    11,574    4,439      16.1%
02/04/03       17,596    11,232    6,364      22.1%
02/11/03       19,826    11,800    8,026      25.4%

Most bearish reading of the year: (8,322) -  1/16/01
Most bullish reading of the year: 15,135  - 10/16/01

Small Traders  Long      Short     Net     % of OI
01/23/03        5,120     8,282    (3,162)   (23.6%)
01/28/03        4,838     7,836    (2,998)   (23.7%)
02/04/03        4,583     9,424    (4,841)   (34.6%)
02/11/03        5,390     9,300    (3,910)   (26.6%)

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

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


------------------------------------------------------------
VOTED one of "Best Online Brokers" (4 stars)--Barron's
  optionsXpress's "order-entry screens...go far beyond...
   other online broker sites"--Barron's
  8 different online tools for options pricing, strategy, and charting
  Access to options specialists via email, phone or live chat online
  Real-Time Buying Power, Account Balances or Cancels

Go to http://www.optionsxpress.com/marketing.asp?source=oetics22

Note: Options involve risk. Risk disclosure:
http://www.optionsxpress.com/welcome_risk_index.htm
------------------------------------------------------------


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

Robert Scharar: Commonwealth Australia/New Zealand Fund (CNZLX)

Robert Scharar is the founder and president of FCA Corporation,
which has served as the investment advisor to the Commonwealth
Funds: Australia/New Zealand Fund (CNZLX), a Morningstar 5-star
rated Pacific/Asia ex-Japan fund, since fund inception in 1991.
Scharar co-founded First Commonwealth Associates in 1975; then,
established FCA Corporation in 1983.

Scharar's background is rather unique.  Before getting into the
investment management profession, he was an accounting professor
at Bentley and Nichols Colleges, an officer of the United States
Trust Company, and a tax specialist with Coopers & Lybrand.  Mr.
Scharar is member of the bar associations in two states, Florida
and Massachusetts.  He is also a Certified Public Accountant, so
quite a list of accomplishments to his credit.

Being an accounting and tax specialist, you'd assume that Scharar
has excellent bottom-up research skills, analyzing company income
statements and balance sheets.  He's also a lawyer, so that helps
to understanding potential risks of the company that might have a
material adverse effect on earnings today or in the future.  Take
nearly 20 years of investment management experience along with an
expertise in accounting, tax and legal matters, and you have good
ingredients for portfolio management success.

The $16 million Australia/New Zealand Fund (CNZLX) is a member of
the Commonwealth Funds (www.commonwealthfunds.com), which invests
in the other 50 percent of the world equity market capitalization
outside the United States.  It's one of three international funds
comprising The Commonwealth International Series Trust.  The firm
also provides the Japan Fund (CNJFX) and Commonwealth Global Fund
(CNGLX).

According to the website, the Commonwealth Funds seek investment
opportunities in countries, which are strong participants in the
"global arena."   Japan and the lower Pacific Rim, they say, are
often referred to as the bookends of the Pacific Rim due to their
strategic Asian locations.  Scharar's firm brought to market the
New Zealand fund in 1991, and later expanded the fund's focus to
include the Australian marketplace (hence its current fund name).
FCA took over the Commonwealth Japan Fund in 1997.

Our primary focus herein is on the Australia/New Zealand fund and
its superior risk-adjusted performance relative to its peer group
(Pacific/Asia ex-Japan funds) over time.  With over 50 percent of
the world's population concentrated in the Pacific Rim, Australia
and New Zealand companies are uniquely positioned to capture this
regional growth.  This international fund may be appropriate for
long-term investors seeking the investment opportunities offered
by the region or looking to diversify into international markets,
reducing their exposure to any one region of the world.

Investment Style/Strategy

Robert Scharar seeks to achieve the Australia/New Zealand Fund's
long-term growth of capital and income objective by investing in
common stock, securities convertible into common stock, and debt
securities traded in the Australian and New Zealand markets.  In
security selection, Scharar emphasizes companies with "dominant"
market positions, "reliable" earnings, and exposure to "exports."

According to the Commonwealth Funds' website, Australia is known
for its natural resources, and is a major exporter of many types
of products including metals and minerals, fossil fuels, as well
as agricultural products.  As new technologies emerge there, the
economy is becoming more service-oriented, providing new capital
growth opportunities.  New Zealand is a "natural gateway" to the
southern Pacific Rim, the website says and an efficient producer
and exporter of agricultural products.  The New Zealand economy
remains strongly trade-oriented and today includes energy-based
industries, forestry, mining, horticulture, technology, tourism,
etc.

Pervasive through all of the Commonwealth Funds is the desire to
research and invest in long-term, quality companies that possess
good fundamentals and attractive valuations.  Portfolios such as
the Australia/New Zealand Fund are managed by experienced equity
managers who make numerous investment trips across the region as
part of the regular due diligence process.  The ultimate goal of
all Commonwealth mutuals is above average, risk-adjusted returns
over time.

According to Morningstar's latest fund report, Scharar had 95.7%
of the fund's assets invested in stocks, with 91.1% of assets in
foreign stocks.  Virtually all of the fund's assets are invested
in Australia and New Zealand, with just 1.2% in Switzerland.  So,
these markets provide U.S. stock investors a unique international
diversification opportunity.  Scharar's value consciousness means
that the portfolio tends to land in the Morningstar "value" style
box.  It also maintains a small-cap bias overall, with large- and
mid-cap stocks comprising just around 15% of assets.

Scharar also maintains a more concentrated portfolio than similar
U.S. stock funds.  The total number of stock holdings at May 2001
was 35, with over 60% of assets represented by the fund's top ten
holdings.  The fund's top ten holdings are all New Zealand-based.
Morningstar's portfolio information is dated, but considering the
fund's long-term approach and low annual turnover (28%), the fund
portfolio probably hasn't changed much since then.

Fund Performance/Ratings

Because of the relatively low price valuations of stock holdings,
Scharar has succeeded in keeping the fund's risk level down when
compared with other Pacific/Asia ex-Japan funds for a Morningstar
"low" risk rating.  The fund risk has elevated to "below average"
over the last three years, according to Morningstar, but over the
long run, the fund has maintained a low-risk profile, producing a
strong return-to-risk tradeoff for investors.

Below is a summary of Scharar's performance with the Commonwealth
Australia and New Zealand Fund using Morningstar's return figures
through February 19, 2003.  Returns in excess of 1 year are shown
on an annualized total return basis.  Trailing 10-year returns as
of January 31, 2003.

 1-Year Total Return:
 +21.4%  Australia/New Zealand Fund (CNZLX)  1st Percentile
 -13.3%  Average Pacific/Asia ex-Japan Fund

 3-Year Annualized Return:
 + 8.4%  Australia/New Zealand Fund (CNZLX)  2nd Percentile
 -16.1%  Average Pacific/Asia ex-Japan Fund

 5-Year Annualized Return:
 + 3.8%  Australia/New Zealand Fund (CNZLX)  7th Percentile
 - 1.4%  Average Pacific/Asia ex-Japan Fund

 10-Year Annualized Return:
 + 2.7%  Australia/New Zealand Fund (CNZLX)  12th Percentile
 - 0.3%  Average Pacific/Asia ex-Japan Fund

Note that in addition to performing well relative to its category
peers, the Commonwealth Australia/New Zealand Fund has managed to
produce positive returns for investors while the market was lower
and similar funds depreciated in value.  Of the nine mutual funds
in the category that have been around 10 years, only one sports a
better trailing 10-year average return of 2.9%, DFA's Pacific Rim
Small Company Fund (DFRSX).  The DFA fund also maintains a small-
cap value style.

It is to imagine that you could ask much more from this fund, and
its portfolio manager, yet if annual operating expenses were less
than they are now, return performance would even be stronger.  At
5.74%, the Australia/New Zealand Fund's expense ratio is about as
high as I have seen in a mutual fund.  Blame part of that on this
fund's low asset base, so expenses as a percentage of assets will
most likely come down if/when assets grow.  Still, if you want to
invest in the continent, the choices are limited.

Conclusion

While the 5.74% expense ratio is high, Scharar has done a lot to
overcome the fund's cost hurdle.  He has excelled in several key
areas relative to similar funds.  He's earned strong, consistent
returns for investors while also excelling at preserving capital.
The fund's low turnover makes it fairly tax-efficient, adding to
its appeal and making it a suitable choice for investors seeking
long-term exposure to the land down under.

For more information, log on to the Commonwealth Funds website at
www.commonwealthfunds.com.

Steve Wagner
Editor, Mutual Investor
steve@mutualinvestor.com


------------------------------------------------------------
We got trailing stops!
  Trade online with trailing stops at optionsXpress, at no extra cost
  Trailing stops based on the option price or the stock price
  Also place Contingent, Stop Loss, and "One Cancels Other" orders
  $1.50 /contract (10+ contracts) or $14.95 Minimum--NO Hidden Fees!

Go to http://www.optionsxpress.com/marketing.asp?source=oetics23

Note: Options involve risk. Risk disclosure:
http://www.optionsxpress.com/welcome_risk_index.htm
------------------------------------------------------------


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

Picnic Basket for Yogi

Wednesday's late day rally continued briefly this morning, but
quickly lost its legs as a barrage of economic data gave the bears
plenty of ammunition.


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


FREE TRIAL READERS
******************
If you like the results you have been receiving we
would welcome you as a permanent subscriber.

The monthly subscription price is 39.95. The quarterly
price is 99.95 which is $20 off the monthly rate.


We would like to have you as a subscriber. You may
subscribe at any time but your subscription will not
start until your free trial is over.

To subscribe you may go to our website at

www.OptionInvestor.com

and click on "subscribe" to use our secure credit
card server or you may simply send an email to

 "Contact Support"

with your credit card information,(number, exp date, name)
or you may call us at 303-797-0200 and give us the
information over the phone.

You may also fax the information to: 303-797-1333


**********
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 02-20-2003
Copyright 2003, All rights reserved.                        2 of 3
Redistribution in any form strictly prohibited.


In Section Two:

Dropped Calls: NPSP
Dropped Puts: HIG
Daily Results
Call Play Updates: EMC, TECD, SLAB, AMGN, TRMS
New Calls Plays: None
Put Play Updates: CB, OSI
New Put Plays: MHK, VZ


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

NPSP $18.27 -6.07 (-5.41) Speculation about a merger between
NPSP and ENZN was confirmed this morning, and investors didn't
like the deal one little bit.  NPSP agreed to acquire ENZN in
an all-stock deal and the stock has been hammered throughout
the session, giving up nearly 25% of its value in the process.
With our stop up near $21, there's no question about dropping
the play tonight.  As mentioned in the Market Monitor, the
intraday bounce off the morning lows was the best shot at
getting out of open positions, and with the stock closing near
its low of the day, it doesn't look good for the bulls.  If
still holding open positions, take the loss and move on.


PUTS:
*****

HIG $37.37 +0.26 (+0.37) With the broad markets weak again on
Thursday, we saw a bit more weakness creep into the Insurance
sector, with the IUX posting a slight loss on the day.  But HIG
bucked that trend, spending the whole day in the green.
Despite the fact that the stock ended near its low of the day,
it looks like the downtrend may have run its course.  Rather
than keep waiting for HIG to break lower, we're dropping the
play tonight in favor of other plays that are showing more
movement.  For traders holding open positions, we would
recommend closing out on any weakness on Friday or at the very
least lowering stops to $38.25, just above today's intraday
high.


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

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

CALLS              Mon    Tue    Wed   Thu  Week

AMGN     53.99    0.00   1.02   1.39  0.01  Still heading higher
EMC       8.25    0.00   0.59  -0.22  0.07  Holding gains
NPSP     18.27    0.00   0.39  -0.29 -6.07  Drop, merger
SLAB     26.65    0.00   1.02  -0.16  1.31  Relative strength
TECD     22.08    0.00   0.44   0.02  0.20  Higher in gap
TRMS     42.74    0.00   0.68   0.55  0.29  Pushing $43


PUTS

CB       47.99    0.00   0.70  -0.32 -0.90  Close under $48
HIG      37.37    0.00   0.40  -0.64  0.26  Drop, sideways
MHK      49.27    0.00   0.52  -1.36 -0.62  New, lower high
OSI      30.16    0.00  -0.62   0.00 -0.29  Waiting for $30
VZ       34.76    0.00   0.55  -0.80 -1.84  New, Relative low


------------------------------------------------------------
WINNER of Forbes Best of the Web Award
  optionsXpress voted Favorite Options Site by Forbes
  Easy screens for spreads, collars, or covered calls
  Free streaming quotes
  Real-time option chains, charts + calculators

Go to http://www.optionsxpress.com/marketing.asp?source=oetics21

Note: Options involve risk. Risk disclosure:
http://www.optionsxpress.com/welcome_risk_index.htm
------------------------------------------------------------


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

EMC  $8.25 +0.07 (+0.34 for the week) After breaking out above $8
resistance and then setting a new relative high, EMC has gone
into consolidation mode.  It has been forming what looks like a
bull flag on the daily chart, while maintaining the bullish
signal on the point and figure charts. The buy signal on the PnF
came at $8.00 and the stock added another box at $8.50.  While it
hasn't added to the upside, it has held its gains above
resistance in spite of a sinking market around it.  This show of
relative strength is encouraging, considering previous resistance
has acted as support over the past two sessions, with daily lows
of $8.15 and $8.13.  With no company specific news to drive the
stock in either direction we are left to decipher the charts and
so far there has been no indication that the recent bullish
action has been anything but genuine.

---

TECD $ 22.08 +0.20 (+0.57 for the week) Try as they might, the
bears just can't seem to make any headway with TECD.  Over the
past week the stock has found eager buyers during intraday
pullbacks.  Shares responded well to the recent broader market
rally, and they've continued to move higher over the past two
sessions while the NASDAQ lost its upward momentum.  On Thursday
TECD popped above what had been short-term resistance at $22.00.
Shares finished solidly in the green after setting a new relative
high of $22.21.  A move above this level on Friday might provide
another bullish entry point.  Should the stock pull back, we'll
be looking for buyers to move in at the $21.90-$22.00 region,
near the short-term ascending trend of higher lows.  For the time
being we'll keep our stop set at $20.49.  More conservative
traders can use a stop slightly below $21.50 or $21.00.

---

SLAB $ 26.65 +1.31 (+2.05 for the week) Positive comments from
Morgan Stanley's semiconductor analyst and an upgrade of several
stocks within the chip sector did not lead to any gains for the
SOX.X on Wednesday.  Shares of SLAB mirrored the flat action in
the index and traded an Inside Day.  This morning saw another
brokerage upgrade in the semiconductor group - this time from
Merrill Lynch, who said that its outlook for the industry had
turned to "slightly positive" from "negative."  These comments
set the stage for an early-session rally in both the SOX.X and
SLAB.  The stock performed especially well, breaking out of the
Inside Day formation before topping out slightly below $27.00.
(Your charting service may show an intraday high of $28.49.  This
was a bad tick - the high for the session was actually $26.95.)
Our long play was activated at $25.74.  With no company-specific
news to explain today's powerful 5.1% rally, it looks like
shareholders were simply the beneficiaries of a strong short
squeeze.  The bears just weren't able to justify holding on short
positions as SLAB broke to new highs.  This move came on the
strongest volume in over two weeks, which is exactly what we like
to see when these types of breakouts occur.  Given this technical
strength, we think chances are good that SLAB will eventually be
able to move up to the December highs near $30.00.  Traders who
are still looking to get long can watch for a move above $27.00.
Our stop is currently located at $23.24.  Those with a more
conservative risk management strategy could use a stop slightly
below $25.00.

---

AMGN $53.99 +0.01 (+1.39) Inching ever closer to that breakout
over resistance, AMGN bucked the bearish trend in the
Biotechnology sector again on Thursday.  The BTK index has
fallen back from the $327-330 resistance level over the past 2
days, coming to rest today right at that important $320 level.
In contrast, AMGN has continued to work higher, posting another
intraday high over the $54 level.  The way the stock is bucking
the trend of its sector hints that a breakout is indeed just
around the corner.  Traders looking for a new entry into the
play will want to wait for a decisive move over resistance, and
a viable trigger would be a trade over $54.25.  Should we get
another intraday pullback before that move, we can target a
rebound from the $52.50-53.00 area, which once again provided
intraday support this morning.  Until AMGN completes that
breakout, we're maintaining our stop at $51.

---

TRMS $42.74 +0.29 (+1.62) Our TRMS play has had a hard time
getting moving this week, but the picture depicted on the daily
chart is becoming more encouraging.  After another successful
bounce from the $40 level, the stock has worked its way right
back up to the $43 level that provided resistance on the last
rally attempt.  In addition to the historical resistance, the
20-dma ($42.66) and the 50-dma ($42.82) have been providing
resistance.  But with the late day surge of volume that pushed
the stock back over the $42.50 level, it looks like the bulls
are getting ready to take out that resistance.  Intraday dips
to support can still be used to enter the play (perhaps in the
$41.50-42.00 area), but traders looking for some confirmation
first will want to wait for a decisive move over $43 before
playing.  Once clear of that hurdle, the bulls are likely to
focus on the $45 level as a near term target and that might
make for a decent level to harvest some gains, with the 200-dma
looming at $45.47.  Raise stops to $40 tonight and we'll trail
them up to $41 if TRMS can break through the $43 level on a
closing basis.


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

None


------------------------------------------------------------
 optionsXpress has "...a lot of bang for the buck."--Barron's

  $1.50 /contract (10+ contracts) or $14.95 Min. No hidden fees
  Easy screens for spreads, collars, or covered calls!
  Contingent, Stop Loss, Trailing stop, or OCO
  8 different online tools for options pricing, strategy, and charting

Go to http://www.optionsxpress.com/marketing.asp?source=oetics25

Note: Options involve risk. Risk disclosure:
http://www.optionsxpress.com/welcome_risk_index.htm
------------------------------------------------------------


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

CB $47.99 -0.90 (-0.70) One of the key sources of weakness in
the Insurance sector (IUX.X) on Thursday was our CB play, after
the stock was downgraded by Wachovia from Market Perform to
Underperform.  In addition to lowering their rating on the
stock, the firm also cut its earnings estimates for 2003 from
$4.64 to $4.10, and cited a fair valuation target of $39-41.
While the stock traded down on the news, losing 1.8% on the day,
the bears didn't seem particularly intent on pressing their
advantage, as they couldn't break last week's intraday low of
$47.60.  Nevertheless, the stock did close at a new multi-year
low and with the Stochastics just starting to tip bearish, new
entries look favorable on a break below the $47.50 level.  Take
note of how the 10-dma (currently $49.02) has persistently
pressured shares of CB over the past few days.  Another failed
rebound below this average before the expected breakdown can
also be used as a new entry into the play.  Lower stops to $50,
which is just above Tuesday's intraday high.

---

OSI $30.16 -0.29 (-1.29) In an impressive show of stubborn
resolve, our OSI play has so far refused to break down below
our $30 trigger, but late-day weakness on Thursday has that
threshold getting closer to being breached.  After popping a
bit higher this morning, OSI turned south as soon as it finished
filling yesterday's gap down and the stock then proceeded to
trade lower throughout the day, ending at its low.  Aggressive
traders will still want to target entries into the play on a
break below the $30 level, while more conservative traders will
prefer to wait for a failed rally below the $30 level after
that breakdown.  Keep in mind that we're targeting a fairly
small move in shares of OSI, looking to take a piece of the
ongoing slide on its way to our initial target of $28.  Should
things really get moving in our favor, we could see a drop to
the $26 level, and that would be the ideal point to harvest
gains.  Until the play is triggered though, we remain on the
sidelines, waiting for confirmation with our stop set at $32.75.


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

MHK – Mohawk Industries, Inc. $49.27 -0.62 (-0.81 this week)

Company Summary:
Mohawk Industries and its subsidiaries, are producers of
floorcovering products for residential and commercial
applications in the United States.  The company is the second
largest carpet and rug manufacturer, and a manufacturer,
marketer and distributor of ceramic tile and natural stone.
Through its carpet and rug business, MHK designs, manufactures
and markets carpet and rugs in a broad range of colors,
textures and patterns and is a producer of woven and tufted
broadloom carpet and rugs, principally for residential
applications.

Why We Like It:
While the jury is still out as to whether the housing market is
in a bubble, there is little question that the consumer has been
getting much more cautious about spending money.  Despite
continued strong reports out of the Housing industry, there have
been a number of cautionary signs in recent months.  One of the
most significant came from MHK with their latest earnings report
2 weeks ago.  The company handily beat earnings estimates, but
cautioned that earnings results for the next quarter would be
well shy of analyst estimates due to weak consumer confidence
and the looming war with Iraq.  This ties into the housing
picture, as MHK's business is directly linked to demand for
housing.  If MHK sees slackening demand for its products, this
could be an early warning of things starting to deteriorate in
the overall housing market.  The price action in MHK certainly
hasn't been encouraging to the bulls over the past few months, as
it has been a series of lower highs and lower lows since the
stock stalled out near the $63 level in early December.  The
price slide really started to pick up steam about a month ago
when the stock broke under the 200-dma, and as of a week ago, MHK
was within $3 of its October low.  The oversold rebound throughout
the market lifted the stock up to the declining 20-dma (currently
$51.12), which is right at broken support (now resistance) from
late January.  Judging by the picture on the PnF chart, there is
still some substantial risk to the downside, as the bearish price
target is now $34.  The recent bounce seems to have relieved the
oversold condition and with daily Stochastics just starting to
tip bearish, it looks like we're just in time for the next
downward leg in this trend.  A failed bounce below the $51 level
looks like the best case for new entries, although more cautious
traders may want to wait for a break under $48.50 before playing.
We're starting the play with a fairly tight stop at $51.75, which
is just above the 20-dma and the intraday highs from earlier in
the week.  Because of the company's tight connection to the
Housing sector, we can watch for confirmation of weakness in
the Dow Jones Home Construction index ($DJUSHB).

BUY PUT MAR-50*MHK-OJ OI=29 at $2.60 SL=1.25
BUY PUT MAR-45 MHK-OI OI=20 at $0.85 SL=0.40

Average Daily Volume = 462 K


---

VZ – Verizon Communications $34.76 -1.84 (-2.58 this week)

Company Summary:
Formed by the merger of Bell Atlantic and GTE, VZ is one of the
world's leading providers of communications services.  As the
largest provider of wireline and wireless communications in the
United States, VZ has 95 million access lines and 26 million
wireless customers.  Outside the United States, Verizon
affiliates serve 6 million wireless customers and operate 4
million access lines in 40 countries throughout the Americas,
Europe, Asia and the Pacific.

Why We Like It:
In what is turning out to be a rather contentious showdown at the
FCC, the agencies Chairman, Michael Powell is facing a significant
setback in his deregulation attempt of the Telecommunications
industry.  Mr. Powell had promised to sweep away rules forcing
the dominant Bell telephone companies to share some of their
local connections with smaller competitors such as SBC, BLS and
VZ.  This morning, the WSJ reported that the FCC is expected to
vote in favor of a rival plan that would give states more power
to maintain the current rules.  Responding to this ongoing
conflict, Lehman downgraded SBC this morning, citing the risks
to the entire industry from a fractured FCC, which creates
regulatory uncertainty.  While SBC was the target of Lehman's
downgrade this morning, it doesn't take a great leap of logic
to see that VZ will similarly be affected by the same uncertain
regulatory environment.  Even before this development, shares of
VZ were looking unhealthy, having topped out at another lower
high on Tuesday.  Today's news was good for a 5% loss in the
stock, as it broke below the late-January lows.  Looking at the
PnF chart, we can see that this play does carry more risk, as
the stock is resting just above its bullish support line at $34.
So we have to be on the lookout for a possible bounce attempt
from the $33-34 area.  But with the vertical count pointing to
the $25 level, VZ below its 200-dma ($36.60) again and the North
American Telecoms index (XTC.X) back under its own 200-dma
($425), the odds certainly seem to favor significantly more
downside ahead.  Since we have the potential for a rebound from
the $33-34 area (both from the bullish support line and broken
resistance from the August-October timeframe) only aggressive
traders should consider entering the play on a breakdown below
Thursday's intraday low.  The safer approach will be to wait
for a failure of that bounce, preferably near the $36 level, to
open new positions.  Now that the 200-dma has been broken again,
if this is the beginning of a significant move, the bulls
shouldn't be able to push the stock back over that average.  So
we're setting our stop at $36.75, just above the 200-dma.

BUY PUT MAR-35*VZ-OG OI=2771 at $2.00 SL=1.00
BUY PUT MAR-32 VZ-OZ OI=2683 at $1.05 SL=0.50

Average Daily Volume = 7.12 mln



------------------------------------------------------------
Quit paying fees for limit orders or minimum equity
   No hidden fees for limit orders or balances
   $1.50 /contract (10+ contracts) or $14.95 minimum.
   Zero minimum deposit required to open an account
   Free streaming quotes

Go to http://www.optionsxpress.com/marketing.asp?source=oetics24

Note: Options involve risk. Risk disclosure:
http://www.optionsxpress.com/welcome_risk_index.htm
------------------------------------------------------------


**********
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 02-20-2003
Copyright 2003, All rights reserved.                        3 of 3
Redistribution in any form strictly prohibited.


In Section Three:

Play of the Day: Put - VZ
Traders Corner: What Are Those Little Voices Telling You?  You’re
Off Your Meds!
Futures Corner: When NOT to use S1
Options 101: Gold Vehicles, Part II (Not the Chariot Type)

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

VZ – Verizon Communications $34.76 -1.84 (-2.58 this week)

Company Summary:
Formed by the merger of Bell Atlantic and GTE, VZ is one of the
world's leading providers of communications services.  As the
largest provider of wireline and wireless communications in the
United States, VZ has 95 million access lines and 26 million
wireless customers.  Outside the United States, Verizon
affiliates serve 6 million wireless customers and operate 4
million access lines in 40 countries throughout the Americas,
Europe, Asia and the Pacific.

Why We Like It:
In what is turning out to be a rather contentious showdown at the
FCC, the agencies Chairman, Michael Powell is facing a significant
setback in his deregulation attempt of the Telecommunications
industry.  Mr. Powell had promised to sweep away rules forcing
the dominant Bell telephone companies to share some of their
local connections with smaller competitors such as SBC, BLS and
VZ.  This morning, the WSJ reported that the FCC is expected to
vote in favor of a rival plan that would give states more power
to maintain the current rules.  Responding to this ongoing
conflict, Lehman downgraded SBC this morning, citing the risks
to the entire industry from a fractured FCC, which creates
regulatory uncertainty.  While SBC was the target of Lehman's
downgrade this morning, it doesn't take a great leap of logic
to see that VZ will similarly be affected by the same uncertain
regulatory environment.  Even before this development, shares of
VZ were looking unhealthy, having topped out at another lower
high on Tuesday.  Today's news was good for a 5% loss in the
stock, as it broke below the late-January lows.  Looking at the
PnF chart, we can see that this play does carry more risk, as
the stock is resting just above its bullish support line at $34.
So we have to be on the lookout for a possible bounce attempt
from the $33-34 area.  But with the vertical count pointing to
the $25 level, VZ below its 200-dma ($36.60) again and the North
American Telecoms index (XTC.X) back under its own 200-dma
($425), the odds certainly seem to favor significantly more
downside ahead.  Since we have the potential for a rebound from
the $33-34 area (both from the bullish support line and broken
resistance from the August-October timeframe) only aggressive
traders should consider entering the play on a breakdown below
Thursday's intraday low.  The safer approach will be to wait
for a failure of that bounce, preferably near the $36 level, to
open new positions.  Now that the 200-dma has been broken again,
if this is the beginning of a significant move, the bulls
shouldn't be able to push the stock back over that average.  So
we're setting our stop at $36.75, just above the 200-dma.

BUY PUT MAR-35*VZ-OG OI=2771 at $2.00 SL=1.00
BUY PUT MAR-32 VZ-OZ OI=2683 at $1.05 SL=0.50

Average Daily Volume = 7.12 mln



------------------------------------------------------------
VOTED one of "Best Online Brokers" (4 stars)--Barron's
  optionsXpress's "order-entry screens...go far beyond...
   other online broker sites"--Barron's
  8 different online tools for options pricing, strategy, and charting
  Access to options specialists via email, phone or live chat online
  Real-Time Buying Power, Account Balances or Cancels

Go to http://www.optionsxpress.com/marketing.asp?source=oetics22

Note: Options involve risk. Risk disclosure:
http://www.optionsxpress.com/welcome_risk_index.htm
------------------------------------------------------------


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

What Are Those Little Voices Telling You?  You’re Off Your Meds!
By Mike Parnos, Investing With Attitude

One of the greatest attributes of a CPTI successful trader is
patience.  The real art of trading is not only to make the right
move at the right time, but also to leave the wrong things
untouched at the most tempting moments.

Temptation is a worthy adversary and is difficult to defeat.  A
few positive days in the market and the trading adrenaline starts
to percolate.  Oh oh!  You’re off your meds again.

The bullish voice on says, “Quick, buy a call!  The bear market is over.

The bearish voice answers, “It’s just a bounce.  Buy a put.”

The voice of reason, the CPTI student says, “Come on, guys,
relax.  Let’s put on a video and order Chinese.”

If you’re not nibbling on fortune cookies and counting your
profits, you’re probably going to lose.

With the market looking like it may bounce up, a word of caution.
Be careful.  Get your prescription refilled.  Here’s a story that
may help you put market bullishness and irrational exuberance
into perspective.

Definition of a Bull
Perhaps you’ve heard the story of the boy who lived in a small
glass house.  A man would pass by this house every day and would
see this boy inside house shoveling manure all day.  Finally,
curiosity got the best of the man.  He knocked on the glass door.
When the little boy answered the door, the man asked, “Every day
I walk past your house and every day you’re shoveling st all day
long.  Why?”

The boy responded, “With all this st, there’s got to be a pony
in here somewhere.”
_____________________________________________________________

Mike,
With only four days left until expiration, there is a very good
chance that the in-the-money spread that I played on the QQQ's
will end up worthless. I am curious though, do you ever buy back
the calls or puts at say a $.05 in order to jump in on something
with more time value so you could make more money?  Or do you
wait out the ones you purchased and then go and buy your spread?
This email sounds confusing to even me. If you get the gist of my
question, would you please shed some light?
Thanks.

Response:
You can certainly buy both the short Feb. QQQ $21 puts and the
Feb. QQQ $29 calls back for a total of $.10 plus a few
commissions.  You have to weigh whether or not the two short
options you will be rolling out to will lose $.10 (plus two
commissions) in time value over the next six days (four trading
days plus the weekend).  The answer is that it probably would be
a good idea to buy back the February short options and roll out
to sell the April $28 calls and April $22 puts for about $1.20.

We're cheating a little by selling the $22 & $28 rather than the
$21 and $29. The QQQs have been trading in a pretty narrow range
lately.  It seems a lot of volatility (premium) had come out of
the QQQs.  So, in order to generate some decent premium, we have
to bring in the strikes of the short options just a bit.

Also, be aware that there may be a large movement related to the
war.  Just be on your toes.
_____________________________________________________________

Mike,
Exactly what is the difference between an Iron Condor and just a
condor?

I love your comments and attitude toward investing.    Were you a
stand up comic in your past life???  Thanks

Response:
Thanks for the kind words.  I'm glad you enjoy the column.  I
love to teach and make people smile.  I was never a stand-up
comic, but I learned a long time ago not to take life too
seriously.  There's humor everywhere and in every situation -- if
you look for it.  Unfortunately, much of the world is paranoid.
They look for grief and find it.  It's a self-fulfilling prophecy.

Regarding Iron Condors vs. Condors.
The Iron Condor uses both puts and calls and is a credit strategy
-- you receive the potential profits the next business day after
you establish the position.  If everything works out well, all options
will expire worthless and you’ll keep the credit received.

The basic condor uses only calls OR puts and is a debit
strategy.  To make money you will have to sell a long position
and incur additional commission expenses.
_____________________________________________________________

CPTI PORTFOLIO POSITION UPDATE
Position #1: BBB Iron Condor – Closed Thursday at $87.70.
An Iron Condor is a credit position consisting of both a bull put
spread and a bear call spread. The objective is for the BBH to
finish anywhere within the $85-$95 range.  BBH has a $2.70
cushion that should get it through tomorrow.

Position #2: MMM Iron Condor – Closed Thursday at $124.85.
The support at $120 once again seems strong, as does the
resistance at $130. That should give MMM enough room (10 points).
We’re one trading day away from recording another profitable
trade.

Position #3: SMH Straddle – Closed Thursday at $23,00.
We bought the SMH May $22.50 puts and calls and spent $5,850 on
10 contracts. But, since we’re going to stay in this position
only for the February option cycle (5 weeks), we’ll only be
risking about $.85 ($850).   We’re looking for a big move for the
semiconductors and we don’t care which way.  The market has been
trading in a range and some volatility has come out of the
premiums.  This trade did not work out and we have lost $1,000
($1.00 x 10 contracts).

Position #4: QQQ ITM Strangle – Closed Thursday at $24.98.
This is a long-term position to generate a monthly cash flow.  We
own the January 2005 $21 LEAPS call and the January 2005 $29
LEAPS puts.  We’ve sold the February $29 calls and February $21
puts.  In this position, the QQQs have stayed in a range.  It
will make life easier when the short options expire (or you
closed them out early – see question above in column text) and we
prepare to sell a new set of short options.  There is less
premium this time around because of the flat trading over the
past month.

Position #5A: XAU Condor – Closed Thursday at $74.03.
This is a longer term trade expiring in March.  There is a $20-
point range and we took in a credit of $1.40.  We want XAU to
finish anywhere between $70 and $90.  Patience, patience and
patience.  XAU moved below $71, but it has bounced back nicely
over $74.  We’ll still keep an eye on this one.  Time is working
in our favor.

Position #6A:  MMM Condor – closed Thursday at $124.85.
This is a longer term more conservative trade expiring in March.
There is a $20-point range and we took in a credit of $1.20.  We
want MMM to finish anywhere between $115 and $135.

Position $7A:  QQQ 2-Month Baby ITM Strangle – closed Thursday at
$24.98.
Bought March QQQ $26 puts & Buy March QQQ $24 calls for total
debit of $4.20.  There is $2 of intrinsic value and only $2.20 of
risk.  We’re looking for a 3-4 point move in the QQQs.  After the
move, we want the successful long option to pay for both options.
Then we’re left with a “free” long option and waiting for the
market to reverse.  As time goes by . . . we’re ready for action.
______________________________________________________________

Happy trading! Remember the CPTI credo: May our remote batteries
and self-discipline last forever, but mierde happens. Be
prepared! In trading, as in life, it's not the cards we're dealt.
It's how we play them.

Your questions and comments are always welcome.
Mike Parnos
CPTI Instructor


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

When NOT to use S1
By John Seckinger
jseckinger@OptionInvestor.com

When a market is falling, many traders simply look for support at
the calculated pivot, Support 1 (S1), and Support 2 (S2).  This
may not be the best method to use, however.

First the disclaimers:  The MONTHLY and WEEKLY levels are given
more weight than the daily calculations, and can be used as a
stand-alone objective.  With that said, traders could simply look
for support at a weekly or monthly pivot, S1, or S2.  This
article has to do with the Daily S1 level.  There is one
retracement that has more weight than both the weekly or monthly,
and that is a retracement taken from a particular significant
relative low and high (example: low in October to high in
December).

As I have said before, trading a "zone" makes a lot more sense
than simply trading daily S1 or R1 levels; therefore, it really
pays to have a weekly, monthly, and daily retracements from R2 to
S2 on your chart before the session even begins.  See chart
below.

There are certainly a lot of retracement levels inside the
following chart, however, when one turns to a five-minute chart,
it is amazing how close some get to each other.  These "zones"
that are created allows a trader to increase confidence in
execution, as well as being able to define risk (read stop
placement) just on the other side of the zone.

Chart of Dow Jones, Daily




As the more micro chart below shows, "zones" created from all the
retracement levels above can actually be quite helpful during a
trading day.  The Dow opened above the pivot, and then soon
afterwards reversed course and sold-off.  Underneath the pivot,
would a short look to cover at S1 at 7942?  Maybe, but notice
that the zone from 7025-27 is only two-points wide; therefore, I
would expect much better support to be found there.  This "zone"
is created from a daily and weekly retracement from R2 to S2, and
this obviously is more powerful than just a simple daily S1.
Also notice that the 7902 level is a different retracement color,
which is because it is based on the move from October to December
and should have strong significance by itself.

Chart of Dow Jones, 5-minute




As the day progressed, the low ended up being slightly under 7902
(7893), while one rallied failed exactly at 7927.  Note:  R1 for
the Dow was higher at 8050 and only about four-points from the
range above.  I would personally use the range from 8054 to 8062
instead, but a trader could easily look to sell say the ES market
with the Dow at 8050 and look to cover if the Dow trades above
the 8062 level.  Of course, make sure that the ES contract is
near a significant area as well.

I am a huge believer that a trader needs to understand "zones"
and the hierarchy of stand-alone levels.  If a trader did decide
to use a "resistance zone" from 8050 to 8062, once the Dow rises
above 8050, I consider this being in a "trading zone".  Above
8062, a trader can go long with a stop under 8050; back below
8050, a trader can go short with a stop above 8062.  Since I also
believe it is important to follow Bullish Percent Charts, I know
that the Dow is in "Bear Confirmed" status and has not reversed
back into "Bull Alert" territory (since under 30%, this is
possible).  Therefore, I have a bearish bias and would rather
sell under 8050 than buy above 8062.  Traders always ask me,
"Should I sell S1 or buy S1; Sell R1 or Buy R1?"  Knowing bullish
percent charts can generally answer that question.  The only time
bullish percents will not work is when we have an obvious "Open
Drive" scenario noticed fairly early in the session.  An example
would be a large gap higher or lower in the Dow, easily taking
out the pivot as if it wasn't there.  This move usually holds
precedence.

Not shown in the chart above are the halfway points from one
long-term retracement area to another (Retracements from October
low to December high).  This can be done and added to the lines
above.  I would give them the same significance as a weekly level
(all purple color, for instance).

Let us look at the ES chart heading into Thursday's session.
Here, S1 lined up with a retracement level of 839.50 that was
compiled from the move beginning in October and ending in
December.  Therefore, the significance is solid.  Moreover, R1 on
Thursday was at 853.25 and within the "zone" from 850-854.
Conviction increased as well.  In this chart, I should have
titled the article "When not to use S2," since the 831.25 area
should not have as great of significance as the weekly pivot of
828.  It is all relative.  The retracement on the far right
beginning with 865.75 is the WEEKLY R2 to S2 retracement, and if
one of these levels lined up with the S2 level, THEN I could see
adding to its significance.  It didn't, therefore the daily S2
was simply a stand-alone level.  It cannot compare with a weekly
stand-alone level.

What about the 837 level?  Well, I like support from 839 to
839.50; however, a trader could use the range from 837 to 839.50.
I don't see the usefulness, since 839.50 is from the October to
December move and holds serious relevance on its own.  To back
test this theory, I like to subtract 5-points from the bottom of
this area (839 minus 5 is 834).  If the low in the ES was under
834 but not under 832 (837 minus 5), then I could see how a
trader going long closer to 837 makes sense.  To explain, I think
most traders use 5-point stops, and if the ES doesn't go more
than five-points under "good support," then this level is still
"good support."  If the ES went more than five-points under 839,
but not more than five-points under 837, then there is a flaw in
my aforementioned thinking.

Chart of ES03H, 30-minutes




A few more disclaimers worth noting:  When the ADX Directional
Movement Oscillator is above 20 (as it is now), I will not worry
about either MACD or stochastics on a daily chart.  During the
day, I still like MACD; however, this ADX momentum indicator is
telling a trader that it makes more sense to follow moving
averages (22, 50, and 200 exponential averages).  I agree.  The
nearest daily average (22 EMA) in the Dow is above at 8051, so
not extremely relevant at this time.  I just thought I would
throw this piece of advice in (grin).

Ask Away,

John Seckinger


***********
OPTIONS 101
***********

Gold Vehicles, Part II (Not the Chariot Type)
Buzz Lynn
buzz@OptionInvestor.com

At the incomplete conclusion of last week's gold vehicle article,
we promised a follow-up to include the purchase of gold in the
form of coins, bars, and the closet thing to gold certificates we
can own - AMEX:CEF.

However, if you are looking for the hottest issue of Doubloons, a
gold Spanish coin from the 17th century usually relegated to
buried pirates' loot, or the bottom of the ocean in old,
shipwrecks, you won't find it here.  But if you are unable to
resist the curiosity, if you've romanticized the pirate's life, or
possess the inklings of a Parrot Head (Jimmy Buffet fan), then the
following link is for you.

http://webster.directhit.com/webster/search.aspx?qry=doubloon

For the rest, including the traders and investors among us, let's
start with CEF before we get to the actual metal.  I can't tell
you how many times up until a few months ago that I wondered how
to actually get the metal into my IRA.  While there are companies
- actually trustees - out there that provide this service for a
handsome fee, most of us won't want to afford it.  Strike one.

So what is the solution?  The trick would be to find a currency
backed by gold, but there isn't one on the face of the Earth today
that I'm aware of.  Strike two.

The next best thing then would be to own an interest in a reserve
of precious metals.  That comes in the form of a certificate - a
sort of "gold certificate" - that is actually a share of stock in
a publicly traded company designed for the purpose of holding gold
in a vault for the benefit of its investors.  While the stock
certificate isn't spendable cash, it can be bought, sold, and held
in a brokerage account, including an IRA!  That stock is traded on
the AMEX under the symbol, CEF, which stands for Central Fund of
Canada.  It was formed in 1961 in Calgary, Canada, and is still
run by its founders.

Straight from Yahoo! Finance: "Central Fund of Canada Limited is a
specialized investment holding company whose investment objective
is to hold the vast majority of its net assets in gold and silver
bullions, primarily in bar form. Its policy is to invest primarily
in long-term holdings of gold and silver bullion and not to
actively speculate with regard to short-term changes in gold and
silver prices. Central Fund's investment policies require it to
hold at least 90% of its net assets in gold and silver bullions,
primarily in bar form. On a physical basis, 50 ounces of silver
are held for each ounce of gold held."

For the truly, and, in my opinion, unduly paranoid, this may not
be sufficient since while the holdings are insured against theft,
loss, or destruction, there is also a standard war risk exclusion.
Translation: holdings are safe from financial loss unless
vaporized in an act of war.  But I think it's pretty safe.

Disclosure: I own some.

But since I'm building an ark, gold coins are really the bulk of
my investment in gold.

By the way, when I've referred to "gold" in either this or my
previous article, I am also tacitly inviting silver along for the
ride.  I like silver too, as it is also a store of value, like
gold.  However, it is also an industrial metal and can fluctuate
in price more like a commodity in the cost of production than a
precious metal.  So if industry one day finds a cheaper substitute
for silver in the normal course of producing widgets, then supply
and demand would suggest that silver prices would fall while gold
could be in a speculative frenzy.  Silver does not necessarily
track in the same financial footsteps as gold.  However, they will
likely remain closely related, so you can apply the same trading
or investment techniques to silver as you would to gold.

Except for the Hunt Brothers in the late 1970's when they tried to
corner the silver market, nobody ever went broke having a bit of
silver in the portfolio in addition to gold.  Silver is readily
available in coin form too at your local coin dealer and can be
had in the simple form of pre-1964 U.S quarters.  Yes, quarters
used to be silver and dealers keep a bunch around for people like
us who may not want or be able to afford gold.

OK, back to gold coins.  There are many to choose from, but the
most common in the U.S. are U.S. Gold Eagles, Canadian Maple
Leafs, or South African Krugerrands (most of which come in various
denominations of 1, 1/2, 1/4th, 1/10th, or 1/20th of a troy ounce.

Why coins in the first place rather than the bars commonly seen in
gangster movies?  Simple - bars are not as liquid.  They need to
be assayed, which is a fancy word for weighed and assessed, to
insure that the bars are, in fact, real, and not a freshly minted
piece of lead with gold spray paint.  Anyone trading or investing
in gold has to be sure that they are getting what they pay for,
and with bars, that is harder to ascertain without having a
certified professional look at them first.  It adds an extra step,
causes undue extra time, and thus makes the bars less liquid and
harder to trade.  I stay away from these, as do most investors and
traders.  But bars are available in size if you should want them.

My personal favorite though is the Krugerrand, which I like better
than the U.S. or Canadian coins.  Keep in mind that these coins -
the Eagle, Maple Leaf and Krugerrand - all have a different total
weight.  However, their common characteristic is that they all
possess a troy ounce of gold.  That never varies, except in the
obvious case of a smaller denomination of any of the above.  They
all contain the same ounce of gold despite their slight size
difference.  My interest is in buying the cheapest ounce of gold
available while still maintaining liquidity among dealers, and
"spendability" should the Dollar vaporize overnight.  That
distinction belongs to the Krugerrand.

That's not to say that Maple Leafs and Eagles are a bad deal.
Frankly, both are a better-looking coin than the Krugerrand and
are, at the margin, minutely more liquid (not a concern of mine
since, if the worst happens, they'll all be equally spendable with
an equal ounce of gold).  And therein lies the reason they cost
slightly more than the Krugerrand.  So if beauty counts as a part
of your investment strategy, by all means, go for the Eagles or
Maple Leafs.

How much of a premium do these command?  Hard to say for sure, as
each dealer is different.  But within reason, we'll probably end
up paying 1%-2% more for those over the Krugerrand.  With that in
mind, let's stick to Krugerrands for the buying process.

First we have to find a dealer.  This is harder than it seems.  A
dealer is just like a market maker.  Some are better than others.
Some do more volume than others.  All of them live and die by the
spread between bid and ask.  Most coin prices fluctuate around the
spot market price of gold.  Find this at www.kitco.com, along with
everything else you wanted to know about currency and gold.  Just
like a stock, there is going to be a bid and ask price that
fluctuates closely with the spot price.  Say that the spot price
is $350 per ounce.  A coin dealer may be willing to buy our
Krugerrands at spot prices or slightly lower, say at $345 per
ounce.  However, if we wish to buy Krugerrands, our charge may be
$360.

The point is that we are going to be looking at two things in
tandem when we buy or sell.  We want as narrow a spread as
possible and we want to buy at the least price possible or sell at
the greatest price possible.  The narrower the spread, the better
the deal for us in either the buying or selling case.  For that
reason, we will want to shop around.

What makes a good dealer?  I don't have a definitive answer.  But
I know what makes a hazardous dealer!  Personally, I won't buy
coins on e-Bay though I trust it for about anything else - too
easy for the seller to take my money and run.  It isn't practical
to chase down a criminal half way across the country, or worse, in
another continent if we don't ultimately get what we pay for.

The second issue is that even if we find a reputable dealer on the
Internet, we are going to incur shipping and insurance costs if we
are not able to take physical delivery from the purchaser, which
adds significantly to the total price.  If we find a $10 spread
from a dealer on the Net, and a $12 spread at the neighborhood
coin dealer, adding shipping costs of roughly $5 per coin will
make the neighborhood store the better deal.

For both of the above reasons, I shop for the best deal in my own
hometown, or at a location in which I will cheerfully drive if
they have the deal.  I will not have coins shipped or buy them
sight unseen - ever.  Just prudent business practice, I think.

So what constitutes a reasonable price?  I buy my Krugerrands from
one store because he always seems to have the tightest spread.  In
the $350 spot price example, he may be buying at $348 and selling
at $359.  $11 is pretty tight.  Probably we would see elsewhere at
that moment a bid of $340 and ask of $360 - $20 spread.  Sometimes
even more.  Again, we look for the tightest spread by calling
around our own locality.

Keep in mind that sometimes great deals can be had on accident by
swerving into a busy dealer who has just bought say, $100,000
worth of coins from a seller.  The seller likely had to come down
on his price in order to induce the dealer to come up with that
huge amount of cash.  The dealer may have made a great deal.  But
he's also carrying big inventory that he may want to move quickly
in order to get back to cash again.  In such an instance, he may
drop his ask to within a Dollar or two of bid, effectively giving
us the opportunity to buy at the spot price and make a great deal
for ourselves.  Lucky, yes, but it happens.  And if we develop a
relationship with a dealer who knows our objectives (and knows we
have a stash of cash, in the case of the big buyer), just like a
floor trader of stock, we'll get that phone call from him offering
us "the deal" two minutes after he's made his big score.  He buys
in bulk at $345, and we buy his bulk at $347 - less than spot - as
long as we've got that relationship.

Anyway, once we decide where to buy, we take cash in our pocket,
briefcase, whatever and "do the deal".  Sounds clandestine, but
it's the most effective way to transact business.  Yes, checks and
credit cards will work, but make prior arrangements, as failure to
do so may cost us more on the purchase.

There, now we all know the basics and can simply go buy the stuff
or buy shares of ownership interest in a reserve.  We can take our
pick or do both.

I must admit, I had fun doing this series on gold, but there's a
lot more to it than what I've written here.  Questions on
specifics are always welcome and I will do my best to answer them
completely.  With enough interest, I'll be glad to do another
article.

Until next time, make a great weekend for yourselves!

Buzz


------------------------------------------------------------
We got trailing stops!
  Trade online with trailing stops at optionsXpress, at no extra cost
  Trailing stops based on the option price or the stock price
  Also place Contingent, Stop Loss, and "One Cancels Other" orders
  $1.50 /contract (10+ contracts) or $14.95 Minimum--NO Hidden Fees!

Go to http://www.optionsxpress.com/marketing.asp?source=oetics23

Note: Options involve risk. Risk disclosure:
http://www.optionsxpress.com/welcome_risk_index.htm
------------------------------------------------------------


**********
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

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

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

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

Option Investor Inc
PO Box 630350
Littleton, CO 80163

E-Mail Format Newsletter Archives