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Daily Newsletter, Tuesday, 06/26/2001

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PremierInvestor.net Newsletter                 Tuesday 06-26-2001
                                                   section 1 of 2
Copyright  2001, All rights reserved.
Redistribution in any form is strictly prohibited.

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In section one:

Market Wrap: Bond Market Is A Bear's Biggest Worry 
Market Sentiment: Proceed With Caution 
Play-of-the-Day: F5 Networks FFIV 
Watch List: Software Is One Of Our Fav Groups plus a bio and chip

-----------------------------------------------------------------
U.S. Market Numbers
-----------------------------------------------------------------
MARKET WRAP  (view in courier font for table alignment)
-----------------------------------------------------------------
        06-26-2001        High      Low     Volume Advance/Decline
DJIA    10473.28 - 31.74 10534.21 10394.72 1.19 bln   1780/1294
NASDAQ   2064.43 + 13.75  2068.15  2017.34 1.65 bln   2043/1697
S&P 100   629.44 -  2.49   632.03   623.85   totals   3823/2991
S&P 500  1216.68 -  1.84  1220.70  1204.64             
RUS 2000  490.56 +  6.63   490.82   482.19 
DJ TRANS 2645.05 -  2.82  2663.74  2606.26 
VIX        23.35 +   .10    24.50    23.33 
Put/Call Ratio      0.66
-----------------------------------------------------------------

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

Bond Market Is A Bear's Biggest Worry  -- Jeff Bailey

If you're an equity bull, you like what you saw today from the 
bond market.  The last couple of weeks, we've seen bond yields (I 
stress YIELD) fall as many market participants fled to the safety 
of treasury bonds.  The buying of bonds drives YIELD lower and 
that's what we've seen the past couple of weeks.  

Many traders believe that the market is a forward-looking 
creature and often times have discounted current events.  If 
that's true, then the continuing flow of earnings warnings and 
disappointments is of little use to a bearish trader.  What a 
bearish trader is monitoring at this point is bond YIELDS.  While 
it would seem that market bears have little to worry about with 
all the bad news that keeps coming in the form of poor corporate 
earnings, a market bear is watching bond YIELDS as if they were a 
porcupine.  While a bear may view a porcupine as food, a bear 
also knows a porcupine can inflict wounds if approached from the 
wrong angle.

Many investors/traders have been pushed into mutual funds or has 
moved to cash in recent months and the bearish trader probably 
doesn't feel like he/she has much competition right now from new 
money pouring into the market.  What a bearish trader is 
monitoring is the hundreds of millions of dollars sitting in 
treasury bonds that is drawing anywhere from 4.5% to 5.6% 
interest per year from the 5-year Treasury bond ($FVX.X) all the 
way out to the 30-year Treasury bond ($TYX.X).  What took place 
today and the selling we saw in bonds has to have the bears 
getting a little nervous once again.  I'm a firm believer that 
earnings can help a stock trade higher, but the real cause for a 
stock moving higher is more buyers than sellers, thus the effect 
of a higher stock price.

This morning, bond YIELDS were lower and this indicated that 
buyers were back in the bond market.  With that said, stocks 
opened lower and looked like they were headed south.  All of a 
sudden, sellers stepped into the bond market and YIELDS on the 
three major maturities listed above started to rise (selling in 
bonds causes YIELD to rise).  Not long after YIELDS turned green 
and got positive for the session, we started to see stocks firm.  
At one point, the Dow Industrials ($INDU) were bouncing around 
the 10,400 level, but as the session progressed, the selling 
continued in the bond market and stock firmed further.  By 
sessions end, the Dow Industrials closed at 10,472 and actually 
traded as high as 10,534.

I'm sure that tomorrow's Fed meeting and long awaited news on 
interest rates had something to do with today's action.  What an 
equity bulls want to see continue from here on out is the same 
type of action.  I'd pay more attention to the bond market on the 
grand scheme of things than the stock market.  By this I mean 
that the bond market action will have a more longer-lasting 
effect on things than what stocks actually do on a day-to-day 
basis.  Too often we've seen a nice rally in stocks fail only 
because money flows back into bonds (driving yield lower).  
Equity bears know this all too well and until we see the 
"releasing of the grip" on the safety and security of bonds on a 
longer-term basis, equity bulls are going to be faced with a 
sideways stock market made up of minor rallies and pullbacks like 
we've seen lately.

While the longer-term always starts with the short-term, 
yesterday's action in the bond market may give hint that there 
are some good day's ahead for stocks in the near future.  I'll be 
watching bond YIELDS closely tomorrow.  Should we see a follow 
through day and continued selling in bonds, then I think that 
will bode well for stocks.  I do think it is somewhat foolish to 
start thinking that a simple rate cut by the Fed tomorrow is 
going to scare bearish traders away.  What will have bears 
scampering down the trail and into the woods is higher bond 
yields.  Much like the south end of a northbound porcupine.


================
Market Sentiment
================

Proceed With Caution -- Jeff Canavan

cautious \Cau"tious\, Attentive to examine probable effects and 
consequences of acts with a view to avoid danger or misfortune; 
prudent; circumspect; wary; watchful; as, a cautious general.

That's the word Goldman Sachs used to describe their stance on 
technology stocks.  They see continued weakness, noted some 
evidence that suggests we could be near a bottom, and then added 
that when the recovery does happen, it will be more moderate.  
Quite the revelation.

discriminating \d-skrm-ntng\, Able to recognize or draw fine 
distinctions; perceptive; showing careful judgment or fine taste; 
separating into distinct parts or components; analytical.

Cautious is a good way to approach the markets these days, but a 
discriminating palate is needed for selecting stocks. There are a 
few good long candidates, a few good short candidates, and a lot 
stuck in the middle.  With the market lacking direction, it's too 
close to call what Greenspan's...I mean the market's sentiment is. 


Market Volatility
VIX   23.25
VXN   54.01

Put/Call Ratio
Total            .66
Equity Only      .58
OEX              .85
QQQ              .37

Bullish Percent Data: Readings above 70 are considered 
overbought, and readings below 30 are considered oversold

NYSE          48
NASDAQ-100    34
DOW           58
S&P 500       54

10-Day Arms Index  1.33  
Readings above 1.25 are bullish, and readings below .85 are bearish. 
These signals don't occur often and tend be early, but when the 
do, they can signal significant market turning points.

        Advancers     Decliners
NYSE      1780           1290
NASDAQ    2038           1700

        New Highs      New Lows
NYSE       113            47
NASDAQ     111            88

Advisory Sentiment   Bullish   Bearish
                       51%      30.6%


Commitments Of Traders Report: 06/19/01
Weekly COT report discloses positions held by small specs
and commercial traders of index futures contracts at the 
Chicago Mercantile Exchange. 

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   Long      Short      Net     %Change  Open Interest
6/05/01      323,109   400,509   (77,490)    13.1%     510,122
6/12/01      353,074   423,257   (70,183)    (9.4%)    562,025
6/19/01      301,376   371,121   (69,745)    (0.6%)    457,618

Most bearish reading of the year: (111,956) - 3/6/01
Most bullish reading of the year: (41,144)  - 5/1/01

Small Traders   Long      Short      Net      %Change
6/05/01        154,233    76,632    77,601      10.5%
6/12/01        167,720   100,610    67,110     (13.5%)
6/19/01        128,296    56,038    77,258      (7.7%)

Most bearish reading of the year:  36,513 - 5/01/01
Most bullish reading of the year:  91,122 - 3/06/01
 
NASDAQ-100
Commercials   Long      Short      Net     %Change  Open Interest
6/05/01       25,098    36,433    (11,335)   (1.5%)    51,660
6/12/01       33,586    44,234    (10,648)   (6.1%)    68,245
6/19/01       23,480    34,097    (10,617)   (0.3%)    47,202

Most bearish reading of the year: (15,521) - 3/13/01
Most bullish reading of the year:  (1,825) - 1/02/01

Small Traders  Long      Short      Net      %Change
6/05/01        11,217    10,062    1,155     (60.3%)
6/12/01        18,374    16,264    2,110      82.7%
6/19/01        14,284     8,403    5,881     178.7%

Most bearish reading of the year:  (1,028) - 1/02/01
Most bullish reading of the year:   8,460  - 3/13/01


DOW JONES INDUSTRIAL
Commercials   Long      Short      Net     %Change  Open Interest
6/05/01       22,717    16,888    5,829      0.3%      35,257
6/12/01       24,724    18,485    6,239      7.0%      37,886
6/19/01       12,346    10,470    1,876    (69.9%)     22,611

Most bearish reading of the year: (8,322) - 1/16/01
Most bullish reading of the year:  8,925  - 5/22/01

Small Traders  Long      Short      Net      %Change
6/05/01        3,881     8,132    (4,251)      0.6%
6/12/01        5,332     9,637    (4,305)      1.3%
6/19/01        3,844     7,555    (3,711)    (13.8%)

Most bearish reading of the year:  (7,572) - 5/08/01
Most bullish reading of the year:   1,909  - 1/16/01


===============
Play-of-the-Day
===============

F5 Networks FFIV $17.04 +1.55 Stop: $16.25

Original comments when selected: 

Get a head nod from mother Merrill and good things happen to your 
stock. This is exactly what happened for shares of FFIV this past 
week, as the brokerage behemoth initiated coverage of the Seattle, 
WA based firm with a Buy rating and $22.00 price target. Merrill 
noted in its research report that " FFIV is the comeback kid and 
its technology is starting to see broader adoption by enterprise 
customers." That's the kind on endorsement you want from a firm 
with 15,000 brokers pushing stock. As for the fundamentals, on 4/19 
FFIV said it had a loss in the second quarter ended March 31 of 19 
cents a share. Expectations by analysts polled by Thompson / First 
Call Financial were for the company to lose 22 cents in the period. 
FFIV is refocusing on their channel partners, increasing their OEM 
business and has won major contracts at new and existing corporate 
accounts. The action plan has obviously worked, as revenues rose 10 
percent sequentially, helping best consensus handily. Looking at the 
chart, things are certainly looking up. The close Friday at $15.01 
represents the highest settlement since February 2, 2001, and is 
only $1.99 below the yearly high close for shares. Furthermore, 
FFIV finished a mere 9 cents off of the day's high print, and 
volume (781K) was well above the 30-day average trend (462K). 
Moreover, a bullish crossover of the 10 & 21 dma's ($12.52, $12.44)
 occurred, giving us even more reason to get long the stock. Sure, 
the networking sector is in the gutter, but the relative strength 
from selected players in the group is significant, and while we 
may have to take some heat near term, a 13% pop to at least $17.00 
looks to be in the cards. The 200-dma ($18.83) looms overhead, and 
will likely be a difficult obstacle for shares of surpass. However, 
we would gladly settle for something just below this mark, and 
believe its reasonable to assume it will happen. Stochastic 
readings are planted firmly in the accumulation range, showing a 
96(%k) as of the close Friday. Certainly, adding this type of 
stock as a long when the NDX set the lowest close since 4/24 takes 
some guts. With the Fed meeting on the horizon, now is the time to 
step up the plate.

Update from original comments:

F5 took off like an F-14 Tuesday, trading as high as $17.06 
intraday, and inching ever closer to surpassing critical 
resistance at the 200-dma. ($17.51) From our entry at $15.01, we 
sit pretty with a gain of $2.03 or 13.5% as of today's close. Other 
than the announcement of the company reporting earnings on 7/25, 
we could find no reason for the nice bump higher today. The 
settlement north of $16.69 means this one is off to the races. A 
move above $17.81 would produce a share price not seen since 
December 18th, when the shares were in the teeth of the tech slide. 
Our stop moves to $16.25.

Picked on June 17th at $15.01
Gain since picked:       2.03
Earnings Date            7/19 (Not Confirmed)





==========
Watch List
==========

CHKP – Check Point Software, Inc. $51.37 +2.84
  
WHY WE LIKE IT: Not only is Check Point in one of our favorite 
groups right now, it also has a very attractive chart to boot. 
After putting in a double bottom near the $42.50 level, shares 
are again on the rebound, poised to put the $50.00 well behind 
them. Even with the stock getting a downgrade yesterday, the 
forward momentum has continued, with the 21-dma ($48.88) taken 
out in today's session.

POTENTIAL TRIGGER EVENT: This one is easy: A close above the 
$51.50 mark and this stock will be on the play list. The relative 
strength is just too strong to ignore. With nothing but clear 
sailing from $51.50 to the 50-dma at $57.46, this occurrence 
should be good for an easy 10%.




===

BORL – Borland Software, Inc. $14.10 +0.78  

WHY WE LIKE IT: Our focus continues to be in software, and with 
the huge interest building in the group, why not? This morning's 
comments from Bear Steans & Co., in which the company called BORL 
is an inexpensive play on enterprise Java and adoption of next 
generation distributed application architectures, should 
certainly help attract attention to the stock.

POTENTIAL TRIGGER EVENT:  We'd like to see BORL pull back and 
bounce off of the $12.50 level, although this seems unlikely with 
the momentum in the sector. As such, a surge and settlement above 
the $14.50 mark would also entice us to add shares as a new long 
position, as volume in the stock looks to be on the rise.




===

QLGC – Qlogic, Inc. $57.74 +2.79  

WHY WE LIKE IT: Recent selling in the storage group has certainly 
taken its share of market cap away from names such as EMC, BRCD 
and QLGC. Compared to some of the other stocks in the sector, 
however, QLGC has fared much better. After closing below the 
crucial 50-dma at $47.29 on 6/19, shares are back on the rise, 
although the gains have been on declining volume.

POTENTIAL TRIGGER EVENT: A finish north of $58.31, the closing 
price from 6/12, might trigger our interest enough to add QLGC as 
a new play. We would want to see volume north of the 30-day 
average though, which would constitute at least 6.7 million 
shares crossing the tape. Ideally, a settlement above $60.00 
would offer better risk characteristics in a long position.




===

GENE – Genome Therapeutics, Inc. $13.45 +0.34

WHY WE LIKE IT:  An upgrade from Ladenburg Thalmann back on 5/23 
appears to have run its course, with most of the weak hands being 
shook loose in the recent decline from $17.00. The stock comes to 
our attention as a bullish crossover of the 50 & 200 dma's 
($10.52, $13.44) appears eminent. Shares of the biotech concern 
have also formed a bullish pennant on the daily chart, two strong 
technical signals that definitely need to be monitored.

POTENTIAL TRIGGER EVENT: A break and close back above the $14.00 
mark on participation of at least 1.2 million shares would 
satisfy the bullish pennant formation, allowing for a break 
towards, and likely above recent highs near $17.00. A settlement 
by the BTK.X back over the 200-dma or 605 level might also be 
worthy to give GENE a shot.





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Do not duplicate or redistribute in any form.


PremierInvestor.net Newsletter                 Tuesday 06-26-2001
                                                   Section 2 of 2
Copyright  2001, All rights reserved.
Redistribution in any form is strictly prohibited.

The entire newsletter is best viewed in COURIER 10 for alignment
=================================================================
To view this email newsletter in HTML format with imbedded
charts and graphs, click here:
http://www.PremierInvestor.net/htmlemail/8888_2.asp
=================================================================

In section two:

Split Trader
  Split Announcements:
  New Plays: Biomet, Inc. BMET (Bullish)
  Play Updates: One Slightly Good, One Slightly Bad
  Closed Play: Closed Lowe In Black

NetBulls
  New Plays: Qualcomm QCOM (Bearish)
  Play Updates: Indecision Over Fed Puts Indecision in Charts

Stock Bottom / Active Trader
  New Plays: No new stock bottom plays
  Play Updates: Hovering Near Resistance and Support  
  Closed Plays: ELN, WMI


=================================================================
Split Trader (ST) section
==================================================================

============
ST New Plays
============

  -------------------------
  New Split Candidate Plays
  -------------------------

Biomet, Inc. BMET $48.79 +1.65 Stop: $46.50

The Warsaw, Indiana-based company makes orthopedic medical 
devices, including reconstructive products (hips, knees, and 
shoulders), fixation devices (bone screws, pins, and plates), 
and supports and braces; such products account for about 
60-percent of sales. The company also makes operating room supplies 
and through its 3i subsidiary dental reconstructive implants. 
Subsidiary EBI markets electrical stimulation and external 
fixation devices, which are used to speed the healing of broken 
bones. Another subsidiary, Walter Lorenz Surgical, sells 
craniofacial implants and bone substitute material for 
craniomaxillofacial surgery. US accounts for some 70-percent of 
Biomet's product sales; Europe accounts for another 25-percent

At its fiscal fourth-quarter 2001 earnings announcement schedule 
for 2:00pm EST on Monday, July 9th, analysts are expecting the 
company to announce positive results.  The consensus estimate is 
for the firm to report quarterly profits of 33-cents per share on 
revenue of $284 million.  For the year, this would bring the 
company to earnings of $1.34 per share on sales of $1 billion.  
Next year, analysts expect the firm to earn $1.37 per share on 
sales of $1.2 billion.  These results would give the company a 
P/E of 40.7.  

BMET shares have been on a roll after hitting $35.50 on April 4th. 
Tuesday's move through support at $48 on solid volume of 
1.6 million shares suggest the shares are ready for the next leg 
up.  The session high of $48.94 came within a penny of the 52-week 
high set June 20th.  Although the shares clearly are carrying a 
lot of bullish momentum, conservative traders can wait for 
additional confirmation of this momentum through a close above 
$48.95 on solid volume.  Support from a bear attack is at $46.50.

Picked on June 25th at $48.79
Earnings Date            7/09 (Confirmed)





===============
ST Play Updates
===============

  -----------------------
  Split Candidate Updates
  -----------------------

ADVP - Advance PCS, Inc. $62.05 +0.57  s/l $58.95

Since adding ADVP on Friday last week, things have not yet panned 
out like we had hoped. Thus far, we are down only $0.75 however. 
We had thought momentum buyers would follow the firm's 
announcement of an agreement to provide pharmacy benefit 
management services to Chicago-based Health Care Service Corp. 
Volume was light in the $1.34 decline Monday, and this gives us 
some solace. Support is with the 50-dma at $60.65 and then with 
the 10-dma at $59.82.

Next Earnings: 8/28/01



===

ESI - ITT Educational Serv., Inc. $44.40 +0.30  s/l $41.50

Shares of ESI finally caught a bid on Monday, tacking on $1.75 on 
volume that was more than 78% higher than normal. We found no 
news to spur the buying binge, but we like what we see on the 
chart. The push higher fulfills the bullish pennant we have been 
discussing with ESI, and now that the pattern has been satisfied, 
ESI should be clear for higher ground. Support remains firm with 
the 21-dma at $41.32.

Next Earnings: 7/19/01




===============
ST Closed Plays
===============

  ----------------------
  Closed Split Run Plays
  ----------------------

LOW - Lowes Corporation  $75.80 +0.30 s/l $76.00

After setting a fresh 52-week high last Thursday, Lowes has 
pulled in its horns a bit, and just enough to hit our stop loss 
at $76.00 Monday. With the stock set to split next week on 6/29, 
we would have had to exit soon anyway. We leave all smiles, 
however, snagging $2.00 or 2.7% for subscribers in the 12 trading 
days we played the stock.

Picked on June 7th    @  $74.00
CLOSED OUT @             $76.00

==================================================================
Net Bulls (NB) section
==================================================================

============
NB New Plays
============

  ---------------
  New Short Plays
  ---------------

Qualcomm QCOM $53.45 -0.90 Stop: $55.50

Qualcomm created the code-division multiple access (CDMA) 
standard for wireless networks.  CDMA-based networks account for 
12-percent of the worlds' mobile subscribers.  Qualcomm collects 
royalties for CDMA use and makes CDMA-based products such as 
chipsets and software.   Although, the US is a Qualcomm stronghold, 
it is working hard to expand in Asia, in particular China, off of 
its dominance in South Korea.  This effort got a big boost recently 
when China Unicom, China's second largest wireless operator, 
awarded $1.46 billion in contracts for equipment to build a cdma-
based network.  The Chinese adoption of cdma is seen as crucial 
for Qualcomm, because as it is also critical for the adoption of 
cdma throughout Asia.  Unfortunately, on the heels of the good 
news was an announcement that Verizon Wireless was switching from 
cdma to a rival technology based on wCDMA.  Rumors of this set 
QCOM shares on a dive from the June 6th close of $65.00 to $48.45 
on June 20th.    

Analysts project the company, which earned $1.05 in the fiscal 
year ended September 2000, will earn $1.04 in 2001 and $1.33 in 
2002.  This gives the company a forward P/E of 51.  

Although the shares had recovered somewhat from their recent slide 
to reach a high of $55.29 on Monday, it appears the bullish move 
was short-lived.  An earnings warning from chipmaker Applied Micro 
Circuits  (AMCC) already short-circuited the bullish rally, but 
further warnings  late-Tuesday from chipmakers Vitesse (VTSS) and 
Xilinx (XLNX) should ensure the stuffing is knocked out of any 
remaining bullish momentum.  Weak support to halt the bearish 
slide should be encountered at $51.00. More significant support 
should be found at $48.00.  Resistance to a bullish resurgence is 
at the recent $55.29 high.  Conservative traders can look for a 
close below $53.45 on volume greater than 10.5 million shares 
for further confirmation of bearish sentiment.  

Picked on June 26th at $53.45
Earnings Date            7/26 (Not Confirmed)





===============
NB Play Updates
===============

  -----------------------
  NB Bullish Play Updates
  -----------------------

Yahoo! Inc. YHOO $19.14 -0.63 Stop: $17.25

Yahoo shares backed off of resistance on better than average 
volume of 10.5 million shares.  When we made this play a Bullish 
selection we suggested conservative traders wait for a 
confirmation of bullish momentum via a move above $21 on solid 
volume.  We are still waiting for that move.  Fortunately all was 
not bearish on Tuesday, the shares seesawed for much of the day 
before a final bullish swing into the close.  Much will be decided 
in the market reaction to whatever moves the Fed makes on 
Wednesday.  A positive reaction may be sufficient to give Yahoo 
shares a push through resistance at $20 to $20.50, while a 
negative reaction and close below $19.14 may signal the bears 
have taken control.  Support in the event of a bearish reversal 
exists at $17.50.

Picked on June 25th at $19.77
Gain since picked        0.63
Earnings Date            7/11 (Not Confirmed)
 



===

Applied Materials AMAT $50.21 +0.34 Stop: $47.88

Our Bullish play has been performing well with a $1.16 gain since 
its selection last Thursday.  The chart pattern and technical 
indicators look solid including volume at 19 million shares traded. 
The only cloud on the horizon was Tuesday's after-the-bell warning 
from chipmakers Xilinx (XLNX) and Vitesse (VTSS).  AMAT shares were 
able to shake off Monday's warning from AMCC to put in a positive 
day, but it remains to be seen if they can do this two days in a row. 
The after-hours market had AMAT shares down only slightly; a similar 
reaction during regular trading on Wednesday may be a longer-term 
bullish sign.  Just in case we are going to tighten our stop 
to $47.88.

Picked on June 22nd at $49.05
Gain since picked        1.16
Earnings Date            8/14 (Not Confirmed)





  -----------------------
  NB Bearish Play Updates
  -----------------------

Computer Sciences Corporation CSC $34.50 -0.20 Stop: $36.00

CSC shares have moved into congestion.  This means bullish and 
bearish sentiments are evenly matched and the shares are moving 
sideways in a tight trading range until one side prevails.  
Assuming some form of news does not appear to change investor 
perceptions, most often the sentiment in control immediately prior 
to the congestion regains control.  For CSC shares, the bears were 
in firm control, so the odds favor a resumption of the slide.  As 
usual volume will be the key as it normally drops as the congestion 
continues and spikes when the shares have selected a direction.  
CSC shares are following the traditional pattern as volume has 
dropped three days in a row since entering congestion from 
Friday's 2.76 million to Tuesday's 1.5 million.  The daily average 
is 1.4 million.  A close above $35.25 on high volume would be a 
sign the bulls are taking control, a close below $33.15 on a 
volume spike would signify bearish sentiment is rising. 

Picked on June 21st at $35.00
Gain since picked:       0.50
Earnings Date            N/A (Not Confirmed)




===

Getty Images, Inc. GETY $24.76 -0.13 Stop: $27.00 

After Monday's sharp decline, bargain hunters and seller fought 
to a near standoff on Tuesday.  The sellers were in control in 
the opening minutes driving the shares down to $23.75 before 
bargain hunters were able to bring the shares back to almost 
breakeven for the day.  Closing momentum slightly favored the 
bears.  Volume was solid 439k shares traded, although lower than 
the 498k daily average.  The chart shows a doji candlestick 
pattern formed on Tuesday indicating indecision on the part of 
investors.  Looking forward, a close above $25.00 on good volume 
would suggest the bulls are winning the tug-of-war, while a close 
below $24.75 on a spike in volume would favor the bears.  The next 
levels of support remain at $23.00 and $20.00.  Resistance to 
a bull run is at $26.45.      

Picked on June 25th at $24.89
Gain since picked        0.13
Earnings Date            N/A (Not Confirmed)
 




==================================================================
Stock Bottom / Active Trader (AT) section
==================================================================

===============
AT Play Updates
===============

  -----------------
  Long Play Updates
  -----------------

BEAS - BEAS Systems, Inc. $31.40 +0.37  s/l $25.00

Our trade in BEAS, while not significantly higher than when we 
picked it, still looks strong. Shares of the asp software 
provider are holding steady near the $30.00 level, and this shows 
steadfast support and excellent relative strength in comparison 
to the balance of the tech sector. Should the FED give the market 
what it wants (50 Bps), look for BEAS to trade $32.50 by the end 
of the week. Firm support remains near $28.00.

Next Earnings: 8/14/01




===

CTXS - Citrix Systems, Inc. $31.98 +0.16  s/l $26.50

One could search high and low and still not find a chart that 
displays as much strength as CTXS's. Since adding the stock back 
on 6/20, are up a tidy $1.84 or 6.1%. However, we don't think 
CTXS is done yet. We wouldn't even considering selling the stock 
until our objective at $37.50 is achieved. Higher highs have been 
achieved every day but one since we played the stock, and 
interest in the group is healthy. This stock is primed for an 
explosive upside move.

Next Earnings: 7/18/01




===

FFIV - F5 Networks, Inc. $17.04 +1.55  s/l $12.75

F5 took off like an F-14 Tuesday, trading as high as $17.06 
intraday, and inching ever closer to surpassing critical 
resistance at the 200-dma. ($17.51) From our entry at $15.01, we 
sit pretty with a gain of $2.03 or 13.5% as of today's close. 
Other than the announcement of the company reporting earnings on 
7/25, we could find no reason for the nice bump higher today. The 
settlement north of $16.69 means this one is off to the races. 
Our stop moves to $16.25.

Next Earnings: 7/25/01




===

ISRG - Intuitive Surgical, Inc. $11.25 +0.65  s/l $10.00

When we added ISRG back on 6/17, we had expected some near term 
weakness due to the huge run up that occurred just before playing  
the stock. We tightened up our stop just in case the selling 
continued, but this has not been the case. While we are only up 
$0.20 from our entry, we still feel strong about the near term 
potential for shares. Now that the euphoria from the FDA 
approving the company's da Vinci system for radical prostatectomy 
is over, fundamental traders should start to focus on earnings, 
which will undoubtedly follow suit considering the very positive 
momentum with ISRG. Our stop loss remains at $10.00.

Next Earnings: 7/24/01




===

MEDI - Medimmune, Inc. $45.75 +1.56  s/l $40.00

Short term traders have stepped into MEDI and sold the stock 
since when we added shares as a long position on 6/21. However, 
the 10-dma has held as firm support, with shares bouncing firmly 
off this level both Monday and Tuesday. MEDI still has the pesky 
200-dma at $48.16 to deal with, a level the stock has not been 
above since 11/27/00. With institutional interest high in the 
company, this is one long position you should put away and forget 
about. The up trend is firmly in place and unless some disastrous 
news hits the company, higher prices should follow.

Next Earnings: 7/25/01




===

RATL - Rational Software, Inc. $27.54 +0.40  s/l $24.50

We added RATL just last evening, and so far are up $0.40. The 
prospects are high for software stocks to continue garnering more 
and more attention with every semiconductor earnings warning, and 
RATL's chart certainly has the characteristics that could drive 
the price for a share of stock higher. Our single concern remains 
the fact prices have been increasing while volume is decreasing, 
but with the FOMC slated to cut rates tomorrow, it could be of 
little consequence. We leave our stop loss at $24.50.

Next Earnings: 7/11/01




===

THC - Tenet Healthcare, Inc. $50.20 -0.20  s/l $49.75

THC came precariously close to our stop loss Tuesday, trading 
within a nickel of $49.75. We are a little concerned with the 
breaching of the 10-dma ($50.74), as this is the first time 
shares of THC have been below this support point on a closing 
basis since 5/23. The recent sell off leaves us with a loss of 
$0.89 on the trade. Should Alan and the boys not give the market 
what it wants, THC could quickly return to favor. Hey, maybe 
earnings do matter after all.

Next Earnings: 7/25/01




===

TJX - TJX Companies, Inc. $32.65 -0.62  s/l $31.00

Retailer TJX is again nearing support near of 50-dma ($32.74), 
although we believe the test will be successful again, 
considering the impact lower rates should have on the sector in 
the last quarter of 2001. TJX recently reported that June same 
store sales were up 8% over the same period last year, though YTD 
sales were reported to be flat. As consumer sentiment continues 
to improve, retailers should be the primary beneficiary, and thus 
shares prices might continue to improve.

Next Earnings: 8/14/01




===

VPHM - Viropharma, Inc. $29.79 -0.21  s/l $27.00

In the classic reversal pattern, shares of VPHM have bounced 
nicely off of the key 200-dma ($24.84) and pushed towards higher 
levels. Since our entry at $29.94 on 6/22, we now sit a mere 
$0.15 in the minus column. Volume in the stock is a problem 
however, with a minuscule 200K traded since Monday. For the up 
trend in shares to continue, participation will definitely need 
to improve. A closing north of $33.00 would represent a bear 
reversal pattern on a point & figure chart, and could help the 
volume numbers increase. Our stop moves to $27.00.

Next Earnings: 7/26/01




===

SHLR - Schuler Homes, Inc. $13.35 -0.22  s/l $11.94

Since adding Schuler just last night, things are proceeding about 
as we had planned. Share of the Hawaii based company lost a 
meager $0.22 in trading Tuesday, and stay plotted above the 21-
dma. With the FOMC slated to lower rates yet again tomorrow, a 
move that will undoubtedly help spur new home sales, SHLR should 
continue its recovery towards higher prices. Support is strong 
with both the 21 and 10 dma's, plotted at $13.32 and $12.90, 
respectively.

Next Earnings: 8/9/01




===============
AT Closed Plays
===============

  ----------------
  Closed Long Play
  ----------------

WMI - Waste Management, Inc.  $29.87 +1.40 s/l $29.51

Our brief stint with WMI comes to a happy end, and this is a 
testament to the use of stop loss triggers. Since our last update 
on Sunday, shares of WMI have taken a beating, losing $0.60 or 
2.06%. Our stop loss was triggered with ease in the decline, but 
not before we cleared $1.00 or 3.5% for our readers. WMI is now 
well below support levels, and could trade to $27.00 where we 
might consider the stock again if a bounce occurs.

Picked on June 6th   @  $28.51
CLOSED OUT @            $29.51

Changed Since Picked   =  +1.00 or + 3.5%
Best Change 	     =  +1.87 or + 6.5%



===

ELN - Elan Corp, Inc.  $60.75 +1.39 s/l $60.75

Shares of ELN reversed in sharp fashion last Thursday, and the 
selling continued long enough to hit our stop loss at $60.75 when 
the stock breached the 10-dma ($60.88) Monday. With the BTK.X 
losing the 600 level, its not surprising to see leading names in 
the sector succumb to pressure. We walk away with a minor 
spanking on this trade, losing $1.61 or 2.5%.

Picked on June 18th   @  $62.36
CLOSED OUT @             $60.75

Changed Since Picked   =  -1.61 or - 2.5%
Best Change 	     =  +2.64 or + 4.2%





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