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Daily Newsletter, Wednesday, 06/27/2001

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PremierInvestor.net Newsletter                Wednesday 06-27-2001
                                                    section 1 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
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To view this email newsletter in HTML format with imbedded
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In section one:

Market Wrap: Fed-Schmed..We Want Earnings!
Market Sentiment: Time to Rotate
Play-of-the-Day: Driller or Drillee?
Watch List: AMTD, ISSX, CRUS, SEIC

-----------------------------------------------------------------
U.S. Market Numbers
-----------------------------------------------------------------
MARKET WRAP  (view in courier font for table alignment)
-----------------------------------------------------------------
        06-27-2001        High      Low     Volume Advance/Decline
DJIA    10434.84 - 37.64 10531.19 10408.00 1.14 bln   1811/1271	
NASDAQ   2074.74 + 10.12  2084.41  2048.88 1.69 bln   2085/1635
S&P 100   626.69 -  2.85   631.33   624.62   totals   3896/2906
S&P 500  1211.07 -  5.69  1219.92  1207.29           57.3%/42.7%
RUS 2000  495.58 +  4.76   496.23   490.50
DJ TRANS 2699.47 + 53.16  2699.66  2644.46
VIX        23.57 +  0.22    25.10    23.39
Put/Call Ratio      0.54
-----------------------------------------------------------------

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

Fed-Schmed..We Want Earnings!

Throughout the morning, traders had a modestly bullish bias as 
those in the market anxiously awaited the announcement from the 
FOMC at 2:15 EST. After showing mostly flat futures indicators 
before the opening bell, traders slowly but surely bid the market 
higher as the two-o-clock hour approached, ever hoping that each 
would get what they wanted from Alan and the boys at the Fed.

Plenty of bad news was around to slow the market's ascent higher. 
After the bell warnings from XLNX, VTSS and COMS offered the 
typical daily weighting on shares in the semiconductor sector 
(SOX.X), although considering recent reactions to abysmal 
outlooks from the likes of AMCC, the SOX held up well during 
morning trading. While the index did manage to poke its head back 
above the key 600 level, pessimism regarding its ability to lead 
the COMPX higher still outweighs the converse, handing the task 
off to stronger sectors  in tech-land such as software (GSO.X) 
and internet issues (INX.X).

Speaking of software, recent bids in the group were spurred by 
Oracle's better than expected, albeit cost cut driven earnings 
report. CEO Larry Ellison added fuel to the fire by stating on a 
CNBC interview yesterday that his firm was seeing firming in 
orders, and in essence could see the light at the end of the 
tunnel. Oracle caught a late but furious bid in trading Tuesday, 
but the stock saw selling today, losing $0.40 by the end of the 
session. Names in the sector that held up better than Oracle 
included Rational Software (NASDAQ:RATL) +0.45, Peregrine Systems 
(NASDAQ:PRGN) +1.72 and Citrix Systems (NASDAQ:CTXS) +1.25.

In the credit markets, bonds basically traded in flat fashion 
ahead of the announcement, as traders in the fixed income arena 
digested how yesterday's sharply higher than expected data from 
housing and durable goods might affect the FOMC's decision on 
rates. In late trading, the 2 year note was seen lower by 6/32's, 
yielding 4.09%. The benchmark 10-year note last traded at 98-10, 
providing a yield of 5.22%.

When the news finally hit, the Fed acted exactly as the funds 
contract had predicted, and lowered rates by 25 basis points to a 
target rate of 3.75%. Their statement read..."The patterns 
evident in recent months--declining profitability and business 
capital spending, weak expansion of consumption, and slowing 
growth abroad--continue to weigh on the economy. The associated 
easing of pressures on labor and product markets are expected to 
keep inflation contained."  The FOMC also lowered the discount 
rate to 3-1/4 percent.

Market reaction was widely negative, at least immediately 
afterwards, with the Dow, Nasdaq and S&P 500 all losing ground as 
the news hit the wires. Fixed income saw selling the in the 
shorter term maturities from two to five years, with the 30-year 
bond achieving mild gains. In order to see a more sustained push 
higher in the equity markets, we will need to see intermediate 
term yields (10-year) break back above key resistance levels, 
ideally 5.30% (50-dma). The five-year yield is very close to 
breaking above its 50-dma (4.82%), now only 5 basis points away. 
Selling in these instruments would dictate that the easy money to 
be made in the credit markets over, prompting fund allocations 
away from this area of the market and into stocks.

Until we see such allocations take place, the markets could well 
trade in the same tight range that they have for much of the 
prior two months. When institutions are considering putting money 
to work, they are probably seeing very little near term reward in 
technology. If I were a fund manager, I would be more prone to 
add to or initiate positions in financials, predominately large 
cap banking institutions, which should be able to reap huge gains 
in their net interest margin income category due to lower rates. 
Names punished lately that could provide a decent return if this 
mind set becomes a reality include Bank of New York (NYSE:BK), 
State Street Corp. (NYSE:STT) and Mellon Financial (NYSE:MEL).

As the day wrapped up, the Dow Jones Industrial Average was lower 
by 37.30 points to 10,435. The Nasdaq Composite eked out a gain, 
finishing at 2074, up 10.0 points. The broader S&P 500 shed 3.65 
points, settling at 1213. Advancing issues edged out declining 
issues 1811 to 1268, although declining volume was decidedly 
higher than advancing volume at the NYSE, coming in at 655m to 
462m.

Need some positive technicals? Unfortunately, there aren't many. 
The Dow again settled below the key-200 dma (10,598), although 
some solace might be had in the index not taking out yesterday's 
low of 10,394. The picture for the S&P is not as rosy, (if you 
can call that of the industrials' rosy) as while the index did 
not set a lower intraday low, it also did not trade take out the 
high tick from Tuesday. Refreshingly, the Nasdaq looks the best 
of the big three, although it appears more vulnerable than the 
others simply due to the horrible weakness in semiconductors and 
telecom. It seems traders had bought the abysmal news from the 
likes of AMCC, VTSS and XLNX in anticipation of larger, rather 
than the smaller stimulus from the Federal Reserve. Now that the 
news is out, what holds these stocks up? The same air that held 
up inflated stocks in the bull market of 99-00, in my opinion, 
when growth WAS actually ramping - much the opposite of current 
EPS trends. The COMPX remains plotted above its 10-dma at 2036, 
and volume numbers were in-line with the 30 day average trend, 
coming in at 1.7 billion shares. Support still sits near 2000 
initially, and then with 1923, the close before the surprise rate 
cut on 4/18, which is seen as the next firm level where bulls 
might put up a fight.

After the bell we received more warnings from technology, this 
time from networker Redback Networks. The company said they now 
see see a loss of $0.27-$0.32 vs. consensus est for loss of 
$0.11. Revenues are now forecast at $55-$60 mln vs the expected 
$88.9 mln. Redback's stock (NASDAQ:RBAK) was higher by $0.90 to 
$11.30 in regular trading, but was bid at $9.32 the time of this 
writing.
Going forward, considering the broad based weakness in the 
economy, it would be foolish to believe that any near term 
strength will have legs, especially with the Fed now out of the 
way. While the reductions in the funds rate, sharply lower oil 
prices and the coming tax stimulus will have their desirable 
effect on the lisping ship USS Econo-rama, the lack of a near 
term catalyst should force funds to hedge their bets, providing 
little upside in the markets. Lacking a reason to buy, fund 
managers will likely decide to simply do nothing, preferring to 
wait for a technical breakout or signs of an upturn in capital 
spending. Neither seem likely, despite oversold readings in the 
NYSE and NASDAQ ARMS indices. With the CBOE VIX still hanging out 
below 24.00, it sure feels like trader's compliancy could use 
some shock treatment.


Derek Baltimore
PremierInvestor.net


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

Time to Rotate

The money that has found its way into the markets continues to 
rotate from sector to sector, so where is it finding its way this 
week?

After being beaten up for two weeks, the Airline Index is getting 
a little relief rally.  It's probably the result of short 
covering, and not outright buying, but nevertheless it was 
today's best performing sector, up 2.46%.

Last weeks winners of the dead cat bounce award were networking 
and disk drives.  Disk drives are trying to turn the bounce into 
a rally, up 1.01% today, but look to have met short-term 
resistance.  Networking's bounce was brief, and has had trouble 
getting resistance at 345.  The weekly and daily charts still look 
grim, thus our ranking of bearish. 

Stuck in the middle are biotechnology, semiconductor, software, 
and internet stocks.  They are holding up better than most 
sectors, but it's hard to call their weekly or daily charts 
bullish.  Biotechnology looks to be the strongest candidate, and 
is starting to approach oversold territory.  A break of support 
at 570 changes the picture dramatically.

Bullish sectors are hard to come by.  Pharmaceuticals looked good 
until Merck warned, but could be due for a relief rally after 
losing 5.7% over the past 5 days.  The banking sector continues 
to be one of the only sectors above its 50 and 200-day moving 
average, and worthy of a bullish trend rating.


-------------------------Sector Watch---------------------------

            Weekly   Daily      Overbought   Support  Resistance 
            Trend    Trend      Oversold                         
 
DJIA        Bearish  Bearish    Oversold	    10,400   10,800
NASD        Bearish  Neutral    Overbought     2,000    2,100
S&P 500     Bearish  Bearish    Neutral        1,200    1,250
Rus 2000    Neutral  Neutral    Oversold         480      500

Semis       Neutral  Neutral    Neutral          545      625
Biotech     Neutral  Neutral    Oversold         550      630
Internet    Neutral  Neutral    Overbought       160      186
Networking  Bearish  Bearish    Neutral          314      345
Software    Neutral  Neutral    Neutral          200      230
Banking     Bullish  Bullish    Overbought       670      640
Retail      Bearish  Bearish    Oversold         840      880
Drugs       Bearish  Bearish    Oversold         385      400


                          Percent Change
             Last 5 Days   Last 10 Days	   Last 30 Days 
DJIA            (1.5%)        (5.0%)            (5.9%)
NASD             2.1%         (2.2%)            (0.5%)
S&P 500         (1.0%)        (2.5%)            (3.1%)
Rus 2000        (0.6%)        (1.9%)             1.2%

Semis            1.9%         (6.7%)            (1.3%)
Biotech         (4.7%)        (1.9%)            10.6%
Internet         3.1%         (8.8%)            (6.3%)
Networking       3.5%        (13.8%)           (24.5%)
Software        (0.7%)        (0.2%)             3.3%
Banking          0.3%          0.7%              3.3%
Retail          (4.3%)        (4.7%)            (4.8%)
Drugs           (5.7%)        (4.0%)            (2.5%)

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


===============
Play-of-the-Day - Short play
===============

KMG - Kerr-McGee $65.69 -1.50  Stop Loss: $70.10

Kerr-McGee Corporation is an energy and chemical company.  KMG 
explores for and produces oil and natural gas resources through a 
multitude of business units all carrying the Kerr-McGee name.  
The company's chemical operations consist of two segments that 
produce and market inorganic industrial chemicals, heavy minerals 
and forest products throughout the world.

Analysts expect the company to report earnings of $1.65 for its 
second-quarter, which is scheduled to be reported on July 25th.  
This would compare to year-ago quarterly earning of $2.13.  On 
May 14th, KMG announced plans to acquire HS Resources (NYSE:HSE) 
in a cash and stock deal valued at about $1.25 billion and calls 
for KMG to assume about $450 million in HS Resources debt.

Energy stocks have come under pressure in recent weeks and it 
looks like the broader energy sector selling is beginning to take 
its toll on shares of Kerr-McGee.  After setting a 52-week high 
of $74.10 on April 26th, the stock has started to see a pattern 
of lower highs suddenly turn into lower lows.  Today, the stock 
closed at $65.59 and marks the lowest close for the stock since 
April 4th of this year.  Today's close is also below the longer-
term 200-day moving average, which is beginning to roll over at 
$66.65.  

Much of the selling pressure that has afflicted stocks in the 
energy sector like Kerr-McGee is that the energy futures market 
shows crude oil futures as well as natural gas futures dropping 
precipitously in recent weeks.  We feel the potential catalyst 
for a downward move in shares of KMG could be caused by the 
recent acquisition of HS Resources (NYSE:HSE).  On May 14th, KMG 
announced it would buy HS Resources for $1.25 billion in stock 
and debt.  HS Resources had large natural gas reserves in the 
then coveted Rocky Mountain region and KMG was looking for 
increased exposure to natural gas.  On May 14th, the July Natural 
Gas futures contract was trading for about $4.35, but today that 
same Natural Gas contract is trading for $3.18.  The recent drop 
in oil prices and natural gas prices may have many market 
participants beginning to believe that KMG paid too much for HS 
Resources and put further pressure on KMG shares.

The current bearish price objective from the point and figure 
chart indicates a longer-term bearish price objective $59, but 
this number could grow as the current count column may still be 
developing.  The recent trading at $67 was enough to give the 
stock a triple bottom sell signal and also broke the longer-term 
bullish support trend.  

We feel the current technicals of the stock along with 
deteriorating fundamentals for energy prices puts shares of KMG 
at risk to lower levels.  Traders looking to short the stock 
might begin their bearish trading in the stock with a stop at 
$70.10 and be targeting the $56 level.  We would note that the 
company does pay an annual dividend of $1.80

Picked on June 27th at $65.59
Earnings Date            7/25 (not confirmed)

 




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

AMTD - Ameritrade, Inc. $6.72 +0.35

WHY WE LIKE IT: With the market showing no clear signs of 
conviction, you might wonder why Ameritrade is worth mentioning, 
much less watching. Well, Omaha, NE based AMTD started taking 
steps to improve it business, and the proactive nature of its 
management dictates paying attention to. Ameritrade said it plans 
to reorganize itself into two units to focus on different types 
of customers. The company said it has formed a private client 
unit, which deals with individual customers, and an institutional 
client group, catering to large customers such as banks and hedge 
funds.
POTENTIAL TRIGGER EVENT: AMTD has formed a nice base recently 
near the $6.00 level, and this gives traders a nice natural stop 
point. We would like to see the euphoria surrounding today's news 
fade a bit, along with share prices, potentially picking up some 
AMTD on a bounce off of $6.50. Daily stochastics made a bullish 
crossover near 23 and volume was well above average, so the 
technical picture is certainly improving, even if trading 
revenues are not.




---

ISSX - Internet Security Systems, Inc. $47.75 +1.18  

WHY WE LIKE IT: Shares of the internet security software company 
have recently breached and settled below the key-50 dma but have 
done so on lighter than normal volume. Also, resistance levels in 
the form of the 10 & 21-dma's have been recently taken back out 
to the upside, with the 50-dma now poised to fall. As the GSO 
continues to garner more attention in light of weakness in the 
Philadelphia Semiconductor Index (SOX), software stocks should 
continue to outperform the broader technology market.

POTENTIAL TRIGGER EVENT: A break and close over the key 50-dma at 
$49.71 and ISSX should fly. The stock is a favorite of both 
technical traders as well as the day trading community, and thus 
the participation figures should follow such an event, driving 
prices towards the $53.00 level. 	




---

CRUS - Cirus Logic, Inc. $22.72 +4.09  

WHY WE LIKE IT: An upgrade this morning from Thomas Weisel 
Partners in San Francisco could be just what the Doctor ordered 
to get shares of CRUS back on track. Weisel noted strength in the 
MP3 and DVD market as reasons for the upgrade, and while the 
vaulting by shares back above the 50-dma at $20.51 is impressive, 
the 15% pop seems a bit much. We think that the move proves worth 
watching, however, as the decline from recent highs near $25.00 
came on sharply declining participation, indicative of weak hands 
selling the stock.

POTENTIAL TRIGGER EVENT: A retracement and bounce off of the 
$20.50 level would provide an attractive entry for a long 
position in CRUS, with tight stop around $19.50. Technically, 
those with more aggressive tendencies would want to add CRUS at 
current levels, as shares will likely trade to $22.75 before 
encountering resistance.




---

SEIC - SEI Investments, Inc. $45.80 +0.65

WHY WE LIKE IT:  Firms servicing the financial services arena 
have recently become perceived as recession proof, as their 
services are a necessity for banks and credit unions improving 
their electronic offerings to their clientele. SEI is just such a 
firm, and the slow but steady progression by shares up the chart 
is more appealing than some of the more widely followed, and 
overbought (FISV, CEFT) names in group.

POTENTIAL TRIGGER EVENT: We want to see how banks and brokers 
perform in Wednesday's session, following the FOMC rate cut of X 
basis points today. Considering the time lag associated with the 
front end loaded reductions in the Fed Funds target, banks should 
start to show marked improvements in their net interest income, 
allowing for further capital spending in services like SEIC's. A 
pull back to $42.50-$43.00 would also give a better risk/reward 
scenario with SEIC, as resistance from February near $45-46 is on 
top of current prices.


 




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DISCLAIMER
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This newsletter is a publication dedicated to the education
of stock traders. The newsletter is an information service
only. The information provided herein is not to be construed
as an offer to buy or sell securities of any kind. The
newsletter picks are not to be considered a recommendation
of any stock but an information resource to aid the investor
in making an informed decision regarding trading in stocks. It
is possible at this or some subsequent date, the editors and
staff of PremierInvestor.net may own, buy or sell securities
presented. All investors should consult a qualified professional
before trading in any security. The information provided has
been obtained from sources deemed reliable but is not
guaranteed as to accuracy or completeness. PremierInvestor.net
staff makes every effort to provide timely information to its
subscribers but cannot guarantee specific delivery times due to
factors beyond our control.

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

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Copyright  2001  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.


PremierInvestor.net Newsletter                Wednesday 06-27-2001
                                                    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/246810_2.asp
=================================================================

In section two:

Split Trader
  Split Alert: Flagstar (NASDAQ: FLGS)

Stock Bottom / Active Trader
  New Plays: ELON (long), KMG (Short)

Net Bulls
  Closed Plays: Chip Warnings Produced Chip Bounce?


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

=================
Stock Split Alert
=================

Flagstar Bancorp, Inc. (NASDAQ: FLGS) announces 3:2 split for 7/12/01

  For more details click here:
http://dev.PremierInvestor.net/stocksplits/announcements/062701_1.asp



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

============
AT New Plays
============

   -------------
   New Long Play
   -------------

Echelon Corporation ELON $26.00 +1.01 Stop Loss: $24.25

Strong bullish momentum compels us to revisit this former Bullish 
selection.  Echelon wants to control your world, or at least your 
washing machine and air conditioner.  The Sunnyvale, California-
based company designs, markets and services products that allow 
industrial equipment, household devices and building environments 
such as assembly line robots, security devices, thermostats, 
pumps and valves to communicate with each other and the Web.  
The company's technology gets imbedded into control systems that 
allow them to be connected through a network.  Customers include 
Honeywell, Siemens and Johnson Controls.  

For the first quarter, Echelon reported an increase in earnings 
from a loss of $651 thousand to a gain of $22 thousand.  Revenue 
rose 10-percent to $12.6 million.  For the year, analysts forecast 
earnings of 19-cents per share on sales of $79 million.  This is 
a big improvement over last year's earnings of 0.00-cents per 
share on revenue of $47 million.  Analysts expect the good times 
to continue, they project 2002 earnings of 71-cents per share on 
sales of $174 million.  This gives the firm a forward P/E of 136 
for 2001 and 37 for 2002.  This compares well with the industry 
average P/E of 88 and is reasonable given the company's projected 
sales growth of 66-percent for 2001 and 112-percent for 2002.

This company's strong financial improvement has not gone 
unnoticed by investors.  After dropping to $8.00 on April 4th 
the shares rebounded to set a new 6-month closing high of $25.66 
on May 22nd.  Since then the shares have been locked in a trading 
range bounded approximately by $21.50 and $26.00.  Wednesday's move 
represents the fourth time since entering the channel that the 
shares have tested $26.00.  We believe in this case, the fourth 
time is the charm.  Wednesday's $26.00 close set a new 6-month 
closing high and did so on the third consecutive day of rising 
volume.  In addition, Wednesday's volume of 556k was well above 
the 398k daily average.  Another sign that we like was strong 
intraday behavior on Wednesday's 1-minute chart.  The shares ended 
the day as solid as it began with nary a dip in between.  Toss the 
anticipated strong July 19th earnings report into the picture and 
ELON shares have clear bullish momentum and the means to maintain 
it.  If ELON shares can clear $26.81, then they should be able to 
push through moderate resistance at $29. The next likely test 
would be resistance at $33.58.  Traders should wait for this break 
above $26.81 before taking a position.  This would leave the former 
$26.00 resistance level nearby as support.

Picked on June 27th at $26.00
Earnings Date            7/19 (Not Confirmed)

 




   --------------
   New Short Play
   --------------


KMG - Kerr-McGee $65.69 -1.50  Stop Loss: $70.10

Kerr-McGee Corporation is an energy and chemical company.  KMG 
explores for and produces oil and natural gas resources through a 
multitude of business units all carrying the Kerr-McGee name.  
The company's chemical operations consist of two segments that 
produce and market inorganic industrial chemicals, heavy minerals 
and forest products throughout the world.

Analysts expect the company to report earnings of $1.65 for its 
second-quarter, which is scheduled to be reported on July 25th.  
This would compare to year-ago quarterly earning of $2.13.  On 
May 14th, KMG announced plans to acquire HS Resources (NYSE:HSE) 
in a cash and stock deal valued at about $1.25 billion and calls 
for KMG to assume about $450 million in HS Resources debt.

Energy stocks have come under pressure in recent weeks and it 
looks like the broader energy sector selling is beginning to take 
its toll on shares of Kerr-McGee.  After setting a 52-week high 
of $74.10 on April 26th, the stock has started to see a pattern 
of lower highs suddenly turn into lower lows.  Today, the stock 
closed at $65.59 and marks the lowest close for the stock since 
April 4th of this year.  Today's close is also below the longer-
term 200-day moving average, which is beginning to roll over at 
$66.65.  

Much of the selling pressure that has afflicted stocks in the 
energy sector like Kerr-McGee is that the energy futures market 
shows crude oil futures as well as natural gas futures dropping 
precipitously in recent weeks.  We feel the potential catalyst 
for a downward move in shares of KMG could be caused by the 
recent acquisition of HS Resources (NYSE:HSE).  On May 14th, KMG 
announced it would buy HS Resources for $1.25 billion in stock 
and debt.  HS Resources had large natural gas reserves in the 
then coveted Rocky Mountain region and KMG was looking for 
increased exposure to natural gas.  On May 14th, the July Natural 
Gas futures contract was trading for about $4.35, but today that 
same Natural Gas contract is trading for $3.18.  The recent drop 
in oil prices and natural gas prices may have many market 
participants beginning to believe that KMG paid too much for HS 
Resources and put further pressure on KMG shares.

The current bearish price objective from the point and figure 
chart indicates a longer-term bearish price objective $59, but 
this number could grow as the current count column may still be 
developing.  The recent trading at $67 was enough to give the 
stock a triple bottom sell signal and also broke the longer-term 
bullish support trend.  

We feel the current technicals of the stock along with 
deteriorating fundamentals for energy prices puts shares of KMG 
at risk to lower levels.  Traders looking to short the stock 
might begin their bearish trading in the stock with a stop at 
$70.10 and be targeting the $56 level.  We would note that the 
company does pay an annual dividend of $1.80

Picked on June 27th at $65.59
Earnings Date            7/25 (not confirmed)

 




================================================================
Net Bulls (NB) Internet / Tech Stock Section
================================================================

===================
NB Closed Tech Play
===================

   -----------------
   Closed Short Play
   -----------------
   

Qualcomm QCOM $55.56 +2.11 Stop Loss: $55.50

In perhaps the surest sign that market must be nearing a bottom, 
QCOM shares shook off earning warnings from chipmakers Xilinx 
(XLNX), Vitesse (VTSS) and Applied Micro (AMCC) to put in a 
bullish reversal.  Our stop was tripped at $55.50.  We can find 
no company specific news to account for the bullish bias.  However,
the bullish turn to the technical picture was strong and 
compelling.   

Picked on June 26th at $53.45
Gain since picked       (2.05)
Earnings Date            7/26 (Not Confirmed)






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=================================================================
DISCLAIMER
=================================================================

This newsletter is a publication dedicated to the education
of stock traders. The newsletter is an information service
only. The information provided herein is not to be construed
as an offer to buy or sell securities of any kind. The
newsletter picks are not to be considered a recommendation
of any stock but an information resource to aid the investor
in making an informed decision regarding trading in stocks. It
is possible at this or some subsequent date, the editors and
staff of PremierInvestor.net may own, buy or sell securities
presented. All investors should consult a qualified professional
before trading in any security. The information provided has
been obtained from sources deemed reliable but is not
guaranteed as to accuracy or completeness. PremierInvestor.net
staff makes every effort to provide timely information to its
subscribers but cannot guarantee specific delivery times due to
factors beyond our control.

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

*****************************************************************
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Newsletter, or any Premier Investor Network newsletter please
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Copyright  2001  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.


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.

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Option Investor Inc
PO Box 630350
Littleton, CO 80163

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