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Daily Newsletter, Friday, 07/06/2001

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PremierInvestor.net Newsletter         Weekend Edition 07-07-2001
                                                   section 1 of 3
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In section one:

Market Wrap: They Might, But They Might Not!
Market Sentiment: If you can keep your head....
Play-of-the-Day: QQQ - Playing For A Market Turn
Watch List: Support Means Bounce
Traders Corner: Retracement Brackets 1.0

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U.S. Market Numbers
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MARKET WRAP  (view in courier font for table alignment)
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        WE 7-06          WE 6-29          WE 6-22         WE 06-15
DOW    10252.68 -249.72 10502.40 -102.19 10604.59 - 19.05  -353.36
Nasdaq  2004.16 -156.38  2160.54 +125.72  2034.82 +  6.39  -186.67
S&P-100  612.95 - 19.07   632.02 -  4.13   636.15 +  9.52  - 25.29
S&P-500 1190.59 - 33.79  1224.38 -   .97  1225.35 + 10.99  - 50.60
W5000  11059.56 -347.59 11407.15 + 94.70 11312.45 + 74.45  -498.70
RUT      483.26 - 29.38   512.64 + 23.99   488.65 -  6.48  - 16.51
TRAN    2748.92 - 81.04  2829.96 +153.47  2676.49 - 17.13  -188.47
VIX       24.97 +  3.34    21.63 -   .87    22.50 -  3.83  +  4.92
Put/Call    .90              .58              .69
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===========
Market Wrap
===========

They Might, But They Might Not! by Jeff Bailey

I have no scientific fact or basis for the following thought, but
it sure seems to me that many market participants are more
negative now than they were in early April.  I get the feeling
that many traders truly believe that stocks are set to go even
lower from today's close.  To that I say, "They might, but they
might not!"  Let me play devil's advocate for a moment.

Let's look for clues and build a scenario for why things might
get bullish in the weeks ahead.  I'm doing this to try and get
traders to think both sides of the market.  Right now, I think
there's too much negativity and this is often time when traders
begin getting too aggressive with bearish trades and get tunnel
vision on where they think things are going.  Heck, my commentary
lately has been less than bullish, so now I'm just looking for
any clues of where a bearish trader might find trouble.  After
all, it's been a known fact that all the bad news comes out at
the bottom.  Let's face it, there's was enough negative news in
the markets today with the Advanced Micro Devices (NYSE:AMD) and
the employment data to choke a horse.  With that being the case,
why in the world are the broader market indices not at 52-week
lows and we're starting to see selling in the 30-year bond once
again?  Unless of course, the MARKET might be thinking that
things are shaping up longer-term and the 5.75% YIELD of this
bond just isn't that attractive anymore.

30-year YIELD chart - 0.25 box scale



There's a lot that has taken place in the YIELD chart of the 30-
year Treasury ($TYX.X) in recent months.  The first big even took
place on April 10th when this bond saw enough selling to get the
YIELD above the 5.575% (55.75 on chart).  Notice how the
aggressive selling in the bond to the 5.8% level was met with
resistance on YIELD right at the extension of the old bullish
support trend (blue + that I extended trend on).  Hmmmm...
support broken eventually acting like resistance.  Now look what
has happened over time.  Right at the BIG break in YIELD at
5.575% this bond YIELD has tested that level twice, but there has
not been enough buyers in bonds to get that YIELD lower!  Why is
that?  Is it because the MARKET no long perceives that type of
YIELD worth the trouble?  Perhaps there's another investment
somewhere else that is more attractive and offers a more
favorable risk/reward?  Sometimes, that alternative investment is
stocks and perhaps that's why the broader market indices are not
at new lows.  Even with all the bad news we've been getting
lately.

One thing I really want to point out is the recent triple-top buy
signal for YIELD on this bond at the 5.75% level.  In essence,
this is equivalent to a triple-bottom sell signal for the price
of the bond.  Those subscribers that understand "triple tops" and
"triple bottoms" as it relates to supply/demand and the
probabilities associated with such activity get the feeling that
this YIELD has a good probability of moving higher in the coming
months.

Now, you know this technique of "fitting" the retracement bracket
we've been teaching on stocks?  Don't think it only "works" on
stocks.  This might blow your mind.  Check this out as it gives
us a CRITICAL level to be monitoring in the coming sessions!  So
CRITICAL in fact, that I believe this bond action will either
"make or break" the MARKET in the next two weeks.

30-year YIELD Chart - last seven months



The above chart is the "first" reason I think the 5.78%-5.8%
YIELD level on the 30-year YIELD becomes critical to be
monitoring.  My belief is that BULLISH equity traders want to see
this YIELD shoot higher and have the cash tied up in this bond
rush into stocks.  I also believe a BEARISH traders wants to see
this bond YIELD not budge any higher, as cash coming out of this
bond might just rotate into the stocks he/she is short and send
them on a path to recovery.  At this point, a BEARISH trader
would love nothing more than to see a bunch of money rush back
into this bond at 5.748% while stocks fall apart.  If the cash
goes into bonds, there's less money that can go into stocks.

Now... I've struggled with my "anchor/fit" technique on this
bond.  I "fit" the retracement brackets 38.2% level to the April
12th low YIELD of 5.564% and the May 4th YIELD low of 5.564%.  I
liked the way this bracket reflected trading and really seems to
be levels the MARKET has been willing to trade this bond YIELD.
The rallies in YIELD (selling in the bond) have found resistance
at current levels in the past.  It popped above this level back
on May 11th-May 31st, but has not seen the light since.  I think
there are a lot of bears watching this YIELD level and hoping
that buyers come back into bonds.  I also think there were enough
"jittery" market participants that couldn't resist the higher
YIELD of this bond above the 5.8% level and fled to its safety at
hose levels, this driving YIELD back lower. However, if the
MARKET continues to sell this bond, then that creates worry for
bearish market participants.

Now... I said above that I struggled with my "anchor/fit"
technique on the above chart.  So, in my tireless effort to try
and prove myself wrong, I used a different level from which to
"fit."  This is where I fell out of my chair and came to the
realization that the 5.78%-5.8% YIELD can become CRITICAL!  Now
WAKE UP!  Notice that this chart has a different retracement
bracket on it!  It's anchored at the same point, but "fit" to the
March 28th, March 30th and April 2nd YIELD lows.

30-year YIELD Chart - last seven months



Here I've "fit" retracement a little differently.  What I find
VERY INTERESTING is the correlation in levels between the two
charts.  Holy cow!  Look how this YIELD has tested the 61.8%
retracement bracket level!  Now look at the 100% retracement
bracket level.  What I'm saying here is from 0% to 100% defines a
range and if that range is broken to the upside, then I have to
define a new trading range.  The "new" trading range might be in
the earlier chart of retracement on this bond, but I think it
points out how CRITICAL it is for this bond YIELD to break above
the 5.78-5.8% to signal the great potential for stocks to show a
rebound.  A rebound so strong, even the bullish of bulls might be
impressed.

Here are some things to do before Monday!

On the above chart, I've market a few dates I think are
noteworthy and helps put YIELD into the perspective of stocks.
On March 22nd, the YIELD on the 30-year reached a low.  Where
were the QQQs, the SPX and other indexes on March 22nd?  On April
10th, the YIELD on the 30-year made a major move higher (BIG
selling in this bond).  Where were the QQQs, SPX and others?
Then on May 11th the YIELD neared a recent peak.  Where were the
QQQs, the SPX and major indexes.  What you'll find is that stocks
have had a tendency to lag behind the moves in bond YIELD, but
that makes so much sense!  Where else is the cash going to come
from to buy stocks?  It's got to be coming from bonds.  I've said
before that I don't think brokerage houses are baring their doors
to keep investors from depositing money into their account.  For
now any gains in stocks is going to have to come from the selling
of bonds to generate the cash to eventually find its way into
stocks.  It's all about supply and demand!  Have a great weekend.
I can't wait until next week to put this to the test!

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

If you can keep your head.... by Jeffrey Canavan

..while those around you are losing theirs, you obviously don't
understand the gravity of the situation.

Market participants didn't react well to the news from AMD and
EMC.  The Dow and S&P 500 both lost over 2%, and the Nasdaq
Composite dropped by 3.65%.  Technical damage could be found far
and wide, with special damage being done to charts of the Dow and
the S&P 500.

So is there a silver lining in any of this?  It might be a bit of
a stretch, but lets see what we can come up with.

Traders got a little more fearful as the VIX jumped another 2.25
points to 24.97.  The goods news - there is some resistance at
25.

Not enough to convince you?  How about Friday's decline was on
less than average volume, which could mean that a majority of the
big players were still in the Hamptons.

Still not buying it?  Perhaps options traders got a little too
bearish on Friday, as two of the put/call ratios we monitor hit
overly bearish levels.  Everybody has a different view of what
put/call level is significant, but in general, a reading above
80 for all products at the CBOE is considered bullish.  Today
the number came in at .90.  An equity only put/call ratio of .75
can be viewed as bullish, and today's number came in at .76.

Admittedly, the above reasons are not enough to make me bullish.
They might be enough to prevent me from loading up the wagon with
puts until the dust settles after the first hour or so of trading
on Monday.  On Monday we will also have some fresh COT data,
which has been delayed due to the 4th of July.

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

Market Volatility
VIX   24.97
VXN   51.99

Put/Call Ratio

Total            .90
Equity Only      .76
OEX             1.47
QQQ              .65

Bullish Percent Data

           Current   Change   Status
NYSE          42       -      Bull Alert
NASDAQ-100    36     -14      Bear Confirmed
DOW           34     -10      Bear Confirmed
S&P 500       54       -      Bear Alert

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

10-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 the do, they can signal significant market turning
points.

        Advancers     Decliners
NYSE      1026           2057
NASDAQ    1143           2513

        New Highs      New Lows
NYSE        61            69
NASDAQ      44           101

Advisory Sentiment   Bullish   Bearish
                       48%      30%


Commitments Of Traders Report: 06/26/01
**Due to the 4th of July holiday, new data is not available until 7/9**
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.

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
-No significant changes in the S&P 500.  Institutions remain net
bearish, and increased that stance only slightly last week. This
should translate into the S&P 500 bouncing between 1200 and 1240
until this number budges one way or another.

Commercials   Long      Short      Net     % Of OI
6/12/01      353,074   423,257   (70,183)   ( 9.04%)
6/19/01      301,376   371,121   (69,745)   (10.37%)
6/26/01      307,889   379,955   (72,066)   (10.48%)

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      % of OI
6/12/01        167,720   100,610    67,110     25.01%
6/19/01        128,296    56,038    72,258     39.20%
6/26/01        130,914    56,269    74,645     39.88%

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

NASDAQ-100
-Institutions added more long positions last week than they did
short positions.  They remain net short, but are slowly getting
more bullish.

Commercials   Long      Short      Net     % of OI
6/12/01       33,586    44,234    (10,648)  (13.68%)
6/19/01       23,480    34,097    (10,617)  (18.44%)
6/26/01       26,263    35,690    ( 9,427)  (15.22%)

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      % of OI
6/12/01        18,374    16,264    2,110       6.09%
6/19/01        14,284     8,403    5,881      25.92%
6/26/01        10,519     6,064    4,455      26.86%

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
-This is probably the most surprising data of the week.
Institutions have actually turned net bearish on the Dow for the
first time since 3/20/01.  May that's why the Dow is having
trouble getting above 10,600.

Commercials   Long      Short      Net     % of OI  Open Interest
6/12/01       24,724    18,485    6,239     14.4%     37,886
6/19/01       12,346    10,470    1,876      8.2%     22,611
6/26/01       11,371    12,759   (1,388)    (5.8%)    23,163

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
6/12/01        5,332     9,637    (4,305)    (28.76%)
6/19/01        3,844     7,555    (3,711)    (32.56%)
6/26/01        4,756     6,341    (1,585)    (14.28%)

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 (Bullish)
=========================

Note: Our master market strategist Jeff Bailey thinks we are on the
verge of a bullish move, read his Market Wrap and consider this play.

Nasdaq-100 Series Trust - QQQ $41.65 -1.80 Stop: $40.00
	
Company Description:
The QQQ's are a pooled investment designed to emulate the results
of the Nasdaq-100 Index ($NDX).  This index contains the 100
largest companies in the Nasdaq Composite according to their market
capitalization.  As of the end of last year, the composition by
sector was: Technology (75.33-percent), Health Care (9.78-percent),
Communication Services (5.36-percent), Consumer Cyclicals (3.98-
percent), Consumer Staples (3.17-percent) and Basic Materials
(0.23-percent).  The 10 largest companies as of the end of last
year were: Cisco (6.36-percent of index), Microsoft (5.15-percent),
Qualcomm (4.80-percent), Intel (4.59-percent), Oracle
(4.39-percent), Sun (2.56-percent), JDS Uniphase (2.53-percent),
Veritas (2.27-percent), Siebel (2.27-percent) and Amgen
(1.99-percent).  Buying shares of the QQQ's, in effect enables
the holder to participate in the fortunes of 100 large companies.
In contrast to mutual funds, the QQQ's trade on the Nasdaq in the
same manner as the shares of any Nasdaq company.  Since the QQQ's
are tied to the tech laden Nasdaq 100, they are a good vehicle for
investors who want to take advantage of the current slump in
technology stocks, yet minimize the risks associated with owning a
particular company.

Strategy:

After an extended slumping market a rise in government bond yields
are giving us indications that the major money managers are building
cash to go stock shopping.  For a fuller explanation and analysis of
how we are coming to this conclusion read the weekend Market Wrap
prepared by our master market analyst Jeff Bailey.  For the impatient,
the short version is this - bonds act as passbook savings accounts
for large money managers.  When the market slumps they sell stocks
and use the money to buy bonds, when they are optimistic about
stocks they raise cash by selling bonds.  One way to predict if the
big money boys are buying or selling bonds, hence getting ready to
sell or buy stocks, is to check the yield of bonds.  If they are
selling bonds, the yield (think interest rate) of bonds has to go
up to attract new buyers.  So, if the major money managers are
building a pile of cash to go equity shopping, often the yield of
bonds goes up.  We are currently experiencing a significant rise
in bond yields, even as the equity markets are dropping.  This
leads us to believe money managers are getting liquid.  As Jeff
describes in the Market Wrap, if the yield on the 30-year bond
goes over 5.8 from its current 5.75, we believe this signifies
enough cash is sitting on the sidelines that a major positive move
in the stock market is highly likely within the next two weeks.
The next few days should tell the tale as far as yields are
concerned.  One way to play that pop is by buying the QQQ's.
However, traders should wait for the yield in the 30-year bond
to exceed 5.8 before taking a position, otherwise we are not
getting the confirmation we need.  Because we are adding this
to our play list before this confirmation, we are instituting a
stop at $40.

Picked on July 6th at $41.65
Earnings Date           N/A (Confirmed)




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

Sun Microsystems - SUNW $13.68 -1.49

WHY WE LIKE IT:  Despite the well-publicized woes of the computer
box makers, Sun Microsystems is still the premier name for network
servers.  Once the darling of many mutual fund managers the shares
have dropped from their $64.66 52-week high set last September.
And although the future many not seem so boundless with annual 50-
percent jumps in revenue, the company is still well managed,
profitable (42-cents per share est. for 2001 vs. 51-cents in 2000
and revenues are increasing (est +16.5-percent in 2001).

POTENTIAL TRIGGER EVENT:  With the shares approaching their 52-week
low of $12.85 set last April and an earnings report scheduled for
July 19th, it is fair to say the expectations bar is set so low
this company could fall over it.  Almost any form of good news
could cause a bullish reversal.  Watch for a bounce near the low.




===

Northrup Grumman - NOC $80.72 +0.62

WHY WE LIKE IT:  This split candidate is a global aerospace and
defense company.  It is well off its 52-week high of $99.10 set
back in March.  It is also beginning to gain momentum from the
$76.40 low it set on June 26th.  With a defense friendly
administration in Washington, it is reasonable to assume the
defense sector as a whole should have a good four years

POTENTIAL TRIGGER EVENT:  After setting a bottom of $76.40 on
June 26th, the shares jumped up and began form a base by moving
sideways in a trading range bounded by $80 to $82.50.  Friday's
strong move was on greater than average volume suggesting the
shares are ready to begin the next leg up.  A close over $82.50
on volume in excess of 664k would confirm the bullish move.





===

Microsoft - MSFT $66.06 -2.45

WHY WE LIKE IT:  Investors find it hard not to like a company that
owns a monopoly.  Microsoft's Windows operating system has a
stranglehold on the PC desktop.  Despite the economic down turn,
this has been a good year for Mister Softee (ticker:MSFT).  They
are launching a number of new products including Windows XP,
Office XP, Server 2000 and embarking on an assault on the gaming
sector with their xBox game console.  They are also still basking
in the glow of a legal victory that almost assures that the company
won't be broken up over anti-trust violations.

POTENTIAL TRIGGER EVENT:  Microsoft shares are approaching huge
support in the $65 to $65.75 range that has held firm since it
was broken to the upside in mid-April.  If the shares bounce off
it once again then it is reasonable to expect a visit to the upper
end of the trading channel near $73.00.  The most recent tech slide
is running out of steam and the company has an earnings report
coming up on July 19th.  This could set the scene for a bullish
reversal.  But the shares are currently carrying a lot of bearish
momentum so it is imperative to wait for the bounce.




==============
Traders Corner
==============

Retracement Brackets 1.0 By Eric Utley

Oftentimes here at Option Investor, embedded in the charts we use
to depict market action, we use retracement brackets.  This
technical analysis tool is often a source of questions and
sometimes confusion.  So it is with the aim or demystifying
retracement brackets that we embark on a mathematical journey.
But before we delve into the practical application of retracement
brackets and the implication on market operations, let's
explore the origins of retracement brackets.

Retracement brackets are also referred to as Fibonacci retracement
brackets because the tool is founded on the Fibonacci series of
numbers.  For those who've forgotten or, perhaps, misplaced the
Fibonacci series of numbers, let's review their origins and
explore who exactly this Fibonacci guy was.

To begin with, Leonardo Fibonacci was born around the dawn of the
13th century, somewhere in Italy.  His farther was an affluent
politician and director of a business colony, so naturally
Fibonacci was to become a merchant per his father's wishes.  As
Fibonacci aged, his father taught him basic accounting
calculations which piqued an interest in the young Italian.  In
addition, father Fibonacci sent his son to various places of
business such as Egypt, Greece and Syria, among other
destinations.  Young Fibonacci's travels to exotic places offered
the opportunity to study the various calculating and accounting
methods unique to each place.

After returning to Italy following his travels and mass collection
of arithmetic and algebra, Fibonnaci embarked on a mathematical
journey in an attempt to provide solutions to everyday problems.
Among many other accomplishments and various theorems and
formulas, Fibonnaci stumbled upon a unique sequence of numbers
that were ubiquitous in nature and appeared in, among other
things, the Pyramids of Giza.  What's more, it is believed that
Fibonacci stumbled upon the peculiar sequence of numbers while
trying to figure how quickly rabbits could reproduce under ideal
circumstances.  Why Fibonacci wanted to discover how fast wild
hares could reproduce is not much of my concern...

Anyway, the sequence of numbers that Fibonacci discovered follows:

1,1,2,3,5,8,13,21,34,55,89,144,233,377,610,987,1597,2584,4181...

..and so on to infinity.  The derivation of the numbers is
actually quite simple.  All Fibonacci did was to take the
preceding number in the sequence, add it to the following number
and arrive at the next number in the sequence.  For example, 1 +
2 = 3; 2 + 3 = 5, and so on.

A couple of other interesting derivations can be taken from the
Fibonacci sequence which concern market participants.  By
dividing any given number in the sequence by the following
number yields a very interesting fraction: 0.618.  The further
out in the sequence, the closer the fraction gets to exactly 0.618.
For example, 3 / 5 = 0.600; 8 / 13 = 0.615...2584 / 4181 = 0.618.
The number 0.618 is a very special number in mathematics and
indeed nature - it occurs in everything from the growth in plants
to the proportions of the human body, hence its practicality in
one of the most natural mechanisms on earth: the market.

The number 0.618 is also known as the perfect number, the golden
ratio and/or the golden mean.  Take my word for it, as a student
of mathematics, it's important.  Anyway, when we convert this
magical number to a percentage we arrive at 61.8%; 0.618 * 100 =
61.8%.  One more simple calculation, and we can get the other
side of this equation.  We subtract 61.8% from 100% to arrive at
38.2%; 100 - 61.8 = 38.2%.  (This may seem to be a slippery slope
on my part, with a few missing links, but it will make sense in
the following paragraphs).

Getting back to the market, most participants concede that no
index nor individual equity trades in a straight line, whether
it be up or down.  The fact is, the majority of indexes and
stocks retrace all or a significant portion of a substantial
move in one direction or another.  (The exception being a company
that goes bankrupt and its stock goes to zero (Read: 360 Networks
(NASDAQ:TSIX)).

So if we accept the fact that stocks and indexes normally retrace
an advance or decline, we can begin to measure the moves using
retracement brackets.  What's interesting, widely observed
and accepted is that while stocks and indexes retrace their
respective moves, they tend to find support and resistance levels
around the percentages we just arrived at: 61.8 and 38.2, derived,
of course, from the Fibonacci sequence of numbers.  The third
primary percentage that stocks tend to gravitate around while
retracing a move is 50%.  It's half, and that's easy for us
humans to relate to.  Whether this is a naturally occurring
phenomenon or simply a self-fulfilling prophecy is the topic of
intense debate.  In either case, the Fibonacci retracement brackets
work!

The essence of the Fibonacci retracement brackets is to measure
a stock's move and attempt to determine where a stock is likely
to find support and resistance once that move is retraced.

Let's take a current example.  Let's say we wanted to trade
NVIDIA (NASDAQ:NVDA) from the short side and wanted to try to
figure out where the stock could find support if it were to
pullback from its recent advance.  We'd start by taking the
stock's meaningful relative low which, in my estimation, was
traced at $27.50 in December of 2000.  The stock traded as
high as $100 in early June.  We simply measure that move:
$100 - $27.50 = $72.50.  Now that we have the magnitude of the
move, we can apply our percentages to begin to determine
possible support levels on the way back down, should the stock
pullback.  For example, we take 38.2% of $72.50 and subtract
that from $100 to arrive at our first possible support level:
$100 - ($72.50 * 0.382) = $72.31.  That simple calculation
gives us the 38.2% retracement level, which is a possible
support level if NVIDIA pulls back.  We can apply the same
arithmetic to arrive at the 50% and 61.8% retracement levels.

That concludes my explanation on where Fibonacci retracement
brackets originated and why they're used in market
operations.  Be sure to check back next week for Version
2.0 of the Retracement Bracket series.


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Do not duplicate or redistribute in any form.

PremierInvestor.net Newsletter         Weekend Edition 07-07-2001
                                                   section 2 of 3
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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In section two:

Split Trader
  New Plays: No new ST Plays
  Play Updates: Splits Hold Their Own - ATK, ESI
  Closed Plays: Bears Take Center Stage - BSYS

Net Bulls
  New Plays: ERTS (Bullish) and QCOM (Bearish)
  Long Play ALLTEL Corporation
  Bearish Play Updates: Great Day For The Bears
  Bullish Plays Update: Yahoo - YHOO
  Closed Plays: AMAT (Bullish), SFA (Bullish)

Stock Bottom / Active Trader
  New Plays: QQQ (Bullish)
  Long Play Updates: Testing Support
  Short Play Updates: Sellers in Charge
  Closed Long Plays: NBIX
  Closed Short Play: No closed short plays


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


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

  -----------------------
  SPLIT CANDIDATE Updates
  -----------------------

Alliant Techsystems - ATK $86.90 -0.60 Stop: $84.00

Alliant had been holding its own until it lost 34 cents in the
last half hour of trading.  Still, on a day filled with selling,
ATK only lost 60 cents.   For the past five days, ATK has traded
in a relatively tight $3 range on light volume.  A break above $90
on heavy volume would get this stock back on its bullish track,
but a break below $86.50 could be a sign of short-term weakness.

Picked on June 29th at $89.90
Gain since picked:      (3.00)
Earnings Date            N/A (Not Confirmed)




===

ITT Educational Services - ESI $44.90 +1.00  Stop: $41.88

ITT rallied into the close, and finished up $1.  11 more cents
would put the stock above a recent series of relative highs at $45,
and move it on its bullish ways.  We will leave our stop at its
current location to give ITT some room to breath.

Picked on June 12th at $43.70
Gain since picked:       1.20
Earnings Date            N/A (Not Confirmed)





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

  -----------------------
  Closed Split Candidate
  -----------------------

The BISYS Group BSYS $58.82 -1.08  Stop: $58.50

BISYS continued its bearish ways today, losing another $1.05.
Volume continues to pick up, as this stock looks even more
top heavy.  Our stop was hit at $58.50, so we won't be around
for any further declines.

Picked on June 28th at $59.91
Gain since picked:      (1.01)
Earnings Date            N/A (Not Confirmed)





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

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

  --------------
  New Bullish Play
  --------------

Electronic Arts  ERTS $54.38 +1.39 Stop: $50.00

Company Description:
The Redwood City, California-based Electronic Arts is the worlds'
largest publisher of video games.  They have over 100 titles
including the popular John Madden football games, Command & Conquer
and SimCity.  Over half of company revenue comes from games developed
for console systems like the Sony Playstation (41-percent of sales),
the Nintendo N64 and Microsoft's soon to be released xBox.
Electronic Arts also acts as distributor for over 1,000 titles for
3rd party developers.  The company is diversifying its business by
operating a game channel for AOL and by creating its own EA.com
subscription game site.  However, it is the coming war between the
deep pocket game console developers that ought to bring a smile to
ERTS shareholders.

Microsoft has said it will spend $500 million to promote its xBox
console scheduled for release in early November.  You can be
certain the equally flush Sony will respond to protect their
lucrative Playstation franchise and to launch their new
Playstation 2.  As a games developer for all the platforms,
Electronic Arts is in a win-win situation.

Fundamentals:
In the fiscal year ended last March, the firm earned 4-cents per
share on sales of $1.3 billion.  The analysts' consensus forecast
for the current year is for earnings of 61-cents per share on
revenue of $1.6 billion.  They predict the good times will
continue the following year with earnings of $1.48 per share on
revenue of $2.2 billion.  Although the shares sport a high
current P/E of 89 and a forward one of 37 for 2001, the firm's
superior growth rate and recession resistant business model make
the valuation reasonable.

Strategy:
For five consecutive years ERTS shares have increased an average of
25-percent from July 1st to September 30th.  Taking out 1998's
anemic rise of 2-percent and the average becomes 31-percent.  This
makes sense, as this quarter is when retailers stock up for the
holidays.  As a beneficiary of the massive amounts of holiday
advertising in the hotly contested game console market, there is
little reason to think that ERTS sales and shares will not have a
similar rise this year.  As far as an entry point is concerned,
since last April $53 has proven to be a resilient support level and
it held up well last week.  On Friday, the shares went counter to
the bear market and rebounded off of this level on high volume of
2.6 million shares traded.  A good entry point would be following
a confirmation of this bullish breakout with a close above $54.84
on a similar spike in volume.  Our price objective is in the range
of $63 to $67.  To avoid getting whipsawed put we will set a stop
at $50.00.

Picked on July 7th at $54.38
Earnings Date           7/26 (Confirmed)




  ----------------
  New Bearish Play
  ----------------

Qualcomm  - QCOM $58.18 -3.23 Stop: $61.88

Company Description:
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.  The shares recovered somewhat to reach a close of
$63.87 on July 3rd, fueling this boost was news that Qualcomm had
expanded their existing CDMA agreement with Nokia.  And this is how
it goes with Qualcomm shares, every news story of expanded or
delayed CDMA implementations causes wild swings in the stock price.

Fundamentals:
Analysts project the company, which earned $1.05 per share on
sales of $3.2 billion in the fiscal year ended September 2000,
will earn $1.03 in 2001 on sales of $2.8 billion and $1.33 per
share on $3.4 billion in 2002.  This gives the company a forward
2001 P/E of 56.  Fourteen brokers covering the company have a mean
12-month target price of $76.29, specific estimates range from a
high of $100 to a low of $65.

Strategy:
The two-day post holiday market slide has dropped QCOM shares from
a high of $64 to Friday's $58.18 close.  The catalysts were a string
of tech earning warnings that gave an overall bearish hue to the
market.  Also some profit taking when many traders decided that
there wasn't enough in the Nokia agreement to account for a 10-
percent spike in stock price.  Another catalyst may have been
Thursday's announcement by SK Telecom (South Korea) that it was
joining the rising chorus of telecom operators delaying the
implementation of costly third-generation technology.  Taken as a
whole, there was plenty of news to punish the stock.  The strength
of the bearish sentiment was in evidence when the shares broke
though significant support posed by a rising gap from $59.68 to
$61.30 that was created on the Nokia announcement.  An additional
test of the sellers' conviction will be if the shares can break
through support at $57.50 on solid volume.  If it accomplishes this
then a test of additional support at $52.50 is likely with a
possible shot at $48.50.

Picked on July 6th at $58.18
Earnings Date           7/26 (Not Confirmed)





=================
NB Long-Term Play
=================

Great Cash Flow - Great Prospects

During times of economic uncertainty, three key features make a
shares company's attractive to long-term investors.  First is a
defendable franchise - long-term investors love a company that
has established an unassailable market position.  The economy may
tank but McDonald's will still sell hamburgers, we will write
checks to our local utility company and drink Coca-Cola.  Second
is a strong balance sheet - Microsoft shares may react to changes
in economic conditions but with $30 billion in the bank their
business plans and operations are little effected.  The final
feature is failing rivals.  One truism is that the rich get richer.
This is doubly so during economic down turns.  So one feature
long-term investors like to see is when a company has rivals who
are so weak that they are leaving the field in droves.  This
week's selection, ALLTEL Corporation has these desirable features
in spades.

ALLTEL Corporation AT $999.999 on July 6th.

Company Description:
ALLTELL is a wireless and landline telecommunications giant.  The
Little Rock, Arkansas-based firm provides local phone service to
2.5 million customers in 15 states through mostly rural exchanges.
It has approval to provide competitive local-exchange carrier
(CLEC) services in 17 states and does so in 10 of them.  They
provide long-distance service to approximately 1 million customers
and paging services to 500,000.  It also is a big player in
wireless communication with over 6.4 million subscribers in
21 states.

Fundamentals:
Analysts forecast in 2001 the company will earn $2.87 per share
on sales of $7.8 billion and $3.26 on $8.4 billion in 2002.  Last
year, per share earnings were $2.72 on revenue of $7 billion.
This gives the firm a current P/E of 21 and a forward P/E of 19
for 2001.  These are below the industry average P/E of 28
suggesting the shares are undervalued against their peers.  Also
reflecting the company's reasonable valuation is a Price/Earnings
Growth (PEG) ratio of 1.41 (lower is better here).  The industry
average PEG is 2.23 and the average PEG of the S&P 500 is 1.80.
The company paid a quarterly dividend of 33-cent per share in June.
At its upcoming quarterly earnings report on July 27th, the
analysts' consensus estimate is for the firm to earn 71-cents on
sales of $1.9 billion.

Strategy:
The rapid deterioration of rival CLEC's and fiber optic network
carriers has reduced competitive pressures on balance sheet strong
carriers like ALLTEL.  In addition, ALLTEL's strong cash flow will
enable their acquisition minded management to go shopping for under
valued assets that ought to pay off big during an economic recovery.
AT shares have risen from a late April low of $50.01 to a high of
$63.03 earlier last week.  However, a look at the weekly chart
suggests the shares are sitting at a cusp.  Bulls and bears have
each taken their turn this week driving the shares up to $63.03 and
pushing them down to $59.75.  By weeks end the result was little
changed from the $60.75 beginning.  Although this is a solid long-
term play at current price levels, the short-term market dynamics
say that patience may reward with a more advantageous entry point.
Our first indication that the bears are winning the short-term tug-
of-war would be a close below $60 on a spike in volume.  This would
mean there is a likely return to support near $57.50 and a bounce
of off this level would be a good entry point.  If the bulls take
control with a close above $61.75 on a spike in volume, then a test
of resistance between $64 and $67 is the likely scenario and long-
termer's can still jump on the bandwagon at a fundamentally
good price.





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

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

Yahoo! Inc. - YHOO $17.88 -1.31 Stop: $17.25

The market slumped and Yahoo went along.  We placed our stop of
$17.25 just south of support at $17.50.  We are maintaining that
stop as we wait to see if we can catch a rally going into Wednesday's
earnings announcement.  Our long-standing entry recommendation
stands - traders should wait for a break over $21 before taking a
position.  This breakout would confirm bullish momentum and place
resistance levels at $25.94 and $30 square in our sights.  If this
break does not occur, the shares are liable for a pullback.

Picked on June 25th at $19.77
Gain since picked       (1.89)
Earnings Date            7/11 (Not Confirmed)





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

Computer Sciences Corporation CSC $33.36 -0.77 Stop: $35.00 New

Bearish sentiment keeps rising.   We are looking for a close
below $33.15 on solid volume to kick this Bearish selection into
high gear and put it in range of out $30 target.  We came close
on Friday.  We are moving our stop to $35.00.

Picked on June 21st at $35.00
Gain since picked:       1.64
Earnings Date            N/A (Not Confirmed)




===

Automatic Data Processing, Inc. ADP $51.10 -0.59 Stop: $52.90

ADP resumed its bearish move by falling out of congestion on
high volume of 1.4 million shares.  The daily average 1.3
million.  This gives us encouragement that this Bearish selection
is ready to put us back in the black.  We are maintaining our
stop at $52.90.

Picked on June 29th at $49.70
Gain Since Picked       (1.40)
Earnings Date            8/13 (Not Confirmed)




===

Emulex Corporation EMLX $29.06 -6.76  Stop: $35.00 New

Well this turned into one sweet Bearish selction in no time at
all.  We are now up $6.76 per share to date.  Emulex shares were
in a classic topping pattern, then fell hard on the heels of
repeated earning warnings from the tech sector.  The move through
the $30 support level on Friday is significant as it puts $27.50
as the next area of support.  We are going to protect our gains
by moving our stop to the top side of yesterday's gap at $35.00
to keep us from being whip-sawed out of this play.  You may
consider putting in a tighter stop.

Picked on July 5th at $35.82
Gain since picked:     $6.76
Earnings Date           8/02 (Not Confirmed)




===============
NB Closed Plays
===============

  --------------------
  Closed Bullish Plays
  --------------------

Applied Materials - AMAT $45.30 -3.38 Stop: $48.10

A slew of earnings warnings hit late Thursday.  The most damaging
for AMAT shares was semiconductor manufacturer AMD.  This set the
entire chip sector and our Bullish selection on a steep Friday
slide.  The $47.98 open gapped our $48.10 stop so we close this
play at the opening price.

Picked on June 22nd at $49.05
Gain since picked       (1.07)
Earnings Date            8/14 (Not Confirmed)




===

Scientific-Atlantic  - SFA $41.62 -2.39 Stop: $41.50

This one hurts.  Friday's decline, although severe enough to trip
our $41.50 stop was on below average volume.  This leads us to
think the dip will not be severe, and the base the shares have
been building since mid-June will hold.  On a fundamental basis
we still hold these shares are undervalued.  This tempts us to
reduce our stop to $40, but we won't.  We prefer to reevaluate
the shares when this wave of tech selling subsides.

Picked on July 3rd at $44.45
Gain since picked      (2.95)
Earnings Date           7/19 (Confirmed)




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

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

  --------------
  New Long Plays
  --------------

Nasdaq-100 Series Trust - QQQ $41.65 -1.80 Stop: $40.00

Company Description:
The QQQ's are a pooled investment designed to emulate the results
of the Nasdaq-100 Index ($NDX).  This index contains the 100
largest companies in the Nasdaq Composite according to their market
capitalization.  As of the end of last year, the composition by
sector was: Technology (75.33-percent), Health Care (9.78-percent),
Communication Services (5.36-percent), Consumer Cyclicals (3.98-
percent), Consumer Staples (3.17-percent) and Basic Materials
(0.23-percent).  The 10 largest companies as of the end of last
year were: Cisco (6.36-percent of index), Microsoft (5.15-percent),
Qualcomm (4.80-percent), Intel (4.59-percent), Oracle
(4.39-percent), Sun (2.56-percent), JDS Uniphase (2.53-percent),
Veritas (2.27-percent), Siebel (2.27-percent) and Amgen
(1.99-percent).  Buying shares of the QQQ's, in effect enables
the holder to participate in the fortunes of 100 large companies.
In contrast to mutual funds, the QQQ's trade on the Nasdaq in the
same manner as the shares of any Nasdaq company.  Since the QQQ's
are tied to the tech laden Nasdaq 100, they are a good vehicle for
investors who want to take advantage of the current slump in
technology stocks, yet minimize the risks associated with owning a
particular company.

Strategy:

After an extended slumping market a rise in government bond yields
are giving us indications that the major money managers are building
cash to go stock shopping.  For a fuller explanation and analysis of
how we are coming to this conclusion read the weekend Market Wrap
prepared by our master market analyst Jeff Bailey.  For the impatient,
 the short version is this - bonds act as passbook savings accounts
for large money managers.  When the market slumps they sell stocks
and use the money to buy bonds, when they are optimistic about
stocks they raise cash by selling bonds.  One way to predict if the
big money boys are buying or selling bonds, hence getting ready to
sell or buy stocks, is to check the yield of bonds.  If they are
selling bonds, the yield (think interest rate) of bonds has to go
up to attract new buyers.  So, if the major money managers are
building a pile of cash to go equity shopping, often the yield of
bonds goes up.  We are currently experiencing a significant rise
in bond yields, even as the equity markets are dropping.  This
leads us to believe money managers are getting liquid.  As Jeff
describes in the Market Wrap, if the yield on the 30-year bond
goes over 5.8 from its current 5.75, we believe this signifies
enough cash is sitting on the sidelines that a major positive move
in the stock market is highly likely within the next two weeks.
The next few days should tell the tale as far as yields are
concerned.  One way to play that pop is by buying the QQQ's.
However, traders should wait for the yield in the 30-year bond
to exceed 5.8 before taking a position, otherwise we are not
getting the confirmation we need.  Because we are adding this
to our play list before this confirmation, we are instituting a
stop at $40.

Picked on July 6th at $41.65
Earnings Date           N/A (Confirmed)




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

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

Corning GLW $15.13 -0.32 Stop: $14.50

Corning sold off in the first hour of trading, but slowly tried
to recoup its losses throughout the day.  When it was all said
and done, GLW lost 32 cents.  It did come within inches of
triggering our stop, but the intra-day rebound offers some signs
of strength.

Picked on June 28th at $15.80
Gain since picked:      -0.67
Earnings Date            N/A (Not Confirmed)




===

Intuitive Surgical ISRG $13.21 -0.14 Stop: $12.90

ISRG continues to consolidate just above $13 on light volume.
The fact that we weren't stopped out while the rest of the market
tanked hints that this stock wants to move higher.  We just need
the market to cooperate.

Picked on June 17th at $11.05
Gain since picked:      +2.16
Earnings Date            N/A (Not Confirmed)




===

Schuler Homes, Inc. SHLR $14.55 +0.15 Stop: $11.94

It was only a 15-cent gain, but a gain is gain today.  $15.25
remains overhead resistance and the 50-day moving average should
offer near-term support.

Picked on June 25th at $13.57
Gain since picked:       0.98
Earnings Date            N/A (Not Confirmed)




===

Tenet Healthcare THC $50.01 unchanged  Stop: 49.75

Investors are holding out for the earnings announcement.  At
least that's one explanation for THC stock's amazing resilience
given the Dow and NASDAQ's declines this week.  THC hasn't been
immune but the stock is only down 1.60 from last Friday's close.
CBSMarketwatch had a glowing article on Tenet Healthcare with
Andrew Heyward, an analyst at Wells Fargo.  He said he doesn't see
any potential problems that might cause THC to suffer over the
next several quarters.  In June THC said they would beat consensus
estimates of 61 cents a share.  This has probably given bullish
investors hope that the future really is bright for THC.  One
word of caution.  The CBSMarketWatch article mentioned that THC
was due to report earnings next week.  Other news sources don't
have THC due to report until July 25th.  Be careful.  If they
announce earnings and have any negativity in their conference
call shares could pull back sharply despite a good quarter.  For
the immediate future, $50 is the key.  If the stock can hold then
we're probably safe.  Otherwise the next support level is about
$47.50.

Picked on June 17th at $51.09
Gain since picked:      -1.08
Earnings Date            7/25 (Not Confirmed)




---

ViroPharma VPHM $28.51 -1.49  Stop: $27.50

The stock's price finally breaks out of a downward trend.  We
begin to think the company's products might have promise so we
make a decision to make it a long play.  That's when company
management decides now is the time to offer up to $300 million in
stock and/or debt securities and warrants for "general corporate
purposes".  We weren't the only ones who didn't appreciate the news
as the stock has bled over 9% since the announcement.  Yet to be
fair the  NASDAQ has lost 6% in the same time so VPHM's move has
probably been exacerbated by the market's broader decline.  Our
dollar plus gain has become a dollar plus loss.  Watch this one
closely as the stock should (we repeat should) have support at
$28.00 thus our stop is at 27.50.

Picked on June 22nd at $29.94
Gain since picked:      -1.43
Earnings Date            N/A (Not Confirmed)





  ------------------
  Short Play Updates
  ------------------

Qlogic - QLGC $49.91 -7.46  Stop: 53.00 *new*

QLGC suffered a mauling today as investors sold shares in a host
of tech stocks after EMC's earnings warning.  Qlogic's shares
gapped open and fell from there.  The stock has a lot of support
at the $50 level and the price began to gravitate toward this
level late in the afternoon.  More than one bull is probably
concerned that it failed to close over the magic $50 mark but
despite the negative implications we're going to tighten our
stop to 53.00 which is just north of the 50-dma at 52.15.

Picked on July 2nd at $62.53
Gain since picked:    +12.62
Earnings Date          N/A (Not Confirmed)




===

AstroPower - APWR $48.13 -0.46  Stop: 50.50 *new*

With almost a 1% lost today, shares of APWR actually made a late
day recovery.  News has been quiet since we picked this one in
Thursday's newsletter.  Bears were hoping that shares of APWR
might continue to fall once they traded under the 50-dma at
47.57 but the late day buying mentioned above put the stock about
half a point above it.  Since the trade is moving our direction
albeit slowly we're going to tighten our stop to 50.50 which is
just over the high of July 3rd's 50.45.

Picked on July 5th at $48.59
Gain since picked:    + 0.46
Earnings Date          7/31/01 (Not Confirmed)




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

  -----------------
  Closed Long Plays
  -----------------

Neurocrine Biosciences - NBIX $36.60 -0.90 Stop:36.00

Due to no fault of its own, shares of NBIX have dropped from a
high near $40 last Friday to a low of 35.72 today.  This has
been the work of the sudden and perilous drop in the Biotech
index (BTK).  In the last three days the BTK fell from 610 to
a low on Friday of 553 (its 100-dma).  The index completely
blew past strong support at 570 probably catching many by
surprise.  While some analyst argue that the group may be
oversold in the short-term we're still stopped out of our play
in NBIX.  The good news, if there is good news, is that NBIX
held up rather well compared to sector mates ABGX, AMGN, and
IDPH.

Picked on June 29th at $39.99
Gain since picked       (3.99)
Earnings Date            N/A





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

PremierInvestor.net Newsletter         Weekend Edition 07-07-2001
                                                   Section 3 of 3
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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In section three:

Expected/Likely Split Announcements For The Coming Week
New Split Candidates: ADRX and BBOX
Market Watch for Week of July 9th - 13th:
   - Major Earnings
   - Board of Directors Meetings
   - Stock Splits
   - Economic Reports

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


=======================================================
Expected/Likely Split Announcements For The Coming Week
=======================================================
                                    Date Expected
Symbol         Company              To Announce*
=================================================

IFIN       Investors Financial Serv     7/10
PDII       Professional Detailing       7/11
MTG        MGIC Investment Corp         7/12
WTSLA      The Wet Seal                 7/13

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

IFIN - Investors Financial Services

Last April, this financial services holding company increased
their authorized shares to 100 million, setting the company up
for a future stock split. Previous splits have been announced the
last two consecutive years when stock prices were at $60 and $85,
therefore, with the stock currently within that range we could
look forward to the company's third split with their next
earnings release on or about July 10.

chart = 


PDII - Professional Detailing Inc.

PDII provides sales and marketing services to the pharmaceutical
industry. Shareholders will be meeting on July 11 to vote on
increasing the company's authorized shares, giving us a strong
indication that the Board of Directors may have a stock split in
mind. Current stock prices have reached important psychological
split levels, providing additional fodder for our sentiment. Look
to the July 11 meeting as a possible trigger.

chart = 


MTG - MGIC Investment Corporation

This current split candidate is set to release earnings on July
12 so we wanted to give you a "heads up" for a possible
announcement at that time.  Prices have retraced slightly from
the June 27 52-week high of $77.31, but is still within a good
range for a split.  The stock is currently nestled right in the
middle of where the last two 2:1 announcements were given,
between the price range of $60 - $80. There are 300 million
shares authorized and 107 million outstanding.

chart = 


WTSLA - The Wet Seal

On June 13, The Wet Seal Board announced its plans for
implementing a 3-for-2 stock split upon shareholder approval to
increase the number of authorized shares.  The company recently
filed a proxy with the SEC further stating intentions to declare
the stock split "immediately" following the vote. The date for
the Special Shareholder meeting is July 13.

chart = 



=======================================
New Split Candidates to add to the List
=======================================

New Split Candidates


ADRX - Andrx Group

We are adding this healthcare stock to our candidates list as it
continues to climb back from this year's lows, gradually entering
historical split territory. Fundamentally strong, ADRX has a
recent history of bullish revenue growth and has beat earnings
estimates for the last 2 quarters. The median price target is
$96.50.  The Company has 69.8 million shares outstanding with 100
million authorized, so we would expect ADRX to increase its
authorized shares at some point. The Board announced stock splits
the last two consecutive years at $87 and $96 respectively.
Upcoming events include the earnings release at the end of July,
plus a shareholders meeting scheduled for July 30.

chart = 


BBOX - Black Box Corporation

Established in 1997, Black Box is the world's largest technical
services company. Fundamentally, the Company ranks in the top 10
percent of the market, with plenty of cash available for current
debt. The Board has yet to declare a stock split, however, at
current levels we are keeping BBOX on our radar.  There are
currently 19.6 million shares outstanding with 100 million
authorized, providing plenty of room for a 2:1 announcement. The
next earnings release date has not been determined by the
company, but there is a board of directors meeting slated for
August 7 which could prove to be a trigger event for the
company's first split.

chart = 


==================================================
Market Watch for the week of June 25th - June 29th
==================================================

  ------------------------
  Major Earnings This Week
  ------------------------

Symbol   Company           Date         EPS Est   Comment

BMET     BIOMET            Mon, JUL 09  0.33      Before the Bell
SWY      SAFEWAY           Mon, JUL 09  0.63      Before the Bell
AMB      AMB PROPERTY      Mon, JUL 09  0.61      After the Close
ARGY     ARGOSY EDUCATION  Mon, JUL 09  0.16      After the Close
INFY     INFOSYS TECH      Mon, JUL 09  0.29      After the Close
FVB      FIRST VA BANKS    Mon, JUL 09  0.77      ----- n/a -----
RI       RUBY TUESDAY      Mon, JUL 09  0.26      ----- n/a -----

EGR      EARTHGRAINS       Tue, JUL 10  0.31      Before the Bell
DCLK     DOUBLECLICK       Tue, JUL 10 -0.08      After the Close
IFIN     INVSTRS FINANCIAL Tue, JUL 10  0.34      After the Close
ISCA     INT'L SPEEDWAY    Tue, JUL 10  0.25      ----- n/a -----
RATL     RATIONAL SOFTWARE Tue, JUL 10  0.07      ----- n/a -----
SGR      SHAW GROUP        Tue, JUL 10  0.40      ----- n/a -----
TRMK     TRUSTMARK CORP    Tue, JUL 10  0.39      ----- n/a -----

BLK      BLACKROCK INC     Wed, JUL 11  0.40      Before the Bell
MOT      MOTOROLA INC      Wed, JUL 11 -0.12      Before the Bell
FAST     FASTENAL CO       Wed, JUL 11  0.50      Before the Bell
PBG      PEPSI BOTTLING    Wed, JUL 11  0.66      Before the Bell
WWW      WOLVERINE WW I    Wed, JUL 11  0.20      Before the Bell
DNA      GENENTECH INC     Wed, JUL 11  0.19      After the Close
HDI      HARLEY-DAVIDSON   Wed, JUL 11  0.35      After the Close
MCAF     MCAFEE.COM CL A   Wed, JUL 11  0.00      After the Close
AEIS     ADV ENER INDS     Wed, JUL 11 -0.09      After the Close
NMTC     NUMERICAL TECHS   Wed, JUL 11  0.01      After the Close
RBAK     REDBACK NETWRKS   Wed, JUL 11 -0.27      After the Close
SONS     SONUS NETWORKS    Wed, JUL 11  0.00      After the Close
YHOO     YAHOO!            Wed, JUL 11  0.00      After the Close
ARA      ARACRUZ           Wed, JUL 11  0.19      ----- n/a -----
DORL     DORAL FINL        Wed, JUL 11  0.62      ----- n/a -----
RAD      RITE AID CORP     Wed, JUL 11 -0.19      ----- n/a -----

ABT      Abbott Labs       Thu, JUL 12  0.45      Before the Bell
RDC      Rowan Companies   Thu, JUL 12  0.37      Before the Bell
AVX      AVX Corporation   Thu, JUL 12  0.17      Before the Bell
BRO      Brown & Brown     Thu, JUL 12  0.33      Before the Bell
DOL      Dole Food         Thu, JUL 12  0.90      Before the Bell
FDC      First Data        Thu, JUL 12  0.59      Before the Bell
INFS     InFocus           Thu, JUL 12  0.21      Before the Bell
MAR      Marriott Intl     Thu, JUL 12  0.50      Before the Bell
MI       Marshall & Ilsley Thu, JUL 12  0.88      Before the Bell
MTG      MGIC Investments  Thu, JUL 12  1.41      Before the Bell
AMD      Advanced Micro    Thu, JUL 12  0.27      After the Close
OZRK     Bank of Ozarks    Thu, JUL 12  0.47      After the Close
BRE      BRE Properties    Thu, JUL 12  0.69      After the Close
PNW      Pinnacle West     Thu, JUL 12  1.13      After the Close
PWAV     Powerwave Tech    Thu, JUL 12 -0.08      After the Close
RMBS     Rambus            Thu, JUL 12  0.04      After the Close
EFII     Elctroncs/Imaging Thu, JUL 12  0.24      After the Close
EYE      VISX              Thu, JUL 12  0.21      After the Close
JNPR     Juniper Networks  Thu, JUL 12  0.08      ----- n/a -----
NFB      North Fork Banc   Thu, JUL 12  0.47      ----- n/a -----
SPOT     PanAmSat          Thu, JUL 12  0.00      ----- n/a -----
ENE      Enron             Thu, JUL 12  0.42      ----- n/a -----
HIB      Hibernia Corp     Thu, JUL 12  0.33      ----- n/a -----
HCBK     Hudson City Banc  Thu, JUL 12  0.30      ----- n/a -----
DJ       Dow Jones         Thu, JUL 12  0.47      ----- n/a -----
SSP      E.W. Scripps      Thu, JUL 12  0.53      ----- n/a -----
CUM      Cummins Inc.      Thu, JUL 12  0.03      ----- n/a -----
RSAS     RSA Security      Thu, JUL 12  0.18      ----- n/a -----
SMTF     SmartForce        Thu, JUL 12  0.05      ----- n/a -----
TXI      Texas Industries  Thu, JUL 12  0.04      ----- n/a -----
ACTU     Actuate Corp      Thu, JUL 12  0.03      ----- n/a -----
ADX      Adams Express     Thu, JUL 12  N/A       ----- n/a -----

NXY      Nexen             Fri, JUL 13  n/a       Before the Bell
XMSR     XM Satllte Radio  Fri, JUL 13 -1.22      After the Close
ALS      Alstom SA         Fri, JUL 13  n/a       ----- n/a -----
NAUT     Nautica           Fri, JUL 13  0.09      ----- n/a --

  ------------------------------------
  Board of Director Meetings This Week
  ------------------------------------

Symbol     Company                 Date

EMN        Eastman Chemical        07/09
GSBI       Granite St. Bankshares  07/09
ARA        Aracruz Celulose        07/10
CNBKA      Century BanCorp         07/10
FTSP       First Team Sports       07/10
HTCO       Hickory Tech Corp       07/10
INFY       Infosys Tech            07/10
NJR        New Jersey Resources    07/10
SGR        Shaw Group              07/10
SYI        SY Bancorp              07/10
TROY       Troy Group              07/10
TRMK       Trustmark               07/10
AEIS       Advanced Energy         07/11
ALTH       Allos Therapeutics      07/11
BTJ        Bolt Technology         07/11
HOFF       Horizon Offshore        07/11
PFSL       Pocahontas Bancorp      07/11
WAIN       Wainwright Bank         07/11
SHLM       A Schulman              07/12
ADX        Adams Express           07/12
CL         Colgate-Palmolive       07/12
DOW        Dow Chemical            07/12
EME        Emcor Group             07/12
FFLC       FFLC Bancorp            07/12
GSLA       GS FNCL Products        07/12
HBHC       Hancock Holding         07/12
HCBK       Hudson City Bancorp     07/12
IMPV       ImproveNet              07/12
INDB       Independent Bank Corp   07/12
JAKK       JAKKS Pacific           07/12
LECO       Lincoln Electric        07/12
PEO        Petroleum & Res         07/12
PAYX       Paychex                 07/12
VALU       Value Line              07/12
INVX       Innovex                 07/13
NXY        Nexen                   07/13


  -------------------------------
  Upcoming Stock Splits This Week
  -------------------------------

Symbol  Company Name                  Payable Date      Ratio

HOC  - Holly Corp                     07/06/2001        2:1
FLGS - Flagstar Bancorp               07/12/2001        3:2
RAVN - Raven Industries               07/13/2001        3:2
XOM  - Exxon Mobil Corp               07/18/2001        2:1
KG   - King Pharmaceuticals           07/19/2001        4:3
TRH  - Transatlantic Holdings         07/20/2001        3:2
UOPX - University of Phoenix          07/20/2001        3:2
TARO - Taro Pharmaceutical            07/26/2001        2:1
MSCC - Microsemi Corp                 PENDING           2:1


  --------------------------
  Economic Reports This Week
  --------------------------

In contrast to recent trading weeks, economic data will take a
back seat to corporate earnings, which return in full force in the
coming week.  Nonetheless, upcoming reports, such as Monday's
Consumer Credit Report, will hint at current economic strength, or
lack thereof.


Date                             Forecast      Previous

Monday, 07/09/01
Consumer Credit        May           $9.4        $13.9B


Tuesday, 07/10/01
Wholesale Inventories  May            0.0%         0.3%


Wednesday, 07/11/01
Initial Claims         7/7            391K         399K
Export Prices ex-ag.   Jun             N/A        -0.3%
Import Prices ex-oil   Jun             N/A        -0.2%
Oil/Gas Inventories    7/6             N/A        310.7



Thursday, 07/12/01
Chain Store Sales      Jun             N/A          1.6%
Jobless Claims         7/7             N/A          399K
Import/Export Prices   Jun             N/A          0.3%


Friday, 07/13/01
PPI                    Jun            -0.1%         0.1%
Core PPI               Jun             0.1%         0.2%
Retail Sales           Jun             0.2%         0.1%
Retail Sales ex-auto   Jun             0.2%         0.3%
Mich Sentiment-Prel    Jul             93.0         92.6


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