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Daily Newsletter, Wednesday, 07/11/2001

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PremierInvestor.net Newsletter                 Wednesday 07-11-2001
                                                    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: Will the market be convinced?
Market Sentiment: Rock Paper Transports 
Play-of-the-Day: ERTS - Not Playing Games Here 
Watch List: Four out of Five in the Green!

-----------------------------------------------------------------
U.S. Market Numbers
-----------------------------------------------------------------
MARKET WRAP  (view in courier font for table alignment)
-----------------------------------------------------------------
        07-11-2001        High      Low     Volume Advance/Decline
DJIA    10241.02 + 65.38 10274.02 10120.89 1.38 bln   1341/1747	
NASDAQ   1972.04 +  9.25  1975.79  1934.67 1.73 bln   1550/2168
S&P 100   607.01 -  1.78   610.95   601.05   totals   2891/3915
S&P 500  1180.18 -  1.34  1184.93  1168.46           42.5%/57.5%
RUS 2000  475.83 -  2.31   478.14   471.36
DJ TRANS 2819.79 + 44.10  2825.04  2773.84
VIX        26.98 +  0.45    28.21    26367
Put/Call Ratio      0.74
-----------------------------------------------------------------


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

Will the market be convinced? by Jeff Bailey

Will today's late breaking news from Microsoft (NASDAQ:MSFT) and 
its good news that revenues will exceed the markets expectations 
be enough to drive stocks higher and create a prolonged rally?  
Many investors have gotten gun shy in recent months as stocks 
just haven't been able to hold the higher ground.  Tomorrow could 
be a key day.  I think the good news from Microsoft is going to 
be help, but what takes place in the bond market is going to be 
most important.

At this point, the MARKET has the ability to put a real hurt on 
bearish stock traders.  Last week I thought the biggest threat to 
a bearish trader was bond YIELDS and the potential selling of 
bonds.  That type of action would free up a lot of cash that 
could then be put to work in stocks.

Sure, there's little question that shares of Microsoft (MSFT) are 
going to surge, but is it enough to drive other stocks higher?  I 
still believe the answer will be found in the bond market.  The 
question isn't necessarily "Will the good news from MSFT drive 
stocks higher."  In my mind, the question should be, "Will the 
good news from MSFT be enough to get the MARKET to sell bonds?"

Tomorrow, if I see stocks jump higher at the open of trading, but 
see bond YIELDS just sitting there, then I will begin to question 
the prolonged capability of any type of market rally.  If on the 
other hand, I see a good round of selling and see the 30-year 
bond YIELD ($TYX.X) break the 5.775%-5.8% level, then I would 
trade bullish with some conviction.

Tomorrow, the smart trader will be watching bond YIELDS closely.  
If he/she sees selling in bonds and YIELDS rise they will begin 
implementing bullish positions on a disciplines basis.  Remember, 
we have some retail sales numbers that are due out tomorrow.  I 
do feel the bond market will be more concerned with the state of 
the consumer than it will be with revenues at Microsoft.

I'll regret saying this, but I feel that the bond market is much 
smarter than the stock market.  Heck, I'm the first to admit that 
I am not an active bond trader.  I've got some in my retirement 
account, but I chose what type of bond or bond mutual fund to be 
invested in at various times of a market cycle.

The reason I've always felt the bond market is smarter that the 
stock market is this.  The bond market is only concerned with 
were interest rates are going to be in the future.  The only 
reason bond YIELDS rise is due to "fear" of economic growth 
and/or inflation.

Is today's good news from Microsoft company specific, or is it a 
general statement that the economy is starting to do better and 
Microsoft just happens to be at the head of the proverbial food 
chain?  I think we'll find the answer in the bond market and be 
able to trade with some confidence as things unfold.

30-year Treasury YIELD Chart - 0.25 box size



The supply demand chart of the 30-year YIELD (TYX.X) still gives 
hopes to equity bulls.  Subscribers that may have been reading my 
commentary over the past year have learned that stocks usually 
follow the direction of YIELD.  Stock traders that have attended 
some of my seminars on point and figure charting understand what 
is going on in the above chart, but I'll try and review what a 
bullish equity trader wants to see take place in the next couple 
of trading sessions.

The longer-term upward trend as indicated by the bullish support 
(blue +) is upward trending and the recent test of this trend at 
55.75 (5.575%) held.  The past week or so we've seen this bond 
YILED pull back and stocks have certainly followed.  I would 
argue that the recent bad news in the markets have cause some 
market participants to run back into the bond market with their 
cash and stocks have suffered the consequences.

However, an equity bear (on that is short stocks) is certainly 
aware that if bond YIELS reverse higher (I've put in some pink 
X's on the chart) then that equity bear gets the distinct feeling 
that cash is being freed up from the bond market, and now he/she 
has some competition.  Yes, very much the old supply/demand 
theory at work here.

If we see bond YIELDS turn higher tomorrow and get some 
aggressive selling in the bond market look for equity bears to 
get aggressive with their covering.

At the same time, the good news from MSFT should bring in some 
bullish money.  Together, the two could create a VERY BIG rally 
for stocks.  The way to NOT GET "DUPED" is to keep an eye on the 
bond market!

If you're short this market, you are also watching bond YIELDS 
carefully.  DON'T try and stick your head in the sand if a stock 
is moving against you and you're seeing selling in bonds!  Don't 
get the false sense of security that "this won't last."  Stay 
disciplined!

Just remember that the NASDAQ Composite is down more than 50% 
from its highs.  You don't want to get blown up and holding a 
bunch of bearish positions when you could be playing the long 
side.  When you entered the bearish trade, you set a stop.  This 
was a predefined level of risk you were willing to take when you 
entered the trade.


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

Rock Paper Transports by Jeffrey Canavan

Based on today's performance, sexy sectors like gold, paper 
products, and transports were the only the only places to be 
long.  Rock beats transports, and nuggets of gold were the best 
stocks, up 2.91%.  Gold looks like it has a little bit of upside 
potential, but all of these groups are starting to look a little 
overbought from a bullish percent standpoint.

Paper may cover rock, but Microsoft crushes all.  The software 
behemoth announced that fourth quarter revenues will top 
estimates, and most of techland should benefit tomorrow.  Adding 
to the bullish ecstasy was Yahoo and Motorola, both of whom 
posted better than expected earnings.  Internet and cell phone 
stocks should prosper, but Motorola did warn about slowing 
semiconductor sales, so that sector may be hurt slightly.  If the 
triple Qs $2.00 gain in after hours trading is any gauge, we 
should be in for a good day tomorrow. 

How long the Microsoft euphoria will last remains to be seen.  
Bounce, rally, or perhaps Nasdaq 6000?  Before we get ahead of 
ourselves, we must first overcome the technical damage that has 
been done in recent days.  Even closing on a strong note tomorrow 
could be a challenge.  One day at a time.

*************************Sector Watch****************************

            Weekly   Daily      Overbought   Support  Resistance 
            Trend    Trend      Oversold                         

DJIA        Bearish  Bearish    Neutral       10,200   10,500
NASD        Bearish  Bearish    Oversold       1,940    2,000
S&P 500     Bearish  Bearish    Neutral        1,170    1,200
Rus 2000    Neutral  Bearish    Oversold         465      485

Semis       Bearish  Bearish    Oversold         525      585
Biotech     Neutral  Bearish    Netural          510      550
Internet    Neutral  Bearish    Oversold         160      186
Networking  Bearish  Bearish    Oversold         300      365
Software    Neutral  Bearish    Neutral          188      210
Banking     Bullish  Neutral    Overbought       625      650
Retail      Bearish  Bearish    Neutral          815      850
Drugs       Bearish  Neutral    Oversold         375      400


                 Percent Change
            Last      Last       Last     Relative Strength
           5 Days    10 Days    30 Days      vs S&P 500
DJIA        (3.1%)    (2.2%)     (7.2%)       Negative
NASD        (7.9%)    (4.5%)     (9.4%)       Neutral
S&P 500     (4.4%)    (3.0%)     (6.9%)          N/A
Rus 2000    (4.2%)    (3.1%)     (5.3%)       Positive

Semis      (13.3%)    (8.6%)    (11.0%)       Negative
Biotech    (12.6%)    (8.8%)    (12.8%)       Negative
Internet   (12.1%)   (10.4%)    (24.1%)       Negative
Networking (14.0%)    (8.2%)    (29.2%)       Negative
Software   (11.4%)    (9.9%)    (12.9%)       Neutral
Banking     (3.7%)    (2.1%)     (3.1%)       Positive
Retail      (3.9%)    (3.7%)     (7.1%)       Negative
Drugs       (0.8%)    (2.7%)     (5.2%)       Positive

*****************************************************************


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

Electronic Arts - ERTS Close:$53.93 Change:+2.92 Stop:$50.00

Original Comments When Selection on July 7th:

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.

Updated Comments:
This Bullish selection still looks good.  ERTS share rebounded 
sharply off of critical support at $51.00.  A move past $54.86 on 
strong volume would confirm a bullish reversal out of recent 
congestion.  This leaves intact our scenario for a repeat of the 
historical July to September rally for shares of this games 
publisher.  We have a short-term target of $58 and an intermediate 
target in the range of $63 to $67.  We are also maintaining our 
stop at $50.00. 
     
Picked on July 7th at $54.38
Gain since picked      (0.45)
Earnings Date           7/26 (Confirmed)




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

America Online - AOL close: $48.50 change: -1.68

WHY WE LIKE IT:  Post-market news could herald a change in 
investor sentiment for AOL.  After losing 3.34 percent today, 
shares of AOL could reverse course.  YHOO's earnings announcement
after the close prompted a bullish response when they beat 
estimates by a penny and posted a profit for the quarter.  This 
could help spur excitement for AOL's own earnings announcement
expected next Wednesday on July 18th.  However, even bigger than
YHOO's surprise was MSFT's news.  The fact that MSFT pre-announced
that they would have a good quarter is great.  But MSFT's statement
that they would allow computer manufacturers some "flexibility" 
about what software they bundle with Windows was a major victory 
for AOL who has been battling MSFT on a number of issues.

POTENTIAL TRIGGER EVENT:  Shares of AOL fell to an intraday low
of $47.63 which was a clean bounce off of support in the form
of its 200 & 100-dma's.  Technically the stock should have 
resistance at $50 but today's after hours news could fuel enough
buyers to easily push it over this level.  A close over $50 would
be our potential trigger to go long.  Overhead resistance would
then rest between $55 and $57.50.




---

Cabletron Systems - CS close: $22.50 change: +0.59

WHY WE LIKE IT:  There appears to be some positive sentiment
towards Cabletron's plans to break itself up.  Currently, CS
has four operating subsidiaries - Aprisma, Enterasys, Riverstone
and GNTS.  After the break up, expected by the end of the month,
there will only be Riverstone and Enterasys.  Current shareholders
of CS will receive 1.02 shares of Riverstone and 2 shares of 
Enterasys (new symbol will be ETS).  

POTENTIAL TRIGGER EVENT:  The trigger point for this play is 
pretty simple.  If shares of CS can close above resistance at
$23 then the bulls should have the green light.  Since this is
a short term trading strategy we would exit the play before 
the planned break up on Aug. 6th.




---

Altera Corporation - ALTR close: $28.91 change: +1.92

WHY WE LIKE IT:  Altera produces programmable logic devices or
PLDs.  This is part of the semiconductor industry, which was one
of the few sectors that closed positive today (SOX $557.97 +15.56).
If the chips are coming back then ALTR could be one to watch. 

POTENTIAL TRIGGER EVENT:  Shares of ALTR have been stuck in a
wide range for months.  However, the stock has been creating a
very long, drawn out pennant formation with lower highs and 
higher lows (since about early April).  We would like to see
shares close strongly over resistance at $30.  This would put it
above the down trending line of lower highs and above its
200-dma of 28.93.  For the more conservative one could wait for
a close over $30.75 which would be the highest closing price
since Feb. 15th, 2001.




---

Taro Pharmaceutical Industries - TARO close: $83.26 change: +2.10

WHY WE LIKE IT:  Here is one drug stock that is bucking the trend
in its sector.  TARO primarily manufactures, markets and distributes
OTC and prescription drugs in the U.S.  Currently, TARO has a 2:1
stock split payable on July 26th which just so happens to be the
same day they are expected to announce earnings.  This double-
whammy could continue to spur excite for investors up to the 26th.

POTENTIAL TRIGGER EVENT:  The stock has had an amazing run.  You 
could have purchased shares of TARO for less than $20 just last 
October.  The stock hit resistance at $90 on June 29th and again
on July 1st.  Charts will show you the share price suffered some
profit taking but its trying to build new support around $80.  
Those looking for a short-term trade might consider a run up to 
$90 if shares close over $84.  You might even look for a dip tomorrow
as everyone goes crazy over tech issues.  More conservative traders
can consider a play if the shares close over $90.  Take this one
word of caution.  Get out before the July 26th earnings announcement
and 2:1 stock split.  You don't want to be a victim of "sell the news"
once these two events pass.




---

THQ Inc - THQI close: $58.00 change: +0.97

WHY WE LIKE IT:  Several analyst believe that the electronic game
industry, while having a great run so far, still has plenty of
room to go.  If you believe that then pay attention to THQ Inc.
The Company publishes titles for Sony's PlayStation and 
PlayStation 2, Nintendo 64, Nintendo Game Boy Color and personal 
computers.  Indeed, if the gaming sector has seen the same move
that shares of THQI have seen then it has been a good year.
Mid-December of 2000 you could have bought shares of THQI for
only $18.00.  We can expect earnings for THQI on Thursday, July
19th next week.

POTENTIAL TRIGGER EVENT:  The stock has been consolidating under
resistance at $60 for about four weeks now.  We're starting to
see higher lows and if shares can close above $60 and stay there
then we might actually see an earnings run.





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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.


PremierInvestor.net Newsletter                 Wednesday 07-11-2001
                                                    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/3512_2.asp
=================================================================

In section two:

Split Trader
  Split Announcements: Alliance Gaming - ALLY
  New Plays: No new ST plays
  Play Updates: No new updates for ST 
  Closed Plays: ESI - Getting an Education

Net Bulls
  New Plays: IBM Corporation - IBM (Bullish)
  Play Updates: No new updates for NB
  Closed Plays: Yahoo - YHOO

Stock Bottom / Active Trader
  New Plays:  PATH - Year Long Bull Run Continues (Bullish)
  Play Updates: No new updates for SB / AT
  Closed Plays: Intuitive Surgical - ISRG


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

===================
Split Announcements
===================

Las Vegas Gaming Company Announces 2-for-1 Stock Split

During regular trading today, the Board of Directors of Alliance 
Gaming Corp. (Nasdaq:ALLY) declared a 2-for-1 stock split on its 
common shares. The additional shares are payable on August 20 and 
the stock is expected to trade on a split-adjusted basis on 
August 21. There are currently 11 million shares outstanding, 6 
million in the float, and 50 million shares authorized. 

Alliance also stated today that on August 16 it would announce 
earnings for fiscal year ended June 30, 2001. The Company is 
expecting to earn approximately $2.21 per share (pre-split).

ALLY shares opened at $31 today, down from the previous close of 
$32.43.  Trading is currently at $32.15 on very heavy volume of 
1.5 million shares; the average 3-month volume is 289.5 thousand. 

About the Company:

Alliance Gaming is a diversified gaming company with headquarters 
in Las Vegas. The company is engaged in the design, manufacture, 
distribution and operation of advanced gaming devices and systems 
worldwide, is the nation's largest gaming machine route operator, 
and owns and operates two casinos.

 



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

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

ITT Educational Services ESI Close:$43.30 Change:-0.85  Stop:$41.88

ITT shares have been banging against resistance at $45.  On 
Wednesday, the shares banged off hard and ran over our stop in the 
process.  There is hope for longs.  After reaching the session low 
of $41.00, the shares rebounded strongly.  Unfortunately the general 
market may decide the next direction of ESI shares.  If the general 
market finds its legs, it may assist this play back to its feet and 
set up another test of $45, otherwise the shares could bust through 
$42.50 and stay there.
	
Picked on June 12th at $43.70
Gain since picked:      (1.20)
Earnings Date            7/19 (Not Confirmed)





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

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

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

IBM Corporation - IBM Close:$103.85 Change:+1.89 Stop:$99.00

Company Description:
International Business Machines is the largest technology company 
in the world.  It touts itself as a form of one-stop shop for 
computer technology.  It sells a wide variety of computer 
hardware, system and application software, and services.  Big Blue 
is so large, diversified and entrenched in the world's corporate 
hallways, that it has been considered one of the more defensive 
plays in the tech sector.  Over 60-percent of company revenue 
comes from outside the domestic market where the economy has been 
stable.  Investors also like IBM because of their successful 
expansion into e-business and the low valuation of the shares.  
In a cost cutting move, the company recently announced the layoff 
of 1,500 workers from their Global Services unit 

Fundamentals:
For the 2000 fiscal year the company's net income increased 
5-percent to $8.07 billion on a 1-percent jump in revenue to 
$88.4 billion.  Analysts expect company earnings to rise from 
$4.44 in 2000 to $4.83 in 2001 and $5.45 in 2002.  This gives 
IBM shares a low current P/E of 22 and a forward P/E of 19.

Strategy:
For long-time IBM shareholders $100 has been a magic share price.  
This level has proven to be formidable resistance as the shares 
rise and strong support on a downswing.  With Wednesday's close of 
$103.85 the shares are approaching this level once more.  This sets 
up a low risk to reward play for long investors.  Conservative 
investors know that they can move into a solid tech play with 
protection from a nearby historically important level of support.  
The upside looks good.  Strong above average volume on Wednesday 
of 89 million shares traded (the average is 69 million) suggests 
the shares have enough momentum to make short work of resistance at 
the 200-day moving average of $104.66.  Once past this level, the 
next areas of resistance are at $109 and $112.50.  We see a 
reasonable target price range as being between $112 and $116.  We 
are setting our initial stop to $99, which is just below the before 
mentioned magic number.

Picked on July 11th $103.85
Earnings Date          7/18 (Not Confirmed)





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

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

Yahoo! Inc. - YHOO  Close:$17.03 Change:-0.80 Stop:$17.25

We were concerned the anemic earnings report from web advertising 
broker Doubleclick (NASD:DCLK) might stop out our advertising 
dependant Bullish selection.  That is exactly what happened as 
Yahoo shares gapped down at the open past our $17.25 stop.  This 
kept us from enjoying the after market reaction to the positive 
Yahoo earnings report.  We closed the play at the opening price of $16.94.

Picked on June 25th at $19.77
Gain since picked       (2.83)
Earnings Date            7/11 (Not Confirmed)
 




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

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

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

AmeriPath - PATH Close:$30.95 Change:+0.58 Stop:$27.00

Company Description:
AmeriPath contracts with more than 200 hospitals to manage their 
anatomic pathology practices in some 20 states.  Over 400 
pathologists in AmeriPath's network diagnose diseases by examining 
cells and tissues.  The work is performed in hospitals and outpatient 
laboratories.  PATH operates more than 40 outpatient labs that 
account for some 40-percent of sales.  The company manages the non-
medical aspects of the practices, including payroll, staffing, 
supply, financial reporting, and administration.  AmeriPath 
continues to develop its regional network of practices through 
acquisitions.  They currently have 49 practices in 21 states.

Fundamentals:
Higher physician compensation and a $7.1 million merger expense 
combined to drop income 47-percent in the first three months of the 
year to $3.2 million.  But do not be fooled, this company has a 
strong fundamental picture.  Revenue in the same period jumped 32-
percent to $98.7 million.  After earning $1.16 per share on revenue 
of $330 million last year, analysts expect the company to earn $1.40 
per share on sales of $400 million in the current 2001 fiscal year.  
 Next year the company is projected to earn $1.65 per share on sales 
of $445 million.  This gives the shares a current P/E of 26 and a 
forward 2001 P/E of 22.  These numbers are low in comparison to the 
industry average P/E of 38 and inline with a 2001 earnings growth 
rate of 23-percent.

Strategy:
These shares have been on a rally climbing 342-percent since May of 
2000.  On Tuesday the share pushed north once more when they closed 
above resistance at $30 on a solid spike in volume.  Wednesday 
confirmed the Bullish momentum when the shares gain 58-cents and 
closed at the session high establishing a new 52-week closing high.  
We have a target price of $36.  Former resistance at $30 has now 
become downside support with additional strong support at $28.  We 
are starting out with a stop of $27.
     
Picked on July 11th at $30.95
Earnings Date            7/31 (Not Confirmed)





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

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

Intuitive Surgical - ISRG Close:$13.00 Gain:-0.76 Stop:$12.90

ISRG dipped below support at $13.00 and knocked off our tight 
$12.90 stop.  We close this Bullish play with a $1.85 per share 
gain.   

Picked on June 17th at $11.05
Gain since picked:       1.85
Earnings Date            7/26





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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

*****************************************************************
ADVERTISING INFORMATION

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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.
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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.

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Littleton, CO 80163

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