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Daily Newsletter, Friday, 08/10/2001

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PremierInvestor.net Newsletter          Weekend Edition 08-10-2001
                                                    section 1 of 3
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In section one:

Market Wrap: My bias disclosed
Market Sentiment: Half and Half 
Play-of-the-Day: General Dynamics Corp - GD (Bullish)
Watch List: If The Dow Makes a Run - Be Ready.


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------------------------------------------------------------------
U.S. Market Numbers
------------------------------------------------------------------
MARKET WRAP  (view in courier font for table alignment)
------------------------------------------------------------------
        WE 8-10           WE 8-3          WE 7-27          WE 7-20
DOW    10416.25 - 96.53 10512.78 + 96.11 10416.67 -159.98  + 37.59
Nasdaq  1956.47 -109.86  2066.33 + 36.60  2029.73 +   .36  - 55.42
S&P-100  611.41 - 12.24   623.65 +  3.39   620.26 -  5.33  -  1.26
S&P-500 1190.16 - 24.19  1214.35 +  8.42  1205.93 -  4.92  -  4.83
W5000  10994.45 -248.49 11242.94 + 76.94 11166.00 - 46.37  - 59.55
RUT      475.52 - 11.63   487.15 +  2.13   485.02 -  2.91  -  2.78
TRAN    2860.77 - 53.25  2914.02 +  4.14  2909.88 - 55.78  + 25.31
VIX       22.81 +   .42    22.39 -  2.34    24.73 -   .24  +  1.10
Put/Call    .72              .76              .47              
------------------------------------------------------------------

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

My bias disclosed by Jeff Bailey

On Monday I will miss what I feel could be one of the most 
exciting and profitable trading days in recent weeks.  The 
direction I am uncertain about, but it should not matter as I 
will enter Monday's trading with a bias.

My bias going into Monday is that software stocks will trade 
lower and that Semiconductor stocks will trade higher.  The rate 
of change (up or down) will only be affected by broader market 
direction.

The two stocks that I would be looking to trade is PeopleSoft 
(NASDAQ:PSFT) short/put and Vitesse Semiconductor (NASDAQ:VTSS) 
long/call.  Here are the reasons why.

Let's start with the software sector as depicted by the GSTI 
Software Index (GSO.X) and PeopleSoft (NASDAQ:PSFT).

GSTI Software Index - last seven months



I call it rolling retracement.  Recently I had to "roll down" my 
retracement bracket on the GSO.X as the index broke recent 
relative lows and I needed to try and figure out just what in the 
heck a market maker is doing with software stocks he makes a 
market in.  I anchored retracement to $244.69, then "fit" the 
38.2% retracement under a relative low (July 11th at $191.35 
seemed smart as the GSO.X did an about face higher from that 
level so there had to be buyers there).  Once that $191.35 level 
was violated to the downside, it makes sense to me that market 
makers began taking a defensive posture toward software stocks as 
sellers outnumbered buyers and a market maker carrying bullish 
inventory now had risk to the rolled down 50% retracement level 
of $174.88.  Hey!  That's pretty close to where the GSO.X found 
some support today!  That makes sense.  If a market maker played 
defense at $191.35 on the break of that level, then that means he 
probably sold strength on the rally back above $191.35 (about 8 
days).  When he "sold strength" he could have been getting rid of 
some bullish inventory and at the same time shorted some stock at 
or above $191.35.  Today, some of that stock he shorted at 
$191.35 was bought back.  Good thing he was short, because there 
were a lot of sellers today in the software stocks!  Oracle 
(NASDAQ:ORCL) traded down 5.19% and traded 61.7 million shares.  
How could a market maker provide liquidity for that amount of 
stock if he didn't already have a big short position?  What do 
you think could happen Monday if the GSO.X breaks below 50% 
retracement at 174.88 and closes there?  If I'm a market maker, 
I'm thinking my next downside level of risk is 61.8% retracement 
near the $158 level.  This is how a market maker controls his 
risk in his/her inventory.  What could cause this type of 
decline?  BEA Systems is scheduled to report earnings on Tuesday 
after the bell and some analysts think the company will guide 
lower in their conference call.  Since BEAS hit a 52-week low 
today and traded down 8.5%, I figure the market already knows the 
bad news there.  But that sets up an opportunity for "bad news" 
in the software group to perhaps create a catalyst for another 
downward move.  Should the GSO.X break below the $174 level on 
Monday, I can use that as a hint of further weakness coming.

Perhaps Tuesday's new bearish play in PeopleSoft (NASDAQ:PSFT) at 
$42.38 is starting to make sense with the stock finishing today 
at $38.84 (-4.59%)!  Check this out, and this is what to be 
looking for on Monday, Tuesday and then Wednesday morning after 
the BEAS earnings.

PeopleSoft Chart - last 10 months



I love the correlation set up between retracement on the GSO.X 
and what we saw take place in shares of PSFT today.  If my 
earlier "scenario" of market makers recently getting short some 
software stocks on the breaking of retracement in the GSO.X, then 
subscribers that took Tuesday's profiled short in PSFT are 
looking good and are right in the thick of things.  What traders 
want to see Monday or Tuesday is a break below the 38.2% 
retracement level of $38.24 in PSFT and a break below the 50% 
retracement of $174 in the GSO.X.  If they both happen 
approximately the same time, then the trader really gets the 
feeling he's in there with the market makers and playing their 
game.  If you're thinking like a market maker and you think the 
downside in the GSO.X short-term is $158, then we can correlate 
that type of thinking with some levels in PSFT.

Right now, a trader that is short PSFT at $42-$38 is targeting 
$34.31 as a potential market maker support level.  If that is 
broken to the downside, then upward trend near $32 might serve as 
support.  If that is broken then the $30.37 level might get 
tested.  Regardless, a trader that is short from $42-$38 might 
look like a big cat, wearing a smile, and yellow canary feathers 
protruding from the sides of his mouth.  It's never over until 
the trade is closed for a profit.  Right now, I'd have my stop 
set at break-even for the trade.  Traders still looking for a 
good short candidate can still take action on a break below 
today's low of $38.12.  If the GSO.X breaks first, then all the 
better.  Simply looks for PSFT to then confirm that move in the 
GSO.X with a break of its own.

How to close the trade.  Stops should be honored and not 
questioned.  The only question remaining is how do I lock in my 
profit?  My answer to that is simple.  Don't get greedy and try 
to "sell early."  If you would be happy with locking in a gain on 
a break to the $34.31 level, then immediately buy back your short 
if the stock trades that level.  

If you are short 300 shares and the stock trades near $34.31, 
think about doing this.  Cover 100 shares near $34.31.  Then put 
a stop on the remaining 200 shares at $38.24 (previous stop was 
$42, so don't forget to cancel that old order)  If the stock 
trades at upward trend near $32, buy back another 100 shares at 
$32.  Once that is done, cancel the previous stop order on the 
remaining 100 shares, and replace that order with a stop order to 
buy back the last 100 shares at 50% retracement of $34.31.  If 
the stock trades $30.71 before your stop is hit, then cancel the 
stop order and buy back the last 100 shares short.  Your done and 
you didn't have to guess where to lock in a profit.  It was all 
very systematic and there was no guesswork involved.  You let the 
stock do all the work for you and the market made all the 
decisions.

Does this sound stupid?  Hopefully not.  It is very much the 
systematic way a market maker controls his inventory.  He does it 
with levels.

Now, the previous example used for 300 shares was just that.  An 
example of how to trade a position.  Some traders only trade 100 
shares and that is fine.  If the commissions don't eat you up, 
you could split 100 shares in lots of 33.  If you traded or are 
going to trade 1,000 shares you can use the same systematic 
approach.  Always try and lock in some type of profit early 
though.  I love the trade set up for a coming move lower in PSFT, 
but I have no way of knowing for certain that the scenario 
outlined above will come to fruition.  If it does, then fantastic 
and we all have a plan in place, levels identified and we're set 
to go on Monday.  Let the stock tell you what to do.  Have a 
great weekend.

You will be in the very capable hands of Jeff Canavan and Jon 
Farnlof on Monday.  Monday morning, Mr. Canavan will talk about 
the bullish trade setup in the semiconductors and Vitesse 
Semiconductor (NASDAQ:VTSS).  We'll be using the exact type of 
retracement techniques used above.  You will be amazed why the 
semiconductors acted the way they did today and why a trader will 
want to go into the session with a bullish bias.  Should the 
broader market trade higher on Monday, then I'm thinking this 
group could be the standout.

Final note.  Always try to enter a trading day with a bullish and 
bearish trading scenario.  That way, regardless of market 
direction, you will have some type of plan in place to make 
money.  Heck, sometimes a very good plan and scenario even works 
regardless of market direction.  Why was PSFT down 4.59% today, 
even though the NASDAQ Composite was down just fractionally and 
the GSO.X was down just 2.67%?  I'm not sure I need to know as 
long as I'm trading levels and constantly monitoring the 
risk/reward against those levels.  It's always nice to know "why" 
something is happening.  Unfortunately, once the news has been 
made public, the bulk of the move has usually been realized.  
Time will tell, but hopefully you can use some of the techniques 
shown above to your advantage in other trades you're looking at.

Have a great weekend!


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

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In response to overwhelming request for more how-to info 
on day trading, Austin Passamonte has revised and enhanced 
his previous web cast seminar. 

Included are more:
-specific entry points
-specific exit points
-trade management tactics for stocks, options and e-mini futures

More charts, more specifics, more advanced info for those 
who seek the fine points of trading frequent, profitable 
moves in your favorite market


Tuesday - August 14th, 8:00 pm PST 
Austin will be giving an updated presentation of 
"Optimize Your Day Trading Skills."

Click here to sign up or for more information:
http://www.premierinvestorseminars.com/onlineseminars/austin081401.asp

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


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

Half and Half by Jeffrey Canavan

Lower than expected wholesale prices were enough to spark a nice 
gain in the Dow, but a software sell off stumped the Nasdaq.

Dow Jones Industrial Average Daily Chart



After a morning sell off, the Dow mounted the kind of rally that 
was needed to validate yesterdays' hammer as a possible turning 
point, thanks primarily to cyclical stocks.  Should cyclical 
stocks be able to power the Dow higher, 10,600 would be the most 
optimistic short-term target.  Before than target can be hit, the 
Dow is going to have to fight through the May downtrend and 38.2% 
retracement level.  The failure of the Nasdaq to finish in 
positive territory also casts a shadow of doubt on the Dow's 
ability to move higher.  Watch out for a head fake similar to one 
on June 28th.

Nasdaq Composite Daily Chart



The situation looked pretty grim for the Nasdaq this morning when 
it took out July 11th low, but was able to rally on the strength 
of semiconductors.  With just enough buyers coming in to stave 
off a sell off, the Nasdaq formed yet another doji.  The Nasdaq 
is still oversold and due for a bounce, but software stocks could 
limit the amount of the bounce.

Software Index Daily Chart



Goldman Sachs cut their earnings estimates for Oracle and Siebel 
on Friday, and added that the software business is likely to 
worsen.  CSFB also came out and reduced estimates on BEA Systems 
due to a deteriorating backlog, economic assumptions, and their 
exposure to Europe.  With software stocks declining on heavy 
volume today, it doesn't bode well for BEA Systems earnings 
announcement on Tuesday.  Using the Jeff Bailey fitted 
retracement, keep an eye on the 174 level for the Software Index 
(GSO.X).  

Technically we look ready for a bounce, but a few downgrades, 
poor earnings announcements, or weak economic reports could force 
nervous bulls to sell.  Bears still look to have the most risk, 
but the bulls upside is limited.  With the upside for the major 
indices falling into the 2% to 7% range, any profits over 10% in 
stocks are gold these days. 

As always, keep an eye bonds.  For the week ending August 8th, 
Trim Tabs reported $2.5 billion in outflows for equity funds, 
compared to outflows of $500 million the previous week.  Bond 
funds on the other hand had $900 million in inflows this week, 
and $1.3 billion in inflows last week.  

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

Market Volatility

The VXN is stuck at 48, and the VIX continues to reside in the 22 
to 23 area.

VIX   22.81
VXN   48.52

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

          Put/Call Ratio  Call Volume   Put Volume
Total           .72        521,369       377,091
Equity Only     .66        440,333       292,002
OEX             .68         25,184        17,141
QQQ             .59         60,052        35,709

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Bullish Percent Data

           Current   Change   Status
NYSE          34       -      Bear Confirmed
NASDAQ-100    50       -      Bull Alert
DOW           36       -      Bull Alert
S&P 500       54       -      Bull Confirmed  

Readings above 70 are considered overbought, and readings below 
30 are considered oversold.

Bull Confirmed  - Aggressively long
Bull Alert      - Cautiously long
Bull Correction - pause or pullback in upward trend
Bear Alert      - Take defensive action if long
Bear Confirmed  - High risk if long, good conditions for shorting
Bear Correction - Pause or rebound in downtrend

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

 5-Day Arms Index  0.94
10-Day Arms Index  1.15 
21-Day Arms Index  1.15
55-Day Arms Index  1.08

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      1915           1158
NASDAQ    1678           1878

        New Highs      New Lows
NYSE      166             41
NASDAQ     65             98

The NYSE has gained the upper hand in both advance/decline, and 
new highs/new lows.

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

Advisory Sentiment 

Bullish  Bearish  Correction   Net   Change 
  52.6%    23.7%     23.7%    28.9%   -0.4%

A bearish reading of 25% to 30%, combined with a bullish reading 
greater than 55% is typically considered bearish by contrairians.  
A net percentage greater than 30% is also viewed as bearish. 

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

Commitments Of Traders Report: 08/07/01
Weekly COT report discloses positions held by small specs
and commercial traders of index futures contracts at the 
Chicago Mercantile Exchange and Chicago Board of Trade. COT data 
can be found at www.cftc.gov.

Small specs are the general trading public with commercials being 
financial institutions. Commercials are historically on the 
correct side of future trend changes while small specs tend 
to be wrong.  

S&P 500
The net bearish position of commercial traders increased slightly, 
but that was the result of more long positions being dumped than 
short positions, and not a significant amount of new shorts being 
added.  The % of Open Interest for small traders is at bullish 
levels similar to February and March.

Commercials   Long      Short      Net     % Of OI 
7/24/01      317,241   392,146   (74,905)   (10.56%)
7/31/01      335,532   409,352   (73,820)   ( 9.91%)
8/07/01      331,881   406,210   (74,329)   (10.07%)


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
7/24/01      141,372     61,665   79,717     39.26%
7/31/01      129,648     54,552   75,096     40.77%
8/07/01      128,454     53,191   75,263     41.43%

Most bearish reading of the year:  36,513 - 5/01/01
Most bullish reading of the year:  91,122 - 3/06/01
 
NASDAQ-100
Commercial traders added a few long positions and dropped a few 
shorts, but the most encouraging sign is the fact that small 
traders are starting to give up hope.
 
Commercials   Long      Short      Net     % of OI 
7/24/01       27,396     39,198   (11,802)  (17.72%)
7/31/01       28,009     39,613   (11,604)  (17.16%)
8/07/01       28,867     38,956   (10,089)  (14.88%)

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
7/24/01       12,170     7,744    4,426      22.23%
7/31/01       11,216     8,938    2,278      11.30%
8/07/01        9,715     8,098    1,617       9.08%

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

DOW JONES INDUSTRIAL
Commercials continue to get slightly more bullish, small traders 
continue to get more bearish.

Commercials   Long      Short      Net     % of OI
7/24/01       16,080    12,812    3,268     11.3%
7/31/01       17,748    13,669    4,079     13.0% 
8/07/01       18,644    13,733    4,911     15.2%

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     % of OI
7/24/01        5,599     9,526    (3,927)   (25.96%)
7/31/01        5,049     9,079    (4,030)   (28.52%)
8/07/01        4,841     9,909    (5,068)   (34.36%)

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)
=========================

General Dynamics Corp - GD Close:$85.08 Change:+1.23 Stop:$79.00

Original Comments When Selected on August 9th:

Company Description:
Falls Church, Virginia-based defense manufacturer operates in four 
primary areas: marine (warships and nuclear submarines), aerospace 
(business jets), information systems and technology (command and 
control systems), and combat systems (tanks and amphibious assault 
vehicles).  Almost 60-percent of its revenue comes from the US 
government, and it is the largest shipbuilder for the US Navy.  The 
company's Bath Iron Works subsidiary builds the Navy's class DDG 51 
destroyers.  Another subsidiary, Electric Boat, builds Seawolf 
class attack subs.  The company's Land Systems subsidiary builds 
the M1 series tank.  GD has been focusing on its commercial 
aircraft and defense-related electronics operations, but it's also 
expanding into munitions for tanks and other weapons systems.  The 
company has announced a tender offer good through August 17th of 22 
million shares for rival Newport News Shipbuilding (NNS).  This 
equates to approximately $2.1 billion, or 10 times operating 
earnings.

Fundamentals: 
Analysts forecast the firm will earn $4.56 per share on sales of 
$11.9 billion and $5.17 on $12.5 billion in 2002.  Last year, the 
company earned $4.03 on $10.4 billion.  This gives the company a 
current P/E of 20.8 and a forward 2001 one of 18.  This is inline 
with the industry average P/E of 20.  Other fundamental industry 
comparisons are gross profit margin (company: 23.89-percent, 
industry: 19.48-percent), return on equity (24.4-percent, 4-
percent), price/sales ratio (1.55, 0.89), price/book ratio (4.18, 
2.58), price/cash flow ratio (14.42, 11.65) and debt/equity 
ratio(0.28, 0.87).   

Why We Like It: 
This defense monster has one of the best balance sheets in the 
industry and strong cash flow.  The shares have been consolidating 
just short of resistance at $84 in a range of roughly $84 to 
$81.50.  On Thursday, the shares put in a strong day from the 
opening bell through to the close with nary a dip in-between.  
Volume spiked from 595k on Wednesday to 920k on Thursday.  This is 
consistent with other recent bullish indications; as the shares 
have consolidated, on down days volume has been consistently lower 
than on up days.  Taken as a whole, it looks as if the bulls are 
gearing up for another run at besting $84.  Conservative traders 
can wait for a close above $85 before taking a position.  Our 
longer-term price objective is $95; intermediate resistance is at 
$88.00.  We will begin with a stop at $79. 

Updated Comments:
All systems are go.  We are prepared for launch.  Okay, so we're
having a little fun with the bullish trend on GD's chart but the 
picture does indeed look promising.  Shares gapped up today after
SG Cowen upgraded the stock to a "buy" from "neutral" and offering
a $100 price target (which happens to be $5 above our own target).
The broker felt that GD's recent contract wins and their recently
announced bid to buy Motorola's IIS division all look like a 
strong winning streak.  Cowen maybe right.  GD has recently won
a $200 million piece of the NSA $2 billion GROUNDBREAKER project
as well as a few smaller contracts.  The IIS Group from Motorola
will be immediately enhance GD's earnings and improve their 
communications systems operations.  Volume remained slightly above
average and the close over $85 is positive for Monday's trading.
Patient investors might be awarded a potential entry point at
a bounce back to $84 but closing above $85 is still an attractive
buy signal.  If our stop at $79 is too far away for your liking
consider one at 81.50 or even 83.00.  Just remember you risk 
being swung out on any intraday volatility.

Picked on August 8th @ $  83.85
Gain since picked:      +  1.23
Earnings Date:         10/17/01 (not confirmed)





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

Kulicke and Soffa - KLIC - close: 14.60 change: -0.36

WHAT TO WATCH:  Shares of KLIC have been in a trading range for
months.  Friday's trading saw the stock bounce off of support at
$14, support at the 200-dma and the bottom of this four month
long trading range.  KLIC is offering a nice risk reward ratio
if you're interested in trying to play the trip back up to the 
top of the channel.  Our short-term price objective would be
$18.25 if the channel holds.




---

Johnson and Johnson - JNJ - close: 55.02 change: +1.16

WHAT TO WATCH:  The Drug sector has been suffering its own bout
of consolidation after trying to breakout over the 400 level at
the end of July.  Buyers might be stepping back in as illustrated 
by Friday's nice gain.  Shares of JNJ have been consolidating 
between $52 and $54 since July 25th.  This last week has shown
a bullish trend of higher lows and Friday saw shares breakout
above $54.  Now the next test is $55, which was resistance for
the stock four days in a row back in mid-July.  Keep your eyes
open for a bounce off $54 again or a close above $55.




---

General Electric - GE - close: 42.57 change: +0.67

WHAT TO WATCH:  For years, people have looked to GE as a proxy 
for the market wrapped up in one stock.  What's interesting is
that GE has actually been weighing down the DJIA since it broke
down a few weeks ago.  Hopefully, that might be changing.  GE
has been basing between $41 and $43 for the last six days.  
Investors should be watching GE for a potential turnaround if it 
closes over $43 or a new leg down if it breaks through $41.  
Whatever the case the trip will likely be slow and bumpy with 
different levels of support and resistance existing in both 
directions every couple of dollars.




---

Office Depot - ODP - close: 12.00 change: -0.06

WHAT TO WATCH:  You may not be able to tell by the chart (or
even some of the charts of its competitors) but our in-house
analysts think this little industry group may be under accumulation.
ODP rocketed up a couple of weeks ago and after failing to break
through resistance at $13 we are seeing some consolidation as
traders take some gains and new buyers search for an entry point.
This will be one you should look at every couple of days for 
the rest of the month.  Why?  We are interesting in seeing an 
established base for a potential long play.  It's quite possible
shares come all the way back to 10.50 to fill the gap but that
wouldn't be very bullish then would it.




---

Tyco Intl Ltd - TYC - close: 53.77 change: +0.40

WHAT TO WATCH:  Here is another stock for bullish investors to 
keep an eye on.  Shares of Tyco have made a beautiful, if not
slow, 50% retracement from the big run up it saw over the 
April-May surge.  The end of the retracement occurred around the 
middle of July and now the stock is slowly building a bullish 
wedge with a steady diet of higher lows.  Resistance is pretty 
solid at $54 which is bolstered by the stock's 200-dma.  However,
by looking at the coiling wedge on TYC a breakout could come any 
day now.  





-------------------------
-- Continuing to Watch --
-------------------------

Some stocks on the Watch List will be carried over from one day
to the next if they continue to show potential but have not yet
breached the trigger point.  Some stocks have met our conditions 
for a trigger point but other factors hold us back from making it
a full-time stock pick.

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

Check Point - CHKP - close: 39.20 change: -1.31

UPDATE: Shares have fallen under support at $40 while the software
sector continues to deteriorate.  The GSO broke down under 180
and there have been recent negative reports by major brokerages.

Thursday, August 9th's write up:

WHAT TO WATCH:  With the GSO software index hovering at support
near 180 and shares of CHKP hovering at $40 the stock could go
either way.  If the NASDAQ rallies up, then CHKP could trade up
to $45/$46.  If the NASDAQ breaks down then CHKP could drop to
$35 again.  Not a bad move either way if you can catch it.




---

Qwest Comm. - Q - close: 24.77 change: +0.48

UPDATE: The stock continues to build a base just under resistance
at $25.  If you're interested in the sector or stock the potential
breakout could be one to watch.

Thursday, August 9th's write up:

WHAT TO WATCH:  Investors should be looking for a close over $25.
You upward target depends on how much you believe in the company's
fundamentals.  Many analysts feel that the sell-off in Qwest 
shares are way overdone.  From the end of April, shares have 
fallen from almost $42 to $23 just a few days ago.  One possible
culprit was a sell-off in rival Global Crossing (GX).  Last week
GX announced they would be forced to slash their own growth
outlooks.  In contrast Qwest just confirmed their own growth
outlook for 2002 two days ago (Reuters).  We feel that we might
be looking at a potential bottom in Q so it's worth keeping an
eye on the stock over the next few days (market permitting).




---

Intl. Business Machines - IBM - close: 104.95 change: +0.87

UPDATE: The stock rallied after bouncing (again) at support
of $103.  The stock managed to close above its 200-dma.  If
the Dow can tack on a few more gains we might see IBM trade
110 soon.

Thursday, August 9th's write up:

WHAT TO WATCH:  Yet another stock teetering on support, IBM 
bounced off support at $103 for the sixth time since the middle
of July.  Today marked the fifth down day in a row for the stock
and its second day under its 200-dma (104.36).  The broader
market will be the key but whatever direction IBM decides to go
traders could see several points.  Upper resistance is at $110
while short-term support is scattered between 103 and 100.  
However, below 100 the stock could fall to 95 or 90.





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is possible at this or some subsequent date, the editors and
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PremierInvestor.net Newsletter          Weekend Edition 08-10-2001
                                                    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
=================================================================
To view this email newsletter in HTML format with imbedded
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In section two:

Split Trader
  New Plays: None
  Play Updates, GD, SSP
  Closed Plays: Sterling Banc. - SBIB

Net Bulls
  New Plays: Vitesse Semiconductor - VTSS (Bullish)
  Long Term Play:  1-800-Flowers.com - FLWS  
  Bullish Play Updates: eBay Inc - EBAY 
  Bearish Play Updates: SPOT, PSFT
  Closed Bullish Plays: Microsoft - MSFT

Stock Bottom / Active Trader
  New Plays: PepsiCo, Inc. - PEP (Bullish)
  Bullish Play Updates: NEM, RAIL, 
  Bearish Play Updates:.BZH, CHV, RIG
  Closed Bullish Plays: Gannett GCI


! Attention PremierInvestor.net readers.  
 
We will be password protecting the PremierInvestor.net website on
Monday, August 13th, 2001.   Please be advised that you will need to 
use your username and password to access a large portion of the website.
 
Everyone should have a username and password from a previous 
subscription to SplitTrader, NetBulls or StockBottom.com.  Or if you're
new to the club, when you signed up for your free trial we delivered a
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If you don't remember your username/password combo our staff will
be ready to help.  You can email us at login@PremierInvestor.net or
you can call our customer service at 303-797-0200.
 
Thank you, PI staff.


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

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

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

General Dynamics - GD - close: 85.08 change: +1.23 stop: 79.00

All systems are go.  We are prepared for launch.  Okay, so we're
having a little fun with the bullish trend on GD's chart but the 
picture does indeed look promising.  Shares gapped up today after
SG Cowen upgraded the stock to a "buy" from "neutral" and offering
a $100 price target (which happens to be $5 above our own target).
The broker felt that GD's recent contract wins and their recently
announced bid to buy Motorola's IIS division all look like a 
strong winning streak.  Cowen maybe right.  GD has recently won
a $200 million piece of the NSA $2 billion GROUNDBREAKER project
as well as a few smaller contracts.  The IIS Group from Motorola
will be immediately enhance GD's earnings and improve their 
communications systems operations.  Volume remained slightly above
average and the close over $85 is positive for Monday's trading.
Patient investors might be awarded a potential entry point at
a bounce back to $84 but closing above $85 is still an attractive
buy signal.  If our stop at $79 is too far away for your liking
consider one at 81.50 or even 83.00.  Just remember you risk 
being swung out on any intraday volatility.

Picked on August 8th @ $  83.85
Gain since picked:      +  1.23
Earnings Date:         10/17/01 (not confirmed)




---

E W Scripps - SSP - close: 71.27 change: +1.03 stop: 69.00 

It's about time!  After several days of sideways trading at the
$70 level we're finally starting to see some upward movement.
Volume was slightly above average, which was surprising for one
of the few remaining summer Fridays.  Buyers may finally feel 
a little confidence with the late day turnaround in the Dow.
New comers can still look for entry points on any bounce at 
70 or 70.50 but now that it's above 71 the stock is in 
blue sky territory.  We've got a tight stop on at 69.00 to 
limit our potential loss.

Picked on August 2nd @ $  70.21
Gain since picked:      +  1.06
Earnings Date:          7/12/01 





  -----------------------
  ST Closed Play
  -----------------------

Sterling Banc. - SBIB - close: 21.85 change: +0.01 stop: 21.35 

Shares of SBIB may be traded on the NASDAQ but all the action was
on the NYSE today or more specifically in the DJIA.  The triple
digit loss on the Dow sent the banking sector falling but the mid-
day reversal for the index gave SBIB investors enough faith to 
bring the stock back to even before the close.  The intraday low
for SBIB was just under its 20-dma (20.77).  We were stopped out
at 21.35 for a small loss.  If you like the looks of this stock
and believe it can keep running into its stock split payable
date (Sept. 19th) then keep this on your list.  The 20-dma appears
to be the lower end of its trading range and strong support.  
The top of its trading range is closer to $23/$23.50.

Picked on August 7th @ $  22.09
Gain since picked:      -  0.74
Earnings Date:             N/A  





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

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

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

Vitesse Semiconductor - VTSS Close:$19.25 Change:+0.03 Stop: $17.00 

Company Description:
Vitesse is one of the largest manufacturers of high-speed gallium 
arsenide (GaAs) integrated circuits.  Although these are harder to 
make than silicon chips, they run at much  higher speeds.  Vitesse's 
chips are primarily used in communications and automated test 
equipment, with almost 90-percent of sales to makers of high-speed 
communications and networking equipment such as Lucent , Alcatel, 
Cisco, Ericsson, Sun Microsystems, NEC and IBM.  No client accounts 
for more than 10-percent of revenue.  About three-fourths of 
Vitesse's sales are in the US. The company has acquired Orologic 
(data packet processing chips) and SiTera (network processing 
hardware and software).

Fundamentals: 
Analysts forecasts the firm will earn 19-cents per share in the 
fiscal year ending on September 2001 on sales of $466 million.  
They forecast a loss of 15-cents per share on sales of $466 million 
in 2002.  Last year they earned 67-cents per share on sales of $442 
million.  The company has a strong balance sheet with $808 million 
in cash and a debt/capitalization percentage of 19-percent.

Why We Like It: 
Last week's long-term play becomes this week's active selection.  
Investors are mixed as to whether the chip sector has seen a bottom. 
A week ago traders were bidding up chip stocks due to comments from 
Merrill Lynch and Wit Soundview saying the bottom was in, this week 
the stocks dipped due to a Cisco earnings report with little sign of 
a bottom.   The most recent weakness has driven the VTSS stock back 
down with support nearby in the $18 to $17 range.  This sets up a 
play with a low risk/reward ratio.  Friday's slight gain in VTSS 
stock and in the Philadelphia Semiconductor Index (SOX) suggests the 
chips are getting ready to rebound off this support area.   Should 
this occur, the path is clear for a test of the first area of 
resistance at the $23.00 level.  This would represent a 19-percent 
gain.  If the shares can clear this we have a $30.50 price 
objective.  If they can't, a stop at $17.00 will assist to limit 
damage.  Look for any follow-up strength on Monday to present a good 
entry point.  If the shares weaken, a dip to $18.00 would also 
present an attractive entry.

Picked on August 10th at $19.25
Earnings Date              N/A (Not Confirmed)





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

1-800-Flowers.com - FLWS  August 10th Close:$12.98 Change:+0.22 

Company Description:
1-800-flowers.com is the one of the largest multi-channel sellers 
of retail flowers in the country.  The Westbury, New York-based 
firm is best known for its Internet franchise, yet it also has 120 
retail outlets in metro New York and Los Angeles, distributes 50 
million catalogs a year and operates the 1,500 florist strong 
BloomNet network.   Although the company still takes more orders by 
phone then through the Internet, the web side is growing fast.  It 
has strategic relationships with AOL, Amazon, Excite and Microsoft 
Network.  This is clearly not your typical dot-bomb.  Although the 
company is not profitable, it intends to become so next year.  In 
the meantime it has a low-cash burn rate and over $82 million in 
the bank.  Long-term debt is also low at $12.3 million.  

Fundamentals: 
The company reports its fourth-quarter and fiscal 2001 results on 
August 16th.  Analysts expect the company to report a quarterly 
loss of 4-cents per share on revenue of $135 million.  In the same 
period last year the company lost 31-cents on revenue of $85 
million.  For the year, analysts forecast the company will report a 
loss of 57-cents per share on sales of $448 million and 23-cents on 
sales of $514 million in 2002.  For the fiscal year ended June 
2000, the company lost $1.10 per share on sales of $385 million.   

Why We Like It: 
Flowers along with travel are turning into big Web hits.  One of 
the reasons is that customers were already comfortable with phone 
orders and the web was an easy transition.  Research firm Jupiter 
Media Metrix estimates that $600 million of flowers will be ordered 
over the web this year and this number will almost triple to $1.6 
billion by 2006.  With a solid business model, 1-800-flowers.com 
has established itself as the clear Internet leader.  In 
recognition of the company's prospects and execution, investors 
have driven the shares up 471-percent from $2.27 on November 13th.  
We have a 12-month price target of $25.  





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

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

eBay Inc - EBAY - close: 61.09 change: -1.75 stop: 59.00

Hmmm... did we mention a possible pull back for eBay?  We really
weren't expecting it so soon but that's the way it goes.  It will
likely continue to "go" this way if the NASDAQ doesn't pick 
itself up and do something about this string of losses.  Friday
was the sixth down day in a row.  So - did you buy on the dip?
If you're adventurous enough to play EBAY then jumping in on
Friday may have been a good bet.  With a stop at 59.00 we can
really try to limit any potential loss.  Personally, we'd would
prefer to see a strong move up on Monday to confirm this bounce 
at support.  If you're a short-term trader looking to grab a 
few points and get out then this may be your ticket.  If EBAY 
remains in this channel then we're likely to see shares trade up 
to $65/$66 again.  If bulls can push through $65 with any gas then 
we might even see $70.

Picked on August 9th @ $62.84
Gain since picked:     - 1.75
Earnings Date:           N/A  




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

PanAmSat Corp. - SPOT - close: 33.16 change: +0.78 stop: 34.00

Caution!  Bearish stock play not acting very bearish.  SPOT 
posted its second positive day in a row.  Additionally, its
MACD is about to illustrate a bullish crossover.  This is not
looking good for the shorts.  We would not recommend any new
short positions at this time until we started to see some
confirmation.  Resistance at $33.50 is still intact but buyers
must be trying to step in ahead of any decision by the gov't
to approve a takeover of GMH by EchoStar or News Corp.  Both
companies want GMH's DirecTV unit.  Repeat, wait for 
confirmation.

Picked on August 3rd @ $31.58
Gain since picked:     - 1.58
Earnings Date:           N/A  




---

PeopleSoft - PSFT - close: 38.84 change: -1.87 stop: 42.50 *new*

One down, one to go.  Thursday we told bears that the first hurdle
we need to see fall was support at $40.  Well you can thank your
major brokerages for this one.  Friday morning a Goldman Sachs
analyst lowered estimates on both Siebel Systems (SEBL) and 
Oracle (ORCL).  They felt that the situation could get worse
before it gets better.  Another brokerage, CS First Boston, sent
shares of BEA Systems (BEAS) reeling when their analyst lowered
estimates for both 3Q and 4Q.  Industry reviewers feel that any
turnaround in the group may not come until the latter half of
2002.  This news did a number on the GSO software index and the
GSO.X fell through support at 180.  Yes, the index did manage
a decent bounce but it remains under support.  Shares of PSFT
bounced off its 200-dma (38.20).  This is the next hurdle we
like to see cleared.  More aggressive traders can use the close
below $40 as an entry point now.  More patient traders should
probably wait for the 200-dma to fall.  All of us should be
watching and waiting for the BEAS earnings announcement expected
on Tuesday, August 14th.  After the today, the news is already
out and the market will be listening more to the BEAS conference
call than the actual earnings (unless they really surprise).
If the downtrend continues for PSFT our next target will be 
$35.

Picked on August 7th @ $42.38
Gain since picked:     + 3.54
Earnings Date:           N/A  




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

  -----------------------
  NB Closed Bullish Play
  -----------------------

Microsoft Corp. - MSFT - close: 65.52 change: +0.51 stop: 64.00

The software sector was one of the worst performing groups on 
Friday and our stock in play was guilty by association.  Two 
brokers offered negative comments on high profile companies and
the GSO index fell through support at 180.  Goldman Sachs lowered
its estimates on Siebel Systems (SEBL) and Oracle (ORCL).  Their
analyst felt that the software situation would continue to worsen
before it got better.  Adding to the news was CS First Boston's
negative comments on BEA Systems (BEAS).  While these individual
stocks certainly suffered the lion's share of damage the sharp drop
in the GSO was felt by MSFT and we were stopped out at 64.00.
Fortunately for MSFT investors the GSO managed a good bounce off
its lows and MSFT did the same actually finishing positive on 
the day.  The low for MSFT was just above its 200-dma (62.69).

Picked on August 2nd @ $67.45
Gain since picked:     - 1.93
Earnings Date:          07/19 (confirmed)





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

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

  --------------
  New Bullish Plays
  --------------

PepsiCo, Inc. - PEP Close:$45.66 Change:+0.33 Stop:$43.00

Company Description:
The Purchase, New York-based company produces the world's second 
most popular soft-drink brand, Pepsi, and other beverages such as 
Mountain Dew.  Over 60-percent of sales comes from its snack food 
maker Frito-Lay.  The firm's Tropicana Products leads the world in 
juice sales.  Although PepsiCo is number two to Coca-Cola it has 
begun adding non-carbonated beverages, such as its Aquafina bottled 
water, and beating Coca-Cola in this fast-growing segment: PepsiCo 
has also taken a majority stake in South Beach Beverage Co., maker
 of the SoBe brand of non-carbonated beverages.  In addition, 
PepsiCo's August 2001 purchase of The Quaker Oats Company added the 
dominant Gatorade sports drink brand (80-percent market share in 
the US) to its lineup. (However, as a concession to competition 
concerns, PepsiCo will not be allowed to distribute Gatorade in its 
own distribution system for 10 years. It is also selling its own 
sports drink, All-Sport, to make room for Gatorade. The Quaker Oats 
acquisition also added Cap'n Crunch cereal, Aunt Jemima 
pancake mix, and other brands to the PepsiCo product line. 
Fundamentals: 
Analysts project the firm will earn $1.66 per share this year on 
sales of $25.1 billion and $1.86 on $32 billion in 2002.  Last year 
the company earned $1.45 on $20.4 billion.  This gives the firm a 
current P/E of 31 and a forward one of 27.5 for 2001.  The company 
has a 58-cent per share annual dividend. 

Why We Like It: 
A weaker dollar is beneficial for companies with a large export 
business such as PepsiCo.  In addition the acquisition of Quaker 
Oats makes the firm the fifth-largest food and beverage company in 
the world.  The combination is also expected to save "hundreds of 
millions of dollars in purchasing, manufacturing and distribution 
synergies," according to the PepsiCO CEO Steve Reinemund.  

With high levels of uncertainty in the stock markets it makes sense 
to reduce risk by looking for plays near significant support.  
PepsiC0 shares fit the bill.  Solid support is nearby at $43 and 
this is where we will place our stop.  To the upside, a point and 
figure analysis gives us a long-term bullish price objective of $60. 
 On the way, upside resistance exists at $47, $48.43 and $50.

Picked on August 10th at $45.66
Earnings Date              7/19 (Not Confirmed)





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

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

Newmont Mining NEM Close:$20.05 Gain:-0.45 Stop:$18.50

Newmont failed to confirm its breakout today by trading $21.  
Instead the stock has pulled back 45 cents on relatively light 
volume.  As the U.S. dollar continues to fall, gold and gold stocks 
should benefit.  According to Robert Doyle at Credit Suisse First 
Boston, gold stocks are not yet overvalued, and should continue to 
benefit from rising gold 
prices.  

Picked on July 14th at $20.50
Gain since picked:      -0.45
Earnings Date            11/1/01 (unconfirmed)




---

RailAmerica RAIL Close:$13.35 Gain:+0.05 Stop:$12.00

RAIL continues to consolidate around $13.00. 

Picked on July 14th at $11.41
Gain since picked:      +1.94
Earnings Date            N/A





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

Beazer Homes BZH Close:$62.80 gain:-1.67 Stop:$70.00

Beazer Homes lost $1.67 today, but managed to hold above support 
at $62.20.  This stock continues to consolidate just under the 
recent up trend and 50-day moving average, waiting for a catalyst 
to spark a sell off.  That catalyst could be the housing starts 
data that comes out Thursday.

Picked on August 6th at $65.08
Gain since picked:       +2.28
Earnings Date             N/A




---

Chevron CHV Close:$91.75 Gain:+1.16 Stop:$93.00

Chevron gained $1.16 today on concerns over the situation in the 
Middle East, but failed to hold above a declining 50-day moving 
average.  By fading from its high, Chevron has formed a bearish 
shooting star candle formation.  The stock also gapped up today, 
and markets love to close gaps.  

Picked on August 2nd at $91.05
Gain since picked:       -0.70
Earnings Date             N/A




---

Transocean Sedco Forex RIG Close:$30.02 Gain:+0.27 Stop:$32.00 NEW

Oil service stocks gained 1.03 percent on Friday, but RIG only 
gained 27 cents.  Even when other stocks in this sector are 
strong, this stock can't move higher.  Should tension in the 
Middle East continue to mount, even weak stocks could benefit, so 
we are going to lower our stop to $32.00.

Picked on July 31st at $32.00
Gain since picked:      +2.27
Earnings Date            N/A





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

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

Gannett GCI Close:$67.21 Gain:+0.03 Stop:$66.50

Even thought online advertised got slammed, all advertisers suffered, 
and we were stopped out of our Gannet position.  After triggering our 
stop, Gannet has managed to stage a rally, and finished up 5 cents.  
Unfortunately that doesn't help us. 

Picked on August 3rd at $68.53
Gain since picked:       -2.03
Earnings Date             N/A





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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.

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Do not duplicate or redistribute in any form.


PremierInvestor.net Newsletter         Weekend Edition 08-10-2001
                                                   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
=================================================================
To view this email newsletter in HTML format with imbedded
charts and graphs, click here:
http://www.PremierInvestor.net/htmlemail/3564_3.asp
=================================================================

In section three:

Expected/Likely Split Announcements For The Coming Week 
New Split Candidates: None this issue
Market Watch for Week of August 10th
   - Major Earnings
   - Board of Directors Meetings
   - Stock Splits
   - Economic Reports

Trading Ideas
  Value Plays With Bullish Signals
  Breakout to Upside (Stocks $5 to $20)
  Breakout to Upside (Stocks over $20)      
  Breakout to Downside (Stocks over $20)      
  Recently Overbought With Bearish Signals (Stocks over $20

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

=================================================
Expected/Likely Announcements For The Coming Week
=================================================
                                    Date Expected 
Symbol         Company              To Announce*
=================================================
FRX            Forest Labs              8/13
NVDA           Nvidia Corp              8/14
=================================================

EXPLAINATION:

FRX - Forest Labs

There's an interesting thing we noticed about Forest Labs. The 
last two split announcements occurred almost exactly one month 
after their earnings release. And as far as levels go, in January 
of 2001 prices were able to get as high as $135; however, the 
previous two splits were announced at the $60 level. When we saw 
the shareholders meeting scheduled for 8/13, the notion of a 
possible split crossed our mind. Couple that with the current 
price range, plus the fact that the shareholder meeting follows 
one month from the last earnings date, you can understand why we 
have expectations for FRX.
            
chart = 

===

NVDA - Nvidia Corp 

Our first tip-off to Nvidia was the SEC filing inviting 
shareholders to meet on August 15 to vote on increasing authorized 
shares from 200M to 500M. The last stock split was announced with 
earnings last year at $94 and had a huge run of 72 points! The 
stock is currently below those levels now, but the Board may admit 
that it's still pricey. Look to earnings on the 14th as a possible 
trigger event for Nvidia's next split.

chart = 


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

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

Symbol  Company               Date           Comment      EPS Est   

CDA     Cordiant Comm         Mon, Aug 13  Before the Bell   0.42 
DTE     DTE Energy            Mon, Aug 13  Before the Bell   0.36 
KPP     Kaneb Pipeline        Mon, Aug 13  Before the Bell   0.64 
GMST    Gemstar-TVGuide       Mon, Aug 13  After the Close    N/A 
ARXX    Aeroflex Inc          Mon, Aug 13  After the Close   0.09 
PSUN    PAC Sunwear CA        Mon, Aug 13  After the Close   0.13 
PDII    Pro Detailing         Mon, Aug 13  After the Close   0.24 
PKS     Six Flags             Mon, Aug 13  After the Close   0.19 
TNOX    Tanox Inc             Mon, Aug 13  After the Close  -0.13 
TNE     Tele Norte Leste      Mon, Aug 13  After the Close   0.14 
TSP     Telecomunicacoe       Mon, Aug 13  After the Close   0.22 
UPCS    Ubiquitel Inc         Mon, Aug 13  After the Close  -0.44 
NZT     Telecom New Zeal      Mon, Aug 13  5:00 pm ET         N/A 
ADP     Automatic Data        Mon, Aug 13  ----- n/a -----   0.41 
CPG     Chelsea Property      Mon, Aug 13  ----- n/a -----   1.22 
GLCBY   Globo Cabo SA         Mon, Aug 13  ----- n/a -----  -0.37 
MAY     May Dept Stores       Mon, Aug 13  ----- n/a -----   0.35 
MICT    Microcell B           Mon, Aug 13  ----- n/a -----  -1.11 
NMK     Niagara Mohawk        Mon, Aug 13  ----- n/a -----  -0.02 
VAL     Valspar CP            Mon, Aug 13  ----- n/a -----   0.50 

AFCE    AFC Enterprises       Tue, Aug 14  Before the Bell   0.27 
ALKS    Alkermes              Tue, Aug 14  Before the Bell  -0.23 
CKFR    CheckFree             Tue, Aug 14  Before the Bell  -0.02 
DE      Deere & Company       Tue, Aug 14  Before the Bell   0.25 
EAGL    EGL                   Tue, Aug 14  Before the Bell  -0.13 
FOSL    Fossil                Tue, Aug 14  Before the Bell   0.23 
HD      Home Depot            Tue, Aug 14  Before the Bell   0.37 
JCP     JC Penney             Tue, Aug 14  Before the Bell  -0.22 
MTA     MATÁV                 Tue, Aug 14  Before the Bell    N/A 
MAXY    Maxygen               Tue, Aug 14  Before the Bell  -0.27 
RDA     Reader`s Digest       Tue, Aug 14  Before the Bell   0.05 
TECH    Techne                Tue, Aug 14  Before the Bell   0.21 
TLCP    TeleCorp PCS          Tue, Aug 14  Before the Bell  -1.13 
TJX     TJX Companies         Tue, Aug 14  Before the Bell   0.40 
UBS     UBS AG                Tue, Aug 14  Before the Bell    N/A 
UPCOY   United Pan-Europe     Tue, Aug 14  Before the Bell  -1.14 
UCOMA   UnitedGlobalCom       Tue, Aug 14  Before the Bell  -3.98 
ANPI    Angiotech Pharma      Tue, Aug 14  After the Close  -0.22 
AMAT    Applied Materials     Tue, Aug 14  After the Close   0.02 
BEAS    BEA Systems           Tue, Aug 14  After the Close   0.09 
COV     Covanta Energy Corp   Tue, Aug 14  After the Close    N/A 
FS      Four Seasons Hotels   Tue, Aug 14  After the Close   0.45 
NTAP    Network Appliance     Tue, Aug 14  After the Close   0.01 
NVDA    NVIDIA                Tue, Aug 14  After the Close   0.41 
TTN     Titan                 Tue, Aug 14  After the Close   0.06 
ANF     Abercrombie&Fitch     Tue, Aug 14  4:30 pm ET        0.23 
WMT     Wal-Mart              Tue, Aug 14  5:00 pm ET        0.37 
WPI     Watson Pharmaceutical Tue, Aug 14  ----- n/a -----   0.52 
WR      Western Resources     Tue, Aug 14  ----- n/a -----   0.42 
WMC     WMC                   Tue, Aug 14  ----- n/a -----    N/A 
ADLAC   Adelphia Comm         Tue, Aug 14  ----- n/a -----  -1.36 
AZ      ALLIANZ AG            Tue, Aug 14  ----- n/a -----    N/A 
PBR     Petroleo Brasile      Tue, Aug 14  ----- n/a -----   1.22 
SPI     Scottish Power        Tue, Aug 14  ----- n/a -----    N/A 
TRK     Speedway Motorsports  Tue, Aug 14  ----- n/a -----   1.03 
SOS     Storage Computer      Tue, Aug 14  ----- n/a -----    N/A 
TGH     Trigon Healthcare     Tue, Aug 14  ----- n/a -----   0.99 

DAKT    Daktronics            Wed, Aug 15  Before the Bell   0.07 
FD      Federated Department  Wed, Aug 15  Before the Bell   0.44 
LZB     La-Z-Boy              Wed, Aug 15  Before the Bell   0.08 
NAV     Navistar Intl         Wed, Aug 15  Before the Bell   0.01 
PSS     Payless ShoeSources   Wed, Aug 15  Before the Bell   1.46 
CMNT    Computer Network      Wed, Aug 15  After the Close  -0.05 
CMOS    Credence Systems      Wed, Aug 15  After the Close  -0.42 
HAR     Harman International  Wed, Aug 15  After the Close   0.52 
PLAB    Photronic             Wed, Aug 15  After the Close   0.03 
LQU     Quilmes Industrial    Wed, Aug 15  After the Close   0.12 
ADIC    Advanced Digital Info Wed, Aug 15  After the Close   0.03 
ANN     AnnTaylor Stores      Wed, Aug 15  After the Close   0.21 
BRCD    Brocade Comm          Wed, Aug 15  4:30 pm ET        0.05 
BSI     Blue Square - Israel  Wed, Aug 15  ----- n/a -----    N/A 
ELP     Companhia Paranaense  Wed, Aug 15  ----- n/a -----   0.08 
PRGO    Perrigo               Wed, Aug 15  ----- n/a -----    N/A 

FLWS    1-800-FLOWERS.COM     Thu, Aug 16  Before the Bell  -0.04 
ACDO    Accredo Health        Thu, Aug 16  Before the Bell   0.17 
EL      Estee Lauder          Thu, Aug 16  Before the Bell   0.23 
FOX     Fox Entertainment     Thu, Aug 16  Before the Bell   0.00 
HRL     Hormel Foods          Thu, Aug 16  Before the Bell   0.26 
CIEN    CIENA                 Thu, Aug 16  Before the Bell   0.17 
AGIL    Agile Software        Thu, Aug 16  After the Close  -0.10 
ADSK    Autodesk              Thu, Aug 16  After the Close   0.46 
DELL    Dell                  Thu, Aug 16  After the Close   0.16 
DIGE    DVI                   Thu, Aug 16  After the Close   0.35 
GPS     Gap Inc.              Thu, Aug 16  After the Close   0.11 
ADI     Analog Devices        Thu, Aug 16  4:00 pm ET        0.17 
HWP     Hewlett-Packard       Thu, Aug 16  ----- n/a -----   0.04 
ABN     ABN Amro Holdings     Thu, Aug 16  ----- n/a -----    N/A 
PLCE    Children`s Place      Thu, Aug 16  ----- n/a -----  -0.15 
DV      DeVry                 Thu, Aug 16  ----- n/a -----   0.21 
EON     E.ON AG               Thu, Aug 16  ----- n/a -----    N/A 

CLE     Claire's Stores       Fri, Aug 17  Before the Bell   0.07

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

Symbol  Company                  Date

CCOM    Colonial Commercil       8/13
DLTDF   Delphi Intl              8/13
GRIN    Grand Toys Intl          8/13
BOOT    Lacrosse Footwear        8/13
OFG     Oriental Fncl Group      8/13
FLM     Fleming Cos              8/14
PENX    Penford Corp             8/14
AFCI    Advanced Fibre Comm      8/14
CCBL    C-cornet                 8/15
CTWS    Connecticut Water        8/15
VAL     Valspar                  8/15
CSGS    CSG Systems              8/16
DAKT    Daktronics               8/16
TRP     Transcanada Pipelines    8/16


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

Symbol  Company Name         Ratio   Payable    Executable

HNBC    Harleysville Nat'l    2:1     08/10      08/13
RSC     REX Stores            3:2     08/10      08/13
COBZ    CoBiz                 3:2     08/13      08/14
DFXI    Direct Focus          3:2     08/13      08/14
COBZ    CoBiz Inc             3:2     08/13      08/14
NEU     Neuberger Berman      3:2     08/16      08/17
ALLY    Alliance Gaming       2:1     08/20      08/21
RSLN    Roslyn Bancorp        3:2     08/22      08/23

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

The coming week will present a full plate of data for the
Federal Reserve to chew on prior to the meeting on the 21st. 
Earnings season continues to ebb, but some major players still 
due to report include: ADI, AMAT, BEAS, HD, NTAP, WMT, DELL


Monday, 08/13/01
None

Tuesday, 08/14/01
Retail Sales           Jul  Forecast:  -0.2%  Previous:   0.2%
Retail Sales ex-auto   Jul  Forecast:   0.1%  Previous:  -0.2%

Wednesday, 08/15/01
Business Inventories   Jun  Forecast:  -0.3%  Previous:   0.0%
Industrial Production  Jul  Forecast:  -0.3%  Previous:  -0.7%
Capacity Utilization   Jul  Forecast:  76.6%  Previous:  77.0%

Thursday, 08/16/01
Initial Claims        8/11  Forecast:   N/A   Previous:   385K
CPI                    Jul  Forecast:   0.0%  Previous:   0.2%
Core CPI               Jul  Forecast:   0.2%  Previous:   0.3%
Housing Starts         Jul  Forecast: 1.625M  Previous: 1.658M
Building Permits       Jul  Forecast:   N/A   Previous: 1.568M
Philadelphia Fed       Aug  Forecast:  -10.0  Previous:  -12.2

Friday, 08/17/01
Trade Balance          Jun  Forecast: -$29.5B Previous:-$28.3B
Mich Sentiment-Prel    Aug  Forecast:    93.0 Previous:   92.4


==================
  Trading Ideas 
==================

This section contains stocks that meet criteria which may make 
them of interest to long and short side traders.  These are not 
recommendations, nor have they been reviewed by PremierInvestor 
editors for investment potential.  However, each of them has 
technical and fundamental characteristics that make them worthy 
of further review by traders and investors looking for fresh ideas. 
New stocks will appear daily following the market close.  

  ---------------------------------
  Value Plays With Bullish Signals
  ---------------------------------

Ticker    Company Name              Close  Change
ROST      Ross Stores Inc          .26.29  +1.11
PGL       Peoples Energy Corp       37.70  +0.76
VGR       Vector Group Ltd          34.75  +1.50
WBPR      W Holding Company         16.04  +0.54


  ---------------------------------------
   Breakout to Upside (Stocks $5 to $20)
  ---------------------------------------

Ticker    Company Name              Close  Change
IMNX      Immunex Corp              15.87  +1.15
ACXM      Acxiom Corp               12.24  +1.19
VTIV      Ventiv Health Inc         11.72  +1.73
UTHR      United Therapeutics Group 14.00  +5.19
BCGI      Boston Comm. Group        13.95  +1.35
WIRE      Encore Wire Corp          14.11  +1.21

  ---------------------------------------
   Breakout to Upside (Stocks over $20)
  ---------------------------------------

Ticker    Company Name              Close  Change
MGA       Magma International Inc.  65.80  +1.60
PSA       Public Storage Inc.       33.49  +1.49
DNB       Dun & Bradstreet Corp     29.54  +1.23
ROST      Ross Stores Inc.          26.29  +1.11
ATK       Alliant Techsystems Inc  103.35  +5.85
AHG       Apria Healthcare Group    25.68  +1.85

  -----------------------------------------
   Breakout to Downside (Stocks over $20)
 -------------------------------------------

Ticker    Company Name              Close  Change
KYO       Kyocera Corp              74.00  -1.75
BBY       Best Buy Co Inc.          60.05  -1.48
CVC       Cablevision Systems Cl A  50.25  -1.60
INFY      Infosys Technologies Ads  63.30  -1.40
RSH       Radioshack Corp           23.51  -1.43
QSFT      Quest Software Inc        20.15  -1.92

  ------------------------------------------------------------
   Recently Overbought With Bearish Signals (Stocks over $20)
  -------------------------------------------------------------

Ticker    Company Name              Close  Change
AMG       Affiliated Managers Group 64.26  -1.03
SPLX      Simplex Solutions         25.50  -1.19


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