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Daily Newsletter, Tuesday, 09/11/2001

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PremierInvestor.net Newsletter                 Tuesday 09-11-2001
                                                  section 1 of 2
Copyright  2001, All rights reserved.
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In section one:

Market Wrap: Life As We Know It Is Over?
Market Sentiment: Global Shock
Special Report: United We Stand
Special Report: A Trader's Personal Defense: Definition of 
                various stop orders
Special Report: Historical Market Reaction to Terrorist Attacks
Special Report: How your brokerage account is insured


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

Life As We Know It Is Over?
By Jim Brown, Chief Editor 

Exaggeration? Only time will tell. As we all are well aware Tuesday
will go down in history as a day of infamy even greater than the
attack on Pearl Harbor, the bombing of the Federal building in
Oklahoma and the Kennedy assassination. There is no precedent to the
events that occurred on Tuesday morning. The death toll is likely 
to be well over 10,000 and it will be months before the pile of
rubble that was once the center of the world financial markets is
cleared. We may never know exactly how many people were killed or
who actually gave the go signal but the impacts of those airliners
will be felt for many years to come.

The financial impact of course is inconsequential compared to the 
loss of life but it is going to be enormous. Not only did the World
Trade Center house major offices for dozens of brokers and banks
but also commodity exchanges, legal firms, trust companies, financial
publishers, mutual funds etc. Almost a square mile of Manhattan real 
estate was demolished. The collapse of the twin 1300 ft tall towers
showered concrete and steel for a block in every direction damaging
dozens of surrounding buildings and setting them on fire from the
100,000 pounds of jet fuel that was consuming the WTC. Late news
announced that World Trade 7 collapsed around 5:30 from this damage
and several other buildings in the 20-30 story range were also in
danger of collapse. At least a dozen buildings have been rendered
unusable and will be demolished in the cleanup.

Life as we know it is over? I think that is a pretty good bet.
If you have ever traveled overseas you will understand what I am
talking about. Citizens/travelers in other countries have no civil
rights. Police and military openly carry machine guns and randomly
stop and question civilians. The rules are different. Unruly, 
obnoxious, impolite or just plain uncooperative individuals are
quickly and roughly dealt with. They have learned long ago that
terrorists and hijackers must be dealt with aggressively and without
mercy and that sometimes means innocent individuals and/or bystanders
are caught up in the fray.

When four, count them, four, state of the art airliners, fully loaded
and leaving from three different airports, are hijacked by multiple
terrorists armed with knives, guns and grenades on the same day, it 
is a wake up call for American security. Heads will roll on these 
security errors but it will be little comfort to the families of the
victims. Americans will soon be seeing increased security, higher 
visibility for security forces and untold complications for lawful 
travelers. All of this will have little impact on stopping true 
terrorist activities. With the Mexico and Canadian borders wide 
open any real terrorist can simply walk in and setup shop. Because 
the terrorist war is likely to escalate on both sides Americans will 
be quickly rethinking their current open society as well as travel 
plans abroad. The FAA has grounded all flights in the US until at 
least noon on Wednesday. They are closing Manhattan for Wednesday and 
they are saying that nobody will be allowed into the area until the
danger of other building collapses has passed and buildings farther 
away can be inspected for damage from falling debris. 

In Denver Colorado today the panicked public were quickly filling 
food stores and stocking up on nonperishable food. Lines were out
of the parking lots of many filling stations as panicked drivers
were filling up the vehicles. Banks around the country were reporting
a run on ATM machines and several banks quickly programmed a limit
on cash withdrawals on a daily basis. Fears of lost account records
were cropping up everywhere prompted by CNBC showing burned account
records from companies like Cantor Fitzgerald, Chase and Morgan 
Stanley, that were picked up on the street blocks from the WTC.

Morgan Stanley quickly went on air and squelched the rumor that all
the records were lost when their 50 floors of corporate office
space and complete trading floor in the WTC were destroyed. They
said they maintain complete copies at remote locations as do most
brokers. Still, you can bet that there are tens of thousands of
accounts that were not so lucky simply due to the numbers of 
financial firms destroyed. What will this do to the markets? 
How are these types of disasters handled in the financial community?
We will be producing a complete range of articles today and tomorrow
on how this will impact everyone. We will do our best to cover every
aspect of the financial impact to our readers.

The US markets never opened but the European markets still open
dropped from 4-7% before closing. The German DAX fell almost -9%
before a bomb threat stopped trading. US exchanges will be closed
at least through Wednesday and quite probably even longer once the
magnitude of the damage to the infrastructure is determined. There
is a precedent for this since the markets were closed two days 
when Kennedy was assassinated. The US markets will not crash. 
Surprised? The world economy cannot afford to let the US markets 
crash. Even though the confidence in the strength of the US has 
been broken the world banks and governments have all come out in 
support of the US. They have pledged to inject whatever liquidity 
needed to insure that all market needs are met. There is a very 
good chance that the Fed will make an intermeeting rate cut the 
day the market reopens to show support and prop up the markets. 

Historically the markets will dip on major event but quickly
rebound as bargain hunters rush in to fill the gap. Did JNJ
change its product line? Did Cisco announce it was getting out
of the router business? Of course not. This is a news event 
that will rock the markets but the basic economy has not changed. 
It still stinks but it is still the best economy in the world. In
reality the fall out from this event could actually provide a
jump start once the initial shock has passed. There are going
to be major problems in several sectors, banking, brokerage 
and insurance, see our special report tomorrow for the details, 
and major gains in sectors that will benefit from the reaction to 
this event. Defense is the number one area which is likely to 
receive hundreds of billions of dollars in windfall contracts and 
projects. New security devices and new technology will be called 
on to prevent recurrences in the future. Hundreds of thousands of 
new security personnel will be hired, trained, equipped and put to 
work over the next year. Out of every catastrophe rises a stronger 
country. 

The different security agencies are now saying there is better
than a 90% chance that Osama bin Laden was responsible for the
highly coordinated attack. There have been several warnings of
prior attacks that never appeared for reasons unknown. He has
declared war on the US in the past and has been traced to numerous
prior attacks. He has eluded attempts to catch him for years.
The last time he bombed US embassies the US tossed a couple 
cruise missiles at his headquarters and called it even. I doubt 
that will be the result this time. Regardless of who actually
did this he will likely become the highly visible target. There
will not be a rock big enough to hide under or a cave deep enough
to protect him. George Bush is facing a test that has no precedent.
He now has a blank check and a clear directive to silence open
terrorism on a global scale. The US and its allies will declare
war on terrorism and it will probably be a scorched earth policy.

The biggest problem for the markets next week will be the consumer.
Historically terrorist attacks cause people to stay home, restrict
spending and worry about the future. The keyword here is consumer
confidence and it took a serious hit on Tuesday. The government
will be working to put forth a strong face with a kick butt attitude
and the Fed will move into aggressive mode with Fedspeak on every
news outlet that will attempt to soothe fears. The panic buying
across the country today will ease. OPEC said they will keep the
oil markets stable. The stock market will go back to business as
usual at least by next week. It has to happen. The longer markets
are closed the more uneasy investors will become. As morbid as
it may be the markets must reopen immediately to relieve the 
pressure even before they recover the bodies. 

What an event like this brings into focus is our mortality and
the quickness of unexpected death. Each day we get up
and go to work without ever considering the possibility that
something outside our control could end our life and leave our
families in shock. This was brought home to me especially in
this event. I was in Washington DC on Monday for business. I
drove by the Pentagon. I flew a United 757 out of Dulles at
10:PM last night. I came very close to changing that flight
to a Tuesday morning flight to do some sightseeing. In the 
lottery of life my number did not come up. My flight was
uneventful and I completed a book I had been reading. Hundreds
of travelers today were not that lucky. Their families and the
families of the office workers now number in the tens of thousands
that have been horribly changed. 

We lost many subscribers today. How many we will not know for 
weeks but 183 readers have email addresses that can be traced to 
the WTC in a very quick search. To the families of these readers 
our prayers go out that your loved one was in the group that was 
able to escape. To those families whose loved ones lives were 
senselessly ended our prayers are with you. No amount of good 
words or well meaning intentions will help you today. Just like 
the Oklahoma bombing there is no way to apply reason or rational 
thought to those who did this. It will never make sense and it 
will never quit hurting. God bless you and keep you.

With my deepest sympathy,

Jim Brown


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

Global Shock
By Jeffery Canavan

Today's terrorist attacks in New York and Washington have sent 
shockwaves around the globe, and reeked havoc on international 
stock markets.

Appalled traders unconsciously sold stocks, but it was heartening 
to hear statements like, "We are seeing clients phone in to void 
bets as they do not want to make money out of this tragedy." 

The London Stock Exchange evacuated its headquarters, but 
contingency plans allowed trading to continue.  The FTSE 100 
closed down 5.72%, the biggest drop since October of 1987.

The German DAX suffered its biggest one-day drop, losing 8.56%, 
but was down 11.6% at one point during the day.  A bomb threat at 
the Deutsche Boerse shut down late-trading on the DAX Index.

The Paris Stock Exchange tumbled 7.4%.

Panic buying pushed oil and gold prices higher.  Brent Sea Crude 
rose $3.60 to $31.05 before trading was suspended and price fell 
back to $29.06.  

OPEC said it would do everything it could to maintain stability. 

Investors flocked to the safety of Gold, and the yellow metal 
closed up $15.50 to $287.00 at the London Metal Exchange.

The U.S. Dollar fell sharply against the yen and euro.

Trading is halted in United States tomorrow, but overseas markets 
will continue to trade.  How those stocks react should give some 
indication of how U.S. stocks will open later this week.  After a 
day like today, that seems pretty inconsequential.


================
Special Report
================

United We Stand
By Eric Utley

However inconsequential, I would like to send my thoughts and
prayers to those impacted by Tuesday's terrible acts of terror.
My heart is heavy.  

Central banks across the globe reassured the financial community
Tuesday that the system would not be allowed to fail in the wake
of the Attack on America.  The U.S Federal Reserve said that it
was open and providing ample liquidity to the financial system.

Fed Chairman Alan Greenspan and New York Fed President William
McDonough were in Basel, Switzerland, attending the Bank for
International Settlements meeting early this week.  While in
Switzerland, McDonough was quoted by Reuters, saying that the
Fed was "coping" with Tuesday's events.  Greenspan was not
available for comment.  However, sources close to the Fed were
reporting that Greenspan was in close contact with central
bank officials from an undisclosed location.  Furthermore, a
consortium of U.S. financial market regulators said they had
been in constant contact with Greenspan following the attacks.

In Greenspan's absence and in the wake of Tuesday's crises, the
financial media was reporting on the possibility of Americans,
and, indeed, the rest of the world, losing faith in financial
institutions such as banks, brokers, and insurers.  The slide
in the U.S. dollar during illiquid trade seemed to lend to 
that speculation.  And, reports of long lines at automated
teller machines (ATMs) in New York City heightened those fears.

The fear is that people will lose faith in financial institutions
to the point where they demand hard cash in place of bank
deposits and other liquid assets, such as money markets.  No
bank keeps all of its assets in cash.  Therefore, no bank can
meet excessive demands for cash during times of crises, such as
these.  If a bank's cash is drained by withdrawals it runs the
risk of failing.

But, it is this American's opinion that there is little to fear
in the form of a financial meltdown.  Through the Fed's
impeccable track record during times of crises, I believe that
they will once again do the right thing.  History proves that
much:  Most recently, the Fed injected liquidity during the
Long-Term Capital meltdown in October of 1998; it did the same
thing during the stock market crash of 1987.  And it's doing the
same thing today.

In addition to its open market operations, many economists are
predicting that the Fed will aggressively cut interest rates to
fend off fears.  Prior to Tuesday's tragic events, the consensus
was for the Fed to cut rates by 25 basis points during its
regularly scheduled October meeting.  But some are suggesting that
the Fed may move as early as Wednesday.  Although the Fed has
already aggressively cut rates this year, further cuts in the wake
of Tuesday's attacks would only reinforce the faith in financial
markets.

Central banks around the globe echoed the U.S. Federal Reserve's
reassurances Tuesday.  The Bank of Japan in a press release said,
"The Bank of Japan, in order to secure smooth settlement of funds
and stability in financial markets, will do its utmost, including
providing ample liquidity."  Following its statement, it was
reported that the Bank of Japan offered some $8.36 billion, or
1 trillion yen, through bill purchases.  The European Central
Bank also reported that it would be providing plenty of liquidity. 

Separately, American's kept their resolve during Tuesday's chain
of events.  Major mutual fund companies, such as Fidelity and
Vanguard, reported that call volumes were much lower than normal.
And that withdrawals were nothing more than average and routine.
Although early, I think that small sign demonstrates the resolve
of this great nation.  


================
Special Report
================

A Trader's Personal Defense:
Definition of various stop orders
Jeff Bailey

Over the past several months, investors have become very familiar 
with the usefulness of trailing stops and different stop loss 
orders that they can place on different trades they currently 
have open in their accounts.  When the markets do open back up 
for trading, the type of "stop" order you may have placed on a 
trade should be understood.  There are two different types of 
"stop" orders.  Subscribers may want to reassess their current 
stop orders and understand their implications.  Here is a 
description of the two most common stop orders.

Stop-loss Order:  An order placed with a broker to buy/sell when 
a certain price is reached.  This order is designed to limit an 
investor's loss on a security position.  Sometimes this order is 
called a "stop market order."  

Example:  Let's imagine you're holding long 100 shares of ABCD in 
your account.  You bought it at $10 and yesterday the stock 
closed at $10.  Currently you have a "stop-loss order" to sell 
100 shares of ABCD at $9.

How this order could be filled.  Let's imagine that there is some 
type of bad news that adversely affects the stock and ABCD opens 
at $9.50.  You would still own the stock at this point.  Let's 
imagine that the stock eventually trades $9 later in the trading 
session.  If there were a standing bid for 1,000 shares to be 
bought at $9, a trade at $9 would immediately trigger your stop 
and your order would be activated.  At that point, your order to 
sell 100 shares at $9 would be matched against a buyer and your 
stock sold.  There are those occasions in a "fast market" 
(extremely high volume and activity in the stock) where your 
trade may actually not be matched with a buyer until a lower 
price (perhaps $8.90).  Nonetheless, the STOP-LOSS ORDER is 
designed to have your stock sold at $9 or lower.  

The "stop-loss order" may have a downside that newer investors 
aren't aware.  Let's assume the same situation occurs as outlined 
above, but this time, lets imagine that some type of catastrophic 
news hits the markets and shares of ABCD open for trading at $5.  
Under a "stop-loss order" your stock may be sold at $5 and not 
the $9 that you had thought it might be sold when you originally 
placed your stop.

An investor that understands this type of trade execution may not 
want to sell the stock at $5 as he/she feels the stock will 
rebound to a higher price, or the investor may not be willing to 
take that type of loss under current market conditions.  If this 
were the case, then there are things a trader can do currently.

One thing an investor may want to do is to try and cancel their 
"stop-loss order" to sell 100 shares of ABCD at $9 with their 
broker, if they feel the stock may gap significantly below a 
level that they were willing to sell the underlying security for.

Today (August 11, 2001), trading was halted in the U.S. and it 
may be difficult to cancel any open orders with your broker, but 
many brokerage firms will take an order that is labeled "request 
to cancel."  Under more normal market conditions than exist today 
after the attack on the World Trade Center in New York, a 
cancellation order is often times taken and the order canceled 
even though the markets are closed for trading.

Now, lets look at another type of "stop" order.  Under current 
market conditions, this type of order may be more appropriate.  
This order is called the "Stop-Limit Order."

Stop-Limit Order:  A "stop-limit order" is placed with a broker 
to buy/sell at a specified price or BETTER.  This type of stop 
attempts to limit the loss to a specified price, but to not sell 
the stock for a price LOWER than the stop-limit.

Example:  Let's again imagine we bought 100 shares long of ABCD 
at $10.  At yesterday's close ABCD traded $10.  Let's imagine 
that this time we have placed a "stop-limit order" to sell 100 
shares of ABCD at $9.

How this order could be filled.  Let's imagine that there is some 
type of bad news that adversely affects the stock and ABCD opens 
at $9.50.  You would still own the stock at this point.  Let's 
imagine that the stock eventually trades $9 later in the trading 
session.  If there is a standing bid for 1,000, a trade at $9 
would immediately trigger your stop.  At that point, your order 
to sell 100 shares at $9 would be matched against a buyer and 
your stock sold.  There are those occasions in a "fast market" 
where your trade may actually not be matched with a buyer at $9.  
Let's assume the stock continues to fall to $5.  If you're order 
did not fill at $9 as the stock traded lower, then your order 
will NOT fill at $8.99 or lower.

However.... let's imagine that shares of ABCD did trade $9, your 
order was not filled and the stock fell to $8.75.  At this point, 
you still have a standing order to sell the shares at $9.  Should 
the stock trade higher to the $9, chances are that your order 
would then be filled.  There have been instances when "stop-limit 
orders" will actually trade at $9 for a brief instant, triggering 
your stop, and then a buyer bids $9.05.  Once the $9 level was 
traded (that $9 level or lower MUST trade for your order to be 
activated) your order becomes activated.  Should a buyer step in 
and offer $9.05 for the stock, your stock could actually be sold 
for $9.05.

Under current market conditions, we feel it is important for 
subscribers to understand the differences between these two types 
of "stop" orders.  They execute differently and each has its 
advantages and disadvantages.  Only you the subscriber can 
determine which type of "stop" order to place (if any) depending 
on your tolerance for risk.


=================
Special Report
=================

Historical Market Reaction to Terrorist Attacks
Jon Farnlof

In the midst of the confusion and suffering of today's tragic 
events, investors already made nervous about the recent bear 
market are questioning how the markets may react when they 
reopen.  There is no precedent for an attack so directly upon the 
core of the US financial system; the headquarters of over 150 
companies including major brokerages were in the World Trade 
Center complex.  However from a historical perspective, in the 
days and months following large scale terrorist or military 
action the U.S. financial markets have proven to be resilient.  

The following table contains the market reaction in the days, 
week and year following significant terrorist events in our past:

December 7th, 1941: Pearl Harbor is attacked, onset of World War II
December 21, 1988:  Pan Am #103 is felled by an explosive near 
                    Lockerbie, Scotland
February 26, 1993:  World Trade Center is bombed  
April 19, 1995:     Murrah Federal Building in Oklahoma City is 
                    destroyed 

Dow Jones Industrial Average 
Event       Day    Day    Day    Day      Week   Year
Date        Before of     After  After +1 Later  Later
12/07/1941   117   Closed   113   109     111    115
12/21/1988  2166   2164    2160   2168    2166   2691
02/26/199   3365   3370    3355   3400    3399   3838
04/19/1995  4127   4207    4230   4270    4300   5535

In each situation the initial reaction was negative, however the 
markets rebounded in a short period of time and produced solid 
gains within a year.  In fact, according to markethistory.com, in 
the three weeks following 25 occurrences of US military action 
since 1941, the Dow Jones Industrial Average has risen by an 
average of 3-percent in 84-percent of those occurrences.

This suggests that although terrorist or military actions may exact 
a terrible human toll, the longer-term market reactions are often 
muted by time.  On an immediate personal level, it is likely the 
first reaction of the markets when they reopen will be to the 
downside.  Investors need to decide if they want to allow this 
reaction to take them out of long positions, or to chance the 
volatility will pass.  If history can predict the future, it may be 
best to wait.   


=================
Special Report
=================

How your brokerage account is insured
Jeff Bailey

Many investors and traders may be trying to get information on 
how their brokerage accounts are insured and what type of 
protection they may have.  Investors are never insured against 
stock price fluctuation, but their accounts are insured against 
a firm's inability to continue business.  

We do not believe that brokerage firms would become insolvent or 
that traders/investors will have to revert to the insurance that 
is offered through their brokerage firms.  However, recent events 
in New York have some subscribers wondering just what type of 
insurance their brokerage accounts carry.  Here are the basics of 
how your brokerage account is protected under the Securities 
Investor Protection Corporation (SIPC).

Securities Investor Protection Corporation (SIPC) is the first 
line of defense in the event of a brokerage firm failure.  Should 
a brokerage firm close due to bankruptcy, financial difficulty, 
or inability to continue day-to-day operations, the SIPC steps in 
as quickly as possible and within certain limits ($500,000), 
works to return to you cash (up to $100,000), stocks and other 
securities (up to $400,000) you had held at the firm.  SIPC is a 
reason that many investors no longer wish to hold their 
securities in kind at a safe deposit.

Many brokerage firms purchase additional insurance on their own 
to better protect their customers.  Let's face it.  There are 
individuals and corporations that may hold millions if not 
billions of dollars in stock or bond investments.  In my 
conversation with a Charles Schwab associate, their brokerage 
firm has purchased additional insurance through Travelers 
Insurance to further protect their brokerage customer's accounts 
at values well in excess of the $500,000 SIPC limit.  Every 
investor can call the financial institution where they currently 
keep their investments to find out how much insurance their 
brokerage firm carries.

SIPC is not the Federal Deposit Insurance Corporation (FDIC).  
SIPC does not offer to investors the same blanket protection that 
the FDIC provides bank depositors.

Should a member bank fail, the FDIC insures all deposits at the 
failed institution against loss up to a certain dollar amount.  
Most "savers" put their money in FDIC-insured bank accounts 
because they can't afford to lose their money.

That's exactly the opposite of how an "investor" behaves in the 
stock market, in which rewards are potentially greater by taking 
on more risk.  SIPC does not bail out investors against declining 
values of stocks, bonds or other securities that they hold in 
their brokerage accounts.  Instead, SIPC replaces "missing" 
stocks and other securities where it is possible to do so.

SIPC does not cover individuals who are sold worthless stocks and 
other securities.  SIPC helps individuals whose money, stocks and 
other securities are stolen or put at risk when a brokerage firm 
fails.

Subscribers that would like further information regarding the 
SIPC can visit http://216.181.142.217/sipc/index.html

Storage of Records

Most brokerage firms keep duplicate records of all clients' 
transactions/statements dating back seven years.  These records 
are often times kept at multiple offsite storage locations, 
sometimes in different parts of the country, in paper or digital 
form.  In my conversation with Charles Schwab, I was informed 
that they keep records dating back 10 years.  Again, you should 
be able to contact your financial institution and inquire about 
their data storage and record keeping policies.

The above information is provided not to panic or uncertainty 
among our subscribers.  We want subscribers to know some of the 
basics that are involved in how their brokerage accounts are 
insured.  In essence, an investor/trader does not need to panic 
and sell underlying securities because they feel that their 
brokerage firm may be adversely affected by world events.  Your 
buy/sell decisions should only be based on your perception of the 
underlying security itself, not the brokerage firm that holds 
those securities.


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DISCLAIMER
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This newsletter is a publication dedicated to the education
of stock traders. The newsletter is an information service
only. The information provided herein is not to be construed
as an offer to buy or sell securities of any kind. The
newsletter picks are not to be considered a recommendation
of any stock but an information resource to aid the investor
in making an informed decision regarding trading in stocks. It
is possible at this or some subsequent date, the editors and
staff of PremierInvestor.net may own, buy or sell securities
presented. All investors should consult a qualified professional
before trading in any security. The information provided has
been obtained from sources deemed reliable but is not
guaranteed as to accuracy or completeness. PremierInvestor.net
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Do not duplicate or redistribute in any form.


PremierInvestor.net Newsletter                 Tuesday 09-11-2001
                                                   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/2992_2.asp
=================================================================

In section two:

Split Trader
  Split Announcements: none
  New Plays: none
  Play Updates: AHC

Net Bulls
  New Plays: none
  Bullish Play Updates: AMGN, RFMD
  Bearish Play Updates: MEDI, MMM, PSFT 

Stock Bottom / Active Trader
  New Plays: none
  Bullish Play Updates: CLX, MO, PEP
  Bearish Play Updates: ACF, FITB, TCB

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

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

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

Amerada Hess - AHC - close @ Sept 10th: 76.92    stop: 75.80 

In the shadow of such a tragedy that occurred in New York
and DC on Tuesday the oil sector might be an unexpected 
beneficiary of buying interest.  As is common when thoughts 
of war invade the public and more importantly the market's
collective mind there is normally a surge in oil prices and
this tends to be reflected in higher share prices for oil
stocks.  Now, if you read the commentary this evening you 
should know that there is a large expectation of a violent
downdraft in the markets on Thursday (or whenever they reopen).
AHC may or may not participate in such a sell-off which is
to be determined by investors' desire to own oil stocks.
Strangely enough AHC is headquartered in NYC but we don't 
think the disaster will affect their operations.  We are 
going to leave our stop at 75.80 which may be too close and
could leave us vulnerable a dip on Thursday.  We urge everyone
to read tonight's article on your options as a trader using
stop losses versus stop limit orders.

Picked on August 15th @ $ 78.90
Gain since picked:      -  1.98
Earnings Date:             N/A  (not confirmed)





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

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

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

Amgen Inc - AMGN - close @ Sept. 10th: 64.13  stop: 62.00

The Biotech sector continued to hold on to support at the 500
level on Monday and shares of AMGN gapped lower but managed
a strong rebound to lose back above $64.  As we have mentioned
in the market commentary, Thursday could see a powerful dip
in the markets as evidenced by the large sell-offs in the
overseas stock exchanges on Tuesday.  It is highly likely that
AMGN could gap lower than our stop loss at $62.00, which would
immediately close the play at the opening price.  We urge our
readers to read the article this evening on stop losses versus
stop limit orders.  

Picked on September 6th @ $65.66
Gain since picked:        - 1.53
Earnings Date:             10/25 (not confirmed)




---

RF Micro Devices - RFMD - close @ Sept. 10th: 22.73  stop: 19.50

Similar to the biotech sector, the semiconductor sector is also
holding on to support near the 500 level.  At least it was on 
Monday.  Shares of RFMD closed just above its 200-dma by the
end of Monday's trading.  Where it opens on Thursday is truly
anyone's guess.  We are going to leave our stop loss order at
19.50 but urge all of our readers to look over the market 
commentary as well as the special report on stop loss orders 
versus stop limit orders.

Picked on September 7th @ $22.31
Gain since picked:        + 0.42
Earnings Date:             10/25 (not confirmed)





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

Considering the damage done to consumer confidence
by Tuesday's tragedies market analysts are left
to wonder what will happen when the exchanges
open for business on Thursday.


MedImmune - MEDI - close @ Sept. 10th: 37.85 stop: 39.44 

Shares of MEDI continue to slip as the biotech sector hangs
precariously at support near 500.  MEDI collapsed under support
of $40 last week and Monday's close under $38 does not bode
well for the rest of the week.  If a sell-off ensues MEDI is
likely to find a bottom near $34 or potentially $32.50.  We
encourage everyone tonight's market commentary as well as 
the trading article on stop losses versus stop limits.

Picked on August 28th @ $40.46
Gain since picked:      + 2.61
Earnings Date:           10/24 (not confirmed)




---

3M - MMM - close @ Sept. 10th: 102.20 stop: 104.25 

MMM may not feel the affects of Tuesday's upgrade by US Warburg
to "strong buy" for an indefinite period of time.  As part of
the DJIA the stock is likely to feel a lot of selling pressure
as investors unload positions once exchanges open again on 
Thursday.  We encourage everyone to read tonight's commentary
as well as the article detailing market history surrounding
tragic events for a better understanding of what we might
expect.  

Picked on August 29th @ $106.75
Gain since picked:      +  4.55
Earnings Date:              N/A  




---

PeopleSoft - PSFT - close @ Sept. 10th: 29.14 stop: 30.25 

On Monday, Salomon Smith Barney cut its targets on selected
software companies with PSFT being one of them.  Despite the
bad news shares of the beleaguered software maker managed to
close in positive territory but remained under resistance of
$30.  As we now look forward into the unknown of a market that
has been shaken to its core by Tuesday's events one can only
wonder where trading will take us on Thursday.  

Picked on August 31st @ $ 34.48
Gain since picked:      +  5.34
Earnings Date:              N/A  





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

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

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

Listed below is another group of stocks
that might have held up under normal 
market conditions, but given expectations
for Thursday are likely to be closed soon.


Clorox Co. - CLX - close @ Sept. 10th: 39.28 stop: 37.00

To many investors Clorox can be seen a somewhat of a safe haven
stock.  When times get tough sales of soap are not likely to 
dwindle.  Unfortunately, there is no way of knowing if this
age old pattern of buying "safe" stocks will even matter when
the markets open again on Thursday.  We are choosing to leave
our stop loss for the newsletter at $37.00 but encourage all
of our readers to look over our special report on trading
and the use of stop losses versus stop limit orders.

Picked on September 5th @ $38.42
Gain since picked:        + 0.86
Earnings Date:              N/A  (not confirmed)




---

Philip Morris Co. - MO - close @ Sept. 10th: 48.15 stop: 45.00

New trading support at $47 may have held on Friday but it is
our hope that any sell-off in MO might be stopped at the 200-dma
which is currently trading at 46.15.  Unfortunately there is
little to guide us in determining if MO will be able to withstand
the selling pressure that is likely to occur on Thursday or
when the markets open next.  We encourage our readers to check
out the market commentary as well as the special report on
stop losses versus stop limit orders for Tuesday evening.  We
will leave the stop loss order for the newsletter at 45.00.

Picked on August 30th @ $47.94
Gain since picked:      + 0.21
Earnings Date:           10/17 (not confirmed)




---

Pepsi Co - PEP - close @ Sept. 10th: 46.90  stop: 46.50

Trading sideways for more than two weeks now, shares of PEP
almost stopped us out on Monday but bounced 5 cents from our
stop loss at 46.50.  It remains difficult to predict how 
investors will react when markets open up again on Thursday
and how they will perceive PEP.  Will this be a "safe" stock
to own or will all stock be sold with an unbiased fear before
stability returns to the markets.  In all honesty we expect
to be stopped out of PEP on Thursday morning and our only
concern is whether or not the stock will gap down or not.
Check out tonight's article on stop losses versus stop limit
orders.

Picked on August 10th @ $45.66
Gain since picked:      + 1.24
Earnings Date:            7/19 (not confirmed)





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

AmeriCredit - ACF - close @ Sept. 10th: 39.79 stop: 44.00

Already in a terrible downtrend, shares of ACF could feel even
more pressure as an offshoot of our financial system.  With
the stock under the 200-dma just overhead acting as resistance
we could see investors push shares to $37.50 or even $35.00
before finding enough support.  We encourage our readers to
check out the market commentary and the other special reports
we have for you today and tomorrow.

Picked on September 7th @ $40.00
Gain since picked:        + 0.21
Earnings Date:              N/A  (not confirmed)




---

Fifth Third Bancorp - FITB - close @ Sept. 10th: 54.56 stop: 55.80

Already under pressure the banking sector is likely to feel more
weakness after the tragedy that occurred in New York.  Seeing that
FITB was already putting in lower highs and fighting for support
at $54.00 we wouldn't be surprised to see the stock trade to $50
(or worse) during what is expected to be a very volatile market.

Picked on August 28th @ $59.30
Gain since picked:      + 4.74
Earnings Date:           10/15 (not confirmed)




---

TCF Financial - TCB - close @ Sept. 10th: 42.50  stop: 43.25

Another regional bank that had already been in a steep decline,
TCB could easily suffer more selling pressure as investors try
and digest the impact of the WTC collapse will have on the 
banking industry.  The 200-dma at 41.65 will be acting support
for TCB and once below it we are likely to see shares fall to
$40 and possibly $38 where there is stronger support.

Picked on August 24th @ $47.60
Gain since picked:      + 5.10
Earnings Date:            N/A (not confirmed)





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