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PremierInvestor.net Newsletter                Tuesday 09-25-2001
                                                  section 1 of 2
Copyright  2001, All rights reserved.
Redistribution in any form is strictly prohibited.

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In section one:

Market Wrap: "Mr. Watson, come here!"
Market Sentiment: Cautious Consumers
Play-of-the-Day: QUALCOMM - QCOM (Bullish)

-----------------------------------------------------------------
U.S. Market Numbers
-----------------------------------------------------------------
MARKET WRAP  (view in courier font for table alignment)
-----------------------------------------------------------------
       9-25-2001           High     Low     Volume Advance/Decline
DJIA     8659.97 + 56.11  8695.54  8506.36  1.9 bln   1896/1290
NASDAQ   1501.64 +  2.24  1528.33  1480.69  2.2 bln   1975/1978
S&P 100   517.92 +  4.89   521.00   510.13   Totals   3871/3268
S&P 500  1012.27 +  8.82  1017.14   998.33
RUS 2000  396.18 +  2.39   397.29   392.20
DJ TRANS 2092.80 - 37.19  2150.63  2062.53
VIX        38.87 -  2.46    40.41    38.38
VXN        67.56 -  1.85    69.81    66.34
TRIN        0.99
Put/Call Ratio       .51
-----------------------------------------------------------------

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

"Mr. Watson, come here!"
by Jeff Bailey

On March 10, 1876, Alexander Graham Bell spoke the now immortal 
words that marked the first phrase spoken over what we know as 
the telephone.  Last week we noted two stocks in the Dow 
Industrials that seemed to be bucking the Dow's decline.  Shares 
of SBC Communications (NYSE:SBC) and AT&T (NYSE:T) hadn't 
violated their 52-week lows and SBC was actually setting some 
monthly high..  Some might say that SBC is "the new kid on the 
block" when it comes to telecom history, but something looks to 
be taking place and both stocks are trading higher than their 
September 10th closes (day prior to terrorist attacks).

Here's what an investors portfolio might look like if he/she had 
been financially unfortunate enough to have invested 
approximately $1,000 in each of the 30 Dow Industrials 
components.  As you can see, a $29,396 investment would now be 
worth $26,296.  That's about a 10.5% decline as of today's close.

Dow Industrials Hypothetic Portfolio from Sept. 10 close



As you can see, there are three stocks that are actually trading 
higher today than they were on September 11th.  SBC is up 8.5%, 
WMT is the second biggest gainer (+4.6%) and AT&T (T) is up a 
modest 1.6%.  I've divided the Dow 30 in half (blue line) and 
then tried to quarter out the remainder to try and begin 
separating the wheat from the chaff.

What this allows us to do is get a quick glimpse of how stocks 
have traded since recent events.  This perhaps gives us some hint 
of stocks that have sponsorship and also allows for some early 
sector analysis as well.  There are various ways to begin 
"associating" stocks with various sectors.  Sector analysis need 
not be limited to just "telecom" or "financial."  Traders and 
investors might find correlation in performance based on dividend 
yield or even based on economic sensitivity or consumer 
confidence.

The stock that probably surprises investors most is Caterpillar 
(NYSE:CAT).  How can a heavy equipment stock that sells products 
largely used in construction not be getting hammered if the 
economy is going into the tank?  Maybe it should be getting 
hammered!  When we look at relative strength for shares of 
Caterpillar (CAT) we see a stock where relative strength turned 
positive back in December of last year and remains strong 
relative to the Dow Industrials.

Relative Strength Chart of CAT vs Dow Industrials




Shares of CAT are trading strong relative to the Dow Industrials, 
but I'm going to note that we have seen reversals in relative 
strength in past years around the latter part of the calendar 
year and is something we'll want to keep an eye on.  Should past 
history NOT repeat itself (and the stock continues to trade 
strong relative to the Dow Industrials) then perhaps this gives 
clue that the economy may be near its bottom and a new economic 
cycle is unfolding.  The study of CAT's relative strength chart 
and understanding of how "long-term" relative strength can trend 
may also give us some insight as to how other Dow stocks are 
performing and might perform longer-term (more than 3-months from 
now).

Not long ago, shares of AT&T (T) reversed higher on its relative 
strength chart vs. the Dow Industrials.  This gives hint that the 
stock is beginning to gain favor with investors and a stock that 
"outperforms" the Dow for the next several months.

Relative Strength Chart of AT&T vs. Dow Industrials



Relative strength can be a long lasting event that can be 
benificial for the longer-term investor to be monitoring.  The 
first sign of trouble for AT&T (T) came back in September of 1999 
when its relative strength gave a sell signal.  In September of 
1999, shares of T were trading at the $45 level.  Since that 
time, T has not given a relative strength buy signal.  Currently 
we're seeing the relative strength chart of T trade reverse back 
to a column of X's at 2.07 (price of T ($17.95) divided by Dow 
Industrials (8,659) gives us relative strength) and perhaps AT&T 
(T) now begins to outperform the Dow Industrials longer-term.

Traders and investors trying to build their bullish candidate 
list may want to start with some Dow Industrial components, and 
check their relative strength charts on www.stockcharts.com.  
These charts are free and the relative strength enable button is 
at the bottom of the chart.  They symbol for the Dow Industrials 
on stockcharts.com is $INDU, S&P 500 is $SPX and NASDAQ Composite 
is $COMPQ.  As you will see, T is strong relative to all three 
major indexes.

What to look for in the NASDAQ

The NASDAQ Composite and most four-lettered stocks traded in a 
fairly tight range today.  I think the "swing group" that 
determines direction from here is the biotechs or the 
Biotechnology Index (BTK.X).  The BTK.X managed to finish up 2% 
today and traded in positive ground for all but about 15-minutes.  
The market is till looking for a leadership group and aside from 
some telecom stocks, the Biotechs look to be "last hope" right 
now.  On Friday we thought Oil Service stocks might be the group 
to assert some upside, but they failed miserably today as the Oil 
Service Index (OSX.X) fell 4.7% and broke last week's low.  
Tomorrow we'll be keeping a close eye on the Biotechs to see if 
they can't put together a move to the upside.

Last week's mid-week high for the BTK.X was at the 445 level and 
it will undoubtedly take a move above that level to get things 
going on the upside.  Representative stocks in the group include 
Amgen (NASDAQ:AMGN) and Biogen (NASDAQ:BGEN).  Both stocks had 
gains of 2% today, but the bulk of those gains came in the first 
hour of trading.  From then on, the stocks and the group traded 
sideways.  Both AMGN and BGEN traded inside of Monday's ranges 
(highs and lows) and gives hint that market participants (bulls 
and bears) are beginning to agree on price.  Once one gives in 
and we get a directional move, that's when things get 
interesting.  The Biotech Index (BTK.X) also traded in a fairly 
tight range today.  A break below Monday's low 412 or high of 431 
could give the broader NASDAQ some direction depending on the 
direction of their break.


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

Cautious Consumers
by Jeffrey Canavan

Today's price action wasn't quite as riveting as Monday's, but it 
was enough to keep the bear market rally alive.

Initially Wall Street was greeted with the largest drop in 
consumer confidence since October 1990, but took the news in 
stride.  The Conference Board reported that consumer confidence 
fell to 97.6 from a reading of 114 in August.  A drop was 
expected, but not necessarily one of that magnitude.  

Layoffs are one of the concerns weighing on consumers' mind, and 
Advanced Micro Devices added to those concerns by announcing they 
were cutting 15% of their workforce.  The company will also close 
two factories, and refocus their company around PC processors and 
flash memory devices.  

AMD closed down 7.74%, but the Semiconductor Index managed to 
post a fractional gain.

While consumers may be less confident, they continue to buy 
houses.  The National Association of Realtors reported that 
existing home sales jumped to a record 5.50 million in August.  
That number is expected to taper off in September.

Through it all Dow gained 56 points.  SBC Communications was one 
of the best performing components, as well as beaten down Boeing 
and United Technologies.  Merck and General Motors posted $1.54 
and $1.87 losses.

Dow Jones Industrial Daily Chart




So how high could the Dow rally?  9,000 looks like a reasonable 
target.  That would be a 38.2% retracement of the late-summer 
losses and a nice round number.  That's also the level where 
buyers who jumped in last Monday could get out with minimal 
losses.  Whether short sellers can wait that long to pounce on 
this rally remains to be seen.

Market Volatility Index




Today's mild gains helped to remove some of the fear from the 
market and reduce volatility.  The VIX still remains at fearful 
levels, but is slowly working its way back to normal levels.

Tomorrow's lack of economic data could clear the way for higher 
prices and further reduced volatility, but profit warnings can 
always pose a problem to nervous investors.

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

Market Volatility
    
VIX   38.87  
VXN   67.56   

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

          Put/Call Ratio  Call Volume   Put Volume
Total          0.51        897,137       455,332
Equity Only    0.43        808,967       345,904
OEX            0.95         14,707        13,999
QQQ            0.43         59,403        25,833
 
-----------------------------------------------------------------

Bullish Percent Data

The bullish percent for the Nasdaq-100 has dropped to zero.  That 
means no Nasdaq-100 stocks are currently trading on a buy signal.

           Current   Change   Status
NYSE          18       -      Bear Confirmed
NASDAQ-100     0       -      Bear Confirmed
DOW           18       -      Bear Confirmed
S&P 500       16       -      Bear Confirmed
S&P 100       16       -      Bear Confirmed

Bullish percent measures the number of stocks in an index 
currently trading on a buy signal on their point and figure 
chart.  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  0.86
10-Day Arms Index  0.91
21-Day Arms Index  1.17
55-Day Arms Index  1.26

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      1890           1280
NASDAQ    1864           1836

        New Highs      New Lows
NYSE       19            145
NASDAQ     31            157

        Volume (in millions)
NYSE     1,601
NASDAQ   2,165
-----------------------------------------------------------------

Advisory Sentiment 

Bullish  Bearish  Correction  Net Bullish   Change 
  35.7%    37.6%     26.7%       -1.9%      -15.3%

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: 09/18/01

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

This week's data only reflects trading on Monday and Tuesday, but 
in those two days commercial traders added 47,027 long positions 
and only 29,753 short positions.  That drops their net bearish 
stance by 17,274 contracts.  Small traders on the other hand 
loaded up with 31,441 short contracts.  Right now it looks like 
small traders made the right move, but we shall see next week.

Commercials   Long      Short      Net     % Of OI 
9/04/01      350,626   430,613   (79,987)   (10.24%)
9/10/01      359,360   442,070   (82,710)   (10.32%)
9/18/01      406,387   471,823   (65,436)   ( 7.45%)

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
9/04/01      147,080     62,004   85,076     40.69%
9/10/01      156,500     69,090   87,410     38.75%
9/18/01      172,988    100,531   72,457     26.49%

Most bearish reading of the year:  36,513 - 5/01/01
Most bullish reading of the year:  91,122 - 3/06/01
 
NASDAQ-100

Small traders have gotten more bearish, and are approaching their 
most bearish levels of the year.

Commercials   Long      Short      Net     % of OI 
9/04/01       28,757     38,119   ( 9,362)  (14.00%)
9/10/01       26,784     37,912   (11,128)  (17.20%)
9/18/01       35,497     45,731   (10,234)  (12.60%)

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
9/04/01       12,341     9,806    2,535      11.45%
9/10/01       15,263    12,555    2,708       9.73% 
9/18/01       22,876    21,702    1,174       2.63%

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

Institutions continue to increase their net long position in Dow futures.

Commercials   Long      Short      Net     % of OI
9/04/01       23,459    14,099    9,360     24.9%
9/10/01       25,445    13,033   12,412     32.3% 
9/18/01       28,425    15,077   13,348     30.7%

Most bearish reading of the year: (8,322) - 1/16/01
Most bullish reading of the year: 13,348  - 9/18/01

Small Traders  Long      Short     Net     % of OI
9/04/01        6,952    12,744    (5,792)   (29.41%)
9/10/01        7,460    12,735    (5,275)   (26.12%) 
9/18/01        7,335    15,044    (7,709)   (34.45%)

Most bearish reading of the year:  (7,572) - 5/08/01
Most bullish reading of the year:   1,909  - 1/16/01

COT Commercial Net Position Charts




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

=========================
Play-of-the-Day (Bullish)
=========================

QUALCOMM - QCOM - close: 48.82 change: +1.22 stop: 45.75 *new*

Original Comments When Selected on September 19th: 

Company Description:
Qualcomm created the code-division multiple access (CDMA) standard 
for wireless networks.  CDMA-based networks account for 12-percent 
of the worlds' mobile subscribers.  Qualcomm collects royalties for 
CDMA use and makes CDMA-based products such as chipsets and 
software.   Although, the US is a Qualcomm stronghold, it is 
working hard to expand in Asia, in particular China, off of its 
dominance in South Korea.  This effort got a big boost when China 
Unicom, China's second largest wireless operator, awarded $1.46 
billion in contracts for equipment to build a cdma-based network.  
The Chinese adoption of cdma is seen as crucial for Qualcomm, 
because as it is also critical for the adoption of cdma throughout 
Asia.  Unfortunately, on the heels of the good news was an 
announcement that Verizon Wireless was switching from cdma to a 
rival technology based on wCDMA.  

Fundamentals:
Analysts project the company, which earned $1.05 in the fiscal year 
ended September 2000, will earn $1.04 in 2001 and $1.28 in 2002.  
This gives the company a forward P/E of 43.  

Why We Like It:  
This is a pure traders play.  On Wednesday, Qualcomm shares put in 
a double bottom when they bounced off of the $42.75 session low set 
last April 4th with a dip to $42.60 before closing at $45.00.  For 
short-term traders who think that today's late rally may finally 
spark a 2 or 3-day rally on Thursday, QCOM shares are a good choice 
to consider.  These are volatile shares and wireless stocks are 
showing some strength, so any form of rally should result in a 
quick move to the $53 to $57 range, yet the successful test of the 
April low means that quality support is nearby.  We are starting 
this play with a $42.00 stop, just below the April and Wednesday 
lows.  The volatility of this play means it is for aggressive 
nimble traders only.  Good or bad it won't be around for long.  

Updated Comments:
The wireless companies have been looking stronger on a relative 
basis than most tech sectors.  This means they ought to outperform 
during an up trend.  With a good chance that Monday's rally will 
last for at least a day or two, Qualcomm shares are just the kind 
of play that will take maximum advantage of a bullish market.  But 
be prepared to be aggressive moving out of this play as into it.  
These are volatile shares with the ability to inflict extreme pain 
and pleasure in a very short time frame.  Great for a short-lived 
rally, but tough for the non-nimble.   We are pushing our stop up to $45.00. 

Updated Comments:
A taste of BREW.  No, we're not talking about beer.  QCOM 
announced that Korea Telecom Freetel (KTF), one of the leading
Korean CDMA carriers, was the first to launch data application
services on QCOM's Binary Runtime Environment for Wireless 
applications platform (BREW).  KTF has 5,000 users testing the
service with color LCD handsets.  Users have a host of services
to choose from and the experience includes 3D graphics, down-
loadable applications over the air and streaming video on their
color displays.  It sounds pretty exciting but we believe the
move in QCOM's stock price is related to the continuing bounce
in the markets.  It was a close call today as the stock began
to dip right before noon but fortunately QCOM, like the markets,
found some support and the buyers stepped in again in the last
couple of hours.  Bulls will be hoping that 46.75 might be new
support but 46.00 should be stronger if we see a dip.  Therefore,
we are going to move our stop up to 45.75 protecting us from
any losses (aside from a massive gap down) and allow the stock
room to move.  The good news is the stock closed right at its
high for the day which bodes well for tomorrow morning's open.
We would like to see the stock get to $52 before seeing any 
serious resistance but don't bet on it.  QCOM has always been 
a risky trade since it is prone to volatile swings.  On a side
note, technical traders should be happy to see the MACD is about
to confirm a bullish crossover even though the histogram has 
been forecasting a divergence the last few days.

Picked on September 19th @ $45.00
Gain since picked:         + 3.82
Earnings Date:               N/A  (not confirmed)





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The Premier Investor Network.
Do not duplicate or redistribute in any form.


PremierInvestor.net Newsletter                 Tuesday 09-25-2001
                                                   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/6852_2.asp
=================================================================

In section two:

Split Trader
  Split Announcements: none
  New Plays: Jacobs Engineering Group - JEC (Bullish)
  Play Updates: none
  Closed Plays: none

Net Bulls
  New Plays: none
  Bullish Play Updates: Genentech - DNA, QUALCOMM - QCOM 
  Bearish Play Updates: MedImmune - MEDI
  Closed Plays: none

Stock Bottom / Active Trader
  New Plays: Kinder Morgan, Inc - KMI (Bearish) 
  Bullish Play Updates: MO, RMCI, SZA
  Bearish Play Updates: AmeriCredit - ACF, T. Rowe Group - TROW 
  Closed Plays: Schlumberger - SLB (Bullish) 

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) 

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

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

============
ST New Plays
============

  -------------------------
  New Split Candidate Play
  -------------------------

Jacobs Engineering Group - JEC - close:$61.21 change:+2.06 Stop:$57.50

Company Description:
Jacobs Engineering is one of the big boys of global construction 
along with rivals Bechtel and Flour.  Over 40-percent of company sales 
are generated by engineering and construction projects for 
the chemical, petroleum, and pharmaceutical and biotech industries.
  Public contracts contribute another 35-percent with the US 
government contracts alone, particularly aerospace and defense, 
consisting of 18-percent.  Projects include buildings, process 
plants, manufacturing facilities, paper and pulp plants, highways 
and bridges. Jacobs also provides consulting and plant maintenance 
and operation.  The firm is 13-percent owned by founder and 
chairman Joseph Jacobs.

Fundamentals: 
In the fiscal year ending September 2001, the company earned $2.82 
per share on sales of $3.4 billion.  This year, analysts project 
the company will earn $3.21 per share and $3.70 in 2002. Earnings 
projections have been stable. In the last 90-days, the consensus 
analyst earnings estimate has risen 1-cent.  The company has a 
projected September 2001 P/E of 19.  The industry average P/E is 
22.43.  The company has minimal long-term debt with a cash flow of 
$4.68 per share (industry average is $1.69). 

Why We Like It: 
We like this play for both fundamental and technical reasons.  On a 
fundamental basis, the share are inexpensive in relation to its 
peers with per share cash flow almost three times the industry 
average, yet with a below average P/E.  On technical basis, the 
shares simultaneously bounced off their long-term up trend and 
$57.80 200-day moving average on Monday and then built on that 
rebound with a $2.06 pop on Tuesday.  The bullish momentum is 
confirmed with a rising volume trend. Tuesday's 342k-share volume 
was above the 318k daily average and Monday's 277k traded.  Another 
piece of bullish evidence was a late-day rally that pushed through 
the $60.44 50-day moving average.  The shares seem ready to test 
significant resistance at $65.50.  If they can push through that 
level, the next area of upside resistance should be encountered 
near $70.00.  Our point and figure analysis produced a 6-12 month 
price target of $80.  We will initiate this bullish play by sliding 
a $57.50 stop underneath the 200-dma.. 

Picked on September 25th at $61.21
Earnings Date                11/01 (Not Confirmed)





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

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

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

Genentech - DNA - close: 40.45 change: +1.45 stop: 38.50 *new*

DNA had us worried yesterday.  While most of the market was
off on a bullish buying spree, DNA was trading down and lost
88 cents on Monday.  The BTK.X also failed to participate in
the rally on Monday which was the main culprit for DNA's 
lackluster performance.  Fortunately, the stock closed in the
green today, up 3.71%, out performing the biotech sector's
+1.99%.  We feel positive that the stock close above the $40
level but not very excited about its overall performance these
last two days.  We would have expected the stock to be trading
closer to $42 by this time.  We would continue to urge caution.
The NASDAQ's close over 1500 is a good sign but it can only make
this claim by the narrowest of margins.  The BTK bounced (again)
at the 415 level while the S&P500 bounced at 1000 and the
Dow bounced at 8500 intraday.  You can bet the bulls are
hoping the rally continues on Wednesday.  From a more practical
standpoint, we would look for shares of DNA to close above
the $42 level to really confirm a new trend up and this may
be a potential entry point for less aggressive traders.
We are going to raise our stop up a notch to 38.50 and save
ourselves a dollar if it turns against us.

Picked on September 20th @ $41.20
Gain since picked:         - 0.75
Earnings Date:               N/A  (not confirmed)




---

QUALCOMM - QCOM - close: 48.82 change: +1.22 stop: 45.75 *new*

A taste of BREW.  No, we're not talking about beer.  QCOM 
announced that Korea Telecom Freetel (KTF), one of the leading
Korean CDMA carriers, was the first to launch data application
services on QCOM's Binary Runtime Environment for Wireless 
applications platform (BREW).  KTF has 5,000 users testing the
service with color LCD handsets.  Users have a host of services
to choose from and the experience includes 3D graphics, down-
loadable applications over the air and streaming video on their
color displays.  It sounds pretty exciting but we believe the
move in QCOM's stock price is related to the continuing bounce
in the markets.  It was a close call today as the stock began
to dip right before noon but fortunately QCOM, like the markets,
found some support and the buyers stepped in again in the last
couple of hours.  Bulls will be hoping that 46.75 might be new
support but 46.00 should be stronger if we see a dip.  Therefore,
we are going to move our stop up to 45.75 protecting us from
any losses (aside from a massive gap down) and allow the stock
room to move.  The good news is the stock closed right at its
high for the day which bodes well for tomorrow morning's open.
We would like to see the stock get to $52 before seeing any 
serious resistance but don't bet on it.  QCOM has always been 
a risky trade since it is prone to volatile swings.  On a side
note, technical traders should be happy to see the MACD is about
to confirm a bullish crossover even though the histogram has 
been forecasting a divergence the last few days.

Picked on September 19th @ $45.00
Gain since picked:         + 3.82
Earnings Date:               N/A  (not confirmed)





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

MedImmune - MEDI - close: 33.01 change: -0.53 stop: 34.50 

Warning!  Bearish traders need to be on the alert.  Even though
shares of MEDI and the biotech sector have really failed to
join the rest of the market in a rebound rally the downtrend
appears to be slowing down quickly.  If you have not already
taken profits we would encourage traders to do so now.  We've
lost a dollar since the latest update but the play still stands
with an 18% drop since we picked it as a short.  Fortunately,
MEDI has been stuck in a trading range between $32 and $34
with the gap down on Friday morning to $30.  With our stop
at $34.50 we're doing okay but there is no telling how long
it will last.  Our concern is bolstered by what appears to
be a bullish divergence in the MACD of both MEDI and the BTK.
The main MACD trend is still strongly negative but the histogram
has shown a divergence for two days in a row.

Picked on August 28th @ $40.46
Gain since picked:      + 7.45
Earnings Date:           10/24 (not confirmed)





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

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

  ---------------
  New Short Plays
  ---------------

Kinder Morgan, Inc - KMI - close:$50.00 change:-1.37 Stop:$52.75

Company Description:
Kinder Morgan is a big player in natural gas.  It was formed in 
1999 through a merger of KN Energy and Kinder Morgan.  KMI operates 
more than 30,000 mile of natural gas pipelines throughout the US 
and also sells gas directly to 225,000 Midwest customers.  It is 
getting into the power generation business by building natural gas 
power plants along its pipelines.  Through a subsidiary Kinder also 
transports coal and coke through 30 company operated bulk 
terminals.

Fundamentals: 
Last year, the company earned $1.28 per share on sales of $2.7 
billion.  This year, analysts expect the firm to earn $1.88 per 
share and $2.48 in 2002.  The earnings estimate trend has been 
mixed with one brokerage raising their estimate in the last 30-day 
and another lowering theirs.  The company has a forward 2001 P/E of 
26, which is significantly higher than the industry average P/E of 
12.  Although the company has strong cash flow of $2.57 per share, 
it is lower than the industry average of $3.66.

Why We Like It:
Kinder Morgan is a well-managed company with good fundamentals.  
However, as long as the price of natural gas keeps going lower, KMI 
shares are going to keep getting hammered.  Since the beginning of 
the year, the December Natural Gas futures have dropped from a high 
of $6.10 to Tuesday's $2.69 close.  KMI shares after banging up 
against $60 several times in the March, April, May timeframes have 
weakened considerably.  On September 19th the shares plunged 
through their 50 and 200-day moving averages.  They then attempted 
to consolidate for a few trading sessions before falling off the 
ledge with a $1.37 one-day loss on Tuesday.  Of particular 
significance, Tuesday's close was the lowest since late March.  
Traders on Tuesday evidently felt the slide will continue, an 
intraday chart of the shares shows that after an initial 44-cents 
gain following the opening bell to $51.81, longs displayed nary a 
pulse for the remainder of the trading session.  Volume is 
confirming the bearish momentum as 1.3 million shares were traded 
on Tuesday, well in excess of the 620k daily average.  Going 
forward, the shares will likely test the next levels of downside 
support at $47.25 and $43.00.  We will start this play with a 
$52.75 stop, which is just above recent session highs.   

Picked on September 25th at $50.00
Earnings Date                10/17 (Not Confirmed)





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

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

Phillip Morris - MO - close: 47.04 change: -0.33 stop: 45.00

Phillip Morris continues to hold above support at $46.  Yesterday MO 
gained 70 cents, but gave back 33 cents of that today.  Since September 
11th this stock has only lost $1.11.  That's nice, but now we want see 
it start moving higher.

Picked on August 30th at $47.94
Gain since picked:        -0.90
Earnings Date            10/17/01 (unconfirmed)




---

Right Management - RMCI - close: 26.15 change: +0.65 stop: 24.00 NEW

Right Management had another good day, gaining 2.54%.  After two days 
it looks like $25.50 is setting up as a support level.  For now we'll 
just raise our stop to $24.00 to remove some of our risk.

Picked on September 20th at $24.70
Gain since picked:           +1.45
Earnings Date                  N/A




---


Dean Foods, Suiza's acquisition target, reported that first quarter 
earnings fell 50%, but that was mostly due to merger related costs.  
Sales rose to $1.14 billion from $1.05 billion a year ago, and Dean 
Foods confirmed their estimates for the rest of the year.

Suiza gained another 94 cents today, keeping a six-day winning streak 
alive.  The breakaway gap that formed on Monday is still open, and 
should offer support going forward.  We are raising our stop to $59.40.

Picked on September 19th at $57.01
Gain since picked:           +5.04
Earnings Date                  N/A





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

AmeriCredit - ACF - close: 30.10 change: +0.30 Stop: 31.00

AmeriCredit didn't participate in Monday's rally, and only gained 
30 cents today.  While we haven't been stopped out yet, ACF 
continues to hover just below our stop. If we are stopped out, at 
least we lock in some nice gains. 

Picked on September 7th at $40.00
Gain since picked:          +9.90
Earnings Date                 N/A




---

T. Rowe Group - TROW - close: 28.45 change: +0.80 stop: 30.50

We didn't like the fact that TROW was able to climb above 
resistance at $28, but the stock did fail to take out yesterday's 
high.  Our stop is still $2 away from being hit, but it would be 
nice if TROW couldn't take out $28.63.

Picked on September 20th at $27.57
Gain since picked:           -0.88
Earnings Date               10/19/01 (unconfirmed)





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

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

Schlumberger - SLB - close: 41.94 change: -2.74 stop: 43.00

Oil stocks just can't catch a break and we were stopped out of 
our Schlumberger short play.  The perception that a global 
economic slowdown will reduce the demand for oil overpowered the 
fact that these stocks are oversold and due for some relief.  
Crude oil prices are at 22 month lows.

Picked on August 30th at $47.94
Gain since picked:        -4.94
Earnings Date               N/A





==================
  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
NFS       Nationwide Financial Services 37.73  +0.61
ORI       Old Republic International    23.60  +0.61
CEI       Crescent Real Estate Eq Trust 21.18  +1.16
PHM       Pulte Homes                   30.17  +0.87
RNR       Renaissance Holdings          85.95  +1.55

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

Ticker    Company Name              Close  Change
CNC       Conseco Inc                7.40  +1.21
DVA       Davita Inc                19.58  +1.08
LTXX      Ltx Corp                  13.80  +1.10
KOPN      Kopin Corp                10.65  +1.72
UAG       United Auto Group Inc     14.25  +2.45

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

Ticker    Company Name              Close  Change
WMT       Wal-Mart Inc              48.20  +1.12
SBC       Sbc Communications        47.15  +2.09
GSK       Glaxosmithkline Plc Inc   52.51  +1.16
VZ        Verizon Communications    53.95  +1.95
MMC       Marsh & McLennan Cos      88.66  +2.31

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

Ticker    Company Name              Close  Change
UN        Unilever NV               52.14  -1.18
MRK       Merck & Co                62.45  -1.54
CHV       Chevron Corp              79.70  -1.40
SLB       Schlumberger              41.94  -2.74
DC        First Data Corp           54.77  -3.18

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

Ticker    Company Name              Close  Change
none

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