PremierInvestor.net Newsletter Monday 10-08-2001 section 1 of 2 Copyright © 2001, All rights reserved. Redistribution in any form is strictly prohibited. The entire newsletter is best viewed in COURIER 10 for alignment ================================================================= To view this email newsletter in HTML format with imbedded charts and graphs, click here: http://www.PremierInvestor.net/htmlemail/100801_1.asp ================================================================= In section one: Market Wrap: Muted Market Reaction to Military Action Market Sentiment: A Cautious Day Play-of-the-Day: Phillip Morris - MO (Bullish) Watch List:.INTC, TXN, AMAT, QLGC, MU, ADBE, BEAS, BMC, ----------------------------------------------------------------- U.S. Market Numbers ----------------------------------------------------------------- MARKET WRAP (view in courier font for table alignment) ----------------------------------------------------------------- 10-08-2001 High Low Volume Advance/Decline DJIA 9067.94 - 51.83 9144.81 9012.30 976 mln 1717/1894 NASDAQ 1605.95 + 0.65 1621.11 1574.65 1.40 bln 1511/1975 S&P 100 544.88 - 4.50 549.38 541.53 Totals 3228/3869 S&P 500 1062.44 - 8.94 1071.37 1056.88 RUS 2000 412.18 - 2.79 415.13 410.25 DJ TRANS 2183.24 - 26.18 2212.78 2148.31 VIX 25.91 + 1.25 37.55 35.88 VXN 66.13 + 2.78 66.76 62.93 TRIN 1.09 Put/Call 0.62 ----------------------------------------------------------------- =========== Market Wrap =========== Muted Market Reaction to Military Action by Jon Farnlof Bombs may be falling on Afghanistan, but they missed Wall Street. The Dow Jones Industrials shook off a steep drop at the open and late-morning gains to end 51.8 points to the downside at 9067.9. The techs managed to squeeze of the slightest of gains to with the Nasdaq Composites closing up 0.65 points at 1605.95. Strong sectors on NYSE were defense, natural gas and some oil stocks. Weak were banks, insurance, retail, biotechs and paper products. Tech strength was across the board with the semiconductors and networkers showing the largest gains. Collectively, the markets reacted to the onset of military action with a collective ho-hum. We saw neither the gains such as those that followed the Gulf War nor the breath-taking drops of the post-September 11th markets. Some of this may be attributed to the bond market being closed on Columbus Day. Since bonds are the piggy bank for big money, this market being closed may have inhibited the ability of large money managers to maneuver either in or out of the equity markets. There are some evidence of this in the volume numbers for the respective markets. Although at 1.42 billion shares traded for the Nasdaq and 1.15 billion for the NYSE, Monday was not overtly light, it was well lower than the 1.5 to 2.5 billion days we've gotten used to over the last three weeks. This could mean a delayed reaction may occur on Tuesday. If this is the scenario, regular readers of Jeff Bailey's musings in this space know to watch bond yields carefully. A sharp drop in yields in the morning could portent severe blues for equities. It could mean money-managers decided to become defensive and sell stocks to chase bonds. More than likely, many money managers were already positioned for military action going into the weekend and thus today's muted reaction can be attributed to them waiting to see how the global reaction to this war will play out. Afghanistan as a nation has the smallest of footprints in the global economy; their only significant export is opium. They have no direct effect on business. More importantly, investors are going to be attuned to the threat of terrorist reprisals and their affect on the US economy. That our economy stood still in the week following September 11th is fresh in everybody's mind. Going into a dismal earnings season with the economic pillar of consumer spending disintegrating, a reprise of the horrors of September 11th could deal a knockout punch to any thoughts that the economy and markets are forming bottoms. However, all is not doom and gloom. Should the US led global alliance succeed in dismantling bin-Laden's organization, investors will then focus on the impact of the President's $60 billion economic stimulus package and nine consecutive Fed interest rate cuts. Enough money is sitting on the sidelines that any positive signs in the November-December economic reports could get all the bulls jumping into the pool. In the shortest term, uncertainty over the war and what companies are going to say in their conference calls should keep bulls on a very short leash. Companies releasing earnings this week include: Motorola, Harley Davidson, Pepsi Bottling, Yahoo, Abbott Labs, Genentech, General Electric and Juniper Networks. Thomson Financial/First Call reported that they project third- quarter earnings are probably going to decline approximately 22- percent. One obvious place longs have been shopping is the defense sector. Since September 11th, General Dynamics (GD)is up 31-percent, Raytheon(RTN) up 47-percent, Lockheed-Martin (LMT) up 27-percent and Level-3 (LLL) up 52-percent. New entrants may want to wait for some profit taking before considering a position. Many of these shares are reaching historically high valuations making them prime candidates for a correction. One overriding concern longs have to consider is that technical analysts do not trust any bottom that has not been tested at least once. This means they will not be advising money managers to do serious shopping until the Nasdaq Composite has tested the September 16th low of 1387, as well as the September 21st lows of 8235 for the DOW Industrials and 965 for the S&P 500. Given the ample sources for markets trashing news, it would be prudent for longs to take advantage of any rally to lighten up on positions that are making them nervous and not get too aggressive with profitable long positions. Short-side players should be equally cautious, as those levels are not too far away and any rebound off of them is likely to be volatile. ================ Market Sentiment ================ A Cautious Day by Russ Moore Market action was limited, to say the least, with nervous investors keeping their hands in their pockets while military action took center stage. Volume came in at a paltry 759 million shares on the NYSE and only 1.14 billion shares on the NASDAQ. The markets were unable to pick a direction leaving the DOW with a loss of –0.6 percent and the NASDAQ with a gain of +0.04 percent. The NDX rose +0.6 percent thanks to an upside performance in the chip sector. Market breadth was negative with losers over winners by a 19/11 margin on the big board, and a 21/13 count on the NASDAQ. Natural gas, oil, and defensive issues ended in positive territory on the broader markets while hardware, software, chip, internet, and networking sectors led the way on the tech side. As the U.S. and its’ allies begin their anti-terrorist campaign, experts are busy trying to calculate the after affects on the market. Previous battles, and Wall Street reactions, are being held under the microscope in an effort to gain some insight as to possible direction going forward. The challenge, of course, is that no two situations are exactly the same, which makes any comparisons suspect at best. Overseas concerns, and the start of earnings announcements are a difficult twosome to overcome for the bulls. The next upside catalyst is hard to envision right now, and that means we are probably headed for several sessions of sideways action until the next big piece of news comes along. VIX Monday 10/08 close: 35.91 VXN Monday 10/08 close: 66.13 30-yr Bonds Monday 10/08 close: CLosed Total Put/Call Ratio: .80 Equity Option Put/Call Ratio: 1.52 Index Option Put/Call Ratio: .67 === NASDAQ 100 Index (NDX/QQQ) 52-Week High: 103.51 52-Week Low: 28.19 Current close: 31.86 Volume/Open Interest Maximum calls: 30/90,231 Maximum puts : 30/85,898 Moving Averages 10 DMA 29 20 DMA 30 50 DMA 36 200 DMA 46 Fibanocci Retracements Relative High: 51.95 (05/22/01) Relative Low: 27.00 (09/21/01) 38% 36.60 50% 39.57 62% 42.59 === S&P 100 Index (OEX) 52-Week High: 834.93 52-Week Low: 491.70 Current close: 544.89 Volume/Open Interest Maximum calls: 600/6,824 Maximum puts : 500/7,547 Moving Averages 10 DMA 535 20 DMA 534 50 DMA 576 200 DMA 630 Fibanocci Retracements Relative High: 680.03 (05/22/01) Relative Low: 480.07 (09/21/01) 38% 556.14 50% 579.65 62% 603.55 === S&P 500 (SPX) 52-Week High: 1530.01 52-Week Low: 965.80 Current close: 1062.44 Volume / Open Interest Maximum calls: 1050/20,697 Maximum puts : 1050/23,933 Moving Averages 10 DMA 1044 20 DMA 1045 50 DMA 1126 200 DMA 1221 Fibanocci Retracements Relative High: 1315.93 (05/22/01) Relative Low: 944.75 (09/21/01) 38% 1086.75 50% 1130.62 62% 1175.23 == DJIA (INDU) 52-Week High: 11,518.83 52-Week Low: 8,235.81 Current close: 9,068.01 Volume / Open Interest Maximum Calls: 100/26,513 Maximum Puts 100/39,766 Moving Averages: 10 DMA 8,891 20 DMA 8,990 50 DMA 9,789 200 DMA 10,381 Fibanocci Retracements Relative High: 11,350.05 (05/22/01) Relative Low 8,062.34 (05/21/01) 38% 9,308.92 50% 9,693.99 62% 10,085.60 == Biotech Index (BTK) 52-Week High: 811.61 52-Week Low: 383.28 Current close: 449.04 Volume / Open Interest Maximum Calls: 520/ 318 Maximum Puts: 440/2002 Moving Averages 10 DMA 451 20 DMA 458 50 DMA 494 200 DMA 546 Fibanocci Retracements Relative High: 811.61 (09/25/00) Relative Low: 383.28 (03/22/01) 38% 546.22 50% 596.57 62% 646.71 == Semiconductor Index (SOX) 52-Week High: 1280.84 52-Week Low: 362.00 Current close: 426.55 Volume / Open Interest Maximum Calls: 450/3,022 Maximum Puts: 390/2,120 Moving Averages 10 DMA 385 20 DMA 420 50 DMA 520 200 DMA 593 Fibanocci Retracements Relative High: 710.78 (05/22/01) Relative Low: 343.93 (09/27/01) 38% 484.50 50% 527.18 62% 570.57 == Pharmaceutical Index (DRG) 52-Week High: 455.28 52-Week Low: 339.49 Current close: 393.06 Volume / Open Interest Maximum Calls: 400/705 Maximum Puts: 360/628 Moving Averages 10 DMA 387 20 DMA 381 50 DMA 388 200 DMA 396 Fibanocci Retracements Relative High: 448.43 (12/29/00) Relative Low: 339.49 (03/22/01) 38% 382.22 50% 395.69 62% 409.03 ***** CBOT Commitment Of Traders Report: Friday 10/05 Weekly COT report discloses positions held by small specs and commercial traders of index futures contracts on the Chicago Board Of Trade. Small specs are the general trading public with commercials being financial institutions. Commercials are historically on the correct side of future trend changes while small specs are not. Extreme divergence between each signals a possible market turn in favor of the commercial trader’s direction. S&P 500 Commercials Long Short Net %Change 9/18/01 406,387 471,823 (65,436) (20.8%) 9/25/01 357,873 407,036 (49,163) (24.9%) 10/02/01 365,200 408,567 (43,367) (11.7%) 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 %Change 9/18/01 172,988 100,531 72,457 (5.6%) 9/25/01 122,613 71,721 50,892 (29.7%) 10/02/01 124,249 73,882 50,367 (1.1%) Most bearish reading of the year: 36,513 - 5/01/01 Most bullish reading of the year: 91,122 - 3/06/01 NASDAQ-100 Commercials Long Short Net %Change 9/18/01 35,497 45,731 (10,234) (8.0%) 9/25/01 26,761 36,812 (10,051) (1.8%) 10/02/01 26,703 37,699 (10,996) 9.4% 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 %Change 9/18/01 22,876 21,702 1,174 (56.6%) 9/25/01 10,699 6,580 4,119 251.0%) 10/02/01 10,918 6,804 4,114 (0.1%) 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 Long Short Net %Change 9/18/01 28,425 15,077 13,348 7.5% 9/25/01 20,013 7,806 12,207 (8.5%) 10/02/01 22,755 10,124 12,631 3.5% Most bearish reading of the year: (8,322) - 1/16/01 Most bullish reading of the year: 8,925 - 5/22/01 Small Traders Long Short Net %Change 9/18/01 7,335 15,044 (7,709) 46.1% 9/25/01 4,530 12,621 (8,091) 4.9% 10/02/01 4,731 11,868 (7,137) (12.1%) Most bearish reading of the year: (7,572) - 5/08/01 Most bullish reading of the year: 1,909 - 1/16/01 Small Specs Commercials S&P 500 (Current) (Previous) (Current) (Previous) Open Interest Net Value +50,367 +50,892 -43,367 -49,163 Total Open Interest % (+25.42%) (+26.19%) (-5.60%) (-6.43%) net-long net-long net-short net-short Small Specs Commercials DJIA futures (Current) (Previous) (Current) (Previous) Open Interest Net Value -7137 -8091 +12631 +12207 Total Open interest % (-43.00%) (-64.11%) (+38.42%) (+43.88%) net-short net-short net-long net-long Small Spec Commercials NASDAQ 100 (Current) (Previous) (Current) (Previous) Open Interest Net Value +4114 +4119 -10,996 -10,051 Total Open Interest % (+23.21%) (+23.84%) (-17.07%) (-15.81%) net-long net-long net-short net-short What COT Data Tells Us ---------------------- Indices:.No significant changes this week although we did see the Commercial players continue to reduce their net-short contracts on the S&P 500. We will wait until the Commercials have moved into net-long positions before we raise the bullish flag.. . Gold:.Another wild reversal took place this week as the Commercials are once again net-short. We have seen gold level off over the last week and it will be interesting to see if this bearish stance by the Commercials, pays off. 9/04 49,839 contracts net-short 9/11 No Data. 9/18 49,456 contracts net-short 9/25 36,638 contracts net-long 10/02 67,122 contracts net-short Data compiled as of Tuesday 10/02 by the CFTC. ========================= Play-of-the-Day (Bullish) ========================= Phillip Morris - MO Close:$50.64 change:+0.48 stop:$49.25 new Original Comments When Selected on August 30th: Company Description: Philip Morris is the world's largest tobacco firm. It owns half of the US tobacco market and the Marlboro name is one of the world's most recognizable brands. It also makes the Benson & Hedges, Parliament, and Virginia Slims brands. Outside of tobacco, Philip Morris owns 84-percent of Kraft Foods, the world's second largest food company that makes leading brands such as Jell-O, Kool-Aid, Maxwell House, and Post cereal. In 2000 the company bought Nabisco, adding brands such as Chips Ahoy, Oreo, and Ritz to Kraft's food portfolio. In addition, Philip Morris owns Miller Brewing, the second largest US beer producer. Fundamentals: Analysts project Phillip Morris will earn $4.05 per share in 2001 and $4.57 in 2002. Last year, the company produced earnings of $3.71 per share. This gives the company a low forward 2001 P/E of 11.81, which is in line even with the industry average P/E of 11.7. Other valuation ratios such as Price/Book, Price/Cash Flow and gross profit margin are also inline with industry averages. Why We Like It: It's tough to go long when Kodi the Bear is on the prowl, but if you do, a company that just fattened its dividend by 9.4-percent should be high on your shopping list. In a world of plunging equity prices getting a safe 4.8-percent with the potential for equity appreciation is not a bad option. More aggressive investors may even consider selling some out-of-the-money calls to earn an additional premium. On Wednesday, Phillip Morris announced shareholders of record on September 17 would receive a quarterly dividend of 58-cents a share. On an annualized basis, this increases their dividend from $2.12 to $2.32 per share and gives MO shares the highest dividend of the 30 companies in the Dow Jones Industrials. For short-term traders, it also means that between now and September 17th, Phillip Morris shares are more likely to go up than down. This bullish momentum is not new. The shares have been rising since bouncing off of $43.05 support on August 16th. An opportunity to take a position at a better price than the $47.94 close may occur on Friday. Although the shares were up strongly in the morning hours to a $48.46 high they did fade somewhat before the close. Although we are unlikely to see significant downward pressure, dips are possible and should be considered buying opportunities. We will start this play with a stop at $45.00, which is just below the $45.80 200-day moving average. Updated Comments: With a handsome and stable dividend, this premier defensive company is attracting many investors looking for a safe haven in this uncertain market environment. On Monday the shares began to pull away from important resistance in the $49.25 to $50.00 range. We see a test of the $54.40 52-week high as a likely next move Picked on August 30th at $ 47.94 Gain since picked + 2.70 Earnings Date 10/17 (Confirmed) ========== Watch List ========== -- Semiconductors -- The chip sector has seen a strong rebound from its October 3rd low near 345. Friday produced a nice intraday bounce giving bulls hope for Monday. Salomon Smith Barney came to the rescue and offered some positive comments on the chip sector which helped drive the group higher by 5%. Here are a few comments on selected stocks: Intel Corp. - INTC - close: 22.24 change: +0.28 WHAT TO WATCH: The mother of all chip stocks, Intel had been trying to hold its ground throughout much of the summer before finally giving in to pressure around the 1st of September. The market reaction to the attacks on Sept. 11th helped propel it to new 52-week lows and, if you're an optimist, a great buying opportunity near $19. Now that the stock is acting like it wants to recover investors might be considering a trade. You'll notice on the chart that INTC is having trouble with resistance at 22.50. This was the bottom in early April (twice) before the stock rebounded with the rest of the market. If shares can overcome this hurdle they will probably forge ahead to what could be much stronger resistance at $26 (see the bottom of the trading range from May through August). Look for INTC to announce earnings on October 16th, 2001. --- Texas Instruments - TXN - close: 28.75 change: +1.64 WHAT TO WATCH: TXN has been posting much better gains than many of its sector-mates and Monday was no different with a 6% gain. It would appear that TXN has managed to finally close above overhead resistance between 28.25 and 28.50 with Monday's late day buying. Volume has not been as strong as it was earlier last week but today's move could be TXN as a technical play on trader's screens around the country. Overhead TXN has its 50-dma at 30.91 and its 200-dma is at 35.53. If the up trend continues we'll likely see some pressure at 32.50. Earnings are expected on October 17th. Keep an eye on the volume and confirm the stock and sector direction. --- Applied Materials - AMAT - close: 33.80 change: +2.25 WHAT TO WATCH: Another big winner for the chip sector was AMAT with a gain of 7.13%. The stock saw resistance at 32.50 last Thursday but today saw the bulls victory over this area with a couple of late day bounces at this level. Again the volume was a little less than we would like for a buy signal and after a 7% gain traders may want to look for a pullback. Overhead AMAT will likely see resistance above $36 and again at $40 which is bolstered by its 50-dma. --- QLogic Corp. - QLGC - close: 28.90 change: +1.40 WHAT TO WATCH: After a painfully slow, water-torture type of decline over the months of August and September, QLGC appears to have finally put in a strong bottom at 17.50. To see it trading at almost $30 should be both encouraging and alarming for traders. Shorts ran for cover last Wednesday with the big move in the NASDAQ and a huge move in QLGC. Since then the rally has continued with large volume coming in to confirm the new bullish up trend. Monday saw the stock bang its head at $30 before pulling back towards the close. The 50-dma is at 31.12 and the combo of it and the $30 level could have QLGC slowing. Having almost doubled in a few days should have bulls cautious but the stock had been so oversold there may be more gains to be seen before the stock runs out of steam. We would be watching for more dips...potentially back to 27.50 or even 25.00. However, if you want to trade the momentum then watch for the close over $30 (or the 50-dma to play it "safer"). Earnings are Oct. 23rd, 2001. Bears could be looking for the SOX to rollover then pounce on any weakness in QLGC if circumstances warrant. --- Micron Technology - MU - close: 21.15 change: +1.09 WHAT TO WATCH: Posting a nice gain on Monday of 5.43%, MU appears to be a bit more oversold than some of its counterparts and is starting to recover again. The month of September saw MU drop from $35 to a low of 16.39 by Sept. 26th. Since then the stock has been slowly building a base under resistance at $20. Friday saw a victory for the bulls with a close over $20 after a failed attempt on Thursday. Monday's move helped confirm the move. We would expect any prolonged rally to see some resistance at $23 but the September drop was so drastic there isn't much overhead resistance beyond that but using a retracement tool one can look for pressure at $23.50, $25.71 and $27.90. Expect earnings on Oct. 23rd. -- Software -- The software sector has seen a similar rebound to the chip sector but failed to show the same sort of strength the semis displayed today. There are still several stocks that traders should keep an eye on. Not listed today are MSFT and VRTS, which were discussed on Friday's watch list. Adobe Systems - ADBE - close: 29.93 change: +1.04 WHAT TO WATCH: ADBE has made a very strong rebound from last week's lows and is bullishly consolidating under resistance at $30. If the tech rally continues, traders should watch for a close over $30 for a potential entry point to go long again. Watch for the 50-dma at 32.62. $28 to $27.50 should be support. --- BEA Systems - BEAS - close: 13.51 change: -0.07 WHAT TO WATCH: On a price per share basis, this stock is a cheaper than ADBE but has still made an impressive rebound from its lows near $9. The stock has established trading support at $12 but is trying to breakthrough resistance at $14. If the bulls are successful then they are likely to encounter more selling pressure at $15, $16 (50-dma), $17 and $18 but each level offers traders a chance to exit plays, tighten stops or look for new entries. --- B M C Software - BMC - close: 14.55 change: +0.25 WHAT TO WATCH: Last Thursday, BMC warned that Q2 earnings would miss expectations. Shares closed positive on the day by a penny after trading down from its intraday highs. The bad news did not affect the previous gains from Tuesday/Wednesday last week as the market probably expects everyone to miss estimates this season. Friday saw a couple of intraday downgrades of the stock but traders pretended not to notice and shares climbed above significant resistance at $14. Monday confirmed the new move up with a dip back to $13.90 before climbing higher. BMC is currently fighting with overhead resistance at $14.70. This was the low on September 10th. The next day the markets opened was the 17th and shares gapped down to $14. Thus, BMC is fighting the gap. Since investors don't appear to care about the bad news the stock might get another boost of buying interest if it can close over this $14.70 level which would be the trigger to go long. If the stock rolls over shares will likely see some support at $14 and 13.50 but the bottom of the recent range has been $12. Trade appropriately but we caution anyone shorting stocks less than $20 bucks. ================================================================= To stop receiving this PremierInvestor.net Newsletter, send email to Contact Support ================================================================= DISCLAIMER ================================================================= This newsletter is a publication dedicated to the education of stock traders. The newsletter is an information service only. The information provided herein is not to be construed as an offer to buy or sell securities of any kind. The newsletter picks are not to be considered a recommendation of any stock but an information resource to aid the investor in making an informed decision regarding trading in stocks. It is possible at this or some subsequent date, the editors and staff of PremierInvestor.net may own, buy or sell securities presented. All investors should consult a qualified professional before trading in any security. The information provided has been obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. PremierInvestor.net staff makes every effort to provide timely information to its subscribers but cannot guarantee specific delivery times due to factors beyond our control. Please read our disclaimer at: http://www.optioninvestor.com/page/oin/aboutus/disclaimer.html ***************************************************************** ADVERTISING INFORMATION For more information on advertising in PremierInvestor.net Newsletter, or any Premier Investor Network newsletter please contact Contact Support. ***************************************************************** Copyright © 2001 PremierInvestor.net. and The Premier Investor Network. Do not duplicate or redistribute in any form.
PremierInvestor.net Newsletter Monday 10-08-2001 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/100801_2.asp ================================================================= In section two: Split Trader Split Announcements: none New Plays: none Play Updates: Stops changed Closed Plays: Jacobs Eng. - JEC Net Bulls New Plays: none Bullish Play Updates: none Bearish Play Updates: none Closed Plays: none Stock Bottom / Active Trader New Plays: none Bullish Play Updates: Stops changed Bearish Play Updates: none Closed Plays: none 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 ================================================================== =============== ST Play Updates =============== ----------------------- Split Candidate Updates ----------------------- Change stop for Chevron -CHV to $86.75 =============== ST Closed Plays =============== ---------------------------- Closed Split Candidate Plays ---------------------------- Jacobs Eng. - JEC - close: 66.11 change: +0.94 stop: 64.25 The assault on Afghan military sites put European markets in a defensive mood and resulted in the Dow Jones lower open affecting JEC's opening price. Pundits speculated that domestic investors were potentially nervous of possible retaliatory strikes here at home. Hopefully, our newly sworn in head of Homeland Defense will be able to act quickly and efficiently in protecting the American public. The PremierInvestor play on JEC was a successful long play. Having picked the stock at 61.21 we saw JEC trade to almost $70 several days later. We had not planned on being stopped out this morning but shares opened at 65.20 and quickly fell to 64.21 stopping us out at 64.25. The good news for investors was the climb back to 67.00 intraday. JEC appears to be building a new base of support at $65 and interested traders should keep their eyes on it for another run back to $70 and beyond. Picked on September 25th @ $ 61.21 Gain since picked: + 3.04 Earnings Date: 11/01 (not confirmed) ================================================================== Stock Bottom / Active Trader (AT) section ================================================================== =============== AT Play Updates =============== ----------------- Bullish Play Updates ----------------- Stops changed: Lockheed Martin - LMT to $46.50 Phillip Morris - MO to $49.25 ================== 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 CBL CBL & Associates 28.32 +0.52 CGO Atlas Air Worldwide 11.25 +0.99 AK Ackerly Group 13.40 +2.40 --------------------------------------- Breakout to Upside (Stocks $5 to $20) --------------------------------------- Ticker Company Name Close Change TLCP Telecorp Pcs 13.54 +3.50 FDRY Foundry Networks 9.41 +1.15 RSTN Riverstone Network 8.34 +2.09 BDAL Bruker Daltronics 18.10 +2.65 SSTI Silicon Storage Tech 5.80 +1.05 --------------------------------------- Breakout to Upside (Stocks over $20) --------------------------------------- Ticker Company Name Close Change LMT Lockheed Martin 49.11 +1.38 GD General Dynamics 94.99 +2.39 RTN Raytheon 36.30 +1.33 SYMC Symantec 47.95 +4.11 QLOGC Qlogic 28.90 +1.40 ----------------------------------------- Breakout to Downside (Stocks over $20) ------------------------------------------- Ticker Company Name Close Change FBF Fleetboston Financial 32.15 -1.50 FITB Fifth Third Bancorp 54.58 -3.17 BUD Anheuser-Busch 39.70 -1.40 STI Suntrust Banks 60.15 -3.62 BBT BB&T Corp 33.06 -1.65 ------------------------------------------------------------ Recently Overbought With Bearish Signals (Stocks over $20) ------------------------------------------------------------- Ticker Company Name Close Change AOL AOL time Warner 31.75 -2.06 FITB Fifth Third Bancorp 54.58 -3.17 BBT BB&T Corp 33.06 -1.65 NFB North Fork Bancorp 27.00 -1.13 BKNG Banknorth Group 20.04 -1.01 ================================================================= To stop receiving this PremierInvestor.net Newsletter, send email to Contact Support ================================================================= DISCLAIMER ================================================================= This newsletter is a publication dedicated to the education of stock traders. The newsletter is an information service only. The information provided herein is not to be construed as an offer to buy or sell securities of any kind. The newsletter picks are not to be considered a recommendation of any stock but an information resource to aid the investor in making an informed decision regarding trading in stocks. It is possible at this or some subsequent date, the editors and staff of PremierInvestor.net may own, buy or sell securities presented. All investors should consult a qualified professional before trading in any security. The information provided has been obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. PremierInvestor.net staff makes every effort to provide timely information to its subscribers but cannot guarantee specific delivery times due to factors beyond our control. Please read our disclaimer at: http://www.optioninvestor.com/page/oin/aboutus/disclaimer.html ***************************************************************** ADVERTISING INFORMATION For more information on advertising in PremierInvestor.net Newsletter, or any Premier Investor Network newsletter please contact Contact Support. ***************************************************************** Copyright © 2001 PremierInvestor.net. and The Premier Investor Network. Do not duplicate or redistribute in any form.
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