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Daily Newsletter, Monday, 10/08/2001

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PremierInvestor.net Newsletter                 Monday 10-08-2001
                                                  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: 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.  




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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

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