Option Investor
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Daily Newsletter, Friday, 10/19/2001

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PremierInvestor.net Newsletter          Weekend Edition 10-19-2001
                                                    section 1 of 3
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In section one:

Market Wrap: Stocks make late session comeback
Market Sentiment: Investor Sentiment Looks Moderately Bullish
Play-of-the-Day: Bearish Crossover 
Watch List: OSIP, PFE, CRXA, NVDA, GILD, JHF

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U.S. Market Numbers
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MARKET WRAP  (view in courier font for table alignment)
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       WE 10-19         WE 10-12          WE 10-7          WE 9-28
DOW     9204.11 -140.05  9344.16 +224.39  9119.77 +272.56  +611.40
Nasdaq  1671.31 - 32.09  1703.40 + 98.10  1605.30 +106.50  + 75.61
S&P-100  553.80 -  6.98   560.78 + 11.40   549.38 + 16.28  + 41.40
S&P-500 1073.48 - 18.17  1091.65 + 20.27  1071.38 + 30.44  + 75.14
W5000   9894.89 -154.23 10049.12 +212.01  9837.11 +274.18  +662.48
RUT      425.70 -  2.89   428.59 + 13.62   414.97 + 10.10  + 25.98
TRAN    2174.28 - 60.45  2234.73 + 25.31  2209.42 + 15.43  +139.15
VIX       35.84 -   .61    36.45 +  1.79    34.66 -   .53  - 13.08
VXN       69.28 +  3.30    65.98 +  2.63    63.35 -  1.84  - 12.54
TRIN       1.19             1.08             1.14              .73
TICK       +342             +283             +290             +995
Put/Call    .80              .76              .96              .61  
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WE= week ended

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


Stocks make late session comeback

This afternoon we mentioned that it was tough to know for certain 
if stocks were falling due to option expiration and by sessions 
end traders/investors are wondering if late session rally might 
have been helped along by expiration.

We never know for sure, but options expiration Friday's can 
provide some swings and we saw that today.  What I liked about 
the move is something we've been alluding to in recent weeks as 
it is related to the Biotechs.  In late September the 
Biotechnology Index (BTK.X) appeared to be consolidating and 
trying to put in a base, while the broader indexes were falling.  
Then on September 27th, the BTK.X jumped 6% and looked to pull 
the NASDAQ out of a decline.  Today's late session reversal was 
helped along by the BTK.X as the index finished with a nice gain 
of 2.3% to close back above the 500 level at 501.

There are a couple of things I find interesting here and it can 
be relatively prevalent in other sectors and stocks.

Biotech HOLDRS (BBH) - last five months




Fitted retracement on the Biotech HOLDRS (AMEX:BBH) from the 
March 22, 2001 low of $92.51 and "fit" near the April 11th close 
(not shown on chart) and July 16th close near $110 helps traders 
define a range.  Since the Sept. 21st low of $101.31 (5 cents 
below our 80.9% retracement level) it sure looks like the MARKET 
has been walking this basket of stocks higher.  I've also marked 
three different points on the chart where past option expirations 
have resided.  The biotech HOLDRS trade option in increments of 
$5.  Only today's close at $120.72 and the August 17th close at 
$115.71 are right at a strike price.  Two other option expiration 
(07/20 and 09/21) had the BBH closing almost smack-dab in the 
middle of option strike prices where both the put and call option 
on either side of the close would have expired worthless.

So, what's interesting about all of this?  Look at today's action 
in the Biotechnology HOLDRs (BBH) options.  Note where the 
largest amount of open interest was (open interest is the number 
of contracts that remained open at the beginning of today's 
trading that had not been closed out), then look at where the 
bulk of today's action was as indicated by volume.

Biotech HOLDRs Put/Call options from $110-$125 strike





Going into today's trading, the bulk of open interest on the call 
side of things (giving the trader that bought the contract the 
right, but not the obligation to buy) was at $110 and $120, with 
the heaviest open interest at $120.  The bulk of open interest on 
the put side was at the $110 level.  With the BBH opening for 
trading this morning at $117.65, you can see who was looking like 
winners and who might end up losers by sessions end.

The bulk of open interest if we total everything had more 
interest on the call side of things (the RIGHT to buy at stated 
price if you bought the option and OBLIGATION to sell at stated 
price if you sold the call option naked).  You see, those 
positions still open in the $110 calls (4,085 contracts still 
open) was "naked" (obligated to sell at $110, less any premium 
received when sold naked) found themselves at a potential loss 
today if the BBH closed above $112.60.  We know this as we take 
the strike price of $110 and add on the contract traded low of 
$2.60 (the low high in the graphic above is today's low/high not 
contract low/high for duration).  

With the BBH trading $116 today, what most likely happened was 
that those traders/investors "naked" the $110 calls had to do 
something since they were going to have to DELIVER BBH stock at 
$110.  It didn't make much sense to buy back the option as their 
was some premium still in the options so the move most likely 
came from the underlying BBH.

What about those traders perhaps "naked" the Oct. $120's?  That's 
where the bulk of open interest was at.  Imagine what there mood 
was when the BBH broke above the $118 level!  "Oh no... this 
bugger's going to move above $120 and I'm naked!"  

Now here it perhaps made sense to buy back those calls and cover 
the "naked" position.  Why?  Because the cash outlay was much 
less and there was a lot more to lose on a percentage basis!  The 
all-time contract high for the Oct. $120's was $50 and as 
recently as October 16th these calls were trading for $5.  Note 
today's contract low in the BBH Oct $120's was 10 cents and the 
contract high today was $1.15.  Wow!  That's a heck of a move in 
percentage terms, but compared to risking a move to $125 it was 
time to lock in gains on any "naked" calls or save positions that 
you didn't want to lose that you may have written "covered" calls 
on ("covered" calls are when you own the BBH and have sold a call 
against it to generate some income for the account).  

Look at the volume in that contract!  3,152 contracts traded, 
which was about 69% of the open interest.  That quite a bit of 
action relative to open interest and enough to get a nice little 
rally going.

OK... enough about option expiration, but it perhaps gives 
traders and investors an idea of why option expiration Friday's 
can provide some unexpected action (up or down).  Like I've said 
before, I've seen stock move 20% in a matter of hours when a 
large option position was unwound just before option expiration.

Weekly notes

Now comes my favorite time of the week.  Time to step back and 
look at the bigger picture and our Dow Industrials portfolio.

The broader market indexes were not able to mount a fourth 
straight weekly gain, but the disappointments were small 
considering all the "anthrax scares" that were in the media this 
week.

For the week, the NYSE Composite (NYA.X) fell 1.4% and the Dow 
Industrials declined 1.5%.  The S&P 500 Index (SPX.X) fell 1.6% 
and the S&P 100 (OEX.X) slid lower by 1.2% (make small notation 
that larger capitalized fell slightly lesser than the 500).  The 
more volatile NASDAQ Composite (COMPX) fell just 1.8%, but the 
narrower NASDAQ-100 (NDX.X) fell 3.3%, giving back some of the 
prior week's 9.5% gain (nothing wrong with a little profit 
taking).  The small caps performed the best on a relative basis 
as the Russell 2000 Index (RUT.X) fell just 0.7%.

Dow Industrials Hypothetical Portfolio from Sept. 10 close





Last Friday we had 15 stocks in the Dow Industrials (INDU) 
portfolio showing gains above their September 10th close (day 
prior to terrorist attacks in U.S.), but this week we lost 5 
stocks.  Our green line moves higher and per last week's analogy 
of an instrument gauge the movement of the green line higher than 
the flat-line (red) has the nose of the plane turning lower.

Once gain, I've labeled the left hand column with number's 1-30 
and the numbers depict last Friday's finishing order.  Those 
numbered in red show the stock moving either side of our 
horizontal red line.  

Notable Upside

Johnson and Johnson (NYSE:JNJ).  We mentioned last Friday in 
"Notable movements to downside" that JNJ was one stock to keep an 
eye on for a bullish move higher should the market become 
defensive.  With this weeks "anthrax scare" the stock recouped 
lost ground and got back above the flat-line (red) and moved from 
#16 to #5 this week.  The stock posted a nice 5.5% gain this week 
and closed at a new 52-week high.  We also mentioned shares of 
Proctor Gamble (NYSE:PG) as a potential stock to trade in a 
"defensive" environment, but that stock moved up just 2 slots to 
#17 this week and lost 4 cents on the week.  

In last Friday's wrap, we also made the tie among "defensive" 
with Suiza Foods (NYSE:SZA).  That stock didn't disappoint our 
analysis as the stock gained 2.7% on the week, with the bulk of 
the gains coming today with a 3.36% jump to close at $61.09.

Suiza Foods - last seven months





Shoot!  We listed Suiza Foods (NYSE:SZA) as our "play of the day" 
on PremierInvestor.net for Wednesday.  We had everything right 
except our stopping point of $57.90 that day.  As you can see, 
the stock came right down to 50% retracement bracket of $57.71 
and the stock traded $57.75.  I think what happened is that there 
were a lot of "stop loss" orders lined up just under the recent 
lows of $58.39, the specialist saw all those orders lined up, 
brought the stock down, triggered the stops, then higher she 
goes!  That's one thing I "hate" about stops on listed stocks 
("listed stock" is one that trades on the NYSE or AMEX).  Your 
order gets placed in the specialist's "book" and the entire world 
sees you're a seller at $57.90.  On a relatively thinly traded 
stock like Suiza is, the specialist is looking for any type of 
liquidity he/she can find and not opposed to letting the stock 
come in to trigger some stops to provide some liquidity for a 
bullish institutional order.

Don't believe me?  It happens.  Notice how SZA even has had a 
tendency to just undercut the 50-day MA (now four times).  
Believe you me.... the specialist knows where that 50-day moving 
average is, where the retracement levels are and where all the 
stops are.  Lesson.... we need to give listed stocks that don't 
trade 5 million shares a day a little more room that we did in 
Suiza.

What subscribers do think, is that there's something to this 
"defensive" stock stuff and hopefully the Dow Industrials 
portfolio reviews each weak are helping.

Microsoft (NASDAQ:MSFT) moved up to #9 from #18 and made a nice 
pre-earnings run.  I mentioned the stock in last Friday's wrap 
and didn't feel at that time that the prior weeks loss of field 
position from #9 to #18 was anything more than profit taking and 
being held back by that weeks "anticompetitive" concerns coming 
out of Europe.  While the stocks "field position" improved 
markedly, this weeks 2.6% gain doesn't impress me that much 
considering the perceived risk associated with holding the stock 
during earnings.  Microsoft battled its 50-day moving average all 
week, and that downward trending 50-day moving average has me 
cautious on the stock at this time.  If there's any reason to be 
bullish Microsoft at this point, its because Microsoft's relative 
strength chart is in a column of X's vs. the Dow Industrials and 
the S&P 500.  In fact, it's relative strength chart is back on a 
"buy signal" vs. the SPX and tells us the stock may be coming 
back into favor once again.

Microsoft RS vs. S&P 500





The relative strength chart from www.stockcharts.com shows us 
that relative strength for MSFT has now given a buy signal and 
indicates the stock has started to outperform the S&P 500 on a 
more meaningful basis.  Remember that relative strength doesn't 
tell us about price direction as price movement is "relative" to 
the index we're measuring against.  What it does tell us is if a 
stock is gaining favor or losing favor among the bulls.

With MSFT looking a bit range bound near-term, I just don't see 
the catalyst at this point for a meaningful move higher.  I say 
this now and want to monitor this "belief."  Our retracement 
bracket from $73.69 to $41.50 defines this summer's highs to the 
December 2000 lows and puts the 50% retracement at $57.59.  The 
stock finished today's session at $57.90.  When we assess 
risk/reward from current levels, we're left with 61.8% 
retracement as potential support at $53.79 and 38.2% retracement 
at $61.39 as a near-term bullish target.  With RS on a "buy 
signal" I'm leaning toward the bullish side, but entry at this 
point is 50/50 so I'm looking elsewhere.

If the S&P 500 can get back above the 1,082 level, then I'm 
thinking that MSFT is going to be doing quite well.  It's a BIG 
stock and really influences, or its price action can really be 
influenced by market psychology, but I'd be more comfortable as a 
bull if the SPX were trading back above the 1,082 level.  

Notable Downside

Both Caterpillar (NYSE:CAT) and International Paper (NYSE:IP) 
moved below the red line this week.  Both moved lower after 
encountering their 200-day moving averages in recent sessions and 
that looks to be their technical levels of resistance.  

I consider both of these stocks as "deep cyclicals" on a general 
scale.  On a more macro scale, CAT is categorized as "heavy 
equipment" and IP is categorized as "forest/paper product."  Each 
of these three "groupings" are very sensitive to economic growth 
and I want to see some type of resurgence in strength or 
stability from here.

We've got enough charts in this update, but what sticks out to me 
is that both of these stocks rallied from their lows and ran 
smack-dab into their 200-day MA's and rolling 50-day MA's.  These 
moving averages were undoubtedly bullish targets from the lows 
and served as levels to lock in some profits.  

CAT's relative strength chart remains in a column of X's vs. the 
Dow Industrials as it turned into a column of X's back in 
December of 2000.  Even the decline from the summer highs of $55 
to the recent lows of $40.31 didn't have the stock reversing into 
a column of O's.  Let's face it, the rally from $41 to $50 was a 
nice percentage move (21% gain) for such a big stock that is 
economically sensitive.  I'd also take SPECIAL note that CAT's 
rally came right up to its bearish resistance trend at $50 on the 
point and figure chart.  If long, I'd be writing covered calls 
and working down my cost basis in the stock at this time.

IP is in the same boat as CAT technically.  Relative strength vs. 
the Dow Industrials remains in a column of X's and turned 
positive back in June.  The reason relative strength has been so 
strong is that in June, IP was trading $40, but the Dow 
Industrials was up at 11,000.  Since that time, IP has declined 
just 12%, while the Dow Industrials is down 16%.  Again... I'd be 
looking to sell covered calls on strength near $38.

Next week

One Dow stocks I think its time to "put up or put away" is shares 
of SBC Communications.  The stock was at the top of our leader 
board for two weeks after the terrorist attacks and made a nice 
run, but just got overextended. 

If you've been following our Dow Portfolio, you noticed we liked 
AT&T (NYSE:T) when it was a laggard and used SBC's strength to 
think that AT&T would gain.  That's exactly what happened as T 
rose from the $17 level to $20 in about 8 sessions.  Yes, it was 
"just" $3, but that was also a 17% move.  

Since that time, we've seen SBC pull back and this week T finally 
started to come under some selling pressure as profit takers 
finally gave up on a move above $20.  

Now we've seen SBC trade back off the $47 level to $43 and start 
to firm up the past three sessions.  This week I look for a move 
higher and that move could be bold should the stock close above 
$44.19, which is the 200-day MA and just above our 50% 
retracement bracket at $43.93.  I've now got a "fitted" 
retracement on SBC from $38.38 to $49.49.  This puts 61.8% 
retracement at $42.62 (give or take a dime... see Suiza Foods) 
and SBC is now at a good level of technical support for an 
excellent risk/reward trade.  The relative strength chart for SBC 
vs. Dow Industrials is in a column of X's right now, but would 
reverse into a column of O's on any further weakness in the stock 
if the Dow were to hold firm or move higher.

I like the risk/reward for sing-trader's at current levels with a 
stop just below at $41.90.  The point and figure chart gives us a 
bullish vertical count of $54 as a longer-term target.  Look for 
a close above the 200-day MA as a reason to be looking long.  If 
institutions like this one over the longer-term, they should be 
very close to current levels of trading and topping of their 
tanks for the next leg higher.

Be willing to take profits when you get them!

I don't care if I've got profits from a bearish trade or bullish 
trade.  If I get more than 7% in a relatively short amount of 
time, I'm snugging up stops!

In the current market environment I think it is somewhat 
"foolish" to be thinking... "That's it, I bought the bottom or I 
shorted the top."  Part of our efforts in following the Dow 
Industrials like we're doing is to show you how much rotation 
takes place.  ONLY Wal-Mart (NYSE:WMT) has held on to the top 
spot for so long and this stock becomes a BIG, BIG, BIG key to 
how the Dow Industrials plays out next week.

We've got some components in the Dow that have been rotating 
around and WMT's ability to stay strong near the $53 level has 
allowed some rotation to take place without the Dow Industrials 
showing sharp losses.

The reason I feel WMT is so important right now, is that the Dow 
Industrials are so key in MARKET psychology.  With daily media 
reports of anthrax, investors are jittery.  However, when they 
can look up at the Dow Industrials that holds this nations 
largest stocks and sees her holding in tough, it can have a 
calming effect on their emotions and keep investors from pulling 
the plug.  

Immediately after the terrorist attack, I felt we needed to find 
a "leader" and monitor that leader.  There's no question at this 
point that Wal-Mart has been the leader and equity bulls want to 
see this stock hold up, or at least see another stock in the top 
tier take its place with a bold move higher.

Have a great weekend!

Jeff Bailey
Senior Market Technician


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

Investor Sentiment Looks Moderately Bullish
Russ Moore

A late day tech rally carried the major indices in to positive 
territory, on a rather lackluster expiration Friday.

The NASDAQ started picking up steam in mid-afternoon and 
continued into the close as the tech index finished with a +1.1 
percent gain. The big cap NDX added +1.3 percent. The DOW 
struggled for most of the session due to weakness in financials 
and transportation however, the NASDAQ rally spilled over onto 
the blue chip index giving it a gain of +0.4 percent.

Volume was soft with 1.26 billion shares trading on the NYSE and 
1.58 billion moving on the NASDAQ. Advancers put one in the win 
column with a 17/14 victory on the big board and a 20/15 decision 
on the NASDAQ.

Broader markets saw natural gas, oil service, biotech, retail, 
utility, and consumer sectors on the rise while chip, hardware, 
software and storage areas were strong in the tech arena.

The Consumer Price Index was on the rise with a gain of +0.4 
percent versus the +0.3 percent expected. The increase is not 
seen as a major threat to inflation and should not have any 
impact on the next FOMC decision.

Today was the first day in awhile that investors were not 
distracted by non-market events. I expected, as noted in last 
night’s market sentiment, that a short-term rally was in the 
cards as soon as outside events i.e. Anthrax news, was relegated 
to the background. We didn’t get that rally today, however, I 
still believe that investor sentiment is moderately bullish and a 
rally is not too far off.


VIX 
Friday 10/19 close: 35.84


VXN
Friday 10/19 close: 69.28


30-yr Bonds
Friday 10/19 close: 5.36


Total Put/Call Ratio: .80


Equity Option Put/Call Ratio: .68


Index Option Put/Call Ratio:  1.81


===

NASDAQ 100 Index (NDX/QQQ)
52-Week High: 103.51
52-Week Low:   28.19
Current close: 33.55

Volume/Open Interest
Maximum calls: 34/34,167
Maximum puts : 32/40,032

Moving Averages
 10 DMA 33
 20 DMA 31
 50 DMA 34
200 DMA 44

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: 553.80

Volume/Open Interest
Maximum calls: 580/1,830
Maximum puts : 500/6,131

Moving Averages
 10 DMA  554
 20 DMA  543
 50 DMA  565
200 DMA  624

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: 1073.48

Volume / Open Interest
Maximum calls: 1100/16,096
Maximum puts : 1050/18,817

Moving Averages
 10 DMA 1079
 20 DMA 1059
 50 DMA 1104
200 DMA 1210

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:  9,204.11

Volume / Open Interest
Maximum Calls: 94/21,539
Maximum Puts   92/20,364

Moving Averages:
 10 DMA  9,244
 20 DMA  9,045
 50 DMA  9,576
200 DMA 10,321

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: 501.11

Volume / Open Interest
Maximum Calls: 520/  152
Maximum Puts:  460/1,605 

Moving Averages
 10 DMA 486
 20 DMA 467
 50 DMA 489
200 DMA 539

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: 423.82

Volume / Open Interest
Maximum Calls: 450/ 345
Maximum Puts:  400/ 424

Moving Averages
 10 DMA 438
 20 DMA 410
 50 DMA 490
200 DMA 587

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: 395.84

Volume / Open Interest
Maximum Calls: 380/100
Maximum Puts:  360/254

Moving Averages
 10 DMA 395
 20 DMA 389
 50 DMA 389
200 DMA 394

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 10/19
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 
10/02/01     365,200   408,567   (43,367)   (11.7%)
10/09/01     369,049   407,804   (38,755)   (10.6%)
10/16/01     378,866   415,289   (36,423)   ( 6.0%
 
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
10/02/01       124,249    73,882    50,367    (1.1%)
10/09/01       122,292    74,539    47,753    (5.2%)
10/16/01       124,568    73,779    50,789     6.3%
  
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 
10/02/01      26,703    37,699   (10,996)    9.4%
10/09/01      24,662    38,020   (13,358)   21.5%
10/16/01      27,398    40,397   (12,999)   (2.7%)

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
10/02/01       10,918     6,804    4,114      (0.1%)
10/09/01       11,948     7,012    4,936      20.0%
10/16/01       12,901     6,893    6,008      21.7%

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 
10/02/01      22,755    10,124   12,631      3.5%
10/09/01      24,873    10,194   14,679     16.2%
10/19/01      25,402    10,267   15,135      3.1%

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
10/02/01       4,731    11,868    (7,137)    (12.1%)
10/09/01       3,517    12,294    (8,777)     23.0%
10/16/01       4,514    12,104    (7,590)    (13.5%)
 
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        +50,789     +47,753        -36,423     -38,755

Total Open
Interest %       (+25.61%)  (+24.26%)     (-4.59%)   (-4.99%)
                 net-long   net-long      net-short  net-short


                     Small Specs             Commercials
DJIA futures     (Current) (Previous)    (Current) (Previous)
Open Interest
Net Value          -7,590     -8,777          +15,135    14,679
Total Open
interest %       (-45.67%)    (-55.51%)      (+42.43%)  (+41.86%)
                 net-short   net-short     net-long    net-long


                     Small Spec              Commercials
NASDAQ 100      (Current) (Previous)    (Current) (Previous)
Open Interest
Net Value         +6008      +4936         -12,999    -13,358

Total Open
Interest %        (+30.35%)   (+26.03%)     (-19.17%) (-21.31%)
                 net-long   net-long      net-short net-short


What COT Data Tells Us
----------------------
Indices:.Action was virtually flat across all major indices with 
no significant position shift taking place.

Gold:.Commercials remain on the short-side with a modest 
reduction in their net-short position.

9/18  49,456 contracts net-short
9/25  36,638 contracts net-long
10/02 67,122 contracts net-short
10/09 64,729 contracts net-short
10/16 51,816 contracts net-short

Data compiled as of Tuesday 10/16 by the CFTC.



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


NEW BEARISH PLAY
=================

American healthways - AMHC - close: 31.60 change: -2.70 stop: 34.50

Company Description
American Healthways is the nation's leading provider of 
comprehensive care enhancement services to health plans, 
physicians and hospitals. Through its product lines - diabetes 
healthways(SM), cardiac healthways(SM), respiratory 
healthways(SM) and myhealthways(SM) - the Company provides care 
enhancement programs to health plans with members in all 50 
states, the District of Columbia and Puerto Rico. American 
Healthways also operates diabetes management programs in 
hospitals nationwide. (source: company press release)

Why We Like It:
With the healthcare sector trading sideways we felt this may be a 
time to pick on a stock that could be a leading indicator for the 
rest of the group.  This does conflict with our current play on 
THC and BMET but both of those issues have been holding up while 
AMHC fell through support today.  This is more of a technical 
play with Friday's price action screaming "short me".  Okay, 
maybe we're being melodramatic but AMHC did fall below price 
support at $33, fell through its 50-dma, and closed at its low 
for the day.  The point-and-figure chart shows a triple bottom 
breakout to the downside with the bullish support line drifting 
in no man's land near $22.00.  We are not going to be that greedy 
and expect the stock to find buyers at $25, which is supported by 
the 200-dma.  Actually the stock needs to breakdown below $30 but 
given the bearish crossover in the MACD it could happen soon.  
Aggressive shorts should look to enter now or consider a failed 
rally back to $33.  Conservative shorts may want to wait for the 
close under $30.  Unfortunately due to the big move today we are 
going to place our stop at 34.50 but plan to lower it as soon as 
the stock confirms the new trend.  

Picked on October 19th at $31.60
Gain since picked:         +0.00
Earnings Date              10/04 (confirmed)





==================================================================
WATCH LIST
==================================================================

The PremierInvestor.net watch list is not designed to be read
as full fledged stock picks.  Rather we would prefer to offer
it as an extra tool in today's investor toolbox.  Think of it
as a radar screen with your own radar operator pointing out
interesting developments, technical patterns or potential plays
that you may or may not have seen on your own.  Due to time
constraints we do glance at the news but rarely do we have 
time to fully read pertinent news stories, due background 
research and other necessary screens that investors should do
before making a decision.  A common exercise is to read the
entry, glance at the sector and other stocks in that industry
and then compare what's happening in the stock to what's 
happening in the broader market indices.  We hope you enjoy
the Watch List and that it proves to be a useful tool for your
own trading success.

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

OSI Pharmaceuticals - OSIP - close: 42.40 change: +3.40

WHAT TO WATCH:  OSIP is a biotech/drug company that has been 
making steady gains despite the stall in the broader markets.
The stock had put in a strong bottom with several days at
$32.  After rallying up to price resistance at $40, it pulled
back and stopped to build support at $38.  The move today was
a bit too much for us and would be interested if the stock 
will pull back to $40 again and then bounce.  A quick glance
at the point-and-figure chart shows that shares stopped dead
at the descending bearish resistance line ($43).  An entry at
$40 with a tight stop might set up for a trade to $45 where
there is more price resistance and the 200-dma.  MACD is positive.




---

Pfizer Inc - PFE - close: 42.33 change: +0.47

WHAT TO WATCH:  This drug giant that has made a strong
rebound from mid-September's low of $34.  Like the Drug index
(DRG), PFE had stalled out at its 200-dma and traded sideways
for the last three weeks.  That is until Thursday.  Thursday
the stock closed above its 200-dma and Friday confirmed the move
by trading above price resistance at $42.  We probably wouldn't
play this stock on Premier only because it looks like upside
is limited.  There is strong overhead price resistance at $45
and again at $46.  The point-and-figure chart isn't much better.
The positive news is PFE may be a leading the Drug sector higher.
Nimble traders may be willing to scalp a point or two now that
the stock has made a technical breakout.  Earnings were Wednesday.




---

Corixa Corp - CRXA - close: 14.48 change: +0.46

WHAT TO WATCH:  Ready for round two?  This biotech/drug stock 
has already doubled from its mid-September low near $7 to run
right into its 200-dma last week.  Since then the stock has
traded sideways with a some profit-taking.  Considering the
extent that Anthrax is playing in this war on terrorism, CRXA,
who makes vaccines and is likely to benefit from the government's
increased spending on homeland defense could garner increased
investor interest.  We would be watching for the stock to clear
its 200-dma again (currently near $15).  The bounce above $13
and the late day rally looks positive for Monday.  




---

NVIDIA - NVDA - close: 44.35 change: +0.89

WHAT TO WATCH:  With the release of Microsoft's X-Box rapidly
approaching, shares of NVDA have made a strong recovery to pre-
September levels.  Our team was divided on whether this represented 
a bullish play with a target of $50 and a tight stop at 41.40 or
a bearish play (waiting for confirmation first) if the stock
rolled over and headed back to the $35 level.  Either way traders
will want to keep an eye on it.




---

Gilead Sciences - GILD - close: 64.90 change: +2.10

WHAT TO WATCH:  A biotech that seems to be leading the group is
GILD.  That stock has surpassed pre-September levels and has
been range-bound between $60 and $65 for the last several days.
Both the daily chart and the point-and-figure chart show the
overhead resistance at $65 and a breakout above this level 
could be powerful.  Be aware that earnings are expected on 
October 25th.




---

John Hancock Financial - JHF - close: 33.80 change: -0.25

WHAT TO WATCH:  Yet another financial that is looking over the
cliff and praying for a rebound.  The stock is perched at price
support of $33 which has not been (truly) violated since mid-
January 2001.  The recent trend looks pretty negative and the
MACD looks dreadful.  This is the second significant move below
its 200-dma in the last two months and the point-and-figure chart
shows the stock just below long-term bullish support.  Earnings
are not expected until Nov. 1st and the next level of price
support is down at $27.  We would wait for the downside breakout.






---------------------------
Additional Stocks to Watch 
for your own research:

-potential longs-
ISSX - Internet Security Systems
IMMU - Immunomedics
QLGC - QLogic Corp
CELG - Celgene Corp
CEPH - Celphalon Inc
CRGN - CuraGen Corp
GDT  - Guidant Corp
IMNX - Immunex Corp

-potential shorts-
CVC  - Cablevision Systems
MMC  - Marsh Mclennan Co
KMB  - Kimberly Clark
MBI  - M B I A Inc
GDW  - Golden West Financial
SNV  - Synovus Financial
HCA  - HCA Inc





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PremierInvestor.net Newsletter          Weekend Edition 10-19-2001
                                                    section 2 of 3
Copyright © 2001, All rights reserved.
Redistribution in any form is strictly prohibited.

The entire newsletter is best viewed in COURIER 10 for alignment
=================================================================
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=================================================================

In section two:

Split Trader
  Play Updates: Tenet Healthcare - THC

Net Bulls
  New Bullish Plays: Symantec Corp. - SYMC 

Stock Bottom / Active Trader
  Long-Term Play: Hershey - HSY
  New Bullish Plays: CBRL Group - CBRL
  New Bearish Plays: AMHC and FNM
  Bullish Play Updates: AXP and BMET
  Bearish Play Updates: SYY, STI, WPI


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

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

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

Tenet Healthcare - THC - close: 61.00 change: +0.11 stop: 57.60 

In Thursday's update we discussed how investors should be patient
on entering new positions in THC.  The reason is due to the stock's
sideways trading pattern that is directly related to the healthcare
sector's own range-bound pattern.  The patient trader can take
their time and try to enter at the bottom of the range (near $59)
or wait for the stock to reaffirm the up trend with a close over
$61 or $62.  We know this sounds redundant if you read yesterday's
update but the best bet may be to just sit on the sidelines and
wait for the next move to develop.  Volume continues to be light,
the MACD's fast and slow moving averages have converged and the
histogram has moved to zero.  If one were to look at that indicator
only, THC may look like a potential bearish play as the stock
slowly peters out and the bears wear the bulls out.  Fortunately,
for buyers, the long-term trend is still intact and the company's
strong fundamentals have not changed.

Picked on October 4th @ $ 60.22
Gain since picked:       + 0.78
Earnings Date:            10/03 (confirmed)





==================================================================
Net Bulls (NB) Tech Stock section
==================================================================

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

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

Symantec Corp. - SYMC - close: 53.88 change: +1.30 stop: 49.00

Company Description:
Symantec, a world leader in Internet security technology, 
provides a broad range of content and network security software 
and appliance solutions to individuals, enterprises and service 
providers. The company is a leading provider of virus protection, 
firewall and virtual private network, vulnerability management, 
intrusion detection, Internet content and e-mail filtering, 
remote management technologies and security services to 
enterprises and service providers around the world. Symantec's 
Norton brand of consumer security products is a leader in 
worldwide retail sales and industry awards. Headquartered in 
Cupertino, Calif., Symantec has worldwide operations in 37 
countries. 

Why We Like It:
Fundamentally and technically this stock looks very strong.  
Symantec is a leader in what will be a growing segment of the 
software industry - Internet and network security.  The last few 
months both newspapers and television news highlighted the 
vulnerability that the Internet and corporate America have to 
viruses.  Notably Code Red, Sircam and the infamous Nimda virus 
with all of them hitting thousands upon thousands of corporate 
and private computers.  One analyst described the industry as one 
of the first and fastest to recover from the economic slowdown.  
As IT budgets and corporate spending expands the theory is 
security spending will out grow historic levels.  SYMC's CFO, 
Greg Myers, said that antivirus software sales to businesses 
jumped over 50% during the quarter.  This last week the company 
announced earnings with very strong results.  Consensus estimates 
put SYMC's earnings at 43 cents a shares.  The company reported 
only 16 cents but the decrease was due to the acquisition of 
Axent Technologies.  Excluding these charges the company pulled 
in 56 cents which trounced estimates.  One concern traders should 
note is the stock has appreciated considerably from its September 
low.  What makes this stock different from other tech stocks with 
similar moves is the strong earnings report and growth industry.  
We estimate the stock could easily gain another 15% to 20% from 
current levels.  Technically the stock has broken through 
overhead price resistance at $50, broken through its 200-dma at 
49.10, and is has made its last two days of gains on very strong 
volume.  Initially we're going to start the play with a stop at 
$49.00.  We like the stock where it's at now but would prefer to 
enter it on a dip back to $51.  Confirm stock and market 
direction before entering.  You may also want to keep an eye on 
the software index (GSO).  

Picked on October 11th at $34.45
Gain since picked:         +0.00
Earnings Date              11/13 (not confirmed)






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

=============================
AT New Long-Term Bullish Pick
=============================

Hershey Foods - HSY - close: 64.55 change: +2.49 stop: 59.50

Company Description
Hershey Foods Corporation is the leading North American 
manufacturer of quality chocolate and non-chocolate confectionery 
and chocolate-related grocery products, and has a variety of 
international operations. Operations of Hershey Foods Corporation 
are concentrated in two divisions. Hershey Chocolate North 
America is the nation's leading domestic producer of chocolate 
and non-chocolate confectionery products, as well as chocolate-
related grocery products.  Hershey International oversees the 
corporation's international interests and exports to over 90 
countries worldwide. (source: company website)

Fundamentals:
Revenues for the 9 months ending on Sept. 30th, 2001, rose 9% to
$3.28 billion.  Net income rose 15% to $252.1 million.  HSY's 
gross margins outpace the industry average at 42.39%.  Operating
margins also beat the industry average at 14.84%.  Plus, the 
company's return on assets out performs the industry and the 
S&P 500 at 10.43%.  Hershey management's return on equity really
shines at 30.93% against an industry average of 22.41% and the
S&P 500's 19.06%.

Why We Like It:
Besides our constant craving for more chocolate...we like HSY 
as a defensive play with strong revenues.  Let's glance at their
recent earnings report a couple of days ago.  HSY reported that
their 3Q earnings rose 12.5 percent with net income jumping to
$120.8M versus the $107.4M the year before.  EPS came in at 88 
cents which was two cents above consensus estimates.  Revenues
rose from $1.2B to $1.3B against the prior year period.  Despite
the soft economy, management is comfortable with year-end forecasts
of $2.72 a share.  When asked about Halloween sales, management
replied that it's too early yet.  Most Halloween sales come in
the two weeks prior to the holiday but they commented that 
Christmas orders appear to be on target.  

HSY's CFO told analysts that they expected a short-term slowdown 
but historically the confectionary business does well in 
recessionary times.  One of our own team members at Premier
Investor mentioned that some reporter claimed that chocolates were
the most common gift sent to soldiers who were away on tour and
during wartime activities.  We're not sure how much, if any, this
would affect sales but it sure won't hurt during what President
Bush has declared a prolonged campaign against terror.  We like
the fact that Hershey's management is focusing on the company's
core businesses.  Recently HSY sold their Luden's Throat Drops
business to Pharmacia Consumer Healthcare (NYSE: PHA) while 
acquiring Nabisco's mint and gum business.  After the positive
earnings report from HSY, analyst John O'Neil from UBS Warburg
upgraded the stock from a "hold" to a "strong buy".  O'Neil
believes that 2002 could be a great year for the stock and
added a new price target of $74.  

We feel his long-term price target is too low.  The stock does
have significant price resistance between $66 and $67 as well
as serious price resistance at $70.  However, the point-and-
figure chart is projecting a bullish price objective just north
of $80.  The stock's recent move up has come on increasingly
strong volume which should help it get through the first level
of resistance.  Plus, the MACD is about to produce a bullish
crossover.  If you choose to look at a really long-term chart
you'll notice that the 200-Week MA is close to $58.25 and 
incidentally the stock hasn't been lower than $58.50 since
late January 2001 (and it was climbing back then).  We would look 
to enter this bullish long-term trade with two potential styles.
An investor could wait for the stock to breakout above resistance
at $66, or an investor could look to buy on the dip.  If you
choose the dip then look for a dip back to $60 or $61.  Due 
to our time frame for this trade we're going to set our stop
a little wider than we would for a short-term play.  After
looking at the stock's performance over the last several months
we would initiate the play with a stop at 58.50.  This is less
than 10% from current levels and allows for plenty of room
should the market's suffer another set back.  Given the 4%
move on Friday odds of a dip look good but the stock could
rally to $66 first and then pullback.

Picked on October 19th at $64.55
Gain since picked:         +0.00
Earnings Date              10/18 (confirmed)





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

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

CBRL Group Inc - CBRL - close: 24.36 change: +0.76 stop: 22.85

Company Description
Headquartered in Lebanon, Tennessee, CBRL Group, Inc. presently 
operates 438 Cracker Barrel Old Country Store® restaurants and 
gift shops located in 40 states, and 76 Logan's Roadhouse® 
company-operated and eight franchised restaurants in 15 states. 
(source: company press release)

Why We Like It:
In a market that is looking for companies with strong earnings,
investors are going to turn to the successful Cracker Barrel
franchise.  The stock has made a huge move up from a bottom 
in May/June/July between $16 and $17.  In early October the
stock broke through serious price resistance at $22 only to
spend the next two weeks digesting the move.  Now the company
comes out and reaffirms guidance that 2002 earnings will grow
at 15% or more.  Management also announced that quarter-to-date
comparable store sales were up over 4% versus the same period
last year.  Not surprisingly the stock rallied on the news but
Thursday's close was not very convincing as it barely cleared
new resistance at 23.50 by only a dime.  Friday's move helped
confirm the bulls conviction and volume has been strong both
Thursday and Friday.  The point-and-figure chart shows the
stock breaking out above the bearish resistance line and the
moment it hits $25 clears old resistance from last year.
We would look to enter the stock on a pullback with a dip to
$23.50 as a strong possibility.  Long-term investors should
consider a stop under $22.  With our short-term time frame
we're going to start the play with a stop at 22.85. 

Picked on October 12th at $24.36
Gain since picked:         +0.00
Earnings Date              11/21 (not confirmed)





  -----------------
  New Bearish Plays
  -----------------

American healthways - AMHC - close: 31.60 change: -2.70 stop: 34.50

Company Description
American Healthways is the nation's leading provider of 
comprehensive care enhancement services to health plans, 
physicians and hospitals. Through its product lines - diabetes 
healthways(SM), cardiac healthways(SM), respiratory 
healthways(SM) and myhealthways(SM) - the Company provides care 
enhancement programs to health plans with members in all 50 
states, the District of Columbia and Puerto Rico. American 
Healthways also operates diabetes management programs in 
hospitals nationwide. (source: company press release)

Why We Like It:
With the healthcare sector trading sideways we felt this may be a 
time to pick on a stock that could be a leading indicator for the 
rest of the group.  This does conflict with our current play on 
THC and BMET but both of those issues have been holding up while 
AMHC fell through support today.  This is more of a technical 
play with Friday's price action screaming "short me".  Okay, 
maybe we're being melodramatic but AMHC did fall below price 
support at $33, fell through its 50-dma, and closed at its low 
for the day.  The point-and-figure chart shows a triple bottom 
breakout to the downside with the bullish support line drifting 
in no man's land near $22.00.  We are not going to be that greedy 
and expect the stock to find buyers at $25, which is supported by 
the 200-dma.  Actually the stock needs to breakdown below $30 but 
given the bearish crossover in the MACD it could happen soon.  
Aggressive shorts should look to enter now or consider a failed 
rally back to $33.  Conservative shorts may want to wait for the 
close under $30.  Unfortunately due to the big move today we are 
going to place our stop at 34.50 but plan to lower it as soon as 
the stock confirms the new trend.  

Picked on October 19th at $31.60
Gain since picked:         +0.00
Earnings Date              10/04 (confirmed)




---

Fannie Mae - FNM - close: 80.99 change: -0.11 stop: 83.50

Company Description
Originally part of the FHA program, Fannie Mae's current
objective is to increase the availability of mortgage
loans for low to middle-income Americans.  FNM buys 
home loans from other mortgage companies which allows
the original lender to then make more home loans.

Why We Like It:
As readers of PremierInvestor.net know our analysts like to
follow what's happening in the bond markets and interest rates.
With the action in the 30 year bond pushing the yield higher
on Friday we should see a corresponding move to the downside
in interest sensitive equities like FNM.  How does this work?
The bond yield rises as investors, usually institutions, sell
bonds.  This is normally positive because it creates more 
liquidity to be placed in stocks.  However, when the yields
rise it pushes up interest rates.  As interest rates rise the
number of new home loans tend to drop as do the number of
refinances.  This directly affects FNM's business.  If the 
economy continues to drop or fails to recover as quickly as
people would hope then home sales are likely to suffer and
FNM should see its stock price get hit.  In the shorter-term,
if the market's see another bullish leg up fueled in part by
rising bond yields then FNM should see its own stock price fall.
Occasionally there can be a day or two delay between the move
in bonds and the move in FNM and this is where we plan to 
capture the move in the stock.  The 30-yr yield saw a big move
up today yet FNM traded down and then bounced with the rest of
the markets.  We're speculating that smart money will react to
the bond yield change on Monday and put pressure on FNM's stock
price.  We're going to initiate the play with a stop at 83.50.
Unfortunately the first level of support the bears will need to
conquer is $77.  Despite this our target is $74 or 8.5%.  It's
possible the stock could go lower but we would need to see a 
very significant move in bonds.  Keep your eyes on the Existing
home sales and the new home sales reports on Thursday and Friday
which could exacerbate or stall the move in FNM.

Picked on October 19th at $80.99
Gain since picked:         +0.00
Earnings Date              10/15 (confirmed)






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

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

American Express - AXP - close: 29.32 change: -0.77 stop: 28.60

Financials were not the strongest sector on Friday as investors
decided to lighten up on some positions heading into the weekend.
AXP suffered a 2.5% loss, which was most likely do to the earnings
fiasco announced by credit card rival Providian (PVN) last night.
PVN reported a 71% drop in 3Q profits and warned about the upcoming
quarter.  PVN had made a big business of offering credit to high
risk customers and now it's coming back to haunt them in this
economic recession.  To make matters worse for PVN, the company
announced that its chairman and CEO, Shailesh Mehta, has resigned.
Unfortunately, this news from PVN and the dip in the Dow to 9080
weighed heavily on AXP.  We feel this has provided traders yet
another buying opportunity.  About 66% of AXP's income is derived
from its travel related operations, not its credit card business.
Yes, the travel business is expected to suffer greatly due to the
attacks in September but travel is slowly rebounding.  There has
also been renewed talk of AXP as a potential takeover candidate
at these lower levels.  The stock trades close to three times
book value and under two times sales.  With the recent federal
ruling in favor of AXP the company becomes an attractive target
for a large bank.  The low today was 28.75 which was awfully close
to our stop at 28.60.  Opportunistic traders should see this as
a low risk entry point.  At 29.33, the risk is less than 2.5% or
73 cents.  Chart readers can throw a retracement channel
(sometimes called a regression channel) on the chart from
September 21st through this Friday and you'll see that AXP bounced
just off the lower end of the channel.  We would confirm the
direction of the Dow and then the stock on Monday morning and 
make a decision to go long or wait for the stock to close back
above $30 again.  Risk averse traders should wait until AXP
announces its earnings this Monday.  We don't know yet whether
it is before the bell or after the close but severe earnings 
numbers outside the scope of analysts lowered forecasts could
actually cause the stock to gap below our stop.  Be prepared.

Picked on October 12th at $29.99
Gain since picked:         -0.67
Earnings Date              10/22 (not confirmed)




---

Biomet Inc - BMET - close: 31.45 change: +0.66 stop: 29.50 

BMET appeared to outpace many of its sector mates in the healthcare
field on Friday.  Investors may be looking for defensive plays
like KO and CL but they have still not rotated back into the
health sector.  Despite these developments BMET gained over 2% 
heading into the weekend.  While this is encouraging we're still 
stuck in a trading range very similar to the HCX.  Our comments 
from Thursday are still valid today.  We would be patient and wait 
for the new trend to become apparent.  Aggressive traders can try 
to enter along the bottom of the channel at $30 and more 
conservative traders should wait for the stock to close over $31.50 
or $32.  Technical indicators are still lagging with the MACD 
flattening out and its histogram retreating to zero.  Volume 
remained light.  Need to confirm stock, sector and market direction
before starting new positions.

Picked on October 2nd at $30.35
Gain since picked:        +1.10
Earnings Date             09/20 (confirmed)





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

Sysco Corp - SYY - close: 24.63 change: +0.26 stop: 25.00 

New overhead resistance at $25.00 is holding but we got a close
call today as shares of SYY hit an intraday high of 24.93 before
dipping back by the ending bell.  Technically the downtrend is
intact but the bounce today should have bears ready to cover.
Immediate risk is probably up to the $26 area if traders continue
to move into consumables as a defensive play.  We've already 
discussed how SYY is probably one of the least defensive food
stock as a big distributor to large hotels and restaurants which
should suffer during slow economic times.  This may not stop
investors from moving into shares of SYY if the sector as a whole
sees buying interest.  Our plan from Thursday remains the same.
We would initiate new short positions once the stock closed under
the $24 level.  The next price target would be $22.  With a stop
at $25.00 a position here would be a low risk scenario but it
would be prudent to confirm stock and market direction on Monday
before pulling the trigger.  At this point it won't take much 
to stop us out at $25.00.

Picked on October 5th at $26.12
Gain since picked:        +1.49
Earnings Date             10/17 (confirmed)




---

Suntrust Banks - STI - close: 58.85 change: +0.75 stop: 60.25 *new*

Suntrust Banks did not perform as we had hoped it would on
Friday.  The plan was to initiate new short positions or initial
short positions once the stock trades under $58.  We never got
that chance as shares opened at 58.50.  What we do find interesting
is instead of a strong rally back to the $60 level that would
suggest buyers were defending the stock it almost appears as if
the bears are wearing them down.  Monday might produce the 
confirmation we've been looking for.  We are going to reduce
our exposure and move our stop down to $60.25.  We're risking 
an unexpected exit on an intraday spike but this should limit
our potential risk to only 40 cents.

Picked on October 12th at $59.85
Gain since picked:         +1.00
Earnings Date              10/10 (confirmed)





---

Watson Pharm. - WPI - close: 49.81 change: +1.31 stop: 50.25 

We got the rally back towards $50 but it has yet to fail for
aggressive shorts to reinitiate new plays.  In Thursday's update
we discussed taking some profits off the table in case the
stock saw a strong bounce at $48.  If you count Thursday's 
close at $48.50, Friday's low of 48.10 is the fifth bounce
at this level of support in the last month.  Obviously a 
breakdown would be very negative for the stock but the bulls
are going to try and defend it.  Volume hasn't been telling us
much the last couple of days and there hasn't been any more
news on the BMY/MYL/WPI court case over BMY's patent lawsuit
for BuSpar.  The late afternoon buying spree for WPI actually
broke the sharp downtrending line of resistance from October 9th
but the stock's technicals remain negative.  While the newsletter
may get stopped out on Monday, traders may want to keep an eye
on BMY's earnings report on Tuesday and MYL's earnings report
on Thursday as both WPI's rival and co-marketing partners results
could influence action in WPI.  We would not initiate new shorts
at this time and wait for the stock to close under $48.

Picked on October 12th at $52.60
Gain since picked:         +2.79
Earnings Date              08/14 (confirmed)







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PremierInvestor.net Newsletter         Weekend Edition 10-19-2001
                                                   Section 3 of 3
Copyright © 2001, All rights reserved.
Redistribution in any form is strictly prohibited.

The entire newsletter is best viewed in COURIER 10 for alignment
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In section three:

Market Watch for Week of October 22nd
   - Major Earnings
   - Stock Splits
   - Economic Reports

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

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



==================================================
Market Watch for the week of October 22nd
==================================================

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

Symbol  Company               Date           Comment      EPS Est   

------------------------ MONDAY ------------------------

APD     Air Products & Chem.  Mon, Oct 22  Before the Bell   0.53
ALTR    Altera Corporation    Mon, Oct 22  After the Bell    0.05
AXP     American Express      Mon, Oct 22  ----- n/a -----   0.30
ANAT    Am. National Ins.     Mon, Oct 22  ----- n/a -----    n/a
ANDW    Andrew Corporation    Mon, Oct 22  After the Bell    0.20
ACI     Arch Coal             Mon, Oct 22  Before the Bell  -0.19
ADM     Archer-Daniels-Mid.   Mon, Oct 22  After the Bell    0.13
ASH     Ashland               Mon, Oct 22  Before the Bell   1.34
BKNG    Banknorth Group       Mon, Oct 22  Before the Bell   0.45
BSX     Boston Scientific     Mon, Oct 22  ----- n/a -----   0.17
BG      Bunge Limited         Mon, Oct 22  Before the Bell    n/a
CP      Can. Pac. Railway     Mon, Oct 22  ----- n/a -----   1.09
CX      Cemex, S.A. de C.V.   Mon, Oct 22  ----- n/a -----   0.85
CF      Charter One Financial Mon, Oct 22  After the Bell    0.57
CHRT    Chartered Semi Manu   Mon, Oct 22  After the Bell   -0.96
COH     Coach                 Mon, Oct 22  After the Bell    0.28
CVD     Covance               Mon, Oct 22  After the Bell    0.15
XRAY    DENTSPLY Int.         Mon, Oct 22  After the Bell    0.48
ETR     Entergy               Mon, Oct 22  ----- n/a -----   1.20
RE      Everest Reinsurance   Mon, Oct 22  After the Bell   -0.53
EXPE    Expedia               Mon, Oct 22  After the Bell    0.14
FISV    Fiserv                Mon, Oct 22  After the Bell    0.27
TV      Grupo Televisa, S.A.  Mon, Oct 22  ----- n/a -----   0.38
HAS     Hasbro                Mon, Oct 22  Before the Bell   0.24
HE      Hawaiian Electric     Mon, Oct 22  After the Bell    0.74
HCP     Health Care Property  Mon, Oct 22  Before the Bell   0.85
ROOM    Hotel Reser.Network   Mon, Oct 22  Before the Bell   0.24
ICBC    Indep.e Comm. Bank    Mon, Oct 22  After the Bell    0.38
KEM     Kemet                 Mon, Oct 22  After the Bell    0.00
LAB     LaBranche & Co Inc.   Mon, Oct 22  Before the Bell   0.13
LXK     Lex.Int., Inc         Mon, Oct 22  Before the Bell   0.52
LRY     Liberty Prop. Trust   Mon, Oct 22  After the Bell    0.86
LPNT    LifePoint Hospitals   Mon, Oct 22  After the Bell    0.19
LNCR    Lincare Holdings      Mon, Oct 22  After the Bell    0.32
MGM     Metro-Goldwyn-Mayer   Mon, Oct 22  ----- n/a -----   0.05
MMM     MN Mining & Manu.     Mon, Oct 22  Before the Bell   1.09
MCO     Moody`s               Mon, Oct 22  After the Bell    0.30
NTIQ    NetIQ                 Mon, Oct 22  After the Bell    0.15
NBP     North. Border Part.   Mon, Oct 22  ----- n/a -----   0.64
OGE     OGE Energy            Mon, Oct 22  Before the Bell   1.38
BOH     Pac Century Fin       Mon, Oct 22  Before the Bell   0.36
RYN     Rayonier              Mon, Oct 22  After the Bell    0.27
RNR     Ren. Holdings         Mon, Oct 22  After the Bell    0.95
ROH     Rohm and Haas         Mon, Oct 22  After the Bell    0.22
SAFC    SAFECO                Mon, Oct 22  Before the Bell   0.02
SBC     SBC Communications    Mon, Oct 22  ----- n/a -----   0.60
SNRA    Sonera Group plc      Mon, Oct 22  Before the Bell    n/a
SO      Southern Company      Mon, Oct 22  Before the Bell   0.78
TNB     Thomas & Betts        Mon, Oct 22  After the Bell    0.02
TDW     Tidewater             Mon, Oct 22  Before the Bell   0.60
TUP     Tupperware            Mon, Oct 22  After the Bell    0.11
UDR     United Dom. Realty    Mon, Oct 22  After the Bell    0.39
MRO     USX-Marathon Group    Mon, Oct 22  Before the Bell   0.88
X       USX-U.S. Steel        Mon, Oct 22  ----- n/a -----  -0.42
VTSS    Vitesse Semiconductor Mon, Oct 22  After the Bell   -0.13
VMC     Vulcan Materials      Mon, Oct 22  After the Bell    0.92
WFSL    Wash Federal          Mon, Oct 22  After the Bell    0.54

------------------------ TUESDAY ------------------------

AFCE    AFC Enterprises       Tue, Aug 14  Before the Bell   0.27
ABGX    Abgenix               Tue, Oct 23  During the Market-0.20
ACXM    Acxiom                Tue, Oct 23  During the Market 0.07
ADO     Adecco SA             Tue, Oct 23  ----- n/a -----    n/a
ACS     Aff.Computer Serv.    Tue, Oct 23  Before the Bell   0.76
AGRa    Agere Systems         Tue, Oct 23  Before the Bell  -0.31
Y       Alleghany             Tue, Oct 23  Before the Bell    n/a
ALD     Allied Capital        Tue, Oct 23  ----- n/a -----   0.53
AMZN    Amazon.com            Tue, Oct 23  After the Bell   -0.16
AHC     Amerada Hess          Tue, Oct 23  ----- n/a -----   2.31
AEP     American Ele. Power   Tue, Oct 23  Before the Bell   1.44
AHP     American Home Pro.    Tue, Oct 23  Before the Bell   0.63
AMTD    Ameritrade Holding A  Tue, Oct 23  ----- n/a -----  -0.02
T       AT&T                  Tue, Oct 23  After the Bell    0.04
AWE     AT&T Wireless Ser;    Tue, Oct 23  Before the Bell  -0.02
AVB     Avalonbay Communities Tue, Oct 23  After the Bell    1.03
AVY     Avery Dennison        Tue, Oct 23  After the Bell    0.63
BPC     Banco Com. Portugues  Tue, Oct 23  ----- n/a -----    n/a
BRL     Barr Laboratories     Tue, Oct 23  After the Bell    1.77
BMS     Bemis                 Tue, Oct 23  ----- n/a -----   0.68
BSYS    BISYS Group           Tue, Oct 23  Before the Bell   0.36
BDK     Black & Decker        Tue, Oct 23  ----- n/a -----   0.57
BBI     Blockbuster           Tue, Oct 23  Before the Bell   0.18
BWA     BorgWarner, Inc.      Tue, Oct 23  After the Bell    0.72
BXP     Boston Properties     Tue, Oct 23  After the Bell    0.91
BOW     Bowater               Tue, Oct 23  ----- n/a -----  -0.27
EAT     Brinker International Tue, Oct 23  Before the Bell   0.39
BMY     Bristol-Myers Squibb  Tue, Oct 23  After the Bell    0.63
BNI     Burl.  N. Santa Fe    Tue, Oct 23  Before the Bell   0.56
CAH     Cardinal Health       Tue, Oct 23  After the Bell    0.55
CDX     Catellus Development  Tue, Oct 23  After the Bell    0.43
CTX     Centex Corporation    Tue, Oct 23  ----- n/a -----   1.27
CKFR    CheckFree             Tue, Oct 23  After the Bell   -0.02
CTXS    Citrix Systems        Tue, Oct 23  ----- n/a -----   0.19
COLM    Columbia Sportswear   Tue, Oct 23  After the Bell    1.06
CPQ     Compaq Computer       Tue, Oct 23  ----- n/a -----  -0.06
CNX     CONSOL Energy         Tue, Oct 23  After the Bell   -0.15
CBE     Cooper Industries     Tue, Oct 23  ----- n/a -----   0.74
CSX     CSX                   Tue, Oct 23  After the Bell    0.46
DCX     DaimlerChrysler       Tue, Oct 23  After the Bell    0.23
DASTY   Das. Sys. SA (ADR)    Tue, Oct 23  ----- n/a -----   0.21
DP      Diagnostic Products   Tue, Oct 23  After the Bell    0.29
DLTR    Dollar Tree Stores    Tue, Oct 23  After the Bell    0.13
ELNK    EarthLink, Inc.       Tue, Oct 23  Before the Bell  -0.19
DISH    EchoStar Comm.        Tue, Oct 23  Before the Bell  -0.03
EC      Engelhard             Tue, Oct 23  Before the Bell   0.43
EXC     Exelon Corporation    Tue, Oct 23  ----- n/a -----   1.21
ESA     Extended Stay Am.     Tue, Oct 23  Before the Bell   0.22
XOM     Exxon Mobil Corp.     Tue, Oct 23  Before the Bell   0.50
FCS     Fairchild Semi.r Int. Tue, Oct 23  After the Bell   -0.10
FII     Federated Investors B Tue, Oct 23  ----- n/a -----   0.37
FPL     FPL Group             Tue, Oct 23  Before the Bell   1.97
GMT     GATX                  Tue, Oct 23  Before the Bell   0.39
GSK     GlaxoSmithKline       Tue, Oct 23  After the Bell    0.45
HAL     Halliburton           Tue, Oct 23  After the Bell    0.42
HHS     Harte-Hanks           Tue, Oct 23  After the Bell    0.29
HMA     Hlt. Man. Ass., Inc.  Tue, Oct 23  ----- n/a -----   0.19
HLT     Hilton Hotels Corp.   Tue, Oct 23  ----- n/a -----   0.11
N       Inco                  Tue, Oct 23  After the Bell   -0.01
JCI     Johnson Controls      Tue, Oct 23  During the Market 1.64
KMB     Kimberly Clark        Tue, Oct 23  Before the Bell   0.80
LH      Laboratory Corp.      Tue, Oct 23  Before the Bell   0.68
LAF     Lafarge North America Tue, Oct 23  After the Bell    1.88
LSCC    Lattice Semiconductor Tue, Oct 23  Before the Bell   0.07
LEA     Lear                  Tue, Oct 23  Before the Bell   0.33
LNC     Lincoln National      Tue, Oct 23  Before the Bell   0.70
LOGIY   Logitech Int.         Tue, Oct 23  During the Market 0.26
LSI     LSI Logic             Tue, Oct 23  Before the Bell  -0.31
LZ      Lubrizol              Tue, Oct 23  ----- n/a -----   0.45
LU      Lucent Technologies   Tue, Oct 23  ----- n/a -----  -0.23
MLM     Martin Marietta Mat.  Tue, Oct 23  ----- n/a -----   1.02
MXO     Maxtor                Tue, Oct 23  After the Bell   -0.37
MCK     McKesson Corporation  Tue, Oct 23  Before the Bell   0.31
MON     Monsanto Co.          Tue, Oct 23  After the Bell   -0.13
NBR     Nabors Industries     Tue, Oct 23  After the Bell    0.66
NOI     National-Oilwell      Tue, Oct 23  After the Bell    0.36
NCR     NCR                   Tue, Oct 23  Before the Bell   0.21
NEU     Neuberger Berman      Tue, Oct 23  Before the Bell   0.47
NXTP    Nextel Partners       Tue, Oct 23  Before the Bell  -0.31
NBL     Noble Affiliates      Tue, Oct 23  ----- n/a -----   0.06
NRD     NORANDA INC           Tue, Oct 23  ----- n/a ----     n/a
NU      Northeast Utilities   Tue, Oct 23  ----- n/a -----   0.36
ORLY    O`Reilly Automotive   Tue, Oct 23  After the Bell    0.38
OEI     Ocean Energy          Tue, Oct 23  After the Bell    0.25
OMC     Omnicom Group         Tue, Oct 23  Before the Bell   0.50
PCAR    Paccar                Tue, Oct 23  ----- n/a -----   0.38
PTV     Pactiv                Tue, Oct 23  After the Bell    0.27
PTEN    Pat. UTI Energy, Inc  Tue, Oct 23  After the Bell    0.63
PCZ     Petro-Canada          Tue, Oct 23  ----- n/a -----    n/a
PHA     Pharmacia Corporation Tue, Oct 23  Before the Bell   0.40
PD      Phelps Dodge          Tue, Oct 23  After the Bell   -1.25
PXD     Pioneer Natural Res.  Tue, Oct 23  ----- n/a -----   0.14
PCL     Plum Creek Timber     Tue, Oct 23  After the Bell    0.14
POT     Pot. Crp. of Sas. Inc.Tue, Oct 23  Before the Bell   0.20
PEG     Pub. Ser. Ent. Gr.    Tue, Oct 23  After the Bell    0.92
PSD     Puget Sound Energy    Tue, Oct 23  Before the Bell  -0.05
PHM     Pulte Homes Inc.      Tue, Oct 23  ----- n/a -----   1.64
QLGC    QLogic                Tue, Oct 23  After the Bell    0.19
RSH     Radio Shack Corp.     Tue, Oct 23  After the Bell    0.26
RJF     Raymond James         Tue, Oct 23  ----- n/a -----   0.40
RBK     Reebok International  Tue, Oct 23  ----- n/a -----   0.65
RGS     RGS Energy Group      Tue, Oct 23  After the Bell     n/a
SGP     Schering-Plough       Tue, Oct 23  After the Bell    0.41
SLB     Schlumberger          Tue, Oct 23  Before the Bell   0.36
SIAL    Sigma-Aldrich         Tue, Oct 23  Before the Bell   0.48
SSCC    Smurfit-Stone Con.    Tue, Oct 23  After the Bell   0.040
SNA     Snap-On               Tue, Oct 23  Before the Bell   0.40
SPC     St. Paul Companies    Tue, Oct 23  After the Bell   -1.30
SUN     Sunoco                Tue, Oct 23  Before the Bell   1.03
SWMAY   Swedish Match         Tue, Oct 23  ----- n/a -----    n/a
SY      Sybase                Tue, Oct 23  ----- n/a -----   0.18
MNI     The McClatchy Company Tue, Oct 23  Before the Bell   0.28
TMCS    TM Online-CitySearch  Tue, Oct 23  Before the Bell   0.02
TMK     Torchmark             Tue, Oct 23  Before the Bell   0.79
UDS     Ultr. Diamond Sham.   Tue, Oct 23  ----- n/a -----   1.39
UTSI    UTStarcom             Tue, Oct 23  ----- n/a -----   0.18
VLO     Valero Energy         Tue, Oct 23  Before the Bell   1.21
VVC     Vectren               Tue, Oct 23  After the Bell    0.20
VIGN    Vignette              Tue, Oct 23  After the Bell   -0.05
WDR     Waddell&Reed Fin.     Tue, Oct 23  After the Bell    0.35
WAT     Waters Corporation    Tue, Oct 23  After the Bell    0.28
WSTC    West Corporation      Tue, Oct 23  After the Bell    0.22
WY      Weyerhaeuser          Tue, Oct 23  After the Bell    0.42
XRX     Xerox                 Tue, Oct 23  After the Bell   -0.24
YRK     York International    Tue, Oct 23  ----- n/a -----   0.61

------------------------ WEDNESDAY ------------------------

ABB     ABB                   Wed, Oct 24  Before the Bell    n/a
ABY     Abitibi-Consolidated  Wed, Oct 24  ----- n/a -----   0.10
AMG     Aff. Managers Group   Wed, Oct 24  ----- n/a -----   0.91
AFFX    Affymetrix            Wed, Oct 24  After the Bell   -0.11
AFL     AFLAC                 Wed, Oct 24  After the Bell    0.34
AKZOY   Akzo Nobel ADR        Wed, Oct 24  Before the Bell    n/a
AGN     Allergan              Wed, Oct 24  Before the Bell   0.50
AEE     Ameren                Wed, Oct 24  ----- n/a -----   1.83
AMKR    Amkor Technology      Wed, Oct 24  After the Bell   -0.70
AMR     AMR                   Wed, Oct 24  ----- n/a -----  -2.61
BUD     Anheuser-Busch        Wed, Oct 24  ----- n/a -----   0.62
ABI     Applied Biosystems    Wed, Oct 24  Before the Bell   0.13
ARW     Arrow Electronics     Wed, Oct 24  ----- n/a -----  -0.17
AZN     AstraZeneca PLC       Wed, Oct 24  ----- n/a -----   0.42
AV      Avaya                 Wed, Oct 24  Before the Bell   0.03
SAN     Banco Santiago        Wed, Oct 24  ----- n/a -----   0.47
BCE     BCE                   Wed, Oct 24  Before the Bell    n/a
BLC     Belo                  Wed, Oct 24  Before the Bell   0.01
BC      Brunswick             Wed, Oct 24  ----- n/a -----   0.21
CBT     Cabot                 Wed, Oct 24  After the Bell    0.38
CNI     Can. Nat. Railway     Wed, Oct 24  Before the Bell   0.78
CMX     Caremark Rx           Wed, Oct 24  ----- n/a -----   0.18
CRA     Celera Genomics       Wed, Oct 24  Before the Bell  -0.46
CHIR    Chiron                Wed, Oct 24  After the Bell    0.24
CVG     Convergys Corporation Wed, Oct 24  Before the Bell   0.34
CYTC    CYTYC                 Wed, Oct 24  After the Bell    0.12
DBD     Diebold               Wed, Oct 24  During the Market 0.50
DPL     DPL                   Wed, Oct 24  Before the Bell   0.68
DRYR    Dreyer`s Gr. Ice Cr.  Wed, Oct 24  Before the Bell   0.20
DST     DST Systems           Wed, Oct 24  After the Bell    0.38
DD      DuPont                Wed, Oct 24  Before the Bell   0.10
EK      Eastman Kodak         Wed, Oct 24  Before the Bell   0.52
EPG     El Paso Corp.         Wed, Oct 24  Before the Bell   0.74
EPN     El Paso Energy Par.   Wed, Oct 24  ----- n/a -----   0.09
EDS     Electronic Data Sys.  Wed, Oct 24  After the Bell    0.68
EOG     EOG Resources         Wed, Oct 24  Before the Bell   0.37
FNF     Fid. National Fin.    Wed, Oct 24  Before the Bell   0.93
FR      First Ind. Realty Tr. Wed, Oct 24  After the Bell    1.01
FLM     Fleming Companies     Wed, Oct 24  Before the Bell   0.44
FDRY    Foundry Networks      Wed, Oct 24  After the Bell    0.05
FBN     Furn. Brands Int.     Wed, Oct 24  After the Bell    0.25
GXP     Great Pl. Energy Inc. Wed, Oct 24  After the Bell     n/a
ASR     Gru. Aero. Del Sure.  Wed, Oct 24  ----- n/a -----   0.27
HAR     Harman Int. Ind.      Wed, Oct 24  ----- n/a -----   0.14
HCA     HCA Inc.              Wed, Oct 24  Before the Bell   0.40
ICOS    ICOS                  Wed, Oct 24  After the Bell   -0.56
ITMN    InterMune Pharm.      Wed, Oct 24  After the Bell   -0.56
KMG     Kerr-McGee            Wed, Oct 24  ----- n/a -----   0.94
KSE     KeySpan Energy        Wed, Oct 24  Before the Bell  -0.02
KIM     Kimco Realty          Wed, Oct 24  After the Bell    1.12
MCRL    Micrel Semiconductor  Wed, Oct 24  After the Bell   -0.02
MCHP    Microchip Technology  Wed, Oct 24  After the Bell    0.16
MTGNY   Modern Times Group    Wed, Oct 24  ----- n/a -----    n/a
NNS     Newport News Ship.    Wed, Oct 24  Before the Bell   0.87
NXTL    Nextel Communications Wed, Oct 24  Before the Bell  -0.48
NSC     Norfolk Southern      Wed, Oct 24  ----- n/a -----   0.20
NOC     Northrop Grumman      Wed, Oct 24  ----- n/a -----   1.51
NCX     Nova Chemical         Wed, Oct 24  Before the Bell  -0.86
POC     P & O Pr. Cruises     Wed, Oct 24  Before the Bell   0.93
PRGN    Peregrine Systems     Wed, Oct 24  After the Bell    0.05
P       Phillips Petroleum    Wed, Oct 24  Before the Bell   1.29
PDG     Placer Dome           Wed, Oct 24  After the Bell    0.08
PLXS    Plexus                Wed, Oct 24  After the Bell    0.20
PPL     PPL Corporation       Wed, Oct 24  Before the Bell   0.90
PX      Praxair Incorporated  Wed, Oct 24  Before the Bell   0.72
PGN     Progress Energy       Wed, Oct 24  Before the Bell   1.34
PLD     ProLogis Trust        Wed, Oct 24  After the Bell    0.60
PNM     Pub. Ser. Com. of N.M.Wed, Oct 24  After the Bell    0.87
QLTI    QLT                   Wed, Oct 24  After the Bell    0.06
DSS     Quantum-DLT & St. Gr. Wed, Oct 24  After the Bell    0.04
QSFT    Quest Software        Wed, Oct 24  After the Bell    0.01
RDN     Radian Group          Wed, Oct 24  After the Bell    0.97
RTP     Rio Tinto PLC         Wed, Oct 24  ----- n/a -----    n/a
DNY     RR Donnelley & Sons   Wed, Oct 24  ----- n/a -----   0.46
R       Ryder System          Wed, Oct 24  Before the Bell   0.47
SANM    Sanmina               Wed, Oct 24  After the Bell    0.02
SEE     Sealed Air            Wed, Oct 24  ----- n/a -----   0.43
S       Sears Roebuck         Wed, Oct 24  Before the Bell   0.79
STK     Storage Technology    Wed, Oct 24  After the Bell    0.10
SU      Suncor Energy         Wed, Oct 24  Before the Bell    n/a
TLTOB   Tele2 AB              Wed, Oct 24  ----- n/a -----    n/a
EXBD    Cor. Exe.e B. Com.    Wed, Oct 24  ----- n/a -----   0.15
TMO     Thermo Electron       Wed, Oct 24  After the Bell    0.21
THOR    Thoratec Lab          Wed, Oct 24  ----- n/a -----   0.05
UCL     Unocal                Wed, Oct 24  Before the Bell   0.51
USAI    USA Networks          Wed, Oct 24  ----- n/a -----  -0.16
VRC     Varco                 Wed, Oct 24  Before the Bell   0.27
VRTX    Vertex Pharm.         Wed, Oct 24  ----- n/a -----  -0.26
VIAb    Viacom                Wed, Oct 24  Before the Bell  -0.02
VOLVY   Volvo AB              Wed, Oct 24  Before the Bell    n/a
WLP     Well. Health Network  Wed, Oct 24  After the Bell    1.57
WE      Westcoast Energy      Wed, Oct 24  ----- n/a -----    n/a
WWY     Wm. Wrigley Jr.       Wed, Oct 24  ----- n/a -----   0.41
XEL     Xcel Energy           Wed, Oct 24  ----- n/a -----   0.76
ZBRA    Zebra Technologies    Wed, Oct 24  ----- n/a -----   0.49

------------------------ THURSDAY ------------------------

TW      21st Century Ins.     Thu, Oct 25  After the Bell    0.07
SE      7-Eleven              Thu, Oct 25  Before the Bell   0.37
RKY     Adolph Coors          Thu, Oct 25  Before the Bell   0.67
AES     AES Corporation       Thu, Oct 25  After the Bell    0.26
ATG     AGL Resources         Thu, Oct 25  ----- n/a -----   0.11
ACV     Alberto-Culver        Thu, Oct 25  During the Market 0.55
AYE     Allegheny Energy      Thu, Oct 25  After the Bell    1.17
ATK     Alliant Techsystems   Thu, Oct 25  Before the Bell   0.86
AIG     American Int.l Group  Thu, Oct 25  ----- n/a -----   0.55
APCC    American Power Conv.  Thu, Oct 25  After the Bell    0.18
AMGN    Amgen                 Thu, Oct 25  After the Bell    0.29
AVZ     AMVESCAP PLC          Thu, Oct 25  Before the Bell   0.32
APC     Anadarko Petroleum    Thu, Oct 25  Before the Bell   0.68
APA     Apache                Thu, Oct 25  Before the Bell   1.10
ANZ     Aus. & New Ze. Bank.  Thu, Oct 25  ----- n/a -----    n/a
BLL     Ball                  Thu, Oct 25  Before the Bell   1.25
ABX     Barrick Gold          Thu, Oct 25  ----- n/a -----   0.17
BMC     BMC Software          Thu, Oct 25  After the Bell    0.02
CCMP    Cabot Micro.          Thu, Oct 25  Before the Bell   0.33
CPN     Calpine               Thu, Oct 25  Before the Bell   0.87
CELG    Celgene               Thu, Oct 25  Before the Bell   0.00
CTL     CenturyTele. Ent.     Thu, Oct 25  Before the Bell   0.39
CVX     ChevronTexaco Corp.   Thu, Oct 25  Before the Bell    n/a
CPS     ChoicePoint           Thu, Oct 25  Before the Bell   0.33
CINF    Cincinnati Financial  Thu, Oct 25  ----- n/a -----   0.26
CIN     Cinergy               Thu, Oct 25  ----- n/a -----   0.78
CNH     CNH Global N.V.       Thu, Oct 25  Before the Bell  -0.39
KOF     Coca-Cola FEMSA,      Thu, Oct 25  After the Bell    0.34
CFB     Commercial Federal    Thu, Oct 25  Before the Bell   0.45
CYH     Comm. Health Sys.     Thu, Oct 25  Before the Bell   0.09
COX     Cox Communication     Thu, Oct 25  Before the Bell  -0.19
CRGN    CuraGen               Thu, Oct 25  Before the Bell  -0.26
DOW     Dow Chemical          Thu, Oct 25  Before the Bell   0.16
EMN     Eastman Chemical      Thu, Oct 25  After the Bell    0.48
EW      Edwards Lifesciences  Thu, Oct 25  After the Bell    0.23
ERTS    Electronic Arts       Thu, Oct 25  After the Bell   -0.24
EEP     Enbridge Ene. Part.   Thu, Oct 25  After the Bell     n/a
EL      Estee Lauder          Thu, Oct 25  Before the Bell   0.38
FIC     Fair Isaac &Co        Thu, Oct 25  After the Bell    0.55
FMX     FEMSA                 Thu, Oct 25  After the Bell    0.72
FAF     First American Fin.   Thu, Oct 25  Before the Bell   0.60
BEN     Franklin Resources    Thu, Oct 25  Before the Bell   0.38
GILD    Gilead Sciences       Thu, Oct 25  After the Bell   -0.34
GR      Goodrich Corporation  Thu, Oct 25  Before the Bell   0.80
GT      GdYr Tire & Rubber    Thu, Oct 25  Before the Bell   0.05
GLK     Great Lakes Chemical  Thu, Oct 25  After the Bell   -0.13
HR      Health. Realty Trust  Thu, Oct 25  After the Bell    0.67
HRC     Healthsouth           Thu, Oct 25  Before the Bell   0.20
IDA     Idacorp Holding       Thu, Oct 25  Before the Bell   0.68
IKN     Ikon Office Solution  Thu, Oct 25  Before the Bell   0.10
IGL     IMC Global            Thu, Oct 25  Before the Bell  -0.18
IFF     Int. Flav. & Frag.    Thu, Oct 25  Before the Bell   0.39
IRF     Int. Rectifier        Thu, Oct 25  After the Bell    0.14
IVGN    Invitrogen            Thu, Oct 25  After the Bell    0.43
ITT     ITT Industries        Thu, Oct 25  Before the Bell   0.73
JDSU    JDS Uniphase          Thu, Oct 25  After the Bell   -0.03
LVLT    Level 3 Comm.         Thu, Oct 25  ----- n/a -----  -1.92
LYO     Lyondell Chemical     Thu, Oct 25  Before the Bell  -0.30
MUR     Murphy Oil            Thu, Oct 25  After the Bell    0.88
MYL     Mylan Laboratories    Thu, Oct 25  ----- n/a -----   0.41
NFG     National Fuel Gas     Thu, Oct 25  After the Bell    0.08
NATI    National Instruments  Thu, Oct 25  After the Bell    0.10
NIPNY   NEC (ADR)             Thu, Oct 25  After the Bell     n/a
NE      Noble Drilling        Thu, Oct 25  Before the Bell   0.57
NST     NSTAR                 Thu, Oct 25  Before the Bell   1.35
OLDB    Old National Bancorp  Thu, Oct 25  ----- n/a -----   0.43
ORI     Old Republic Int.     Thu, Oct 25  ----- n/a -----   0.69
OCA     Orth. Centers of Am.  Thu, Oct 25  ----- n/a -----   0.30
BTU     Peabody Energy Corp.  Thu, Oct 25  ----- n/a -----   0.46
PY      Pechiney              Thu, Oct 25  ----- n/a -----   0.24
PAS     PepsiAmericas         Thu, Oct 25  Before the Bell   0.24
PRX     Pharm. Resources      Thu, Oct 25  Before the Bell   0.53
PMI     PMI Group             Thu, Oct 25  Before the Bell   1.74
POM     Potomac Electric      Thu, Oct 25  ----- n/a -----   0.75
PDE     Pride Int. Inc.       Thu, Oct 25  ----- n/a -----   0.25
RGA     Reins. Group of Am.   Thu, Oct 25  After the Bell    0.65
RHA     Rhodia ADS            Thu, Oct 25  ----- n/a -----    n/a
RIT     Right. Managed Care   Thu, Oct 25  ----- n/a -----   0.68
SCG     SCANA                 Thu, Oct 25  Before the Bell   0.63
SRE     Sempra Energy         Thu, Oct 25  Before the Bell   0.60
SOI     Solutia               Thu, Oct 25  After the Bell    0.07
SNE     Sony                  Thu, Oct 25  ----- n/a -----    n/a
SKE     Spinnaker Exploration Thu, Oct 25  ----- n/a -----   0.32
SFG     StanCorp Fin. Group   Thu, Oct 25  Before the Bell   0.76
HOT     StWd Hotels&Resorts   Thu, Oct 25  Before the Bell   0.32
SV      Stilwell Financial    Thu, Oct 25  ----- n/a -----   0.41
SEO     STORA ENSO CORP       Thu, Oct 25  Before the Bell    n/a
TU      TELUS Communications  Thu, Oct 25  During the Market  n/a
TRH     Trans. Holdings       Thu, Oct 25  Before the Bell  -0.92
TLRK    Tularik               Thu, Oct 25  ----- n/a -----  -0.38
TXU     TXU Corp.             Thu, Oct 25  Before the Bell   1.36
URI     United Rentals        Thu, Oct 25  Before the Bell   0.63
UPM     UPM-Kymmene Group     Thu, Oct 25  Before the Bell   0.62
VCI     Valassis              Thu, Oct 25  Before the Bell   0.52
VRSN    VeriSign              Thu, Oct 25  After the Bell    0.16
BER     W.R. Berkley          Thu, Oct 25  After the Bell    0.24
WFT     Weatherford           Thu, Oct 25  Before the Bell   0.49
WMB     Williams Companies    Thu, Oct 25  Before the Bell   0.53
WEC     Wisconsin Energy      Thu, Oct 25  Before the Bell   0.48
WCOM    WCom Inc.-WCom Group  Thu, Oct 25  ----- n/a -----   0.16
WPPGY   WPP Group PLC         Thu, Oct 25  Before the Bell    n/a
XTO     XTO Energy            Thu, Oct 25  Before the Bell   0.44

------------------------ FRIDAY ------------------------

AN      AutoNation            Fri, Oct 26  Before the Bell   0.24
BHI     Baker Hughes          Fri, Oct 26  01:00 am ET       0.34
BEC     Beckman Coulter       Fri, Oct 26  Before the Bell   0.53
CMS     CMS Energy            Fri, Oct 26  Before the Bell   0.14
CIV     Conectiv Incorporated Fri, Oct 26  ----- n/a -----   0.80
CEG     Cons. Energy Group    Fri, Oct 26  ----- n/a -----   0.96
DEG     Delhaize Group        Fri, Oct 26  Before the Bell    n/a
ELUX    Electrolux AB ADR     Fri, Oct 26  ----- n/a -----   0.34
ERICY   Ericsson LM Telephone Fri, Oct 26  ----- n/a -----  -0.04
HCR     HCR Manor Care        Fri, Oct 26  Before the Bell   0.29
IDCO    Int. Data Corp.       Fri, Oct 26  ----- n/a -----    n/a
IMA     Inv. Medical Tech.    Fri, Oct 26  ----- n/a -----   0.12
LMT     Lockheed Martin       Fri, Oct 26  ----- n/a -----   0.37
TSM     Taiwan Semi Manu.Comp.Fri, Oct 26  Before the Bell   0.00
TCP     Telesp Celular Part.  Fri, Oct 26  Before the Bell  -0.17
TMM     Trans. Marítima Mexi. Fri, Oct 26  After the Bell     n/a
TMAR    Trico Mar. Serv. Inc. Fri, Oct 26  ----- n/a -----   0.11
UNH     UnitedHealth Group    Fri, Oct 26  ----- n/a -----   0.70
UST     UST Inc               Fri, Oct 26  Before the Bell   0.73
VECO    Veeco Instruments     Fri, Oct 26  Before the Bell   0.31
WINK    Wink Communications   Fri, Oct 26  After the Bell   -0.45



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

Upcoming Stock Splits This Week...

Symbol  Company Name          Splits  Payable    Executable
  
REBC    Redwood Empire Bank   3:2     10/19      10/22
WEBK    West Essex Bancorp    5:4     10/22      10/23


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

The fall earnings season on Wall Street continues to take a
back seat to the growing drama overseas and here at home.
Economic reports that will probably have the biggest affect
on the markets are the Employment Cost index and Existing
Home sales on Thursday and the New Home sales and Sentiment
on Friday.


Monday, 10/22/01
----------------
Leading Indicators     Sep  Forecast:  -0.5%  Previous:  -0.3%


Tuesday, 10/23/01
-----------------
None


Wednesday, 10/24/01
-------------------
Fed’s Beige Book       N/A  Forecast:    N/A  Previous:    N/A


Thursday, 10/25/01
------------------
Initial Claims       10/20  Forecast:    N/A  Previous:   490K
Employment Cost Index   Q3  Forecast:   0.9%  Previous:   0.9%
Durable Orders         Sep  Forecast:  -1.0%  Previous:  -0.3%
Existing Home Sales    Sep  Forecast:  5.20M  Previous:  5.50M
Help Wanted Index      Sep  Forecast:    N/A  Previous:     53


Friday, 10/26/01
----------------
Mich Sentiment-Rev     Oct  Forecast:    83.0 Previous:   83.4
New Home Sales         Sep  Forecast:    852K Previous:   898K
Treasury Budget        Sep  Forecast:   29.0B Previous:  65.7B




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

MOND    Robert G Mondavi           32.10     +0.67

--------------------------------------- 
Breakout to Upside (Stocks $5 to $20) 
--------------------------------------- 
Ticker  Company Name               Close     Change 

EDSN    Edison Schools Inc         15.80     +1.85
MDTH    Medcath Corp               19.51     +1.56
BPRX    Bradley Pharmaceuticals     9.95     +1.54
TASR    Taser Intl                 12.30     +1.91

--------------------------------------- 
Breakout to Upside (Stocks over $20) 
--------------------------------------- 
Ticker  Company Name               Close     Change 

KO      Coca-Cola                  48.59     +2.47
G       Gillette                   31.30     +1.58
CA      Computer Associates        29.94     +2.02
YUM     Tricon Global              50.00     +1.48
LH      Laboratory Corp            84.60     +1.80

----------------------------------------- 
Breakout to Downside (Stocks over $20) 
------------------------------------------- 
Ticker  Company Name               Close     Change 

SC      Shell Transport & Trading  43.98     -1.03
ENE     Enron Corp                 26.05     -2.95
EBAY    eBay Corp                  51.95     -7.11
PBI     Pitney Bowes               36.60     -1.04
AOG     Alberta Energy Co          37.25     -1.50

------------------------------------------------------------ 
Recently Overbought With Bearish Signals (Stocks over $20) 
------------------------------------------------------------- 
Ticker  Company Name               Close     Change 

RSH     Radioshack Corp            26.47     -0.64
AGE     A.G.Edwards Inc            37.95     -0.55
MYG     Maytag Corp                27.89     -0.31
TGI     Triumph Group Inc          24.90     -0.88



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