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Daily Newsletter, Monday, 10/29/2001

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PremierInvestor.net Newsletter                 Monday 10-29-2001
                                                  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: The Sell-Off And The Damage Done
Market Sentiment: Better Safe than Sorry
Play-of-the-Day: Technical Breakdown in Drugs
Watch List: FLEX, QLGC, EMLX, BBBY, AIG

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U.S. Market Numbers
-----------------------------------------------------------------
MARKET WRAP  (view in courier font for table alignment)
-----------------------------------------------------------------
        10-29-2001        High      Low     Volume Advance/Decline
DJIA     9269.50 -275.70  9543.40  9269.50 1.11 bln   1026/2067	
NASDAQ   1699.50 - 69.40  1767.97  1699.40 1.65 bln   1246/2364
S&P 100   553.34 - 14.64   567.98   553.34   totals   2272/4431
S&P 500  1078.30 - 26.31  1104.61  1078.30
RUS 2000  429.41 -  9.84   438.88   429.38
DJ TRANS 2218.96 - 28.62  2264.28  2218.72
VIX        32.39 +  1.86    32.70    30.95
Put/Call Ratio      0.61
-----------------------------------------------------------------

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

The Sell-Off And The Damage Done

The opening session of this week's trading gave back a lot of
last week's gains.  It's too early to tell if Monday's weakness
was the beginning of a new trend in the major averages.  So, let's
make a few observations to gain better insight into just how much
damage was done by Monday's sell-off.

Sector Review

The selling Monday was broad in scope.  In fact, most sectors of
the market finished decidedly lower.  Of the 25 sectors I
regularly follow, only two finished in positive territory: The
Gold and Silver Index (XAU.X) and the Utility Sector Index (UTY.X)
- both defensive in nature.  Other defensive sectors of the market,
such as Healthcare (HCX.X) and Drugs (DRG.X) traded relatively
better, too.  While the energy sector finished only fractionally
lower.

The broader energy sector has been gaining strength recently,
which may be in anticipation of a production cut from OPEC.  The
oil cartel meets next on November 14, when it is expected to
formally announce a cut in production to stem the recent weakness
in energy prices.  While it's far from a done deal, anticipation
is mounting for a cut in the range of 750,000 to 1 million barrels
per day.

That anticipation may have been part of the reason that the
energy sector traded relatively well Monday.  The Natural Gas
Index (XNG.X), Oil Service Index (OSX.X), and Oil Index (OIX.X)
finished only fractionally lower Monday, but each had put in
solid advances late last week, so the day's pullback seemed
routine in nature.  There may be some more upside ahead of the
OPEC meeting in November, but traders should keep an eye on
overhead resistance in the group.  For example, the Oil Service
Index popped up to the roughly 90 level early Monday, then
pulled back from that site.  The 90 level is the site of the
Oil Service Index's 38.2 percent retracement level of the bracket
that measures the index's decline that began back in the spring.
Again, while there may be some upside ahead of the OPEC meeting,
bullish positions should be traded with caution as the energy
group is near resistance.

Oil Service Index (OSX.X) Daily





While rising energy prices can be good for the energy sector,
at the same time, they can be of detriment to other sectors of
the economy, especially those dependent on the consumer.  The
recent pullback in energy prices has worked in the favor of
businesses that use, among other energy products, natural gas,
as well as consumers who pay at the pump.  An increase in the
price of gasoline as well as heating oil could cause consumers
to pull in the reigns on discretionary spending, which would
adversely impact the Retail Sector Index (RLX.X).

The Retail Index didn't suffer a great deal of technical damage
Monday, but did close back below a key support level at 800.  I
don't know how much of the Retail sector's weakness Monday was
related to the prospect of rising energy prices, but its close
below the 800 level indicated further weakness in the sector
over the short-term.  Indeed, two of the bigger components of the
RLX.X in Home Depot (NYSE:HD) and Wal-Mart (NYSE:WMT) finished
below key support levels.

Retail Sector Index (RLX.X) Daily




One sector that was particularly weak Monday was the KBW Bank
Sector Index (BKX.X).  It shed 3.27 percent, while the S&P 500
(SPX.X) dropped by 2.38 percent.  The finance sector as a whole
is one of the better gauges of the broader market because of its
pulse on the economy.

For its part, the BKX.X had formed a wedge over the past
several weeks and broke out from that wedge late last week
with its advance past the 800 level Thursday.  It closed higher
again last Friday, but gave back all of last week's gains Monday
as measured by its close below last Thursday's open.  In the
process, the BKX.X closed back below the platform of its wedge
at the 800 level, rejecting its breakout attempt.

The BKX.X's failure was, perhaps, one of the more important
aspects of Monday's trading that I observed.  I think that this
sector should be closely monitored in Tuesday's session to see
if there's any follow-through to the downside if only for the
fact that the finance sector is the largest industry group
within the S&P 500.  In terms of support, the BKX.X may find
some bids near its ascending support, which had served as the
lower-end of the wedge.  That support line currently sits around
the 780 to 785 area.  Also worth noting is the fact that unlike
many other sectors of the market, the BKX.X was unable to take
out its relative highs during its push higher last week.  The
inability to trade past 822 on this leg higher may reveal some
weakness in the sector.

Bank Sector Index (BKX.X) Daily




One theme that I observed across multiple tech sectors Monday
evening was a bearish divergence between Stochastics and price.
Take, for example, the Philadelphia Semiconductor Index's (SOX.X)
crossover in daily Stochastics Monday.  The crossover in the
oscillator came at a lower level while price had moved higher,
past the last relative high.

Semiconductor Sector Index (SOX.X) Daily




The tech sectors, as they usually are, were more volatile than
the broader markets Monday, leading to the downside.  The SOX.X
was the worst performing sector of the day on my radar screen
with its nearly 7 percent drop, followed by 5 percent plus
slides in Hardware (GHA.X), Software (GSO.X), and the Internets
(INX.X).

The AMEX Biotechnology Sector Index (BTK.X) was the only
Nasdaq-related sector in which I didn't observe the Stochastics
divergence Monday.  That much is probably a product of the
BTK.X's recent leadership to the upside and reinforces the
relative strength of the group.  Granted, the BTK.X shed 3.84
percent Monday, but that figure should be viewed in conjunction
with the losses in the Nasdaq Composite (COMPX) and Nasdaq-100
(NDX.X), which shed 3.92 and 5.52 percent, respectively.  In
other words, the BTK.X gained even more relative strength versus
the broader Nasdaq market Monday.

At the earliest, the BTK.X could find some support at the 550
level Tuesday morning, which is only 4 points away from its
Monday close.  The 550 level was serious resistance for some
time, so it may now provide some support if the selling in the
Biotech sector remains contained Tuesday.  The BTK.X had a great
run up until Monday's session, however, so further profit taking
wouldn't be unexpected.

Biotech Sector Index (BTK.X) Daily




Summary

The major market averages broke below support levels during
Monday's sell-off, but are still some distance away from giving
sell signals, or reversing into a descending trends.
Follow-through to the downside in Tuesday's session could be
more telling than Monday's sell-off, because going into Monday,
it could be argued that a pullback was due.  Picking tops are
incredibly difficult to do, so rather than make a wild guess,
I'm going to wait for more metrics to reveal whether or not the
market has reversed trend.  I'll do that by monitoring the
aforementioned sectors and the major averages.

Eric Utley
Guest Commentator


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

Better Safe than Sorry
Russ Moore

Better safe, than sorry. With a feast of economic data about to
be served, investors decided to remove some of their recent
profits from the market table.

The selling began early and this time we didn’t have the
customary late day reversal take hold. All major indices closed
on their session lows with the DOW dropping -2.9 percent. The
NASDAQ fell -3.9 percent with the big cap NDX plunging -4.8
percent.

Volume was on the light side with the NYSE moving 1.3 billion
shares and the NASDAQ seeing 1.6 billion shares trade hands.
Market breadth was negative with losers trouncing winners by a
20/10 margin on the big board and a 23/12 difference on the tech
side.

Only the gold and utility sectors managed to post green arrows
today. Chips, hardware, and Internet stocks led the tech decline
while biotechs and banks took the biggest hit on the broader
markets.

Adding to the day’s weakness were concerns over more debt
restructuring in Argentina. The end of "window dressing" by
Mutual fund managers was cited as another reason for the drop.

The bullish euphoria we’ve seen over the last few weeks will be
put to the test this week. Economic data will be aplenty this
week, and, with the news expected to be dismal, investors will
have to think long and hard about holding, or adding too,
existing positions.



VIX
Monday 10/29 close: 32.39


VXN
Monday 10/29 close: 60.22


30-yr Bonds
Monday 10/29 close: 5.25


Total Put/Call Ratio: .75


Equity Option Put/Call Ratio: .61


Index Option Put/Call Ratio:  1.75


===

NASDAQ 100 Index (NDX/QQQ)
52-Week High: 103.51
52-Week Low:   28.19
Current close: 34.04

Volume/Open Interest
Maximum calls: 35/52,594
Maximum puts : 33/64,300

Moving Averages
 10 DMA 34
 20 DMA 33
 50 DMA 33
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: 553.35

Volume/Open Interest
Maximum calls: 560/5,337
Maximum puts : 480/7,834

Moving Averages
 10 DMA  559
 20 DMA  555
 50 DMA  559
200 DMA  620

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: 1078.30

Volume / Open Interest
Maximum calls: 1100/17,386
Maximum puts :  950/21,392

Moving Averages
 10 DMA 1085
 20 DMA 1080
 50 DMA 1092
200 DMA 1204

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:  9,269.50

Volume / Open Interest
Maximum Calls: 94/21,748
Maximum Puts   92/22,920

Moving Averages:
 10 DMA  9,332
 20 DMA  9,252
 50 DMA  9,457
200 DMA 10,280

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: 554.88

Volume / Open Interest
Maximum Calls: 580/  675
Maximum Puts:  420/1,576

Moving Averages
 10 DMA 523
 20 DMA 499
 50 DMA 493
200 DMA 538

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: 447.21

Volume / Open Interest
Maximum Calls: 570/ 503
Maximum Puts:  420/ 763

Moving Averages
 10 DMA 449
 20 DMA 435
 50 DMA 473
200 DMA 582

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: 391.20

Volume / Open Interest
Maximum Calls: 420/ 284
Maximum Puts:  400/1002

Moving Averages
 10 DMA 396
 20 DMA 395
 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 10/26
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
10/09/01     369,049   407,804   (38,755)   (10.6%)
10/16/01     378,866   415,289   (36,423)   ( 6.0%
10/23/01     377,177   413,658   (36,481)     0.1%


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
10/09/01       122,292    74,539    47,753    (5.2%)
10/16/01       124,568    73,779    50,789     6.3%
10/23/01       127,016    71,212    55,804     9.9%

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
10/09/01      24,662    38,020   (13,358)   21.5%
10/16/01      27,398    40,397   (12,999)   (2.7%)
10/23/01      29,920    40,358   (10,438)  (19.7%)

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
10/09/01       11,948     7,012    4,936      20.0%
10/16/01       12,901     6,893    6,008      21.7%
10/23/01       11,567     6,934    4,633     (22.9%)

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
10/09/01      24,873    10,194   14,679     16.2%
10/16/01      25,402    10,267   15,135      3.1%
10/23/01      25,568    11,832   13,736     (9.2%)

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
10/09/01       3,517    12,294    (8,777)     23.0%
10/16/01       4,514    12,104    (7,590)    (13.5%)
10/23/01       4,902    11,900    (6,998)     (7.8%)

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        +55,804     +50,789        -36,481     -36,423

Total Open
Interest %       (+28.15%)  (+25.61%)     (-4.61%)   (-4.59%)
                 net-long   net-long      net-short  net-short


                     Small Specs             Commercials
DJIA futures     (Current) (Previous)    (Current) (Previous)
Open Interest
Net Value          -6,998     -7,590          +13,736    15,135
Total Open
interest %       (-41.65%)    (-45.67%)      (+36.73%)  (+42.43%)
                 net-short   net-short     net-long    net-long


                     Small Spec              Commercials
NASDAQ 100      (Current) (Previous)    (Current) (Previous)
Open Interest
Net Value         +4,633      +6,008         -10,438    -12,999

Total Open
Interest %        (+25.04%)   (+30.35%)     (-14.85%) (-19.17%)
                 net-long   net-long      net-short net-short


What COT Data Tells Us
----------------------
Indices:.Another flat week as Commercials hold steady on their
S&P net-short contracts.

Gold:.Commercials cut their short contracts in half this week.
Gold has certainly cooled off in the last month; however, another
switch to a net-long position could see gold on the rise once
again.

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
10/23 25,191 contracts net-short

Data compiled as of Tuesday 10/23 by the CFTC.


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

Bristol Myers Squibb - BMY - cls: 54.90 chg: -1.06 stop: 58.50 *new*

Company Description:
As an $18 billion pharmaceutical company, BMY has become the 
fifth-largest drugmaker in the world. Having a large stable of 
profitable brand name drugs and a new focus on divesting lower-
margin business for higher-margin drugs should keep them as a 
growing powerhouse in the industry.

- Most Recent Comments on October 26th, 2001 -

Slowly but surely shares of BMY continue to drift lower.  The 
chart is showing BMY in its third day of a bearish MACD 
crossover, which could begin to pick up speed.  We knew the $56 
level might be significant support and the battle between the 
bulls and the bears intensified as the stock traded in an 
extremely narrow range after the 10 o'clock hour on Friday.  
Looking at an intraday chart it looks like there is/are some big 
sellers really leaning on the stock.  We continue to feel that if 
the markets proceed in a bullish mode money will rotate out of 
defensive stocks like drugs and into other sectors.  The close 
under $56 is a tempting entry point for new shorts but traders 
should consider a tighter stop than the one we have listed if 
you're comfortable taking heat up to $59.00, our new stop.  We're 
close to reaching our first target of $55 and our second short-
term target is $51.  We don't feel these are too out of reach as 
the bearish price objective on the stock is close to $40.  

- Monday Update -

Monday's market decline was a broad-based sell-off with tech stocks
and drugs stocks taking heat.  The DRG.X index fell below its 200-dma
after just barely closing near it on Friday.  This weakness in the
sector pushed BMY to a 1.89% drop and through its support level at
$56.  The stock is setting up for a dip towards our secondary target
of $51.  We are lowering our stop to $58.50 but more conservative
traders may be able to get away with a tighter stop.

Picked on October 23rd at $58.02
Gain since picked:         +3.12
Earnings Date              10/23 (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.

-----------

Flextronics - FLEX - close: 18.91 change: -2.81 

WHAT TO WATCH:  A strong pull back in the SOX index and disappointing
revenues from Solectron's earnings report on Monday helped push 
FLEX through significant support at $20 to close for a 13% loss.
This breakdown on high volume could be forecasting a retest of the
September low near $12.50.  If we don't see a turnaround in the SOX 
the bears will be watching FLEX for opportunities to short it.




---

QLogic Corp - QLGC - close: 38.79 change: -2.86

WHAT TO WATCH:  The same slow down in the semiconductor rally is 
setting up a potential rollover in QLGC.  The stock has been strong
but Thursday shares bumped their head on the 200-dma and Friday and
Monday appear to confirm the stock's new weakness.  At this level it
only looks like profit taking but a close below $35 could easily 
forecast a test of the 50-dma at $30.




---

Emulex Corp - EMLX - close: 24.61 change: -0.62

WHAT TO WATCH:  EMLX has been holding up very well considering its 
rocket-like projectory for the month of October.  The last two days
have seen small dips but shares remain above the $24.50 level which
represent a key retracement level using the May highs to the October
lows.  If shares close below $24.50 we should expect shares to retest
price support at $22.50 and from there a potential test of $20. 
However, if the rally starts its next leg there will probably be 
a number of buyers waiting in the wings to a chance to jump in this
October winner.




---

Bed Bath & Beyond - BBBY - close: 24.30 change: -2.57

WHAT TO WATCH:  The trading action that took place in BBBY today 
didn't look like profit taking as so much as someone deciding that
they are getting out.  When shares traded below the $26.00 again
for the second time in three days we saw the downside momentum
pick up speed.  The $26 level had been support through much of the
month and now that shares have failed to rally back through its
200-dma BBBY appears to be setting up for a longer-term downtrend.
Bears should watch it for a breakdown below $24 or a failed rally
back to $26 as potential triggers.




---

American Intl. Group - AIG - close: 81.00 change: -2.80

WHAT TO WATCH:  As one of the biggest insurers in the world, AIG was
severely affected by the Sept. 11th attacks.  However, since then the
stock has bounced back to retake all of its losses and more.  The 
bad news now looks like the stock was/is extremely overbought and 
shareholders could do some more serious profit-taking.  The clues
have been the last two weeks of lower highs while buyers nibbled at
it when it bounced along its 200-dma.  With today's close, the stock
is below its 200-dma and managed a small bounce at price support of
$80.  Aggressive shorts may want to look at a potential play while 
those looking for confirmation should wait for the close under $80. 
The first level of major support is $75.







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This newsletter is a publication dedicated to the education
of stock traders. The newsletter is an information service
only. The information provided herein is not to be construed
as an offer to buy or sell securities of any kind. The
newsletter picks are not to be considered a recommendation
of any stock but an information resource to aid the investor
in making an informed decision regarding trading in stocks. It
is possible at this or some subsequent date, the editors and
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Copyright  2001  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.



PremierInvestor.net Newsletter                 Monday 10-29-2001
                                                   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/8754_2.asp
=================================================================

In section two:

Net Bulls
  Closed Bullish Plays: CSCO, NVDA, PDLI, VRTS 

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)

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

===============
NB Closed Plays
===============

  --------------------
  Closed Bullish Plays
  --------------------

Cisco Systems - CSCO - close: 16.42 change: -0.87 stop: 16.75

It would be nice to blame A.G. Edwards and their downgrade of 
CSCO from a strong buy to a buy for Monday's loss but their new 
rating was probably only one (small) factor in the dip today.  
Shares of CSCO actually traded higher in the morning hours before 
the weight of the Nasdaq's sell-off became too much to bear.  
Most market pundits merely claimed the indices were showing 
another day of profit taking after a successful October rally.  
This may be true but now that CSCO has closed below the $17 we 
are more concerned that a sizeable pull back is in store for the 
bulls.  A breakdown below $16 could forecast a retest of the late 
September lows.  Keep your eye on the 50-dma currently at 15.34.  
Don't forget about CSCO's upcoming earnings announcement next 
Monday.

Picked on October 25th at $17.74
Gain since picked:         -0.99
Earnings Date              11/05 (not confirmed)




---

Protein Design Labs - PDLI - cls: 33.08 chg: -3.35 stop: 35.40 

As we expected the biotech sector produced a strong pullback on 
Monday after its exciting gains last week.  This sector-wide dip 
was seen painfully in a 9% drop for PDLI.  Fortunately, we were 
planning for a dip and moved our stop up to 35.40.  Our biggest 
risk was that PDLI would gap down below our stop.  This did not 
occur and the newsletter can close the play with a move of 4.65 
points or over 15%.  We will be watching the biotech sector 
closely as well as PDLI for further trading opportunities.  
Investors with remaining positions in this equity should not 
forget that PDLI is expected to announce earnings on Thursday.

Picked on October 22nd at $30.75
Gain since picked:         +4.65
Earnings Date              11/01 (confirmed)




---

NVIDIA Corp - NVDA - close: 42.02 change: -3.72 stop: 43.80

Well, we got the dip we were looking for... just never saw the 
bounce.  Graphics card maker, NVDA, was a leader to the downside 
in today's market slide.  Shares of the stock fell over 8 percent 
while the SOX index slipped about 7%.  We do believe that NVDA 
will be a stock to watch for the next rebound in the tech sector 
but this time we may be looking at a bounce near $40 (or possibly 
$36).  Once the stock re-establishes a base it should still see 
buying interest into its earnings announcement on the 8th of Nov. 
or the launch of the Xbox on the 15th of Nov.  Fortunately, we 
had a relatively tight stop on the play and closed it with a drop 
of less than $2.  

Picked on October 26th at $45.79
Gain since picked:         -1.99
Earnings Date              11/08 (confirmed)




---

VERITAS Software - VRTS - close: 29.63 change: -2.05 stop: 30.00 

If you believe Monday's action was just another day of profit 
taking then what happened in VRTS makes sense.  The stock had 
been up a very large amount from its early October low but the 
momentum in the software sector looked like it might hold.  This 
has been a brief trade as we picked the stock on Wednesday, saw 
it climb over 10% on Thursday and now have stopped ourselves out 
on Monday.  We were somewhat surprised that VRTS did not show 
more strength in the group.  MSFT, the biggest component of the 
software sector fell 4% while the GSO.X fell 5.3%.  VRTS under 
performed them both with a 6.47% drop today.  The close below $30 
is very negative and the stock could retreat to its 50-dma 
currently at $27.00.  

Picked on October 22nd at $31.52
Gain since picked:         -1.52
Earnings Date              10/16 (confirmed)







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

GDW     Golden West Financial      49.65     +0.69
APA     Apache Corp                54.41     +1.46
DVN     Devon Energy Corp          40.71     +0.81
NFX     Newfield Exploration       36.80     +0.71
WGR     Western Gas Resources      32.91     +1.01

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

NYFX    Nyfix Inc                  18.68     +1.32
PHSY    Pacficare Health           18.03     +2.54
ACTI    Activecard                 14.07     +1.32
PRXL    Parexel Internat           16.20     +1.53
INVN    Invision Technologies      14.89     +1.06

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

FDX     Fedex Corp                 40.86     +1.38
KMG     Kerr-Mcgee Corp            59.18     +1.19
MCY     Mercury General            43.28     +1.63
MRX     Medicis Pharmaceucitcal    58.81     +1.26
RKY     Adolph Coors Co            50.26     +1.48

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

NWS     News Corp                  27.25     -1.80
EBAY    eBay Inc                   52.52     -4.48
DISH    Echostar Corp              24.08     -1.18
BBBY    Bed Bath & Beyond          24.30     -2.57
BRO     Brown & Brown              57.50     -2.30

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

CL      Colgate-Palmolive Co       57.62     -0.88
MXIM    Maxim Integrated Products  45.29     -3.49
NSM     National Semiconductor     26.01     -2.46
ISYS    Integral Systems Inc       20.13     -0.69




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