PremierInvestor.net Newsletter Monday 10-29-2001 section 1 of 2 Copyright © 2001, All rights reserved. Redistribution in any form is strictly prohibited. The entire newsletter is best viewed in COURIER 10 for alignment ================================================================= To view this email newsletter in HTML format with imbedded charts and graphs, click here: http://www.PremierInvestor.net/htmlemail/8754_1.asp ================================================================= 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 ----------------------------------------------------------------- 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. ================================================================= To stop receiving this PremierInvestor.net Newsletter, send email to Contact Support ================================================================= DISCLAIMER ================================================================= This newsletter is a publication dedicated to the education of stock traders. The newsletter is an information service only. The information provided herein is not to be construed as an offer to buy or sell securities of any kind. The newsletter picks are not to be considered a recommendation of any stock but an information resource to aid the investor in making an informed decision regarding trading in stocks. It is possible at this or some subsequent date, the editors and staff of PremierInvestor.net may own, buy or sell securities presented. All investors should consult a qualified professional before trading in any security. The information provided has been obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. PremierInvestor.net staff makes every effort to provide timely information to its subscribers but cannot guarantee specific delivery times due to factors beyond our control. Please read our disclaimer at: http://www.optioninvestor.com/page/oin/aboutus/disclaimer.html ***************************************************************** ADVERTISING INFORMATION For more information on advertising in PremierInvestor.net Newsletter, or any Premier Investor Network newsletter please contact Contact Support. ***************************************************************** Copyright © 2001 PremierInvestor.net. and The Premier Investor Network. Do not duplicate or redistribute in any form.
PremierInvestor.net Newsletter Monday 10-29-2001 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 ================================================================= To stop receiving this PremierInvestor.net Newsletter, send email to Contact Support ================================================================= DISCLAIMER ================================================================= This newsletter is a publication dedicated to the education of stock traders. The newsletter is an information service only. The information provided herein is not to be construed as an offer to buy or sell securities of any kind. The newsletter picks are not to be considered a recommendation of any stock but an information resource to aid the investor in making an informed decision regarding trading in stocks. It is possible at this or some subsequent date, the editors and staff of PremierInvestor.net may own, buy or sell securities presented. All investors should consult a qualified professional before trading in any security. The information provided has been obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. PremierInvestor.net staff makes every effort to provide timely information to its subscribers but cannot guarantee specific delivery times due to factors beyond our control. Please read our disclaimer at: http://www.optioninvestor.com/page/oin/aboutus/disclaimer.html ***************************************************************** ADVERTISING INFORMATION For more information on advertising in PremierInvestor.net Newsletter, or any Premier Investor Network newsletter please contact Contact Support. ***************************************************************** Copyright © 2001 PremierInvestor.net. and The Premier Investor Network. Do not duplicate or redistribute in any form.
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