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Daily Newsletter, Friday, 11/09/2001

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PremierInvestor.net Newsletter          Weekend Edition 11-09-2001
                                                    section 1 of 3
Copyright © 2001, All rights reserved.
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In section one:

Market Wrap: Stocks finish with gains to cap off bullish week
Market Sentiment: Quiet session to end the week
Play-of-the-Day: Bounce Off Support
Watch List: AMCC, AVNX, PUMA, PX, BRCD, FLM, ICLR, IKN

------------------------------------------------------------------
U.S. Market Numbers
------------------------------------------------------------------
MARKET WRAP  (view in courier font for table alignment)
------------------------------------------------------------------
       WE 11-11         WE 11-02         WE 10-26         WE 10-19
DOW     9608.00 +284.46  9323.54 -221.63  9545.17 +341.06  -140.05
Nasdaq  1828.48 + 82.75  1745.73 - 23.23  1768.96 + 97.65  - 32.09
S&P-100  577.99 + 18.00   559.99 -  7.99   567.98 + 14.18  -  6.98
S&P-500 1120.31 + 33.11  1087.20 - 17.41  1104.61 + 31.13  - 18.17
W5000  10297.21 +280.40 10016.81 -168.72 10185.53 +290.64  -154.23
RUT      438.10 +  5.03   433.07 -  5.58   438.65 + 12.95  -  2.89
TRAN    2320.69 + 74.03  2246.66 -   .92  2247.58 + 73.30  - 60.45
VIX       28.76 -  3.64    32.40 +  1.87    30.53 -  5.31  -   .61
VXN       58.59 -  2.60    61.19 +  4.28    56.91 - 12.37  +  3.30
TRIN       0.90             0.92             0.87             1.19
TICK       +784             +701             +828             +342
Put/Call    .74              .70              .53              .80     
------------------------------------------------------------------
WE= week ended

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

Stocks finish with gains to cap off bullish week

Today's session was relatively uneventful as far as the broader 
market averages go.  Many of the sector we follow showed mixed 
results in today's session, but weekly action found broader 
market averages higher, with few disappointments for bullish 
equity traders.

This morning's release of Producer Price Index (PPI) data showed 
a drop in prices at the producer level for October, as prices 
fell 1.6%, marking the biggest decline in producer prices since 
the government began tracking data on price movements at the 
wholesale level in 1947.  This news spooked investors at the 
opening of trading as many feared the U.S. economy might be 
headed down the same road as the Japanese economy did several 
years ago.

But bulls fought back an hour later after the University of 
Michigan said consumer sentiment actually rose to 83.5 in early 
November, which was fractionally higher than early October's 
reading of 82.7.  Creating stability for stocks today was that 
economists had expected the sentiment numbers to be much lower at 
78.3.  Drew Matus, an economist with Lehman Brothers said, "We 
suspect that the recovery in the equity markets, which are now 
above September 10 levels, is largely behind this index's (PPI) 
resilience.  However, we do not expect this confidence to 
necessarily translate into higher retail sales going forward."

6-week closes for major averages and indexes





Above is a list of the major averages and indexes we follow on a 
weekly, if not hourly basis during the day.  Numbers in red 
indicate a decline week-over-week, while numbers in blue indicate 
an advance.  

This week's big winner was the CBOE Internet Index (INX.X), which 
gained better than 18% for the week.  Also strong were the Oil 
Service stocks (OSX.X) which rose 6.4%, after getting hit to the 
downside in the prior week.

Brokerage stocks (XBD.X) had a strong week as well.  Broader 
market bullishness bodes well for the group as more active market 
participants generate commissions for many in the group and hopes 
of renewed investment banking activity is renewed.

Sector weakness was found for the second week in a row in the 
Insurance Index (IUX.X) and the $700 level looks to be a widely 
watched level.  Today's close at $702 come just above a rounding 
50-day moving average.  This week, the IUX.X had managed to rally 
as high as the $731 level on Tuesday, when the Fed cut rates 50-
basis point, but was turned lower after encountering its rolling 
200-day moving average and bearish resistance trend on the point 
and figure chart (see Tuesday's 01:00 EST Intra-day update)

Key:  NYA=NYSE COMPOSITE, INDU=DOW INDU AVG, SPX = S&P500, 
OEX=S&P100, COMPX=NASDAQ COMP, NDX=NASDAQ-100, RUT=RUSSELL 2000, 
BTK=BIOTECH, GSO=SOFTWARE, SOX=SEMICONDUCTOR, NWX=NETWORKING, 
INX=INTERNET, DDX=DISK DRIVE, IXTCX=NASDAQ TELECOM, XTC= NORTH 
AMERICAN TELECOM, BIX= S&P BANKING, BKX.X=KBW BANK, 
XBD=BROKER/DEALER, IUX=INSURANCE, RLX=RETAIL, DRG=DRUGS, 
HCX=HEALTH CARE, XAL=AIRLINE, OIX=OIL, OSX=OIL SERVICE, 
XNG=NATURAL GAS, FPP=FOREST/PAPER, CEX=CHEMICAL, TRAN=TRANSPORTS, 
UTY=UTILITY, XAU=GOLD/SILVER.

Johnny come lately, or just in time?

It's tough to look at this week's gain of 18% in the CBOE 
Internet Index (INX.X) and not feel like things may be getting 
carried away.  For some, a week is an eternity and an 18% gain is 
just too late to get exposure.  For others it's just the 
beginning of what could become a longer-term move higher.

This week, we added a new section to the PremierInvestor.net site 
called "High Risk/ High Reward."  Risk is what you make it.  We 
can try and control risk with the use of stops, what then remains 
uncertain is potential reward.

Everyone looks at stock differently.  I look at every stock as if 
it has the ability to trade $0.00 and the upside as infinity.  
This keeps me honest with my investments/trades and has me using 
disciplined stops on both bullish and bearish trades.

As it relates to our profiled bullish trade in AOL Time Warner 
(NYSE:AOL) on November 6th at $35.15, this stock could 
conceivably trade zero, and we know for fact that the stock 
traded $96 in December of 1999.  "Johnny come lately", or just in 
time?

AOL Time Warner 





There's no way I'd risk a stop to 80.9% retracement (from $0.00 
to $96), or $18.32, with a trade in AOL at $35.15, but we used a 
much tighter level of retracement to set up our trade.  However, 
when you step back and look at the chart of AOL on a weekly 
interval (much longer-term) you begin to see that we may not be 
"too late" in an Internet/media play at this point.  This week, 
shares of AOL broke firmly above its 50-day moving average.  The 
stock has had the ability to make some nice moves higher when 
this has occurred in the past.  We'll be pretty happy if the 
stock can achieve the 40-week (200-day) moving average near $43.

I received an excellent e-mail from a subscriber this week 
regarding our play in AOL.  She liked the trade, but opted to 
establish only 1/2 position long in the stock as to help reduce 
the risk in her account.  When a stock is trading below a longer-
term 200-day moving average, but has some room to move on a rally 
attempt, establishing a 1/2 bullish position (if you are 
comfortable with the trade) is an excellent strategy.  Then, 
should your bullish target be achieved, you can then make a 
decision as to averaging up (buying more stock), holding your 
position, or exiting the position with a profit.  All along, 
edging up your stop in the direction of profitability to help 
reduce your risk in the trade.

Dow Portfolio

Just as the Dow portfolio finished last week, we end the week the 
same.  15 stocks are trading above their September 10th close, 
while 15 stocks still trade below.

In order of % gain since September 10th close... (WMT, IBM, C, 
MSFT, DD, MMM, JNJ, INTC, HWP, JPM, PG, HD, AA, GE, CAT)  In 
order of % decline since September 10th (IP, KO, MRK, XOM, MO, 
AXP, MCD, T, HON, SBC, UTX, GM, DIS, BA, EK)

Correction to Friday's 01:00 EST Update

In today's 01:00 update, I either forgot how to calculate 
percentage gain/loss, or hit the wrong numbers on the keypad of 
the calculator.  

In our discussion of percentage gain of profiled bullish play, I 
mistakenly typed that shares of Bemis (NYSE:BMS) were up 4% from 
our profiled bullish pick of October 26th.  At the time of that 
update, shares of BMS were trading up $4.18 from profiled price 
of $44.99, thus a 9% gain from profiled price.  The S&P 500 Index 
(SPX.X) is up 1.4% since its October 26th close.

Jeff Bailey
Senior Market Technician


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

Quiet session to end the week
by Russ Moore

Quiet session to end the week. A real shocker of a PPI report, 
and some positive overseas news failed to motivate what appeared 
to be a very tired market.

The major indices moved within a narrow range, testing both sides 
of the flat-line. The DOW squeaked out a gain of +0.2 percent 
while the NASDAQ added +0.7 percent and the big cap NDX +0.3 
percent.

Volume was light, with only 1.08 billion shares trading on the 
NYSE, and 1.52 billion shares moving on the NASDAQ. Market 
breadth was a split decision, as winners edged out losers by a 
16/15 count on the big board, while losers nosed out winners by 
an 18/17 margin on the tech index.

Oil service, oil, gold, utility, and retail sectors enjoyed nice 
gains on the broader markets while Internet, networker, and 
software sectors were the stars on the tech side.

The October Producer Price Index (PPI) fell -1.6 percent, blowing 
away the -0.5 percent that had been forecast. The decline was the 
largest one-month drop since its inception in 1947. Michigan 
Sentiment rose to 83.5, versus last month’s 82.7, as investors 
expressed a little more optimism over current, and future 
expectations.

Trim Tabs reported inflows to equity funds of 8 billion dollars 
for the five days ending November 7. That compares with last 
week’s outflow of 3.3 billion dollars. These numbers coincide 
with the Michigan Sentiment number, and perhaps, mark the first 
sign of the retail investor doing a little “market nibbling”.


VIX 
Friday 11/09 close: 28.76


VXN
Friday 11/09 close: 58.59


30-yr Bonds
Friday 11/09 close: 4.88


Total Put/Call Ratio: .74


Equity Option Put/Call Ratio: .61


Index Option Put/Call Ratio:  1.70


===

NASDAQ 100 Index (NDX/QQQ)
52-Week High: 103.51
52-Week Low:   28.19
Current close: 37.73

Volume/Open Interest
Maximum calls: 35/ 61,223
Maximum puts : 33/101,665

Moving Averages
 10 DMA 36
 20 DMA 35
 50 DMA 33
200 DMA 42

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: 577.99

Volume/Open Interest
Maximum calls: 560/5,454
Maximum puts : 500/9,482

Moving Averages
 10 DMA  563
 20 DMA  561
 50 DMA  553
200 DMA  615

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: 1120.31

Volume / Open Interest
Maximum calls: 1100/19,864
Maximum puts :  950/21,888

Moving Averages
 10 DMA 1094
 20 DMA 1090
 50 DMA 1078
200 DMA 1193

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:  9,608.00

Volume / Open Interest
Maximum Calls: 94/23,565
Maximum Puts   92/19,651

Moving Averages:
 10 DMA  9,383
 20 DMA  9,361
 50 DMA  9,292
200 DMA 10,226

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: 555.03

Volume / Open Interest
Maximum Calls: 570/  519
Maximum Puts:  420/1,576

Moving Averages
 10 DMA 561
 20 DMA 540
 50 DMA 502
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: 506.81

Volume / Open Interest
Maximum Calls: 570/ 519
Maximum Puts:  420/ 774

Moving Averages
 10 DMA 484
 20 DMA 467
 50 DMA 459
200 DMA 573

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: 391.15

Volume / Open Interest
Maximum Calls: 420/ 282
Maximum Puts:  400/1000

Moving Averages
 10 DMA 391
 20 DMA 394
 50 DMA 388
200 DMA 393

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 11/09
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 
10/23/01     377,177   413,658   (36,481)     0.1%
10/30/01     377,468   413,729   (36,261)   (0.06%)
11/06/01     376,807   416,063   (39,256)    8.2%

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
10/23/01       127,016    71,212    55,804     9.9%
10/30/01       123,546    71,225    52,321    (6.2%)
11/06/01       132,106    81,208    50,898    (2.7%)

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 
10/23/01      29,920    40,358   (10,438)  (19.7%)
10/30/01      32,055    45,574   (13,519)   29.5%
11/06/01      39,410    47,890    (8,480)  (37.0%)

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
10/23/01       11,567     6,934    4,633     (22.9%)
10/30/01       12,725     6,475    6,250      34.9%
11/06/01       11,406     8,143    3,263     (47.7%)

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 
10/23/01      25,568    11,832   13,736     (9.2%)
10/30/01      25,872    12,556   13,316     (3.1%)
11/06/01      25,977    11,951   14,026      5.4%

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
10/23/01       4,902    11,900    (6,998)     (7.8%)
10/30/01       4,261    11,220    (6,959)      0.0%
11/06/01       3,569    12,281    (8,712)     25.2%
 
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        +50,898     +52,321        -39,256     -36,261

Total Open
Interest %       (+23.86%)  (+26.86%)     (-4.95%)   (-4.58%)
                 net-long   net-long      net-short  net-short


                     Small Specs             Commercials
DJIA futures     (Current) (Previous)    (Current) (Previous)
Open Interest
Net Value          -8,712     -6,959          +14,026    13,316
Total Open
interest %       (-54.97%)    (-44.95%)      (+36.98%)  (+34.65%)
                 net-short   net-short     net-long    net-long


                     Small Spec              Commercials
NASDAQ 100      (Current) (Previous)    (Current) (Previous)
Open Interest
Net Value         +3,263      +6,250         -8,480    -13,519

Total Open
Interest %        (+16.69%)   (+32.55%)     (-9.71%) (-17.41%)
                 net-long   net-long      net-short net-short


What COT Data Tells Us
----------------------
Indices:.Four weeks and counting as the Commercials barely budged 
in their net-short position on the S&P 500. We did see a move 
worth noting on the NASDAQ 100 with the Commercials and Small 
Specs headed in opposite directions. The Commercials reduced 
their net-short position while the Small Specs reduced their net-
long positions. Are the Commercials moving towards a net-long 
position on the NASDAQ? We have seen considerable strength on the 
tech index this week and a move to net-long by the Commercials 
would get our attention.

Gold: No significant changes on Commercial positions.

10/09 64,729 contracts net-short
10/16 51,816 contracts net-short
10/23 25,191 contracts net-short
10/30 33,199 contracts net-short
11/06 35,435 contracts net-short

Data compiled as of Tuesday 11/06 by the CFTC.


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

NEW BULLISH PLAY
=================

Network Associates - NETA - close: 20.82 change: -0.11 stop: 19.45

Company Description:
With headquarters in Santa Clara, Calif., Network Associates, 
Inc. is a leading supplier of security and availability solutions 
for e-businesses. Network Associates is comprised of three 
product groups: McAfee, delivering world class anti-virus and 
security products; Sniffer, a leader in network availability and 
system security; and Magic Solutions, providing web-based service 
desk solutions.  (source: company press release)

Why We Like It:
If software is going to be one of the sectors that leads the 
market higher next week then we want to pick one that has been a 
leader through all of October.  We've been watching NETA ever 
since its positive earnings announcement on the 18th of October.  
The stock continued its leadership position in the software 
sector early in November but this last Thursday/Friday saw 
significant profit taking.  The very strong bounce on Friday 
afternoon confirmed our suspicions that more buyers were just 
waiting in the wings and jumped in when it hit support near $20.  
Some readers may want to play its subsidiary MCAF instead but 
NETA has already endured a pullback similar to the one in the GSO 
software index.  Thus we can reduce our risk by entering on the 
dip.  The point-and-figure chart shows the stock had broken out 
above resistance at $20 and traded as high as $23 but the profit 
taking late this week produced a three box pull back right to 
support.  Our goal is $25 but we wouldn't complain with a bounce 
back to $23.  We'll initiate the play with a stop at $19.45, 
which is 22 cents below the Friday low.  Traders should keep an 
eye on the GSO.X.  If it falls under the 160 level NETA will 
likely fall with it.  Confirm stock and sector direction before 
pulling the trigger.  

Picked on November 9th at $20.82 
Gain since picked:         +0.00
Earnings Date              10/18 (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.

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

Applied Micro Circuits - AMCC - close: 12.65 change: +0.60

WHAT TO WATCH:  If the SOX can hang on to the 500 level then AMCC
could be a real winner next week.  Shares have been slowly 
consolidating higher and appears to be making a bullish wedge with
the top at $14.  I would consider anything between $13 and $12 as
a potential entry point to go long with a stop under $12 (maybe
11.80?).  You could day trade the range to $14 but a breakout over
$14 could produce a run to $16 or higher.




---

Avanex Corp - AVNX - close: 5.74 change: -0.03

WHAT TO WATCH:  We really wanted to add AVNX to our high risk/
reward section for the weekend.  The stock recently broke out
above resistance at $5.00 and cleared older resistance at 5.50.
The pullback on Thursday/Friday managed to hold the 5.50 level
which could be a launching point for next week.  We would consider
AVNX a play with a stop below 5.50 and a target of 6.80.  Confirm
stock direction first!




---

Pumatech Inc - PUMA - close: 2.70 change: +0.12

WHAT TO WATCH:  Yet another stock we wanted to add to the high
risk/reward section to the newsletter is PUMA.  This is a software
stock that has already had an incredible run since mid-October.
Shares have consolidated back to support (previous resistance)
at $2.50 as well as its 15-dma.  We would consider a play with a
stop under 2.50 and a target of its 200-dma at $3.40.  Keep an
eye on the software index (GSO.X) and MSFT for leadership.




---

Praxair Inc - PX - close: 49.87 change: +0.43

WHAT TO WATCH:  This stock has also had a very strong run up from
its September lows but the last couple of weeks has seen resistance
at $50.  With the lows climbing higher and higher PX is coiling for
a bullish breakout.  The last time the stock broke out above the 
$50 level was back in May and shares immediately shot up to $54
in just two days.  There is no way to know if we'll get a similar
reaction and there's no guarantee of an upside breakout but the
odds are in the bulls favor right now.  Consider a trigger point
to go long at $50.25 or $50.30 with a stop near $49.50.




---

Brocade Communications - BRCD - close: 30.24 change: +0.32

WHAT TO WATCH:  BRCD was another networking stock we really liked 
for the play list but chose FFIV instead.  Shares of BRCD had 
broken out of a bullish wedge on Monday and shot up above price
resistance at $30.  The last couple of days have shown the stock
consolidating sideways and it held the $30 level with Friday's
gain.  We think it could trade up to $35 or even its 200-dma at
$36.60 if we get a strong rally in the Nasdaq next week.  Keep
an eye on CSCO and the networking index (NWX.X) for leadership.
FYI: downside support should be at 27.50 and 25.00.




---

Fleming Cos. - FLM - close: 21.35 change: -2.35

WHAT TO WATCH: Retail grocery has not been a very strong sector
lately but FLM appears to be the downside leader.  Shares produced
a clear sell signal when it broke down below the $22 level on 
big volume this Friday.  Shares have closed below the previous
low back in March ($21.50) and the stock could be looking to fill
the gap from February of this year.  Plan for some round number
price support at $20 but we would look for shares to trade down
to $16.80.




---

ICON plc - ICLR - close: 24.09 change: -1.86

WHAT TO WATCH:  This company specializes in handling clinical
trials for drug and biotech companies.  We don't know what's
driving it down besides an overall pall over the sector but
this stock began a long-term down trend after topping out in
July.  This is the second time in a month it has broken down
below its 200-dma and this one looks like it will stick.  The
breakdown below the $25 level was crucial and bears will probably
aim for the $20 level.  We would expect some support at $23 and
$22 so this may be a slower moving short play.




---

Ikon Office Solutions - IKN - close: 9.89 change: +0.24

WHAT TO WATCH:  The well known office equipment supplier traded
higher at the end of October.  Unfortunately for shareholders
the stock has been range bound between $9.50 and $10.00 the
entire month of November (to date).  There is no way to tell if
the stock will breakout up or down but the prevailing trend is
up.  We would consider a trigger of $10.05 as an entry to go
long this stock with a stop at 9.45.  Quickly adjust the stop
up if the stock confirms the breakout.






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is possible at this or some subsequent date, the editors and
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PremierInvestor.net Newsletter          Weekend Edition 11-09-2001
                                                    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
=================================================================
To view this email newsletter in HTML format with imbedded
charts and graphs, click here:
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In section two:

Net Bulls
  New Bullish Plays:    CHKP, NETA
  New Bearish Plays:    WWCA
  Long-Term Bullish:    ERICY
  Bullish Play Updates: ALGX, LGTO, LRCX, NMTC
  Closed Plays:         ADPT, SBC

Stock Bottom / Active Trader
  Bullish Play Updates:  BMS, CLX, GE, HON
  Bearish Play Updates:  BRL, HCR, PPDI
  Closed Plays:          AHC

High Risk/Reward
  New Bullish Plays:     FFIV
  Bullish Play Updates:  AOL, HM

Split Trader
  - none -


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

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

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


Check Point Software - CHKP - close: 35.96 change: +1.69 stop: 32.95

Company Description:
Check Point Software Technologies is the worldwide leader in 
securing the Internet. The company's Secure Virtual Network (SVN) 
architecture provides the infrastructure that enables secure and 
reliable Internet communications. SVN secures business-to-
business (B2B) communications between networks, systems, 
applications and users across the Internet, Intranets and 
extranets. Check Point's Open Platform for Security (OPSEC) 
provides the framework for integration and interoperability with 
"best-of-breed" solutions from over 300 leading industry 
partners.  (source: company press release)

Why We Like It:
We like CHKP because it's a software stock that is focused on 
growing revenues while earnings have been in line with estimates 
despite a short-fall due to the 9-11 attacks.  They reported 
earnings on Oct. 18th with a 20% rise in 3Q profits.  Management 
said they saw business pick up on September and carry through 
into October.  Analysts seem to think they will be able to meet 
their estimates for the 4Q.  We also like CHKP because the stock 
has broken out above serious resistance near the 33.50 to 34.00 
level and has been slowly building on its gains since then.  The 
stock has already retraced to previous resistance and found 
support.  Friday's positive move back over the $35 mark has the 
stock poised for its next leg up.  The point-and-figure chart 
shows the stock in its second attempt to breakthrough the 
descending bearish resistance line (the first attempt was in 
early August).  This time we think CHKP can break through if the 
software sector (GSO.X) can maintain support at 160.  This is a 
crucial level for the group and traders should keep an eye on it 
if they plan to trade CHKP.  With the GSO trading near 160 we'll 
know early on if the sector will trade up from here or whether 
there will be more profit taking.  To bolster the group, the 
biggest component, MSFT is looking bullish as well.  MSFT has 
completed its own breakout above its 200-dma and closed above 
round number price resistance at $65.  Now, back to CHKP...we're 
going to initiate the play with a stop at $32.95.  This is a 
little wider than we normally like to keep stops but once CHKP 
confirms the move up we'll raise our stop.  Our initial target is 
$40 but the stock could trade higher so we're not going to 
publish any exit points yet.  Longer-term traders can look for 
the p-n-f chart bullish price objective near $47.

Picked on November 9th at $35.96 
Gain since picked:         +0.00
Earnings Date              10/18 (confirmed)




---

Network Associates - NETA - close: 20.82 change: -0.11 stop: 19.45

Company Description:
With headquarters in Santa Clara, Calif., Network Associates, 
Inc. is a leading supplier of security and availability solutions 
for e-businesses. Network Associates is comprised of three 
product groups: McAfee, delivering world class anti-virus and 
security products; Sniffer, a leader in network availability and 
system security; and Magic Solutions, providing web-based service 
desk solutions.  (source: company press release)

Why We Like It:
If software is going to be one of the sectors that leads the 
market higher next week then we want to pick one that has been a 
leader through all of October.  We've been watching NETA ever 
since its positive earnings announcement on the 18th of October.  
The stock continued its leadership position in the software 
sector early in November but this last Thursday/Friday saw 
significant profit taking.  The very strong bounce on Friday 
afternoon confirmed our suspicions that more buyers were just 
waiting in the wings and jumped in when it hit support near $20.  
Some readers may want to play its subsidiary MCAF instead but 
NETA has already endured a pullback similar to the one in the GSO 
software index.  Thus we can reduce our risk by entering on the 
dip.  The point-and-figure chart shows the stock had broken out 
above resistance at $20 and traded as high as $23 but the profit 
taking late this week produced a three box pull back right to 
support.  Our goal is $25 but we wouldn't complain with a bounce 
back to $23.  We'll initiate the play with a stop at $19.45, 
which is 22 cents below the Friday low.  Traders should keep an 
eye on the GSO.X.  If it falls under the 160 level NETA will 
likely fall with it.  Confirm stock and sector direction before 
pulling the trigger.  

Picked on November 9th at $20.82 
Gain since picked:         +0.00
Earnings Date              10/18 (confirmed)





  ----------------
  New Bearish Play
  ----------------

Western Wireless - WWCA - close: 26.40 change: -0.36 stop: 28.05

Company Description
Western Wireless Corporation is a leading provider of 
communications services in the Western United States. The company 
owns and operates wireless phone systems marketed under the 
Cellular One national brand name in 19 states west of the 
Mississippi River.  (source: company press release)

Why We Like It:
WWCA is one wireless company that is under performing its peers.  
The company announced earnings on Thursday of last week (11/07) 
and reported a 3Q loss despite a jump in its customer base.  The 
negative earnings news sparked a technical breakdown below 
significant support at $27.50.  Thursday's loss was fueled by 
huge volume of 6.6 million shares versus the average volume of 
only 984K.  Friday's drop only confirmed the move.  What makes 
WWCA so tempting was the stock's lack of true support until the 
$20 level which hasn't been tested since April of 1999.  The 
point-and-figure chart shows the stock on a new sell signal with 
a new bearish price target of $16.  We're going to aim for $20.  
To begin the play we'll start with a stop at 28.05.  This is 30 
cents above the Thursday afternoon bounce to 27.75.  If we see 
another down day on Monday we'll reconsider our stop placement.  
There is one item bears need to be aware of.  As of Thursday, 
Nov. 8th, the FCC has decided to do away with the wireless cap in 
2003.  Originally the FCC limited how much any one company had 
control over a city's cellular airwaves.  This was to allow for 
competition and prevent monopolization of wireless markets.  Now 
that the regulation has been voted out smaller companies like 
WWCA are prime takeover candidates.  Fortunately, we don't think 
there will be any merger news soon as the new rules don't take 
effect for over a year.  Besides, if you were going to make a bid 
for WWCA, would you want to buy it at $26 or at $20?

Picked on November 9th at $26.40 
Gain since picked:         +0.00
Earnings Date              11/07 (confirmed)





--------------------------
New LONG-TERM Bullish Play
--------------------------

LM Ericsson Telephone Co. - ERICY - close: 4.86 chg: +0.06 stop: 4.25

Company Description
Ericsson is shaping the future of Mobile and Broadband Internet 
communications through its continuous technology leadership. 
Providing innovative solutions in more than 140 countries, 
Ericsson is helping to create the most powerful communication 
companies in the world.  (source: company press release)

Why We Like It:
Ericsson may have lost the handset war with rival Nokia but the 
Swedish powerhouse is still the leader in wireless infrastructure 
equipment and has diversified operations spanning the globe.  
Earnings were disappointing but the company said it was cash flow 
positive in the 3Q which gave investors new hope.  The company 
saw strong sales in several markets across the globe but analysts 
feel competition is still tough for ERICY's key markets.  
Fortunately, the company is the leader in 3G technology even 
though the delay in moving to third generation wireless networks 
has surely weighed on its earnings performance.  The real play in 
ERICY is the belief that all or most of the bad news is out.  
Investors will be looking forward to 2002 and 2003 for 
improvement in revenues.  The drop to $3 should have shaken out 
most of the weak willed shareholders and now buyers can step in 
while the market is looking for technology stocks.  The bounce on 
Friday was important as shares closed above the April and June 
lows of $4.75.  The stock has been in a steady up trend and we 
are aiming for $7.00 over the next six months if not earlier.  
The point-and-figure chart confirms the stock is on a new buy 
signal.  It also confirms the long-term descending bearish line 
of resistance at $7.00.  Investors should take note of key 
resistance levels with the first hurdle at $5.00, again at 5.75, 
the 200-dma near 6.00 and then 6.60.  The stock should find 
support at 4.70 and 4.55 and either would be attractive entry 
points.  We're starting the play with a stop at 4.25 because of 
our extended time horizon.  If you're willing to take a little 
more heat, consider a stop at 3.99.  

Picked on November 9th at $ 4.86
Gain since picked:         +0.00
Earnings Date              10/26 (confirmed)






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

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

Allegiance Telecom - ALGX - close: 9.00 chg: +0.12 stop: 7.90

Shaking off a lackluster Friday for the broader markets, shares 
of ALGX still managed a small gain of 1.35%.  The pullback from 
late afternoon Thursday saw some follow through on Friday morning 
and ALGX dipped to the 8.60 level.  After consolidating there for 
about half an hour bulls started to gingerly step into the stock 
and shares found new buying pressure at 8.80 (look at a 5 minute 
chart).  We are encouraged by the little surge in the last 30 
minutes of trading that appeared to be fueled by big buyers (look 
at the volume come in at the close).  As long as nothing tragic 
transpires over the weekend this stock looks ready to climb 
higher.  Conservative traders that are uncomfortable with our 
stop at 7.90 may be able to get by with a stop under today's low 
(8.45 maybe?) but this doesn't leave much room for maneuvering.  
If ALGX can trade to $10.00 we'll close the play for a profit.  
Our current gain of 38 cents is a worth about 4.4%.  

Picked on November 7th at $ 8.62
Gain since picked:         +0.38
Earnings Date              10/23 (confirmed)




---

Lam Research - LRCX - close: 21.27 change: -0.13 stop: 20.50 

We haven't heard anything from the LRCX annual shareholder 
meeting that took place on Thursday in Fremont, CA.  I guess 
sometimes no news is good news.  Fortunately, we would expect 
some good news from the upcoming analyst conferences.  Companies 
always try to put on the best face possible and we might get some 
positive comments after the Nov. 13th DB Alex Brown 2001 
Technology Conference in Baltimore in addition to the SoundView 
Technology Outlook Conference in Boca Raton the same day.  Shares 
of LRCX have been trading in sync with the SOX index lately and 
as long as the sector can hold on to the 500 level LRCX may be 
able to maintain support at $21.00.  We don't have much room for 
shares to move before hitting our stop at 20.50.  If the stock 
falls below $21 we would plan on getting closed out.  Here's to a 
positive Monday!

Picked on November 2nd at $21.34
Gain since picked:         -0.07
Earnings Date              10/09 (confirmed)




---

Legato Systems - LGTO - close: 9.77 change: -0.07 stop: 8.99

There isn't much new to report on LGTO from Thursday's update.  
We're still frustrated over the bad fill with the stock gapping 
up but that's life.  We still believe the $9.50 level is the spot 
to watch for short-term direction on LGTO.  If 9.50 holds as 
support we may be okay.  Only aggressive traders should consider 
taking positions in the stock right now.  We would prefer to 
initiate new long positions once shares trade back above the $10 
mark.  One bullish comment we can make about Friday's trading was 
the 7-cent decline came on very low volume.  Unfortunately, we 
have to counter that with a bearish comment.  The late day 
selling at 9.80 looks negative.  We're willing to take the heat 
to $9.00 if the stock continues to slip but more conservative 
traders should consider tighter stops.  

Picked on November 8th at $10.47 
Gain since picked:         -0.70
Earnings Date              10/23 (confirmed)




---

Numerical Tech. - NMTC - close: 25.51 change: -1.20 stop: 24.25 

It appears there were some weak-handed investors that didn't care 
to hold their positions in NMTC over the weekend.  A little 
profit taking is to be expected but we had hoped for a stronger 
bounce off any dip to $25.50.  The past month has shown NMTC to 
find investors buying the dip once shares breach its 10-dma...and 
usually the stock recovers before the close.  As of Friday's 
close, NMTC is about 20 cents above its 10-dma.  If the profit 
taking continues on Monday we would be looking for buyers to step 
in at $25.00 or $24.50.  Use caution when looking for new 
entries.  We would only suggest aggressive traders look for 
entries under $25.00, which should be significant round number 
support.  We're going to set a target of $29.50 as our exit point 
to the upside.  FYI, if NMTC trades under $24.50 we would 
probably look for a deeper pull back to the $22 level.  The 
newsletter's stop remains at 24.25.  

Picked on November 2nd at $25.44
Gain since picked:         +0.07
Earnings Date              10/10 (confirmed)





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

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

Adaptec Inc - ADPT - close: 14.14 change: +0.55 stop: 13.50

Of all the crummy luck!  The ugly pull back from Thursday's 
session had some follow through Friday morning.  Shares of ADPT 
opened at 13.56 before trading down to the day's low near 13.30.  
After touching 13.30, the buying began again and ADPT actually 
traded to our target of $15.00 multiple times before ending the 
day above important support at $14.  Obviously we're frustrated 
about closing the play at a 4.9% gain versus a 16.6% gain if we 
had been allowed to sell at $15.  The stock still looks strong 
and the low today was just above its 10-dma.  Long-term investors 
should be encouraged that its point-and-figure bullish price 
objective has risen to $30.  Unfortunately, I suspect the stock 
may have some trouble getting through the $15.50 - $16.00 area, 
thus our target was $15.  If we get it, a dip back to $13 would 
be an attractive entry point to consider new long positions but 
the stock looks like it will trade up from here barring any 
unseen events over the weekend.

Picked on November 2nd at $12.86
Gain since picked:         +0.64
Earnings Date              10/18 (confirmed)





  --------------------
  Closed Bearish Plays
  --------------------

SBC Communications - SBC - close: 38.44 change: +0.45 stop: 38.38

*NEVER TRIGGERED AN ENTRY*

Our potential short play on SBC was not triggered on Friday even 
though the tight coil in its bearish wedge was just begging for a 
breakout to the downside.  The stock managed a small gain and 
never traded below $38.00.  Our trigger to go short was $37.70.  
The stock still looks bearish and to reverse course it needs to 
break out above its 10-dma and 15-dma directly overhead at 38.49 
and 38.86 respectively.  Shares should see significant price 
resistance at $40 but the stock is considered oversold and the 
MACD is about to produce a bullish crossover.  If you feel SBC 
may try to play catch up with the rest of the Dow components 
despite its dismal earnings outlook then aggressive long 
positions could be taken but we're going to avoid it for the time 
being unless shares do breakdown.  

Picked on November Xth at $xx.xx -- waiting to be triggered
Gain since picked:         +0.00
Earnings Date              10/22 (confirmed)






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

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

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

Bemis Co. - BMS - close: 49.36 change: +0.85 stop: 47.75 *new*

What can we say?  Someone(s) with a lot of cash has decided to 
own shares of BMS.  Volume has been huge the last seven days in a 
row.  For technical traders that believe volume is the key, a 
rising share price on rising volume is as good as it gets, 
especially with no news event associated with the move.  This 
could indicate that fund managers are positioning themselves in 
the stock.  Are shares of BMS overbought?  In the short-term the 
answer is yes, but MACD is very strong and the stock may have 
another day or two left in it before any significant pullback.  
Solid support doesn't exist until its previous resistance level 
at $45.  We anticipate the $50 level will be psychological (round 
number) resistance.  Thus, our target to close the position for a 
profit is $49.95.  If BMS does trade to $49.95 during Monday's 
session we'll close the play for an 11% move.  If not, we're 
going to raise our stop to just below Friday's low at $47.75.  
This should ensure a gain of over 6% as long as the stock doesn't 
gap down.  On a positive note, BMS has cleared previous highs 
between $46.50 and $48 set back in August of 1997 and March of 
1998.  Friday set a new all time high for the stock.  We 
mentioned in Thursday's update that the new point-and-figure 
chart bullish price objective has risen to $76.  Long-term 
investors will need to trade with a wider stop than we have set 
and endure the cyclical ups and downs that will develop as BMS 
aims for that lofty goal.

Picked on October 26th at $44.99
Gain since picked:         +4.35
Earnings Date              10/23 (confirmed)




---

Clorox Co. - CLX - close: 39.06 change: +0.28 stop: 37.90 *new*

The quote systems may say the low for CLX on Friday was $38.22 
but we don't see when it occurred.  If you're curious you could 
check the time and sales but since we weren't stopped out we'll 
leave it to those with more time on their hands.  During the last 
five days it appears the $38.20 level is the new short-term 
support level and buyers looking for new entries may want to 
target shoot near that area.  We are encouraged by the positive 
close on Friday but as expected the $39.50 level was resistance.  
Volume continues to be big but we need to see stronger gains to 
make us comfortable again.  Currently the newsletter is only up 
about 4.2%.  Considering the current trend we're going to raise 
our stop to $37.90.  Other big movers in this group have seen two 
days of profit taking and that leaves CLX as one of the relative 
strength leaders.  Confirm the stock and market direction before 
committing new capital and pick your entry points carefully.  
Right now anything near $38.25 or over $40 looks to be the best 
bets.

Picked on November 1st at $37.48
Gain since picked:         +1.58
Earnings Date              11/01 (confirmed)




---

General Electric - GE - close: 40.41 change: +0.06 stop: 37.75

With a sideways Dow Jones Industrials it should not surprise 
readers that GE spent most of the day drifting sideways as well.  
We're still encouraged about the positive breakout over $40 on 
Thursday and the low today at $39.84 happened near the open when 
markets were weak.  Since then the stock appears to be slowly 
coiling tighter for its next breakout above resistance at $40.50.  
If you read the CLX play above you know we got some strange 
numbers on the highs and lows for the day.  The same has occurred 
here with GE.  Our quote system says GE traded to 41.44 or within 
10 cents of its 100-dma.  According to our charts the stock never 
moved above 40.50.  Due to GE's horizontal trading pattern we're 
not going to raise our stop just yet.  More conservative 
investors could look at tighter stops at $38.25 or even $38.75 
depending on your risk profile.

Picked on November 8th at $40.10
Gain since picked:         +0.31
Earnings Date              10/24 (confirmed)




---

Honeywell Intl - HON - close: 31.73 change: -0.02 stop: 29.00

We're still in a holding pattern with our long play on HON.  If 
the Dow and the NYSE can trade higher next week then we should be 
in good shape.  The stock really started to coil tightly on 
Friday but we're forced to anticipate a short-term move either 
direction.  Since HON is more of an intermediate length trade for 
us we're going leave our stop where it is.  Those not willing to 
risk that much capital could try to get by with a stop under 
Wednesday low of $30.46.  With the 10-dma crossing over the 50-
dma and the MACD still trading strongly we should be okay.  
Investors looking for new entries to go long may want to consider 
target shooting for dips to $30 or wait for the stock to breakout 
above resistance at $32.  

Picked on November 2nd at $31.15
Gain since picked:         +0.58
Earnings Date              10/24 (confirmed)





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

Barr Labs Inc - BRL - close: 67.64 change: +0.97 stop: 71.00

Our new short play on the drug company Barr Labs did produce a 
bounce on Friday but we were expecting one.  With heavy price 
resistance at $70 and the 200-dma at 69.71 we feel pretty 
confident that BRL has farther to fall before it trades over 
these levels again.  The stock is offering a great entry to short 
it here and traders can reduce their exposure even more with a 
stop just north of $70.  We're going to leave ours at $71 until 
the stock confirms the move down with a close below Thursday's 
low of $65.50.  If you're trying to time an entry you may want to 
keep one eye on the Drug index (DRG.X).  Not that shares of BRL 
have paid much attention to the sector these last two weeks it 
may give an indication of short-term strength or weakness.  
Confirm stock direction before initiating a new position.

Picked on November 8th at $66.68
Gain since picked:         -0.97
Earnings Date              10/23 (confirmed)




---

Manor Care - HCR - close: 20.75 change: -0.25 stop: 21.75 

Bearish traders in HCR got a close call on Friday morning when 
the bounce from Thursday saw from follow through.  The stock 
produced a small gap and traded higher from there to $21.59 
before drifting lower again and finally collapsing in the last 
five minutes of the day.  Occasionally we like to watch the 5-dma 
for very short-term strength or support and on Friday the 5-dma 
acted as overhead resistance before the dip at the close.  We're 
still looking for shares of HCR to trade to $20.05 intraday to 
close the stock for a profit.  However, if the stock does rebound 
again on Monday the stop at $21.75 will close us out with a 10% 
move.  FYI, the HCX.X continues to look weak but a close under 
800 would be a bearish signal.

Picked on October 26th at $24.23
Gain since picked:         +3.48
Earnings Date              10/26 (confirmed)




---

Pharmaceutical Product Development Inc. - PPDI -
close: 24.45 change: -0.49 stop: 26.00 

Whoa!  Shares of PPDI were very volatile at Friday's open after 
UBS Warburg upgraded the stock.  The broker moved their rating 
from a hold to a buy and added a 12-month target of $33.  PPDI 
opened at 25.85 and traded to its 10-dma at 25.95 before giving 
it all back and more within the first 45 minutes of trading.  The 
fact that shares closed back under the $25 level and closed 
negative after a positive upgrade says a lot about the stock's 
internal mix of buyers and sellers.  The 5-dma has proven to be 
overhead resistance these last two days (minus the few minutes 
Friday morning) and could offer an area to target shoot for new 
entries.  However, we would only consider new short positions 
once the stock closes below support at $24, which has been 
holding since the 6th of November.  A breakdown below the 800 
level in the HCX.X might fuel the drop in PPDI to our target of 
$20.00.  If the stock trades to $20 we'll close the play for a 
profit.

Picked on November 2nd at $26.00
Gain since picked:         +1.55
Earnings Date              10/16 (confirmed)





===============
AT Closed Plays
===============

  -----------------
  Closed Bearish Plays
  -----------------

Amerada Hess - AHC - close: 61.86 change: +2.71 stop: 60.05 

Insert your favorite curse word here: ______.  In a surprise 
move, the Russian Prime Minister indicated that Russian oil 
producers would team up with OPEC in cutting production to raise 
oil prices.  This news sent oil up over a $1.00 to close at 
$22.22 for a December contract of light sweet crude.  Just four 
days ago this contract was under $20 because Russia was not 
willing to curtail production at OPEC's request.  The rise in oil 
prices sent the Oil index (OIX.X) soaring 7 points to close above 
its 50-dma and the 300 point level.  Shares of AHC gapped up to 
open at $61.75, well above our stop at 60.05.  We are forced to 
close the play with a $3.39 loss.  It will be interesting to see 
how the market interprets this news over the next few months.

Picked on November 2nd at $58.36
Gain since picked:         -3.39
Earnings Date              10/23 (confirmed)





==================================================================
HIGH RISK/HIGH REWARD (HR) section
==================================================================

============
HR New Plays
============

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

F5 Networks, Inc - FFIV - close: 19.19 change: +0.51 stop: 17.45

Company Description
F5 Networks is the leader in Internet Traffic and Content 
Management (iTCM), and delivers application aware networks 
through its open Internet Control Architecture. F5 features the 
industry's leading set of integrated products and services that 
manage, control and optimize Internet traffic and content. Our 
solutions automatically and intelligently deliver the best 
possible Internet performance, availability and content 
distribution for service providers, enterprises and e-businesses. 
Our products remove bandwidth congestion and optimize the 
availability and speed of mission-critical Internet servers and 
applications, including web publishing, content delivery, e-
commerce, caching, firewalls and more. Our solutions are widely 
deployed in large enterprises, the top service providers, 
financial institutions, government agencies, healthcare, and 
portals throughout the world. (source: company press release)

Why We Like It:
As long as the market is buying tech stocks investors will be 
attracted to the previous high-flyers in the networking sector.  
CSCO's earnings last week were an encouragement to tech bulls 
everywhere and the implications that business should improve were 
not lost on shareholders or should I say new shareholders of 
FFIV.  During the first week of November the stock has broken out 
above significant resistance at $17.50 to trade as high as 22.94.  
Since then we've seen more than a 20% pullback in shares.  This 
profit taking came all the way back to previous resistance and 
buyers jumped in to buy the dip.  A quick look at Friday's 
trading shows the stock making strong gains from the lows of the 
day.  We're listing this in the high risk / high reward section 
because shares have been so explosive lately.  We feel we can 
reduce our risk by entering on the bounce offered on Friday but 
with a stop at 17.45 we're still risking $1.74 or 9%.  Our goal 
is $25.00 but we'd be happy with a return to Thursday's high near 
$23.  The point-and-figure chart is much more bullish with a 
price objective close to $35.  Conservative traders might be able 
to get away with a stop at $18.50 but any dip in the market on 
Monday might stop you out.  Keep an eye on the networking sector 
(NWX.X) and CSCO.  If CSCO can breakout above its 200-dma then 
second tier stocks like FFIV could really move higher.

Picked on November 9th at $19.19 
Gain since picked:         +0.00
Earnings Date              10/25 (confirmed)





===============
HR Play Updates
===============

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

AOL Time Warner - AOL - close: 37.10 change: +0.65 stop: 34.25 *new*

Yet another strong day for our movie magic play with shares of 
AOL ticking higher.  As discussed in the Thursday update we creep 
ever closer to what will likely be THE hit of the competitive 
Thanksgiving movie season.  The estimates of what Harry Potter's 
first movie for AOL and all the products and sales that go with 
such a blockbuster continue to inch higher as well.  New 
estimates put profits, not revenues but potential profits, for 
AOL Time Warner at $350 million.  That's right and the company 
plans to produce seven books with seven movies.  That's one heck 
of a cash cow that AOL could milk for years.  In addition to 
AOL's Potter movie, the company will also be releasing the first 
of three Lord of the Rings films this December.  There has been 
months and months of hype and build up for this LOTR franchise 
with plans to release one a year for the next three years.  In 
addition to all the secondary products they will sell associated 
with LOTR the AOL movie division could be quite a golden goose 
for the company.  Now that the play is up about 5.5% since we 
picked it we're going to raise our stop to $34.25.  This is a 
quarter below the Wednesday low.  Traders should look for the $35 
to act as support now that it has been broken as resistance.  

Picked on November 6th at $35.15 
Gain since picked:         +1.95
Earnings Date              10/17 (confirmed)




---

Homestake Mining Co. - HM - close: 8.21 change: +0.15 stop: 7.95

Our speculative play on gold is still alive but the stock appears 
to be on life support.  Our patient gave us a start Friday 
morning with a positive open but only managed to trade sideways 
for the rest of the session.  The stock is coiling downward into 
a bearish wedge which by definition has a downward bias for the 
breakout.  We would not suggest new positions (or any positions) 
until the stock can close above the $8.50 level.  Of course 
buying on dips at $8.00 with a stop at $7.95 does limit one's 
risk (as long as the stock doesn't gap down on you).

Picked on November 2nd at $ 8.37
Gain since picked:         -0.16
Earnings Date              10/31 (confirmed)






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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
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

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Do not duplicate or redistribute in any form.

PremierInvestor.net Newsletter         Weekend Edition 11-09-2001
                                                   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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charts and graphs, click here:
http://www.PremierInvestor.net/htmlemail/4988_3.asp
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In section three:

Market Watch for Week of November 12th
   - 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)      

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


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

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

Symbol  Company               Date           Comment      EPS Est   

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

ABN     ABN Amro Holdings     Mon, Nov 12  Before the Bell   N/A
AC      Alliance Capital Mana Mon, Nov 12  -----N/A-----     N/A
AOT     Apogent               Mon, Nov 12  After the Bell   0.27
BNG     Benetton Group        Mon, Nov 12  -----N/A-----     N/A
ABV     Comp de Bebidas Améri Mon, Nov 12  -----N/A-----    0.13
DYS     Dist y Serv D&S SA.   Mon, Nov 12  -----N/A-----    0.14
LEE     Lee Enterprises       Mon, Nov 12  Before the Bell  0.33
MAY     May Department Store  Mon, Nov 12  -----N/A-----    0.17
SPP     Sappi Ltd ADS         Mon, Nov 12  Before the Bell  0.22
TSN     Tyson Foods           Mon, Nov 12  Before the Bell  0.20
HLTH    WebMD                 Mon, Nov 12  After the Bell  -0.05

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

ANF     Abercrombie&Fitch     Tue, Nov 13  After the Bell   0.42
BF      BASF                  Tue, Nov 13  Before the Bell   N/A
BEAS    BEA Systems           Tue, Nov 13  After the Bell   0.05
CVC     Cablevision Systems   Tue, Nov 13  Before the Bell -1.10
CZN     Citizens Comm. Co.    Tue, Nov 13  Before the Bell -0.03
CUZ     Cousins Properties    Tue, Nov 13  After the Bell   0.53
CXR     Cox Radio             Tue, Nov 13  Before the Bell  0.04
ENGSY   Energis Plc           Tue, Nov 13  Before the Bell   N/A
GALN    Galen Holdings PLC    Tue, Nov 13  Before the Bell   N/A
HP      Helmerich & Payne     Tue, Nov 13  -----N/A-----    0.52
HD      Home Depot            Tue, Nov 13  -----N/A-----    0.32
IFX     Infineon Tech AG      Tue, Nov 13  Before the Bell   N/A
JCP     JC Penney             Tue, Nov 13  Before the Bell  0.13
LMCa    Liberty Media Group   Tue, Nov 13  -----N/A-----     N/A
MTA     MATÁV                 Tue, Nov 13  Before the Bell   N/A
NTAP    Network Appliance     Tue, Nov 13  After the Bell   0.01
NMK     Niagara Mohawk        Tue, Nov 13  Before the Bell  0.00
RMG     Rainbow Media Group   Tue, Nov 13  Before the Bell  0.11
IMI     SanPaolo IMI SpA      Tue, Nov 13  After the Bell    N/A
SCMR    Sycamore Networks     Tue, Nov 13  After the Bell  -0.17
TI      Telecom Italia        Tue, Nov 13  -----N/A-----     N/A
NZT     Telecom New Zealand   Tue, Nov 13  During the Market N/A
IPG     The Interpublic Group Tue, Nov 13  After the Bell   0.13
PNX     The Phoenix Companies Tue, Nov 13  Before the Bell -0.16
TJX     TJX Companies         Tue, Nov 13  Before the Bell  0.54
UBS     UBS AG                Tue, Nov 13  Before the Bell   N/A
VOD     Vodafone Group        Tue, Nov 13  Before the Bell   N/A
WMT     Wal-Mart              Tue, Nov 13  -----N/A-----    0.34
WPI     Watson Pharmaceutical Tue, Nov 13  -----N/A-----    0.62
WSM     Williams-Sonoma       Tue, Nov 13  Before the Bell  0.05
ZLC     Zale Corporation      Tue, Nov 13  Before the Bell -0.12

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

AZ      ALLIANZ AG            Wed, Nov 14  -----N/A-----     N/A
ATH     Anthem, Inc.          Wed, Nov 14  -----N/A-----     N/A
AMAT    Applied Materials     Wed, Nov 14  After the Bell   0.04
ARM     ArvinMeritor Inc.     Wed, Nov 14  After the Bell   0.21
BOX     BOC Group PLC         Wed, Nov 14  -----N/A-----     N/A
CWP     Cable&Wireless Plc    Wed, Nov 14  Before the Bell   N/A
CPB     Campbell Soup         Wed, Nov 14  Before the Bell  0.41
DHI     D.R. Horton           Wed, Nov 14  Before the Bell  1.08
EN      Enel S.p.A.           Wed, Nov 14  -----N/A-----     N/A
E       ENI SpA ADR           Wed, Nov 14  -----N/A-----     N/A
FD      Fed Depart Stores     Wed, Nov 14  Before the Bell  0.16
GMST    Gemstar-TV Guide Int  Wed, Nov 14  After the Bell    N/A
PSS     Payless ShoeSources   Wed, Nov 14  Before the Bell  0.56
PBR     Petroleo Bras, S.A.   Wed, Nov 14  -----N/A-----    0.99
REP     Repsol YPF, S.A.      Wed, Nov 14  -----N/A-----    0.32
SI      Siemens               Wed, Nov 14  Before the Bell   N/A
TTEK    Tetra Tech            Wed, Nov 14  After the Bell   0.33
TIF     Tiffany Co            Wed, Nov 14  Before the Bell  0.13
VGR     Vector Group Ltd      Wed, Nov 14  After the Bell   0.23
WFMI    Whole Foods Market    Wed, Nov 14  After the Bell   0.27

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

A       Agilent Technologies  Thu, Nov 15  After the Bell  -0.61
ADSK    Autodesk              Thu, Nov 15  After the Bell   0.35
IRE     Bank of Ireland       Thu, Nov 15  Before the Bell   N/A
BRG     BG Group              Thu, Nov 15  Before the Bell   N/A
DELL    Dell                  Thu, Nov 15  After the Bell   0.15
EON     E.ON AG               Thu, Nov 15  -----N/A-----     N/A
GPS     Gap Inc.              Thu, Nov 15  After the Bell  -0.07
IPR     International Power   Thu, Nov 15  Before the Bell   N/A
INTU    Intuit                Thu, Nov 15  After the Bell  -0.15
KSS     Kohl`s                Thu, Nov 15  -----N/A-----    0.28
MRVL    Marvell Tech GroupLTD Thu, Nov 15  After the Bell   0.03
JWN     Nordstrom             Thu, Nov 15  After the Bell   0.04
PHI     Phil Long Dist Tele   Thu, Nov 15  Before the Bell   N/A
SBUX    Starbucks             Thu, Nov 15  After the Bell   0.14
TEF     Telefonica, S.A.      Thu, Nov 15  -----N/A-----     N/A
TWSTY   TeleWest Comm         Thu, Nov 15  Before the Bell   N/A
TD      Toronto Dominion Bank Thu, Nov 15  -----N/A-----     N/A
WIND    Wind River Systems    Thu, Nov 15  After the Bell  -0.02

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

AEOS    American Eagle Out    Fri, Nov 16  Before the Bell  0.41
KKD     Krispy Kreme Doughnut Fri, Nov 16  Before the Bell  0.10


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

Upcoming Stock Splits This Week...

Symbol  Company Name          Splits  Payable    Executable
  
FCE.A   Forrest City Enter.   3:2     11/14      11/15
KRON    Kronos                3:2     11/15      11/16
FULL    H.B. Fuller           2:1     11/16      11/19


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

November is in full swing and investors are hoping that an
end of year fourth quarter rally won't be derailed by the
record number of earnings warnings we've already received 
about the end of 2001.  Of course with a lot of the bad news
already on the table investors will be focusing on a more
positive 2002.  The market will be watching the Retail sales
number on Wednesday and the CPI numbers on Friday. 



Monday, 11/12/01
----------------
None


Tuesday, 11/13/01
-----------------
None


Wednesday, 11/14/01
-------------------
Retail Sales           Oct  Forecast:   2.0%  Previous:  -2.4%
Retail Sales ex-auto   Oct  Forecast:   0.2%  Previous:  -1.6%


Thursday, 11/15/01
------------------
Business Inventories   Sep  Forecast:  -0.3%  Previous:  -0.1%
Initial Claims       11/10  Forecast:   475K  Previous:   450K
Philadelphia Fed       Nov  Forecast:  -25.0   Previous: -27.4


Friday, 11/16/01
----------------
CPI                    Oct  Forecast:  -0.1%  Previous:   0.4%
Core CPI               Oct  Forecast:   0.1%  Previous:   0.2%
Industrial Production  Oct  Forecast:  -0.9%  Previous:  -1.0%
Capacity Utilization   Oct  Forecast:  74.7%  Previous:  75.5%




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

SC      Shell Transport & Trading  45.20     +0.60
GLM     Global Marine Inc          17.49     +0.99
SKE     Spinnaker Exploration      43.99     +0.55
SGY     Stone Energy Corp          39.65     +1.47
JBX     Jack In The Box Inc        25.58     +0.58

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

AG      Agco Corp                  13.39     +1.19
TTIL    Tti Team Telecom           18.99     +3.16
BPRX    Bradley Pharmaceuticals    14.15     +1.15

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

NVDA    NVIDIA Corp                53.20     +3.45
WGR     Western Gas Resources      35.05     +2.62
LE      Land's End Inc             44.95     +2.05
VIP     Vimpel Communications      24.55     +1.12
WBSN    Websense Inc               27.68     +1.08

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

SGP     Schering-Plough Corp       35.58     -1.24
BA      Boeing Co                  33.24     -1.66
HNZ     H.J. Heinz Co              39.90     -2.80
CHIR    Chiron Corp                51.05     -3.08
TECD    Tech Data Corp             43.18     -3.12

----------------------------------------- 
Recently Overbought With Bearish Signals (Stocks over $20)
------------------------------------------- 

GENZ    Genzyme Corp               52.86     -1.46
CAG     Conagra Foods              23.59     -0.39
ACE     Ace Ltd                    36.81     -1.54
ANPI    Angiotech Pharmaceutical   44.05     -2.39
EASI    Engineered Support Sys     47.72     -3.04



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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
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

*****************************************************************
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DISCLAIMER

Option Investor Inc is neither a registered Investment Advisor nor a Broker/Dealer. Readers are advised that all information is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor is it to be construed as a recommendation to buy, hold or sell (short or otherwise) any security. All opinions, analyses and information included herein are based on sources believed to be reliable and written in good faith, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. In addition, we do not necessarily update such opinions, analysis or information. Owners, employees and writers may have long or short positions in the securities that are discussed.

Readers are urged to consult with their own independent financial advisors with respect to any investment. All information contained in this report and website should be independently verified.

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