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Daily Newsletter, Monday, 11/12/2001

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PremierInvestor.net Newsletter                 Monday 11-12-2001
                                                  section 1 of 2
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In section one:

Market Wrap: First there was one, then there were three...
Market Sentiment: Techs save the day
Play-of-the-Day: New 52-Week Highs!
Watch List: PLCM, JNJ, KSS, RHAT, LPNT, SBC

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U.S. Market Numbers
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MARKET WRAP  (view in courier font for table alignment)
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        11-12-2001        High      Low     Volume Advance/Decline
DJIA     9554.47 - 53.63  9606.10  9408.60  991 mln   1496/1561	
NASDAQ   1840.10 + 11.70  1848.00  1782.48 1.57 bln   1777/1770
S&P 100   576.13 -  1.86   578.31   566.41   totals   3273/3331
S&P 500  1118.33 -  1.98  1121.71  1098.32
RUS 2000  440.48 +  2.38   440.48   432.15
DJ TRANS 2272.60 - 48.09  2320.50  2241.79
VIX        31.26 +  2.50    33.06    30.92
Put/Call Ratio      0.61
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===========
Market Wrap
===========

First there was one, then there were three...

By session's end the Dow finished down 53.  After a lower open on 
news that a plane had crashed near New York City, stocks managed 
to cut the bulk of their losses and finish down fractionally.  
Early on, stocks traded to news and you could really feel the 
uncertainty of just how closely the market was digesting the news 
coming out of New York.

At first, it was believed that the flight involved was an inbound 
flight to John F. Kennedy Airport and the "assumption" seemed to 
be made from that report that this time it would not be a 
terrorist related event, as the WTC and Pentagon airline attacks 
were found on departing flights.

But the Federal Aviation Administration (FAA) later corrected 
today's reports saying that American flight 587 was departing JFK 
as an outbound flight headed for Santo Domingo in the Dominican 
Republic.  Market participants immediately turned into sellers 
with the thought of "oh no, here we go again."

As time passed and eyewitness reports began to hit the news 
wires, market participants began to think more rational and 
absorbed new information that the crash followed what appeared to 
have parts of the plane falling off, just prior to the planes 
descent.  

While the events that took place were horrible, the market seemed 
to find some calm that the possibility that today's crash was 
mechanical failure and not that of terrorism.

In today's 01:00 EST Update on PremierInvestor.net, we noted that 
shares of Dow component Minnesota Mining and Manufacturing 
(NYSE:MMM) had just edged into positive territory (one) and then 
three other Dow components had edged green.  By session's end, 9 
stocks had managed to finish with a gain (EK, HWP, IBM, INTC, KO, 
MCD, MO, MSFT and WMT).  At one point, the Dow Industrials were 
trading down, 200 points at 9,408, but managed to claw back and 
finish down just 53 points by the close.

Not all stocks participated in today's comeback, as airlines 
stocks felt the bulk of selling as the Airline Index (XAL.X) fell 
5.75% to $65.22 as today's plane crash put further dampening on 
any type of near-term recovery taking place toward traveler's 
psychology and investor's psychology toward the group.

Airline Stocks - Sorted by volume




I've put "**" by those stocks that comprise the Airline Index 
(XAL.X) to give subscribers a feel for how those stocks play into 
today's volume and price action in the sector.  

While today's plane crash involved American flight 587, shares of 
AMR Corporations (NYSE:AMR) were the most heavily traded and fell 
9% to $16.49.  Yet "bad news" in the sector had other acting as 
if their planes were all involved in today's crash.  Since they 
weren't, we can only assume that the MARKET is still very jittery 
about the group and any type of bad news is an excuse to rid the 
portfolio of the stocks near-term and move on to other 
investments where thoughts of terrorism are less likely to be 
prevalent.

While there were no confirming reports today that terrorism was 
at play in today's crash, the negative "perception" of air travel 
will not help move the vacationing public toward this mode of 
transportation anytime soon.  With some analysts feeling that 
some companies are on the brink of financial hardship caused by 
economic slowing and the September 11th terrorist attacks, 
today's crash may have been the last straw for some holding long 
in the group.

Microsoft says Windows XP sales at 7 million copies

Shares of Microsoft (NASDAQ:MSFT) traded a relatively tight range 
of $63.65 to $66.44 today, but managed to finish near their 
session high at $65.69 following an early morning press release 
that said the company has sold more than 7 million copies of 
Windows XP since worldwide sales began two weeks ago.

Microsoft (MSFT) was one of the 4 stocks in the Dow Industrials 
that managed to move into positive territory while I was writing 
today's 01:00 EST Update and that action seemed to bring some 
bidders into the software sector and our bullish play in shares 
of Check Point Software (NASDAQ:CHKP).

Check Point Software - 




The recent triple-top buy signal on the point and figure chart at 
$35, along with the breaking of longer-term bearish resistance at 
$36 on the point/figure chart had us looking at shares of Check 
Point Software (CHKP) and retracement.  We felt the stock looked 
bullish and market makers trying to control their inventory in 
the stock might have a "buy side" bias in the stock.  The reason 
for this "analysis" was the interesting action recently taking 
place near the $28.85 level.  Somebody was watching and buying 
near that level.  With retracement bracket set from the 05/21/01 
close and current bullish price objective from point/figure chart 
vertical count near $63 and recent relative low close on 09/27/01 
of $20.70, retracement levels currently displayed look to be 
those being used by market makers.  Bullish target as profiled is 
$40 for short-term traders, but the stock may have some upside to 
the $42.11-$47 range under extreme sector/market bullishness 
going forward.

It's day by day right now

Well, we all knew that there was a chance that the markets would 
be susceptible to potential terrorist actions.  While early 
reports of today's plane crash DO NOT point to terrorism, we did 
get a taste of reality of the type of market environment we're 
in.

Participants are edgy regarding ANYTHING that could be terrorist 
related and today was a good test of the market's resolve.  At 
the end of the day's trading, I'd have to say that bearish 
trader's must be somewhat frustrated.

As I look through the lists of "bullish percent data" from 
Dorsey/Wright and Associates, only one sector has edged into 
"overbought" territory.  That sector would be the sector (BPSEMI) 
at 70% bullish.  This indicator recently read 6% bullish in late 
September, and is now the first to reach an "overbought" 
condition above 70%.  In late April and then early May of this 
year, the semiconductor bullish percent reached a level of 76% 
and that matched a level of bullishness of 76% found in January 
too.  

Earlier today at OptionInvestor.com I mentioned that it is 
entirely possible that this indicator could show a reading of 
100% if not 94% before we see some type of reversal lower, but 
traders need to be aware that this indicator now hints that bulls 
carry the bulk of the risk near-term.  In September, the bears 
carried the risk when the indicator reached a level of 6%, then 
reversed 3-boxes to 12%.  Since that time, it's been all X's 
straight to 70% as bullishness builds.  

With the semiconductor bullish percent data now at "overbought" 
levels on an institutional level, we want to be monitoring this 
group of stocks closely.  Weakness will most likely be due to 
profit taking by those that stepped up to the plate near the $345 
level in the Semiconductor Index (SOX.X) when bullish percent was 
in a bulls favor for a reversal at 6% bullish.  Profit taking and 
negative action in the near-term, could put a bit of a lid on 
other technology sectors.

At the same time, subscribers will note how "bullish" the 
Internet Index (INX.X) has been lately.  Today, the INX.X added 
another 1.52% gain to close at $124, marking the highest close 
for this group of stocks since August 24th's close of 126.66.  On 
August 24th, the INX.X was in a major decline, which eventually 
was reversed on September 27th.  According to Dorsey/Wright and 
Associates (www.Dorseywright.com) the Internet bullish percent 
(BPINET) reached a low of 10%, before the recent reversal higher 
to 26%, which is still considered "oversold" and market condition 
here is that of "bull alert" status.  In essence, bears still 
have the risk in the sector.  In January of this year, the 
bullish percent for the Internet group reversed from a low of 6% 
to rise to 46% by months end, only to fall back to 10% by early 
April.  Currently, it would take a reading of 34% to get this 
indicator back into "bull confirmed" status.

What the bullish percent data is telling me is that we need to be 
alert to the Semiconductor sector perhaps being a candidate for 
profit taking and profit taking there could put a lid on 
technology for awhile, especially for stocks that appear 
overextended on their charts.

There is also a scenario that we simply see some rotation take 
place to more "oversold" or at least not as "overbought" sectors 
in technology and that's where we want to try and focus our 
attention near-term.

For the most part, we've been having success from the long side 
in the software sector.  It's perhaps a little "easier" to keep 
an eye on Microsoft (NASDAQ:MSFT) as the "engine" for the sector, 
and then be playing some of the "components" at what look to be 
levels where buyers come in and push a stock higher.

Each day will build upon the next.  It is entirely possible that 
we see the Semiconductors trade down 4% one day, but Software, 
Internet, Biotech or another area of technology buck the trend 
and trade higher that same day.  I know of no one person that 
knows what the semiconductor stocks are going to do in the next 
week.  Their internals are very strong and breadth is there for a 
push higher, but the probabilities of it continuing are getting 
slimmer.  It just looks like they need to rest or profit taking 
needs to eliminate some risk in the group.

If the semiconductors want to pull all of technology higher, then 
bulls will cheer, but I think there will be more cheering done by 
those positioned in other technology sectors that aren't as 
overbought.

A bear knows where that the software sector reached a yearly high 
bullish percent of 58% in January and then a 54% high in May of 
this year.  Current reading of 44% still gives some upside to 
those levels and nowhere close to the 70% "overbought" level like 
the semiconductors.

Sometimes, profits are found where risk levels are lower.  I've 
learned over the years that the bullish percent charts do a 
pretty good job of indicating such levels of market/sector risk 
and we'll be looking to try and benefit by selling or avoiding 
buying stocks in the higher risk areas and looking to buy lower 
risk areas of the market, that look to be gaining favor.

For those that have read "Point and Figure Charting" by Thomas J. 
Dorsey, you might want to visit his site at www.dorseywright.com 
and browse around.  They have a complete list of bullish percent 
charts that I have not found anywhere else.  

For those interested in poking around and looking at some 
different point/figure charts, visit www.stockcharts.com and 
browse the point/figure section there.  Both are excellent 
starting points to help understand just how supply/demand plays 
into stock selection.

Jeff Bailey
Senior Market Technician


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

Techs save the day
by Russ Moore

Techs save the day. The NASDAQ continued to show its muscle by 
turning an early morning sell-off in to a positive close.

News of another New York plane crash hit the news wires minutes 
before the open and had stocks heading south at the opening bell. 
The major indices had reached their lows by 10:00am and continued 
to trade in negative territory for the remainder of the morning. 
Just after lunch, reports that the crash did not seem to have a 
terrorist connection made it’s way through Wall Street, and that 
was enough of a catalyst to get things headed in the other 
direction.

The DOW ended the session with a loss of -0.6 percent. The NASDAQ 
and NDX added +0.6 and +0.9 percent respectively. Volume was 
light with 977 billion shares trading on the NYSE and 1.58 
billion shares trading on the NASDAQ. Market breadth saw 
decliners nose out winners by a 16/15 count on the big board 
while ending in a draw on the tech index.

A strong showing in the chip, networking, software and Internet 
sectors helped power the NASDAQ while gains in oil service, 
natural gas, retail and biotech sectors helped prop up the DOW.

The positive tech showing was aided by the re-affirmation of 
earnings guidance by CIENA. The company posted a +9.66 percent 
gain on the day.

Funds flow tracker Trim Tabs, maintained its bearish stance due 
to the negativity of corporate investors. The company 
acknowledged strength in buybacks but said that new offerings and 
insider selling are offsetting the positive impact created by the 
company repurchases.

Sentiment continues to reside in the bullish camp. The positive 
run on the NASDAQ has been impressive, and that has frustrated 
bears starting to doubt themselves. The bears keep pointing to 
the soft volume levels as a sign of weakness in the current 
rally, while the bulls seem content to run over every attempt to 
sell-off. The COT report continues to show the Commercial players 
being net-short (bearish) on the SPX however, those numbers have 
decreased substantially over the last month and a move in to the 
net-long column could be a signal that the market floor has 
finally set.


VIX 
Monday 11/12 close: 31.26


VXN
Monday 11/12 close: 58.99


30-yr Bonds
Monday 11/12 close: Closed


Total Put/Call Ratio: .81


Equity Option Put/Call Ratio: .68


Index Option Put/Call Ratio:  1.45


===

NASDAQ 100 Index (NDX/QQQ)
52-Week High: 103.51
52-Week Low:   28.19
Current close: 38.00

Volume/Open Interest
Maximum calls: 38/ 64,934
Maximum puts : 33/101,956

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: 576.13

Volume/Open Interest
Maximum calls: 560/5,476
Maximum puts : 500/9,472

Moving Averages
 10 DMA  565
 20 DMA  562
 50 DMA  552
200 DMA  614

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: 1118.33

Volume / Open Interest
Maximum calls: 1100/20,091
Maximum puts :  950/21,888

Moving Averages
 10 DMA 1098
 20 DMA 1092
 50 DMA 1077
200 DMA 1192

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:  9,554.37

Volume / Open Interest
Maximum Calls: 94/23,470
Maximum Puts   92/19,484

Moving Averages:
 10 DMA  9,412
 20 DMA  9,372
 50 DMA  9,276
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: 555.54

Volume / Open Interest
Maximum Calls: 580/  555
Maximum Puts:  420/1,576

Moving Averages
 10 DMA 561
 20 DMA 542
 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: 519.32

Volume / Open Interest
Maximum Calls: 570/ 519
Maximum Puts:  420/ 783

Moving Averages
 10 DMA 492
 20 DMA 470
 50 DMA 457
200 DMA 572

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: 390.72

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

Moving Averages
 10 DMA 391
 20 DMA 393
 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)
=========================

Ikon Office Solutions - IKN - close: 10.20 change: +0.31 stop: 9.45

Company Description
IKON Office Solutions is one of the world's leading providers of 
products and services that help businesses communicate. IKON 
provides customers with total business solutions for every 
office, production and outsourcing need, including copiers and 
printers, color solutions, distributed printing, facilities 
management, imaging and legal document solutions, as well as 
network design and consulting, e-business development and 
technology training. IOS Capital, Inc., a wholly-owned subsidiary 
of IKON, provides lease financing to customers and is one of the 
largest captive finance companies in North America. With Fiscal 
2001 revenues of $5.3 billion, IKON has approximately 600 
locations worldwide.  (source: company press release)

Why We Like It:
PremierInvestor.net had just highlighted IKN on the weekend watch 
list for a breakout above $10 or a breakdown below $9.50.  It 
appears the prevailing up trend has won and bulls have pushed 
through resistance on strong volume.  Average volume is normally 
372K while today's move turned in 610K shares traded.  The stock 
has spent the last seven sessions consolidating sideways and 
hopefully will be able to run for three or four days on this new 
bullish breakout.  We are expecting to hit resistance at $11 but 
the point-and-figure bullish price objective is targeting north 
of $18.  As short-term traders we probably won't be in the play 
long enough to reach that height but the p-n-f chart is showing 
today's move as a fresh buy signal out of a double top.  We're 
going to initiate the play with a stop at 9.45, which is 5 cents 
below today's low.  More conservative traders could try to get 
away with something under $10.  We'll move our stop up once 
shares confirm the breakout.  It's possible the stock will 
pullback to $10 before moving higher.  This would be a good entry 
point to target shoot.

Picked on November 12th at $10.20
Gain since picked:          +0.00
Earnings Date               10/25 (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.

-----------

Polycom Inc - PLCM - close: 36.20 change: +1.68

WHAT TO WATCH:  This tech stock appears to have captured the bulls
attention.  Shares were pushing up against resistance at $35 last 
week and Monday's session produced the breakout on big volume.
The point-and-figure chart is very bullish for long-term players
with a bullish target of $62.  Unfortunately there appears to be 
a lot of resistance near $37.50 from last January.  Whether or not
shareholders choose to remember it or not will be interesting.  
Could consider a bullish play with a stop under $35 or under $34
based on your risk profile.




---

Johnson and Johnson - JNJ - close: 59.02 change: -0.54

WHAT TO WATCH:  One of the leaders in the drug sector which is 
desperately lacking leadership, shares of JNJ have been trading
relatively sideways for weeks.  There is overhead resistance at
$60 and the bottom of the trading channel is between $57.50 and
$58.  Traders should watch for a breakout either way.  The stock
seems to want to go higher but the sector (DRG.X) has not been 
very strong and there are several drugs stocks really weighing
heavily on the group.  A close above $60 could be a trigger to
go long and a close below $57.50 could be a trigger to go short
but there should be significant support at $55.




---

Kohls Corp - KSS - close: 63.24 change: +0.49

WHAT TO WATCH:  The retail sector has been a big winner for the
month of November so far.  Unfortunately the last few days have
identified steep resistance at 850 for the index with the 200-dma
at 857 above it.  The good news for KSS shareholders is the stock
has been a real leader with strong same store sales.  We like
the stock but there is plenty of overhead resistance between 
$64 and $67.50 for the stock.  We would keep an eye on a potential
pullback to the $60 level as a potential bullish entry.  Be aware
it's possible we don't see the pullback but that doesn't mean 
the stock is worth chasing.




---

Red Hat Inc - RHAT - close: 5.35 change: -0.05

WHAT TO WATCH:  Even though RHAT makes software, its Linux code
is used for networking so the stock tends to move with the
networking sector.  Three sessions ago shares of RHAT broke out 
above very significant resistance at $5.00 while also breaking 
through its 200-dma.  Shares continued higher on Friday but 
the Monday morning dip that was seen across the market brought
RHAT back to previous resistance at $5.00.  Once it was determined
that terrorism was not involved in this morning's tragedy, traders
jumped in to buy the dip for this previous high-flyer.  We would
consider this a high-risk/high reward play.  Today's low, or a 
penny below it, could be a good stop and a trigger to go long could
be shares over $5.50 or any dip back to $5.00.  Now that the stock
is over its 200-dma we think it can run if the Nasdaq and the
NWX.X keep making gains.  Count on potential resistance at every
50 cents (6.00, 6.50, 7.00).  Keep an eye on CSCO.  If CSCO can
get above its own 200-dma at $19.50 we'll probably see a big
move in the group.




---

LifePoint Hospitals Inc - LPNT - close: 29.10 change: +0.91

WHAT TO WATCH:  We would keep an eye on LPNT.  The stock has been 
a big time loser for the Healthcare sector since late September.
The breakdown under $30 a few days ago was a great bearish signal
but today's rally up to $30 and then the pullback could be the 
kind of failed rally short traders are looking for.  There are
two ways to play LPNT.  Short it here with a stop above $30 or 
wait for shares to fall below $27.50.  It looks like shares could
fall as low as $23 before encountering strong enough support.
Keep an eye on the HCX.X for guidance on the sector.  If shares 
close above its 10-dma there could be a short-term oversold rally.




---

SBC Communications - SBC - close: 37.94 change: -0.50

WHAT TO WATCH:  As our readers know we tried to short SBC in the
past but the stock did not trigger our entry point to go short.
The negative day today with shares closing under the $38 level
make the security appear very weak and bears could choose to 
lean on it tomorrow.  The 15-dma, an indicator some traders like
to watch for short-term support/resistance, has been putting
pressure on the stock the last couple of days and may provide
the necessary impetus initiate the next move down.  However, as
a Dow component, any rally in the Dow could spark a new move up
and potential short covering.  Consider a tight stop for a bearish
play.  If shares trade over $38.60 we would watch for an oversold
bounce to $40 or $41.








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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                  Monday 11-12-2001
                                                   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/3574_2.asp
=================================================================

In section two:

Net Bulls
  Closed Bullish Play:           LRCX, NMTC   
  New Bullish Stop Adjustments:  CHKP

Stock Bottom/Active Trader
  New Bullish Play:              IKN
  New Bullish Stop Adjustments:  CLX
  Closed Bearish Plays:          PPDI


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

Lam Research - LRCX - close: 21.90 change: +0.63 stop: 20.50 

In our weekend update for LRCX we discussed how the SOX needed to 
hold the 500 level of support to help keep LRCX above support at 
$21.  The American Airlines tragedy that happened just before the 
markets opened this morning sent investors running and the SOX 
broke its crucial support level.  The first half-hour of trading 
this morning was very negative as America waited to hear if this 
was another terrorist attack.  Fortunately, for the stock market 
it wasn't even though everyone is extremely saddened by today's 
events.  The SOX traded down to 489 while LRCX followed suit with 
its own dip to 20.27.  We were stopped out on the way down at 
20.50.  What both frustrates and encourages us was the strong 
rebound in both the SOX, which closed up 12 points to 519, and 
LRCX, which closed up 63 cents to 21.90.   The low back on Nov. 
2nd was 20.20 and combined with today's low may offer good areas 
to target shoot for those interested in following LRCX for future 
bullish trades.

Picked on November 2nd at $21.34
Gain since picked:         -0.84
Earnings Date              10/09 (confirmed)




---

Numerical Tech. - NMTC - close: 26.10 change: -0.59 stop: 24.25 

Yet another very frustrating development is our play in NTMC.  
The stock had produced some normal profit taking ahead of the 
weekend on Friday.  The airplane tragedy this morning and the 
unknown variables about whether or not terrorist activities were 
involved sent shares of NMTC to lows not seen since November 1st.  
The drop to 23.58 was very fast this morning but we would have 
been stopped out at 24.25 on the way down.  The fact that shares 
rebounded so strongly and closed back over the $26 level would 
encourage us to look for new long positions with our target of 
$29.50 still in affect.  Expect resistance near $27.50.  We will 
keep our eye on it.

Picked on November 2nd at $25.44
Gain since picked:         -1.19
Earnings Date              10/10 (confirmed)





===========================
NB Bullish Stop Adjustments
===========================

CHKP - close: 38.51 change: +2.55

We are raising our stop from 32.95 to 34.45.  



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

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

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

Ikon Office Solutions - IKN - close: 10.20 change: +0.31 stop: 9.45

Company Description
IKON Office Solutions is one of the world's leading providers of 
products and services that help businesses communicate. IKON 
provides customers with total business solutions for every 
office, production and outsourcing need, including copiers and 
printers, color solutions, distributed printing, facilities 
management, imaging and legal document solutions, as well as 
network design and consulting, e-business development and 
technology training. IOS Capital, Inc., a wholly-owned subsidiary 
of IKON, provides lease financing to customers and is one of the 
largest captive finance companies in North America. With Fiscal 
2001 revenues of $5.3 billion, IKON has approximately 600 
locations worldwide.  (source: company press release)

Why We Like It:
PremierInvestor.net had just highlighted IKN on the weekend watch 
list for a breakout above $10 or a breakdown below $9.50.  It 
appears the prevailing up trend has won and bulls have pushed 
through resistance on strong volume.  Average volume is normally 
372K while today's move turned in 610K shares traded.  The stock 
has spent the last seven sessions consolidating sideways and 
hopefully will be able to run for three or four days on this new 
bullish breakout.  We are expecting to hit resistance at $11 but 
the point-and-figure bullish price objective is targeting north 
of $18.  As short-term traders we probably won't be in the play 
long enough to reach that height but the p-n-f chart is showing 
today's move as a fresh buy signal out of a double top.  We're 
going to initiate the play with a stop at 9.45, which is 5 cents 
below today's low.  More conservative traders could try to get 
away with something under $10.  We'll move our stop up once 
shares confirm the breakout.  It's possible the stock will 
pullback to $10 before moving higher.  This would be a good entry 
point to target shoot.

Picked on November 12th at $10.20
Gain since picked:          +0.00
Earnings Date               10/25 (confirmed)





===========================
AT Bullish Stop Adjustments
===========================

CLX - close: 40.29 change: +1.23

The close above $40 was an important step for this bullish trend.
We are raising our stop to $38.95.



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

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

Pharmaceutical Product Development Inc. - PPDI -
close: 25.64 change: +1.19 stop: 26.00 

Hmmm...we are very suspicious of the trading in PPDI on Monday.  
The stock actually traded lower early in the session as the HCX 
and the DRG both traded lower due to the uncertainty surrounding 
this morning's plane crash.  The HCX.X traded below the 800 level 
for a very brief time before bouncing back.  The DRG.X was a 
similar story with the index trading below its 200-dma of 388 for 
a short time before it rebounded.  What is interesting is the 
rest of the trading session for PPDI.  Shares were strong and it 
looked like $26.00 would hold as resistance.  For the moment it 
has.  It's very possible that our bearish bias is clouding the 
picture but $26.25 and $26.50 should be strong overhead 
resistance and we would continue to watch PPDI for a failed rally 
at these levels.  It would not surprise us to see shares trade 
range bound between $26 and $24.  As it stands we are out of the 
play with a net change of zero.

Picked on November 2nd at $26.00
Gain since picked:         +0.00
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 

NAB     National Australia Bank    82.50     +2.70
ESV     Ensco Intl. Inc            22.45     +0.59
TDW     Tidewater Inc              32.47     +1.22
KWD     Kellwood Co                21.65     +0.70

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

CIEN    Ciena Corp                 18.83     +1.65
CRXA    Corixa Corp                13.00     +1.50
MTSN    Mattson Technology Inc      7.69     +1.34
KEYS    Kestone Automotive Ind     14.96     +1.06
APSG    Applied Signal Tech Inc    11.83     +1.38

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

CLX     Clorox Co                  40.29     +1.23
PLCM    Polycom Inc                36.20     +1.68
DOL     Dole Foods Co              21.72     +1.21
FCN     Fti Consulting Inc         33.20     +2.48
DRXR    Drexler Technology Corp    23.55     +1.43

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

AVE     Aventis                    71.10     -1.70
SSP     E.W.Scripps Company        63.28     -2.02
IDTI    Integrated Device Tech     30.80     -1.88
DAL     Delta Air Lines Inc        23.27     -2.72
TTN     Titan Corp                 23.00     -2.82

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

V       Vivendi                    47.64     -0.61
MLNM    Millennium Pharmaceutical  27.46     -0.16
IR      Ingersoll-Rand Co          39.91     -0.29
KMP     Kinder Morgan              37.80     -1.10
CPRT    Copart Inc                 30.60     -2.21



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

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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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