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Daily Newsletter, Monday, 11/19/2001

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PremierInvestor.net Newsletter                 Monday 11-19-2001
                                                  section 1 of 2
Copyright  2001, All rights reserved.
Redistribution in any form is strictly prohibited.

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In section one:

Market Wrap:      This Market's No Turkey
Market Sentiment: Bulls take aim on 10,000
Play-of-the-Day:  Up and Over Resistance
Watch List:       TBL, MGAM, NVDA, KTC, KOPN, EMN

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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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        11-19-2001        High      Low     Volume Advance/Decline
DJIA     9976.50 +109.50  9976.50  9870.40 1.30 bln   1955/1166	
NASDAQ   1934.40 + 35.90  1934.70  1905.36 1.88 bln   2234/1427
S&P 100   595.07 +  7.00   595.08   588.07   totals   4189/2593
S&P 500  1151.06 + 12.41  1151.06  1138.65           
RUS 2000  457.71 +  6.40   457.71   451.31
DJ TRANS 2532.52 + 35.15  2541.13  2499.76
VIX        25.72 -  1.45    27.21    25.46
Put/Call Ratio      0.43
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===========
Market Wrap
===========

This Market's No Turkey

Bulls returned Monday to carry the market averages higher.  A
broad-based rally carried the Dow Jones Industrial Average ($INDU)
closer to the "magical" 10,000 level.  The financial media has
been labeling 10,000 as "magical," it's not my term.  Meanwhile,
the Nasdaq-100 (NDX.X) - the 100 largest Nasdaq-listed stocks - 
broke and closed slightly above its relative high at 1615.  The
S&P 500 (SPX.X) continued along a path of higher highs with its
settlement above 1150.

INDU Swing Stock

Shares of General Electric (NYSE:GE) progressed slightly higher
Monday.  The stock has consolidated in the past four sessions,
noting its sideways trading on lower volume.  It traded in a
tight range of 90 cents Monday, which further reinforced its
current basing pattern.  It was discouraging to witness the INDU
and SPX advance by more than 1 percent without leadership from
GE.  It's apparent that the stock faces resistance at the $41.60
level; GE failed to break above that level in the last three
sessions.  Because of the pivotal role that the stock plays in
both the INDU and SPX, GE is one to watch this week for insight
into the progress of the market's rally.  A breakout above
horizontal resistance at $41.60 could indicate further upside
in both the INDU and SPX.  While weakness from current levels
could portend a pullback in the averages.

The INDU's close above 9900 was its first since September 5.
The INDU faces resistance at 10,000 not so much for technical
reasons but because of the psychology associated with the
level.  Significant media attention has been given to the
level and for that reason resistance may become a self-
fulfilling prophecy at 10,000.  If the INDU were to advance
past 10,000 uninterrupted Tuesday then the bulls will turn
their collective attention to technical resistance between
10,100 and 10,150.  The congestion zone might be a place that
bulls take profits after the recent rally in the INDU.




Bioterrific

The AMEX Biotechnology Index (BTK.X) broke to a new relative
high Monday.  The index had consolidated in a wide range
over the past two weeks but advanced out of that range with
its move past 600.  The BTK.X has acted as a leader for the
broader Nasdaq market over the past two months.  The BTK.X's
move past the 600 level Monday may indicate further upside
for the broader tech sector.




The BTK.X next faces congestion between the 610 and 620
levels.  Thereafter, it has a clear path to its June high of
675.  Several biotech stocks hit new 52-week highs in Monday's
session, including Imclone Systems (NASDAQ:IMCL) and Isis
Pharmaceuticals (NASDAQ:ISIP).  Neither of the aforementioned
stocks is a component of the BTK.X.  Among the best performing
components of the BTK.X included Millennium (NASDAQ:MLNM),
Protein Design Labs (NASDAQ:PDLI), and Affymetrix (NASDAQ:AFFX).

Dirty Socks

The Semiconductor Sector (SOX.X) was knocked down Monday morning
by cautious analyst comments.  Among others, Merrill's Joe Osha
said he believed sentiment had moved ahead of fundamentals in
the group.  In other words, Osha opined that chip stocks had run
too far too fast and were due for a pullback.  Interestingly,
the SOX.X had traded lower in the three sessions prior to the
analyst comments Monday morning.  It finished off of its lows,
but still lower by 1 percent.  

The SOX.X is an important aspect of the broader technology
sector as well as the Nasdaq-100.  Semiconductors are present
everywhere in tech, from cell phones to networking equipment.
Chips are an integral part of technology and so is the price
action of the SOX.X.  In addition, a large number of large
semiconductor companies are components of the Nasdaq-100, such
as Intel (NASDAQ:INTC) and Applied Materials (NASDAQ:AMAT).
The two stocks alone account for over 8 percent of the
Nasdaq-100.

The cautious analyst comments Monday morning may have
contributed to the weakness in the SOX.X, but it may have been
headed lower anyway.  After the recent rally to 550, the current
four day pullback is a routine retracement of the gains.  The
SOX.X has been trading in a pattern of rallying to new relative
highs followed by pullbacks to support, then repeating the
process.  If the four day pullback turns into five days, the
SOX.X may trade down to 500 in Tuesday's session.  The 500
area (between 492 and 500) may be the next logical rebound
point in the SOX.X.  If the Biotech Sector is accurately
forecasting a further rally in the Nasdaq, then a reversal in
the SOX.X from the 500 level would fit nicely into the bullish
thesis.  I can't envision the Nasdaq continuing to new highs
without participation from the SOX.X




Networking Working

The Networking Sector (NWX.X) was led higher Monday by gains
in current Premier Investor plays Ciena (NASDAQ:CIEN) and
Juniper (NASDAQ:JNPR).  Ciena was the second best performing
component with its almost 9 percent gain on the day.  Juniper
held its own with a nearly 4 percent advance.

The NWX.X has staged an incredible run in recent weeks and is
close to test its summer highs.  The index traded up to its 50
percent retracement level at 355 Monday and next faces
resistance at the 364 level, which was its high in early July.

During the month of June, the NWX.X sold off so sharply that
it doesn't have much in the way of resistance until the 440
level.  Of course it needs to clear its immediate overhead
congestion between current levels and 364.  But the fact that
resistance beyond that level is another 80 points away reveals
two things: The index has room to run and bears are growing
nervous.




Broad-Based Rally

Monday's rally included virtually every industry group.
Weakness was witnessed in the Gold and Silver Index (XAU.X),
Utility Index (UTY.X), Oil Index (OIX.X), and the SOX.X.  What
do the Gold and Silver and Utilities have in common?  They're
both defensive in nature and not necessarily the best bets on
an economic recovery.  Even the truly defensive segments of
the market, such as the Pharmas (DRG.X), put in a solid day
Monday.

The best bets on an economic recovery are found in the
consumer (RLX.X), the banks (BKX.X) and brokers (XBD.X),
the manufacturers of materials (CEX.X), information technology,
even telecommunications (XTC.X, YLS.X).  Monday's rally
lifted each of the aforementioned groups and measurably so.
Monday's rally sure felt like a big bet on an economic
recovery next year.

The bears might argue that the rally was on lighter volume,
but that's all the bears have.  In retrospect, I think that
volume was pretty decent for a Monday ahead of a major holiday.
Plus, the internals of the market were solid.  Truly a good
day to be a bull on the market and the U.S. economy.

Eric Utley
Premier Investor


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

Bulls take aim on 10,000
by Russ Moore

Bulls take aim on 10,000. A solid open and close, with a whole 
lotta nothin in between. That pretty much sums up today’s action 
as the bulls came out charging, and, after drifting sideways for 
most of the day, mounted a late day charge to come within 26 
points of the 10,000 mark.

The DOW added +1.1 percent on the day while the NASDAQ gained 
+1.9 percent and the big cap NDX tacked on +2.2 percent. Volume 
was surprisingly strong for the Thanksgiving week with the NYSE 
moving 1.29 billion shares and the tech index trading 1.9 billion 
shares. Winners dominated losers by a 20/12 margin on the big 
board and a 22/14 count on the NASDAQ.

Networking, Software and Internet sectors were headed north while 
the chips continued to give back some of their recent gains. On 
the broader markets the airline sector continued to fly with its’ 
fifth straight positive session. Biotech, retail and financial 
sectors were also on the rise. Utility and gold were both 
underwater.

On the economic front housing starts fell -1.3 percent, slightly 
better than expected. Building permits were off -3.6 percent, a 
36-month low.

The bulls continue to skate in overbought territory while the 
bears keep hoping for a crack to develop real soon. It’s been all 
bulls for the past two months but that doesn’t mean we won’t get 
a modest pullback. Volatility indices are indicating a profit-
taking session may not be too far off as levels continue to fall, 
and are now touching the lower Bollinger Bands.


VIX 
Monday 11/19 close: 25.72


VXN
Monday 11/19 close: 50.83


30-yr Bonds
Monday 11/19 close: 5.20


Total Put/Call Ratio: .53


Equity Option Put/Call Ratio: .46


Index Option Put/Call Ratio:  1.46


===

NASDAQ 100 Index (NDX/QQQ)
52-Week High: 103.51
52-Week Low:   28.19
Current close: 40.49

Volume/Open Interest
Maximum calls: 40/132,987
Maximum puts : 37/ 65,707

Moving Averages
 10 DMA 38
 20 DMA 36
 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: 595.07

Volume/Open Interest
Maximum calls: 580/3,866
Maximum puts : 500/6,231

Moving Averages
 10 DMA  583
 20 DMA  570
 50 DMA  553
200 DMA  611

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: 1151.06

Volume / Open Interest
Maximum calls: 1200/32,454
Maximum puts : 1050/43,012

Moving Averages
 10 DMA 1130
 20 DMA 1107
 50 DMA 1077
200 DMA 1187

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:  9,976.46

Volume / Open Interest
Maximum Calls: 98/25,262
Maximum Puts   88/40,655

Moving Averages:
 10 DMA  9,718
 20 DMA  9,518
 50 DMA  9,258
200 DMA 10,199

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: 607.27

Volume / Open Interest
Maximum Calls: 580/  777
Maximum Puts:  540/1,146

Moving Averages
 10 DMA 578
 20 DMA 564
 50 DMA 508
200 DMA 536

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: 524.76

Volume / Open Interest
Maximum Calls: 640/368
Maximum Puts:  600/607

Moving Averages
 10 DMA 523
 20 DMA 495
 50 DMA 454
200 DMA 568

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: 394.92

Volume / Open Interest
Maximum Calls: 420/406
Maximum Puts:  360/305

Moving Averages
 10 DMA 392
 20 DMA 392
 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 11/16
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 
10/30/01     377,468   413,729   (36,261)   (0.06%)
11/06/01     376,807   416,063   (39,256)    8.2%
11/13/01     381,539   421,284   (39,745)    1.2%

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
10/30/01       123,546    71,225    52,321    (6.2%)
11/06/01       132,106    81,208    50,898    (2.7%)
11/13/01       136,047    87,645    48,402    (4.9%)

Most bearish reading of the year:  36,513 - 5/01/01
Most bullish reading of the year:  91,122 - 3/06/01

NASDAQ-100
Commercials   Long      Short      Net     %Change 
10/30/01      32,055    45,574   (13,519)   29.5%
11/06/01      39,410    47,890    (8,480)  (37.0%)
11/13/01      38,751    49,257   (10,506)   23.9%

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
10/30/01       12,725     6,475    6,250      34.9%
11/06/01       11,406     8,143    3,263     (47.7%)
11/13/01       11,568     6,505    5,063      55.1%

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 
10/30/01      25,872    12,556   13,316     (3.1%)
11/06/01      25,977    11,951   14,026      5.4%
11/13/01      24,145    10,204   13,941     (0.6%)

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
10/30/01       4,261    11,220    (6,959)      0.0%
11/06/01       3,569    12,281    (8,712)     25.2%
11/13/01       4,094    12,121    (8,027)     (7.8%)

Most bearish reading of the year:  (7,572) - 5/08/01
Most bullish reading of the year:   1,909  - 1/16/01


                    Small Specs               Commercials
S&P 500         (Current)  (Previous)     (Current) (Previous)
Open Interest
Net Value        +48,402     +50,898        -39,745     -39,256

Total Open
Interest %       (+21.64%)  (+23.86%)     (-4.95%)   (-4.95%)
                 net-long   net-long      net-short  net-short


                     Small Specs             Commercials
DJIA futures     (Current) (Previous)    (Current) (Previous)
Open Interest
Net Value          -8,027     -8,712          +13,941    14,026
Total Open
interest %       (-49.50%)    (-54.97%)      (+40.59%)  (+36.98%)
                 net-short   net-short     net-long    net-long


                     Small Spec              Commercials
NASDAQ 100      (Current) (Previous)    (Current) (Previous)
Open Interest
Net Value         +5,063      +3,263         -10,506    -8,480

Total Open
Interest %        (+28.01%)   (+16.69%)     (-11.94%) (-9.71%)
                 net-long   net-long      net-short net-short


What COT Data Tells Us
----------------------
Indices:.Commercial players have apparently gone on an extended 
vacation. The Commercial net-short positions on the S&P 500 have 
been stuck around the 4.95 percent range for five weeks. Other 
than the usual gyrations of the Small Specs on the NASDAQ 100, 
significant moves have been absent.

Gold: Only a slight reduction in net-short Commercial positions .

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
11/13 23,637 contracts net-short

Data compiled as of Tuesday 11/13 by the CFTC.



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

SBA Communications - SBAC - close: 11.60 change: +0.93 stop: 9.65

Company Description
SBA is a leading independent owner and operator of wireless 
communications infrastructure in the United States. SBA generates 
revenue from two primary businesses -- site leasing and site 
development services. The primary focus of the Company is the 
leasing of antenna space on its multi-tenant towers to a variety 
of wireless service providers under long-term lease contracts. 
Since it was founded in 1989, SBA has participated in the 
development of over 15,000 antenna sites in the United States.
(source: company press release)

- ORIGINAL WRITE UP, Nov. 16th, 2001 -

Why We Like It:
We like SBAC because the stock looks to have plenty of upside 
potential despite the strong gains it has already made from its 
October lows.  We placed this new long play in the high risk/high 
reward section because of the big move it has already produced 
this week.  The first thing traders should notice when the look 
at a chart of SBAC is the long steady down trend from its late 
April highs.  The stock has painfully evaporated from the $34 
level down to a low on Nov. 7th of $5.91.  During this time the 
selling would ease for a couple of weeks as the stock rebounded 
only to get squashed again.  This price history is yet another 
reason to place it in the high-risk category.  Of course the 
disciplined use of stop losses can prevent most of this pain.   
The stock recently announced its 3Q earnings on November 13th and 
the results were good.  The three months ending on Sept. 30th, 
2001 produced total revenues of $63 million, which is almost 39% 
higher than the previous year.  The company's chairman commented 
on their strong revenues despite a challenging business 
environment.  These positive results helped spur the strong gains 
in the stock this last week.  On a technical level we are 
encouraged that shares have broken through price resistance of 
$10.  The dip to $9.65 late Thursday and early Friday could have 
been bears trying to pressure the stock at a psychological 
resistance level like $10 but the bulls powered it higher.  
Another technical plus was the close at $10.66, which is above 
the Sept. 7th low of 10.48, which could have represented 
additional resistance at 10.50.

So how should traders approach this stock that has already 
rebounded more than 70% from its October lows?  We feel that 
Friday's close at 10.66 is a confirmation of the breakout over 
the $10 level from Wednesday.  The challenges that bulls will 
face is the 50-dma at 11.37 and a retracement level at 11.50.  We 
would encourage readers who have the ability to apply a 
retracement tool to the chart to do so.  We like to view the 
Fibonacci levels of 23.6%, 38.2% and 61.8%.  However, most tools 
also add the 50% level and many will highlight the ends at 0% and 
100%.  In addition to these, if you can, add the 19.1% and the 
80.1% (a couple of Mr. Bailey's favorites).  Now apply the tool 
to SBAC from the late April highs near 34.25 to the October low 
near 5.90.  It is uncanny how accurate the stock trades between 
these levels of support and resistance.  Add these technical 
levels to the common round number price support (psychological 
numbers for investors) and you have a very clear picture of what 
portfolio managers and market makers are trading.  You should see 
the 80.1% retracement very close to the 50-dma.  This could be a 
very tough hurdle for the stock.  However, one short-term signal 
some traders like to use is the 5-dma vs. the 15-dma.  SBAC just 
produced a bullish crossover with the 5 crossing over the 15.  
Additionally, the MACD is turning positive and also has plenty of 
upside.    

We decided to consult the point-and-figure chart for SBAC and it 
shows the stock on a fresh buy signal.  The new p-n-f bullish 
price target is $20.  This coincides with the descending bearish 
resistance line.  We're not quite that greedy but we're still 
going to aim for a move to $13.90 as our ultimate exit point.  
Shares might stall at $12 but if SBAC breaks out above the 11.50 
level there could be a short squeeze big enough to fuel the move 
higher.  We're going to initiate the play with a stop just under 
Friday's low at 9.64.  We're willing to risk 9.5% to hopefully 
make 30%.  If you like the pattern developing in the stock but 
you're not fond of our entry point consider waiting for shares to 
close above the 11.50 level - just use a tighter stop once you 
enter.  It's very possible that shares will pull back to the $10 
area which would make a good entry point but wait for the bounce 
up to begin.

- POD UPDATE, Nov. 19th, 2001 -

Shares of SBAC jumped up today and closed over two tough 
resistance levels.  The 50-dma is at 11.29 and the 80.1%
retracement level (discussed above) is near 11.50.  Today's
big move came on strong volume of 1.3 million shares versus the 
average of just 831K.  We would expect two scenarios tomorrow.  
A follow through surge higher towards our target of $13.90 or a
pullback to the 10.50 or 10.25 level on profit taking.  How you 
react to either scenario depends on your risk profile.  We would
suggest a tighter stop than the newsletter has posted if you 
enter the play above the $11.50 level.

Picked on November 16th at $10.66 
Gain since picked:          +0.93
Earnings Date               11/13 (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.

-----------

Timberland Co - TBL - close: 36.56 change: +1.21

WHAT TO WATCH:  If you're watching the news then you know there 
has been a lot of focus on retail stocks from across different 
industries.  TBL is one retail stock that has been building on
a very strong up trend from its September lows.  Shares have
recently broken through a ton of congestion between $34 and $36
and is resting right at overhead resistance near $36.50.  The
recent strength of the stock over the $35 mark makes the stock
look like a potential long candidate.  Aggressive traders can
go for it now with a target between $40 or its 200-dma (42.50)
and more conservative types can look for a pullback (and bounce)
to the $35 level.




---

Multimedia Games Inc - MGAM - close: 31.49 change: +0.99

WHAT TO WATCH:  Wow, this stock has quite a trend on it from 
mid-September.  We considered adding the stock as a long play
with Friday's close over the $30 mark but it appears the best 
place to enter a bullish position is near the 10-dma.  However,
with the stock in breakout mode there is no telling how far it
can run before coming back to the 10-dma (currently 28.75).  
Aggressive players may want to consider small positions.  We
would prefer for the pullback to the 10-dma or at least a dip 
to the $30 mark again.  With all the attention paid to the
console gaming stocks, fueled by the release of the XBox and
the GameCube, these software players could be ones to trade 
multiple times over the next few months.




---

NVIDIA Corp - NVDA - close: 51.34 change: -1.15

WHAT TO WATCH:  If you're gonna look at console game stocks then
you definitely want to keep an eye on NVDA.  This stock has been
a real favorite with tech investors and momentum traders alike.
Management says earnings are going to be great for the next few
years and analysts agree that the gaming industry is still in
the early stages of a potential multi-year boom.  The pull back
to the 100-dma (48.50) and bounce back over the $50 mark may be
a signal to watch NVDA for a new long position.  The stock has
been holding on to its placement over the $50 level and you can
see how quickly buyers stepped in to buy the dip.  Shares could
continue to consolidate sideways but we would be watching for
entry points to go long while the stock remains above $50.  If
NVDA sees a strong pull back with a broader market dip then the
likely place to look for a bounce would be $45.




---

Korea Telecom - KTC - close: 23.40 change: +0.47

WHAT TO WATCH:  There seems to be a lot of interest in overseas
telecom stocks lately.  KTC is one of them and buyers have been
slowly bidding up the stock for weeks.  Shares have been able to
hold its recent gap up over the $20 level and now are trying to
breakthrough its 200-dma (23.43).  The stock may look a little 
overbought but a breakthrough of its 200-dma could fuel a move up 
to $26.00 or even $28.00, given enough time.  A more conservative
approach would be to wait for a dip and bounce back at $20 or its
10-dma (22.50).  It appears the stock may have some price resistance
at $24.60 but the current trend looks strong enough to tackle it.




---

Kopin Corp - KOPN - close: 16.27 change: +1.17

WHAT TO WATCH:  Shares of this flat-panel display technology
company have been consolidating near the $15.00 area.  After
a quick retest of support at $13.50 on Wednesday last week
shares coiled tightly near $15 heading into the weekend.  Now
the stock has surged higher only to close under heavy resistance
at $16.80.  KOPN tried three times to get through this level
near the first of August and failed.  Bears will be trying to
short the stock under 16.80 will bulls will be looking to buy
the stock on a breakout.  It could be worth watching.




---

Eastman Chemical Co. - EMN - close: 39.51 change: +1.11

WHAT TO WATCH:  After months of wasting away in a slow, painful
downtrend from $55 to $37.50 shares of EMN fell drastically
during the post- 9-11 market sell-off.  Since then EMN has been
trying to make a comeback and has actually broken out of the
long-term downtrend.  Unfortunately for the bulls the $40 level
could be tough support.  Unfortunately for the bears the stock
recently broke through tough resistance between $38 and $39.
The move from here could be forecasting direction for the next
couple of weeks.  Another factor to consider is the Dow's 
approach to overhead resistance between 10K and 10.2K.  Any 
strong selling in the DJIA could weigh heavily on EMN.






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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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Copyright  2001  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.



PremierInvestor.net Newsletter                  Monday 11-19-2001
                                                   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/8542_2.asp
=================================================================

In section two:

Net Bulls
  New Bullish Stop Adjustments:  CIEN, GMST

Stock Bottom/Active Trader
  Closed Bearish Plays:          BRL

High Risk/High Reward
  Closed Bearish Plays:          WBSN


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

CIEN - close: 21.16 change: +1.74 stop: 20.74 *new*

We knew that as soon as shares traded over the $20 level there
would be a surge higher.  We're going to try and protect about
10% of its current gains from our picked price of $18.77 with
the new stop.  If shares trade to $21.95 first we'll close the
play at our target.

---

GMST - close: 27.33 change: +1.79 stop: 24.99 *new*

Shares of GMST produced a 7% surge on Monday but they are quickly
approaching the Thursday high of $27.75.  We're going to raise
our stop from $23.99 to $24.99 in an effort to reduce our risk.



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

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

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

Barr Labs Inc - BRL - close: 68.41 change: +3.22 stop: 66.68 

A very broad rally across multiple sectors, including the drug 
sector, helped power shares of BRL above resistance at $66.  The 
stock opened near 66.50 then pulled back towards the $65 level 
before taking off with the rest of the market in an end of day 
rally.  The newsletter's bearish strategy has been stopped out at 
the breakeven point of $66.68.  We should have taken our own 
advice and closed the play on any dip towards $60, which occurred 
a few days ago.

Picked on November 8th at $66.68
Gain since picked:         +0.00
Earnings Date              10/23 (confirmed)







=================================================================
High Risk / High Reward (HR) section
==================================================================

===============
HR Closed Plays
===============

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

Websense, Inc - WBSN - close: 27.15 change: +1.75 stop: 27.16 

We hate it when that happens.  Our 4.8% gain in WBSN evaporated 
Monday afternoon as tech stocks lead the market higher.  We knew 
the key level to watch was $25 and the bulls were not willing to 
let go with several sectors breaking through key levels of 
hitting new relative highs.  The $27.50 level should still be 
resistance for WBSN and this could be a short-term oversold 
bounce (after the last three down days in a row).  The stock 
still looks very overbought and we are not willing to chase it 
for a bullish trade.  We were stopped out of the play this 
afternoon for a 47-cent loss.

Picked on November 14th at $26.69 
Gain since picked:          -0.47
Earnings Date               10/23 (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 

CI      Cigna Corp                 88.17     +2.32
MBI     Mbia Inc                   49.17     +0.79
ABK     Ambac Financial Group      53.71     +1.35
RBK     Reebok Intl. Ltd           24.31     +1.03
SFP     Salton Inc                 15.70     +0.85

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

TRLY    Terra Networks              8.99     +1.03
PER     Perot Systems Corp         18.30     +1.30
COGN    Cognos Inc                 19.30     +1.35
RMBS    Rambus Inc                 10.74     +1.18
UAL     Ual Corp                   16.72     +2.48

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

PHA     Pharmacia Corp             45.20     +3.85
LOW     Lowe's Companies Inc       43.10     +2.75
DCX     Daimlerchrysler            42.14     +2.19
HIT     Hitachi Ltd                78.30     +2.92
USAI    Usa Networks Inc           22.06     +1.17
 

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

AZN     Astrazeneca Plc            45.25     -1.10
TXU     Txu Corp                   45.59     -1.81
SYK     Stryker Corp               53.23     -1.39
STJ     Saint Jude Medical Inc     68.24     -2.62
BJ      BJ's Wholesale Club Inc    43.70     -3.82

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

NVDA    NVIDIA Corp                51.34     -1.15
HRB     H&R Block Inc              37.28     -0.74
LRCX    Lam Research Corp          22.20     -0.36
CHBS    Christopher & Banks Corp   35.62     -0.47



=================================================================
To stop receiving this PremierInvestor.net Newsletter,
send email to Contact Support
=================================================================
DISCLAIMER
=================================================================

This newsletter is a publication dedicated to the education
of stock traders. The newsletter is an information service
only. The information provided herein is not to be construed
as an offer to buy or sell securities of any kind. The
newsletter picks are not to be considered a recommendation
of any stock but an information resource to aid the investor
in making an informed decision regarding trading in stocks. It
is possible at this or some subsequent date, the editors and
staff of PremierInvestor.net may own, buy or sell securities
presented. All investors should consult a qualified professional
before trading in any security. The information provided has
been obtained from sources deemed reliable but is not
guaranteed as to accuracy or completeness. PremierInvestor.net
staff makes every effort to provide timely information to its
subscribers but cannot guarantee specific delivery times due to
factors beyond our control.

Please read our disclaimer at:
http://www.optioninvestor.com/page/oin/aboutus/disclaimer.html

*****************************************************************
ADVERTISING INFORMATION

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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.




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.

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