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Daily Newsletter, Tuesday, 11/20/2001

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PremierInvestor.net Newsletter                Tuesday 11-20-2001
                                                  section 1 of 2
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In section one:

Market Wrap: Internets and Semiconductor lead tech lower 
Market Sentiment: Getting ready for the holidays
Play-of-the-Day:  Entry Point, Entry Point

-----------------------------------------------------------------
U.S. Market Numbers
-----------------------------------------------------------------
MARKET WRAP  (view in courier font for table alignment)
-----------------------------------------------------------------
       11-20-2001           High     Low    Volume Advance/Decline
DJIA     9901.38 - 75.08  9976.73  9893.49  1.3 bln   1451/1678
NASDAQ   1880.51 - 53.91  1930.21  1877.79  1.9 bln   1363/2246
S&P 100   590.03 -  5.04   595.65   589.61   Totals   2814/3924
S&P 500  1142.66 -  8.40  1152.45  1142.17
RUS 2000  453.90 -  3.81   458.82   453.76
DJ TRANS 2489.44 - 43.08  2530.67  2484.33
VIX        25.93 +  1.13    26.55    24.97
VXN        51.41 +  1.14    51.69    50.05
TRIN        1.51
Put/Call Ratio       .60
-----------------------------------------------------------------

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

Internets and Semiconductor lead tech lower

Internet stocks as depicted by the CBOE Internet Index (INX.X) 
and semiconductor stocks (SOX.X) fell, in what looks to be a good 
old fashioned round of profit taking.  Perhaps the recent action 
in the PremierInvestor.net play list has subscribers trading some 
of the recent action in these two sectors and the downside might 
not be over yet.

Here's a quick look at the sector components that make up these 
two indexes.  We've sorted the components my their weighting to 
help give subscribers a good feel for just how the daily action 
of each stock can actually impact the outer appearance of the 
sector index itself.  

CBOE Internet Index Components - sorted by weighting




The CBOE Internet Index (INX.X) traded down 10.7 points today, or 
7.47% to close at $132.73.  As you can see, there weren't any 
stocks in the index that showed green today.  Recently, 
PremierInvestor.net had profiled index component AOL Time Warner 
(NYSE:AOL) as bullish, but subscribers were stopped out with a 
4.98% gain last week at $36.90 as the stock traded just shy of 
our near-term bullish target.  AOL is the 5th heaviest weighted 
stock in the index and today's decline of 2.06% wasn't that bad 
considering some of the other types of declines found in the 
group.  I like to trade some of the stocks in the group from time 
to time, and use the index action to help gain a perspective of 
just how aggressive the market is feeling.  Today's action gives 
hint that some aggressive bulls are pulling in the horns as many 
of the stocks in the group have had some nice runs.

eBay Chart -




Share of eBay (NASDAQ:EBAY) look to be having trouble near the 
$62 level.  This was a level we talked about in early October as 
potential resistance, when the stock was headed higher at the $54 
level.  It still looks like there are some sellers around and has 
this stock high on my list of bearish candidates in the Internet 
space.  Near-term target for bearish traders is the $54 level, 
which correlates nicely with retracement, 50-day and 200-day 
moving averages.  Would follow with a stop just above today's 
open of $61.60.

eBay RS vs. Internet Index - 




The recent number of relative strength "sell signals" on the EBAY 
chart vs. the INX.X gives hint that the stock may be seeing some 
liquidation by bulls and not just profit taking.  In May (red 5) 
thru early October (red A) shares of EBAY outperformed the INX.X 
considerably and showed good relative strength.  Now we're 
starting to see some divergence of that trend as the INX.X has 
had a nice rally, but EBAY seems to have lagged that move, making 
the stock a good candidate for bearish traders.

Semiconductor Index Components - sorted by weighting




Also weak today were the semiconductor stocks.  Recently we've 
been alerting subscribers that the bullish percent charts for 
this sector as followed by Dorsey/Wright and Associates reached 
the "overbought" levels above 70% bullish.  The bullish percent 
readings monitor a much broader base of semiconductor related 
stock that the 16 components listed above.  However, 
understanding how the index is weighted gives subscribers a good 
understanding of the internals of the Philadelphia Semiconductor 
Index (SOX.X).  Much like the Internet Index (INX.X) there 
weren't any stocks in the index showing green by session's end.

We profiled shares of Intel (NASDAQ:INTC), the #8 heaviest 
weighted stock in the index as bearish in the "High Risk / High 
Reward" section of the site.  It was our first "toe dip" for a 
short in the sector for some time and we wanted to try and avoid 
a stock that might be overly volatile.  While the bullish percent 
charts hint that the group is due for a pullback, some of the 
smaller stocks are quite volatile.  By playing bearish in shares 
of Intel (NASDAQ:INTC) we may not feel like we're going to get 
rich overnight, but chances of getting crushed by any continued 
bull run in the sector were less likely.  

Today's action in the SOX.X is interesting in that the greater 
percentage of the declines were found in the more heavily 
weighted index components.  For the most part, the losses were 
relatively evenly distributed.  This gives hint that the bulk of 
today's selling was orderly and hints of profit taking.

Shares of KLA-Tencor (NASDAQ:KLAC) fell a greater percentage than 
the other components.  KLAC had risen approximately 66% from its 
early October lows ($29 to $50), while shares of Intel 
(NASDAQ:INTC) have risen 55% from its October lows near $20 ($20-
$31).  Today's action makes sense in the scope of profit taking.  
A bearish trader short shares of Intel (INTC) near $30 doesn't 
need a complete revisit of the lows to make some nice percentage 
gains.  By shorting shares of Intel (INTC) we are also better 
able to monitor both ends of the inchworm as it relates to sector 
movement.  Today the Semiconductor Index (SOX.X) "inchworm" moved 
lower.  

Semiconductor earnings

After the close of trading, fellow Semiconductor Index (SOX.X) 
component Analog Devices (NYSE:ADI) reported fourth-quarter pro-
forma earnings of $52.8 million, or 14 cents a share, compared to 
year-ago earnings of $206.5 million or 54 cents a share.  Today's 
results beat analyst's estimates of 12 cents a share.  Revenues 
for the latest quarter fell 47% from year-ago levels at $423.3 
million.  While shares of ADI finished the regular session at 
$41.91, after hours trading had the stock trading lower at the 
$40 level.  The chipmaker said it expected first-quarter 2002 
revenue to decline about 5% to $400 million, with earnings per 
share falling to the 11-cent per share level.  Sales aren't 
expected to grow until the second quarter of next year, the 
company said.

Tomorrow's outlook

Tonight's earnings (or lack thereof) and quarterly guidance from 
Analog Devices (NYSE:ADI) should have some pressure on 
semiconductor stocks at the open of trading.  This will most 
likely put some pressure on other technology stocks as they tend 
to have a "group think" mentality from time to time.

The recent bullish percent reading on the NASDAQ-100 at 78% has 
been climbing and is now very close to the levels found in late 
April and early May of this year.  The tech part of the market is 
ripe for a good round of profit taking and ADI's comments about 
improvements not showing up for about 3-6 months will most likely 
give short-term traders a reason to take profits if they haven't 
begun doing so already.

However, the market seems to have a history of trading relatively 
bullish the day after Thanksgiving and the following Monday.  

I'm a big believer of trying to lock in some profits relatively 
early on at least a partial position in some bearish plays in the 
technology space.  I like to do this to get a feel for things 
going forward.  I also need to understand that we continue to see 
some fairly hefty selling in the longer-end of the Treasury bond 
market and there continues to be some cash raised there.  If that 
cash being raised is to buy some technology names on a pullback, 
I don't want to necessarily be thinking "retest of the lows" and 
let a potential 10% gain in a bearish trade slip away.

Bull's might want to think, "boring"

Today I noticed shares of Whole Foods Market (NASDAQ:WFMI) jumped 
6.16% and broke to yet another 52-week high.  The stock is on a 
run and now it looks like it is starting to pull others in the 
group higher.  

I'd look to play this trend near-term.  Perhaps it makes sense 
that we're going to see some tech profits role to the more 
"predictable" earnings near-term, while tech digests/gives back 
some gains.  One stock that I'd have my eye on for a bullish 
trade is shares of Kroger (NYSE:KR) here at $24.99.  The stock 
has been trading either side of its flat 200-day MA and pressure 
looks to be building in this one.  With the recent action in 
fellow grocer Whole Foods Market (WFMI) I've got a "buy side" 
bias toward the group.

Jeff Bailey
Senior Market Technician


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

Getting ready for the holidays
by Russ Moore

Getting ready for the holidays. Market participants seemed more 
interested in squaring their positions than pushing the markets 
in a particular direction. Getting “flat” ahead of what will be a 
five-day weekend for many, was the key catalyst behind today’s 
action, resulting in a choppy session and a negative close across 
the board.

The blue chip DOW slid -0.8 percent while the NASDAQ dropped -2.8 
percent and the NDX -4.2 percent. Volume prognosticators were 
fooled once again as 1.31 billion shares traded hands on the big 
board while 1.96 billion shares were exchanged on the tech index. 
Market breadth was negative with losers outpacing winners by a 
17/15 margin on the NYSE and a 22/14 count on the NASDAQ.

Winning sectors included drug, gold, healthcare, oil, oil 
service, utility and natural gas. Tech sectors were painted red 
with chip, networker, software and Internet being the weakest 
areas.

September trade data came in with an $18.69 billion deficit, much 
narrower than the $24.2 billion expected by economists. 

The October leading indicators showed an increase of +0.3 percent 
versus expectations of unchanged.

Let’s not read much into today’s action, after all, we knew the 
markets were due for some profit taking and with the holidays on 
our doorstep this was a perfect time to go flat and enjoy a worry 
free weekend.


VIX 
Tuesday 11/20 close: 25.93


VXN
Tuesday 11/20 close: 51.41


30-yr Bonds
Tuesday 11/20 close: 5.31


Total Put/Call Ratio: .60


Equity Option Put/Call Ratio: .47


Index Option Put/Call Ratio:  1.78


===

NASDAQ 100 Index (NDX/QQQ)
52-Week High: 103.51
52-Week Low:   28.19
Current close: 38.62

Volume/Open Interest
Maximum calls: 40/145,543
Maximum puts : 40/ 79,037

Moving Averages
 10 DMA 38
 20 DMA 37
 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: 590.03

Volume/Open Interest
Maximum calls: 580/3,919
Maximum puts : 500/6,323
Moving Averages
 10 DMA  584
 20 DMA  572
 50 DMA  553
200 DMA  610

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: 1142.66

Volume / Open Interest
Maximum calls: 1200/32,177
Maximum puts : 1050/43,244

Moving Averages
 10 DMA 1132
 20 DMA 1110
 50 DMA 1077
200 DMA 1186

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:  9,901.38

Volume / Open Interest
Maximum Calls: 98/25,243
Maximum Puts   90/50,685

Moving Averages:
 10 DMA  9,749
 20 DMA  9,546
 50 DMA  9,256
200 DMA 10,194

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: 584.10

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

Moving Averages
 10 DMA 578
 20 DMA 568
 50 DMA 509
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: 494.12

Volume / Open Interest
Maximum Calls: 640/366
Maximum Puts:  600/609

Moving Averages
 10 DMA 521
 20 DMA 497
 50 DMA 453
200 DMA 567

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: 395.51

Volume / Open Interest
Maximum Calls: 420/406
Maximum Puts:  360/320

Moving Averages
 10 DMA 392
 20 DMA 392
 50 DMA 388
200 DMA 392

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)
=========================

POTENTIAL NEW BULLISH PLAYS & STRATEGY
======================================

We are going to try and use any market pull back and
profit taking to our advantage.  Considering that the
November/December season is one of the most historically
bullish times of the year for Wall Street then we're
going to look for dips as potential entry points.  The
strategy here is to watch for pull backs in these stock
to our specified target entry ranges.  We've added 
suggested stops even though we're looking bounces in
these areas.  This means we would consider plays only 
when shares begin to tick back up.  If we do get a bounce
in our range we'll take the worst or highest end as our
entry.  If the stock bounces in our range and then rolls
over and trades through our stop then we'll take the
bottom end of our range as our entry to calculate any 
losses.  Look for more in-depth write-ups on Wednesday
or Friday for those stocks that hit our triggers.

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


Nokia Corp - NOK - close: $23.42 change: -1.20 stop: -see update-

Company Description:
Nokia is the world leader in mobile communications. Backed by its 
experience, innovation, user-friendliness and secure solutions, 
the company has become the leading supplier of mobile phones and 
a leading supplier of mobile, fixed and IP networks. By adding 
mobility to the Internet Nokia creates new opportunities for 
companies and further enriches the daily lives of people. 
(source: company press release)

Why We Like It:
Currently poised at its 200-dma, we like NOK's new bullish trend 
and the stock has not violated its 15-dma in weeks.  We are 
looking for a pull back to $23.00 to $22.50 as our range.  If we 
do get the bounce we're looking for we'll start the play with a 
stop at $22.40.  Remember to look for the bounce to begin.  Look 
for support near $22.80 to $22.75.

Picked on November  ?th at $xx.xx 
Gain since picked:          +0.00
Earnings Date               10/19 (confirmed)




---

PMC - Sierra - PMCS - close: 20.83 change: -2.38 stop: -see update-

Company Description:
PMC-Sierra is accelerating the broadband revolution. PMC-Sierra 
is a leading provider of high speed broadband communications 
semiconductors and MIPS-based processors for Access, Metro 
Transport and Optical Transport network equipment that make up 
the backbone of the Internet. The company offers worldwide 
technical and sales support, including a network of offices 
throughout North America, Europe and Asia. The company's quality 
system is registered with the Quality Management Institute to the 
ISO 9001 standard. As co-founder of the SATURN® Development 
Group, PMC-Sierra works with over 30 other member companies to 
define and develop interoperable, standard-compliant solutions 
for high speed networking applications. (source: company press 
release)

Why We Like It:
The SOX.X has been drifting lower for five days in a row with 
Tuesday's drop of over 5% a strong indication that traders are 
more than willing to take profits off the table.  It looks like 
there will be some more profit taking for the sector after ADI's 
negative news this evening.  We will be looking for a potential 
bullish entry point if PMCS can bounce between $19.50 and $19.00.  
If we do get the bounce we'll start the play with a stop at 
$18.90.  More conservative traders may want to look for the 
bounce and then wait for shares to trade back above the $20 level 
which could prove to be short-term round number resistance.

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




---

Symantec Corp - SYMC - close: 62.28 change: -1.76 stop: -see update-

Company Description:
Symantec, the world leader in Internet security technology, 
provides a broad range of content and network security software 
and appliance solutions to individuals, enterprises and service 
providers. The company is a leading provider of client, gateway 
and server security solutions for virus protection, firewall and 
virtual private network, vulnerability management, intrusion 
detection, Internet content and e-mail filtering, remote 
management technologies and security services to enterprises and 
service providers around the world. Symantec's Norton brand of 
consumer security products is a leader in worldwide retail sales 
and industry awards. Headquartered in Cupertino, Calif., Symantec 
has worldwide operations in 37 countries. (source: company press 
release)

Why We Like It:
Shares of SYMC had been consolidating its huge October gains near 
the $60 level.  However, Monday's market rally higher helped 
spark the breakout shares of SYMC were looking for and the stock 
traded near $65.  We think the GSO.X software index may be one of 
the sectors to lead the markets higher over the next few weeks so 
we'll be looking for entry points in SYMC as one of the stronger 
issues in that index.  Our entry range for SYMC will be a bounce 
between $60.50 and $59.50 with expectations for the stock to 
trade near $60.00.  If we do get triggered we'll start the play 
with a stop at $59.40.  Keep an eye on the GSO.X.  We need to see 
the index hold the 160 level.

Picked on November  ?th at $xx.xx 
Gain since picked:          +0.00
Earnings Date               10/17 (confirmed)




---

VERITAS Software - VRTS - cls: 36.81 chg: -4.34 stop: -see update-

Company Description:
VERITAS Software Corporation provides essential storage software 
solutions that enable customers to protect and access their 
business-critical data. The company, which was added to the 
Nasdaq-100 Index in January 1999 and to the S&P 500 Index in 
March 2000, has more than 5,500 employees in 103 offices 
worldwide, and is ranked among the world's top 10 software 
companies based on revenue and market capitalization. (source: 
company press release)

Why We Like It:
Using the same strategy as SYMC above, if the GSO.X can pull back 
to the 160 level then we might get an opportunity to buy VRTS at 
the bottom of its ascending trading channel.  VRTS is more 
volatile than SYMC but then the reward is probably greater as 
well.  We will be looking for a bounce in the $34.50 to $33.50 
area.  If we get triggered we'll initiate the play with a stop at 
$33.40.  Keep an eye on the GSO.X.

Picked on November  ?th at $xx.xx 
Gain since picked:          +0.00
Earnings Date               10/16 (confirmed)







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PremierInvestor.net Newsletter                 Tuesday 11-20-2001
                                                   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/8734_2.asp
=================================================================

In section two:

Net Bulls
  New Bullish Plays:   - please see the POD in section one -
  Bullish Play Updates: GMST, JNPR, LGTO
  Bearish Play Updates: WWCA
  Closed Bullish Plays: CIEN

Stock Bottom / Active Trader
  Bullish Play Updates: GE, IKN

High Risk / High Reward
  New Bearish Plays:    EBAY
  Bullish Play Updates: SBAC
  Bearish Play Updates: INTC

Split Trader
   - none -

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 New Play
===========

- please see the Play of the Day in section one -


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

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

Gemstar-TV Guide - GMST - close: 26.29 change: -1.04 stop: 24.99

The enthusiasm from Monday tried to carry the markets early this 
morning but profit taking quickly overwhelmed any buyers and Wall 
Street saw a broad market pull back.  GMST managed a bounce 
midday near $26 but another wave of selling pushed it back down 
to $25.50 near its 5-dma.  The good news was the nice end of day 
surge back over $26.  If the markets continue to dip tomorrow we 
would be looking for potential new entry points in GMST.  $25.00 
and $25.50 may be the levels to watch for another bounce.  Any 
bounce near $25.00 would be a low risk opportunity considering 
our stop at 24.99.  

Picked on November 16th at $25.54 
Gain since picked:          +0.75
Earnings Date               11/14 (confirmed)




---

Juniper Networks - JNPR - close: 25.02 change: -1.55 stop: 24.49

JNPR is yet another casualty to the tech sector pull back on 
Tuesday.  The networking sector produced broad declines with the 
index dropping 5.5%.  JNPR fell back 5.8% after Monday's positive 
jump up to $26.57.  Even though shares of JNPR have dipped below 
its 5-dma (short-term indicator) and fell to 24.92, we are 
encouraged that the stock closed at $25.  If JNPR can hold the 
$25.00 level it may be setting up for a new potential entry 
point.  We would not be recommending any new positions until we 
start to see a bounce in the Nasdaq and the NWX.X.  It wouldn't 
take much for the stock to fall to $24.00.  Yet if it did we'd 
probably keep an eye on it for a bounce and entry point there as 
well.  However, since this would stop us out at $24.49 we'll have 
to re-evaluate the overall market atmosphere if this develops.  

Picked on November 16th at $25.60 
Gain since picked:          -0.58
Earnings Date               10/11 (confirmed)




---

Legato Systems - LGTO - close: 10.77 change: -0.08 stop: 9.98 

Go LGTO!  While the rest of the market was trying to force its 
way higher during the morning hours, shares of LGTO pulled back 
slightly to find support near $10.60.  Then when the rest of the 
tech sector started to sell-off LGTO began to trade higher and 
cleared the $11 mark.  For most of the afternoon LGTO remained 
there above $11 but last minute profit taking brought the stock 
back under this pivotal level.  Shares remain above its 5-dma (a 
very short-term indicator) and the move higher appeared to be 
fueled on stronger than average volume.  Keep an eye on the stock 
as the 10.60 to 10.50 level may be strong enough support to 
encourage new entries.  However, we would hesitate to commit new 
capital to tech stocks if the Nasdaq continues to slide on 
Wednesday.  

Picked on November 8th at $10.47 
Gain since picked:         +0.30
Earnings Date              10/23 (confirmed)





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

Western Wireless - WWCA - cls: 26.15 chg: +0.10 stop: 27.01 

Here we go again.  Last week we suffered through a horizontal 
trading channel as the stock consolidated its recent losses.  
Then on Friday it seemed the bearish trend would continue.  The 
last two days have only show the stock to be consolidating 
sideways again.  The only good news for the bears is the apparent 
selling pressure near $26.20.  In addition to this new level of 
resistance WWCA should see overhead obstacles at $26.25 and 
$26.50.  Confirm stock direction before initiating new positions 
and play with stops!

Picked on November 9th at $26.40 
Gain since picked:         +0.25
Earnings Date              11/07 (confirmed)





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

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

CIENA Corp. - CIEN - close: 19.08 change: -2.08 stop: 20.74

We were THIS close to reaching our target of $21.95 for this 
bullish CIEN play.  The high today at 21.71 was hit early this 
morning before 10:30 AM ET but this last effort to trade higher 
quickly withered.  Shares of CIEN fell viciously from the high 
and bounced once near $20 before completing its descent under its 
5-dma.  CIEN's 9.8% loss was one of many such declines in the 
networking sector.  The AMEX Networking index fell 5.5% while 
notables JDSU slipped 9.3%, GLW dropped 6.5% and TLAB dropped 
over 10%.  At the high today at 21.74 our CIEN play was up over 
15% from our picked price of $18.77.  Fortunately we raised our 
stop yesterday in Monday's newsletter to $20.74.  This allowed us 
to capture almost 2 points and more than a 10% move in the stock.  
It is unclear how far the various tech sectors may slide if the 
NASDAQ continues to fall tomorrow.  Usually the day before and 
after Thanksgiving are "up" days.  We might actually look for a 
bounce in shares of CIEN near $18.00 which could be a possible 
entry point for more aggressive traders.  We'd also be interested 
if CIEN closes back over $20.  

Picked on November 14th at $18.77 
Gain since picked:          +1.97
Earnings Date               12/13 (not confirmed)






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

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

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

General Electric - GE - close: 41.10 change: -0.15 stop: 39.90 

Believe it or not shares of GE don't look that bad.  The DJIA may 
have sold off today but GE actually broke out above resistance at 
$41.60 late afternoon before pulling back at the close.  In the 
news today was word on NBC's planned acquisition of Spanish-
language network Telemundo Communications Group.  GE's NBC 
television operations announced last month their plan to purchase 
the company and U.S. antitrust regulators told reporters they 
would not oppose the deal.  There are more than 35 million 
Spanish-speaking people in the U.S., or about 13% of the 
population.  The recent trading action shows GE coiling higher 
with higher lows as it attempts to breakout over the $41.60 
level.

Picked on November 8th at $40.10
Gain since picked:         +1.00
Earnings Date              10/24 (confirmed)




---

Ikon Office Solutions - IKN - cls: 9.75 chg: -0.25 stop: 9.70 *new*

Uh oh, part two.  As of Friday we were concerned that shares of 
IKN were acting too weak to stay on the bullish play list.  
Monday's performance started to cement this perspective.  IKN 
merely traded sideways to close at $10.00 while the rest of the 
market rallied higher.  The broad market profit taking today only 
confirmed our new suspicions.  The stock has closed below its 15-
dma while its MACD has produced a bearish crossover.  I planned 
to drop it today but Mr. Bailey has convinced me to give it one 
more chance with a very tight stop.  The new game plan on IKN is 
to place a stop at $9.70.  If shares can reverse course near the 
open tomorrow we'll be fine.  Otherwise we'll be out at 9.70, as 
long as shares don't gap down at the open, for a 50-cent loss.

Picked on November 12th at $10.20
Gain since picked:          -0.45
Earnings Date               10/25 (confirmed)






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

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

  -----------------
  New Bearish Plays
  -----------------

eBay Inc - EBAY - close: 59.11 change: -3.00 stop: 61.60

Company Description
eBay, Inc. is the World's Online Marketplace. Founded in 1995, 
eBay created a powerful platform for the sale of goods and 
services by a passionate community of individuals and businesses. 
On any given day, there are millions of items across thousands of 
categories for sale on eBay, as well as on Half.com, eBay's site 
dedicated to fixed price trading. eBay enables trade on a local, 
national and international basis with customized sites in markets 
around the world. (source: company press release)

Why We Like It:
We are looking for a quick short-term pull back in shares of EBAY 
now that it has broken through support at $60.00 and $59.50.  If 
you read the wrap this evening you already know that EBAY has 
been lagging the Internet index (INX.X) and is currently on a 
relative strength sell signal.  It would appear that sellers have 
a lid on the stock at $62.50 and the recent highs form a double 
top at that level.  The strategy is based on a potential follow 
through in today's broad market profit taking.  The Internet 
sector has always been susceptible to momentum traders as bears 
have made and lost fortunes shorting them.  Our first target area 
is $55, which is just above the 50-dma and 200-dma (53.99 and 
53.46, repectively).  However, if shares close below the 200-dma 
EBAY could fall to $52 to $50.  We're going to start the play 
with a stop at 61.60.  We strongly suggest that short traders 
confirm stock direction.  If there is a small bounce, look for a 
failed rally at $60.  This strategy is not for everyone.  Use 
caution.

Picked on November 20th at $59.11 
Gain since picked:          +0.00
Earnings Date               10/18 (confirmed)






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

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

SBA Communications - SBAC - close: 11.13 change: -0.47 stop: 9.65

Our new bullish addition to the high risk/high reward section is 
holding up well.  Monday saw an 8.8% surge higher and the stock 
cleared to major resistance levels at 11.29 and 11.50.  Shares of 
SBAC attempted to hold on to most of its gains on Tuesday but the 
negative performances in the broader markets was just too much 
and the stock began to fall back near the close.  Fortunately 
SBAC managed to find some support north of $11.00.  The question 
is will this level hold up tomorrow if the Nasdaq adds a second 
day of profit taking?  If the stock does pull back we would look 
for bounces at $10.50 and $10.25 as potential entry points to go 
long.  Wait for the bounce to begin!

Picked on November 16th at $10.66 
Gain since picked:          +0.47
Earnings Date               11/13 (confirmed)





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

Intel Corp - INTC - close: 29.95 change: -1.04 stop: 31.31 *new*

The profit taking in the semiconductor sector picked up speed 
today.  The SOX.X topped out five days ago and has consistently 
been drifting lower that is until today.  The broad market pull 
back on Tuesday sent the SOX falling 5.8%.  This 30-point drop 
put it under the 500 level at 493 but the index remains above the 
previous relative low on Nov. 12th at 488.  In sympathy with the 
index shares of Intel also fell on Tuesday losing 3.35%.  The 
stock remains above its 10-dma but bears should be encouraged by 
its close under the $30 level.  At this point we're considering a 
new higher target to exit the play.  Previously we were looking 
for INTC to drop to $27.70 but $28.00 is looking more feasible.  
This would be a 9% move from the picked price.  To reduce our 
risk we're going to lower the stop to $31.31, which is a cent 
above Monday's high.  Confirm stock direction before considering 
new positions.  Remember, this entire play is based on a short-
term pull back in the chip sector.  This might culminate in a 
follow through dip tomorrow.  Adjust your trade accordingly but 
watch out for any quick reversals as the trend in the market and 
INTC is still bullish.

Picked on November 15th at $30.78 
Gain since picked:          +0.83
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 

UCL     Unocal Corp                33.85     +1.84
APA     Apache Corp                47.33     +2.15
PMI     Pmi Group Inc              61.40     +0.83
TSCO    Tractor Supply Co          28.85     +2.00
DOM     Dominion Resources         20.28     +0.75

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

HRC     Healthsouth Corp           14.19     +1.50
RCL     Royal Caribbean Cruises    16.10     +1.09
RI      Ruby Tuesday Inc           19.68     +1.33
NTCT    Netscout Systems Inc        8.40     +1.05
INVN    Invision Technologies      19.56     +1.14
OSIS    Osi Systems Inc            16.90     +1.97

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

UNH     Unitedhealth Group Inc     70.74     +3.34
MON     Monsanto Co                33.00     +1.26
WFMI    Whole Foods Market Inc     43.05     +2.50
VAL     Valspar Corp               39.48     +1.54
TBL     Timberland Co              37.84     +1.28
 

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

VOD     Vodaphone Group            25.14     -1.56
FTE     France Telecom             39.95     -4.65
DE      Deere & Co                 38.75     -2.82
TOY     Toys R Us Inc              22.01     -1.61
NDE     Indymac Bancorp Inc        21.62     -1.06

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

KO      Coca-Cola Co               49.00     -0.47
KLAC    Kla-Tencor Corp            45.84     -3.90
JBL     Jabil Circuit Inc          24.96     -1.82




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