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Daily Newsletter, Tuesday, 12/04/2001

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PremierInvestor.net Newsletter                Tuesday 12-04-2001
                                                  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: Stocks post solid gains as big NASDAQ trades strong
Market Sentiment: Techs claim victory
Play-of-the-Day:  Yet Another One

-----------------------------------------------------------------
U.S. Market Numbers
-----------------------------------------------------------------
MARKET WRAP  (view in courier font for table alignment)
-----------------------------------------------------------------
      12-04-2001          High     Low     Volume Advance/Decline
DJIA     9893.84 +129.88  9893.84  9743.05 1.31 bln   2185/ 928
NASDAQ   1963.10 + 58.20  1963.22  1913.92 1.87 bln   2282/1324
S&P 100   585.63 +  6.97   585.63   577.90   Totals   4467/2252
S&P 500  1144.80 + 14.90  1144.80  1128.86
RUS 2000  467.84 + 10.81   467.85   457.03
DJ TRANS 2534.85 + 51.79  2534.90  2478.78
VIX        25.33 -  0.67    26.92    24.78
VXN        48.09 -  1.65    50.55    47.66
TRIN        0.65
Put/Call    0.54
-----------------------------------------------------------------

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

Stocks post solid gains as big NASDAQ trades strong

Stocks managed to show solid gains today with technology shares 
showing impressive results.  The NASDAQ-100 (NDX.X) closed at a 
2-month high as many of the larger capitalized technology stocks 
continue to show strength above their 200-day moving averages.  
The continued bullishness for many of the larger capped stocks is 
sign for many investors that a longer-term bull is beginning to 
grow horns and this looks to have bears eager to move to the 
sidelines with each pullback.

NASDAQ-100 Index (NDX.X) Chart -




The last time the NASDAQ-100 (NDX.X) closed above the 1,634 level 
was on August 13th, when the NASDAQ-100 finished the trading 
session at 1,653.27.  The falling 200-day moving average will be 
closely watched as it is the longer-term moving average that many 
technicians monitor for a longer-term feel on "big tech" 
performance.

And "big tech" has been doing well.  When we look at the NASDAQ-
100 trust (AMEX:QQQ) and some of the larger weighted components 
there, we see that Microsoft (NASDAQ:MSFT) accounts for an 11.97% 
weighting.  Intel (NASDAQ:INTC) is weighted 6.08%, Qualcomm 
(NASDAQ:QCOM) is weighted 5.51% and Cisco (NASDAQ:CSCO) is 
weighted 4.02% in the trust.  Right now, these are the "4 
horsemen" and after today's action, all four are trading above 
their 200-day MA's.  Qualcomm (NASDAQ:QCOM) got back above its 
200-day MA just today.

Qualcomm (QCOM) Chart - 




Retracement from $38.31 to $70.99 matches retracement almost 
identically as that found in the NASDAQ-100 chart.  It's the 
current trading right near the 200-day moving average at $57.49 
that has my interest.  With Microsoft (MSFT), Intel (INTC) and 
Cisco (CSCO) trading above their 200-day MA's for more than 2-
weeks, bears in Qualcomm (QCOM) should have some tight stops set 
just above the $60 level as risk from retracement becomes $64.74.  
A trader in Qualcomm will also want to monitor the NASDAQ-100 
also to get a feel for any index trading above its 200-day moving 
average.

Will the fuse fizzle?

Equity bears have yet to see equity bulls throw in the towel and 
I think the action in the bond market helps keep tension high.  
Is it any wonder that we're seeing 100 point swings in the Dow 
Industrials (INDU) and good volatility in the NASDAQ?  Was 
today's comeback in stocks another "look to the future" type of 
move in anticipation that bond market bears will begin selling 
the lower YIELDS and recent short-term gains found in that market 
as stocks hold tough?  Today's lower YIELD in the 10-year 
($TNX.X) came just above our key level of near-term YIELD 
support.

In recent commentary, I've been using a much "broader range" of 
retracement on the 10-year YIELD to get a "longer-term" 
perspective of the bond market's view by anchoring to the YIELD 
high found in January of 2000.  Our "support for YIELD" from 
retracement work came in at the 4.621% YIELD level.  Today's low 
YIELD on the 10-year was 4.624%.  But lets also try and use the 
same retracement range as that from above in the NASDAQ-100 
(NDX.X) and Qualcomm (QCOM), by anchoring to a recent relative 
high found on May 18th.  In both of those charts, we anchored to 
the May 21st close and then the recent lows to "define the 
range."  Let's do that now with the 10-year YIELD to get a 
different view and perhaps further insight as to "why" the 10-
year YIELD action at current levels could play a big role in 
tomorrow's trading, if not this week's trading.

10-year YIELD Chart -




Equity bears that are trading the scenario of "lower YIELD bad 
for stocks" are going to have to hold their breath overnight.  
While the YIELD did fall today in the 10-year, it did not break 
the retracement level of 4.621% identified from longer-term 
retracement and it didn't break "conventional retracement" above.  
In fact, today's low YIELD trade came at 4.624%, which is right 
on conventional retracement as those ranges used for the NASDAQ-
100 and Qualcomm.

In recent commentary, I've said that "bears aren't out of the 
wood yet" and the YIELD chart and current stock market action 
gives hint that that's the right attitude to have up until 
tonight.  Tomorrow morning, I'll be watching this bond's YIELD 
action closely.  If we see any hint of higher YIELD during the 
opening of trading there, then I will be thinking higher stock 
prices.

The 10-year YIELD has seen buying for six straight sessions, yet 
the NASDAQ-100 has gained 15-points (+0.9%), the NASDAQ Composite 
has gained 22 points (+1.13%), the S&P 500 has lost 13 points
(-1.13%) and the Dow Industrials has lost 89 points (-0.89%).

While last week I thought "something had to give" as it relates 
to stocks vs. bond YIELDS, that something should have been stock 
prices.  We've yet to see that happen, so it is only fair to be 
able to turn the tables on things.  Should we see a higher YIELD 
near the open of trading tomorrow morning we might see equity 
bears get squeezed and get a tradable rally for stocks.  


NASDAQ-100 Index rebalancing

The NASDAQ-100 Index (NDX.X) rebalancing is expected to be 
announced on December 17th.  Jefferies expects the following 14 
companies to be removed from the index.  XOXO, MFNX, MCLD, INKT, 
CMGI, BVSN, RNWK, ARBA, CNET, NOVL, COMS, PALM, PMTC, LVLT.  Some 
stocks Jefferies feels are candidates to replace the 
aforementioned are APOL, IMCL, CHTR, CDWC, SYMC, SEPR, ICOS, 
IVGN, ESRX, CEPH, CYTC, PDLI, IDTI, SNPS.  Traders may want to 
monitor the following for any suspicious volume spikes where bets 
are being taken by market makers with inventory positions.

Jeff Bailey
Senior Market Technician


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

Techs claim victory
Russ Moore

Techs claim victory. All major indices closed on their session 
highs, but it was the NASDAQ that had the bulls grinning, as the 
tech index managed to climb above its’ 200DMA.

The DOW finished with a gain of +1.3 percent while the NASDAQ 
added +3.1 percent and the NDX +4.2 percent. Volume was moderate 
with 1.29 billion shares moving on the NYSE and 1.88 billion 
shares trading on the NASDAQ. Winners trounced losers by a 22/9 
margin on the big board and 23/13 on the tech index.

Chip, Internet and networking sectors were the big tech winners 
while natural gas, financials and oil service sectors led the 
broader markets. Gold, drug, and healthcare sectors ended lower.

A UBS Warburg analyst suggesting that chip equipment orders will 
bottom in December helped spark today’s tech-led rally. In 
addition, Cisco systems said November orders were in line with 
expectations. 

Now that the NASDAQ has taken out the all-important 200DMA-
resistance level, tech bulls will be taking dead aim at the 2000 
mark. Other indices i.e. DOW and SPX, still have a ways to go 
before hitting their respective 200DMA’s, however, the tech rally 
may prove contagious and drive the number of “I don’t want to 
miss the train” investors to new heights, taking the broader 
markets along for the ride.



VIX 
Tuesday 12/04 close: 25.33


VXN
Tuesday 12/04 close: 48.09


30-yr Bonds
Tuesday 12/04 close: 5.25


Total Put/Call Ratio: .59


Equity Option Put/Call Ratio: .49


Index Option Put/Call Ratio:  1.56


===

NASDAQ 100 Index (NDX/QQQ)
52-Week High: 103.51
52-Week Low:   28.19
Current close: 40.83

Volume/Open Interest
Maximum calls: 40/136,499
Maximum puts : 40/109,754

Moving Averages
 10 DMA 39
 20 DMA 39
 50 DMA 35
200 DMA 41

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: 585.63

Volume/Open Interest
Maximum calls: 640/5,490
Maximum puts : 500/7,548
Moving Averages
 10 DMA  586
 20 DMA  585
 50 DMA  564
200 DMA  605

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: 1144.79

Volume / Open Interest
Maximum calls: 1150/42,787
Maximum puts : 1100/49,004

Moving Averages
 10 DMA 1141
 20 DMA 1136
 50 DMA 1096
200 DMA 1177

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:  9,893.84

Volume / Open Interest
Maximum Calls: 98/25,999
Maximum Puts   90/47,992

Moving Averages:
 10 DMA  9,860
 20 DMA  9,789
 50 DMA  9,412
200 DMA 10,146

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: 593.38

Volume / Open Interest
Maximum Calls: 620/  636
Maximum Puts:  540/1,160

Moving Averages
 10 DMA 597
 20 DMA 588
 50 DMA 534
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: 544.11

Volume / Open Interest
Maximum Calls: 520/ 754
Maximum Puts:  470/1272

Moving Averages
 10 DMA 519
 20 DMA 521
 50 DMA 467
200 DMA 561

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: 397.24

Volume / Open Interest
Maximum Calls: 420/406
Maximum Puts:  360/330

Moving Averages
 10 DMA 399
 20 DMA 395
 50 DMA 393
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, 11/30. 
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 
11/13/01     381,539   421,284   (39,745)    1.2%
11/20/01     369,784   415,822   (46,038)   13.6%
11/27/01     371,336   421,405   (50,069)    8.7%

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
11/13/01       136,047    87,645    48,402    (4.9%)
11/20/01       140,507    86,861    53,646     9.8%
11/27/01       151,317    92,807    58,510     9.1%

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 
11/13/01      38,751    49,257   (10,506)   23.9%
11/20/01      38,042    46,446    (8,404)  (20.0%)
11/27/01      37,259    48,315   (11,056)   31.5%

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
11/13/01       11,568     6,505    5,063      55.1%
11/20/01       12,933     8,230    4,703      (7.1%)
11/27/01       12,540     8,359    4,181     (11.1%)

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 
11/13/01      24,145    10,204   13,941     (0.6%)
11/20/01      25,033    11,525   13,508     (3.1%)
11/27/01      24,243    11,496   12,747     (5.6%)

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
11/13/01       4,094    12,121    (8,027)     (7.8%)
11/20/01       3,609    10,565    (6,956)    (13.3%)
11/27/01       4,228    10,630    (6,402)     (8.0%)
 
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        +58,510     +53,646        -50,069     -46,038

Total Open
Interest %       (+23.97%)  (+23.59%)      (-6.32%)   (-5.86%)
                 net-long   net-long       net-short  net-short


                     Small Specs             Commercials
DJIA futures     (Current) (Previous)    (Current) (Previous)
Open Interest
Net Value          -4,228     -6,956          +12,747    13,508
Total Open
interest %       (-43.09%)    (-49.07%)      (+35.67%)  (+36.94)
                 net-short   net-short     net-long    net-long


                     Small Spec              Commercials
NASDAQ 100      (Current) (Previous)    (Current) (Previous)
Open Interest
Net Value         +4,181      +4,703         -11,056    -8,404

Total Open
Interest %        (+20.01%)   (+22.22%)     (-12.92%) (-9.95%)
                 net-long   net-long      net-short net-short


What COT Data Tells Us
----------------------
Indices:.We’ve seen the Commercials add to their net-short 
positions for the second week in a row after being stationary for 
a month. Is this a bearish sign? Too early to tell, but as we 
said last week, a failure to go net-long (bullish) is an 
indication of caution, and one that must be respected by longer-
term players.

Gold: Last week we highlighted the fact that Commercials reducing 
their net-short positions by a wide margin could indicate a 
bounce is around the corner. Looking at the XAU (gold and silver 
index) this week we see that the index has enjoyed a 5 percent 
gain. Nothing to get too excited about, however, with the 
Commercials going net-long (bullish) this week, it’s worth 
monitoring.

10/30 33,199 contracts net-short
11/06 35,435 contracts net-short
11/13 23,637 contracts net-short
11/20  2,489 contracts net-short
11/27  1,738 contracts net-long

Data compiled as of Tuesday 11/20 by the CFTC.



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

Nextel Comm - NXTL - close: 11.88 change: +0.92 stop: 10.99

Company Description:
Nextel Communications Inc., based in Reston, Va., is a leading 
provider of fully integrated wireless communications services and 
has built the largest guaranteed all-digital wireless network in 
the United States covering thousands of communities across the 
United States. Nextel and Nextel Partners, Inc., currently serve 
191 of the top 200 U.S. markets. Through recent market launches, 
Nextel and Nextel Partners service is available today in areas of 
the U.S. where approximately 230 million people live or work. In 
addition, through Nextel International, Inc., Nextel has wireless 
operations and investments in Canada, Mexico, Argentina, Brazil, 
the Philippines, Peru, Chile and Japan.

Why We Like It:
Shares of NXTL surged higher today, bolstered by a strong tech 
market.  Two consecutive days of increasing upside volume has 
finally pushed the stock above its 100-dma and the onset of the 
next leg up could be at hand.  Technical traders can see that 
today's move was a result of the bullish wedge or pennant that had 
been forming for the last two weeks.  Shares kept producing higher 
lows as the bulls and bears fought over resistance at $11.50.  
Closing over the 100-dma just made the move that much sweeter.  
There are two ways to play the move in NXTL.  Traders can look for 
the stock to pull back and bounce off the $11.50 level, which has 
been a common occurrence for stocks making technical breakouts 
lately (that is a pull back to previous resistance has been 
common).  Or traders can wait for shares to close over the $12.00 
mark, which could be round number price resistance.  Frankly, it 
looks like NXTL could make it to $13.00 without much hassle and if 
the bulls really push hard a $14.00 price target is not 
unreasonable.  Beyond that the stock would have to deal with the 
200-dma currently residing near 14.40.  We're placing our stop at 
10.99 with the expectation that 11.50 should hold as new support.  
FYI, we checked out the point-and-figure chart and NXTL is on a 
strong column of X's with descending bearish resistance at $13.50.  

Picked on December 4th at $11.88
Gain since picked:         +0.00
Earnings Date              01/23 (unconfirmed)






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Do not duplicate or redistribute in any form.



PremierInvestor.net Newsletter                 Tuesday 12-04-2001
                                                   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/5931_2.asp
=================================================================

In section two:

Net Bulls
  New Bullish Plays:    NXTL
  Bullish Play Updates: EXEL, NVDA
  Bearish Play Updates: QCOM, RLRN, WWCA
  Closed Bearish Plays: EXAR, FLIR

Stock Bottom / Active Trader
  Bullish Play Updates: SEE
  Bearish Play Updates: MO
  Closed Bearish Plays: SPY

High Risk / High Reward
  Bullish Play Updates: T, QLGC
  Closed Bearish Plays: ITWO

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 Plays
============

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

Nextel Comm - NXTL - close: 11.88 change: +0.92 stop: 10.99

Company Description:
Nextel Communications Inc., based in Reston, Va., is a leading 
provider of fully integrated wireless communications services and 
has built the largest guaranteed all-digital wireless network in 
the United States covering thousands of communities across the 
United States. Nextel and Nextel Partners, Inc., currently serve 
191 of the top 200 U.S. markets. Through recent market launches, 
Nextel and Nextel Partners service is available today in areas of 
the U.S. where approximately 230 million people live or work. In 
addition, through Nextel International, Inc., Nextel has wireless 
operations and investments in Canada, Mexico, Argentina, Brazil, 
the Philippines, Peru, Chile and Japan.

Why We Like It:
Shares of NXTL surged higher today, bolstered by a strong tech 
market.  Two consecutive days of increasing upside volume has 
finally pushed the stock above its 100-dma and the onset of the 
next leg up could be at hand.  Technical traders can see that 
today's move was a result of the bullish wedge or pennant that 
had been forming for the last two weeks.  Shares kept producing 
higher lows as the bulls and bears fought over resistance at 
$11.50.  Closing over the 100-dma just made the move that much 
sweeter.  There are two ways to play the move in NXTL.  Traders 
can look for the stock to pull back and bounce off the $11.50 
level, which has been a common occurrence for stocks making 
technical breakouts lately (that is a pull back to previous 
resistance has been common).  Or traders can wait for shares to 
close over the $12.00 mark, which could be round number price 
resistance.  Frankly, it looks like NXTL could make it to $13.00 
without much hassle and if the bulls really push hard a $14.00 
price target is not unreasonable.  Beyond that the stock would 
have to deal with the 200-dma currently residing near 14.40.  
We're placing our stop at 10.99 with the expectation that 11.50 
should hold as new support.  FYI, we checked out the point-and-
figure chart and NXTL is on a strong column of X's with 
descending bearish resistance at $13.50.  

Picked on December 4th at $11.88
Gain since picked:         +0.00
Earnings Date              01/23 (unconfirmed)





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

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

Exelixis Inc. - EXEL - close: 15.60 change: +0.17 stop: 14.85

Shares of EXEL held up well during the biotech sell-off on 
Monday.  The BTK.X fell to the 585 level but it was the first 
actual close under the ascending bullish trend since the sector 
began climbing higher back in late September.  This immediately 
put us on alert even though EXEL found support near $15.35.  The 
bullish performance in the Nasdaq on Tuesday has certainly 
improved our outlook but the BTK, despite the market's surge 
higher, now trades below the ascending bullish trend line.  We'd 
really like to see confirmation in the sector and EXEL needs to 
break above the $16.00 level.  We would still expect $15.00 to 
act as support for the stock as the 15-dma is trading at 14.95.  
More aggressive traders may want to look for bounces above this 
level as entry points if they are offered.

Picked on November 30th at $15.85
Gain since picked:          -0.25
Earnings Date               11/13 (confirmed)




---

NVIDIA Corp. - NVDA - cls: 58.14 chg: +4.33 stop: 52.99 *new*

Wow!  That's the sort of move we have been looking for in NVDA 
and one that is not new to the stock.  When buyers decided that 
chips stocks would be on the top of the list today, NVDA was a 
popular choice.  The SOX added 33 points or 6.47%.  While this is 
encouraging the sector still has potential resistance at 550 and 
at its 200-dma near 561.  Whether or not the SOX can power 
through these levels could determine the strength of NVDA's own 
rally attempts.  Speaking of NVDA, the 8% move today came on 
higher than normal volume and the MACD just produced a new 
bullish crossover that is almost imperceptible on many charts.  
Before we go any further it is important to note that today's 
move actually triggered us as "long" in the play.  Furthermore, 
the original write up had an error.  The trigger point was $55.45 
not $50.45 but this should have been evident as an error based on 
the context of support and resistance discussed.  Technically 
speaking, the $55 level should now act as support for the stock 
and it is quite common for shares to turn back and retest a 
recent breakout level allowing momentum takers to do some profit 
taking and other buyers to jump in near this new support level.  
Whether or not NVDA will allow this to occur is the question.  
The fact that shares closed near their high for the day is 
bullish for Wednesday morning.  We would probably expect 
potential selling at the $60 mark and short-term traders may want 
to take some profits there and then look for a pull back for a 
new entry.  Due to the triple top breakout in the point-and-
figure chart that was signaled today we're aiming for more than a 
$5 gain in this stock and thus we'll leave our stop loss just 
below the $53 mark.  Some readers may want to place their stops 
at the 5% gain level so that no matter what the stock does they 
can expect a profit.

Picked on December  4th at $55.45 
Gain since picked:          +2.69
Earnings Date               11/08 (confirmed)





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

QUALCOMM - QCOM - close: 59.91 change: +2.63 stop: 60.61

Today’s bullish move in shares of QCOM pushed the equity to a 
close just under 60.00 and has raised some concern that our short 
play may soon be taken out.  QCOM has recaptured both its 10 and 
its 200-dma and if technology continues to roll tomorrow, it is 
likely that the stock will follow suit.  Because of this potential 
reversal in several tech sectors, tonight's wrap outlines a 
potential bullish trade in shares of QCOM.

Picked on November 28th at $57.29
Loss since picked:          -2.62
Earnings Date               11/06 (confirmed)




---

Renaissance Learning - RLRN - cls: 25.15 chg: +0.28 stop: 26.11

RLRN posted a minor gain on the session, with shares closing just 
above $25.00.  Today’s volume was far from impressive though, 
suggesting that a close above 25.00 may not be all that bullish 
for the stock.  We still believe that shares have more downside 
potential and our stop at 26.11 provides enough room to maneuver.  
We are becoming more cautious on RLRN despite its failure to truly 
participate in the recent rally.  The MACD is starting to flatten 
out and the histogram is returning to zero.  This indicator could 
be telling us that RLRN has found a bottom.  We would not look for 
new entries until RLRN closed back below the $25.00 mark.

Picked on November 24th at $26.16
Gain since picked:          +1.01
Earnings Date               10/15 (confirmed)




---

Western Wireless - WWCA - close: 23.87 change: +0.08 stop: 25.01

Buyers stepped in late in the session to pull WWCA off its lows, 
but the close only provided for a minor move in the stock and we 
think that today’s meager bounce could simply be an anomaly in the 
overall scheme of things.  We’re going to refrain from tightening 
our stop on WWCA, and instead sit tight at 25.01.  Unless things 
change rather drastically, we feel that the likelihood of a 
continued degradation in the stock’s price is higher than any 
bullish reversal at this time.  We will reiterate our comments 
from Monday.  If you entered this play looking for a 10% move then 
you should be taking profits.  We're willing to hold on for more 
downside, as the stop at $25.01 should protect a 5% gain in the 
play.

Picked on November 10th at $26.40
Gain since picked:          +2.53
Earnings Date               11/07 (confirmed)





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

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


FLIR Systems - FLIR - cls: 44.85 chg: +2.62 stop: 42.55     

FLIR spent most of last week with multiple failed rally attempts 
through technical resistance.  We thought the close just over $40 
on Friday looked like a chance to jump in before the crowd on the 
next leg down.  It appears we were wrong.  The stock found 
strength late in the day on Monday and today's market rally 
helped keep the momentum going.  Shares have now moved back above 
the 44.50 level, which was a measure of support in the first half 
of November.  The MACD has produced a bullish crossover that 
could deter more bears from placing any bets.  Traders should be 
careful whether they are bullish or bearish.  The stock has a lot 
of congestion in this area between $44 and $46.  We would wait 
for a new, clean trend to emerge.

Picked on December 1st at $40.15
Loss since picked:         -1.40
Earnings Date              10/25 (confirmed)




---

Exar Corp - EXAR - cls: 21.17 chg: +1.67 stop: 21.10     

Buoyed by a strong rebound in tech stocks, more specifically the 
chip sector, shares of EXAR pulled out of the recent downward 
trend to regain its 10-dma in trading today.  The gains returned 
the stock to previous support levels just above 21.00 and 
effectively closed out our short position at 21.10.  EXAR had 
traded contrary to the SOX for the better part of November and 
that is exactly why we selected it for a short play, but today’s 
rebound in the stock comes concurrent to the broad measure and 
could signal that the recent disparity may be over.  With the 50-
dma only a few cents away at 21.35, EXAR could be developing into 
a potential long position, though we would prefer to wait and see 
if today’s rebound will be confirmed.  Bulls should expect 
potential resistance at $22.00, which is underpinned by the 200-
dma.

Picked on December 1st at $19.80
Loss since picked:         -1.30
Earnings Date              10/18 (confirmed)





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

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

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

Sealed Air Corp - SEE - close: 45.85 change: +0.25 stop: 43.99

Did you see it?  Monday's session allowed observant traders a 
clean bounce off the $45 level and the 10-dma just as we discussed 
in the weekend write up.  Shares dipped to the $45 mark before 
10:30 AM on Monday and quickly bounced higher.  The bullish trend 
still looks great for SEE and the stock appears to be coiling for 
a break above $46.  It is very common for stocks to pull back to 
previous resistance after a breakout and now that SEE has done so 
we're prepared for the next leg up in the share price.  We're 
going to leave our stop where it is but more conservative traders 
may want to consider stop placement closer to the $45 mark.

Picked on November 30th at $45.90
Gain since picked:          -0.05
Earnings Date               10/24 (confirmed)





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

Philip Morris - MO - close: 46.65 change: -0.48 stop: 48.11

The 100-dma served as upward resistance for a second consecutive 
day as shares of MO finished just above the 10-dma of 46.60 on 
waning volume.  With news that a bottoming in the tech sector 
could be here, investors might continue to rotate out of 
defensive issues like MO, putting cash to work in more 
potentially lucrative sectors.  If this trend continues tomorrow, 
we’ll consider tightening our stop.  For now, though, we’re 
comfortable with the breathing room that our stop of 48.11 
affords.  The media was happy to harp on the release of MO's new 
Christmas season cigarette marketing ploy with the introduction 
of a new special blend simply labeled "M".  Confirm stock 
direction before committing new capital.  More conservative 
traders could try placing their stops above $47.60 but until 
shares of MO confirm the bearish trend by closing under $46.00 
we'd rather stay above the 200-dma.

Picked on December 1st at   47.17
Gain since picked:          +0.52
Earnings Date               10/17 (confirmed)





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

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

S&P 500 Spiders - SPY - cls: 115.22 chg: +1.85 stop: 115.05 

An afternoon rally in the broad markets pushed the SPY higher, 
taking out our stop of 115.05 and closing out our short play.  
Today’s impressive rally came as President Bush conducted the 
first town hall meeting of his administration and, clearly, the 
market was pleased with much of what was said.  In addition to 
Bush's speech, bullish comments in the tech sector signaling that 
a bottom may have been reached provided much of the upside 
impetus today, reversing the downtrend that we identified on 
Friday.  Today’s close takes the SPY back above the short-term 10 
DMA and, though we feel that the market could see some additional 
profit taking over the course of the week, today’s move higher 
provided a contrary opinion.

Picked on December 1st at $114.05
Loss since picked:          -1.00
Earnings Date                 N/A





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

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

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

AT&T Corp - T - close: 17.59 change: +0.15 stop: 16.65

I don't know about you but it looks like the expected Monday 
fireworks for shares of T were all duds.  Actually, we were 
starting to be concerned that these fireworks would all explode 
on us as T fell below the $17.00 level (towards its 15-dma).  
Fortunately, the stock recouped most of its Monday losses and 
managed to close back above its 200-dma.  Tuesday's performance 
wasn't much better but the trend was boosted by the bullish 
activity in the broader markets.  We're almost back where we 
started from and shares are back above the pivotal $17.50 level.  
If you've been following the drama between T and Excite@Home then 
you already know that @Home pulled the plug on its AT&T 
subscribers Saturday morning when they could not come to an 
agreement with AT&T.  This left me and about hundreds of 
thousands of AT&T cable-Internet subscribers without a 
connection.  A few industry insiders claimed this move by Excite 
would sour AT&T's feelings toward a buyout of Excite@Home.  Those 
comments proved true when AT&T retracted their bid today.  
Fortunately, most of AT&T's broadband subscribers should be back 
online by Wednesday with AT&T's new network.  

Traders betting on some excitement over AT&T's potential 
broadband sale still have hope.  As we mentioned earlier there 
are three main bidders for the division.  AOL Time Warner would 
like AT&T to spin off the company and then merge the broadband 
division into Time Warner.  Comcast and Cox Communications are 
looking to buy the division and reporters say both are getting a 
little help from Microsoft.  The rivalry between AOL and MSFT has 
reared its head again and this time over AT&T's broadband 
division that controls almost 14 billion U.S. subscribers.  That 
is a huge audience for AOL or MSFT to leverage into customers for 
their other product lines.  The theory now is that MSFT isn't so 
hot on buying the company themselves but they don't want AOL to 
own it and keep them out of such a large market.  Thus MSFT is 
said to be willing to help COX or Comcast in their own bids.  If 
AT&T decides to spin the company off on its own, MSFT said it 
would be willing to invest $4 to $5 billion into the new company.  
We would keep our eyes on shares of T.  Now that it has re-tested 
support at the $17.00 level we'd like to see a new leg up.  
Aggressive traders may want to consider bounces above $17 as 
entry points.

Picked on November 29th at $17.62 
Gain since picked:          -0.03
Earnings Date               10/23 (confirmed)




---

QLogic Corp - QLGC - close: 52.95 change: +4.62 stop: 48.99 *new*

"...and they're off!"  If one chose to look at the stock market 
as a horserace then the semiconductor sector has got some real 
sprinters.  Shares of QLGC were a little slow out of the gates 
today but vaulted ahead in the last two hours of trading.  The 
SOX.X gained 33 points or 6.47%.  We're very encouraged by the 
strength of the breakout but remain somewhat cautious.  The SOX 
has price resistance at 550 and its 200-dma is near 561.  The 
sector needs to get through these hurdles before chips stocks as 
a group can really aim for large gains.  Of course the 9.55% gain 
in QLGC was impressive and closing near its high for the day is 
bullish for tomorrow's open.  Unfortunately, stocks breaking out 
recently have been returning to a common trend of pulling back to 
retest the previous resistance as support before extending its 
next leg up.  This is great news for traders who failed to get in 
on this rally but there's no guarantee QLGC will come back.  
Speaking of "in", we were triggered in the play when QLGC traded 
at $50.65 late this afternoon.  Due to the strong move we are 
going to raise our stop to $48.99.  If the stock does pull back, 
and we would expect it to sooner or later, a bounce at the $50.50 
level would make a great place to evaluate an entry point to go 
long.  We're still targeting the $60 mark and if QLGC trades 
there we'll close the play for a profit.

Picked on December  4th at $50.65
Gain since picked:          +2.30
Earnings Date               10/23 (confirmed)





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

  --------------------
  Closed Bearish Plays
  --------------------
 
I2 Technologies - ITWO - close: 6.40 change: +0.90 stop: 6.26

The broad-based rally in the tech sector had traders looking for 
cheap software stocks they could buy and ITWO fit the list.  The 
GSO.X was up 3.73%.  In contrast, ITWO rocketed 16% higher after 
its +4% fall on Monday.  If the stock can trade above the $6.75 
level it may be the beginning of a new bullish trend higher but 
keep your eye on resistance between $7.00 and $7.50.  We were 
still in the play most of the day but the last hour rally stopped 
us out at 6.26.  As you can see, ITWO is a very volatile stock 
and should be traded with caution.

Picked on November 30th at $ 5.74 
Gain since picked:          -0.52
Earnings Date               10/16 (confirmed)





==================
  Trading Ideas
==================

This section contains stocks that meet criteria which may make
them of interest to long and short side traders.  These are not
recommendations, nor have they been reviewed by PremierInvestor
editors for investment potential.  However, each of them has
technical and fundamental characteristics that make them worthy
of further review by traders and investors looking for fresh ideas.
New stocks will appear daily following the market close.

12/04/01


--------------------------------- 
Value Plays With Bullish Signals 
--------------------------------- 
Ticker  Company Name               Close     Change 

FE      Firstenergy Corp           35.10     +1.04
CVC     Cablevision Systems        45.11     +1.71
APA     Apache Corp                47.93     +0.87
AVX     Avx Corp                   21.75     +0.56
TDW     Tidewater Inc              29.85     +0.82
BOBE    Bob Evans Farms            23.25     +0.64

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

SBUX    Starbucks Corp             19.66     +1.18
SAY     Satyam Computer Servcs     10.70     +1.12
WIND    Wind River Systems         18.57     +1.72
CNET    Cnet Networks Inc           9.60     +2.95
SNDK    Sandisk Corp               15.30     +1.66

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

MU      Micron Technology          30.49     +1.93
K       Kellogg Co                 30.45     +1.14
IFX     Infineon Technologies      21.60     +1.44
FDX     Fedex Corp                 48.30     +2.85
ERTS    Electronic Arts            64.44     +4.38
SANM    Sanmina Corp               22.37     +1.88
SCI     Sci Systems Inc            30.30     +2.52

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

JNJ     Johnson & Johnson          57.23     -1.08
RSH     Radioshack Corp            27.30     -1.10
HGSI    Human Genome Sciences      38.51     -2.26
CDN     Cadence Design Systems     22.00     -1.55
SNPS    Synopsys Inc               53.03     -2.36
CBST    Cubist Pharmaceuticals     31.45     -2.32

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

ALL     Allstate Corp               32.80     -1.15
PENN    Penn National Gaming Inc    24.73     -0.79


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