Option Investor
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Daily Newsletter, Friday, 12/21/2001

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PremierInvestor.net Newsletter          Weekend Edition 12-21-2001
                                                    section 1 of 3
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In section one:

Market Wrap:      Energy stocks looking interesting
Play-of-the-Day:  Bottom Fishing for Christmas
Watch List:       MDT, SWC, ACS, WBSN, AGIL, and more!
Market Sentiment: Calming words lead markets higher.

------------------------------------------------------------------
U.S. Market Numbers
------------------------------------------------------------------
MARKET WRAP  (view in courier font for table alignment)
------------------------------------------------------------------
       WE 12-21         WE 12-14         WE 12-07         WE 11-30
DOW    10035.34 +224.19  9811.15 -238.31 10049.46 +197.90  -108.15
Nasdaq  1945.83 -  7.34  1953.17 - 68.09  2021.26 + 90.68  + 27.39
S&P-100  586.41 + 14.03   572.38 - 19.40   591.78 +  6.98  -  8.47
S&P-500 1144.89 + 21.82  1123.07 - 35.24  1158.31 + 18.96  - 10.89
W5000  10644.93 +201.37 10443.56 -301.81 10745.37 +213.92  - 64.95
RUT      484.02 + 12.73   471.29 -  9.92   481.21 + 20.43  +  2.36
TRAN    2605.23 + 28.13  2577.10 - 51.16  2628.26 +116.48  - 23.12
VIX       23.29 -  2.68    25.97 +  1.08    24.89 -  1.25  +  1.36
VXN       50.96 -  1.83    52.79 +  2.61    50.18 +  1.73  -  2.36
TRIN       1.08             1.06             1.18             1.19
TICK      +1184             +388             +828             +852
Put/Call    .69              .72              .78              .63
------------------------------------------------------------------
WE= week ended

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

Energy stocks looking interesting

Maybe it is my more conservative nature toward investing and 
trading that has had me looking at transportation, retailing and 
some energy stocks in recent weeks.  After all, our bullish 
percent charts were telling us that the NASDAQ-100 and the 
Semiconductor sectors were "overbought" and starting to show some 
internal sell signals.

Sure, we've mixed in some bullish "tech" trades this week, but 
really tried to find some stocks that were in a rather tight 
trading range that a break in our direction of thought would have 
a bear capitulating.  We've offset some of the bullish tech 
trades with a few bearish ones too.  We're going to remain rather 
aggressive with our stops right now as we feel that's the best 
strategy, even when you get a stock like XM Satellite Radio 
(NASDAQ:XMSR) running like it is, everything above our stop is 
considered "icing on the cake."  If that silly thing wants to run 
to a height similar to the satellites it broadcasts is radio 
content from, I'm willing to give it a chance, but I don't want 
to let some "end of year" tax strategy take away the gains 
subscribers have gotten.

On the other side of tech, I don't want to let a bearish gain 
like subscribers have going in a short play on Taiwan 
Semiconductor (NYSE:TSM) evaporate either.  My position right now 
is that tech has been due for a pullback, but not a retest of the 
lows.  It's just that I've seen these types of bullish percent 
levels in the past (broader bull and bear markets) and I've yet 
to see level above the 70% level hold for too long.  Eventually 
the market removes the risk from the stocks in the form of "sell 
signals" (supply exceeding demand) and once the risk is removed, 
then it's time to start getting bullish that sector or segment of 
the market once again.

Weekly performance




As I said earlier today, it's tough to make much out of an option 
expiration Friday.  Even the weekly results may be somewhat 
skewed due to this weeks triple-witching when you've got stock 
options, index options and futures all expiring.  You've got 
institutions closing out prior positions and rolling some of them 
forward into next year.  Next week, we will perhaps get a more 
"natural" market, but even then I'd expect things to be rather 
calm considering it will be a shortened trading week due to the 
Christmas holiday on Tuesday, and half-day trading session on 
Monday (market closes at 11:00 EST on Monday).

Not a lot happened this week on the broader scale of things.  The 
NASDAQ-100 Index (NDX.X) was the only major market index that 
showed a loss greater than 1%.  

As you look down through the chart, you see it was the Internet 
Index (INX.X) and Semiconductor Index (SOX.X) that suffered the 
worst.  My take here is that the Internets (INX.X), which I've 
mentioned before is more of a take on how aggressive a bull is, 
took it on the chin only due to a more "conservative" bull 
environment.  This group has and most likely will trade on 
"expectations" than it will on "bottom line" earnings.  The 
multiples remain high and it is a group to trade long from a more 
"oversold" condition in the broader market.  Yesterday, this 
group traded right down to its 50-day moving average and bounced 
up 2.8% today.  This hints that somebody is willing to buy the 
dip, but the measly 2.8% gain today also hints that the bull 
isn't breathing fire through his nose.

The Semiconductor Index (SOX.X) rose 2.5% today and that helped 
the sector recover somewhat on the week.  For the week, the 
semiconductors fell 5.3%.  It would have been tough for a bull to 
make money in the sector.  When you consider our bearish play in 
Taiwan Semiconductor (NYSE:TSM) as fallen about 7.4% since 
profiled Wednesday night, we feel fortunate to have caught up 
with the Semiconductor Index losses from the past two weeks in 
just two days.  While a gain for a bear of 7.4% doesn't seem like 
much, I do think a trader needs to look at what the "parent 
index" has done recently and put things in perspective.  If an 
index has declined roughly 8% in two weeks time, and I'm short a 
stock that declines 7% in two days, I want to challenge that 
position with a rather tight stop.  If stopped out, and the stock 
continues to decline, then I'm aware of further weakness in the 
group and will go after another stock that has the proper trade 
setup where I can control my risk.

Enough with the bearish side of things.  Let's get on with some 
bull!  The retailers had a good week and finished with the 
largest weekly gain among all the sectors we follow.  The Retail 
Index (RLX.X) rose 4.4% for the week, and Friday's move higher by 
1.72% came just ahead of next week's retail sales report.  On 
Wednesday, we'll get some reports from two private research firms 
on how chain store sales do this weekend.  This past week has 
typically been the peak of the holiday shopping season and the 
Retail Index (RLX.X).  Those subscribers that played our bullish 
play in J.C Penney (NYSE:JCP) from last Friday (profiled evening 
of December 13th) are well positioned ahead of the report.  We're 
going to snug our stop up so subscribers don't get "scrooged."

Lately I find myself seeing some early stage bullish charts 
developing in the energy sectors.  A couple of weeks ago we 
mentioned Oil Service Index (OSX.X) component BJ Services 
(NYSE:BJS) near the $30 level as a stock to be monitoring or 
nipping away at with 1/2 bullish positions.  While the Oil 
Service Index (OSX.X) rose just 3.7% on the week, we're starting 
to see some confirmation from the Oil Index (OIX.X) and Natural 
Gas Index (XNG.X) this week.  Both the OIX and XNG drilled out 
some 4% gains this week and it looks like the energy complex is 
beginning to look bullish.

Here's an energy stock I think that is really showing some 
technical signs of longer-term bullishness.  If you're ever heard 
of a "reverse head and shoulders pattern," this may be a classic 
example of that pattern.  Introducing Apache Corporation 
(NYSE:APA).

Apache Corp. Chart - Daily Interval




One of the first patterns I learned to identify and was impressed 
with was the reverse head and shoulders pattern.  The thinking 
behind the pattern is that at shoulder A, the market becomes 
aware that it is going to be awhile before the bottom is found 
and selling is heavy as money looks to move elsewhere (perhaps 
treasury bonds).  A brief rally takes hold as the stock gets 
oversold.  The rally doesn't last as "smart bears" know the story 
and begin leaning on the stock.  As the stock begin to break 
further, those bulls that thought they bought the bottom at "A" 
begin to sell and the stock finds a new low "B."  Once again, the 
shares become oversold and a rally resumes, right back to the 
previous stall.  That rally and reversal back lower is what sets 
up the neckline.  A solid level of resistance.  The next decline 
is the test for a bull's resolve.  Is the bull "smart enough" or 
know enough to buy the pullback?  If there isn't enough "educated 
money" the pullback and failure at the "right shoulder" (C) will 
fail and most likely a retest of the low "head" (B) will be 
certain.  The LARGE volume spike is the major disagreement 
between the bulls and bears.  Right now, the move higher is a 
hint that bulls are winning out, but the true test is the 
neckline, the level of horizontal resistance.  I don't know why 
the reverse head and shoulders calculation "works" or is rather 
accurate.  Is there any other charting system you know of where 
you can "calculate" bullish price objectives from?

One "reverse head and shoulders pattern" I remember like it was 
yesterday was one found in the weekly interval chart of United 
Technologies (NYSE:UTX) that I profiled for subscribers of 
OptionInvestor.com back in 

United Technology Chart - Weekly Interval (historical)




Believe it or not, it was the point and figure chart of United 
Technologies (NYSE:UTX) and a bullish vertical count $85 that had 
me interested in the stock for longer-term investors or LEAPS 
traders.  The correlation of that bullish vertical count along 
with a similar calculation using the reverse head and shoulders 
calculation indicating a longer-term price objective of $82 was 
too much of a coincidence.  In October of 2000, there was a 
"hiccup" and the stock did pull back sharply to $60, but look at 
that VOLUME SPIKE and gobbling up of the stock and quick 
recovery.  Eventually, the stock reached a high of $87.50, but 
that was it.  Since then the stock has traded a low of $40.10 
(September 21, 2001) and now trades $63.70.

Just another good reason to lock in some profit when an objective 
is reached, then follow with a stop on the rest to make sure it 
doesn't turn into a loss.

There are two strategies for trading reverse head and shoulders.  
One is to establish a partial position after a potential right 
shoulder is in place, then add to a full position once the break 
of the neckline has been accomplished on a closing basis.

The other strategy is to wait for a break of the neckline.  The 
more volume that comes in on that break the better.  That creates 
the "disagreement" between bulls and bears.  Most often, the 
bulls are the winners, especially when you've seen a large volume 
spike on the right shoulder and that money is most likely "in the 
know" of some future event that justifies the move higher in 
price for the stock.

This is a great market environment for traders to be looking for 
"reverse head and shoulder patterns."  The steep sell-off in late 
September is most likely the head.  The recent rally for stocks 
may well set in place the rest of the "neckline" and any pullback 
from there should then create the right shoulder.

A trader/investor that can identify some of these patterns (you 
have to look at a lot of charts) and can perhaps correlate some 
bullish vertical counts from the point/figure charts will perhaps 
have some insight into how things play out longer-term for a 
stock.

Next week

The week of the Christmas holiday is usually bullish, but not for 
every stock.  Those stocks that remain weak and have been this 
years biggest losers may succumb to end of year tax selling.  The 
same can be true for some of this year big winners.  The winners 
can be sold, gains taken, to offset the big losses.  Often times 
it's those "mid-range" stocks.  Those that have recovered just 
enough that a bull that has been holding on is now starting to 
see some light at the end of the tunnel for the stock that does 
well.  Many of the "pros" take the week off and the less 
"experienced" trading desk traders are at the helm.  This can 
lend to broader market bullishness.

Next week I'm going to be scouring through charts looking for 
some tax-loss bounce candidates for January.  All I'm doing right 
now is looking for some volume spikes and just monitoring the 
stock.  One that I have my eye on that we unsuccessfully traded 
on the site is TranSwitch (NASDAQ:TXCC).  We should have waited 
for the stock to give the "inside day" buy from December, 12th.  
We had a tight stop near $5 and glad we did.  I'm watching the 
stock trade for the past three days right on the 50-day MA.  I'd 
like to see her hang above $4 going into January.  My thinking is 
that market makers are just sitting back, waiting for the 
individual investor to lock in their losses for the tax year.

Monday will be a trade-shortened session due to Christmas Day 
being observed on Tuesday (market closed).  If I don't write to 
you before then, have a happy holiday!

Jeff Bailey
Senior Market Technician


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

Microcell Telecomm. - MICT - close: 2.10 change: +0.13 stop: 1.73

Company Description:
Microcell Telecommunications has been a public company since 
October 15, 1997, and is a member of the TSE 300, TSE 200 and 
S&P/TSE Canadian SmallCap indices. Microcell's head office is 
located in Montreal. The Company employs more than 2,100 people 
across Canada. (source: Company Press Release)

Why We Like It:
Simply put, we think the worst may be over for MICT.  The company 
recently had a successful "rights" offering and two of its 
biggest shareholders, VoiceStream and Telesystem Ltd exercised 
their rights to buy stock which should net the company enough 
capital to maintain its lead in the Canadian wireless market. 

MICT bottomed at 80 cents in October and produced a second higher 
low at $1.08 in late November.  Friday's close put the stock back 
above the $2.00 resistance level with decent volume confirming 
the move.  Bulls have an opportunity to try and catch any run 
between $2 and its recent highs near $2.75 in November.  If you 
prefer to target shoot an entry; look for bounces between $1.90 
and $2.00.  Be advised that small moves in the stock price can 
equal sizeable percentage gains or losses.

Picked on December 21st at $ 2.10
Change since picked:        +0.00
Earnings Date               11/12 (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.

STOCKS WORTH WATCHING
---------------------------------

Medtronic Inc - MDT - close: 50.55 change: +0.52

WHAT TO WATCH: This healthcare stock has been very strong these 
last few weeks and share recently broke through tough resistance 
between $49 and $50.  Friday's move was on decent volume and 
shares closed at their high for the day.  Personally, it looks 
like an entry point to go long but I wouldn't mind buying it at 
$48 either (even though I would expect $49 to act as support 
now).  This one is worth keeping an eye on and look for potential 
resistance near $52.50.




---

Stillwater Mining Co. - SWC - close: 18.55 change: +0.90

WHAT TO WATCH: I haven't been following the gold market as 
closely as Mr. Bailey but I was impressed by the breakout in 
shares of SWC on Friday.  The stock had been trading sideways 
between $17 and $18.15.  The breakout looks strong and one might 
expect it to trade to $20 but watch out for heavy resistance at 
$19.50 formed back in early October.  You'll also want to watch 
the Gold and Silver index (XAU.X) which is trading near its 200-
dma.




---

Affiliated Computer Svcs. - ACS - close: 102.96 change: +0.96

WHAT TO WATCH: I've been watching this stock for months and it 
pains me to watch it inch higher every week when I keep looking 
for a decent entry point.  The long-term up trend should offer a 
buying opportunity a good ten points below current levels but 
shares will not pull back.  I'd even been tempted if the stock 
would pull back to its 50-dma near $95.  You'll have to decide if 
this is one worth waiting for or whether the bounce near $100 on 
Friday is good enough to go long.  Whatever you choose don't 
forget your stop.




---

Websense, Inc. - WBSN - close: 31.38 change: +1.53

WHAT TO WATCH: We strongly considering adding WBSN as a play this 
weekend but it didn't quite make it.  That doesn't mean it 
doesn't offer active traders a chance to trade it and the strong 
gain on Friday looks like the beginning of its next leg higher.  
MACD is starting to curve up again and actually produce a bullish 
crossover.  We would urge caution when it comes to placing your 
stop.  WBSN tends to produce wild or exaggerated intraday moves 
which will make it tough to play on a short-term basis without 
risking a bit more than you might like.  




---

Agile Software Corp. - AGIL - close: 17.50 change: +1.97

WHAT TO WATCH: AGIL was another stock that came very close to 
being added as a play this weekend but a couple of factors 
deterred us.  First, we hate to jump in on new longs after a big 
gain like AGIL's 12% move on Friday.  It makes stop placement 
tough and you're just begging for a pull back to take you on the 
next day if your stops not wide enough.  Second, the GSO.X 
software index fell through its 200-dma on Thursday.  The sector 
did bounce on Friday but failed to rally back over this crucial 
support level.  AGIL is on a fresh buy signal when comparing its 
relative strength to the GSO.X, which means it should out perform 
the index.  However, if the sector does see stronger profit 
taking next week or next month AGIL may not be able to go it 
alone.  Determined bulls can look for support between $15.75 and 
$16.25 if you prefer to buy on a bounce.  





=============
MORE TO WATCH
=============
(legend: rez = overhead resistance)

Potential Bullish
-----------------

NSIT - only for aggressive traders.  very overbought but the trend
       remains unbroken.  consider a bounce near $22.50.
TFX  - nice breakout over 200-dma.  consider a bounce back to $45.00.
COO  - nice move over the 200-dma.  MACD is crossing the zero line.
LGND - holding on to the $18 level.
INCY - produced a bullish engulfing candlestick pattern on Friday.
AXL  - closed at its high, might target rez near $23.


Potential Bearish
-----------------

BMS  - big volume drop on Friday might signal drop back to $45.
ATML - big volume drop on Friday.  look for support at $5.50.
NEOG - still building a bearish wedge.  look for break below $18.
APA  - 2nd rally to 200-dma.  Friday produced a doji candlestick.
       might be setting up for an "evening star" pattern.
OSIP - look for break below $40.
INFA - 2 weeks at resistance, just closed under 200-dma.


Could Go Either Way
-------------------

ZLC  - looks pretty over bought but volume has been rising each day.
       looks too dangerous to short.  prefer to wait for a pull back 
       to consider a long.
SZA  - another one that looks very overbought.  might consider 
       waiting for the pull back.
ITRI - Is this a bullish reversal off the 50-dma?  looks tempting.
AN   - the chart says go long but the 0% financing boom will end soon.
       then what will sales (and the stock) do?
DRXR - traded right to overhead resistance and stopped.  who will 
       win the tug of war between the bulls and the bears?
BUD  - extremely overbought short-term and approaching resistance.



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

Calming words lead markets higher.
by Russ Moore

For those of bullish persuasion today’s earnings reaffirmation’s 
by Caterpillar and Honeywell was just what the Doctor ordered. In 
addition, Nortel Networks announced a narrower than expected 
fourth quarter loss, giving a boost to the tech sector.

The DOW tacked on +0.5 percent while the NASDAQ added +1.4 
percent and the NDX +1.3 percent. Volume was heavy with 1.68 
billion shares trading on the NYSE and 2.15 billion shares moving 
on the NASDAQ. Advancers were on top by a 21/11 at the NYSE and 
23/14 on the NASDAQ.

Broader market action saw Biotech, airline, oil service and 
retail sectors enjoying nice gains while gold, paper and forest, 
chemicals and banks were under pressure. On the tech side it was 
hardware, networking, Internet and chip sectors heading the pack.

The Michigan Sentiment Index increased to 88.8 from last months 
83.9. Personal spending slipped -0.7 percent, not quite as bad as 
the -0.8 percent forecast. Personal income declined -0.1 percent.

Trim Tab numbers seem to fall in line with the sentiment move as 
5.5 billion dollars flowed in to equity funds for the week ending 
December 19.

As far as expiration weeks go, this was not one of the most 
exciting with the SPX managing only a 38-point trading range for 
the entire week. I guess we shouldn’t be too surprised 
considering the mixed signals investors are faced with. It’s 
awfully difficult to take a firm stance on either side of the 
market under the current circumstances. 


Friday 12/21 close: 23.21


VXN
Friday 12/21 close: 50.96


30-yr Bonds
Friday 12/21 close: 5.46


Total Put/Call Ratio: .69


Equity Option Put/Call Ratio: .61


Index Option Put/Call Ratio: 2.36


===

NASDAQ 100 Index (NDX/QQQ)
52-Week High: 103.51
52-Week Low:   28.19
Current close: 39.48

Volume/Open Interest
Maximum calls: 40/118,173
Maximum puts : 40/ 77,955

Moving Averages
 10 DMA 40
 20 DMA 40
 50 DMA 38
200 DMA 40

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: 586.41

Volume/Open Interest
Maximum calls: 580/3,695
Maximum puts : 520/4,168
Moving Averages
 10 DMA  580
 20 DMA  584
 50 DMA  575
200 DMA  601

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: 1144.89

Volume / Open Interest
Maximum calls: 1150/37,303
Maximum puts : 1150/30,674
Moving Averages
 10 DMA 1136
 20 DMA 1142
 50 DMA 11120
200 DMA 1169

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: 10,035.34

Volume / Open Interest
Maximum Calls: 100/13,823
Maximum Puts   100/25,748

Moving Averages:
 10 DMA  9,926
 20 DMA  9,921
 50 DMA  9,671
200 DMA 10,104

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: 581.72

Volume / Open Interest
Maximum Calls: 650/231
Maximum Puts:  540/974

Moving Averages
 10 DMA 575
 20 DMA 589
 50 DMA 567
200 DMA 537

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: 520.58

Volume / Open Interest
Maximum Calls: 440/1,125
Maximum Puts:  470/2,004

Moving Averages
 10 DMA 548
 20 DMA 545
 50 DMA 508
200 DMA 557

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: 386.00

Volume / Open Interest
Maximum Calls: 400/525
Maximum Puts:  400/253

Moving Averages
 10 DMA 381
 20 DMA 389
 50 DMA 392
200 DMA 390

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, 12/21. 
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 
12/04/01     360,315   420,919   (60,604)   21.0%
12/11/01     367,397   429,640   (62,243)    2.6%
12/18/01     391,995   456,968   (64,973)    4.3%

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
12/04/01       159,336    86,534    72,802    24.4%
12/11/01       158,490    86,717    71,773    (1.4%)
12/18/01       158,300    80,507    77,793     8.4%

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 
12/04/01      42,191    51,426    (9,235)  (16.5%)
12/11/01      45,468    51,392    (5,924)  (35.9%)
12/18/01      55,276    58,433    (3,157)  (46.7%)

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
12/04/01       11,808     8,311    3,497     (16.4%)
12/11/01       12,425    11,754      671     (81.0%)
12/18/01       17,649    18,626     (977)   

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 
12/04/01      22,703    10,739   10,739    (15.7%)
12/11/01      23,135    12,576   10,559     (1.7%)
12/18/01      21,919    13,810    8,109    (23.2%)

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
12/04/01       3,677     9,799    (6,122)     (4.4%)
12/11/01       3,469     9,065    (5,596)     (8.6%)
12/18/01       6,790    10,943    (4,153)    (25.8%)
 
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        +77,793     +71,773        -64,973     -62,243

Total Open
Interest %       (+32.58%)  (+29.27%)      (-7.65%)   (-7.81%)
                 net-long   net-long       net-short  net-short


                     Small Specs             Commercials
DJIA futures     (Current) (Previous)    (Current) (Previous)
Open Interest
Net Value          -4,153     -5,596          +8,109    10,559
Total Open
interest %       (-23.42%)    (-44.65%)      (+22.70%)  (+29.57)
                 net-short   net-short     net-long    net-long


                     Small Spec              Commercials
NASDAQ 100      (Current) (Previous)    (Current) (Previous)
Open Interest
Net Value         -977      +671         -3,157    -5,924

Total Open
Interest %        (-2.69%)   (+2.78%)     (-2.78%) (-6.12%)
                 net-short   net-long      net-short net-short


What COT Data Tells Us
----------------------
Indices:.Commercials held steady on the SPX while continuing to 
reduce their net-short positions on the NASDAQ 100. Small Specs 
were headed the other way on the NDX as they turned net-short. 
Increasing divergence is of key importance and something we’ll be 
watching closely on the tech index.

Gold: It’s easy to see why gold is so difficult to play. After 
two weeks of building net-long positions, Commercial players 
decided to take the opposite side and are now sitting with net-
short contracts. Looking at the charts we see that the XAU hit a 
high point on 12/18.before heading south.

11/20  2,489 contracts net-short
11/27  1,738 contracts net-long
12/04  2,534 contracts net-short
12/11 13,626 contracts net-long
12/18 15,198 contracts net-short

Data compiled as of Tuesday 12/11 by the CFTC.




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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.

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Do not duplicate or redistribute in any form.


PremierInvestor.net Newsletter          Weekend Edition 12-21-2001
                                                    section 2 of 3
Copyright  2001, All rights reserved.
Redistribution in any form is strictly prohibited.

The entire newsletter is best viewed in COURIER 10 for alignment
=================================================================
To view this email newsletter in HTML format with imbedded
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http://www.PremierInvestor.net/htmlemail/101221_2.asp
=================================================================

In section two:

Net Bulls
  New Bearish Plays:     AMZN
  Bullish Play Updates:  ACRT, XMSR
  Bearish Play Updates:  TSM

Stock Bottom / Active Trader
  New Bullish Plays:     BRL
  Bullish Play Updates:  JCP, SEIC
  Bearish Play Updates:  SPY

High Risk/Reward
  New Bullish Plays:     MICT
  Bullish Play Updates:  MCTR, TDSC

Split Trader
  - none -


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

===============
NB New Plays
===============

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

Amazon.com - AMZN - close: 10.00 change: -0.15 stop: 11.10

Company Description:
Amazon.com opened its virtual doors on the World Wide Web in July 
1995 and today offers Earth's Biggest Selection, along with 
online auctions and free electronic greeting cards. Amazon.com 
seeks to be the world's most customer-centric company, where 
customers can find and discover anything they might want to buy 
online. Amazon.com and sellers list millions of unique new and 
used items in categories such as electronics, computers, kitchen 
and housewares, books, music, DVDs, videos, camera and photo 
items, toys, baby and baby registry, software, computer and video 
games, cell phones and service, tools and hardware, travel 
services, magazine subscriptions and outdoor living products. 
Through Amazon Marketplace, zShops and Auctions, any business or 
individual can sell virtually anything to Amazon.com's millions 
of customers, and with Amazon.com Payments, sellers can accept 
credit card transactions, avoiding the hassles of offline 
payments. (source: Company Press Release)

Why We Like It:
Overall retail sales this holiday season are supposed to out 
perform current estimates but these are lowered estimates after 
the events of 9-11.  The bigger problem is that the vast majority 
of retailers are slashing prices so low that there will be a 
famine of post-Christmas sales.  Combine this bleak 1Q outlook 
with new estimates for online sales and we think AMZN looks like 
a short play.  Previously, analysts felt that online retailers 
might do well this year due to shoppers' reluctance to leave 
their homes.  Estimates for this season were close to $11 
billion.  New sales data has industry watchers changing their 
tune and now they estimate only $8 billion for online sales this 
year.  This is a 20% drop from last year's $10 billion in online 
holiday sales.  Not surprisingly, analysts feel that AMZN should 
out perform the group as a whole but as the biggest player in the 
business they'll likely feel the weight of these disappointing 
sales numbers.

Shares of AMZN rocketed higher this fall upon expectations of a 
great Christmas season and the company might be able to deliver.  
In the mean time, the stock has retraced many of those gains and 
now stands precariously at the cliff of psychological support of 
$10.  Since the shopping season is almost over, investors may 
begin to discount disappointing 1Q sales now and AMZN could be in 
for a post-holiday slump.  If AMZN slips below the $10 mark, its 
first stop could be the 50-dma near $9.33.  If that doesn't hold, 
shares may try to fill the gap from late November and trade to 
$9.00.  If the point-and-figure chart is to be believed then AMZN 
will be aiming for the $7.00, its current bearish price 
objective.

As an Internet stock, shares tend to be a bit volatile and thus 
our initial stop at $11.10 is a bit wider than we prefer.  More 
conservative traders might want to consider a trigger at $9.95 or 
$9.89 or something else that suits your style.  Let AMZN trade to 
your trigger first and then consider shorting the stock.  
Unfortunately, we were unable to identify when the company 
expects to announce earnings but we estimate it will be the third 
week of January.

Picked on December 21st at $10.00
Change since picked:        +0.00
Earnings Date                ----         





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

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

Actrade Fincl. Tech - ACRT - cls: 30.78 chg: -0.92 stop: 29.95 *new*

All right, which one of you aggressive traders ordered the dip in 
ACRT?  Yesterday, we wrote that more aggressive investors might 
look for a dip to $30.50 as a potential entry point to go long the 
stock.  Shares bounced there twice on Friday, which is great but 
only if the stock goes back up from here.  After trading sideways 
for several sessions only to fall lower heading into Christmas 
week is kind of frustrating.  We continue to urge caution and only 
nimble investors should try and target shoot new entries at this 
point.  There will be a lot less volume on Monday with the 
shortened session.  Plus with a lot of big investors home for the 
holidays we could see some volatility next week.  We're going to 
inch our stop up to $29.95 to reduce our current exposure.  

Picked on December 9th at $30.96
Change since picked:      - 0.18
Earnings Date              01/24 (confirmed)




---

XM Satellite Radio - XMSR - cls: 17.88 chg: +1.58 stop: 16.49 *new*

It looks like the answer to the question in Thursday's update was 
"positively".  Thursday night we wondered how investors might 
respond to news that XMSR was comfortable with estimates on the 
number of subscribers they might pick up before the end of the 
year (in just a few more days).  The stock gapped up at the open 
and traded most of the day above $17 with a midday dip to $16.76.  
Then, after having its XM Satellite radio product featured on 
CNBC, shares began to tick up in the last couple of hours, which 
turned into a buying spree towards the close.  This is the first 
close over the $17.50 resistance level set back in mid-May.  
Closing at the high for the day is also a bullish sign for 
Monday's session.  As you know, the new support level for XMSR is 
$16.30, at least it has been all week.  We're going to snug our 
stop to a more conservative $16.51.  This should allow us to 
protect a move of $3.45 or 26% while still allowing it some room 
to keep the rally going.  If you're looking for new positions, be 
careful.  Shares are pretty extended but it's possible that these 
last few sessions of sideways trading have appeased the appetite 
of profit takers enough to allow XMSR to make its next run up.  
Currently, the newsletter is up almost 40% in the play.

Picked on December 10th at 13.06
Change since picked:       +4.82
Earnings Date               N/A





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

Taiwan Semiconductor - TSM - cls: 16.20 chg: -0.81 stop: 16.51 *new*

Shares of TSM continue to slide despite a bounce in the SOX.  Not 
only have shares fallen an additional 4.76% but they are falling 
on rising volume.  Friday's volume was 9.3M, almost double the 
average.  The stock managed to find some support near $16 midday 
and was trying to bounce higher by the close but we're not sure it 
would get very far.  Recent news has uncovered investor's concern 
for TSM.  The company plans to issue up to 70M American Depository 
Receipts (ADRs) in the near future.  ADRs are a commonly used 
trading vehicle to allow investors to trade foreign stocks on 
American exchanges.  Details were not given but investors don't 
seem happy with the expected dilution in their stake of the 
company.  If you plan on doing some research, be careful what 
numbers you use for outstanding shares.  One ADR is equal to five 
common shares of TSM.  We found that one service reported TSM had 
3.37 billion shares outstanding yet another service quoted 16.8 
billion shares outstanding.  You can see that the first service 
was counting ADRs while the second was counting common shares.  
The 70M ADRs will equal 350 million new common shares, which is 
not that big of a chunk.  If I do my math correctly, TSM is 
looking at a 2% increase in outstanding shares.  At any rate, the 
stock looks decidedly bearish and the bounce in the SOX was 
expected.  In our original write up we discussed that short-term 
traders may want to consider exiting the play if TSM traded near 
15.50 to 15.30.  This is still a valid idea, especially with the 
50-dma at 15.18.  Position traders might aim for the 200-dma just 
north of $14 but you might need to use looser stops.  We're 
choosing to tighten our stop to a conservative $16.51.  If we get 
stopped out we should be able to close the play for better that 
5.5%.  Be aware that as an ADR the share price is prone to gapping 
up or down at the open and Monday's session is not likely to see a 
lot of volume considering the shortened trading day (Christmas 
Eve).  Currently, the newsletter is "up" about 7.4% in TSM.

Picked on December 19th at $17.50
Change since picked:        +1.30
Earnings Date               01/25 (confirmed)






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

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

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

Barr Labs - BRL - close: 77.99 change: +0.08 stop: 75.99

Company Description:
Barr Laboratories, Inc. is a specialty pharmaceutical company 
engaged in the development, manufacture and marketing of generic 
and proprietary pharmaceuticals.  (source: company press release)

Why We Like It:
Shares of BRL might turn out to be an effective long play if the 
stock can only break out above its current resistance level but 
more on that in a moment.  Has anyone else noticed that as the 
big blockbuster drug patents begin to expire that there seems to 
be a renewed increase in litigation between drug companies?  This 
last Monday, Merck & Co (MRK) is suing BRL (again) in their 
battle over a patented Fosamax osteoporosis treatment.  Shares of 
BRL barely yawned.  Unfortunately, while the DRG.X index has been 
in a six day rally, BRL remains stuck under resistance at $78.80 
or if you prefer its 100-dma currently at 78.46.  

We are choosing to play BRL as a long but only if it can trigger 
our entry price.  If BRL trades to $79.05 then we'll 
"officially" pick the stock as a long play.  Once that occurs 
we'll start with a stop at $75.99.  More conservative traders 
might be able to get away with a tighter stop under its 10-dma.  
The way BRL has been coiling tighter and tighter over the last 
couple of weeks makes us think the breakout is imminent.  
Unfortunately, even though the bias is for an upside move there 
is no guarantee.  In early December the company raised their 
earnings guidance for next year and if the market sees a downturn 
in January investors may choose to run for the relative safety of 
drugs stocks for the interim.  We would expect BRL to announce 
earnings in the third or fourth week of January.

Picked on December 21st at $xx.xx <-- see trigger
Change since picked:        +0.00
Earnings Date               10/23 (confirmed)





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

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

JC Penney - JCP - close: 25.39 change: +0.39 stop: 24.95 *new*

Aside from some first hour excitement and volume, shares of JCP 
spent the majority of Friday trading in a 25-cent range.  Retail 
stocks have been in the spotlight lately and why not?  This is the 
season to shop.  The retail index (RLX.X) has been up six days in 
a row after dipping to its 200-dma on Dec. 13th.  What's driving 
the gains?  Analysts have made new statements saying they believe 
this holiday season may not be as bad as everyone expected.  One 
Prudential analyst raised their rating on Gap (GPS) from a "sell" 
to a "hold".  This gave the apparel sector some life, which seemed 
to help most other retailers as well.  The RLX closed at 919 on 
Friday, which happens to be a level of very tough resistance.  
We'll either see the breakout next week or retail stocks could be 
in for some profit taking.  The bad news is the bulls might have 
buyer's remorse sooner then expected.  Many of those same analysts 
are worried.  Expectations were so low that even if retailers beat 
them they'll be hit by horrendous post-Christmas revenues.  That's 
right, if all the huge sales are barely enough to get people to 
part with their money now ahead of the holiday, what will 
retailers be forced to do next week and in January?  It doesn't 
sound very bullish does it?  Well, no one said the markets were 
logical.  The strong moves in the sector, not to mention the nice 
breakout in Wal-Mart (WMT) might be enough to get the RLX above 
its current resistance level.  This in turn might prolong any 
profit taking until January.  Yet even if this bullish RLX 
breakout comes to pass, we're going to raise our stop on JCP 
anyway.  At the moment, the newsletter is up 10% in the play.  
Fortunately, by adjusting our stop to $24.95 it should protect a 
gain of $1.87 or 8%.  Retail bulls will be hoping that the Merrill 
Lynch report we discussed on Thursday, about retailers 
historically out performing in the first quarter of the year, 
rings true in 2002.

Picked on December 13th at $23.08
Change since picked:        +2.31
Earnings Date               02/12 (unconfirmed)




---

SEI Investments - SEIC - cls: 44.10 chg: +0.55 stop: 41.99 

Interested to know how SEIC did on triple-witching Friday?  See 
Thursday.  Not good enough?  See Wednesday as well.  The stock has 
been trading in the same range for three days straight with a few 
minor adjustments on where it opens and closes.  Volume was a bit 
higher on Friday and it did close over $44 but we're not really 
interested in new positions until SEIC can close over $44.50 or 
better yet $45.00.  We strongly considered raising our stop due to 
SEIC's lagging performance but $42 remains price support.  
However, more risk-averse traders can try reducing their exposure 
by using the 15-dma (currently near 42.90) as a guide to place 
their stop.  The 15-dma has been a good level of support since 
Nov. 12th, 2001.  If we don't see a positive move soon we might 
drop the play for lack of performance.  Comments on Thursday for 
aggressive traders still apply.

Picked on December 15th at $43.41
Change since picked:        +0.69
Earnings Date               10/16 (unconfirmed)





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

S&P 500 Spiders - SPY - close: 114.95 change: +0.30 stop: 116.05 

Triple witching Friday is generally quite volatile but today's 
activity couldn't have been much smoother.  The SPY closed under 
the highs of the day but not by much.  The potential swings 
associated with an options expiration Friday were mitigated in 
today's trading.  Buyers stepped in mid-afternoon to take the 
market off its lows.  Upon further review, a couple of analysts 
in the office think we might be a bit early on a short for the 
SPY.  Next week could be up with the shortened week and the 
renewed positive sentiment.  It's January that is starting to 
concern us.  We would look for confirmation before starting any 
new plays, consider waiting for the SPY to trade under 114.00.  
Don't forget that the markets will close at 1:00 p.m. ET on 
Monday in observance of Christmas Eve, so volume is likely to be 
rather thin.

Picked on December 20th at  114.65
Gain since picked:           -0.30
Earnings Date                  N/A





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

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

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

Microcell Telecomm. - MICT - close: 2.10 change: +0.13 stop: 1.73

Company Description:
Microcell Telecommunications has been a public company since 
October 15, 1997, and is a member of the TSE 300, TSE 200 and 
S&P/TSE Canadian SmallCap indices. Microcell's head office is 
located in Montreal. The Company employs more than 2,100 people 
across Canada. (source: Company Press Release)

Why We Like It:
Simply put, we think the worst may be over for MICT.  The company 
recently had a successful "rights" offering and two of its 
biggest shareholders, VoiceStream and Telesystem Ltd exercised 
their rights to buy stock which should net the company enough 
capital to maintain its lead in the Canadian wireless market. 

MICT bottomed at 80 cents in October and produced a second higher 
low at $1.08 in late November.  Friday's close put the stock back 
above the $2.00 resistance level with decent volume confirming 
the move.  Bulls have an opportunity to try and catch any run 
between $2 and its recent highs near $2.75 in November.  If you 
prefer to target shoot an entry; look for bounces between $1.90 
and $2.00.  Be advised that small moves in the stock price can 
equal sizeable percentage gains or losses.

Picked on December 21st at $ 2.10
Change since picked:        +0.00
Earnings Date               11/12 (confirmed)





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

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

Mercator Software - MCTR - close: 7.95 change: +0.03 stop: 7.45

The mood on Wall Street may have been flavored with Christmas 
cheer but none of it translated into buying interest for MCTR.  
The stock traded within a 30-cent range all day long with a clear 
bounce off its 20-dma (7.70).  We're discouraged that the stock 
closed under the $8.00 level which doesn't give us confidence for 
next week.  We could be witnessing a lower volume pull back as 
trading activity for MCTR has been slipping as we approach 
Christmas.  We continue to urge caution and will amend our 
statement from Thursday.  Aggressive traders might want to 
consider entry points above the 20-dma and more risk-averse 
traders can probably wait for shares to close back over $8.50.  
The trend is starting to look a little bearish and we need to see 
some new conviction by the bulls before we fold up the yellow 
flag.  We would definitely confirm both stock and sector 
direction first before committing any capital.  The GSO.X did 
bounce higher on Friday but it failed at its 200-dma and could 
roll over.

Picked on December 11th at $ 7.68
Change since picked:        +0.27
Earnings Date               10/30




---

3-D Systems - TDSC - close: 14.14 change: +1.28 stop: 13.75 *new*

TDSC shot out of the gate this morning, gapping higher and adding 
to the impressive gains racked up on Wednesday and Thursday.  
Today's move pushed the stock above the 200-dma and, if you read 
Jeff Bailey's intra-day commentary from 1:00 p.m. you already 
know that we're leaning toward taking profits in the stock.  With 
average volume of only 60,000 shares (112,00 today), TDSC is 
certainly not the most liquid stock and our advice is to sell 
into the rally.  With that in mind, we're going to raise our stop 
to 13.75.  If you're a more aggressive trader and think that 
there could be in store for TDSC, consider placing your stop a 
few cents under the 200-dma around or about 13.63.  Currently, 
the newsletter is up about 22.7% in this play.

Picked on December 7th at $11.52
Change since picked:       +2.62
Earnings Date              10/17






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DISCLAIMER
=================================================================

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

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

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





PremierInvestor.net Newsletter         Weekend Edition 12-21-2001
                                                   Section 3 of 3
Copyright  2001, All rights reserved.
Redistribution in any form is strictly prohibited.

The entire newsletter is best viewed in COURIER 10 for alignment
=================================================================
To view this email newsletter in HTML format with imbedded
charts and graphs, click here:
http://www.PremierInvestor.net/htmlemail/101221_3.asp
=================================================================

In section three:

Market Watch for Week of December 24th
   - Major Earnings
   - Stock Splits
   - Economic Reports

Trading Ideas
  Value Plays With Bullish Signals
  Breakout to Upside (Stocks $5 to $20)
  Breakout to Upside (Stocks over $20)      
  Breakout to Downside (Stocks over $20)      

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


==================================================
Market Watch for the week of December 24th
==================================================

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

-- No Major Earnings This Week --



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

Upcoming Stock Splits This Week...

Symbol  Company Name          Splits  Payable    Executable
  
KIM     Kimco Realty         3:2     12/21      12/24
HRH     Hilb, Rogal & Ham... 2:1     12/31      01/02
AANB    Abigail Adams Banc   5:4     12/31      01/02
IRM     Iron Mountain        3:2     12/31      12/31


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

Christmas week tends to be an up week, historically for the
markets.  However, we have yet to really see any tax loss
selling this December but current market sentiment doesn't
seem to think it will show up and ruin the mood.  If anyone
is still paying attention during the holidays they'll probably
be watching the Consumer Confidence and Home Sales numbers
on Friday.


Monday, 12/24/01
----------------
None -- markets closed early (1/2 day) --


Tuesday, 12/25/01
-----------------
None -- markets closed --


Wednesday, 12/26/01
-------------------
None


Thursday, 12/27/01
------------------
Initial Claims       12/22  Forecast:    N/A  Previous:     N/A
Help Wanted Index      Nov  Forecast:    N/A  Previous:      46


Friday, 12/28/01
----------------
Durable Orders         Nov  Forecast:  -5.5%  Previous:   12.8%
Consumer Confidence    Dec  Forecast:   82.0  Previous:    82.2
Chicago PMI            Dec  Forecast:    N/A  Previous:    41.1
Existing Home Sales    Nov  Forecast:  5.10M  Previous:   5.17M
New Home Sales         Nov  Forecast:   868K  Previous:    880K




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

NVS     Novartis                   35.75     +0.68
GDW     Golden West Financial      57.77     +0.52
RSG     Republic Services Inc      20.35     +0.85
OI      Owens Illinois Inc          9.60     +0.60
FUN     Cedar Fair                 24.90     +1.13
FST     Forest Oil Corp            27.52     +0.97

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

SKS     Saks Holdings Inc          10.16     +1.28
STE     Steris Corp                18.74     +1.04
MANU    Manugistics Group Inc      19.47     +3.63
PZL     Penzoil Quaker State Co    15.00     +1.45
AMSY    American Mgmt Sys          19.27     +2.21
VRTY    Verity Inc                 19.56     +1.33

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

WMT     Wal-Mart                   57.57     +1.31
KO      Coca-Cola Co               48.78     +1.02
JNJ     Johnson & Johnson          59.71     +1.40
AHP     American Home Products     61.75     +1.44
FITB    Fifth Third Bancorp        62.43     +1.19
BUD     Anheuser-Busch Cos Inc     46.51     +1.61

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

LLY     Eli Lilly & Co             78.40     -1.63
VZ      Verizon Communications     47.15     -1.12
FBF     Fleetboston Financial Corp 36.51     -1.49
DOW     Dow Chemical Co            34.50     -1.40
AVP     Avon Products Inc          46.79     -1.21

----------------------------------------- 
Recently Overbought With Bearish Signals (Stocks over $20)
------------------------------------------- 
Ticker  Company Name               Close     Change 

YUM     Tricon Global              50.69     -0.51
EW      Edwards Life Sciences      27.44     -0.11
RGIS    Regis Corp                 25.05     -1.60
PDX     Pediatrix Medical          33.45     -3.55
KSWS    K-Swiss Inc                33.75     -0.40



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