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Daily Newsletter, Friday, 12/28/2001

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PremierInvestor.net Newsletter          Weekend Edition 12-28-2001
                                                    section 1 of 3
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In section one:

Market Wrap:      Stocks ready to ring in New Year on positive note
Play-of-the-Day:  Habla Español?
Watch List:       ACF, VRTS, EMLX, DIGL, CVC and more!
Market Sentiment: Week ends with a whimper.

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U.S. Market Numbers
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MARKET WRAP  (view in courier font for table alignment)
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       WE 12-28         WE 12-21         WE 12-14         WE 12-07 
DOW    10136.99 +101.65 10035.34 +224.19  9811.15 -238.31  +197.90
Nasdaq  1987.26 + 41.92  1945.83 -  7.34  1953.17 - 68.09  + 90.68
S&P-100  591.75 +  5.34   586.41 + 14.03   572.38 - 19.40  +  6.98
S&P-500 1161.02 + 16.13  1144.89 + 21.82  1123.07 - 35.24  + 18.96
W5000  10818.57 +173.64 10644.93 +201.37 10443.56 -301.81  +213.92
RUT      493.62 +  9.60   484.02 + 12.73   471.29 -  9.92  + 20.43
TRAN    2643.05 + 37.82  2605.23 + 28.13  2577.10 - 51.16  +116.48
VIX       22.33 -   .96    23.29 -  2.68    25.97 +  1.08  -  1.25
VXN       45.94 -  5.02    50.96 -  1.83    52.79 +  2.61  +  1.73
TRIN        .73             1.08             1.06             1.18
TICK      +1098            +1184             +388             +828
Put/Call    .69              .69              .72              .78
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WE= week ended

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

Stocks ready to ring in New Year on positive note

Today's trading closed out a bullish week for stocks and should 
leave investors with a rather bullish taste in their mouth 
heading into the New Year.  Consumer sentiment has sure improved 
in the recent month as indicated by today's stronger than 
expected consumer sentiment reading (91.5 from 77.3 in November) 
that caught many off guard, but that bullish sentiment may have 
been capped by the labor market that showed Americans continue to 
lose jobs in the recent month, but not at the rate many 
economists had thought.

January can be a negative month for jobless claims as many 
corporations bite the bullet for an extra month and try not to 
lay employees off before the Christmas holiday, waiting instead 
for the holiday season to pass and then making further job cuts.  
Many economists think that today's initial jobless claims number 
of 392,000 (rising by 7,000) for the week ending December 22nd 
may not necessarily be the short-term trend extending into 
January.  The four-week moving average, considered a better read 
of the current labor market because it smoothes out weekly 
anomalies, fell by more than 25,000 to 413,250.  While the 
392,000 initial jobless claims is still a weak number, it is a 
vast improvement from October's reporting period that showed an 
initial jobless claims at 535,000.

Probably the most cautious economic data released today was from 
the Chicago Purchasing Managers index, a measure of regional 
factory activity, and the fractional rise in December to 41.4 
from the 41.1 reading in November.  A reading below 50 is 
indicative of a still slowing economy and signals a contracting 
manufacturing economy, while a reading above 50 indicates 
expansion.  December's PMI is the 15th consecutive month for 
contraction.  The prices paid component of the index rose to 46.8 
from 40.1 in November, while the employment component fell to 
31.0 in December from 37.2 in November.  That national snapshot 
on manufacturing, the closely watched NAPM report, will be 
released on Wednesday of next week at 10:00 AM EST.  Economists 
are looking for a reading of 45.8, which is higher than 
November's reading of 44.5.

Traders and investors should remain relatively cautious near-
term.  While some of the economic data has been improving in 
recent months, it too soon to tell if the economy is truly 
recovering or if we're just getting a bounce after the beating 
experienced in the September period.

Let's check some of the weekly action and put some things to the 
test and see what the markets may be thinking and putting money 
to work or rotating out of.

Weekly performance




We may have hit the proverbial nail on the head in last Friday's 
wrap "Energy stocks look interesting."  While the Oil Service 
Index (OSX.X) and Natural Gas Index (XNG.X) weren't the biggest 
gainers this week, they sure gave the high flying and volatile 
Fiber Optic Index (FOP.X) a run for their money.  Since fiber 
optics are closely tied with networking equipment, it also makes 
some sense that the Networking Index (NWX.X) showed a nice bounce 
back this week with a 4.2% gain.

My analysis regarding the energy sectors is this.  In the past 
couple of weeks, I've been talking about three stocks in the 
sector.  Form the oil service side I liked BJ Services (NYSE:BJS) 
near the $30 as the stock had been acting bullish at a rounding 
200-day MA and we were seeing some spikes in volume that 
indicated some interest.  Today's close on BJS was $32.97 and the 
stock did trade as high as $34 on Wednesday.  To tell the truth, 
I'm more bullish on names in the energy producing area like 
Apache Corp. (NYSE:APA) and Amerada Hess (NYSE:AHC).  My thinking 
here is that the producers stand to benefit more on a near-term 
basis from a higher commodity situation (brought on by continued 
OPEC production cuts) than that the service side of the business.  
For a TRADER, I'd be more apt to trade out of some 10% gains in 
the service sector when I get them, but an INVESTOR with a 
longer-term look can nip away at some service stocks when they 
pull back to support.  Apache Corporation (NYSE:APA) is a stock 
that I consider to be a technically strong stock, while Amerada 
Hess (NYSE:AHC) is a stock I would characterize as a "playing 
catch up" where the technicals are improving and the stock has 
room to move.

Comparison of APA and BJS - Looking for similarity




There are so many things to point out, but we've discussed many 
of the different patterns and powerful demand characteristics of 
these two stocks.  One thing I don't believe I pointed out that 
is worth noting is that "first sell signal in upward trend" that 
we've talked about in the past (pink circle).  Doesn't that look 
like a "major duping" that the specialist put on bulls that may 
have been holding the stock?  The specialist lets the stock fall, 
give the sell signal, shake out the weak holders then "bloop!"  
Take her higher and break hear out?  This is something we've told 
traders/investors to be looking for when a stocks/sector looks to 
be gaining some strength.  Do you also remember how BJS was the 
first "energy related" stock we talked about at $30?  The stock 
moved up to $32, then pulled right back into the triple-top, but 
that's right where bulls were waiting and where bears were 
waiting to buy back their shorts when the stock proved in could 
get through bearish resistance.  That move in BJS was simply a 
good point to be looking for good demand for the stock.  Should 
BJS pull back to $30 again, look for an entry there.

Now, since BJS was the first stock and we started having success, 
we decided it made too much sense to look at a oil/gas producer.  
Heck, if the "services" business was going to pick up, then our 
thinking is that the producers have to be doing good at some 
point.  That's what led us to Apache (APA).  The above chart now 
reflects Thursday's split.  There were a lot of things we liked 
about APA's chart.  Stock was trading above upward trend (bullish 
support) and just gave a double-top buy signal.  As we looked at 
the chart, we saw what appeared to be a potential "reverse head 
and shoulders pattern!"  This week, shares of APA did break the 
neckline at $50!

Now.... here's an interesting "trick."  Remember how we talked 
about the calculation of projecting price from the reverse head 
and shoulders pattern (see last Friday's wrap.)  We calculated a 
price objective close to $68 (pre-split).  Post-split, I'm going 
to use a neckline of $49 and head of $36 to calculate a "reverse 
head and shoulders" price objective of $72.  Now!  Here's a 
trick.  That vertical count technique we've taught you based on 
the point and figure chart.  Right now, APA is still building the 
column of "X" (demand, up) for the vertical count column.  Once 
we get the 3-box reversal into "O" (supply, down) our vertical 
count column will be completed.  

Here's the "trick."  If the bullish price objective from the 
vertical count is to be fairly close to the price objective from 
the "reverse head and shoulders" where should we see a 3-box 
reversal?  My guess is $51 or $52.  Are you following me here?  
Let's say APA does pull back 3-boxes to $48.  That would have us 
calculating our vertical count column of X from $43-$51, equaling 
9 X's.  Our equation for the vertical count is then ((9*3)*1)+43 
= $71.  That's pretty darned close to that "reverse head and 
shoulders" objective we calculated last Friday!

Do you also see some "domino" action at work here?  BJS was the 
first stock we identified with an "energy flavor" that was 
bullish.  We dip our toe in the water, if we find success, we 
learn from it, then look to repeat.  Then we find APA and some 
technicals that support some of what we witnessed in BJS.  Boom!  
Success again.  Now, we witnessed a pullback in BJS after profile 
at $30, I'd expect something similar in APA at some point.

Strategies:  In last Friday's wrap, we talked about how to 
incorporate two type of trading strategies.  One was to establish 
1/2 position in the right shoulder, then add on the neckline with 
another 1/2.  The next was to simply wait for a break of the 
neckline.  Find a strategy you're comfortable with and use it.

Amerada Hess Corporation - 




Shares of Amerada Hess (NYSE:AHC) is a stock I classify as a 
"laggard" and not nearly as technically strong as what we see in 
"like stock" Apache.  The reason I say this is that the stock is 
trading BELOW bearish resistance.  But you can still see some of 
the similarities here that we find in APA.  I've talked about 
monitoring stocks at the "head of the snake" and those at the 
"tail of the snake" as it relates to a sector or index.  APA is 
at the tail end of things here.  As things unfold, we can get a 
better grasp on things going forward.  For example... if APA is 
pulling back, but AHC is moving forward, we get that "inchworm" 
affect, where the "inchworm" is perhaps getting ready for an 
expansion move higher.  If both pull back at the same time, then 
we monitor each for signs of stability after the pullback and 
expect the stronger stock (APA) to move forward first.  A trader 
that plays a move higher in APA after a pullback and finds 
success, then looks for a move higher in the "laggard" stock and 
plays that move higher too.

Networking Index - 

This may be the bullish play next week.  It could be tricky, so 
my trading strategy would be to start out light, then add if we 
find success.  I like the action this week.  In the prior two 
weeks, we saw a nice pullback in the sector.  Cisco Systems 
(NASDAQ:CSCO) is the "networking index" and this is the stock I'd 
focus on.  Cisco traded a high of $21.91 in the recent rally and 
the stock has pulled back to the $18 level.  I now have an upside 
target to be shooting for.

The reason I think a trader wants to start out light is this.  
Next week, we may see a couple of days of "tax loss selling."  
Yes, "tax loss selling."  An investor that simply took too many 
losses this past year and didn't want to take any more may wait 
until the very first part of 2002 to take a loss, then try and 
lay out a plan to make back that loss by end of 2002.

The reason I'm also thinking this is that last year, I profiled 
two "networking" stocks in Foundry Networks (NASDAQ:FDRY) and 
Redback Networks (NASDAQ:RBAK).  Both acted very much the same 
and traders should have been stopped out, and perhaps traded 
several days later, once the bounce had begun.  I point this out 
now so traders looking for a "tax loss selling" bounce know what 
to be looking for.

Redback Networks Chart - January 2001 time period




As I review this trade from last year, I should never have 
profiled it for a tax-loss bounce.  While the stock was down from 
a yearly high of $180, the $40 price wasn't all that attractive.  
I think what happened was that some "losses" were taken on 
January 2nd and that's what stopped traders out on the break 
below $37 (break to a new low).  Be cognizant of last year's 
action in a trade on Cisco (NASDAQ:CSCO) next week.  A trader 
that went "gung ho" on January 2nd at the open in shares of RBAK 
at $41.68 was less than pleased by the end of the session.  I put 
a retracement bracket on the stock of RBAK to show you how much 
"heat" a trader would have needed to take to actually stay in the 
trade before the bounce was experienced.  There's no way I would 
take heat (downside) from $41.68 to $27.46 (34%) to hold on for a 
rally to $50.  I will also note that last year, the first trading 
day of the year, the NASDAQ fell to a new relative low from 
December 29 close of 2,465 to 2,273 (-8.4%) "tax-loss selling?" 
then bounced the next day (January 3rd) from an open of 2,251 to 
2,618 (+16%).  Just because this happened last year doesn't mean 
it will happen this year, but both years (this year and last 
year) are very similar.  Both are being started after some steep 
declines and losses in the previous 12-months.

Current play list

Our current play list is rather "thin" right now.  This is due to 
many of the reasons mentioned in the previous paragraph.

We're never sure what type of "trader/investor" is taking some of 
the trades in the current play list.  A more active trader that 
is watching the market on a minute-by-minute basis can still be 
initiating new positions on Monday and Tuesday as long as they 
are able to watch them closely and be able to manage his/her risk 
with some tight stops.

I think a trader/investor that tries to buy or short a stock on 
Monday or Tuesday and walk away from their trading station for 
several hours or days should maybe wait a couple of days into the 
New Year.  I think there is a "high odds" chance we're going to 
see some volatility early next week.  There was a lot of economic 
data dumped on the market today, and a lot of traders were away 
on vacation.

I'd feel more "comfortable" trading 1,2 and 3-lettered stocks on 
Monday or Wednesday that are listed on the New York Stock 
Exchange.  These stocks are less likely to me "manipulated" 
around due to tax selling.  If a NASDAQ market maker gets wind of 
a big sell order for a stock, he/she isn't going to set a firm 
bid if they are the buyer for that order.  They are more apt to 
let a bid fall to a lower level, take the stock from the seller 
at that lower level into their inventory, and then try and work 
the stock higher from there, dishing out smaller blocks to some 
of their institutional clients.  I think that is part of what 
happened in Redback (RBAK) last year.

A more active trader that is perhaps playing some of the stock 
mentioned in the "High Risk/Reward" section can do some trading 
on Monday and Wednesday.  What we're going to plan on doing 
Monday and Wednesday is set up some trades there where we have an 
action point in place for the trade and a tight stop where we can 
really control any downside risk.

A more active and experienced trader is willing to lose on one or 
two trades and take some small losses as a good trader knows that 
he/she is going to hit a winner.

Last year I profiled three stocks for tax-loss bounced.  Redback 
Networks (NASDAQ:RBAK), Foundry Networks (NASDAQ:FDRY) and 
WorldCom (NASDAQ:WCOM).  A trade that set a 10% stop on RBAK and 
FDRY (two losers) and let his/her WCOM move ended up with a 
profit.  WorldCom (WCOM) hit our bullish target of $20 (from 
$14.75) in the first two days of trading.  WorldCom was trading 
$23 (+53%) 12 days into the New Year!

If you want to try trading some "tax-loss bounce" candidates, 
think about doing it with call options.  Everyone think an option 
is risky, but it isn't if you think about it the CORRECT WAY!

I'll will ask you this.  If you take one of our trades and buy 
100 shares of a $20 stock and set your stop at $18 and get 
stopped out, what is your loss?  $200 + commissions right?

Now, what if you buy one $2 call option that gives you control of 
100 shares for 30-days.  What is the most you can lose?  The most 
you can lose is $200 ($2 time 100 shares per contract).

I think the BEST way a trader can play the "tax loss bounce" 
phenomena is to do it with stock options.  Why?  Take Redback 
(RBAK) as an example.  If a trader had bought the January $50 
calls, thinking he could get a bounce to $60 and make some good 
money, he/she may have said... look, I'd be willing to risk $400 
(10% of $40 times 100 shares) so I'll put that "risk" capital 
into an option.  When RBAK did drop all the way down to $28, the 
most you were down was the $400 you put into the option.  You 
were willing to take that if you initiated the trade.

When RBAK traded $28 I would have been saying.... "Look, if this 
thing ever gets profitable I'm going to sell it as the stock has 
done MUCH WORSE than I thought it would have."  As the stock 
recovered from $28 to $44, that's it, I'm out of here!  

A trader that still thought the stock might bounce higher and was 
still willing to risk the $400 may have done so.  When the stock 
traded $50 or $55 they could have pulled the plug.  

At certain times I like to trade options.  "Tax loss bounces" is 
one of those times.  For the most part, I'm a stock guy.  I'm not 
ashamed to admit it, but the volatility that can come early in a 
year due to tax strategies, the option allows me to limit my 
capital exposure and still provide me the opportunity to profit 
from a sharp and sudden shift in supply and demand.  Even though 
I do a lot of writing and commentary for an options newsletter I 
prefer to trade stock and not pay premiums that we have to in the 
options market.  But when I may need to "buy some time" to gain 
from the volatility and wait for the shift in supply and demand, 
I don't mind paying the option premium.

Once we get a day or two under our belts in January and get a 
better feel for what type of tax issue selling is being done the 
play list will begin to grow.  Right now, we just don't want 
subscribers to think that they have to trade.

We want everyone to get off to a good start in 2002.  I've been 
keeping a tally of all the trades we've profiled this month and 
subscribers should be doing pretty good.  Our biggest loser this 
month has been a long play in TranSwitch (NASDAQ:TXCC) from 
12/12/01 and our biggest winner has been XM Satellite Radio 
(NASDAQ:XMSR) from 12/09/01.  We don't "count" trades I may talk 
about in our intra-day commentary, unless these trades were 
profiled in one of the play lists.

We're still trying to get a "play list" set up for the "High 
Risk/Return" portion of the site.  When we do, it will be much 
easier to keep track of all the profiled trades you find in the 
"Strategies" section.

I will be out of town on Monday, but back in the office on 
Wednesday.  Eric Utley will be filling in for me.

Happy New Year!

Jeff Bailey
Senior Market Technician


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

Univision - UVN - close: 40.89 change: +0.59 stop: 37.99

Company Description:
Univision Communications Inc., the leading Spanish-language 
television broadcast company in the United States, reaches 95 
percent of U.S. Hispanic households through its owned-and-
operated stations, 32 broadcast affiliates and 1,103 cable 
affiliates nationwide. The Company's operations include Univision 
Network, the most-watched Spanish-language television network in 
the U.S.; Univision Television Group, which owns and operates 12 
full-power and 7 low-power television stations, including full-
power stations in 11 of the top 15 U.S. Hispanic markets; 
Galavision, the Country's leading Spanish-language cable network, 
Univision Online, the premier Internet company in the U.S. 
Hispanic market reaching 80% of the nation's Spanish-speaking 
online audience at www.univision.com; the Univision Music Group, 
which includes a 50% interest in one of the leading Mexican music 
publishing and recording company Disa Records; and Telefutura, a 
new Spanish-language network scheduled to launch in January 2002. 
(Source: company press release)

Why We Like It:
A couple of key strategic alliances with the likes of AOL and 
Grupo Televisa (NYSE:TV) have spurred shares of UVN upward and 
onward while many stocks have languished during this last week of 
2001.  Actually, UVN has been trying to get through price 
resistance at $40 since early December and Friday's close helps 
confirm the breakout on Thursday.  Combine the media buzz around 
Comcast and AT&T's cable deal and UVN might be viewed as a 
potential takeover target, especially when you consider the 
growing U.S. Hispanic market.  It is hard to anticipate how the 
markets will react on the last day of 2001 this Monday as well as 
what investors will do the first day of 2002.  There could be 
last ditch selling on Monday or investors could try and beat any 
January buying pressure.  Thus, we are going to start this UVN 
play with a stop at $37.99, which is hopefully enough room to 
withstand any year-end volatility.  Honestly, any bounces at the 
$40 level look like a potential entry point for new long 
positions just confirm market direction first.  We don't have an 
earnings date for 1Q 2002 yet but we suspect UVN will announce in 
early February.  Our initial target is $45 but we'll adjust that 
as the play progresses.

Picked on December 28th at $40.89 
Change since picked:        +0.00
Earnings Date            11/06/01 (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
---------------------------------

Americredit Corp. - ACF - close: 32.00 change: +0.87

WHAT TO WATCH: We really like the action in ACF.  The stock has 
produced a great comeback from its November lows and continues to 
breakthrough resistance levels in a very methodical ascent.  
Friday put the shares right at its 100-dma but we don't think it 
will be able to hold the bulls back.  The point-and-figure chart 
shows resistance near $37, which would coincide with the highs 
back in October.  A dip to $30 might be a good entry.  Be aware 
that ACF is supposed to announce earnings on Jan. 10th, 2002.




---

VERITAS Software - VRTS - close: 46.45 change: +0.00

WHAT TO WATCH: Shares of VRTS remained unchanged on Friday after 
the stock broke through its 200-dma in Thursday's session.  The 
GSO.X software index followed suit on Friday with its own close 
over its 200-dma.  These are positive developments for the bulls 
but we're just not quite convinced yet this is an entry point.  
More aggressive traders may want to take a stab at it.  VRTS 
might be able to hold support at $45.50 but the better entry 
would be a bounce off $45 or $44 (the key word there is bounce).  
Wall Street expects VRTS to announce earnings on Jan. 29th, 2002.




---

Emulex Corp - EMLX - close: 40.48 change: -1.93

WHAT TO WATCH: Shrugging off a recent downgrade, shares of EMLX 
have been a real winner for technology players this fall.  We 
seriously considered adding it as a high risk/high reward play 
for the weekend letter and may regret that we didn't come next 
week.  The stock recently broke through price resistance at $40 
and Friday's pull back to $40 looks like a great entry point.  
The point-and-figure chart confirms the move with a triple-top 
breakout at the $40 level.  The market expects EMLX to announce 
earnings on January 22nd, 2002.




---

Digital Lightwave - DIGL - close: 9.84 change: +0.76

WHAT TO WATCH: DIGL is another networking play that has produced 
a nice rebound for the bulls during Christmas week.  Shares 
topped out at $12 in early December but gave into profit taking 
before finding support at $8.00 last week.  Interested traders 
might want to wait for DIGL to trade above $10, which could act 
as resistance.  You'll also want to watch out for the 100-dma at 
10.35.  However, if DIGL can conquer these obstacles it might 
have enough momentum to trade back to $12.  Earnings are expected 
on or near January 29th, 2002.




---

Cablevision Systems - CVC - close: 47.78 change: +1.04

WHAT TO WATCH: We had a new long play for CVC half written last 
night (Thursday) before thinking better of it and shelving the 
article.  The strong rebound and its plan to reduce staff, which 
always helps the bottom line, encouraged us to be bullish.  What 
made us pause was the $55M charge they would be taking in the 
process and we didn't know how the markets would react.  Would 
they sell the stock based on the charge and how it affects 
earnings?  Or will they buy the stock based on management's 
decision to reduce staff and lower expenses?  The answer was the 
latter.  Shares gapped up to $47.50, pulled back to $47.05 and 
took off again.  This may be an entry point to trade the stock to 
round number resistance at $50 and technical resistance at its 
200-dma (currently near $53.00).  The company is seen as a 
takeover target in a period of consolidation among cable 
operators.  Keep in mind that earnings are not expected until 
February 14th, 2002.





=============
MORE TO WATCH
=============
> Legend: (use of the word "rez" is an abbreviation for resistance)

! NOTE !
We have not checked the headlines or earnings dates for these
stocks below.  This is a quick scan of some stocks that looked
intriguing but didn't make the final cut to become plays.

Potential Bullish
-----------------
OMC  - look for a strong close over resistance at $90.
       MACD is turning positive.
AAPL - continuing the bounce off its 200-dma and closed over 
       resistance at $22.  Strong rez at $24.
CSCO - basing above its 200-dma.  look for close over $19 or
       consider high risk play now with stop at 17.74.
ECLP - recent pull back in the trend may be temporary profit taking.
       support at $16, could trade to $19.
ELN  - like the technical breakout over $45 and its 50-dma.
       would aim for $50 but expect rez at $47.50.
BBY  - one of the big winners of this holiday season.  look for
       breakout above $75.  Use caution, shares are expensive.
       Also watch shares of CC.
ENZ  - another technical breakout but approaching area of strong
       price congestion from summer.  strong volume is good.
N    - we would consider this stock as a play with a trigger to
       go long just over $17.  expect resistance at $18.
AGIL - recently highlighted on the watch list, shares reacted 
       bullishly on Friday and could trade to $20 soon.
AXP  - really like the breakout over $35 but 200-dma at 36.70.
WWCA - look for move over $30, aggressive traders can try now with
       tight stop.  Ultimate target would be $35 or 200-dma.
SMTC - like the bounce off support at $35 but concerned over sector.
LIN  - just broke through its 200-dma.  MACD turning positive.
KSS  - closed over resistance at $71 (again).  need confirmation.
SNPS - look for move over resistance at $60.  more at $62.50.
ITWO - just broke out above major resistance at $7.50.  High risk
       traders only.

Potential Bearish
-----------------
RVDP - stuck in a terrible downtrend.  10-dma potential rez.
       if traded, use a tight stop.  we would target $14.
TRW  - failing quickly with little respite.  lost its 50 & 200-dmas.
TARO - rolling over again.  look for possible move to $35 (200-dma).
NEOG - about to breakdown below support at $18, would target $16.
BSX  - look for close below $24.



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

Week ends with a whimper.
by Russ Moore

A full course of positive economic news wasn’t enough to get 
investors to the table, leaving the markets with only fractional 
gains on anemic volume.

The DOW added +0.1 percent while the NASDAQ tacked on +0.5 
percent and the NDX +0.9 percent. Volume remained light with 899 
million shares trading on the NYSE and 1.33 billion on the tech 
index. Winners held the upper hand by a 20/11 margin on the big 
board and 21/16 on the NASDAQ.

Biotech, airline, oil, and brokerage sectors led the broader 
markets while chips, Internet, and software took the lead for the 
techs. Gold and consumer sectors were both weak on the session.

The economic menu featured a consumer confidence number of 93.7, 
up from 84.9 and far better than the 82.7 expected. The housing 
market continued to show strength with new home sales rising +6.4 
percent and existing home sales increasing +0.6 percent. November 
durable goods orders slipped -4.8 percent while the Chicago 
Purchasing Managers Index was flat at 41.4. The volatile weekly 
jobless claims were up +7,000 to 392,000.

The consumer confidence number has to be viewed as a positive 
going forward however; the increased confidence doesn’t seem to 
be showing up in the equity inflows. Trim Tabs notes that “equity 
funds have outflows in three of the last four days. By 
comparison, over the two weeks ending January 4 last year, equity 
funds got a 20 billion dollar inflow”. In addition, a lack of 
buyback announcements and cash takeovers by the corporate sector 
has the fund flow tracker remaining bearish on the markets.

Over the next couple of weeks, investor confidence is likely to 
face a tough challenge in the form of profit warnings. Market 
participants will have to weigh improving economic data against 
disappointment on the earnings front. A January rally may be put 
on hold.


Friday 12/28 close: 22.50


VXN
Friday 12/28 close: 45.76


30-yr Bonds
Friday 12/28 close: 5.54


Total Put/Call Ratio: .69


Equity Option Put/Call Ratio: .59


Index Option Put/Call Ratio: 2.68


===

NASDAQ 100 Index (NDX/QQQ)
52-Week High: 103.51
52-Week Low:   28.19
Current close: 40.33

Volume/Open Interest
Maximum calls: 40/121,793
Maximum puts : 40/ 89,249

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: 591.75

Volume/Open Interest
Maximum calls: 590/4,463
Maximum puts : 520/4,877
Moving Averages
 10 DMA  584
 20 DMA  584
 50 DMA  577
200 DMA  599

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: 1161.00

Volume / Open Interest
Maximum calls: 1150/38,123
Maximum puts : 1150/31,598
Moving Averages
 10 DMA 1144
 20 DMA 1144
 50 DMA 1125
200 DMA 1167

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: 10,136.99

Volume / Open Interest
Maximum Calls: 100/13,902
Maximum Puts   100/28,050

Moving Averages:
 10 DMA 10,018
 20 DMA  9,971
 50 DMA  9,732
200 DMA 10,092

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: 602.30

Volume / Open Interest
Maximum Calls: 650/  231
Maximum Puts:  580/2,281

Moving Averages
 10 DMA 585
 20 DMA 586
 50 DMA 574
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: 528.79

Volume / Open Interest
Maximum Calls: 440/1,326
Maximum Puts:  500/2,297

Moving Averages
 10 DMA 535
 20 DMA 545
 50 DMA 514
200 DMA 555

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: 385.25

Volume / Open Interest
Maximum Calls: 400/525
Maximum Puts:  360/305

Moving Averages
 10 DMA 382
 20 DMA 386
 50 DMA 391
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, 12/28. 
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 
12/11/01     367,397   429,640   (62,243)    2.6%
12/18/01     391,995   456,968   (64,973)    4.3%
12/25/01     412,581   471,239   (58,658)   (9.7%)

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
12/11/01       158,490    86,717    71,773    (1.4%)
12/18/01       158,300    80,507    77,793     8.4%
12/05/01       152,521    79,444    73,077    (6.1%)

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 
12/11/01      45,468    51,392    (5,924)  (35.9%)
12/18/01      55,276    58,433    (3,157)  (46.7%)
12/25/01      55,250    47,476     7,774   
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
12/11/01       12,425    11,754      671     (81.0%)
12/18/01       17,649    18,626     (977)   
12/25/01       15,810    25,687   (9,877)

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 
12/11/01      23,135    12,576   10,559     (1.7%)
12/18/01      21,919    13,810    8,109    (23.2%)
12/25/01      15,492     7,335    8,157       .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
12/11/01       3,469     9,065    (5,596)     (8.6%)
12/18/01       6,790    10,943    (4,153)    (25.8%)
12/25/01       4,293     9,086    (4,793)     15.4%
 
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        +73,077     +77,793        -58,658     -64,973

Total Open
Interest %       (+31.50%)  (+32.58%)      (-6.64%)   (-7.65%)
                 net-long   net-long       net-short  net-short


                     Small Specs             Commercials
DJIA futures     (Current) (Previous)    (Current) (Previous)
Open Interest
Net Value          -4,793     -4,153          +8,157    8,109
Total Open
interest %       (-35.82%)    (-23.42%)      (+35.73%)  (+22.70)
                 net-short   net-short     net-long    net-long


                     Small Spec              Commercials
NASDAQ 100      (Current) (Previous)    (Current) (Previous)
Open Interest
Net Value         -9877      -977         +7,774    -3,157

Total Open
Interest %        (-23.80%)   (-2.69%)     (+7.49%) (-2.78%)
                 net-short   net-short      net-long net-short


What COT Data Tells Us
----------------------
Indices:.We’ve seen a major move by the Commercial players on the 
NASDAQ 100 this week. The Commercials have gone net-long while 
the Small Specs added to their net-shorts. This would seem to be 
a bullish move for the tech side however, we still see the 
Commercials holding their net-short positions on the SPX, the 
favored vehicle, and usually a better barometer of overall 
Commercial sentiment.

Gold: No significant changes this week.

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
12/25 11,976 contracts net-short

Data compiled as of Tuesday 12/25 by the CFTC.



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PremierInvestor.net Newsletter          Weekend Edition 12-28-2001
                                                    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
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In section two:

Net Bulls
  New Bullish Plays:     CEPH, SFA
  Bullish Play Updates:  ITRI

Stock Bottom / Active Trader
  New Bullish Plays:     CBRL, UVN
  Bullish Play Updates:  BRL, BGP, JCP, SEIC

High Risk/Reward
  New Bullish Plays:     IMNY, INKT

Split Trader
  - none -


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

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

  ----------------
  New Bullish Play
  ----------------

Cephalon, Inc - CEPH - close: 77.58 change: +2.16 stop: 73.85

Company Description:
Cephalon, Inc., headquartered in West Chester, Pennsylvania, is 
an international biopharmaceutical company that discovers, 
develops and markets products to treat neurological and sleep 
disorders, cancer and pain. The company currently markets its 
three proprietary products in the United States and nine products 
internationally. Cephalon develops innovative products for the 
treatment of neurological diseases and cancer through 
identification of novel compounds that affect both cell survival 
and death. (source: Company Press Release)

Why We Like It:
With the biotech sector making a comeback we think playing one of 
the stocks leading the way might be worth while.  The biotech 
index (BTK.X) added almost 11 points to close at 602 on Friday.  
This put the index back over psychological resistance of 600 and 
within rally distance of the recent highs near 625.  CEPH has 
also enjoyed a strong two-week comeback but its stock price has 
broken to a new 52-week high.  Due to the steady ascent of its 
latest move, bullish plays in CEPH carry a bit more risk but the 
action on Thursday and Friday makes us believe it might be able 
to overcome any near-term profit taking.  The $74 level had been 
resistance for some time.  CEPH was able to overcome this area 
late last week (12/21/01) and confirmed the breakout.  The brief 
pull back on Thursday was met with buying support near $75 and 
the momentum carried through into Friday.  We are going to try 
and limit our risk by placing the initial stop under $74, the 
previous resistance level.  More conservative traders might try 
Thursday's or Friday's lows while more aggressive traders might 
use $70.  The point-and-figure chart is showing a bullish price 
objective near $104 but then that is a long-term target.  Keep an 
eye on the BTK.X.

Picked on December 28th at $77.58
Change since picked:        +0.00
Earnings Date            02/05/02 (unconfirmed)




---

Scientific Atlanta - SFA - close: 24.73 change: +0.78 stop: 22.74

Company Description:
Scientific-Atlanta, Inc. is a leading supplier of digital content 
distribution systems, transmission networks for broadband access 
to the home, digital interactive set-tops and subscriber systems 
designed for video, high speed Internet and voice over IP (VoIP) 
networks, and worldwide customer service and support. 
(source: Company Press Release)

Why We Like It:
This time we're betting against Lehman Brothers.  Lehman's 
analyst, while offering positive comments about the company, 
believed that SFA was looking at a challenging business 
environment with declining capital spending by cable operators 
and flat digital subscriber growth.  Of course these comments 
were released on Dec. 19th, the same day shares of SFA bottomed 
at $20.60 and they haven't looked back yet.  We actually think 
that SFA might do well with their set-top boxes in this new 
cocooning environment that has Americans spending more money and 
more time at home.  Conservative traders may want to wait for 
shares of SFA to actually trade back above price resistance at 
$25 but we think the stock might be able to rally back to the $29 
- $30 level.  The MACD is turning around is about to turn 
positive.  We're going to start the play with a stop at $22.74 
but traders can probably get by with tighter stops if they 
confirm the stock direction first.  Don't forget that SFA will 
likely report earnings in three weeks.

Picked on December 28th at $24.73
Change since picked:        +0.00
Earnings Date            01/17/02 (unconfirmed)





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

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

Itron Inc - ITRI - close: 32.00 change: +1.20 stop: 28.79

Our new tech play and play of the day for Friday performed well 
heading into the weekend.  Shares of ITRI started off the day 
very strong and traded to $33.25 or +7.9% before pulling back to 
the $32 level for the afternoon.  The back to back $1.20 gains is 
starting to turn the MACD around.  Traders who prefer to buy on 
the dip may still keep an eye out for any bounce near $31 or $30 
but shares may choose to use the $32 area as new support.  
Confirm stock and market direction before playing.

Picked on December 27th at $30.80
Change since picked:        +1.20
Earnings Date            02/06/02 (unconfirmed)






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

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

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

CBRL Group Inc - CBRL - close: 30.46 change: +0.60 stop: 28.99

Company Description:
Headquartered in Lebanon, Tennessee, CBRL Group, Inc. currently 
operates 441 Cracker Barrel Old Country Store restaurants and 
gift shops located in 40 states and 81 Logan's Roadhouse company-
operated and ten franchised restaurants located in 16 states. 
(Source: company press release)

Why We Like It:
Allegations about racial discrimination appear to have had little 
affect on CBRL's stock price.  Investors may be listening to 
company management's reprisal to these claims of 21 customers out 
of the 180 million meals CBRL will have served this year.  While 
investors may be turning a deaf ear to any lawsuit they are happy 
to hear that CBRL claims the mild winter should boost sales.  The 
stock has been building a bullish wedge for most of December and 
Friday's close finally put it convincingly over the $30 
resistance level.  Aggressive traders with a longer time frame 
might want to consider a stop under $28.  Very conservative 
traders may only be willing to risk a $1.  We're going to play 
our stop between the two at $28.99.  Confirm stock direction on 
Monday or Tuesday before committing any capital.  FYI, we don't 
have a 1Q earnings date yet but we suspect CBRL will announce in 
late February.

Picked on December 28th at $30.46 
Change since picked:        +0.00
Earnings Date            11/21/01 (confirmed)




---

Univision - UVN - close: 40.89 change: +0.59 stop: 37.99

Company Description:
Univision Communications Inc., the leading Spanish-language 
television broadcast company in the United States, reaches 95 
percent of U.S. Hispanic households through its owned-and-
operated stations, 32 broadcast affiliates and 1,103 cable 
affiliates nationwide. The Company's operations include Univision 
Network, the most-watched Spanish-language television network in 
the U.S.; Univision Television Group, which owns and operates 12 
full-power and 7 low-power television stations, including full-
power stations in 11 of the top 15 U.S. Hispanic markets; 
Galavision, the Country's leading Spanish-language cable network, 
Univision Online, the premier Internet company in the U.S. 
Hispanic market reaching 80% of the nation's Spanish-speaking 
online audience at www.univision.com; the Univision Music Group, 
which includes a 50% interest in one of the leading Mexican music 
publishing and recording company Disa Records; and Telefutura, a 
new Spanish-language network scheduled to launch in January 2002. 
(Source: company press release)

Why We Like It:
A couple of key strategic alliances with the likes of AOL and 
Grupo Televisa (NYSE:TV) have spurred shares of UVN upward and 
onward while many stocks have languished during this last week of 
2001.  Actually, UVN has been trying to get through price 
resistance at $40 since early December and Friday's close helps 
confirm the breakout on Thursday.  Combine the media buzz around 
Comcast and AT&T's cable deal and UVN might be viewed as a 
potential takeover target, especially when you consider the 
growing U.S. Hispanic market.  It is hard to anticipate how the 
markets will react on the last day of 2001 this Monday as well as 
what investors will do the first day of 2002.  There could be 
last ditch selling on Monday or investors could try and beat any 
January buying pressure.  Thus, we are going to start this UVN 
play with a stop at $37.99, which is hopefully enough room to 
withstand any year-end volatility.  Honestly, any bounces at the 
$40 level look like a potential entry point for new long 
positions just confirm market direction first.  We don't have an 
earnings date for 1Q 2002 yet but we suspect UVN will announce in 
early February.  Our initial target is $45 but we'll adjust that 
as the play progresses.

Picked on December 28th at $40.89 
Change since picked:        +0.00
Earnings Date            11/06/01 (confirmed)





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

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

Barr Labs - BRL - close: 80.60 change: +0.39 stop: 76.99 

The stock may not have done much dollar or percentage wise but we 
claim this week as a victory for BRL bulls.  Monday was a key day 
as the stock broke through weeks-old resistance at $78.80 and 
moved through our trigger at $79.05.  The rest of the week was a 
success as shares of BRL managed to remain above potential price 
resistance at $80 despite weakness or more correctly a lack of 
strength in the sector (DRG.X).  We did raise our stop on 
Thursday and will leave it for the time being.  This may still be 
a decent entry point but confirm market direction first.

Picked on December 24th at $79.05 
Change since picked:        +1.55
Earnings Date               10/23 (confirmed)




---

Borders Group Inc - BGP - close: 20.00 change: +0.05 stop: see text

Inching ever closer, shares of BGP added a nickel on Friday but 
it wasn't enough to move through our trigger point.  The RLX.X 
retail index posted yet another gain and is currently trading 
near its old high back in May (937).  Next week could be a 
pivotal turning point for the retailers.  Do investors plow ahead 
and keep the rally running, or will smart money pull the plug and 
begin a multi-session round of profit taking.  We still like BGP 
but it needs to breakthrough the $20 level first.  We are going 
to wait for our trigger point at $20.05 before "picking" it as a 
long play.  Once that occurs we'll start with a stop at $18.99. .  
Every retail sales report is a potential bomb so we may choose to 
keep our stops tight once we enter the play.

Picked on December 27th at $xx.xx <-- see trigger
Change since picked:        +0.00
Earnings Date            03/14/02 (unconfirmed)




---

JC Penney - JCP - close: 26.85 change: +0.64 stop: 26.19 *new*

JCP is still enjoying a little bullish momentum.  The RLX.X index 
also added another positive day but is near potential resistance.  
Fortunately, for JCP we don't see true resistance until $28 but a 
strong pull back in the RLX could fast affect JCP.  While we are 
very cautious and expect a pull back soon the bulls should still 
be encouraged by JCP's close over this week's resistance near 
$26.50.  Due to JCP's strength we are raising our stop again, this 
time to $26.19.  This should protect a gain of $3.11 or 13%.  
Traders willing to sell into strength can consider take profits 
now as the newsletter is up over 16%.

Picked on December 13th at $23.08
Change since picked:        +3.77
Earnings Date               02/12 (unconfirmed)




---

SEI Investments - SEIC - cls: 45.53 chg: +0.18 stop: 42.99 

SEIC managed to maintain its gains from Thursday's session despite 
some early morning volatility on Friday.  Mid session, the stock 
dipped again but it was quickly followed by a rebound that would 
last the rest of the day.  This is SEIC's second close above 
resistance of $45 in two days so hopefully it will stick.  More 
aggressive traders can still look for potential entries on dips 
but $44.40 to $44.60 should be support now and we'll expect buyers 
to start jumping in on dips to $45 as well.  Currently, SEIC's 
point-and-figure chart has a bullish price objective of $76 but we 
are only targeting $50.  Keep an eye on the XBD.X.  If the 
broker/dealer sector can breakthrough resistance at 525 then SEIC 
might really see some momentum again.

Picked on December 15th at $43.41
Change since picked:        +2.12
Earnings Date               10/16 (unconfirmed)






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

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

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

I-many, Inc. - IMNY - close: 10.20 change: +0.91 stop: 9.18

Company Description:
I-many is the leader in providing software and Internet-based 
contract management solutions and related professional services 
which enable businesses to manage complex trade relationships and 
facilitate business-to-business e-commerce. The company's 
software is used by 8 of the largest 10 healthcare manufacturers 
in the world and leading consumer goods companies. The company 
estimates that its solutions help manage more than $55 billion in 
contracted commerce per year. (source: Company Press Release)

Why We Like It:
We've had our eye on IMNY for a while.  The bounce off $8 was 
impressive and became even more so when it broke through its 200-
dma.  Shares hit a little resistance around $10.25 to $10.40 and 
have since re-tested support at the 200-dma.  The stock did have 
a pretty large bounce on Friday with stronger than average 
volume.  More conservative traders may want to wait for IMNY to 
trade above $10.40 before considering an entry.  Our initial 
target is $11.80 to $12.00 but the momentum might be able to push 
the stock higher.  The point-and-figure chart confirms resistance 
at $12.00 and then at $13.50.  We're going to start the play with 
a stop at today's (Friday's) low of $9.18.  

Picked on December 28th at $10.20
Change since picked:        +0.00
Earnings Date            10/25/01 (confirmed)




---

Inktomi Corp - INKT - close: 6.55 change: +0.26 stop: 5.99

Company Description:
Based in Foster City, Calif., Inktomi develops and markets 
network infrastructure software essential for global enterprises 
and service providers. Inktomi's business is divided into Network 
Products, comprised of industry leading solutions for network 
caching, content distribution, media broadcasting, and wireless 
technologies; and Search Solutions, which include general Web 
search and related services, and enterprise search. 
(source: Company Press Release)

Why We Like It:
The last few months have been pretty positive for shares of INKT.  
The stock has made a huge move from its lows near $2.50 and the 
buying interest still appears to be out weighing the bears.  The 
stock has been trading in an up one week and down the next two 
weeks type of pattern.  We think it is about to start its next up 
week.  The stock topped out near $8.00 back on the 12th of 
December and has since bottomed near its 200-dma and price 
support of $6.00.  With Friday's close over $6.50, which has been 
recent resistance, the stock is poised for the next rally higher.  
Our initial target is $8.00.  The $1.45 gain would be a 22% rise 
in the stock price.  We do find it interesting that the chart 
might be interpreted as showing a reverse head-and-shoulders 
pattern from mid-July to Nov/Dec.  Now that it has broken the 
neckline, it might be able to trade near $10, if the head-and-
shoulders pattern is to be believed.  We are going to start the 
play with a stop at $5.99.

Picked on December 28th at $ 6.55
Change since picked:        +0.00
Earnings Date            10/18/01 (confirmed)






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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.

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PremierInvestor.net Newsletter         Weekend Edition 12-28-2001
                                                   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
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In section three:

Market Watch for Week of December 31st
   - 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 31st
==================================================

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

STZ    Constellation          Wed, Jan 2   Before the Bell   1.10

THC    Tenet Healthcare       Fri, Jan 3   Before the Bell   0.70



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

Upcoming Stock Splits This Week...

Symbol  Company Name         Splits  Payable    Executable
  
IRM     Iron Mountain        3:2     12/31      12/31
HRH     Hilb, Rogal & Ham... 2:1     12/31      01/02
AANB    Abigail Adams Banc   5:4     12/31      01/02
FLO     Flowers Food         3:2     01/02      01/03
SUBK    Suffolk Bancorp      2:1     01/02      01/03
MOVI    Movie Gallery        3:2     01/03      01/03


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

On Wednesday, the 1Q of 2002 will begin and everyone's attention
will return to the economy and its expected recovery.  Many
analyst believe it will get worse before it gets better.  Thus 
the next three months may not be very encouraging.  Keep your
eyes on the employment reports and the jobs data that comes out
over the next two weeks.  Of course we'll probably begin to hear
more earnings warnings if they haven't already been announced
yet.  The 4Q earnings announcements will begin in a week or two.


Monday, 12/31/01
----------------
None


Tuesday, 01/01/02
-----------------
None - Market Closed -


Wednesday, 01/02/02
-------------------
Auto Sales             Dec  Forecast:   6.1M  Previous:    6.1M
Truck Sales            Dec  Forecast:   7.8M  Previous:    8.2M
NAPM Index             Dec  Forecast:   45.8  Previous:    44.5


Thursday, 12/27/01
------------------
Initial Claims       12/29  Forecast:    N/A  Previous:     N/A
Construction Spending  Nov  Forecast:  -0.1%  Previous:    1.9%


Friday, 12/28/01
----------------
Nonfarm Payrolls       Dec  Forecast:  -175K  Previous:   -331K
Unemployment Rate      Dec  Forecast:   5.8%  Previous:    5.7%
Hourly Earnings        Dec  Forecast:   0.3%  Previous:    0.3%
Average Work Week      Dec  Forecast:   34.1  Previous:    34.1
NAPM Services          Dec  Forecast:   50.3  Previous:    51.3




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

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

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

CI      Cigna Corp                 92.86     +1.44
APC     Anadarko Petroleum Corp    57.43     +1.40
ACF     Americredit Corp           32.00     +0.87
EQT     Equitable Resources Inc    34.09     +0.59
WBST    Webster Financial Corp     31.57     +0.63
SFY     Swift Energy Co            21.23     +0.51

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

CALP    Caliper Technologies Corp  15.98     +1.41
MSV     Manufacturers Services      5.99     +1.04
PDGM    Paradigm Genetics Inc       5.79     +1.09
OHI     Omega Healthcare            6.15     +1.19
CDCY    Compudyne Corp             17.22     +1.90
ATSI    Ats Medical Inc             5.78     +1.05

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

AZN     Astrazeneca                45.94     +1.34
SU      Suncor Energy              33.13     +1.15
TDS     Telephone & Data Sys       91.20     +1.78
XRAY    Dentsply Intl. Inc         50.75     +1.38
VLO     Valero Energy Corp         37.81     +1.74
EEP     Enbridge Energy Partners   42.15     +2.20

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

IMCL    Imclone Systems Inc        55.25     -3.05
AGM     Federal Agricultural Mtg   40.66     -1.65
ACRT    Actrade Financial Tech     28.20     -1.55

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

BEC     Beckman Coulter Inc        44.08     -0.41
SRCL    Stericycle Inc             60.42     -1.08
MLAN    The Midland Company        45.04     -1.17



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

Please read our disclaimer at:
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*****************************************************************
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