Option Investor
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Daily Newsletter, Friday, 01/04/2002

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PremierInvestor.net Newsletter          Weekend Edition 01-04-2002
                                                    section 1 of 3
Copyright  2001, All rights reserved.
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In section one:

Market Wrap:      Close, but no cigar
Play-of-the-Day:  Smells Like Bad News
Watch List:       DCLK, WIND, UIS, ENTU, QCOM, PCS, KMX, ARTI
Market Sentiment: Analysts are lining up.

------------------------------------------------------------------
U.S. Market Numbers
------------------------------------------------------------------
MARKET WRAP  (view in courier font for table alignment)
------------------------------------------------------------------
         WE 1-4         WE 12-28         WE 12-21         WE 12-14
DOW    10259.74 +122.75 10136.99 +101.65 10035.34 +224.19  -238.31
Nasdaq  2059.38 + 72.12  1987.26 + 41.92  1945.83 -  7.34  - 68.09
S&P-100  598.61 +  6.86   591.75 +  5.34   586.41 + 14.03  - 19.40 
S&P-500 1172.51 + 11.49  1161.02 + 16.13  1144.89 + 21.82  - 35.24 
W5000  10932.32 +113.75 10818.57 +173.64 10644.93 +201.37  -301.81 
RUT      499.30 +  5.68   493.62 +  9.60   484.02 + 12.73  -  9.92 
TRAN    2830.20 +187.15  2643.05 + 37.82  2605.23 + 28.13  - 51.16 
VIX       22.02 -   .31    22.33 -   .96    23.29 -  2.68  +  1.08 
VXN       46.86 +   .92    45.94 -  5.02    50.96 -  1.83  +  2.61 
TRIN        .94              .73             1.08             1.06 
TICK       +996            +1098            +1184             +388 
Put/Call    .67              .69              .69              .72  
------------------------------------------------------------------
WE= week ended

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

Close, but no cigar

In last Friday's wrap, we thought the Networking Index (NWX.X) 
and networking related stocks might be the stocks for bulls to be 
grazing on.  We were close, but it was the airline stocks and the 
XAL.X that was this week's biggest winner (+18.7% for the week).  
Wasn't this group supposed to go bankrupt after the September 
11th terrorist attacks?

Airline Index Chart - Daily Interval




This one got away from me.  I did look at it last week, but I 
just wasn't convinced that the group would be able to hold our 
19.1% retracement of $82.  I should have known better.  This is 
the same type of thing we've seen in other stocks in other 
sectors since September, when we've bought a stock right near its 
19.1% retracement level as MACD was rounding out.  With the index 
now getting close to retracement resistance, I'm going to wait 
and see if I can't get a pullback into the $93 level as an entry 
point for an airline stock (I think there's some better 
opportunities).  Stocks to watch in the group on a pullback are 
Continental Airlines (NYSE:CAL) near $27.50 (only if you're NOT 
playing that strangle option trade), Southwest Airlines 
(NYSE:LUV) near $18 and Frontier Airlines (NASDAQ:FRNT) near $16.  
I won't cover all the technicals here, but from those levels 
mentioned, a customary 10% stop on each should suffice.  If 
action is taken, then move stop up should stocks then find a move 
higher.  Try and correlate with the XAL.X and the $105 level or 
any trading near the 200-day MA and downward trend near $115.

While we may have missed the airline call, we didn't do to bad 
with our networking call.  The Networking Index (NWX.X) along 
with the closely tied Fiber Optic Index (FOP.X) both pounded out 
some nice 12.5% and 12.9% gains respectively.  These two were the 
#2 and #3 sector winners of the week.  Almost as if we wrote a 
script on the tax-loss strategy, both of these sectors (along 
with the market) dipped lower on Monday, but when the New Year 
baby showed up on Wednesday, the sellers were gone and demand 
took over.  Cisco Systems (NASDAQ:CSCO) was the "representative" 
stock we felt that networking sector bulls should focus on and 
that stock pounded out a nice weekly gain of 12% (+$2.29).  I do 
think it is notable that Cisco traded almost identical to the 
NWX.X itself.  Make no mistake about it.  As Cisco goes, so goes 
the index.

Cisco Systems Chart - Daily Interval




While a $2.29 move in a week may not seem like much, you can't 
believe some of the "nasty" e-mails I got in early December when 
Cisco was trading in the high $21 area.  It took 19 sessions for 
Cisco to trade a range from $19.20 to $21.66.  In the past two 
sessions, Cisco came close to trading that range.  I think higher 
prices are ahead for Cisco, but I will not be the least bit 
surprised if the stock dilly-dallies around between the $19.20-
$22 range next week.  A short-term trader that can consistently 
take 7% out of Cisco on proper trade setup like this week 
presented can do just fine.  I think investors in the stock are 
going to start doing well too.  As long as the stock stays above 
its 200-day moving average I'll be kind to the stock, but if it 
disappoints me, I'd sell it and move onto a stock that treats me 
better.  I love people and animals, but I learned a long time ago 
to not fall in love with a stock.

Weekly performance




We've covered the Airline Index (XAL.X) and Networking Index 
(NWX.X).  The Fiber Optic Index (FOP.X) is still quite young and 
just doesn't have enough historical data to really make a sound 
judgment on regarding technical analysis.  We talked quite a bit 
about the Oil Service Index (OSX.X) last week and this week 
again.  My thoughts right now are that we may need to see some 
OPEC production increases before things heat up for those stocks.  
I'm not abandoning BJ Services (NYSE:BJS), but I do think the 
better trading opportunities near-term will be the energy 
producers (as recently discussed).  The Oil Service Index (OSX.X) 
did gain back 2.5% today, but still finished about 4% lower this 
week.  Shares of Halliburton (NYSE:HAL) sunk to a new 52-week low 
of $10.22, but the problems for Halliburton are not so much "oil 
service" related as they are "asbestos" related.  

The Biotechnology Index (BTK.X) was this week's biggest loser and 
this does raise an eyebrow of concern for me.  This is a group I 
do think needs to show bullishness for things to continue to hum 
for the NASDAQ.  

I did like today's turnaround right near the bullish support 
trend on the point and figure chart for the Biotech Index 
(BTK.X), but we need to be alert for any break below the $530 
level.  Imclone (NASDAQ:IMCL) was the stock that "blew up" this 
week as that stock fell roughly $11.76 (-21%) from last Friday's 
close of $55.25.  That put a hurt on the Biotech Index (BTK.X) 
and a dose of reality to biotech investors that FDA approval on a 
major drug being developed is a critical milestone.  When there 
is a disappointing trial or an FDA rejection like there was for 
IMCL's cancer drug "Erbitux," the knee-jerk reaction is SELL!  
Conversely, when there's a major breakthrough and success on the 
biotech front, then the heard moves higher in unison.

The biotechs are a very different beast.  They're not really a 
group that has a major "economic" factor associated with them.  
This is, their tough time isn't a sign that the economy is going 
in the tank.  Conversely, their success isn't a sign that the 
economy is about to explode either.  What their trading can do is 
impact "technology" psychology to a degree.  In late September 
and early August I was writing in my commentary that the group 
was looking strong and may have been hinting that the NASDAQ was 
about to make a turn for the better.  Well, this group did move 
higher and the NASDAQ soon followed.  Now the group is at a 
fairly important level of support that needs to hold.  We'll want 
to monitor things closely next week.  I'm not looking at any 
trades here right now.

Next week

This week I think bulls may want to keep an eye on oil and gold 
stocks for some gains.  Two weeks ago I thought "energy stocks 
looked interesting" and to everyone's surprise that group did 
quite well the following week.  Oil Service stocks jumped 4.6%, 
but gave most of that back this week (not all, but most).  In the 
energy sector, I think its oil that is going to do the talking.  
Again, the OPEC cuts and a stronger economy are the catalysts for 
my scenario.  Shrinking supply and increasing demand is a 
catalyst for higher prices.  In the commodity and the stocks of 
the company's that product it.  

I'm not going to change my tune on the stocks I like.  Shares of 
Apache (NYSE:APA) gained 2% today and found some support on 
Thursday right at their 200-day MA.  Last Friday I pointed out "a 
trick" that may have given us some insight to this weeks pullback 
to $45 (the 3-box reversal).  With crude futures jumping 6% today 
to $21.62, I think the market is starting to "agree" with some of 
the things we've been discussing in our commentary in recent 
weeks.  I've fine tuned my thinking a bit from Oil Service to Oil 
Producers so be on the look for a move higher from this group 
this week.

Another group to be alert for a move higher are gold stocks.  
This observation goes back to discussions we've had on economic 
growth and "fear of inflation."  I can see the headlines now.  
"Aggressive Fed tightening has economy strengthening, but OPEC 
oil cuts has energy prices rising and inflation will run rapid!"
I've said before that I feel it is good for there to be some 
fears of inflation.  That means there is going to be some type of 
economic growth!  If I think we can make some money in some 
bullish trades in the group based on the "fear of inflation" I'm 
not going to sit around and let the stocks move higher without 
pointing it out.  Or at least the potential for the move higher.

The Gold/Silver Index (XAU.X) rose 4.5% this week and didn't get 
a lot of press in the media.  That's good!  When it's all over 
the media headlines, that's when it is usually time to get out 
and take your profits.  Today's close at $56 for the XAU.X was 
the highest close for this index since the week ending October 
5th.  If you've ever been walking down a path and saw some type 
of bright reflection and thought it might be a gold nugget, then 
this one might be worth bending down and at least examining it.

Gold/Silver Index Chart - Daily Interval




With the XAU.X back above downward trend and MACD turning higher, 
this may well be a group that outperforms next week.  I think 
there's enough hint of economic growth in the air and some 
volatility in oil prices for "inflation bugs" to start chirping.  
Gold stocks in my view are NOT a hedge against inflation, but 
these buggers will move when inflation fears arise and offer some 
good shorter-term trading.  I've left both longer-term trends in 
place for months to help me and you perhaps understand some of 
the longer-term trends currently in play.  Right now, the longer-
term upward trend is winning out and that's the trend I look to 
play near-term.

What a week it was!

I'm tired!  How about you?  I feel like I've put in a long week.  
Funny.  I took Monday off.  Tuesday the market was closed so I 
only worked three days this week.  Why am I so tired?  I think it 
was all the hard work we did while we were here.  Those tax-loss 
trades take some work don't they?  What a way to start the week 
and the New Year for that matter.  I'm pretty happy with the way 
things have worked out, but there are still some good trades to 
be had.

I've been throwing out a lot of stocks the past week or so that 
have looked bullish.  Only a couple of names I've mentioned were 
ones that I thought were bearish and those darned things moved 
higher and stopped us out.  Broadcom (BRCM) comes to mind.

I get in trouble sometimes with subscribers when I start 
mentioning a lot of stocks, but don't follow up on them.  I'm 
probably like you.  I have limited capital and can't trade 
everything that I talk about and I will forget about a stock that 
I mentioned in an intraday commentary or in a market wrap.

I try and "teach" some skills on setting stops and targets.  This 
way I can jabber and point out what I see taking place in the 
market.  If you like the stock (long or short) and have been 
absorbing some of the "teachings" then you can manage many of 
these trades after I point them out.  Maybe an idea or stock I 
mention jolts an idea or stock you've been looking at in the same 
sector and you decide to trade or invest in that stock that you 
know better or have researched in the past.

I can't stop!

I thought I was done.  I'm addicted to looking at charts.  Keep 
an eye on Neogen (NSDAQ:NEOG) this week.  There's something about 
this packaging/chemical company that really has me thinking 
bullish thoughts.  This stock just looks like there is an immense 
amount of pressure building in it.  50% retracement at $17.86 and 
a stop near $17.40 would be recommended.  I think the stock could 
really get a move on to the upside on a break above $20.  Today's 
trading had the stock closing at $18.81.

Have a great weekend!

Jeff Bailey
Senior Market Technician


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

Andrx Group - ADRX - close: 64.14 change: -6.21 stop: 68.02

Company Description:
Andrx Corporation is a specialty pharmaceutical company engaged 
in the formulation and commercialization of oral controlled-
release generic and brand pharmaceuticals utilizing its 
proprietary drug delivery technologies. (Source: company press 
release)

Why We Like It:
The move for ADRX on Friday smells like bad news.  Shares seemed 
to be doing okay until about 10:40 a.m. on Friday when suddenly 
the stock crashed from $70 to less than $66.  Shares bounced but 
the selling resumed and by the end of the day ADRX fell 8.8%.  
Volume was very big with 5.3 million shares trading versus the 
average of only 1.5 million.  This amount of volume makes us 
suspect that some institutional traders got wind of something and 
decided they wanted out.  We were unable to find any specific 
news and message boards are fraught with misleading statements so 
we're basing this on the two clues above.  Thus, turning bearish 
on ADRX carries a little bit of risk without knowing the nature 
of the news but we will try and limit that to six percent with a 
stop at $68.02.  The close below $65 is bad for the bulls and 
share could fall to $60 very quickly.  If $60 fails to hold as 
support then the shorts could enjoy quite a move.  If you have 
trouble finding shares to short, consider put options that also 
allow you to limit your risk to the cost of the option.  Confirm 
stock direction before initiating a play.  Shares could bounce 
back to $66 before rolling over again.  Over $66 and we'd 
probably hold off on any new positions.

Picked on January 4th at $64.14 
Change since picked:      +0.00
Earnings Date          10/25/01 (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
---------------------------------

DoubleClick, Inc - DCLK - close: 12.71 change: +0.13

WHAT TO WATCH: We like DCLK as a potential long play but would 
only play it (right now) with a trigger to go long.  Consider 
something like $13.05 since the $13 level has been tough 
resistance over the last month.  The last two days have produced 
a decent amount of volume fueling the up moves and the MACD is on 
the cusp of a bullish crossover.  Earnings are expected on 
January 15th, 2002.  We would target the $15 level for a 15% 
gain.




---

Wind River Systems, Inc - WIND - close: 18.89 change: +0.89

WHAT TO WATCH: Shares of WIND produced a big bullish breakout on 
Friday with the stock closing above its 200-dma, a feat that had 
not been accomplished since Dec. 13th, 2000.  The rising volume 
on the last two positive closes may speak of a new trend 
developing and shorts may decide to cover.  The stock has been 
consolidating sideways for weeks and the MACD is also about to 
turn bullish.  Some traders may also want to consider the use of 
a trigger to go long on this stock as well.  We like the $19.10 
or $19.15 area as a good spot for a trigger.  Expect resistance 
at $20 but we would aim for $22 given the length of the recent 
consolidation.  Earnings are expected on February.




---

Unisys - UIS - close: 13.50 change: +0.44

WHAT TO WATCH: We came very close to playing UIS as a new bullish 
play for the newsletter this weekend.  The positive moves in the 
GSO.X software index are very encouraging and the recent 
consolidation and positive breakout for UIS is also attractive.  
The $13.50 level was resistance in early December but we think 
shares will conquer it and trade to $15.00.  The MACD is also 
about to turn bullish.  Earnings are expected on January 17th, 
2002.




---

Entrust, Inc - ENTU - close: 12.05 change: +1.12

WHAT TO WATCH: ENTU was another good-looking stock we strongly 
considered for a long play in the high risk/high reward section.  
Friday's breakout over resistance at $11 on very strong volume is 
exactly what bulls want to see.  The 10% move is a bit much to 
jump in on but the stock has a great up trend.  Only aggressive 
trades should consider chasing it.  We would look for a pull back 
to $11 as a potential entry point.  




---

QUALCOMM - QCOM - close: 50.41 change: -1.57

WHAT TO WATCH: We think QCOM might be a good short candidate and 
another one worth using a trigger on.  If shares of QCOM trade 
below $49.50, we would use that as a trigger to evaluate a new 
short position.  The negative day on Friday was a great failed 
rally at its 15-dma and the big volume on the move leads us to 
believe the selling isn't over yet.  Earnings are expected on 
January 24th, 2002.




---

Sprint - PCS - close: 22.45 change: -1.89

WHAT TO WATCH: PCS is another good short candidate in a similar 
industry.  The wireless player has been trading sideways for 
months and the big down day on Friday with the big volume backing 
it up smells like the beginning of the next leg down.   Traders 
could use the trigger strategy on PCS as well.  We would look for 
shares to breakdown under $22 but more aggressive players could 
use December's lows near $22.35.  Our first target would be $20 
but the stock might be able to fall to $19.  




---

Circuit City Carmax Group - KMX - close: 20.55 change: -1.51

WHAT TO WATCH: Yet another big drop on big volume, shares of KMX, 
a division of Circuit City that sells cars appear to be rolling 
over.  We also like the trigger strategy on KMX with a potential 
trigger point at somewhere just under $20.  On a daily chart it 
looks like shares could fall to $17.50 but on a 60-minute chart 
the support levels at $18 and $16 become more evident.




---

Artisan Components - ARTI - close: 14.91 change: -1.17

WHAT TO WATCH: ARTI looks like a semiconductor stock that has run 
out of gas.  Shares have been kind of volatile the last few 
sessions but Friday's performance produced a big bearish 
engulfing candlestick pattern.  We think that if shares trade 
under $14.75 it might be a good short candidate.  More 
conservative traders could use a trigger and wait for shares to 
fall to $14.49.  We would aim for the 50-dma near $13 as our 
goal.






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

Analysts are lining up.
by Russ Moore


It seems that a little bit of the “bubbly” was left over from New 
Year’s eve. Salomon Smith Barney, Lehman Brothers, Prudential 
Securities and Goldman Sachs were almost giddy as they lined up 
to give the green light on a variety of sectors and that, coupled 
with an employment picture showing signs of stabilization, had 
investors pushing the buy button.

All of the major indices were able to put another one in the win 
column with the DOW adding +0.9 percent, the NASDAQ +0.7 percent, 
and the NDX +0.5 percent. Adding to the bullish euphoria was the 
NASDAQ holding the 2000 level, and the SPX and DOW climbing above 
their 200DMA’s. Volume was solid once again with 1.50 billion 
shares moving on the big board and 2.20 billion on the tech 
index. Winners remained on top with a 20/12 victory on the NYSE 
and a 22/15 advantage on the NASDAQ.

Sector action saw biotech’s rebound in a big way while the 
airlines (XAL) refused to come in for a landing. Brokerage, 
transports, oil service, and airlines all put in green arrow 
sessions. Software was the best performer over on the tech side 
while chips gave back a little after a tremendous run this week.

Employment data showed a jobless rate of 5.8 percent, the highest 
since April 95’, but inline with expectations.

Hourly earnings edged up +0.5 percent versus the +0.3 percent 
forecast. 

Fund flows tracker, Trim Tabs, reported outflows from all 
equities of 9.5 billion for the four days ending January 2.

We’re at an interesting stage right now. Economic data has moved 
from below freezing to a tepid rating, analysts have seen their 
horns grow several inches in the past two weeks, and the markets 
continue to creep higher. Surely these facts are enough to get 
that much coveted sideline money into the markets? Maybe not.

We‘re all anxious to see the checkered flag being waved over our 
trading accounts but we also know that in every race the yellow 
flag is certain to make an appearance. The yellow flag in this 
instance comes from this week’s COT report. Scrolling down to the 
bottom of this page you’ll note that the Commercial players have 
increased their net-short positions while the Small Specs (you 
and me) headed the other way. The fact that the big players have 
increased short positions is not reason enough to stop playing 
the long side, but rather, a reason to tread carefully and not 
get too caught up in the analyst hype. 


Friday 01/04 close: 22.02


VXN
Friday 01/04 close: 46.86


30-yr Bonds
Friday 01/04 close: 5.57


Total Put/Call Ratio: .67


Equity Option Put/Call Ratio: .55


Index Option Put/Call Ratio: 1.90


===

NASDAQ 100 Index (NDX/QQQ)
52-Week High: 103.51
52-Week Low:   28.19
Current close: 41.67

Volume/Open Interest
Maximum calls: 40/132,332
Maximum puts : 40/ 96,214

Moving Averages
 10 DMA 39
 20 DMA 40
 50 DMA 39
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: 598.61

Volume/Open Interest
Maximum calls: 590/4,870
Maximum puts : 520/4,850
Moving Averages
 10 DMA  589
 20 DMA  585
 50 DMA  580
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: 1172.51

Volume / Open Interest
Maximum calls: 1150/41,413
Maximum puts : 1150/35,539
Moving Averages
 10 DMA 1153
 20 DMA 1147
 50 DMA 1132
200 DMA 1166

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: 10,259.74

Volume / Open Interest
Maximum Calls: 100/14,145
Maximum Puts   100/29,310

Moving Averages:
 10 DMA 10,093
 20 DMA 10,016
 50 DMA  9,801
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: 571.40

Volume / Open Interest
Maximum Calls: 660/  368
Maximum Puts:  580/1,595

Moving Averages
 10 DMA 580
 20 DMA 581
 50 DMA 579
200 DMA 539

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: 589.89

Volume / Open Interest
Maximum Calls: 440/1,260
Maximum Puts:  500/2,691

Moving Averages
 10 DMA 538
 20 DMA 549
 50 DMA 524
200 DMA 554

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: 377.22

Volume / Open Interest
Maximum Calls: 400/525
Maximum Puts:  360/510

Moving Averages
 10 DMA 382
 20 DMA 384
 50 DMA 390
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, 02/04. 
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 
12/18/01     391,995   456,968   (64,973)    4.3%
12/25/01     412,581   471,239   (58,658)   (9.7%)
01/01/02     338,288   407,107   (68,729)   17.1% 

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
12/18/01       158,300    80,507    77,793     8.4%
12/05/01       152,521    79,444    73,077    (6.1%)
01/01/02       127,419    55,576    71,843    (1.6%)

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 
12/18/01      55,276    58,433    (3,157)  (46.7%)
12/25/01      55,250    47,476     7,774   
01/01/02      29,801    37,497    (7,696)

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
12/18/01       17,649    18,626     (977)   
12/25/01       15,810    25,687   (9,877)
01/01/02       10,649     5,913    4,736   

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 
12/18/01      21,919    13,810    8,109    (23.2%)
12/25/01      15,492     7,335    8,157       .6%
01/01/02      15,820     7,553    8,267     1.3%

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
12/18/01       6,790    10,943    (4,153)    (25.8%)
12/25/01       4,293     9,086    (4,793)     15.4%
01/01/02       3,368     8,668    (5,300)     10.6%
 
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        +71,843     +73,077        -68,729     -58,658

Total Open
Interest %       (+39.26%)  (+31.50%)      (-9.22%)   (-6.64%)
                 net-long   net-long       net-short  net-short


                     Small Specs             Commercials
DJIA futures     (Current) (Previous)    (Current) (Previous)
Open Interest
Net Value          -5,300     -4,793          +8,267    8,157
Total Open
interest %       (-44.03%)    (-35.82%)      (+35.37%)  (+35.73)
                 net-short   net-short     net-long    net-long


                     Small Spec              Commercials
NASDAQ 100      (Current) (Previous)    (Current) (Previous)
Open Interest
Net Value         +4,736      -9877         -7,696    +7,774

Total Open
Interest %        (+28.60%)   (-23.80%)     (-11.44%) (+7.49%)
                 net-short   net-short      net-short  net-long


What COT Data Tells Us
----------------------
Indices:.Interesting changes this week as the Commercials 
increased their net-shorts on the S&P 500 (bearish) while the 
Small Specs added to their net-long percentage. Increasing 
divergence is what we’re looking for and we’ll be watching this 
one closely over the coming weeks. Elsewhere, Commercials did a 
flip-flop on the NASDAQ 100 with a change to net-short contracts. 
Once again we see increasing divergence between the Commercials 
and the Small Specs as the Small Specs went net-long on the tech 
index.

Gold: No significant changes this week.

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
01/01 14,555 contracts net-short

Data compiled as of Tuesday 01/01 by the CFTC.




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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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Do not duplicate or redistribute in any form.


PremierInvestor.net Newsletter          Weekend Edition 01-04-2002
                                                    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
charts and graphs, click here:
http://www.PremierInvestor.net/htmlemail/5795_2.asp
=================================================================

In section two:

Net Bulls
  Bullish Play Updates:  NOK, SFA
  Closed Bullish Plays:  NEWP

Stock Bottom / Active Trader
  New Bullish Plays:     APA, LAB, PDG
  New Bearish Plays:     ADRX
  New Long-Term Play:    SPLS
  Bullish Play Updates:  BGP, NCOG, SEIC, UVN

High Risk/Reward
  Bullish Play Updates:  ADCT, INKT   
  Closed Bullish Plays:  TXCC

Split Trader
  - none -


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

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

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

Nokia Corp - NOK - close: 26.15 change: -0.75 stop: 24.39

Many of the overseas telecom and wireless players were marginally 
lowered on Friday.  This may be due to some profit taking heading 
into the weekend.  Nothing much has changed in our NOK play from 
our comments on Thursday.  We did get the pull back to the $26.00 
area like we mentioned.  Traders should confirm the stock's 
direction before initiating any new positions.  Only aggressive 
players should look for entries under $26, as we would prefer to 
see this level of support hold up.

Picked on January 3rd at $26.90
Change since picked:      -0.75
Earnings Date          10/19/01 (confirmed)




---

Scientific Atlanta - SFA - cls: 26.86 chg: +0.55 stop: 24.73*new*

Friday added another two percent to shares of SFA but the stock's 
daily performance produced a small doji candlestick pattern that 
could be seen as a possible caution flag.  Optimistically, we 
like the rising volume with the rising share price.  That's 
exactly what bulls want to see.  We also like the confirmation of 
a bullish crossover in the MACD technical indicator.  Here's what 
traders should watch out for.  We mentioned potential resistance 
at $27.50, which apparently is still there.  The doji pattern 
usually indicates indecision.  This means the stock could go 
either way but due to its position in the short-term up trend we 
might prepare for a pull back in the stock price.  This is not 
necessarily a bad thing.  A pull back in SFA allows for some 
short-term profit taking by investors that bought in the second 
half of December.  This would also offer a new entry point for 
bulls waiting for a dip.  We would look for a bounce near $26.00 
or $25.50.  However, it's very possible this new up leg could 
pull back to $25.00, thus we are raising our stop to cost at 
$24.73.  We're also adding an exit point.  If SFA trades to 
$29.00 intraday we'll close the play for a profit.  Currently, 
the newsletter is up over 8% in the play.

Picked on December 28th at $24.73
Change since picked:        +2.13
Earnings Date            01/17/02 (confirmed)





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

  -------------------
  Closed Bullish Play
  -------------------

Newport Corp - NEWP - close: 23.96 change: +0.61 stop: 22.34 

We came so close to actually hitting our exit point of $24.25 on 
Friday that it became a dilemma on whether to keep it or close it 
this weekend.  Shares tried as high as $24.05 late in the day 
after an early morning dip to the $22.50 level. On Friday, NEWP 
outperformed the fractionally lower SOX with a 2.6% gain. Readers 
should remember that due to their high chip equipment sales the 
stock seemed to be trading in tandem with the chip index.  The 
two big volume days (Thurs/Friday) really confirms the strength 
of this new up trend but shares could pull back as it works on 
enough steam to tackle its 200-dma just overhead (now at $24.25).  
We are adjusting our "picked" price to $20.60, which was the open 
on Thursday instead of the $20.25 where it closed Wednesday.  
This adjusts our current move in the stock to +$3.36 or +16.3%.  
Trader's not willing to take profits just yet may want to 
consider adjusting their stops.  Two areas of interest would be 
moving it to $22.48; Friday's low, or near $23.24, which would be 
about 11 cents below the late afternoon dip on Friday.  The 
latter one would have a much higher chance of being stopped if 
shares didn't immediately take off come Monday morning.  On the 
other hand, traders still have a risk if shares gap down at the 
open.  You may want to remember that NEWP's CEO and CFO will be 
presenting at the Fourth Annual Needham & Co. Growth Conference 
in New York on Jan. 8th. 

Picked on January 2nd at $20.60<- adjusted for Thurs. open
Gain since picked:        +3.36
Earnings Date          10/17/01 (confirmed)






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

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

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

Apache Corp - APA - close: 48.54 change: +1.03 stop: 45.99

Company Description:
Apache Corporation is a large oil and gas independent with 
operations in the United States, Canada, Egypt, Western 
Australia, Poland, China and Argentina. (Source: company press 
release)

Why We Like It:
We are adding APA as a follow through on Bailey's comments in his 
wrap this weekend.  If oil stocks are on the rebound there's no 
reason we can try and capture a slice of the move.  We encourage 
readers to glance at a chart of the oil crude futures.  They do 
look like they are building a bullish pattern now that the price 
appears to have bottomed.  If the price of oil does move 
significantly higher then shares of APA should benefit.  We also 
like APA due to its recent breakout above its 200-dma and then 
its retest of the 200-dma as support on Thursday/Friday.  We'll 
start the play with a stop about five percent below Friday's 
close or $45.99.  More conservative traders might be able trade 
with a tighter stop if the 200-dma is to hold.  In the news on 
Friday, APA announced they had a very successful first test of 
some Egyptian oil well with a strong daily output.  This appears 
to have warded off any negative press from Lehman Brothers 
lowering their price target on APA from $54 to $46 on Thursday.

Picked on January 4th at $48.54 
Change since picked:      +0.00
Earnings Date          10/25/01 (confirmed)




---

Labranche & Co Inc - LAB - close: 36.11 change: +2.03 stop: 33.74

Company Description:
Founded in 1924, LaBranche is a leading Specialist firm. The 
Company is the Specialist for more than 600 companies, nine of 
which are in the Dow Jones Industrial Average and 104 of which 
are in the S&P 500 Index. In addition, LaBranche acts as the 
Specialist in over 120 options. (Source: company press release)

Why We Like It:
The big move in the broker/dealer index (XBD.X) helped push 
shares of LAB through resistance between $35.00 and $35.25.  
Volume was stronger than normal at 394K shares.  We look at this 
as a chance to capture a quick ten percent move before the 
enthusiasm for the broker section wears off again.  As you may 
have read, Prudential came out Friday morning with strong 
comments about Merrill Lynch, which boosted the entire sector.  
The XBD.X soared almost 27 points or 5%.  We think the way to 
play this is to look for a pull back in LAB to $35.00 or $35.50.  
When shares bounce, evaluate your entry point based on current 
market conditions.  However, with shares closing near their high 
on Friday, LAB may continue higher before pausing to rest.  We're 
going to aim for an exit near $39.00.  We'll start the play with 
a stop at Thursday's low.

Picked on January 4th at $36.11 
Change since picked:      +0.00
Earnings Date          10/22/01 (confirmed)




---

Placer Dome - PDG - close: 11.64 change: +0.08 stop: 10.90

Company Description:
Placer Dome Inc. is the world's fifth largest gold mining 
company, producing nearly 3 million ounces of gold and 430 
million pounds of copper annually. (Source: company press 
release)

Why We Like It:
This is another play where we are trying to coordinate our 
strategy with our market outlook in the wrap.  Shares of PDG have 
been slowly building a bullish pattern and the stock recently 
bounced off its 200-dma a few sessions ago.  The close over 
resistance at $11.50 was encouraging but traders need to keep an 
eye on the XAU.X gold/silver index as well as the price of gold 
itself.  The MACD has started to tick up again and Thursday's big 
move was fueled on strong volume.  Confirm stock direction before 
entering any new plays.  Watch for overhead resistance at $12.50 
and again at $13.00.  We'll probably aim for an exit near $13 if 
the stock moves as planned.  We will initiate the play with a 
stop at $10.90.

Picked on January 4th at $11.64 
Change since picked:      +0.00
Earnings Date          10/24/01 (confirmed)





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

Andrx Group - ADRX - close: 64.14 change: -6.21 stop: 68.02

Company Description:
Andrx Corporation is a specialty pharmaceutical company engaged 
in the formulation and commercialization of oral controlled-
release generic and brand pharmaceuticals utilizing its 
proprietary drug delivery technologies. (Source: company press 
release)

Why We Like It:
The move for ADRX on Friday smells like bad news.  Shares seemed 
to be doing okay until about 10:40 a.m. on Friday when suddenly 
the stock crashed from $70 to less than $66.  Shares bounced but 
the selling resumed and by the end of the day ADRX fell 8.8%.  
Volume was very big with 5.3 million shares trading versus the 
average of only 1.5 million.  This amount of volume makes us 
suspect that some institutional traders got wind of something and 
decided they wanted out.  We were unable to find any specific 
news and message boards are fraught with misleading statements so 
we're basing this on the two clues above.  Thus, turning bearish 
on ADRX carries a little bit of risk without knowing the nature 
of the news but we will try and limit that to six percent with a 
stop at $68.02.  The close below $65 is bad for the bulls and 
share could fall to $60 very quickly.  If $60 fails to hold as 
support then the shorts could enjoy quite a move.  If you have 
trouble finding shares to short, consider put options that also 
allow you to limit your risk to the cost of the option.  Confirm 
stock direction before initiating a play.  Shares could bounce 
back to $66 before rolling over again.  Over $66 and we'd 
probably hold off on any new positions.

Picked on January 4th at $64.14 
Change since picked:      +0.00
Earnings Date          10/25/01 (confirmed)





============================
NEW LONG-TERM PLAY (bullish)
============================

Staples, Inc - SPLS - close: 18.44 change: +0.28 stop: 15.99

Company Description
Staples, Inc. is an $11 billion retailer of office supplies, 
business services, furniture and technology to consumers and 
businesses from home-based businesses to Fortune 500 companies in 
the United States, Canada, the United Kingdom, Germany, the 
Netherlands and Portugal. Headquartered outside Boston, Staples 
invented the office superstore concept and today is the largest 
operator of office superstores in the world. The company has over 
50,000 employees serving customers through more than 1,300 office 
superstores, mail order catalogs, e-commerce and a contract 
business. (source: company press release)

Why We Like It:
With the hint of an economic turnaround whipping up a lot of 
excitement on Wall Street these days we're looking for stocks 
that will benefit for a true recovery in corporate America.  Who 
better to profit from this than Staples?  The office supply 
retailer looks ready for the next move up.  Investors can take 
their time when it comes to picking an entry point.  Those who 
like to buy on the dip can look for any pull backs to $17.00 or 
$17.50.  Others who prefer confirmation of the move can wait for 
shares to close over $19.00 again.  Personally, we like the way 
shares pulled back to $18 on Thursday and started to trade higher 
again.  Earnings are not expected until March and the stock's 
point-and-figure chart is showing a bullish price objective of 
$25.  We will start the play with a relatively wide stop at 
$15.99 as the $16 level should be very strong support.  Secondly, 
we will put an exit price of $24.85.  If shares trade there 
intraday we'll close the play for a profit.  

Picked on January 4th at $18.44
Gain since picked:        +0.00
Earnings Date          03/05/02 (unconfirmed)






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

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

Borders Group Inc - BGP - cls: 20.43 chg: +0.08 stop: 19.19 

The retail index turned in a positive close for Friday's session 
and shares of BGP joined them but with less enthusiasm.  We are 
encouraged by BGP's ability to actually maintain its position 
above the $20 level but the chart is telling us it may trade 
lower again next week.  The challenge here is BGP has been in a 
tight ascending channel for the last few weeks.  This is not a 
bad thing but it doesn't lend itself to quick explosive short-
term gains.  We would look for BGP to trade back to $20 before 
moving higher.  Truthfully, some traders don't mind a "slow 
mover" like this one.  Just don't forget to adjust your stop.

Picked on December 27th at $20.05 
Change since picked:        +0.30
Earnings Date            03/14/02 (unconfirmed)




---

NCO Group, Inc. - NCOG - close: 25.24 change: +1.07 stop: 22.87*new*

NCOG is another recent addition to the play list we added on 
Thursday and the +4% move on Friday was encouraging confirmation 
of the trend.  Shares traded higher quickly in the morning hours 
before consolidating into the weekend.  The close over $25 is a 
big positive for the bulls.  Shares haven't closed over this 
level since July 20th, 2001.  However, don't be surprised if the 
stock dips to $24.50 before bouncing higher.  If it does, traders 
might want to consider it an entry point.  Of course a pull back 
to $24.00 wouldn't be out of place either; but look for signs of 
a bounce first.  Short-term players might want to consider an 
exit strategy near $27.50, the next level of tough resistance.  
We are raising our stop to Thursday's low to help reduce our 
exposure.  Don't hesitate to adjust yours higher or lower based 
on your own ability to handle risk.

Picked on January 3rd at $24.17 
Change since picked:      +1.07
Earnings Date          11/06/01 (confirmed)




---

SEI Investments - SEIC - cls: 45.75 chg: +1.10 stop: 42.99 

Wall Street is back to dueling analysts comments again, this time 
over the fate of the brokerage sector.  SEIC isn't really a 
brokerage but shares trade closely with the ups and downs of the 
XBD.X broker/dealer index.  On Thursday, CSFB had trimmed their 
estimates for MER but Friday morning Prudential came out with a 
big upgrade for MER that lifted the whole sector.  The XBD.X added 
almost 27 points and gained over 5%.  In response many broker 
stocks gapped up to end with big gains on the day.  SEIC didn't 
gap up but did trade higher early in the morning only to butt 
heads again with resistance at $46.  Traders should look for SEIC 
to breakthrough this level before adding to or creating new 
positions.  At this time our goal would be to exit near $50.

Picked on December 15th at $43.41
Change since picked:        +2.34
Earnings Date               10/16 (unconfirmed)




---

Univision - UVN - close: 41.75 change: +1.54 stop: 38.99 *new*

The rally on Wall Street got a little wider on Friday and shares 
of UVN were ready for a little boost.  The stock had been 
consolidating sideways this week while tech stocks took the 
spotlight in the new year excitement.  UVN has bounced twice at 
$40 in the last two days and very conservative investors may want 
to use this as a guide to place their stops.  We are raising ours 
to $38.99, which is almost a quarter below the 20-dma.  We're 
still aiming for a move to $45 but have not yet decided to add an 
exit point.

Picked on December 28th at $40.89 
Change since picked:        +0.86
Earnings Date            11/06/01 (confirmed)






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

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

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

ADC Telecommunications - ADCT - cls: 5.38 chg: +0.32 stop: 4.74*new*

The advance for telecom and networking stocks may be slowing but 
not for shares of ADCT.  The stock added another 6.3% on Friday 
on very strong volume of 20M shares.  Average volume is normally 
9.4M shares.  We're still aiming for an exit point of $5.95 but 
ADCT may pull back to the $5.10 - $5.15 level before moving 
higher.  Aggressive bulls may want to use any dip as a potential 
entry point.  Fortunately, the big volume helps confirm the move 
higher and the MACD is also confirming this move higher.  We are 
adjusting our stop to Thursday's low of $4.74.  

Picked on January 3rd at $ 5.06
Change since picked:      +0.32
Earnings Date          11/28/01 (confirmed)




---

Inktomi Corp - INKT - close: 7.30 change: +0.01 stop: 6.94

Uh oh.  We may have missed our exit.  On Thursday we mentioned an 
exit "near" $8.00 but didn't actually pick an exit point.  Shares 
of INKT traded to $7.97 before pulling all the way back to $7.01.  
This was only six cents away from our stop.  We didn't see any 
news so it looks like profit taking ahead of the weekend.  We are 
choosing to be a bit aggressive in our exit now and will pick 
$8.45 as our exit point.  New positions can still be taken but 
traders need to confirm the move higher on Monday.  Any dip down 
from here could stop us out quickly.  

Picked on December 28th at $ 6.55
Change since picked:        +0.75
Earnings Date            01/16/02 (confirmed)






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

  -------------------
  Closed Bullish Play
  -------------------

TranSwitch Corp - TXCC - cls: 5.36 chg: -0.14 stop: 5.15 

We were so close.  TXCC traded up to $5.80 in the early hours on 
Friday before dropping all the way back to $5.15, or Thursday's 
low.  If only we had picked $5.14 as our stop instead.  We 
shouldn't be complaining.  The 65-cent gain still represents a +
14% move in the stock price.  We still think the trend is bullish 
for TXCC but shares could pull back to $5.00 before moving 
higher.  Those looking to swing for the fences can aim for the 
$7.00 level which should be the top of TXCC's current trading 
channel (granted it's a volatile channel).  Pick your stops 
carefully as the bottom of the channel is near $4.50 and that's a 
lot of heat.  

Picked on December 31st at $ 4.50
Gain since picked:          +0.65
Earnings Date            01/17/02 (unconfirmed)







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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:
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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 01-04-2002
                                                   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/5795_3.asp
=================================================================

In section three:

Market Watch for Week of January 7th
   - 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 January 7th
==================================================

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

------------------------- MONDAY -------------------------------

ARBA   Ariba                  Mon, Jan 7  -----N/A-----    -0.05

------------------------- TUESDAY ------------------------------

AA     ALCOA                  Tue, Jan 8  -----N/A-----     0.10
EMMS   Emmis Communications   Tue, Jan 8  Before the Bell  -0.30
RPM    RPM                    Tue, Jan 8  After the Bell    0.21
TRMK   Trustmark Corporation  Tue, Jan 8  After the Bell    0.44

-----------------------  WEDNESDAY -----------------------------

ACN    Accenture              Wed, Jan 9  Before the Bell   0.24
ATYT   ATI Technologies       Wed, Jan 9  -----N/A-----     0.04
LEN    Lennar                 Wed, Jan 9  Before the Bell   2.20
BPOP   Popular, Inc.          Wed, Jan 9  After the Bell    0.54
STI    SunTrust               Wed, Jan 9  Before the Bell   1.22

------------------------- THURSDAY -----------------------------

ACF    AmeriCredit            Thu, Jan 10  After the Bell   0.90
AVX    AVX Corporation        Thu, Jan 10  -----N/A-----    0.02
CMH    Clayton Homes          Thu, Jan 10  Before the Bell  0.19
CREE   Cree                   Thu, Jan 10  -----N/A-----    0.09
HCBK   Hudson City Bancorp    Thu, Jan 10  After the Bell   0.36
KBH    KB Home                Thu, Jan 10  Before the Bell  1.82
MTB    M&T Bank               Thu, Jan 10  -----N/A-----    1.00
MTG    MGIC Investment Corp.  Thu, Jan 10  Before the Bell  1.43
RATL   Rational Software      Thu, Jan 10  After the Bell   0.06
RAD    Rite Aid Corporation   Thu, Jan 10  -----N/A-----   -0.14
RI     Ruby Tuesday           Thu, Jan 10  -----N/A-----    0.21

------------------------- FRIDAY -------------------------------

BBT    BB&T                   Fri, Jan 11  Before the Bell  0.62
HAR    Harman Inter. Ind.     Fri, Jan 11  -----N/A-----    0.56


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

Upcoming Stock Splits This Week...

Symbol  Company Name         Splits  Payable    Executable
  
-- None --


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

Earnings season is just around the corner and the calendar
this week already shows the stream of releases are starting
to pick up.  The time for warnings has effectively passed
but investors will still be wary and negative news will probably
be punished severely.  Actual numbers are supposed to be pretty
disappointing but Wall Street seems optimistic and willing to
look ahead to the second half of the year.  Analysts and pundits
will be watching for the PPI report on Friday.


Monday, 01/07/02
----------------
None


Tuesday, 01/08/02
-----------------
Factory Orders         Nov  Forecast:  -2.6%  Previous:    7.1%
Consumer Credit        Nov  Forecast:  $4.7B  Previous:   $7.0B


Wednesday, 01/09/02
-------------------
None


Thursday, 01/10/02
------------------
Export Prices ex-ag.   Dec  Forecast:    N/A  Previous:   -0.4%
Import Prices ex-oil   Dec  Forecast:    N/A  Previous:   -0.6%
Initial Claims       01/05  Forecast:    N/A  Previous:    447K
Wholesale Inventories  Nov  Forecast:  -0.3%  Previous:   -1.0%


Friday, 01/11/02
----------------
PPI                    Dec  Forecast:  -0.2%  Previous:   -0.6%
Core PPI               Dec  Forecast:   0.1%  Previous:    0.2%




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

KYO     Kyocera Corp               70.45     +2.29
BSC     Bear Stearns Companies     62.10     +2.50
SFA     Scientific-Atlanta Inc     26.86     +0.55
NCR     Ncr Corp                   40.90     +1.92
RCL     Royal Caribbean Cruises    18.28     +1.50

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

SCH     Charles Schwab Corp        18.09     +1.24
BEAS    Bea Systems Inc            18.85     +1.85
ET      E*Trade Group Inc          12.29     +1.19
TSN     Tyson Foods Inc            12.54     +1.04
RHAT    Red Hat Inc                 8.25     +1.15

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

MWD     Morgan Stanley Dean Witter 59.64     +2.82
UPS     United Parcel Service      56.65     +1.19
WM      Washington Mutual Inc      33.73     +1.49
SNE     Sony Corp                  49.57     +2.32
MER     Merrill Lynch & Co         56.64     +2.98
SAP     Sap Ag Ads                 35.15     +1.38

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

KFT     Kraft Foods Inc            33.01     -1.07
CL      Colgate-Palmolive Co       56.24     -1.18
PCS     Sprint Corp PCS            22.45     -1.89
VRSN    Verisign Inc               36.31     -1.03
PPL     Ppl Corp                   32.34     -2.56
ADRX    Andrx Corp                 64.14     -6.21

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

UN      Unilever N.V.              56.72     -0.88
FNM     Fannie Mae                 78.45     -0.91
KG      King Pharmaceuticals Inc   40.00     -0.80
OCR     Omincare Inc               24.07     -0.10
MRX     Medicis Pharmaceutical     60.19     -0.61
BKH     Black Hills Corp           32.41     -0.58



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