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Daily Newsletter, Monday, 01/07/2002

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PremierInvestor.net Newsletter                 Monday 01-07-2002
                                                  section 1 of 2
Copyright  2001, All rights reserved.
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In section one:

Market Wrap:      Monday's Mix
Market Sentiment: Streak ends on profit taking.
Play-of-the-Day:  All That Glitters.
Watch List:       CERN, NVDA, RYAN, AGE, NCR, AGN, IONA

-----------------------------------------------------------------
U.S. Market Numbers
-----------------------------------------------------------------
MARKET WRAP  (view in courier font for table alignment)
-----------------------------------------------------------------
        01-07-2002        High      Low     Volume Advance/Decline
DJIA    10197.05 - 62.69 10300.15 10188.12 1.30 bln   1468/1675	
NASDAQ   2037.10 - 22.20  2081.09  2036.86 2.08 bln   1658/2008
S&P 100   594.41 -  4.20   600.65   593.56   totals   3126/3683
S&P 500  1164.89 -  7.62  1176.97  1163.55
RUS 2000  493.18 -  6.12   501.30   493.18
DJ TRANS 2821.39 +  8.81  2838.87  2817.50
VIX        22.09 +  0.07    23.31    21.98
Put/Call Ratio      0.70
-----------------------------------------------------------------

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

Monday's Mix

The market averages finished lower across the board to start the
week.  After last week's three-day bullish run, a little pullback
today wasn't out of the ordinary.  Decliners modestly outpaced
advancers on both the NYSE and Nasdaq markets.  Trading activity
was active with 1.3 billion shares exchanged on the NYSE and 2.1
billion shares traded on the Nasdaq.

The Dow Jones Industrial Average (INDU) closed at 10197.05, lower
by 62.69 points, or 0.61 percent.  The S&P 500 (SPX) shed 7.62
points, or 0.64 percent, to close at 1164.89.  And the Nasdaq-100
(NDX) dropped by 25.20 points, or 1.50 percent, to settle at the
1649.83 level.

Sector Check




Despite the weakness in Nasdaq-100, there were three technology
sectors that finished higher in Monday's session.  Those three
included the AMEX Networking Index (NWX), the CBOE Internet Index
(INX), and the AMEX Disk Drive Index (DDX).  The three finished
only fractionally higher, but higher nevertheless.  The weakest
sectors of technology were the Fiber Optic Index (FOP), the
Philly Semiconductor Index (SOX), and the Philly Box Maker Index 
(BMX).  The 2.71 percent drop in the FOP came in light of the
aforementioned strength in the broader networking gauge, the NWX.
Additionally, the weakness in the SOX and BMX was on the heels of
upgrades in shares of Dell Computer (NASDAQ:DELL) and Microsoft
(NASDAQ:MSFT).  Needless to say, there were a few mixed signals
in the technology segment of the market Monday.

Elsewhere, a pullback in the financials prevented the SPX from
moving higher.  The KBW Bank Sector Index (BKX) traded higher
early in the day, but then pulled back into the close.  Last
Friday, the BKX broke out from a six week consolidation.  A
similar breakout occurred in the AMEX Securities Broker/Dealer
Index (XBD) last Friday.  But it, too, slightly pulled back in
Monday's session.  For the day, the BXK finished 0.24 percent
lower to 878.64 and the XBD lost 1.44 percent, closing at the
545.68 mark.

The best-performing sector Monday was the Philadelphia Gold and
Silver Index (XAU).  The gold-bug-loving group of stocks
collectively finished 1.64 percent higher at 56.87.  The leaders
in the group for Monday were Freeport McMoran (NYSE:FCX) with a
3.77 percent gain, Agnico Eagle Mines (NYSE:AEM) with a 2.52
percent gain, Phelps Dodge (NYSE:PD) with a 2.39 percent gain,
and good ole' Barrick Gold (NYSE:ABX) with a 1.86 percent gain.

The XAU broke above an important resistance level Monday with
its advance past the 57.00 level.  That level had served as
resistance on three recent breakout attempts.  Monday's move
generated a triple-top buy signal and reversed the sell signal
that immediately preceded today's breakout.

point-and-figure chart




(Source: www.stockcharts.com)

The breakout Monday further revealed the market's expectations
for inflationary pressures in the next six to nine months.
Hedging against inflation with the commodity and gold stocks may
not be the best means of protecting capital, but don't tell that
to the buyers in Placer Dome (NYSE:PDG).  An active Premier
Investor long play, PDG followed the XAU higher Monday.  The
stock tacked on 1.80 percent during the day, closing a nickel
off of its intraday high.

Another of Premier Investor's active long plays in Apache
(NYSE:APA) performed well in Monday's session.  The stock
added 2.47 percent on the back of further strength in the PHLX
Oil Service Index (OSX).  The OSX finished higher by 0.55
percent Monday.  The advance in the OSX could've reflected
continued market expectations for a rebound in the trimming
of supply and building of demand in the energy space.

Turning away from energy, the AMEX Biotechnology Index (BTK)
finished lower in Monday's session by 2.07 percent.  The
BTK has been weak recently, following several disappointing
developments in the group.  The index did reverse last Friday,
after three consecutive days of heavy selling, but didn't
follow-through to the upside in Monday's session.  The BTK
did gap higher Monday morning on an upgrade of Amgen
(NASDAQ:AMGN), which is the world's biggest biotech company.
Even though AMGN finished fractionally higher for the day,
the BTK still shed more than 2 percent, which outpaced the
NDX's decline.

Like Jeff Bailey, I believe that the BTK is important to the
broader market averages, specifically the Nasdaq-100.  The
BTK has lost a significant amount of relative strength versus
the NDX since early December, and continued along that trend
in Monday's session.  Early last fall, the BTK was displaying
signs of strength, which lead to a powerful rally off of the
September 21 low.  The rest of the Nasdaq soon followed.  It's
too early to draw a similar conclusion about the BTK and
whether or not it will lead the Nasdaq lower.  But we'll be
able to more intelligently reach a conclusion by monitoring
support levels in the BTK during this week's trading.  

The BTK rebounded from the 540 level last week, which is the
site of the 38.2 percent retracement level.  In addition,
the BTK's 200-dma rests at the 540 level.  On the chart below,
you can see that the BTK rebounded from the 540 three times
in the recent past, which reinforces its importance.  It's
crucial for this level to hold as it relates to the rest of
the Nasdaq market because of its inclusion of so many biotech
stocks.

chart of the Biotech index




Earnings Impact

Monday's pullback in the averages was partially blamed on
jitters over corporate earnings.  After all, fourth-quarter
earnings season is just around the corner.  A number of
companies kicked things off after the bell, issuing various
updates and warnings.

AOL-Time Warner (NYSE:AOL) said that its first-quarter
revenue would be flat.  The company also said that it was
not discounting any economic recovery in its business models
for 2002.  Despite the warning, which was highly telegraphed,
the stock traded higher in the after hours session by about
$1.  Because of the media reports expecting a warning from
the company, the news appeared to be already priced into the
stock.  Several analysts issued late research notes,
stating that much.

Chip equipment maker Altera (NASDAQ:ALTR) said that its
revenues would come in slightly lighter than expected for
its fiscal third-quarter, but a company official said that the
bottom of the downturn has been reached.  Shares of the SOX
component added more than $1 in evening trade.

Box maker Gateway (NYSE:GTW) also offered guidance after the
bell.  The company said that it would achieve profitability
during its fourth-quarter, but that revenues would come in
lower than previously guided.  Unlike the other warnings,
Gateway's was not well-received by investors in the after
hours session.  The stock slid lower by about 25 cents.

The earnings calendar is pretty quiet over the next two days,
with a small number of financial and housing stocks reporting.
The number of earnings reports increase in frequency
Thursday.  Some of the companies reporting Thursday include
Acclaim (NASDAQ:AKLM), Cree (NASDAQ:CREE), Rambus (NASDAQ:RMBS),
Rational Software (NASDAQ:RATL), and Rite Aid (NYSE:RAD).

This week's economic calendar is light, with the biggest
report coming Friday in the producer price index (PPI).  The
consensus is for a 0.2 percent decline in the PPI and for a
0.1 percent increase in the PPI core.  It will be interesting
to observe how the XAU trades around the PPI number Friday.
It could help to confirm, or deny for that matter, any
expectations for future inflation.

Eric Utley
Premier Investor


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

Streak ends on profit taking.
by Russ Moore

After the start we’ve had to this year’s market, it shouldn’t 
have come as much of a surprise to see investors “lock in” some 
of those gains.

The DOW ended with a loss of -0.6 percent while the NASDAQ 
dropped -1.1 percent and the NDX -1.5 percent. Volume remained 
steady with 1.32 billion shares trading on the big board and 2.09 
billion moving on the NASDAQ. Losers trumped winners by a 17/15 
count on the NYSE and 20/17 on the tech index.

Gold was the best performing sector on the day with the XAU 
adding +1.54 percent. Other winners included oil service, utility 
and natural gas. On the tech side, networking was the only sector 
closing in the green.

Today’s action featured analyst ratings on both sides of the 
fence. Downgrades were handed out to Coca-Cola (KO) and General 
Electric (GE) while upgrades went to Microsoft (MSFT), BEA 
Systems (BEAS) and Compaq Computer (CCPQ).

Nothing in the way of economic reports but we did get some 
“econo-babble” to help clarify the future. Stephen Roach of 
Morgan Stanley, believes we will lapse back into recession just 
when recovery is thought to be at hand. He pointed to the 
"double-dip" of 81’-82’ as an example and thinks we have already 
seen the first dip. Merrill Lynch’s, Bruce Steinberg, has a 
completely different viewpoint. He sees GDP growth of 5.0 percent 
for the second half of 02’ and 4.0 percent growth for 03’, enough 
to give us reasonable performance on the equity markets. How’s 
that for clarity?

Trim Tabs continues to hold a bearish view of the markets. The 
funds flow tracker thinks corporate investors are bearish and 
unless that changes, there won’t be enough cash around to fund 
the onslaught of new offerings, putting the current rally at 
risk.

Are stock prices getting too far ahead of earnings? That’s the 
64-million dollar question. As we stated last week, it’s only a 
matter of time before buying on faith runs out of steam and 
investors demand real earnings.


Monday 01/07 close: 22.09


VXN
Monday 01/09 close: 47.89


30-yr Bonds
Monday 01/09 close: 5.49


Total Put/Call Ratio: .70


Equity Option Put/Call Ratio: .61


Index Option Put/Call Ratio: 1.85


===

NASDAQ 100 Index (NDX/QQQ)
52-Week High: 103.51
52-Week Low:   28.19
Current close: 41.21

Volume/Open Interest
Maximum calls: 40/129,493
Maximum puts : 40/ 97,235

Moving Averages
 10 DMA 40
 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: 594.41

Volume/Open Interest
Maximum calls: 590/4,819
Maximum puts : 520/4,814
Moving Averages
 10 DMA  590
 20 DMA  585
 50 DMA  581
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: 1164.89

Volume / Open Interest
Maximum calls: 1150/39,410
Maximum puts : 1150/36,948
Moving Averages
 10 DMA 1156
 20 DMA 1147
 50 DMA 1133
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: 10,197.05

Volume / Open Interest
Maximum Calls: 100/13,851
Maximum Puts   100/29,448

Moving Averages:
 10 DMA 10,115
 20 DMA 10,021
 50 DMA  9,818
200 DMA 10,094

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: 559.54

Volume / Open Interest
Maximum Calls: 660/  354
Maximum Puts:  580/1,150

Moving Averages
 10 DMA 579
 20 DMA 578
 50 DMA 580
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: 580.28

Volume / Open Interest
Maximum Calls: 440/ 847
Maximum Puts:  500/2,401

Moving Averages
 10 DMA 545
 20 DMA 549
 50 DMA 527
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: 375.55

Volume / Open Interest
Maximum Calls: 400/525
Maximum Puts:  360/835

Moving Averages
 10 DMA 382
 20 DMA 382
 50 DMA 389
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.




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

Placer Dome - PDG - close: 11.85 change: +0.21 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)

- ORIGINAL WRITE UP: Jan. 4th, 2002 -

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.

- Play of the Day comments, Monday, Jan. 7th, 2002 -

Traders should keep their eyes on the Gold/Silver index (XAU.X).  
Monday's close put it above the most recent high in December.  The 
difference isn't very much so we'd like to see confirmation 
tomorrow.  If investors follow through on the move, it may be 
enough to get PDG above the $12 level.  If not, we would look for 
a potential pull back in shares of PDG to the 11.60-11.50 level.  
A bounce here may be a potential entry point for a new long play.

Picked on January 4th at $11.64 
Change since picked:      +0.21
Earnings Date          10/24/01 (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.

-----------

Cerner Corp - CERN - close: 48.23 change: -0.37

WHAT TO WATCH: Basically a computer networking company, investors 
have not supported shares of CERN in the recent tech bullishness.  
Shares topped out near $60 in mid-October and have withered back 
to its 200-dma near $48 over the last couple of months.  Earnings 
are expected on January 24th, 2002.  However, unless they produce 
some positive press, the bears might maul the stock price before 
earnings ever come out.  A breakdown below the 200-dma (47.50) 
could be a good trigger point for a short.  It is possible the 
stock could rally from this support level but we wouldn't put any 
faith in it until it cleared the $53 level.




---

NVIDIA corp - NVDA - close: 67.75 change: -1.87

WHAT TO WATCH: The trading maxim is "the trend is your friend" 
but this bullish trend on NVDA is looking pretty extended.  Those 
willing to trust in the trend could see this two-day pull back to 
the 15-dma as an entry point.  Granted, we would use a pretty 
tight stop.  If you think NVDA needs to do some more serious 
consolidation, then look for a breakdown under $65.  Earnings are 
expected in February.




---

Ryan's Family Steak Houses - RYAN - close: 23.22 change: +1.00

WHAT TO WATCH: We haven't seen any big news but volume for RYAN 
was off the charts today with almost 2M shares trading.  Average 
volume is only 225K a day.  The stock appears to be working on a 
triple top at $23.50.  A breakout could be very powerful, but 
likewise, failure to do so at a triple top is normally very 
bearish.  MACD just turned bullish but we would still wait for 
shares to trade above $23.50 before considering a long.  
Otherwise, a trip back to the $20.50 level is probably in store 
for RYAN.  Interestingly, shares of Outback Steak House 
(NYSE:OSI) are also doing pretty well.  RYAN Earnings are 
expected near Jan. 30th, 2002.




---

A G Edwards Holding - AGE - close: 45.58 change: -0.32

WHAT TO WATCH: The positive comments about the broker/dealer 
sector on Friday helped lift most of the industry's stock prices.  
AGE was no exception.  Shares gapped up above steep resistance at 
$45 but fell back a bit heading into the weekend.  The profit 
taking resumed today but we think a bounce near $45 may be a good 
entry point for a long play.  The MACD had slowly been flattening 
out and now the recent move has pushed it higher.  Look for the 
bounce.




---

NCR Corp - NCR - close: 41.66 change: +0.76

WHAT TO WATCH: Shares of NCR have been hot for the last five 
straight sessions.  The recent rally began on Dec. 31st with a 
quick bounce off the late December support of $36.00.  From 
there, shares have been climbing higher with rising volume every 
day since.  We'd love to know what's driving the new interest in 
the stock.  The breakout above resistance at $40 and its 200-dma 
is very positive.  We don't recommend chasing it but a pull back 
to the $40 level may be a good entry point to consider a long 
play.  




---

Allergan Inc - AGN - close: 69.72 change: -0.83

WHAT TO WATCH: Drug stocks haven't been the hottest sector in 
2002 and the DRG.X index is about to breakdown below support near 
375.  In a similar fashion, AGN has been trading lower but shares 
of this company have actually closed below support at $70.  We 
think shares may have more weakness in store and shorts can be 
looking for potential entry points.  Earnings are expected on 
January 22nd, 2002.




---

IONA Technologies - IONA - close: 26.00 change: +2.20

WHAT TO WATCH: Shares of IONA have vaulted higher the last three 
sessions moving from support near $20 to breakthrough resistance 
at its 200-dma and price resistance at $25.  The MACD has just 
turned positive and volume has been much stronger the last couple 
of sessions.  The headlines mentioned some sort of new 
partnership or alliance and investors must approve.  Earnings are 
expected on Jan. 23rd, 2002.  The stock looks pretty short-term 
extended and bulls may want to look for pull backs as potential 
entry points after finishing their due diligence.








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is possible at this or some subsequent date, the editors and
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PremierInvestor.net Newsletter                  Monday 01-07-2002
                                                   section 2 of 2
Copyright  2001, All rights reserved.
Redistribution in any form is strictly prohibited.

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In section two:

High Risk/High Rewaard
  Bullish Play Updates: ADCT 
  Closed Bullish Play:  INKT
  

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

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

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

  -------------------
  Bullish Play Update
  -------------------

ADC Telecommunications - ADCT - cls: 5.68 chg: +0.30 stop: 5.06*new*

Shares of ADCT turned in yet another strong day with a +5.5% gain 
on very strong volume of 17.9M shares.  The weakness in the 
Nasdaq helped bring ADCT back to $5.12 intraday but buyers 
stepped in and most of the volume showed up in the last couple of 
hours pushing the share price higher.  We are going to adjust our 
exit price from $5.95 to $5.90, which is just a few cents below 
its 200-dma.  If shares trade there intraday we'll close the play 
for a profit.  We've also adjusted our stop to breakeven at 
$5.06.  Normally, with a play up over 12% we would try and place 
the stop in a position that would try and ensure a profit of some 
kind.  However, anyone looking at the chart can see the 
volatility produced today and we don't want to get stopped out 
too early.  More conservative traders may want to consider a stop 
just under $5.50.  

Picked on January 3rd at $ 5.06
Change since picked:      +0.62
Earnings Date          11/28/01 (confirmed)





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

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


Inktomi Corp - INKT - close: 7.17 change: -0.13 stop: 6.94

The pull back in the Nasdaq today was enough to let INKT slip to 
$6.92 and stopping us out a couple of cents above that.  If the 
tech heavy Nasdaq pulls back to 2000 or 1950 then INKT might slip 
to $6.75 or $6.50.  More aggressive traders can look for a bounce 
but INKT's inability to hold above $7.50-$7.25 makes us 
skeptical.  Don't forget that INKT is expected to announce 
earnings on Jan. 16th.  Also in the news today was a release 
stating that INKT's CEO will speak at the Morgan Stanley Internet 
Software and Networking Conference tomorrow morning.  If he 
offers strong enough positive comments, the stock might see a 
boost.  We are closing the play with a +5.9% move.

Picked on December 28th at $ 6.55
Gain since picked:          +0.39
Earnings Date            01/16/02 (confirmed)







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

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

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

BA      Boeing Co                  41.00     +0.64
CBSS    Compass Bancshares Inc     28.81     +0.69
TOM     Tommy Hilfiger Corp        15.14     +0.61
COHR    Coherent Inc               34.09     +1.49
AMRN    Amarin Corp                19.49     +1.10
REHB    Rehabilicare Inc            5.45     +0.55

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

BEAS    Bea Systems Inc            19.90     +1.05
LGTO    Legato Systems             16.35     +1.19
PEGS    Pegasus Solutions Inc      17.05     +1.15
MFLO    Moldflow Corp              16.75     +1.85
CRDS    Crossroads Systems Inc      6.29     +1.33
TRF     Templeton Russia Fund      19.95     +1.07

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

BK      Bank of New York Co        43.95     +1.34
PNC     Pnc Financial Services     60.76     +1.38
FDX     Fedex Corp                 55.27     +1.19
INFY    Infosys Technologies       72.21     +5.55
MGA     Magna Intl. Inc            68.46     +1.64
CC      Circuit City               29.75     +2.29
CMVT    Comverse Technology Inc    26.93     +1.18

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

KO      Coca-Cola Co               45.22     -1.21
V       Vivendi Ads                52.90     -3.40
FNM     Fannie Mae                 76.15     -2.30
QCOM    Qualcomm Inc               47.20     -3.21
PCS     Sprint Corp                21.28     -1.17
VRSN    Verisign Inc               34.05     -2.26

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

COST    Costco Wholesale Corp      44.12     -0.67
DST     Dst Systems Inc            47.45     -2.35
DLTR    Dollar Tree Stores Inc     29.74     -0.46
ADVP    AdvancePCS                 29.75     -1.62
TECH    Techne Corp                35.18     -1.19



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