Option Investor
Newsletter

Daily Newsletter, Wednesday, 01/23/2002

HAVING TROUBLE PRINTING?
Printer friendly version
PremierInvestor.net Newsletter              Wednesday 01-23-2002
                                                  section 1 of 2
Copyright  2001, All rights reserved.
Redistribution in any form is strictly prohibited.

The entire newsletter is best viewed in COURIER 10 for alignment
=================================================================
To view this email newsletter in HTML format with imbedded
charts and graphs, click here:
http://www.PremierInvestor.net/htmlemail/3118_1.asp
=================================================================

In section one:

Market Wrap:      Wal-Mart's 52-weeker has spotlight on retail.
Watch List:       UNP, AFFX, NSIT, TMX
Market Sentiment: Easy does it.

-----------------------------------------------------------------
U.S. Market Numbers
-----------------------------------------------------------------
MARKET WRAP  (view in courier font for table alignment)
-----------------------------------------------------------------
      01-23-2002          High     Low     Volume Advance/Decline
DJIA     9730.96 + 17.16  9773.37  9680.51 1.44 bln   1963/1154
NASDAQ   1922.38 + 39.85  1925.15  1879.24 1.83 bln   2189/1407
S&P 100   573.63 +  3.00   576.18   568.67   Totals   4152/2561
S&P 500  1128.18 +  8.87  1131.94  1117.43
RUS 2000  477.45 +  8.02   477.45   468.04
DJ TRANS 2755.63 + 95.93  2755.63  2658.21
VIX        23.66 -  1.44    25.86    23.54
VXN        48.15 -  2.22    51.42    48.03
TRIN        0.73
Put/Call    0.42
-----------------------------------------------------------------

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

Wal-Mart's 52-weeker has spotlight on retail

Dow component and discount retailer Wal Mart (NYSE:WMT) jumped 
another 3% today to a new 52-week closing high of $59.86 and 
helped the Dow Industrials eek out a 17-point gain.  Wal Mart's 
(WMT) rise also had the S&P Retail Index (RLX.X) looking like it 
might challenge a recent 52-week high with a 1.89% as equity 
bulls placed some bets that the consumer will drive earnings in 
the group.

Wal Mart Chart - Daily Interval




"Everyone needs toilet paper and toothpaste, and they're the most 
efficient at selling it," exclaimed Eric Beder, retail analyst at 
Ladenburg, Thalmann & Company.  "It's really an incredible 
story."  Wal-Mart, based in Bentonville, Arkansas, reported 
$203.66 billion in sales through December.  In January 2001, Wal-
Mart reported $16.7 billion in sales.  Some analysts are pointing 
to the "conservative assumption" that Wal-Mart, with no sales 
growth in January 2002 (not expected, but to prove a point) will 
have revenue for fiscal 2001 that surpasses the $220 billion mark 
and make it Fortune Magazine's worlds largest company based on 
sales.  ExxonMobil (NYSE:XOM) had $219 billion in revenue.  

Part of what is driving WMT's stock the recent two sessions is 
Kmart's (NYSE:KM) announcement from yesterday that it is filing 
for Chapter 11 bankruptcy and plans to close stores in a 
restructuring program.  Market participants are making the 
logical tie that WMT may benefit from future Kmart store 
closings.

If retail stocks continue their torrid pace, bullish traders 
looking for some exposure to the group may want to consider 
shares of JC Penney (NYSE:JCP).  Subscribers will remember a nice 
bullish trade in JC Penney from December 13th profile at $23.08 
and eventual profiled stop of $26.19 on January 2nd.  Technicals 
look good for a bullish play tomorrow as the stock looks like 
she's ready to make a move out of recent consolidation.

J.C. Penney Chart - Daily Interval




Shares of JCP stuck their head back above the still trending 50-
day moving average and volume picked up a bit at 2.5 million 
shares today after a nice pullback from $27.75.  When we've had 
success in a stock and it has treated us well, I don't mind 
playing it again.  A stop just under the recent low of $24.63 
would serve as a short-term trader's stop, while a rising 200-day 
moving average and upward trend at $24 could serve as a longer-
term bull's stop.

Not all tech saw gains

I'm going to remain cautious on technology stocks right now.  
Maybe I'm just "too conservative," but I'm looking at two 
technology heavyweights in the Dow Industrials (INDU) that had 
been leader for technology that sure didn't participate in 
today's gains.  Shares of International Business Machines 
(NYSE:IBM) fell 2.3% to $107.90 and Microsoft (NASDAQ:MSFT) fell 
1.11% to $63.74.  Today's "tech rally" smells of short covering 
and some short-term profits being locked in by technology bears.  
IBM has fallen roughly 14% in the past 10-sessions and if the 
MARKET was thinking bullish thought for many technology stocks, 
then IBM's decline back below its 200-day moving average looks 
most suspicious.

International Business Machines Chart - Daily Interval




In late September, shares of IBM found their bottom near $91 and 
vaulted higher to the $126 level.  Recently, the shares have 
weakened with broader technology and today's further weakness, 
couple with a still declining NASDAQ-100 bullish percent has me 
very cautious toward technology stocks.  

Tomorrow at 10 AM EST

Some equity bulls will blame Mr. Greenspan for the recent decline 
in stocks after a speech given two weeks ago in which Mr. 
Greenspan sent some mixed signals about the health of the 
economy.  While he mentioned there were indeed signs of economic 
recovery, he cautioned that there were still significant risks to 
the recovery.

Tomorrow at 10:00 AM EST, I'm thinking the equity markets will 
practically come to a standstill as the Federal Reserve Chairman 
(Mr. Greenspan) is scheduled to testify before the Senate Budget 
Committee.  He will certainly be asked for his views on fiscal 
policy, but financial markets will be focusing on his views of 
the economy's strength, and how the strength/weakness of the 
current economic environment should play into various budget 
decisions.

I expect Mr. Greenspan to smooth over his comments from a couple 
of weeks ago and reiterate that there are signs of economic 
recovery, but in a more mellow tone, still give senate members 
that the economic recovery remains suspect and their fiscal 
decisions toward fiscal stimulus still require careful 
consideration.

Tonight earnings

I don't see any earnings tonight that look like they are going to 
budge traders before tomorrow's Greenspan testimony.  Most of the 
earnings were inline with expectations.  Here's some rather quick 
commentary of what was going on at the time of after-hours 
earning's releases.

Amgen (AMGN) $58.46 +4.2% ... reported earnings profit of $0.30 a 
share, which was less than consensus looking for $0.31 a share.  
Revenues rose 18.2% in quarter vs. year-ago comparison.  Stock 
trading down $0.81 at $57.65.

Corning (GLW) $8.32 -1.65%... reported loss of $0.28 a share 
worse than consensus compiled by Zacks for loss of $0.22, but 
better than consensus of $-0.29 a share compiled by Multex.  
Regardless ... stock trading higher by 6 cents from close at 
$8.38.

Broadcom (BRCM) $45.38 +4.2% ... reports loss of $0.11, which was 
penny better than consensus for loss of 12 cents.  Stock trading 
fractionally lower than close at $45.30.

Citrix Systems (CTXS) $20.31 +4.1% ... reported earnings profit 
of $0.21, penny better than consensus $0.20 a share earnings.  
Stock trading up $1.05 at $21.36 in after-hours action.

F5 Networks $19.02 -0.57% ... reported loss of 8 cents a share, 
penny better than consensus for loss of 9 cents.  Revenues up 
just 9.3% year-over-year.  Stock trading down $1.50 at $17.50.

Flextronics (FLEX) $23.72 +8.85% ... reported profit of 16 cents 
a share, earnings were inline with consensus of 16 cents a share.  
Revenues grew 6.6% vs. year-ago levels.  Stock trading down 
fractionally at $23.67.

KLA-Tencor (KLAC) $51.50 +7.6% ... reported profit of 25 cents, 
which is penny better than consensus of 24 cents a share.  Stock 
trading fractionally lower at $51.40.

SanDisk (SNDK) $13.63 +6.4% ... reports earnings loss of 23 cents 
a share, which is much better than consensus looking for a loss 
of 64 cents a share.  Stock jumping higher at $16.  Company said 
"better than expected" due to provisions for lower tax rates.

QLogic (QLGC) $51.02 +5.93% ... reports earnings profit of 20 
cents a share, penny better than consensus looking for profit of 
19 cents.  Stock trading down $2.32 at $48.70 in after-hours.

Immunex (IMNX) $29.07 +4.87% ... reported earnings profit of 8 
cents a share, penny better than consensus looking for 7 cents a 
share.  Stock trading down fractionally at $28.75.  Will make 
note this has been one of the better performing relative strength 
stocks in biotech.

Today's misunderstanding

Twist a few words and it could be costly.  That's what 
may have happened today to some traders in the bond pits.  I 
didn't get the full story, but CNBC did report that some bond 
traders may have misunderstood some comments from a Fed member 
regarding the future buyback plans of the Treasury as it relates 
to Treasury's policy for continued buyback of certain Treasury 
bonds.  YIELDS rose rather markedly today as the 10-year YIELD 
broke above the 5.0% level (I felt a move above the 5.0% level 
may spark further gains for stocks), but just before the close of 
the bond market, the Fed quickly cleared things up that there 
were NOT any comments made about the Treasury department 
discontinuing their debt retirement.

The only comment I made that was "bullish" toward stocks was for 
equity bulls to keep an eye on shares of JC Penney (NYSE:JCP) as 
a bullish play for their accounts on a break above the $25.75 
level.  I will make note here that JCP is scheduled (unconfirmed) 
to report earnings on February 12th, before the opening of 
trading.  Analysts are looking for the company to report earnings 
of $0.28 a share versus a year-ago loss of $-0.03 a share.

Jeff Bailey
Senior Market Technician


==========
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.

----------

Union Pacific - UNP - close: 59.95 change: +1.45

WHAT TO WATCH: The Dow Jones Transports index rallied strongly 
off its 200-dma on Thursday and UNP followed suit with its own 
rally towards resistance at $60.  The stock appears to have 
additional overhead resistance at its 52-week highs near $60.60 
but the recent trend has been bullish.  Traders should watch for 
its earnings report tomorrow and see if it proves to be a strong 
enough catalyst to power the stock through these resistance 
levels.  The MACD is starting to curve higher again but the price 
action needs to follow through.




---

Affymetrix, Inc. - AFFX - close: 38.35 change: +1.49

WHAT TO WATCH: A nice rebound in the flailing biotech sector 
helped several major stocks in the group make decent gains.  We 
looked at several of them and noted that AFFX has held up 
reasonably well while others have been getting hammered in the 
market place.  AFFX has earnings next Wednesday on January 30th 
and while we're not expecting any surprises it may draw a bit 
more attention than its counterparts if the BTK.X can continue to 
rebound.  The MACD is trying to bottom near the zero line and it 
could produce a bullish crossover soon.  We would look for a move 
in the stock price back over the $40 level.  Stronger 
confirmation would be seen if shares could close over the $41 
level which has been resistance twice in recent history.




---

Insight Enterprises Inc - NSIT - close: 25.20 change: +1.38

WHAT TO WATCH: This direct marketer and Internet retailer of 
computer hardware and software has made very strong gains over 
the last few months.  It would appear that shares have been 
consolidating these gains for the last three weeks but the big 
volume move higher today may be a signal that the up trend is 
ready to continue.  Wall Street expects NSIT to announce earnings 
next week on January 31st.  The stock has overhead resistance at 
$26 and again at its 52-week highs between $26.50 and $27.00.  If 
the trend continues we don't expect the old highs to be a 
challenge.  Watch for the stock to close over $26 but don't 
forget about its up coming earnings.




---

Telefonos De Mexico - TMX - close: 39.09 change: +1.77

WHAT TO WATCH: Finally, a telecom stock with an up beat outlook.  
At least that is what the recent headlines said for TMX.  The 
stock has been building on a short-term bullish trend and this 
strong volume breakout to the upside looks encouraging.  We would 
not chase the stock here but might look for a pull back to the 
$38 level before evaluating an entry point.  A glance at its 
point-and-figure charts show the stock producing a triple top 
breakout buy signal.  As a Mexican ADR we don't have any earnings 
info so this is a wildcard to be aware of.






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

Easy does it.
by Russ Moore

Investors continue to gather in the "cautious camp", awaiting 
clear-cut evidence that a corporate turnaround is nearby.

The markets did enjoy a positive close thanks to a strong 
performance in the tech sector. The SOX index was the driving 
force behind the tech move, due largely to a basket of chip 
equipment upgrades by J.P.Morgan. Adding to the upgrades was a 
report from Semiconductor Equipment and Manufacturing 
International showing North American based equipment makers with 
an increase in shipments and orders for December. The increase 
was the first since last December.

The NASDAQ added +2.1 percent while the NDX gained +3.1 percent. 
The blue chip DOW struggled, but still ended on the upside with a 
gain of +0.2 percent. Volume was moderate with 1.4 billion shares 
moving on the big board and 1.81 billion on the tech index. 
Winners turned the table on the losers with a 19/12 victory on 
the DOW and 21/14 on the NASDAQ.

Broader markets saw oil, oil service, biotech, drug and biotech 
sectors attracting the lion’s share of buyers while the gold 
sector was all alone in the minus column. Chip, software and 
hardware stocks were the leaders on the NASDAQ.

Investors will be paying close attention to Mr. Greenpsan’s 
upcoming speech. You’ll recall the last time the Fed chief spoke 
he failed to paint the rosiest of pictures going forward. With 
the FOMC meeting right around the corner, Mr. Greenspan might 
take this opportunity to set the stage for a “hold-the-line” 
stance next week. That would probably suit investors just fine, 
after-all, things must be improving if the rate cuts are at an 
end. At least, that’s the perception.


VIX
Wednesday 01/23 close: 23.66


VXN
Wednesday 01/23 close: 48.15


30-yr Bonds
Wednesday 01/23 close: 5.46


Total Put/Call Ratio: .50


Equity Option Put/Call Ratio: .45


Index Option Put/Call Ratio: 1.13


===

NASDAQ 100 Index (NDX/QQQ)
52-Week High: 103.51
52-Week Low:   28.19
Current close: 38.43

Volume/Open Interest
Maximum calls: 40/43,965
Maximum puts : 38/69,055

Moving Averages
 10 DMA 39
 20 DMA 40
 50 DMA 40
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: 573.62

Volume/Open Interest
Maximum calls: 580/4,071
Maximum puts : 520/6,462

Moving Averages
 10 DMA  580
 20 DMA  585
 50 DMA  585
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: 1128.18

Volume / Open Interest
Maximum calls: 1150/27,431
Maximum puts : 1150/25,088
Moving Averages
 10 DMA 1138
 20 DMA 1148
 50 DMA 1143
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:  9,730.89

Volume / Open Interest
Maximum Calls:  98/11,024
Maximum Puts    90/17,087

Moving Averages:
 10 DMA  9,874
 20 DMA 10,000
 50 DMA  9,931
200 DMA 10,103

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: 542.03

Volume / Open Interest
Maximum Calls: 520/301
Maximum Puts:  520/514

Moving Averages
 10 DMA 540
 20 DMA 558
 50 DMA 575
200 DMA 544

Fibanocci Retracements
Relative High: 811.61 (09/25/00)
Relative Low:  383.28 (03/22/01)
38% 546.22
50% 596.57
62% 646.71

==

Semiconductor Index (SOX)
52-Week High: 1280.84
52-Week Low:   362.00
Current close: 520.52

Volume / Open Interest
Maximum Calls: 570/961
Maximum Puts:  540/470

Moving Averages
 10 DMA 546
 20 DMA 549
 50 DMA 541
200 DMA 553

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: 384.04

Volume / Open Interest
Maximum Calls: 380/  51
Maximum Puts:  380/1325

Moving Averages
 10 DMA 378
 20 DMA 379
 50 DMA 386
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, 02/18. 
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 
01/01/02     338,288   407,107   (68,729)   17.1% 
01/08/02     333,742   398,283   (64,541)   (6.1%)
01/15/02     340,005   397,024   (57,019)  (11.7%)

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
01/01/02       127,419    55,576    71,843    (1.6%)
01/08/02       130,335    60,780    69,555    (3.1%)
01/15/02       129,987    64,311    65,676    (5.5%)

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 
01/01/02      29,801    37,497    (7,696)
01/08/02      30,786    37,457    (6,671)    (13.3%)
01/15/02      32,068    34,859    (2,791)    (58.1%)

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
01/01/02       10,649     5,913    4,736   
01/08/02       10,073     6,404    3,669    (22.5%)
01/15/02       10,230     9,782      448    (87.8%)

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 
01/01/02      15,820     7,553    8,267      1.3%
01/08/02      15,921     7,981    7,940     (3.9%)
01/15/02      15,866     9,175    6,691    (15.7%)

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
01/01/02       3,368     8,668    (5,300)     10.6%
01/08/02       4,380     9,188    (4,808)     (9.3%)
01/15/02       4,979     8,747    (3,768)    (21.6%)

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        +65,676     +69,555        -57,019    -64,541

Total Open
Interest %       (+33.80%)  (+36.39%)      (-7.74%)   (-8.82%)
                 net-long   net-long       net-short  net-short


                     Small Specs             Commercials
DJIA futures     (Current) (Previous)    (Current) (Previous)
Open Interest
Net Value          -3,768     -4,808          +6,691    +7,940
Total Open
interest %       (-27.45%)    (-35.44%)      (+26.72%)  (+33.22)
                 net-short   net-short     net-long    net-long


                     Small Spec              Commercials
NASDAQ 100      (Current) (Previous)    (Current) (Previous)
Open Interest
Net Value         +448      +3,669         -2,791    -6,671

Total Open
Interest %        (+2.24%)   (+22.27%)     (-4.17%) (-9.78%)
                 net-long   net-long      net-short  net-short


What COT Data Tells Us
----------------------
Indices:. Slight shift by the Commercials as they reduced their 
net-short position by a small percentage on the S&P 500. Nothing 
to get too excited about though, remember, we’re looking for 
increased divergence, and this week the Small Specs were also 
lightening up on their net-long positions.

Gold: After peaking at 61.04 on Wednesday, the XAU (gold and 
silver index) has fallen to today’s close of 58.34. The fact that 
the Commercial players were busy loading up on short contracts 
(moving from 24,042 to 53,938) on Tuesday, might have had just a 
little influence on the index’s demise.

12/18 15,198 contracts net-short
12/25 11,976 contracts net-short
01/01 14,555 contracts net-short
01/08 24,042 contracts net-short
01/15 53,938 contracts net-short

Data compiled as of Tuesday 01/15 by the CFTC.



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

No play of the day today.




=================================================================
To stop receiving this PremierInvestor.net Newsletter,
send email to Contact Support
=================================================================
DISCLAIMER
=================================================================

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

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

*****************************************************************
ADVERTISING INFORMATION

For more information on advertising in PremierInvestor.net
Newsletter, or any Premier Investor Network newsletter please
contact Contact Support.

*****************************************************************


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



PremierInvestor.net Newsletter               Wednesday 01-23-2002
                                                   section 2 of 2
Copyright  2001, All rights reserved.
Redistribution in any form is strictly prohibited.

The entire newsletter is best viewed in COURIER 10 for alignment
=================================================================
To view this email newsletter in HTML format with imbedded
charts and graphs, click here:
http://www.PremierInvestor.net/htmlemail/3118_2.asp
=================================================================

In section two:

Stock Bottom (non-tech stocks)
  Closed Bearish Plays: ADRX     
  
High Risk/Reward
  Closed Bearish Plays: ALTR 

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


==================================================================
StockBottom/Active Trader (AT) section
==================================================================

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

  -------------
  Bearish Plays
  -------------

Andrx Group - ADRX - close: 62.08 change: +1.59 stop: 61.76  

We'd like to say another positive day in the DRG.X drug sector 
was what fueled the move in ADRX but that may not be the case.  
There was nothing newsworthy for the company out today but the 
last hour of trading saw a surge higher in its share price that 
stopped us out.  The move seemed to come on stronger volume.  
Bearish traders may want to see if the 10-dma, currently 
overhead, can hold as resistance.  As it stands, we are stopped 
out at $61.76 for a 3.7% move.

Picked on January 4th at $64.14 
Gain since picked:        +2.38
Earnings Date          10/25/01 (confirmed)






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

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

  -------------
  Bearish Plays
  -------------

Altera Corp. - ALTR - close: 23.22 change: +1.22 stop: 23.01 

So much for continued weakness in the SOX.X.  One day does not an 
up trend make but the +4% bounce in the sector certainly had an 
impact on ALTR.  Shares of our bearish short play also rebounded 
with its own 5.5% bounce but we're not so convinced that the SOX 
or ALTR will be starting new bullish rallies.  Fortunately, we 
did lower our stop to $23.01 last night, which helped us close 
the play with a 4.9% move.  We think traders should be cautious 
on ALTR no matter what your bias is for the moment.

Picked on January 11th at $24.20
Gain since picked:         +1.19
Earnings Date           01/22/02 (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 

BMO     Bank of Montreal           22.55     +0.58
PKX     Pohang Iron & Steel        24.50     +1.25
CF      Charter One Financial      29.15     +1.13
DHI     D.R.Horton Inc             33.46     +1.43
NVR     NVR Inc                   206.60     +2.85
ALB     Albemarle Corp             23.49     +0.76

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

NBTY    NBTY Inc                   12.34     +1.29
SIMG    Silicon Image Inc           6.49     +1.08
ROXI    Roxio Inc                  18.05     +1.26
ELTE    Elite Information          12.85     +1.58

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

WMT     Wal-Mart Stores Inc        59.86     +1.85
GSK     Glaxosmithkline            50.87     +1.41
SAP     SAP Aktiengesell           36.80     +2.49
CAH     Cardinal Health Inc        68.26     +1.07
BAX     Baxter Intl. Inc           55.06     +1.25
AA      Alcoa Inc                  35.00     +1.05
TMX     Telefonos De Mexico        39.09     +1.77

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

IBM     Intl. Business Machines   107.90     -2.60
RTRSY   Reuters Group              49.90     -2.19
BVF     Biovail Corp               50.74     -2.78
ACS     Affiliated Computer Svc    97.50     -5.50
DST     DST Systems Inc            44.60     -1.85
EPD     Enterprise Products        44.86     -1.68

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

ALD     Allied Capital Corp        26.30     -0.62
SPH     Suburban Propane           26.64     -0.76
HOTT    Hot Topic Inc              33.90     -0.45
NRGY    Inergy L.P.                28.43     -0.97






=================================================================
To stop receiving this PremierInvestor.net Newsletter,
send email to Contact Support
=================================================================
DISCLAIMER
=================================================================

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

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

*****************************************************************
ADVERTISING INFORMATION

For more information on advertising in PremierInvestor.net
Newsletter, or any Premier Investor Network newsletter please
contact Contact Support.

*****************************************************************


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




DISCLAIMER

Option Investor Inc is neither a registered Investment Advisor nor a Broker/Dealer. Readers are advised that all information is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor is it to be construed as a recommendation to buy, hold or sell (short or otherwise) any security. All opinions, analyses and information included herein are based on sources believed to be reliable and written in good faith, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. In addition, we do not necessarily update such opinions, analysis or information. Owners, employees and writers may have long or short positions in the securities that are discussed.

Readers are urged to consult with their own independent financial advisors with respect to any investment. All information contained in this report and website should be independently verified.

To ensure you continue to receive email from Option Investor please add "support@optioninvestor.com"

Option Investor Inc
PO Box 630350
Littleton, CO 80163

E-Mail Format Newsletter Archives