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Daily Newsletter, Monday, 01/28/2002

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PremierInvestor.net Newsletter                 Monday 01-28-2002
                                                  section 1 of 2
Copyright  2001, All rights reserved.
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In section one:

Market Wrap:      Bulls Eke Out Gains In Dow and Nasdaq.
Market Sentiment: Sluggish start to the week.
Play-of-the-Day:  Pull Back to New Support.
Watch List:       ACN, ADRX, RCL, RKN, CAL

-----------------------------------------------------------------
U.S. Market Numbers
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MARKET WRAP  (view in courier font for table alignment)
-----------------------------------------------------------------
      01-28-2002          High     Low     Volume Advance/Decline
DJIA     9865.75 + 25.67  9994.53  9798.56 1.20 bln   1674/1472
NASDAQ   1943.91 +  6.21  1958.96  1925.43 1.50 bln   1818/1723
S&P 100   574.91 -  0.23   578.45   571.44   Totals   3492/3195
S&P 500  1133.06 -  0.22  1138.63  1126.66             
RUS 2000  481.28 +  1.93   481.57   468.04
DJ TRANS 2803.97 + 24.92  2808.44  2778.95
VIX        21.78 -  0.15    22.82    21.69
VXN        43.06 -  2.61    44.66    43.05
TRIN        1.18 
Put/Call    0.69
-----------------------------------------------------------------

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

Bulls Eke Out Gains In Dow and Nasdaq

Equities finished mixed to slightly higher in Monday's session on
tepid volume.  Isolated analyst comments and actions combined with
positive economic data lent bids to select stocks.  While in the
debt market, only the 30-year Bond finished higher in the
session.  Yields across the shorter-end of the curve were higher.
For the most part, it was a quiet session ahead of the Fed
meeting and the release of key economic reports later in the
week.

Major Market Averages

The Dow Jones Industrial Average ($INDU) finished the
day higher by 25 points, or 0.26 percent.  Leading the $INDU
high were shares of General Motors (NYSE:GM), McDonald's
(NYSE:MCD), United Technologies (NYSE:UTX), and International
Paper (NYSE:IP).  Honeywell (NYSE:HON), J.P. Morgan Chase
(NYSE:JPM), and American Express (NYSE:AXP) were the weakest
$INDU components in Monday's session.

The S&P 500 ($SPX) remained in a tight trading range.  Its
range from day low to high was only 12 points.  The recent
trading range of the $SPX reflects the market's hesitancy to
commit to positions ahead of this week's major events.
Weakness in healthcare and financial issues offset strength
in technology shares, resulting in a fractionally negative
close in the $SPX.  The Banks ($BKX) and Brokers ($XBD) were
off fractionally, while the selling was heavier in Biotechs
($BTK).

Technology issues pushed the Nasdaq Composite (COMPX) higher
by 0.32 percent.  Leading technology sectors included
Semiconductors ($SOX), Networking ($NWX), and Optical ($FOP).
In specific issues, strength in big caps such as Cisco
(NASDAQ:CSCO), Applied Materials (NASDAQ:AMAT), and Xilinx
(NASDAQ:XLNX) helped to carry the COMPX higher.  Advancers
totaled 1823 on the Nasdaq market, narrowly outpacing the 1725
decliners.  Volume was light at 1.45 billion shares.

Sector Spotlight

The Dow Jones Transportation Index ($TRAN) was higher by 25
points, or 0.88 percent, to 2804.  After a pullback last
week, the $TRAN is off to a bullish start in this week's
trading.  The recent advance in the $TRAN is bullish for
the broader economy.  A pick-up in economic activity will
lead to an increased demand for transportation services.  The
stocks in the $TRAN may be portending exactly that: a pick-up
in the economy.

The $TRAN has been in a descending trend since early 1999.
Through Monday, it's once again nearing the bearish resistance
line that has been in place for the last three years.  A
breakout above the resistance line could help to add credence
to the notion that the economy is on the mend.  Moreover, an
advance in the $TRAN above its descending trend could help to
confirm the recent bullish moves in the cyclicals, such as
the Forest and Paper Products Sector ($FPP).

Dow Jones Industrial Average ($TRAN) - Weekly




Within the transportation segment of the economy, shares of
several airline carriers have been trading as if a better
business climate lies ahead.  The Airlines ($XAL) were one
of the better performing sectors in Monday's session,
adding 1.07 points, or 1.15 percent.  The $XAL was especially
hard hit following the September 11 attacks.  Still well
below its pre-09/11 levels, the $XAL has put in a base and
continues to work higher.  (The retracement bracket on the
chart below is anchored at the close on September 10, the
day before the attacks.)

Airline Index ($XAL) - Daily  




The components of the $XAL include:

Alaska Air   (NYSE:ALK)
AMR Corp.    (NYSE:AMR)
America West (NYSE:AWA)
Continental  (NYSE:CAL)
Delta        (NYSE:DAL)
Frontier    (NYSE:FRNT)
KLM          (NYSE:KLM)
Southwest    (NYSE:LUV)
Northwest   (NYSE:NWAC)
U.S. Airways   (NYSE:U)
UAL Corp.    (NYSE:UAL)

The point and figure chart corresponds well with the $XAL's
retracement levels on its bar chart.  An advance above the
61.8 percent retracment could lead to a new buy signal on
the point and figure chart at 95.00.  Furthermore, the
overhead 80.9 percent level at 105 is concurrent with the
$XAL's bearish resistance line on the point and figure
chart.  A move over the next few weeks to the bearish
resistance line between 104.00 and 106.00 would offer traders
an exit point on bullish positions taken on a new buy signal.

Airline Index ($XAL) - Point and Figure




Earnings

Texas Instruments (NYSE:TXN) reported a better-than-expected
quarter after the bell Monday.  The maker of chips reported
a loss of 7 cents per share while the consensus estimates had
been calling for a per share loss of 9 cents.  The company
also surprised on the sales front, reporting $1.79 billion in
revenues, while analysts had expected $1.67 billion.  Texas
Instruments raised guidance for the coming quarter to
break-even from a 6 cent loss.  Shares of Texas Instruments
were better than $1 higher in the evening session.  However,
to the detriment of the chip equipment makers, Texas
Instruments said that it would spend about $800 million on
equipment for fiscal '02.  Previous estimates were closer to
$1.2 billion for capital expenditures.

Online travel company Expedia (NASDAQ:EXPE) reported
quarterly earnings late Monday that easily surpassed Wall
Street's estimates.  The company reported earnings
excluding charges of 31 cents per share.  Revenues came
in at $81.7 million.  Analysts had expected the company to
record sales of $67 million.  Shares of Expedia, which
finished 8 percent higher in the regular session, added
about $2 in the after hours trading.  The positive prognosis
from Expedia bodes well for the travel industry (See: $XAL).

Economics

Monday morning's release of new home sales data kicked
off a week full of economic reports.  For December, new
home sales rose to 946,000 annually, about 22,000 units
better than the market had expected.  Judging by the
report, the housing market remains strong.  Shares of
homebuilders continued higher on the news, including
Beazer Homes (NYSE:BZH), Pulte Homes (NYSE:PHM), and
Centex (NYSE:CTX).

Tuesday, durable goods orders for December are expected to
have grown by 1.2 percent.  And consumer confidence for
January is expected to register 96.0.

The biggest release of the week is Wednesday's preliminary
gross domestic product (GDP) number.  The consensus is
calling for a 1.1 percent contraction in the economy during
the fourth-quarter of last year.

Thursday, personal income is expected to have risen by 0.3
percent during December while personal spending is expected
to have fallen by 0.2 percent during the same month.  Initial
jobless claims are expected to climb to 385,000 for the
week ended January 26.

Friday, the non-farm payrolls number is expected to have
fallen by 53,000 during January while the unemployment rate
is expected to have risen to 5.9 percent.

Greenspan & Co.

In addition to the GDP report, investors and traders will be
tuning in Wednesday afternoon to the Federal Reserve's
decision on interest rates.  The consensus going into the
meeting is for the Fed to maintain its short-term lending at
rate at 1.75 percent.  The bond market has discounted no change
to rates.  In addition to the actual decision on rates, the
market will be listening for guidance as to future Fed policy.
Some have suggested that the Fed will begin raising rates
later this year, judging by the expectations of the bond
market.  While others maintain the view that inflation remains
under wraps.  In any event, what Fed Chief Alan Greenspan says
Wednesday afternoon may be more important than the Fed's
actual decision on rates.

Eric Utley
Premier Investor


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

Sluggish start to the week.
by Russ Moore

Markets got off to a quiet start as investors get ready for the 
FOMC meeting and a bundle of earnings announcements.

The DOW added +0.3 percent while the NASDAQ gained +0.3 percent 
and the NDX +0.4 percent. The NYSE saw 1.1 billion shares change 
hands and the NASDAQ only 1.46 billion. Losers slipped past 
winners by a 16/14 margin on the big board and 18/17 on the tech 
index.

Broad market action had biotechs taking another beating along 
with oil service and natural gas. Transport, paper, and airline 
put in the best performances. Tech action saw chips, Internet and 
networkers attracting the majority of buyers.

The Index of Investor Optimism, a joint venture from UBS and 
Gallup organization, showed a dramatic rise in January. The index 
moved from an 88 in December, to a reading of 115 this month. 
Investors surveyed pointed to pharmaceutical and biotech as their 
favored sectors. Taking a look at the BTK and DRG, it doesn’t 
seem like that optimism has reached their wallets. 

The rise in optimism would seem to be supported by volatility 
readings that continue to travel in the “no fear” zone. 

The other side of the street has funds flow tracker Trim Tabs, 
firmly planted in the bear’s camp. The company cites bearish 
corporate liquidity as the reason for its’ negativity. Cash 
takeovers are hitting new lows while new offerings are piling up.

We’ve got a lot going on this week with GDP, consumer confidence, 
MR.G. and a bucket of earnings reports on the docket. 
Expectations are for generally positive economic news and a “hold 
the line” stance from the Fed. The wild card is the earnings 
data. Any surprises could lead to a shakeup in sentiment. 



VIX
Monday 01/28 close: 21.71


VXN
Monday 01/28 close: 43.06


30-yr Bonds
Monday 01/28 close: 5.47


Total Put/Call Ratio: .69


Equity Option Put/Call Ratio: .58


Index Option Put/Call Ratio: 1.60


===

NASDAQ 100 Index (NDX/QQQ)
52-Week High: 103.51
52-Week Low:   28.19
Current close: 39.05

Volume/Open Interest
Maximum calls: 40/47,016
Maximum puts : 38/70,762

Moving Averages
 10 DMA 38
 20 DMA 39
 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: 574.91

Volume/Open Interest
Maximum calls: 580/5,191
Maximum puts : 520/8,586

Moving Averages
 10 DMA  576
 20 DMA  583
 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: 1133.06

Volume / Open Interest
Maximum calls: 1150/28,366
Maximum puts : 1150/24,427
Moving Averages
 10 DMA 1132
 20 DMA 1145
 50 DMA 1144
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:  9,865.75

Volume / Open Interest
Maximum Calls:  98/11,956
Maximum Puts    90/17,190

Moving Averages:
 10 DMA  9,809
 20 DMA  9,962
 50 DMA  9,943
200 DMA 10,106

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: 512.12

Volume / Open Interest
Maximum Calls: 520/301
Maximum Puts:  560/637

Moving Averages
 10 DMA 529
 20 DMA 548
 50 DMA 573
200 DMA 545

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: 545.82

Volume / Open Interest
Maximum Calls: 570/977
Maximum Puts:  540/484

Moving Averages
 10 DMA 534
 20 DMA 551
 50 DMA 542
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: 373.80

Volume / Open Interest
Maximum Calls: 390/ 500
Maximum Puts:  300/1575

Moving Averages
 10 DMA 377
 20 DMA 378
 50 DMA 385
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, 02/25. 
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 
01/08/02     333,742   398,283   (64,541)   (6.1%)
01/15/02     340,005   397,024   (57,019)  (11.7%)
01/22/02     342,841   394,041   (51,700)   (9.3%)

Most bearish reading of the year: (111,956) - 3/6/01
Most bullish reading of the year: (41,144)  - 5/1/01

Small Traders   Long      Short      Net      %Change
01/08/02       130,335    60,780    69,555    (3.1%)
01/15/02       129,987    64,311    65,676    (5.5%)
01/22/02       125,451    65,423    60,028    (8.6%)

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 
01/08/02      30,786    37,457    (6,671)    (13.3%)
01/15/02      32,068    34,859    (2,791)    (58.1%)
01/22/02      30,671    34,103    (3,432)     23.0%

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
01/08/02       10,073     6,404    3,669    (22.5%)
01/15/02       10,230     9,782      448    (87.8%)
01/22/02       11,885     8,787    3,098  

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 
01/08/02      15,921     7,981    7,940     (3.9%)
01/15/02      15,866     9,175    6,691    (15.7%)
01/22/02      18,152    11,013    7,139      6.6%

Most bearish reading of the year: (8,322) - 1/16/01
Most bullish reading of the year:  8,925  - 5/22/01

Small Traders  Long      Short      Net      %Change
01/08/02       4,380     9,188    (4,808)     (9.3%)
01/15/02       4,979     8,747    (3,768)    (21.6%)
01/22/02       5,424     8,969    (3,545)     (5.9%)

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        +60,028     +65,676        -51,700    -57,019

Total Open
Interest %       (+31.45%)  (+33.80%)      (-6.95%)   (-7.74%)
                 net-long   net-long       net-short  net-short


                     Small Specs             Commercials
DJIA futures     (Current) (Previous)    (Current) (Previous)
Open Interest
Net Value          -3,545     -3,768          +7,139    +6,691
Total Open
interest %       (-24.63%)    (-27.45%)      (+24.48%)  (+26.72)
                 net-short   net-short     net-long    net-long


                     Small Spec              Commercials
NASDAQ 100      (Current) (Previous)    (Current) (Previous)
Open Interest
Net Value         +3,098      +448         -3,432    -2,791

Total Open
Interest %        (+14.99%)   (+2.24%)     (-5.30%) (-4.17%)
                 net-long   net-long      net-short  net-short


What COT Data Tells Us
----------------------
Indices:.Commercials continued their gradual reduction in net-
short positions this week. Over the last couple of months we have 
seen the big players move as low as 4 percent net-short and then 
gradually increase their positions. So far, we’ve yet to see any 
evidence of an accumulation phase (bullish) beginning.

Gold: Anyone following the behavior of gold or the XAU.X (gold 
and silver index), better have a whiplash collar on. The XAU hit 
a low of 56.85 during the week however, Friday saw the index take 
off and close at 59.10. Commercial activity does not seem to 
coincide with this type of a move but keep in mind that these 
figures are as of Tuesday. I’ll be interested to see what next 
week’s numbers show.

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
01/22 50,959 contracts net-short

Data compiled as of Tuesday 01/22 by the CFTC.



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

Wallace Computer Svcs. - WCS - cls: 20.18 chg: -0.17 stop: 19.49

Company Description:
Wallace is recognized as the leading provider of print management 
services to Fortune 1000 companies through its Total Print 
Management (TPM) program. The TPM program streamlines the 
processes associated with traditional, digital and electronic 
print items and typically generates significant cost savings. 
With nationwide resources across a wide range of traditional and 
digital capabilities, Wallace can be a large organization's 
single print management source. The company's print management 
services include e-commerce, distribution logistics, digital 
asset management, inventory management, and print optimization. 
Wallace is headquartered in Lisle, Illinois with manufacturing, 
distribution and sales facilities throughout the United States. 
(source: company press release)

- ORIGINAL WRITE UP: January 25th, 2002 -

Why We Like It:
Our new bullish play on Wallace is just an easily identifiable 
breakout play in a sector that has seen a lot of strength lately.  
While not a direct competitor for the likes of IKN, ODP, and OMX; 
WCS is seen as more of an office supplies player despite their 
focus on print management.  Shares had been building a bullish 
wedge under resistance at the $20 level and Wednesday saw shares 
breakout above it with Thursday's move as confirmation.  Volume 
had been rising all week and the 20-cent pull back on Friday was 
on light volume.  The $20 level should now act as support and may 
be a good place to look for entry points if shares pull back.  
Please note that WCS is not a very fast moving stock but given 
enough time we think it may trade to $24 or even $25.  In the 
news, readers will find that WCS was named to the Forbes Platinum 
400 list.  This list recognizes large organizations for strong 
profitability and growth.  We are going to start the play with a 
stop at $19.49.  

- Play-of-the-Day Comments: January 28th, 2002 -

We think the pull back to the $20 level is a relatively low risk 
entry point with our stop at $19.49.  We're picking WCS as the 
play of the day for Tuesday but traders will want to confirm 
stock direction before initiating any positions.

Picked on January 25th at $20.35 
Gain since picked:         -0.17
Earnings Date           12/11/01 (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.

-----------

Accenture Ltd - ACN - close: 24.00 change: -1.20

WHAT TO WATCH: Over a year ago, Accenture lost a bitter feud with 
its accounting brethren to keep the coveted Arthur Andersen name.  
The irony of it all is not lost on Accenture's management today 
but as the previous consulting arm to the Arthur Andersen empire 
they may not be protected from public opinion.  Technically, they 
should not have any exposure to the Enron debacle and they have 
said so.  Shares have actually been climbing the last few months 
(minus January's lack luster performance).  We're beginning to 
wonder that as Wall Street and the rest of America still looks 
for a scapegoat that ACN might suffer a bit of collateral damage 
from the Enron fall out.  As it stands now, ACN has just closed 
below its 50-dma and shares appear to be rolling over.  Intraday, 
the stock bounced off the $23 level but a close under $24 could 
portend a move to the $20 level.  Earnings are expected in April.




---

Andrx Corp - ADRX - close: 57.83 change: -3.24

WHAT TO WATCH: It was just a couple of weeks ago we had ADRX as a 
bearish play on the Premier Investor play list so it comes with a 
small sense of satisfaction that the stock lost over 5% today on 
top of Friday's drop.  The catalyst for today's move was 
additional negative developments in ADRX's court battle with 
AstraZeneca and a patent dispute over Prilosec, the world's top 
selling drug.  The close under $60 is a big technical breakdown 
and the point-and-figure chart supports this theory.  We wouldn't 
be surprised to see ADRX trade to $50 in the next few weeks.  The 
risk here is news related as any report or headline that comes 
across the wires as positive for ADRX could spike the price 
higher whether they win the case or not.




---

Royal Caribbean Cruises - RCL - close: 18.85 change: +0.83

WHAT TO WATCH: The week is looking pretty optimistic for shares 
of RCL as the stock just added another 4.6% on top of last week's 
gains.  Bullish investors are probably encouraged by today's move 
as the close puts shares of RCL above price resistance of $18 as 
well as the 200-dma.  Volume has been strong the last two days 
and we think RCL might be able to trade to $21, which would close 
the gap from September.  The positive earnings reports from ROOM 
and EXPE today, while not directly related to cruise sales, might 
also appear as positives since it boosts investor confidence that 
the travel industry is returning.  The point-and-figure charts 
show the stock above its bearish resistance line.  Earnings are 
expected tomorrow.




---

Rock-Tenn Co. - RKT - close: 17.25 change: +0.74

WHAT TO WATCH: Shares of this paper-products company have been on 
fire the last four sessions.  What is strange is the timing of 
this move.  Earnings were very strong but came out on Friday, 
Jan. 18th, 2002.  It wasn't until the 23rd before shares started 
to rally.  It's almost as if fund managers didn't see the 
earnings news until Wednesday.  Since then volume has been rising 
with each gain.  We wouldn't chase the stock but the strength of 
this new trend would definitely make us look twice on a pull 
back.  Average daily volume is very light, which would probably 
make us shy away from it - but this also makes the recent volume 
spike so incredible.




---

Continental Airlines - CAL - close: 30.54 change: +0.25

WHAT TO WATCH: The transport sectors have been posting gains the 
last week or two and one of the groups that look tempting are the 
airlines.  The XAL.X looks like it could trade up to the 100 
level from its current position at 93.  Likewise we think CAL 
might be able to trade to its recent highs above $33 and 
potentially to its 200-dma near $35.  We tried playing CAL back 
in mid-December but our stop was too tight and we missed the late 
December/early January rally.  CAL should have support at $28.






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Do not duplicate or redistribute in any form.



PremierInvestor.net Newsletter                  Monday 01-28-2002
                                                   section 2 of 2
Copyright  2001, All rights reserved.
Redistribution in any form is strictly prohibited.

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In section two:

StockBottom Non-Tech Plays
  Closed Bullish Play:  IKN, LTR

High Risk/High Reward
  Closed Bullish Play:  EXPE
  Closed Bearish Play:  SEAC
  

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)


=================================================================
StockBottom Non-Tech/Active Trader (AT) section
==================================================================

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

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

Ikon Office Solutions - IKN - cls: 13.93 chg: +1.08 stop: 11.99

Midday news that IKON sold its Mid-Atlantic operations of IKON 
Business Systems Services (BSS) to DTI Integrated Business 
Solutions, Inc. seems to have bulls cheering.  Volume was very 
strong at 1.7 million shares trading as IKN gained 8.4%.  We had 
estimated that the next level of resistance was $14.00 and shares 
traded right to this level before the closing bell.  The weekend 
edition of the newsletter reiterated our exit point of $13.75 so 
this is where we will close the play.  A gain of $1.44 represents 
an 11.69% move in IKN's share price.  Odds of profit taking seem 
high but the stock could consolidate sideways under the $14 
level.  After hours trading has not offered us any clues.  

Picked on January 11th at $12.31 
Gain since picked:         +1.44
Earnings Date           01/25/02 (confirmed)




---

Loews Corp - LTR - close: 59.26 change: -2.26 stop: 58.99 

There was no company specific news for LTR's 3.67% drop on Monday 
but negative moves in Diamond Offshore (DO) and CNA Financial 
(CNA) probably affected LTR's performance.  LTR's drop put shares 
back below the 10-dma and the $60 level.  This took our small 
gain to a small loss.  LTR did pause at its 15-dma but the 
increased volume would have us acting very cautious if we still 
had long positions in the stock.  The $58 level should be support 
as well as the 200-dma near $57.  Earnings are expected on Thursday.

Picked on January 18th at $60.15 
Gain since picked:         -1.16
Earnings Date           01/31/02 (unconfirmed)






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

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

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

Expedia, Inc. - EXPE - close: 51.02 change: +4.02 stop: 45.99 

Earnings bulls enjoyed a strong day today with EXPE gapping open 
to $48.86 and trading above potential resistance of $50 to close 
at $51.02.  This 8.5% gain was ahead of its post-market earnings 
report as investors anticipated good news on the heels of its 
rival ROOM's strong numbers.  The Hotel Reservations Network 
(NASDAQ:ROOM) announced their earnings numbers this morning 
before the bell with a Q4 performance of 27-cents a share.  This 
was 9 cents above estimates with revenues jumping over 40% to 
$141.7M.  ROOM also raised their guidance for 2002 and 2003. 
Shares of ROOM ended the day up 18%.  With earnings numbers like 
these everyone piled into EXPE looking for a similar surprise.  
They were rewarded as EXPE came out with a net income, excluding 
special costs, of $19 million or 31 cents a share.  Estimates 
were only 10 cents a share.  Investors were optimistic as EXPE 
had lost $2.6M or 6 cents a share the same quarter a year 
earlier.  Shares of EXPE were trading significantly higher in the 
after hours markets with the stock near $54 at the time of this 
update.  Unfortunately for the newsletter, we were a bit too 
conservative and posted an exit price of $49.50 in the weekend 
newsletter.  Therefore we must close the play with a gain of only 
$5.00.  Traders who held over the report will need to make their 
own decision on whether to sell in the morning excitement if EXPE 
can maintain these after hours gains or to hold on for a longer-
term move.  The positive earnings move of this magnitude is a 
major milestone for the online reservations/travel services 
especially considering the September 11th attacks.  However, 
short-term profit taking would not be unexpected after the recent 
gains.  We suggest you tighten your stops if you're still in the 
play.

Picked on January 18th at $44.49 
Gain since picked:         +5.01
Earnings Date           01/28/02 (confirmed)





  -------------------
  Closed Bearish Play
  -------------------

SeaChange Intl. Inc. - SEAC - cls: 29.00 chg: +1.00 stop: 29.35

For the moment, the $29 level is still acting as resistance but 
shares of SEAC took on a bullish tone after the beating it took 
last week.  We had placed our initial stop just above the 10-dma, 
which should have held for us, but a spike up towards the end of 
the day took us out as SEAC traded to $29.39.  The trend is still 
down but today's move could be the beginning of a short rebound 
higher.  We would look to see if the $30 level will hold as 
resistance with $32 being the next level of trouble beyond that 
for SEAC bulls.  

Picked on January 25th at $28.00
Gain since picked:         -1.35
Earnings Date           02/26/02 (unconfirmed)






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

GPC     Genuine Parts Co           35.41     +0.67
AOG     Alberta Energy Co Ltd      38.37     +1.38
RCL     Royal Caribbean Cruises    18.85     +0.83
LIZ     Liz Claiborne Inc          27.25     +0.95
ALE     Allete Inc                 26.38     +0.56
NVR     NVR Inc                   234.00    +17.06

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

XRX     Xerox Corp                 11.24     +1.34
AMZN    Amazon.com                 15.50     +1.06
TOY     Toys R Us Inc              19.90     +1.15
IKN     IKON Office Solutions      13.93     +1.08
CREAF   Creative Technology Ltd    12.61     +1.11
RNBO    Rainbow Technologies Inc   12.25     +1.65

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

USAI    USA Networks Inc           27.64     +1.94
NOC     Northrop Grumman Corp     108.37     +3.56
TXT     Textron Inc                43.23     +1.85
LLL     L-3 Communications        100.00     +3.30
JWN     Nordstrom Inc              25.10     +1.04
DHI     D.R. Horton Inc            36.61     +1.10
ROOM    Hotel Reservations Ntwrk   52.25     +7.99

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

TYC     Tyco Intl. Ltd             42.00     -3.00
EDS     Electronic Data Systems    61.79     -2.16
ACN     Accenture Ltd              24.00     -1.20
GDT     Guidant Corp               42.80     -2.48
ELN     Elan Corp                  34.50     -2.35
KG      King Pharmaceuticals       38.20     -2.06

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

.. none .. 		





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