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Daily Newsletter, Friday, 03/15/2002

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PremierInvestor.net Newsletter          Weekend Edition 03-15-2002
                                                    section 1 of 3
Copyright  2001, All rights reserved.
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In section one:

Market Wrap:      Healthcare looking healthy.
Play-of-the-Day:  That's More Like It.
Watch List:       NVDA, OMX, COST, WAG, OO, CAH, TSG and more!
Market Sentiment: Back on course.

------------------------------------------------------------------
U.S. Market Numbers
------------------------------------------------------------------
MARKET WRAP  (view in courier font for table alignment)
------------------------------------------------------------------
        WE 3-15          WE 3-08          WE 3-01          WE 2-22
DOW    10607.23 + 34.74 10572.49 +203.63 10368.86 +400.71  + 65.11
Nasdaq  1868.30 - 61.37  1929.67 +126.93  1802.74 + 78.20  - 80.66
S&P-100  591.13 +  1.29   589.84 + 13.68   576.16 + 22.12  -  5.61
S&P-500 1166.16 +  1.85  1164.31 + 32.53  1131.78 + 41.94  - 14.34
W5000  10904.69 + 14.02 10890.67 +330.66 10560.01 +380.72  -136.19
RUT      499.12 -   .73   499.85 + 21.51   478.34 + 13.27  -  4.18
TRAN    2951.54 - 58.70  3010.24 +113.11  2897.13 +171.48  + 41.42
VIX       20.77 -  0.84    21.61 -  0.52    22.13 -  2.76  +   .80
VXN       40.26 -  1.36    41.62 -  0.32    41.94 -  6.63  +  3.58
TRIN       0.56             0.73             0.74             1.33
TICK       +855             +927            +1029            +1044  
Put/Call    .64              .62              .94              .90
------------------------------------------------------------------
WE= week ended

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

Healthcare looking healthy

This week's best performing sector found the Healthcare Index 
(RXH.X) getting top billing with a 6.2% gain.  While many market 
mavens continue to chat about the future gains from technology 
stocks, the weekly performance numbers hint that those "tech 
bulls" may not really be practicing what they're preaching.  If 
they are, then their losses are mounting as little land mines 
keep going off and the green pastures of 1999 become riddled with 
holes.

This week's "landmines" found Lucent Technology (NYSE:LU) telling 
analysts that a return to profitability would most likely have to 
be pushed back to next year.  That news had investors selling the 
stock to a new all-time low and weekly close below the $5 level 
and placing a dark cloud of skepticism on the Networking Index 
(NWX.X) and Fiber Optic Index (FOP.X), which both showed double 
digit weekly percentage losses.  While the telecom-equipment 
business is having a rough time, the software business doesn't 
look much better.  Software stocks came under selling pressure 
this week after software giant Oracle Corp. (NASDAQ:ORCL) painted 
a less than rosy picture of the near future after reporting 
earnings that met previously lowered guidance.  The broader GSTI 
Software Index (GSO.X) fell 4.9% on the week.

As fund managers begin focusing on the "returns game" near the 
end of the first quarter, it's starting to become more evident 
that money has really been flowing toward those sectors of the 
market where earnings are perhaps more "predictable" or at least 
more likely to be found in the scope of a recovering economy or 
consumer spending.  As investors begin to hear about an "economic 
recovery" you can bet there will be little tolerance for the fund 
manager that can't show some gains, regardless of what the 
broader market averages do.

As we approach the end of the first quarter, it's becoming more 
apparent on where the money is flowing into, and where it's 
flowing out of.  

According to TrimTabs.com, $7.6 billion flowed into equity funds 
for the weekly period ending Wednesday, March 13th, which 
compared to inflows of $3.2 billion during the prior week.

Weekly market averages/sector performance




In the "tech" arena, only the biotechs were able to hammer out a 
weekly gain, while the remaining technology sectors found 
selling.  Then end result for the NASDAQ Composite (COMPX) was a 
-3.4% weekly loss and the larger cap tech and the NASDAQ-100 fell 
-0.42%.  This may be a little upsetting to investors having made 
some large bets in the groups on the hopes of strong economic 
data.  While this week's economic data was rather upbeat at the 
industrial level, the MARKET seemed to shy away from most 
technology groups.  Only the Semiconductor Index (SOX.X) is 
showing a gain for the year.

Banks put in a strong showing this week after many of the larger 
multinationals rallied after fears of accounting concerns abated.  
Our strategy near-term is to identify those that are leaders and 
look for pullbacks as entry points.  The S&P Banks Index (BIX.X) 
and the more regional type banks looks to be the place for bulls 
to focus that want exposure to the banking sector as that index 
has handily outperformed the larger banks by a 2-to-1 margin as 
depicted by the KBW Bank Index (BKX.X).

For the third week in a row, money rolled out of Treasury bonds 
and the benchmark 10-year YIELD rose to 5.363%.  This is the 
highest YIELD this bond has shown since last summer's levels.  
I'd expect Treasury YIELDS to hold near current levels in the 
next couple of sessions as the FOMC meets next Tuesday.  Most 
economists expect the Fed to hold Fed Funds right where they're 
at 1.75%.  With today's PPI data showing little inflationary 
pressure, I would be surprised if the Fed took any action next 
Tuesday.  Many economists expect the Fed to take a more "neutral" 
bias toward the economy, which would be an improvement from past 
bias of "weakness."

Morgan Stanley Provider (RXH.X) - Daily Interval




The "label" on the above chart should not be confused with the 
Morgan Stanley Healthcare Payors Index (HMO.X).  The above index 
is comprised of company's that actually provide healthcare to the 
consumer.  Comprising stock symbols are (AHG, LNCR, BEV, HCR, 
HMA, THC, HRC and VC).

The "strongest" supply/demand chart in the bunch looks to be that 
of Tenet Healthcare (NYSE:THC) $63.98 +1.96%.  The stock traded 
strong this week from $60.90 to $63.98.  The charts of the other 
stocks are still trading below some downward trends, so we might 
just get a near-term pullback and a bit of consolidation before 
the next leg higher.  However, if they do catch some fire early 
in the week, there will still be some good patterns to trade 
going forward.

I'm monitoring our bullish play in shares of Oxford Health 
(NYSE:OHP) $40.45 +0.57% and I really would have liked to have 
seen a new 52-week closing high on the stock.  OHP is a component 
of the Morgan Stanley Healthcare Payors Index (HMO.X).

I do think OHP bulls want to see some broader bullishness come 
from the RXH.X stocks to provide somewhat of a "tidal wave of 
enthusiasm" in the broader healthcare sector.  The broader the 
sector bullishness a bull can get behind a push higher the 
better.

One stock with a "healthcare" theme that I'll have my eye on over 
the next couple of weeks is Cardinal Health (NYSE:CAH) $69.06 
+3.05%.

Cardinal Health Chart - Weekly Interval




I wanted to show a weekly chart for a couple of reasons.  The 
first is to be able to show you data back to April of 2000 when 
shares of CAH broke above its 200-day (40-week) moving average.  
This is considered a longer-term moving average and often times, 
stocks that break above this longer-term moving average tend to 
perform quite well.  As you can see, the stock eventually cleared 
its 200-day at $35, then broke above horizontal resistance at $40 
and went on an impressive run for several months.  Note the large 
volume pullback at a low, a retest of that low, then major 
reversal higher.  I've marked almost identical technicals that 
have taken place in recent weeks.  A break above the $70 level is 
a clearly defined level of similar resistance now facing CAH.  
Should the stock break above that level this week, I'm expecting 
longer-term bullishness to continue.

Cardinal Health - $1 box




Shares of CAH have been building a nice base since late November 
(after red B) and today's break of bearish resistance (red +) 
trend and trading at $58, set off a triple-top buy signal.  I 
like the "coincidence" shown in the bar chart dating back to 
April of 2000 and I like the break of bearish trend and the 
bullish "triple-top" at $58 today.  

You know what?  I also like it back in April of 2000 also.  Take 
a look!

Cardinal Health - April 2000 time period




This is what the point and figure chart looked like back in April 
of 2000 when CAH broke a triple-top and also broke its bearish 
resistance trend.  The resulting vertical count column indicated 
a potential longer-term bullish price objective.  As you can see, 
the stock made an impressive move until my chart runs out of room 
at $62.  Any guesses where the stock topped out at eventually?  
How about an all-time high of $77.32 set on June 21, 2001.  Darn!  
68-cents shy.

True.  If you go back and look that the point/figure chart of CAH 
on www.stockcharts.com you will see an eventual double-bottom 
sell signal that took place in October of 2000 that would have 
negated the bullish count on the above chart.  But it does make 
you wonder if smart money "knew" what was going to happen in the 
coming years.

Will history repeat itself with the technicals now before us?  We 
never know for sure, but history has a funny way of repeating 
itself.

One last note.  When looking at a chart of CAH over the past 
three years.  This stock has an uncanny ability to perform well 
during the April-June time period.  Shorter-term bulls should 
also consider a bullish trade in CAH at current levels.

Have a great weekend!  I will be out of the office on Monday, but 
Eric Utley will keep you well informed!

Jeff Bailey
Senior Market Technician


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

Kohls Corp - KSS - close: 71.35 change: +1.38 stop: 66.75

Company Description:
Based in Menomonee Falls, Wis., Kohl's is a family-focused, value 
oriented specialty department store offering moderately priced 
national brand apparel, shoes, accessories and home products.
(source: company press release)

- ORIGINAL WRITE UP: March 12th, 2002 -

Why We Like It:
KSS is making the Play List tonight in anticipation of tomorrow 
morning's release of retail sales numbers.  Obviously retail 
stocks could trade higher if those numbers are well-received and 
KSS stands out as being a particularly good candidate to take 
advantage if the reaction is positive.  The stock is trading just 
under resistance at $70, which has been a lid on the share price 
for most of the year (2002).  The p-n-f chart also shows that KSS 
is threatening to break out of a bullish triangle, with a trade 
above $70 confirming the move.  We also like how the stochastics 
and MACD are heading higher with room to move.  Given the fact 
that we're basing this play on unknown economic data we're going 
to use a trigger.  If KSS trades at or above $70.50 we'll go long 
as this is above the January high at $70.49.  We'll initiate the 
play with a stop at $66.75.

- Most Recent Update: March 15th 2002 -

This morning saw the release of a spate of economic data before 
the bell and the market liked what it saw.  KSS gapped up over a 
half-point and opened right at our $70.50 trigger.  At this point 
we initiated a long play with a stop at $66.75.  Adding to the 
bullishness were the Consumer Sentiment numbers, which came out 
shortly after the market opened.  The reading at 95.0 was 
stronger than the expected 92.7 and fueled a rise in KSS to 
$71.91.  Shares pulled back a tad into the close but still 
managed to add almost 2% on strong volume of 2.68M versus the 
1.7M average.  Now that this play has actually been triggered, 
lets discuss our strategy:  The p-n-f chart shows a bullish 
triangle breakout with a bullish vertical count of $85.  This 
level may be attainable, but in the near-term we're looking for a 
move to $77.  The first obstacle will be the 52-week high at 
$71.91.  Traders may want to take bullish positions on a move 
over $72 after confirming strength in the RLX.X retail index.  
Alternatively a dip back to $70 could afford less risk-averse 
traders an entry point.  FYI: point-and-figure aficionados might 
recall that a pennant or triangle breakout to the bullish side in 
a cooperating market, according to the experts, has a 71.4% 
chance of profitability with an average gain of 30.9% in 5.4 
months.  We are not expecting these sorts of gains especially 
given our short-term perspective but it makes for interesting 
speculation doesn't it. 

- Play-of-the-Day Comments: March 15th, 2002 -

The strength in the RLX.X on Friday was very impressive and
with two weeks left in the quarter fund managers may feel the
pressure to start window dressing their portfolios with winners
in the retail sector.  KSS looks like a good play of the day 
as a move over $72 would be a new high and shorts could panic
and cover while a dip back to $70 would be a great entry point
for a new position.

Picked on March 15th at $ 70.50
Change since picked:      +0.85
Earnings Date          03/05/02 (confirmed)






==================================================================
WATCH LIST
==================================================================

The PremierInvestor.net watch list is not designed to be read
as full fledged stock picks.  Rather we would prefer to offer
it as an extra tool in today's investor toolbox.  Think of it
as a radar screen with your own radar operator pointing out
interesting developments, technical patterns or potential plays
that you may or may not have seen on your own.  Due to time
constraints we do glance at the news but rarely do we have 
time to fully read pertinent news stories, due background 
research and other necessary screens that investors should do
before making a decision.  A common exercise is to read the
entry, glance at the sector and other stocks in that industry
and then compare what's happening in the stock to what's 
happening in the broader market indices.  We hope you enjoy
the Watch List and that it proves to be a useful tool for your
own trading success.

STOCKS WORTH WATCHING
---------------------------------

NVIDIA Corp - NVDA - close: 52.77 change: +2.14

WHAT TO WATCH: We profiled NVDA on the latest Watch List because 
of the weakness shares have displayed since failing at the $60 
resistance level.  What makes this stock really attractive as a 
short is the importance of the $50 level.  In addition to 
psychological support, this has been a significant historical 
support/resistance level for almost a year.  A trade under $50 
would trigger a double-bottom on the p-n-f chart, and the MACD 
just signaled a bearish crossover on Thursday.  We would consider 
entries if NVDA moves below $48.95.  A trade below this level 
would signal a break of both support at $50 and the 200-dma just 
below.  Next major support levels are $45 and $40.




---

Officemax Inc - OMX - close: 5.89 change: +0.01

WHAT TO WATCH:  First of all, you might want to take a look at 
the chart link below this paragraph.  Okay, done?  Yes boys and 
girls, that's a gain of almost 50% in just three sessions in 
early March!  The stock exploded from a narrow range near $4.00 
on March 4th and quickly shot up to $5.99 on the 6th.  The news 
behind this move was the Q4 earnings reports where OMX reported 
large losses but gave improved forward-looking guidance while 
industry rival Staples beat their Q4 estimates.  The company is 
well positioned to benefit if the retail/business climate 
continues to improve.  We're obviously not looking to chase the 
stock higher, but some backing and filling to $5.00 may prove to 
be a nice entry point.  Of course, based on the low price of OMX 
this would be a speculative high-risk/reward play.




--- 

Costco - COST - close: 42.15 change: +0.83

WHAT TO WATCH:  PI subscribers may recall that we had a high-risk 
long play on COST a few weeks ago in an attempt to buy the bottom 
of the stock's ascending channel.  Unfortunately the stock didn't 
cooperate, broke through the channel, and stopped us out quickly.  
Now that shares have bottomed out near $38 and quickly bounced we 
think the weak hands may have been shaken out.  Aggressive 
traders may want to take a look at a bullish position if shares 
trade above the 100-dma at $42.70.  The MACD just gave a buy 
signal after curling up from oversold and the stock doesn't face 
any resistance until $44.




---

Walgreen Co - WAG - close: 40.00 change: +0.45

WHAT TO WATCH: Here's another stock that was on Wednesday's Watch 
List.  The retailers performed well today and WAG could be on the 
brink of a breakout.  However, with two retail plays (KSS and 
PSS) already on the Play List, we decided to put WAG on the watch 
list section.  Shares have been coiling just under resistance $40 
and are in the process of filling in a gap from last June.  If 
the sector continues to be strong we may see a powerful breakout. 
Aggressive traders could jump on a move above recent highs at 
$40.30, while conservative traders may want to wait for a move 
above $41.  Unfortunately, the stock could see plenty of 
congestion between $41 and $43.
 



--- 

Oakley Inc - OO - close: 18.52 change: +0.21

WHAT TO WATCH: The economic outlook is so bright, you gotta wear 
shades!  This sunglass manufacturer just broke though resistance 
at $17.50, which coincides with the top of a sharp gap down in 
August.  Volume has been increasing over the past two weeks and 
the MACD is heading higher from the baseline.  Thursday's 9.3% 
move not only moved the stock above resistance but created a 
triple-top breakout on the p-n-f chart.  If retail continues to 
be strong OO could be headed for a test of the $20 level.  Look 
for a dip to $18 or $17.50 to offer a potential entry point.




--- 

Cardinal Health - CAH - close: 69.06 change: +2.05

WHAT TO WATCH: If you've been following along with our OHP play 
then you're already aware that healthcare stocks have been acting 
very bullish lately.  CAH is a supplier for HMO's, and the HMO.X 
healthcare provider index is threatening to break to all-time 
highs.  The stock tacked on +3.05% today and closed just under 
the 200-dma at $69.17.  This move also broke over bearish 
resistance on the p-n-f chart and created a triple-top breakout.  
In addition to the 200-dma the stock may encounter some overhead 
pressure at the November highs of $70.  Look for shares to dip to 
the $68 level and keep an eye on how the HMO.X behaves near 500.  
We're going to consider a new long play if the stock can close 
over the $70 mark.




--- 

Sabre Holdings Corp - TSG - close: 45.36 change: -0.14

WHAT TO WATCH: Shares of this online travel company have been 
trading in an ascending channel since bottoming out at $21 in 
September.  Most recently the stock bumped off resistance at $50 
and is now at the bottom of its channel.  We're looking for 
shares to either bounce from this level or break down.  The daily 
stochastics are headed down and the MACD just signaled a bearish 
crossover, indicating that the latter may be the case.  Look for 
a move below $44 to confirm the breakdown.  Alternatively, an 
aggressive trader could enter on a bounce above the $45 mark with 
a tight stop just below the bottom of the channel.  The recent 
weakness may be due to the recent announcement from Delta 
Airlines (DAL) that they would no longer be paying commissions to 
travel agencies.  JPM weighed in with a reiterated buy on TSG 
with the explanation that the company won't see much financial 
impact from the decision.  This may be true, but if DAL's 
decision triggers an industry-wide trend then TSG could be 
vulnerable to more significant losses.  On the positive side 
we're seeing a lot of strength in other travel/hotel/leisure 
stocks.






=============
MORE TO WATCH
=============

UN   - With retail stocks looking stock this giant in the group
       could see more buying interest through the end of the 
       month.  We're watching for a break over $59.25.

JNJ  - Drugs are a mixed bag lately but JNJ has been very strong.
       We would consider a potential play if the stock would 
       pull back to bounce at $62.50 or even $61.00.

AOL  - Continues to lag the rest of the media stock group.  The
       50-dma has been overhead resistance for days.  Shorts 
       might take a new stab if shares trade under $25.00.  
       Watch out for a break over the 50-dma.

ETM  - Speaking of media stocks, this one looks like a great long
       candidate.  The growing volume and the breakout to new 
       highs while not being over extended is very tempting. 
       Other media stocks to watch are: TRB, GCI, MHP, CCU, UVN.

SVU  - With retail stocks looking strong we pulled up a couple of
       grocery issues and found two that looked appealing.  SVU
       has shown very little weakness and little volatility too.
       The move back over $26 could be a decent entry for a
       bullish play.  You may want to check out SWY too.

N    - Some of the non-gold related metal stocks are looking 
       pretty interesting.  Inco (N) has been very strong and 
       looks to be targeting a move over $20.  Check out EC too.



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

Back on course.
by Russ Moore

This morning’s economic data saw a return to the positive reports 
investor’s had become accustomed to in late February, early 
March. The bullish overtones pushed markets higher for the day 
but flat for the week.

The DOW closed with a gain of +0.9 percent while the NASDAQ added 
+0.8 percent and the NDX +1.2 percent. Volume remained light with 
1.47 billion shares trading on the big board and 1.68 billion 
moving on the tech index. Winners nosed out losers by a 19/13 
margin on the NYSE and 19/15 on the NASDAQ.

The chip sector was Numero Uno on the tech side while financial, 
oil service and biotech sectors lead the broad markets. Gold 
posted the lone red arrow in broad market action.

Trim Tabs reported that all equity funds had inflows of $7.6 
billion for the week ending March 13. The company also reiterated 
its bearish stance in a research note. "While corporate selling 
is in abundance, there is no corporate buying going on. By their 
actions, corporate investors are not seeing any pickup in the 
U.S. economy."

Last week we noted a sharp change in the Commercial net-short 
position (COT Data). In particular, we found divergence between 
Commercial and Small Specs increased substantially. The 
Commercials backed off a little this week, reducing their net-
short position by half of one percent. Current levels continue to 
show a bearish bias however, and should be monitored closely by 
all investors over the coming months.

VIX
Friday 03/15 close: 20.84


VXN
Friday 03/15 close: 40.93


10-yr Bonds
Friday 03/15 close: 5.36


Total Put/Call Ratio:  .64


Equity Option Put/Call Ratio:  .53


Index Option Put/Call Ratio:  1.70


===

NASDAQ 100 Index (NDX/QQQ)
52-Week High: 103.51
52-Week Low:   28.19
Current close: 37.23

Volume/Open Interest
Maximum calls: 38/66,890
Maximum puts : 36/42,774

Moving Averages
 10 DMA 37
 20 DMA 36
 50 DMA 37
200 DMA 38

Fibanocci Retracements
Relative High: 43.24 (12/06/01)
Relative Low:  34.97 (02/08/02)
38% 38.13
50% 39.11
62% 40.10

===

S&P 100 Index (OEX)
52-Week High:  834.93
52-Week Low:   491.70
Current close: 591.13

Volume/Open Interest
Maximum calls: 620/3,447
Maximum puts : 520/5,984

Moving Averages
 10 DMA  587
 20 DMA  573
 50 DMA  573
200 DMA  587

Fibanocci Retracements
Relative High: 600.80 (01/04/02)
Relative Low:  546.13 (01/30/02)
38% 567.00
50% 573.44
62% 579.99

===

S&P 500 (SPX)
52-Week High:  1530.01
52-Week Low:    965.80
Current close: 1166.16

Volume / Open Interest
Maximum calls: 1175/21,221
Maximum puts : 1025/23,956

Moving Averages
 10 DMA 1159
 20 DMA 1130
 50 DMA 1128
200 DMA 1146

Fibanocci Retracements
Relative High: 1176.97 (01/07/02)
Relative Low:  1077.78 (02/06/02)
38% 1115.67
50% 1127.37
62% 1139.27

==

DJIA (INDU)
52-Week High:  11,518.83
52-Week Low:    8,235.81
Current close: 10,607.23

Volume / Open Interest
Maximum Calls: 106/11,494
Maximum Puts    96/32,726

Moving Averages:
 10 DMA 10,556
 20 DMA 10,290
 50 DMA 10,043
200 DMA 10,006

Fibanocci Retracements
Relative High: 10,300.15 (01/07/02)
Relative Low    9,529.46 (01/30/02)
38%  9,823.86
50%  9,914.80
62% 10,007.28

==

Biotech Index (BTK)
52-Week High:  811.61
52-Week Low:   383.28
Current close: 529.60

Volume / Open Interest
Maximum Calls: 580/1,310
Maximum Puts:  520/1,396

Moving Averages
 10 DMA 509
 20 DMA 498
 50 DMA 512
200 DMA 538

Fibanocci Retracements
Relative High: 625.15 (12/06/01)
Relative Low:  450.20 (02/07/02)
38% 517.03
50% 537.67
62% 558.66

==

Semiconductor Index (SOX)
52-Week High: 1280.84
52-Week Low:   362.00
Current close: 594.19

Volume / Open Interest
Maximum Calls: 600/1,854
Maximum Puts:  490/2,024

Moving Averages
 10 DMA 605
 20 DMA 569
 50 DMA 558
200 DMA 543

Fibanocci Retracements
Relative High: 606.88 (01/09/02)
Relative Low:  499.09 (01/22/02)
38% 540.26
50% 552.98
62% 565.91

==

Pharmaceutical Index (DRG)
52-Week High:  455.28
52-Week Low:   339.49
Current close: 390.34

Volume / Open Interest
Maximum Calls: 380/153
Maximum Puts:  360/285

Moving Averages
 10 DMA 387
 20 DMA 385
 50 DMA 379
200 DMA 388

Fibanocci Retracements
Relative High: 403.83 (11/26/01)
Relative Low:  365.22 (02/08/02)
38% 379.93
50% 384.51
62% 389.17

*****

CBOT Commitment Of Traders Report: Friday, 03/15. 
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 
02/26/02     366,258   432,258   (66,000)    9.0%
03/05/02     361,254   445,989   (84,735)   28.4%
03/12/02     396,050   483,606   (87,556)    3.3%

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
02/26/02       139,183    62,087    77,096    14.1%
03/05/02       161,711    60,941   100,770    30.7%
03/12/02       179,825    75,025   104,800     4.0%

Most bearish reading of the year:  36,513 - 5/01/01
Most bullish reading of the year: 104,800 - 3/12/02

NASDAQ-100
Commercials   Long      Short      Net     %Change 
02/26/02      33,589    34,091      (502)    (72.0%)
03/05/02      37,549    35,419    (1,870)
03/12/02      37,415    42,942    (5,527)    195.0%

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
02/26/02        9,517    11,416   (1,899)  
03/05/02       11,961    11,214      747
03/12/02       14,571    13,045    1,526      104.0%

Most bearish reading of the year:  (1,899) - 2/26/02
Most bullish reading of the year:   8,460  - 3/13/01

DOW JONES INDUSTRIAL
Commercials   Long      Short      Net     %Change 
02/26/02      33,322    21,110   12,212      4.8%
03/05/02      37,036    25,554   11,482     (6.0%)
03/12/02      35,080    23,204   11,876      3.4%

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
02/26/02       6,333    12,547    (6,214)      7.5%
03/05/02       6,589    13,057    (6,468)      4.1%
03/12/02       6,400    13,070    (6,670)      3.1%

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        +104,800     +100,770        -87,556    -84,735

Total Open
Interest %       (+41.12%)  (+45.26%)      (-9.95%)   (-10.50%)
                 net-long   net-long       net-short  net-short


                     Small Specs             Commercials
DJIA futures     (Current) (Previous)    (Current) (Previous)
Open Interest
Net Value          -6,670     -6,468        +11,876   +11,482
Total Open
interest %       (-34.26%)    (-32.92)      (+20.38%)  (+17.59)
                 net-short   net-short       net-long    net-long


                     Small Spec              Commercials
NASDAQ 100      (Current) (Previous)    (Current) (Previous)
Open Interest
Net Value         +1,526      +747       -5,527     -1,870

Total Open
Interest %        (+5.53%)   (+3.22%)     (-6.88%) (-2.71%)
                 net-long   net-long      net-short  net-short


What COT Data Tells Us
----------------------
Indices:.Both sides backed off their respective positions this 
week as the Small Specs reduced their net-longs while the 
Commercials eased up (on a percentage basis) in their net-shorts. 

Current readings remain bearish.

Gold:.Commercials are holding steady with their net-short 
contracts. 

02/19 60,054 contracts net-short
02/26 56,409 contracts net-short
03/05 58,666 contracts net-short
03/12 58,507 contracts net-short

Data compiled as of Tuesday 03/12 by the CFTC.




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PremierInvestor.net Newsletter          Weekend Edition 03-15-2002
                                                    section 2 of 3
Copyright  2001, All rights reserved.
Redistribution in any form is strictly prohibited.

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In section two:

Net Bulls
  New Bullish Plays:     CSC
  Bullish Play Updates:  BBH, RIMM
  Bearish Play UPdates:  BRCD, CLS, CHKP, EMLX
  Closed Bullish Plays:  MERQ, MONE


Stock Bottom / Active Trader
  New Bullish Plays:     PSS
  Bullish Play Updates:  COL, DOL, OHP, KSS
  Closed Bullish Plays:  GE

High Risk/Reward
  New Bullish Play:      IKN
  Bullish Play Updates:  HIG, PVN
  Bearish Play Updates:  ADLAC

Split Trader
  - none -


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

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

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

Computer Sciences - CSC - close: $52.25 change: +0.25 stop: 49.74

Company Description:
Computer Sciences Corporation, one of the world's leading 
consulting and information technology (IT) services firms, helps 
clients in industry and government achieve strategic and 
operational results through the use of technology. The company's 
success is based on its culture of working collaboratively with 
clients to develop innovative technology strategies and solutions 
that address specific business challenges. (source: company press 
release)

Why We Like It:
Resistance at $50 repelled shares of CSC on rally attempts in 
December, January, and February.  This month the bears finally 
gave way and shares traded up to $53.47.  When CSC traded to $51 
it triggered a quadruple-top breakout on the p-n-f chart.  
Another pattern we noticed on CSC was a reverse head-and-
shoulders pattern.  The neckline was $51.00 to $50.50.  When 
shares gapped up above it the stock pulled back three days later 
to retest that old resistance as new support.  If the market 
remains bullish we think CSC could quickly trade up to $55 but 
based on the head-and-shoulders pattern we're looking for a move 
to $60.  Entries could be evaluated if shares move over $53.50 
but be aware of possible resistance at $55.  On the other hand, a 
pullback to $50-$51 could provide a lower-risk and preferable 
entry point.  However, the newsletter is picking the stock here 
at $52.25.  Our stop is nestled just under the $50 level at 
$49.74.  In recent news, CSC received a 30M deal to provide 
services for the Navy's underwater warfare program and a $25M 
contract to NASA.

Picked on March 15th at $52.25
Change since picked:     +0.00
Earnings Date         01/31/02 (confirmed)
 




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

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

Biotech HOLDRs - BBH - close: 125.45 chg: +2.20 stop: 114.00

The biotech sector was one of the big leaders for the markets on 
Friday and the BBH was a big benefactor of the move.  Check out 
these Friday results for most of the stocks in the BBH basket: 
AMGN +1.92%, BGEN +2.67%, DNA +2.28%, GENZ +2.35%, ICOS +3.15%, 
IDPH +2.50%, MEDI +3.02%, MLNM +3.80%.  We had been seeing higher 
lows in the BBH for a while but the trading range had a solid top 
on it near $124 to $125.  The move on Friday above the $125 mark 
but the HOLDRs above its 200-dma and formed a quadruple top 
breakout on the PnF chart for the BBH.  We're pretty encouraged 
by the move and if the BBH can confirm with another close over 
the $125 level we'll be tempted to raise our stop early next 
week.  The next level of resistance for the HOLDRs is $127.50.

Picked on February 20th at $120.00
Gain since picked:           +5.45
Earnings Date                  N/A




---

Research In Motion - RIMM - close: 27.08 change: -0.79 stop: 26.49

Uh-oh!  Looks like trouble in Berry-land.  RIMM, the producer of 
the hot new BlackBerry always on mobile email thingamajig, 
appears to be failing as the rest of the software sector succumbs 
to ORCL's nasty news.  The GSO.X software index inched lower 
again on Friday despite a 2% pop in its biggest component 
Microsoft.  We're even more concerned about RIMM because the last 
90 minutes on Friday looked like someone pushed RIMM off a steep 
slope and everyone stepped back to watch it roll down the hill.  
The only thing that appeared to stop the late afternoon slide was 
the closing bell.  This does not bode well for Monday morning.  
Technical players will also be concerned because shares closed 
below their 10-dma.  The low on March 11th was $26.82 and the 
stock closed above that on Friday.  Maybe, just maybe shares will 
bounce again and our remaining tech long play will be saved!  
Otherwise we fully expect to be stopped out - probably before 
lunch.  However, for individual traders this may not be so bad.  
The company has earnings coming up on April 9th, which is about 
three weeks.  If the Nasdaq and/or the software sector pulls back 
for a few more days it could just offer a better entry point for 
a little pre-earnings run up.  Interestingly, a JPM analyst on 
Friday felt that the stock might be weak ahead of earnings and 
also cautioned investors that the stock might be overvalued.  The 
JPM analyst has a price target of only $24.00.  This is in direct 
contrast to the Goldman Sachs analyst remarks in late January.  
RIMM was trading near $25 when the GS analyst came out with a 
price target near $45 saying the Blackberry roll out and the 
increase in carrier distribution deals should continue to push 
RIMM's quarterly performance higher.  The belief that a nation-
wide service coverage offering the voice-enabled product by RIMM 
will be completed by the end of the year could have investors 
moving in ahead of any steep stock appreciation.  There has been 
some other numbers that seem to line up in favor of the GS 
analyst and not JPM's view.  RIMM is the top dog in the corporate 
market for handhelds and RIMM's backlog of 600K units exceeds the 
number of BlackBerries currently in existence, which is around 
500K.  It sounds like the up coming April 9th earnings 
announcement will be interesting but we may get a better entry 
point between now and then with the current look of the chart.

Picked on March 6th at $27.32 
Change since picked:    -0.24
Earnings Date        04/09/02 (confirmed)





  --------------------
  Bearish Play Updates
  --------------------

Brocade Comm. - BRCD - cls: 25.54 chg: -1.48 stop: 28.75 *new*

The weakness we saw on Thursday for BRCD continued into the 
weekend as investors pulled money off the table.  The lid on the 
stock price at $30 looks pretty strong now and the MACD is 
starting to rollover well under the zero line.  Volume has been 
light but it has been growing on these recent declines.  Most 
stocks in the industry are still under a lot of pressure.  There 
was more negativity today for Brocade's cousins in the networking 
group with UBS Warburg lowering estimates on JNPR, SONS, NET and 
TLAB.  The weakness today actually triggered our play in BRCD at 
$26.90, which also included at stop at $30.05.  The 5.4% loss on 
Friday brought shares close to potential support at $25 and 
shares might bounce but we feel the trend is now down and we see 
evidence of this on the PnF chart with a fresh column of O's.  
Very conservative traders could attempt to play with a stop at 
today's highs or yesterday's highs but we're lowering ours to 
just $28.75.  Traders still looking for an entry point might want 
to look for a failed rally on either side of $27.50 or a move 
under $25.00.  Our initial profit target is $22 but BRCD might 
trade to $20.  Please read this weekend's wrap for a broader 
market perspective.  

Picked on March 15th at $26.90
Gain since picked:       +1.36
Earnings Date         04/17/02 (unconfirmed)
 



---


Celestica - CLS - close: $37.15 change: -0.85 stop: 40.25*new*

Shares vacillated sideways for the first half-hour of trading on 
Friday before the bears got a good grip of the stock price and 
brought CLS lower.  By lunchtime the stock had fallen under 
$37.50 with conviction and it quickly traded to $36.50 before 
bouncing into the close.  I'm not telling you anything you can't 
see on an intraday chart but the move merely confirms our 
expectations that the stock will likely see more selling pressure 
due to the concerns for the contract manufacturing business.  
When big customers make comments about business still falling or 
still at a bottom with no visible signs of recovery you can guess 
that other businesses in the group also struggling.  The move 
under the $37.70 to $37.50 area was a big breakdown under one of 
our retracement levels and bulls are probably looking at risk to 
the $34.50 level, of course we're looking for a move lower than 
that.  More conservative traders can probably get away with a 
much tighter stop but we are lowering ours one dollar to $40.25.  
Traders looking for new entries might want to look for failed 
rallies at $38.50 (assuming it can get over $37.50 now) or a 
break under today's lows.  Jeff will probably mention in the wrap 
that the next day or two might have a bullish bias so bears may 
want to wait for a potentially better entry.  

Picked on March 13th at $37.98
Gain since picked:       +0.83
Earnings Date         04/17/02 (unconfirmed)
 



---

Check Point Software - CHKP - cls: 32.17 chg: -1.11 stop: 35.51

The GSO.X software index continued to inch lower despite a 2% 
gain in its biggest component MSFT.  This is likely due to the 
overall weakness across the sector as investors reacted to the 
negative earnings guidance by MSFT-rival Oracle (ORCL).  Shares 
of CHKP lost another 3.3% and are currently trading near 
potential support at $32 but we don't expect it to hold.  The PnF 
chart added some more O's and the MACD is still working on that 
soon to be bearish crossover.  Since the stock has closed lower 
four days in a row it is likely short-term oversold.  We'd look 
for a bounce on Monday as a potential entry point if it trades 
near resistance near $33.50 to $34.00.  Over $34 we'd turn 
cautious and probably step back a bit.  We are looking for a 
target price near $27.50.  No change in our stop.

Picked on March 14th at $33.28
Gain since picked:       +1.11
Earnings Date         01/15/02 (confirmed)
 



---

Emulex Corp. - EMLX - close: 27.88 change: -1.37 stop: 32.31

Premier just added EMLX to the play list on Thursday and there 
hasn't been many new developments in the play strategy.  There 
were some more negative analyst comments for the group today when 
UBS Warburg lowered estimates on JNPR, SONS, NET and TLAB.  
Shares of EMLX saw a lot of volume on the early morning move but 
the stock movement and volume seemed to taper off into the close.  
We're encouraged by the move as it confirms the downside breakout 
under $30 and its 200-dma the day before.  Plus, Friday's move 
also broke another retracement level for us.  However, bears 
should be careful as the stock and the group looks a bit oversold 
and we wouldn't be surprised to see it bounce back towards the 
$30 level.  Yet if EMLX does bounce we'd be looking at it as a 
new short opportunity once the bounce started falter.  If you 
didn't read the initial write up on Thursday we'd like to remind 
you that the point-and-figure chart (PnF) is showing bullish 
support near $26.00.  This is conflicting with our daily chart 
that shows the next support level is closer to the $24.00 to 
$24.75.  We'd like to propose a potential hypothetical scenario 
on how EMLX might trade based on the current PnF chart.  Let's 
assume the bears continue to pull the stock down to $27.00 or 
$26.00.  Then shares bounce as bears cover for a profit and bulls 
try to play a move off support (remember, this is off the PnF 
chart).  EMLX could then rally to the $29.00 or $30.00 level 
based off where it bounced and create a three-box reversal on the 
PnF chart.  Bears retake control and move towards its current 
bearish price objective under $20.00.  That's just speculation 
but let's see what happens.  The daily chart is pointing to a 
move to $25.00 but the Monday after an options expiration Friday 
is typically bullish and the stock might bounce early.

Picked on March 14th at $29.25
Gain since picked:       +1.37
Earnings Date         01/22/02 (confirmed)
 




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

  --------------------
  Closed Bullish Plays
  --------------------

Mercury Interactive - MERQ - cls: 38.39 chg: -1.05 stop: 37.75

Last night's negative guidance from ORCL was the nail in the 
coffin for our MERQ play.  Although the software index (GSO.X) 
had fallen steadily this week we were somewhat encouraged by the 
way the stock had managed to stay near the $40 level.  
Unfortunately all bets were off after Oracle CFO Jeff Henley 
expressed his opinion that tech spending would be lagging the 
overall economy in the near future.  This created a decidedly 
bearish bias in the sector today.  We'd been looking for MERQ to 
hold near-term support at $38, but shares dropped to a low of 
$37.43.  This move violated our stop at $37.75 and ending our 
play with a net loss of $3.83.  The way MERQ traded over the past 
week illustrates the axiom "don't fight the tape."  Despite the 
relative strength and breakout that led us to pick the stock in 
the first place, shares just weren't able to maintain that 
bullishness in a weakening sector.

Picked on March 11th at $41.58
Gain since picked:       -3.83
Earnings Date         01/22/02 (confirmed)




--- 

MatrixOne, Inc. - MONE - close: 12.34 chg: -0.61 stop: 12.75

We went long on MONE this Monday in an attempt to take advantage 
of a breakout over $14.  Although the stock was performing 
impressively it wasn't able to buck the broader software trend, 
which has become decidedly negative.  In response to the failed 
rally and negative sector news, we took a defensive measure on 
this play last night and raised our stop to $12.75.  Shares 
opened lower this morning and traded below that level almost 
immediately, stopping us out with a $1.30 loss.  This play didn't 
turn out as we hoped, but traders may want to take note of our 
exit strategy that allowed us to minimize losses on a day when 
MONE lost 4.71%.  It's always a good idea to re-evaluate stops if 
the trade does not go as planned.  While we opted to wait until 
last night, conservative traders could've upped their stops after 
Wednesday's decline below $14.

Picked on March 11th at $14.05
Gain since picked:       -1.30
Earnings Date         01/23/02 (confirmed)






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

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

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

Payless Shoesource - PSS - close: 61.74 change: +0.96 stop: 58.75

Company Description:
Payless ShoeSource, Inc. is North America's largest family 
footwear retailer. The company operates a total of 4,968 stores 
offering quality family footwear and accessories at affordable 
prices. In addition, customers can buy shoes over the Internet 
through Payless.com  (source: company press release)

Why We Like It:
The RLX.X retail index spent most of the week in a narrow range.  
Wednesday's unimpressive retail sales numbers could have been the 
catalyst for a sector-wide selloff, but that wasn't the case.  
Today's bullish consumer sentiment numbers propelled the RLX 
above resistance near 960 to highs not seen for two years.  We 
like PSS as a long play because it's been one of the stronger 
performers within the sector over the last few weeks.  Shares 
recently broke over long-time resistance at $60, retested that 
level, and then headed higher.  P-n-f fans may want to note that 
the stock recently broke above bearish resistance line and has 
created a bullish catapult breakout.  If retail strength 
continues on Monday, bullish positions could be had on a move 
back over $62.00.  However, we would prefer a dip to $60 or $61 
as our favorable entry point.  Our initial stop is at $58.75, 
just below the March 5th low.  At less than 5% this is a 
relatively tight stop, but if PSS abandons the $60 with 
conviction we'll be looking for the exits.  Did anyone notice the 
strong move up in the last couple of hours on Friday?  We did not 
notice any unusual activity in the after-hours markets.  If 
you're doing your homework, check out other shoemakers and 
retailers.  We liked PSS the best.

Picked on March 15th at $61.74
Change since picked:     +0.00
Earnings Date         02/22/02 (confirmed)
 




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

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

Rockwell Collins - COL - cls: 24.40 chg: +0.37 stop: 23.65 *new*

Today's 90-point gain on the Dow Jones wasn't extraordinary, but 
it did help shares of COL to another close over $24.  The DFX.X 
defense index finished fractionally higher and seems to still be 
in the process of digesting gains from the last three weeks.  COL 
has been gravitating to the $24 level after topping out at $25.35 
on Monday.  The closing price may have been artificially inflated 
by options expiration-related action in the final half hour, but 
nonetheless we're pleased with the way COL traded today.  Volume 
also returned after decreasing over the past three days of 
consolidation.  Targeting new entries could be somewhat tricky 
due to the top of the ascending regression channel near $26.00 
however the move on Friday was encouraging and more aggressive 
traders may want to look for entries on Monday.  If you're 
reading this from the email version, check out the chart we have 
provided for the weekend update.  It shows the ascending channel 
and COL's bounce off the bottom.  We are a bit less optimistic 
and thus we're going to lower our bullish target to $25.50 in an 
attempt to sell into strength.  Traders looking for an entry 
could jump on with at current levels with a minimal amount of 
risk, because we've pushed up our stop to $23.65, which is only 
five cents below the Wednesday low.  Currently Premier is up over 
eight percent in COL.

Picked on February 15th at $22.50
Gain since picked:          +1.90
Earnings Date            04/17/02 (unconfirmed)




---

Dole Food CO. - DOL - close: 30.02 change: -0.09 stop: 28.99*new*

Not much new to report here.  DOL traded in a narrow range today 
of only 27 cents.  The stock did close over resistance at $30 
again but we're going to need to see some more buying interest to 
push it out of its recent range.  Honestly, we're getting a bit 
impatient with the lack of movement in DOL but they keep telling 
us patience is a virtue.  A case could be made that shares are 
simply consolidating before heading higher, but we'd rather free 
up the cash and put it to work on stocks that are moving.  For 
now we'll give it some more time to perform.  The daily 
stochastics are bullish and a move back up to near-term highs at 
$31.46 could produce a bullish crossover on the MACD.  We would 
probably consider new long entries on the play if shares move 
over $30.25, a feat that has not been accomplished in the last 
six sessions.  We are inching our stop up again to $28.99, which 
is just under the lows from last week.  If you're reading this 
from the email version, check out the chart online showing the 
rising channel.

Picked on March 1st at $30.94
Gain since picked:      -0.92
Earnings Date        01/31/02 (confirmed)




---

Oxford Health - OHP - close: 40.45 change: +0.23 stop: 37.49

That was quite a performance by healthcare stocks this week - The 
RXH.X healthcare index was up 6.2%, and the HMO.X health provider 
index tacked on 3.3%.  There's nothing like a strong sector to 
really get plays moving and our OHP play didn't disappoint.  
Shares added nearly 5% this week and closed just below resistance 
at $41.  The MACD produced a bullish crossover this week and 
still has room to move to the upside.  It's interesting to note 
that early February's attempt to break over $41 had a MACD 
reading in the overbought range.  However, with the HMO.X trading 
under significant resistance at 500 and OHP bumping its head 
right at resistance too we wouldn't recommend new entries at 
current levels.  It may be more prudent to wait for OHP to either 
pullback to the $39.00 - 38.50 level or breakout above $41.  
Short-term traders who entered at $38.55 should have about a 5% 
gain and may want to consider taking profits now.  We're looking 
for a full 10% or more and are willing to give the stock some 
room to pull back before it heads higher.

Picked on March 8th at $38.55
Gain since picked       +1.90
Earnings Date        02/05/02 (confirmed)




--- 

Kohls Corp - KSS - close: 71.35 change: +1.38 stop: 66.75

This morning saw the release of a spate of economic data before 
the bell and the market liked what it saw.  KSS gapped up over a 
half-point and opened right at our $70.50 trigger.  At this point 
we initiated a long play with a stop at $66.75.  Adding to the 
bullishness were the Consumer Sentiment numbers, which came out 
shortly after the market opened.  The reading at 95.0 was 
stronger than the expected 92.7 and fueled a rise in KSS to 
$71.91.  Shares pulled back a tad into the close but still 
managed to add almost 2% on strong volume of 2.68M versus the 
1.7M average.  Now that this play has actually been triggered, 
lets discuss our strategy:  The p-n-f chart shows a bullish 
triangle breakout with a bullish vertical count of $85.  This 
level may be attainable, but in the near-term we're looking for a 
move to $77.  The first obstacle will be the 52-week high at 
$71.91.  Traders may want to take bullish positions on a move 
over $72 after confirming strength in the RLX.X retail index.  
Alternatively a dip back to $70 could afford less risk-averse 
traders an entry point.  FYI: point-and-figure aficionados might 
recall that a pennant or triangle breakout to the bullish side in 
a cooperating market, according to the experts, has a 71.4% 
chance of profitability with an average gain of 30.9% in 5.4 
months.  We are not expecting these sorts of gains especially 
given our short-term perspective but it makes for interesting 
speculation doesn't it. 

Picked on March 15th at $ 70.50
Change since picked:      +0.85
Earnings Date          03/05/02 (confirmed)






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

  --------------------
  Closed Bullish Plays
  --------------------

General Electric - GE - close: 40.19 change: -0.22 stop: text

Triple-witching Fridays have a reputation for being wildly 
volatile, but today's market action was pretty tame.  Likewise, 
GE traded in a narrow 28-cent range.  In the process shares 
dipped below $40 and rebounded to close above that level.  
Another close above $40 support is bullish, but we're dropping 
this play tonight anyway.  We added GE days ago with a trigger at 
$42.05 with the expectation that the stock would break over that 
resistance level.  Thus far, it hasn't even threatened to 
breakout.  As a "bellwether" for the broader economy GE should be 
performing better than it has.  The MACD is about to produce a 
bearish crossover and daily stochastics are heading down.  We may 
give GE another shot if it can actually move above $42, but in 
the meantime we'll focus our attention elsewhere.

Picked on March xth at $xx.xx <- See text
Gain since picked:      +0.00
Earnings Date        01/17/02 (confirmed)





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

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

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

Ikon Office Solut. - IKN - close: 12.36 change: -0.10 stop: 11.74

Company Description:
IKON Office Solutions is one of the world's leading providers of 
products and services that help businesses communicate. IKON 
provides customers with total business solutions for every 
office, production and outsourcing need, including copiers and 
printers, color solutions, distributed printing, facilities 
management, imaging and legal document solutions, as well as 
network design and consulting, and e-business development. IOS 
Capital, LLC, a wholly owned subsidiary of IKON, provides lease 
financing to customers and is one of the largest captive finance 
companies in North America. (source: company website)

Why We Like It:
The plummeting stock price on March 11th sure looked strange on a 
relatively strong chart like IKN.  When news came out two days 
later that the company's CEO would be stepping down it sure 
looked like someone got word a little bit early.  Fortunately, 
IKN found support again at the $12.00 level.  Since there doesn't 
seem to be any specific or negative reason he is stepping down we 
think the news has artificially depressed the stock price and has 
given us an entry point into a long play.  What makes this a 
high-risk/reward candidate is that odds of us being stopped out 
look pretty good given the short-term trend.  However, we're 
going to keep our stop pretty tight at $11.74 so we're risking 62 
cents.  More conservative traders could stick their stops right 
under $12.00 since shares have not been under this level since 
January 10th, 2002.  Stocks in a somewhat similar business like 
SPLS, ODP and OMX (they should all benefit from a economic 
rebound and increased corporate spending) all look pretty bullish 
so we are betting that IKN will play a little catch up next week.  
Our short-term target is $14.00 but shares could move higher.  

Picked on March 14th at $12.36
Change since picked:     +0.00
Earnings Date         01/25/02 (confirmed)
 




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

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

Hartford Financial Svc - HIG - cls: 67.60 chg: +0.73 stop: 64.45

The Dow ended the week higher yet again and HIG joined the 
broader market sentiment with another gain of its own.  We're 
noticed that a lot of the insurance issues are looking rather 
bullish so it is not just a HIG phenomenon.  There has been 
nothing new in the headlines for HIG but shares did see stronger 
volume on Friday and the MACD is starting to curve into a bullish 
formation.  We might even get a bullish crossover in a few more 
sessions.  The intraday chart is also revealing some bullish 
clues as buyers continued to push the stock up with higher lows.  
It's very possible that the insurance group, which has been a 
strong performer this quarter, could continue to see more window 
dressing by fund managers preparing for the end of the first 
quarter reporting.  Dips to $66 are still buyable but we think 
shares could see a strong Monday.  

Picked on March 13th at $65.74
Change since picked:     +1.86
Earnings Date         01/28/02 (confirmed)
 



---

Providian Financial - PVN - close: 6.00 change: +0.20 stop: 4.85

Tally Ho!  The banking sector sprinted to a strong finish today 
with the BKX.X ending at a seven-month high and the BIX.X ending 
at levels not seen since July of 1999.  With the group in 
breakout mode we feel pretty encouraged with our PVN play.  The 
stock has bounced from its intra-week pull back to $5.50 and 
shares managed to close at $6.00.  A couple more positive closes 
and we'll feel tempted to move up our stop.  Readers should 
remember that this is a high-risk/reward play and we suggested 
that no one consider this if you can't take about 20% heat given 
the volatility of the stock price.  More conservative traders 
"could" attempt to get by with less exposure by using a stop 
under $5.40 but don't get mad if you get stopped out next week.  
As suggested in our Thursday update traders may want to keep an 
eye on lending rivals: COF, HI and MBI which appear rather 
bullish too (some better than others).  The sector-wide breakout 
could have shorts moving to cover but eventually some profit 
taking will occur.  We're still looking for a positive beginning 
to next week but it depends if anything negative develops over 
the weekend.  

Picked on March 8th at $5.71
Change since picked:   +0.29
Earnings Date       02/07/02 (confirmed)
 




  --------------------
  Bearish Play Updates
  --------------------

Adelphia Comm. - ADLAC - cls: 22.40 chg: -0.11 stop: 24.76 
 
There appeared to be some strength in a few cable operators on 
Friday and we suspected it may be due to the FCC ruling on 
Thursday that basically landed in favor for cable players.  The 
ruling classified broadband as an "information service" and cable 
ISP providers should be able to accelerate their roll out to the 
U.S. consumer.  Unfortunately for ADLAC shareholders the stock 
did not really respond.  Friday's session, while negative, looked 
like more consolidation sideways while traders juggled for 
position near the early February support levels.  The MACD is 
looking exceedingly negative and is about to produce a bearish 
crossover but it hasn't happened yet.  Bears are probably 
encouraged that volume has been decent on the recent declines.  
However, we are urging a little bit of caution as we expect some 
bullishness next week in the markets and ADLAC could bounce 
before moving lower.  Look for failed rallies for new positions 
and gauge it against the markets and the other players in the 
group.  Traders will also want to take note and adjust there 
stops ahead of Wednesday as ADLAC just announced it would hold a 
Q4 and year-end conference call to discuss its 2001 results at 
10:00 a.m. March 27th, 2002.  

Picked on March 12th at $23.99 
Gain since picked:       +1.59
Earnings Date         03/29/02 (unconfirmed)








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=================================================================
DISCLAIMER
=================================================================

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

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

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Do not duplicate or redistribute in any form.





PremierInvestor.net Newsletter         Weekend Edition 03-15-2002
                                                   Section 3 of 3
Copyright  2001, All rights reserved.
Redistribution in any form is strictly prohibited.

The entire newsletter is best viewed in COURIER 10 for alignment
=================================================================
To view this email newsletter in HTML format with imbedded
charts and graphs, click here:
http://www.PremierInvestor.net/htmlemail/c15b_3.asp
=================================================================

In section three:

Market Watch for Week of March 18th
   - Major Earnings
   - Stock Splits
   - Economic Reports

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

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


==================================================
Market Watch for the week of March 18th
==================================================

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

Symbol  Company               Date           Comment      EPS Est

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

CGA    Corus Group plc        Mon, Mar 18  -----N/A-----      N/A
DG     Dollar General         Mon, Mar 18  After the Bell    0.23
ESIO   Electro Scientific Ind Mon, Mar 18  After the Bell   -0.01
KPN    Koninklijke KPN        Mon, Mar 18  -----N/A-----      N/A
PETC   Petco Animals          Mon, Mar 18  After the Bell     N/A
PFP    Premier Farnell        Mon, Mar 18  -----N/A-----      N/A

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

FDO    Family Dollar Stores   Tue, Mar 19  Before the Bell   0.36
GPN    Global Payments        Tue, Mar 19  After the Bell    0.26
GS     Goldman Sachs          Tue, Mar 19  Before the Bell   0.89
IPR    International Power    Tue, Mar 19  -----N/A-----      N/A
JBL    Jabil Circuit          Tue, Mar 19  After the Bell    0.07
MKC    McCormick & Co         Tue, Mar 19  -----N/A-----     0.45
PAYX   Paychex                Tue, Mar 19  -----N/A-----     0.18
RHAT   Red Hat                Tue, Mar 19  After the Bell    0.01
PKS    Six Flags, Inc.        Tue, Mar 19  After the Bell   -1.02

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

ATYT   Technologies           Wed, Mar 20  -----N/A-----     0.06
SID    Companhia Siderur Nac  Wed, Mar 20  -----N/A-----     0.71
FDX    FedEx Corp             Wed, Mar 20  Before the Bell   0.36
LEN    Lennar                 Wed, Mar 20  Before the Bell   0.99
NDC    NDCHealth              Wed, Mar 20  After the Bell    0.34
WGO    Winnebago              Wed, Mar 20  Before the Bell   0.41
WOR    Worthington Industries Wed, Mar 20  -----N/A-----     0.12

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

COMS   3Com                   Thu, Mar 21  After the Bell   -0.16
BKS    Barnes&Noble           Thu, Mar 21  Before the Bell   1.33
CCL    Carnival               Thu, Mar 21  Before the Bell   0.14
DRI    Darden Restaurants     Thu, Mar 21  -----N/A-----     0.49
EON    E.ON AG                Thu, Mar 21  -----N/A-----      N/A
FTE    France Telecom         Thu, Mar 21  Before the Bell    N/A
GUC    Gucci Group NV         Thu, Mar 21  -----N/A-----     0.62
KBH    KB Home                Thu, Mar 21  -----N/A-----     0.79
LWSN   Lawson Software, Inc.  Thu, Mar 21  After the Bell    0.04
NKE    Nike                   Thu, Mar 21  -----N/A-----     0.45
PALM   Palm                   Thu, Mar 21  After the Bell   -0.04
SLR    Solectron              Thu, Mar 21  After the Bell    0.03
TECD   Tech Data              Thu, Mar 21  Before the Bell   0.61

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

BMET   Biomet                 Fri, Mar 22  Before the Bell   0.24
TKA    TELEKOM AUSTRIA AG     Fri, Mar 22  -----N/A-----      N/A


  -------------------------------
  Upcoming Stock Splits In The Next Two Weeks...
  -------------------------------

Symbol  Company Name              Ratio    Payable     Executable

SMD     Singing Machine           3:2      03/15       03/18
ICUI    ICU Medical               3:2      03/15       03/18
ELMS    Elmers Restaurants       21:20     03/21       03/22
FELE    Franklin Electric CO      2:1      03/22       03/25
YDNT    Young Innovations         3:2      03/28       04/01
ESCA    Escalade                  3:1      03/28       03/29
DWL     DeWolfe                   3:2      03/28       03/29
TOL     Toll Brothers             2:1      03/28       04/01


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

As the markets march into the last two weeks of the month and
the end of the first quarter a lot of eyeballs on Wall Street will 
be watching the CPI numbers on Friday.  However, the beginning
of the week will hold investor attention with the Tuesday FOMC
meeting.

==============================================================
                       -For-           
Monday, 03/18/02
----------------
None


Tuesday, 03/19/02
-----------------
Trade Balance (BB)       Jan  Forecast:-$26.9B  Previous: -$25.3B
FOMC Meeting (DM)


Wednesday, 03/20/02
-------------------
Housing Starts (BB)      Feb  Forecast: 1.630M  Previous:  1.678M
Building Permits (DM)    Feb  Forecast: 1.650M  Previous:  1.706M
Treasury Budget (DM)     Feb  Forecast:-$61.0B  Previous: -$48.2B


Thursday, 03/21/02
------------------
Initial Claims (BB)    03/16  Forecast:    N/A  Previous:    377K
CPI (BB)                 Feb  Forecast:   0.2%  Previous:    0.2%
Core CPI (BB)            Feb  Forecast:   0.2%  Previous:    0.2%
Leading Indicators (DM)  Feb  Forecast:   0.3%  Previous:    0.6%
Philadelphia Fed (DM)    Mar  Forecast:   17.8  Previous:    16.0
FOMC Minutes (DM)      01/30


Friday, 03/22/02
----------------
None


Definitions:
DM=  During the Market
BB=  Before the Bell
AB=  After the Bell



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

DD      Dupont                     48.47     +0.88
AXA     AXA Ads                    22.00     +1.23
RDN     Radian Group               49.09     +0.87
AGY     Argosy Gaming Co           36.53     +1.38
JAKK    Jakks Pacific Inc          20.64     +1.12

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

LUX     Luxottica Group            19.81     +1.08
HHLF    Hurricane Hydro            12.79     +1.38
ENTG    Entegris Inc               14.07     +2.30
CMLS    Cumulus Media Inc          18.45     +1.40
FNIS    Fidelity Natl Info Sol     18.50     +1.25

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

WMT     Wal-Mart Stores Inc        63.75     +1.48
PG      Procter & Gamble           87.00     +2.01
ONE     Bank One Corp              42.19     +2.19
PHA     Pharmacia Corp             45.24     +2.83
FITB    Fifth Third Bancorp        69.13     +1.16
CCU     Clear Channel Comm.        51.97     +2.18

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

MRK     Merck & Co                 59.75     -3.69
HRB     H&R Block                  45.31     -1.73
PH      Parker Hannifin Corp       51.00     -2.87
NAV     Navistar Intl. Corp        42.95     -1.10
OVER    Overture Services Inc      29.10     -3.10
FLIR    FLIR Systems               45.97     -5.53

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

DHI     D.R. Horton Inc            40.65     -1.04
FBN     Furniture Brands Intl      39.81     -0.96
TOL     Toll Brothers Inc          50.12     -2.04
MENT    Mentor Graphics Corp       23.63     -0.96
USTR    United Stationers Inc      39.35     -2.90



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=================================================================
DISCLAIMER
=================================================================

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

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

*****************************************************************
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Copyright  2001  PremierInvestor.net. and
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Do not duplicate or redistribute in any form.




DISCLAIMER

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