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Daily Newsletter, Monday, 03/25/2002

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PremierInvestor.net Newsletter                 Monday 03-25-2002
                                                  section 1 of 2
Copyright © 2001, All rights reserved.
Redistribution in any form is strictly prohibited.

The entire newsletter is best viewed in COURIER 10 for alignment
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To view this email newsletter in HTML format with imbedded
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In section one:

Market Wrap:      Monday Meltdown
Watch List:       CTXS, EMLX, GMST, GENZ, NUE and more...
Play of the Day:  QCOM (new bearish play)

*******************************************************************
MARKET WRAP  (view in courier font for table alignment)
*******************************************************************
      03-25-2002          High     Low     Volume Advance/Decline
DJIA    10281.67 -146.00 10449.26 10280.77 1.05 bln    967/2208
NASDAQ   1812.49 - 38.90  1863.05  1812.42 1.26 bln   1329/2219
S&P 100   571.67 -  8.42   581.70   571.59   Totals   2296/4427
S&P 500  1131.87 - 16.83  1151.04  1131.87
RUS 2000  496.39 -  6.00   503.30   496.01
DJ TRANS 2817.23 - 60.04  2884.67  2815.11
VIX        20.55 +  0.93    20.83    19.98
VXN        39.18 +  1.62    39.69    36.62
TRIN        1.89
Put/Call    0.59
*******************************************************************

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

Monday Meltdown

The last week of the first-quarter began with broad weakness in
the major market averages.  Fears over first-quarter earnings,
interest rates, and geopolitical events kept the buyers on the
sidelines Monday.

Averaging Down

The Dow Jones Industrial Average ($INDU) finished at its lowest
level this month at 10282, lower by 146.00 or 1.40 percent.  The
INDU hasn't traded below the 10,300 level February 28.  The
breakdown below that level in Monday's sessions suggests a
technical failure and perhaps portends additional downside this
week.

The S&P 500 (SPX.X), too, finished at its lowest level this
month.  The blue chip index settled at 1131, off by 16.83
points or about 1.50 percent.  The SPX finished just above its
50-dma at 1127, which it hasn't traded below since late
February.

The Nasdaq-100 (NDX.X) was the hardest hit of the major market
averages with its 2.89 percent decline.  The tech-heavy index
finished at 1428, lower by 42.50 points.  Weakness across the
broader technology sectors, including Biotech (BTK.X), contributed
to the NDX's drop.

The Dow Jones Transportation Average ($TRAN) was hard hit too.
The $TRAN continued lower in its recently-established descending
trend, just off of its recent low at the 2800 level.  The index
settled the day at 2817, lower by 60.04 points, or about 2
percent.  Within the $TRAN the Airlines (XAL.X) were especially
weak.  The XAL.X finished 4.77 percent lower.

Treasury Travails

It was a wild day in the bond market Monday.  The Treasury market
began the day weak as yields across the board moved higher.  The
benchmark 10-year Yield (TNX.X) set a new yearly high early in
the session following the release of February's existing home
sales data, but more on that below.  After reaching its day high,
the TNX.X sold-off sharply into the close of trading as rumblings
from South America hit the market.  Despite the whipsaws, the
TNX.X finished fractionally higher to 5.406%.

Glittering Gold

Gold equities and the commodity itself continued to climb
following last week's snapback rally.  The Gold and Silver
Index (XAU.X) -- a basket of gold equities -- finished at a
two-year high above the 70 level.  Its 3.27 percent rally made
the XAU.X by far the best performing sector in Monday's
market.  Leading components to the upside included Gold
Fields (NASDAQ:GOLD), better by 8.40 percent, Harmony Gold
(NASDAQ:HGMCY), higher by 7.28 percent, and Anglogold (NYSE:AU),
up by 5.52 percent.  J.P. Morgan Securities upgraded shares of
Placer Dome (NYSE:PDG) to a buy rating based on relative
valuation.  Shares of Placer Dome finished 2.59 percent higher.

XAU - Weekly



The commodity finished fractionally higher in Monday's
session, just off of the psychological $300 per ounce level.
The equities often lead the metal, so it's worth watching the
trading in the futures market over the next few days as a move
above $300 could produce a pop higher on short covering.

Touchdown

According to Dow Theory, the  industrials, transports, and
utilities need to participate in order to confirm a growing
economy.  Only the utilities tried to rally Monday, leaving the
other two components to under performance.  The $TRAN has show
weakness in the last several weeks, exacerbated by the weakness
in the XAL.X.  Its nearly 5 percent drop in Monday's session
placed the XAL.X back at the century mark, which is a key
technical level for that index.

XAL - Daily



Following its cost guidance last Friday, Continental Airlines
(NYSE:CAL) had its estimates for this year lowered by Credit
Suisse First Boston this morning.  That development cast a
cloud over the sector for the rest of the day as selling
spread from one component to another.  U.S. Airways (NYSE:U)
was the only component of the XAL.X to finish in positive
territory, and it only did so by 11 cents.  Leading losers
within the XAL.X included Continental, lower by 9.74 percent,
Northwest Airlines (NASDAQ:NWAC), off by 6.69 percent, and
Delta Airlines (NYSE:DAL), sliding 6.48 percent lower.

House of Cards

The National Association of Realtors reported Monday morning
that existing home sales fell from January's record setting
rate, but remained historically strong nonetheless.  The
association reported that the existing housing market grew at
a 5.88 million annual rate.  It was the second positive
report in as many weeks from the housing market that resulted
in a sell-off in housing stocks.

February's number was boosted by the same catalysts that have
been at play for the last few years, namely mild weather,
historically low mortgage rates, and a flight to investment
in housing as an alternative to stocks, for example.  The
problem, as one economist noted, is that the housing market
may be front-loaded this year, where later in the year may
be setting up for disappointing sales.  Moreover, others point
to the prospects of rising long-term rates as a possible
detriment to demand. 

The bottom-line is that the housing market remains one of
the strongest segments of the market and economy, but the
fear of that trend ending, or perhaps all of the good news
already being discounted into the stock prices, has investors
stepping aside.  The perceived incremental upside that
remains in housing does not justify the potential downside
risk.  It's a tradeoff that investors have been passing on in
the last two weeks.

$DJUSHB - Daily



The Dow Jones U.S. Home Construction Index ($DJUSHB) is one
of the few sectors of the market that trades near an all-time
high.  The simple retracement bracket on the chart above
reveals that only a small portion of the index's move off of
the September lows has been retraced so far.  That alone
reveals the inherent strength of the sector, while at the
same time revealing the amount of downside risk that remains.
The stocks within the housing sector have been quite volatile
in recent weeks, making the stocks an excellent trading
vehicle if you're in on the right side of the move.  Some of
the stocks in the housing sector that are worth watching
are:

Centex        (NYSE:CTX)
Pulte Homes   (NYSE:PHM)
Beazer Homes  (NYSE:BZH)
D.R. Horton   (NYSE:DHI)
KB Homes      (NYSE:KBH)
Toll Brothers (NYSE:TOL)
Ryland        (NYSE:RYL)

The relative strength of the $DJUSHB remains on a buy
signal by a wide margin versus the S&P 500.  In other
words, it would take a big downside move in the housing
sector in order for the group to begin under performing
the broader market.  That fact again reveals the strength
of the housing market.

Tech Bulls Take Care

Last Friday, the Nasdaq-100 Bullish Percent ($BPNDX) went
into a bull correction, reversing its six week bull
confirmed status.  The reversal into a defensive market
position was epitomized by Monday's 2.89 percent drop in
the NDX itself.  The internal weakness that was revealed
by the reversal in the $BPNDX begs caution on the part of
tech bulls.  If you're holding gains on technology stocks,
such as the recent run in the semiconductor equipment
stocks, consider taking preventative measures against
downside risk.  That could include using protective puts
to protect against downside or simply tightening up stop
loss orders below the current market.  Technology bears
can start to get more aggressive now that the $BPNDX is
out of bull confirmed mode.  Rallies to resistance may be
the best way to minimize upside risk when looking to take
short/put entries into relatively weak tech stocks.

Three-Day Plan

This week's trading is shortened by Friday's holiday
closing, which also marks the end of the first-quarter
reporting period.  The end of the quarter typically brings
two things with it: pre-announcements and positioning.
Companies short on the profit and sales fronts will
announce as much in the next week or two.  At this point
in the quarter, there haven't been a lot of warnings.
Also, portfolio managers making changes to asset weightings
and fund holdings for the first-quarter will need to
complete those moves by Thursday's close.  That could
produce a lot of volatility in the debt and equity markets
this week.

The last week of the first-quarter has been a bad week for
stocks in recent years.  Combine that trend with the
overly bullish sentiment on Wall Street, and stocks could
be in for extended downside.  The CBOE Market Volatility
Index (VIX.X), or fear gauge, remains pinned near its
historic lows, which is a sign of complacency.  And when
the crowd grows complacent, it typically portends weakness
in stocks.  

While there exists the potential for some end of the quarter
upside in stocks, the risks appear weighted to the downside
in my opinion.  Moving through this week's trading, readers
might look to take defensive measures to protect bullish
positions or look to the defensive sectors of the market, such
as the XAU.X, for potential upside positions.  The more
aggressive types can look for weak tech stocks to rally up
to resistance levels for high odds bearish entries.

Eric Utley
Premier Investor


==================================================================
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
---------------------------------

Citrix Systems - CTXS - close: 17.15 change: -0.68

WHAT TO WATCH: Shares of CTXS spent the last two weeks trying in 
vein to trade over $19.  This level coincides with bearish 
resistance on the p-n-f chart, and it looks like bulls finally got 
impatient with the stock's inability to move higher.  Today's 
3.81% decline dropped CTXS through its 50-dma, which had recently 
acted as support.  The MACD is curling lower from the baseline and 
daily stochastics are bearish looking as well.  Watch for a move 
below $17 or failed rally at $18 to consider a short position.  
The GSO.X software index looks especially weak at the moment and a 
retest of the February lows near 150 could be in order.




--- 

Emulex Corp - EMLX - close: 29.76 change: -1.79

WHAT TO WATCH: BRCD, EMLX, and QLGC all rebounded sharply from 
their recent lows but it now appears the rally may have been 
mostly short-covering.  Storage stocks took quite a whipping today 
after Salomon Smith Barney reduced revenue estimates for EMC.  
EMLX lost 5.7% and closed under its 200-dma at $29.87.  After last 
week's rise we think there is ample room for additional movement 
to the downside.  The MACD and daily stochastics are both looking 
bullish, but if the NASDAQ breaks under 1800 we think storage 
stocks could lead the move lower.  Aggressive traders could take 
short position on continued weakness from current levels.  
However, after the bell today, BRCD came out and said it expects 
to meet or beat Q2 estimates.  This added some after hours 
strength to a couple of these stocks but we're not sure it will 
last.  We'll see how this impacts the sector tomorrow and if Wall 
Street shrugs off the news we could see the bears pile on very 
quickly.




--- 

Gemstar-TV Guide Intl. Inc - GMST - close: 14.85 change: -0.85

WHAT TO WATCH: Now that's one weak-looking chart!  GMST is 
actually threatening to break to all-time lows.  Shares are 
currently trading near its 1999 IPO price, and A move below the 
all-time low of $13.87 could open the floodgates for another round 
of selling.  Of course the stock doesn't look that strong closing 
under $15 either.  The catalyst for the recent weakness was last 
Monday's announcement of a wide fourth-quarter loss and 
resignation of its co-president.  Analysts pummeled the stock with 
downgrades but shares were able to find support at $15.  That 
support evaporated today as GMST lost over 5% to close at $14.85.  
At this point it appears that a retest of the all-time low may be 
in store.  Aggressive traders may want to consider going short at 
current levels and just use a good stop. 




--- 

Genzyme Corp - GENZ - close: 49.25 change: -2.55

WHAT TO WATCH: Biotechs led the NASDAQ lower today with a 3.28% 
loss on the BTK.X biotech index.  GENZ underperformed the sector 
and lost nearly 5%.  What's significant about this decline is the 
way shares sold off sharply after failing to conquer the 100 and 
200-dma's near $52.  The MACD and daily stochastics are looking a 
bit overbought as well and we think there could be some more 
profit taking from the March rally ahead of investors.  A move 
below recent lows at $48.95 could lead to a decline to $44, 
although support may emerge at $47 (bolstered by the 50-dma).  
Watch for continued relative weakness versus the BTK.X.




---

Nucor Corp - NUE - close: 61.25 change: +2.15

WHAT TO WATCH:  NUE shot up 3.6% today after Salomon Smith Barney 
raised their price target to $80.  Shares moved over resistance at 
$60 and tagged a new 52-week high at $62 before pulling back into 
the close.  One could make the argument that NUE is overbought 
after nearly doubling since September, but President Bush's recent 
steel tariff decision has given investors a new reason to be 
bullish on domestic steel producers.  We like the high volume 
behind today's move (1.3M versus the average of 648K) and the 
MACD, which just produced a bullish crossover today.  The $62 
level has acted, as resistance dating back to 1997, and traders 
may want to consider going long if shares close above that level.  
Those traders who would like to see some consolidation of today's 
move could wait for a successful retest of $60 again.  PnF chart 
fans will notice that the move today produced a triple top breakout.  





-------------
MORE TO WATCH
-------------

Thank you to all the readers who emailed us over the weekend and
cast their vote on the "MORE TO WATCH" section of the Watch List.
We will try and include it in addition to the thrice-weekly watch
list whenever possible.


NTIQ - The trend of lower highs looks pretty bearish and today's
       8.75% loss on strong volume says the bears are still in
       control.  More aggressive traders could short it with a
       short-term objective of $20, which could prove to be tough
       support to break but the MACD does favor the bears.

ITMN - Odds are good that with a move like that there was some 
       bad news out today.  The extreme volume and 14% loss 
       could be capitulation by the bulls.  We wouldn't chase it
       but a failed rally at $32 or $30 may be worth playing.
       Expect potential support at $27.50, but beyond that the 
       next true low was about $12.50 back in March of 2001.

ALLY - Even news of a 2-for-1 stock split several days ago is
       not lending ALLY any strength.  It would appear that 
       investors are locking in profits from the amazing Q4
       rally of 2001.  We see potential weakness to $25 or its
       200-dma near $22.50 but be careful, the split should 
       keep bulls nibbling at the stock price.

ORBK - Again, we haven't checked the news, but any stock that 
       adds almost 6% on a negative market day is worth taking 
       note of.  Shares look somewhat bullish but there is 
       overhead resistance at $32.50.


P.S. Tonight's MORE TO WATCH section are a bit thicker than 
normal.  Usually, we try and limit them to a sentence or two.




===============
Play-of-the-Day  
===============
(( NEW BEARISH HIGH RISK/REWARD PLAY ))


QUALCOMM - QCOM - close: 39.47 change: -1.00 stop: 42.05

Company Description:
QUALCOMM Incorporated is a leader in developing and delivering 
innovative digital wireless communications products and services 
based on the Company's CDMA digital technology. The Company's 
business areas include CDMA chipsets and system software; 
technology licensing; the Binary Runtime Environment for 
Wireless(TM) (BREW(TM)) applications platform; Eudora® e-mail 
software; digital cinema systems; and satellite-based systems 
including portions of the Globalstar(TM) system and wireless fleet 
management systems, OmniTRACS® and OmniExpress®. QUALCOMM owns 
patents that are essential to all of the CDMA wireless 
telecommunications standards that have been adopted or proposed 
for adoption by standards-setting bodies worldwide. QUALCOMM has 
licensed its essential CDMA patent portfolio to more than 100 
telecommunications equipment manufacturers worldwide. (source: 
company press release)

Why We Like It:
We have been waiting and watching for QCOM to fall under the $40 
level of support for two weeks.  Now that shares have finally done 
so, we're going to try and capture any downside move in the stock 
price.  We like how stochastics are already bearish and the MACD 
is coiling over and about to produce a bearish crossover right at 
the zero line.  This is not the first test to break the $40 
support level so we feel a bit more confident but conservative 
traders may want to wait for shares to trade under last Thursday's 
lows of $39.00.  The Premier newsletter is going to pull the 
trigger now (after all, this is a new High Risk Reward play) but 
we going to start with a stop loss just above the $42 level, which 
was overhead resistance for most of last week.  We're placing QCOM 
in the high-risk section because the stock seems is famous for 
being somewhat volatile.  The flood of recent news you might find 
for the company has done little to support the stock price and the 
IXTCX combined telecom index has slipped below the 175 level and 
looks to be aiming for a retest of the February lows near 160.  
With broad-sector weakness combined with weakness in the Nasdaq, a 
bearish play on QCOM under $40 looked too good to pass up.  We are 
going to target a move towards February lows with our bearish 
profit target at $33.00.  

Picked on March 25th at $39.47
Change since picked:     +0.00
Earnings Date         04/24/02 (unconfirmed)
 






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



PremierInvestor.net Newsletter                  Monday 03-25-2002
                                                   section 2 of 2
Copyright © 2001, All rights reserved.
Redistribution in any form is strictly prohibited.

The entire newsletter is best viewed in COURIER 10 for alignment
=================================================================
To view this email newsletter in HTML format with imbedded
charts and graphs, click here:
http://www.PremierInvestor.net/htmlemail/c25b_2.asp
=================================================================

In section two:

NetBulls Tech Stocks
  Stop Adjustment Update:  NVDA (short)
  Bearish Play Comments:   CLS
  New Bearish Play:        ISSX
  Bearish Play Update:     BRCM

StockBottom Non-tech Stocks
  Bullish Play Comments:   PSS

High-Risk/Reward Stocks
  New Bearish Plays:       CMOS, QCOM
  Closed Bullish Play:     PVN
  

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)


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

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

Stop Adjustments
----------------

NVIDIA Corp - NVDA - close: 46.10 change: -2.47 stop: 50.01 *new*

As we suspected, Friday's failed rally at $50 was the cue for 
hungry bears to resume their feast on NVDA.  In response to 
today's 5% decline we're lowering our stop to $50.01.  If 
considering new entries, be aware that support may emerge at $45.
 




Play Comments
-------------

Celestica - CLS - close: 34.00 change: -2.27 stop: 37.21

The 6.25% decline today was certainly a welcome development for 
this short play.  The Premier Investor newsletter is now up over 
10%.  The move under $34 was a key level for the bears.  We're 
still targeting a move to $32, and will likely be lowering our 
stop tomorrow.  However, conservative traders may want to consider 
lowering their stop while very short-term traders may want to 
consider covering and locking in profits now.  Look for a regular 
update on CLS tomorrow.  




============
NB NEW PLAYS
============

  ----------------
  NEW BEARISH PLAY
  ----------------

Internet Security Sys. - ISSX - cls: 25.20 chg: -2.66 stop: *text*

Company Description:
Founded in 1994, Internet Security Systems (ISS) is a pioneer and 
world leader in software and services that protect critical 
information assets from an ever-changing spectrum of threats and 
misuse (source: company press release)

Why We Like It: 
Shares of Internet security stocks have been looking weak.  VRSN, 
CHKP (already on our Play List), and ISSX are all threatening to 
break below near-term lows.  We think ISSX is an appealing 
candidate for a short based on its recent downtrend and negative 
technicals.  Shares rallied with the NASDAQ at the beginning of 
the month but got turned back by the 100-dma and bearish 
resistance on the p-n-f chart.  Over the past two weeks the stock 
has traded in a pattern of lower highs and it now rests just above 
historical and psychological support at $25.  If this level 
breaks, ISSX could drop to $22.21 (February lows) or even $20 in 
short order.  With the MACD curling lower and GSO.X software index 
looking weak (MSFT closed under $60 today), it looks like the odds 
are tilted in the bears' favor.  In order to confirm a break below 
$25, we're going set a trigger at $24.99.  If shares trade at or 
below this price we'll go short with a stop at $27.51, although 
more conservative traders may want to wait for the stock to trade 
below today's low of $24.49.  If we are triggered, traders can 
look for potential support from the bulls at $22.50 but we are 
going to target the $20 level.

Picked on March xth at $xx.xx <- See text 
Change since picked:    +0.00
Earnings Date        04/16/02 (unconfirmed)
 




===============
NB PLAY UPDATES
===============

  -------------------
  Bearish Play Update
  -------------------

Broadcom Corp - BRCM - close: 35.11 change: -1.07 stop: 38.45

Broader tech weakness is just what we needed to get this play
 rolling.  The negativity came courtesy of Salomon Smith Barney, 
who said EMC could miss Q1 revenue estimates by more than 10%.  
EMC is not a chip stock but it did help alter the tone of the 
market in favor of the bears on Monday.  The SOX.X lost 2.82% 
today and closed below recent support at 580, while BRCM dropped 
2.95% and in the process fell below our trigger at $35.75.  
Traders may want to keep an eye on Intel (INTC) too.  Shares of 
the chip giant are trading precariously at $30 with its 200-dma 
just 50 cents below it.  A breakdown here could lead the whole 
sector a lot lower and a lot faster.  Now that we're short in 
BRCM, our stop is at $38.45, just above the 200-dma.  We'll 
initially be targeting $30, but will re-evaluate that target as 
the play progresses.  After the bell today BRCM announced that it 
expects a $581M amortization cut from an accounting rule regarding 
intangible assets and good will.

Picked on March 25th at $35.75
Gain since picked:       +0.64
Earnings Date         04/23/02 (unconfirmed)






=================================================================
AT Active Trader/Non-tech plays
=================================================================

Play Comments
-------------

Payless Shoesource - PSS - cls: 59.63 chg: -1.51 stop: $58.75

PSS is dropping precipitously and today's close under $60 suggests 
it may get worse before it gets better.  We wouldn't be surprised 
to get stopped out tomorrow, and traders may want to consider 
failed rallies at the $60 level as exit points.  We originally 
picked PSS at $61.74.






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

============
HR NEW PLAYS
============

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

Credence Systems - CMOS - close: 20.19 change: -0.20 stop: *text*

Company Description:
A leader in the manufacture of automatic test equipment (ATE) for 
the global semiconductor industry, Credence and its subsidiaries 
also provide design and test validation solutions that enable 
faster time-to-market with lower total cost-of-test. (source: 
company website)

Why We Like It:
Salomon Smith Barney came out this morning with upgraded price 
targets on six chip-equipment stocks.  You'd think this might've 
helped out the sector, but the SOX.X semiconductor index actually 
finished the day with a 2.82% loss and closed below support at 
580.  The sector wasn't able to buck the overall NASDAQ weakness, 
which could accelerate if the NASDAQ Composite breaks support at 
1800.  Although we'd be reticent to short some of the stronger 
chip-equipment stocks (AMAT, KLAC, and NVLS come to mind), CMOS 
looks like it may be due for a breakdown.  Shares can't seem to 
break over $21, and the p-n-f chart shows virtual wall of strong 
bearish resistance at $22.  Furthermore, the MACD and daily 
stochastics look to be curling lower, foretelling some selling in 
the near-term.  However, before taking a position we'd like to see 
the stock break support at $20.  If shares trade at or below 
$19.94 we'll go short with a 5% stop at $21.01.  More aggressive 
traders can consider a stop at $22.01 since this is the strongest 
level of resistance.  We'd rather not take that much heat at the 
moment.  Our initial profit target is at $16.25, but very short-
term traders may want to strongly consider taking their money off 
the table if shares drop to the $18.00-$18.50 level.  Shares 
bounced at $18.50 in mid-March and the 200-dma currently rests 
near $18 so this area could prove tough for bears to claw through.  
Fortunately, the MACD looks pretty overbought and about to roll 
over while the daily stochastics have already begun to fall.


Picked on March xth at $xx.xx <- see text
Change since picked:    +0.00
Earnings Date        02/20/02 (confirmed)
 


 
--- 

QUALCOMM - QCOM - close: 39.47 change: -1.00 stop: 42.05

Company Description:
QUALCOMM Incorporated is a leader in developing and delivering 
innovative digital wireless communications products and services 
based on the Company's CDMA digital technology. The Company's 
business areas include CDMA chipsets and system software; 
technology licensing; the Binary Runtime Environment for 
Wireless(TM) (BREW(TM)) applications platform; Eudora® e-mail 
software; digital cinema systems; and satellite-based systems 
including portions of the Globalstar(TM) system and wireless fleet 
management systems, OmniTRACS® and OmniExpress®. QUALCOMM owns 
patents that are essential to all of the CDMA wireless 
telecommunications standards that have been adopted or proposed 
for adoption by standards-setting bodies worldwide. QUALCOMM has 
licensed its essential CDMA patent portfolio to more than 100 
telecommunications equipment manufacturers worldwide. (source: 
company press release)

Why We Like It:
We have been waiting and watching for QCOM to fall under the $40 
level of support for two weeks.  Now that shares have finally done 
so, we're going to try and capture any downside move in the stock 
price.  We like how stochastics are already bearish and the MACD 
is coiling over and about to produce a bearish crossover right at 
the zero line.  This is not the first test to break the $40 
support level so we feel a bit more confident but conservative 
traders may want to wait for shares to trade under last Thursday's 
lows of $39.00.  The Premier newsletter is going to pull the 
trigger now (after all, this is a new High Risk Reward play) but 
we going to start with a stop loss just above the $42 level, which 
was overhead resistance for most of last week.  We're placing QCOM 
in the high-risk section because the stock seems is famous for 
being somewhat volatile.  The flood of recent news you might find 
for the company has done little to support the stock price and the 
IXTCX combined telecom index has slipped below the 175 level and 
looks to be aiming for a retest of the February lows near 160.  
With broad-sector weakness combined with weakness in the Nasdaq, a 
bearish play on QCOM under $40 looked too good to pass up.  We are 
going to target a move towards February lows with our bearish 
profit target at $33.00.  

Picked on March 25th at $39.47
Change since picked:     +0.00
Earnings Date         04/24/02 (unconfirmed)
 




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

  ----------------
  Closed Long Play 
  ----------------

Providian Financial - PVN - close: 6.90 change: -0.22 stop: 6.75

Well, perhaps another double-digit move to the upside was too much 
to ask for.  PVN declined with the broader market today and 
retraced some of Friday's 15.77% gain.  We were hoping for a move 
over $7.25 but instead shares saw an intraday dip below $6.75, 
which stopped us out with an +18.2% move.  At this point we expect 
some consolidation, but keep an eye out for a close above $7.25.  
That's where the stock opened after a gap lower from $12.40 in 
October, and if PVN gets above that level it could begin to fill 
in the gap.  For traders who continue to follow PVN you'll want to 
keep an eye on the banking indices, which both look weaker after 
the triple digit loss in the Dow Jones today.  You may also want 
to know that Jeffries upgraded the stock and gave it a $10 price 
target.  They also mentioned that PVN might be a take over 
candidate worth a significant premium above their $10 target.  
This price target news is in addition to last Friday's price 
target news by a Morgan Stanley broker who expects PVN to trade 
near $14 over the next $12 months.  However, we want to remind 
everyone that the current bullish price objective deciphered from 
the point-and-figure chart is only $9.25.  This isn't a lid on the 
stock price as some equities do exceed their initial projections.  
Just be aware of what the supply and demand patterns are telling 
you.

Picked on March 8th at $5.71
Change since picked:   +1.04
Earnings Date       02/07/02 (confirmed)
 





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

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


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

ZION    Zions Bancorp              55.66     +0.61
TNT     Tatneft Ads                13.37     +0.78
HHLF    Hurricane Hydro            15.15     +0.55
LABL    Multi-Color Corp           14.59     +0.90

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

SCRI    Sicor Inc                  16.90     +1.20
ULGX    Urologix Inc               18.41     +2.40
CTEC    Cholestech Corp            17.91     +1.41
USLB    US Laboratories Inc        12.39     +1.15

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

NUE     Nucor Corp                 61.25     +2.15
BEC     Beckman Coulter Inc        49.85     +1.55
ORBK    Orbotech Ltd               30.73     +1.68
AMHC    American Healthways Inc    26.10     +1.96
RMCI    Right Mgmt Consultants     23.05     +4.00

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

PKX     Pohang Iron & Steel        25.87     -1.11
ZMH     Zimmer Holdings            32.95     -1.21
SWK     The Stanley Works          44.15     -1.60
LM      Legg Mason Inc             52.26     -1.34
CAL     Continental Airlines       26.49     -2.86
BWA     Borg Warner Inc            58.49     -2.41

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

BP      BP Plc                     51.65     -0.45
DYN     Dynegy Inc                 29.71     -1.01
LRCX    Lam Research               27.64     -0.85



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