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Daily Newsletter, Thursday, 03/28/2002

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PremierInvestor.net Newsletter          Weekend Edition 03-28-2002
                                                    section 1 of 3
Copyright  2001, All rights reserved.
Redistribution in any form is strictly prohibited.

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In section one:

Market Wrap:      "Precise" may be an understatement.
Play-of-the-Day:  Bullish compression.
Watch List:       TSG, PDE, BA, TMCS, FDX, ADBE and more!
Market Sentiment: Enter Second-Quarter.

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U.S. Market Numbers
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MARKET WRAP  (view in courier font for table alignment)
------------------------------------------------------------------
        WE 3-29          WE 3-22          WE 3-15          WE 3-08
DOW    10403.94 - 23.73 10427.67 -179.56 10607.23 + 34.74  +203.63
Nasdaq  1845.35 -  6.04  1851.39 - 16.91  1868.30 - 61.37  +126.93
S&P-100  577.87 -  2.22   580.09 - 11.04   591.13 +  1.29  + 13.68
S&P-500 1147.39 -  1.31  1148.70 - 17.46  1166.16 +  1.85  + 32.53
W5000  10775.74 -  1.12 10776.86 -127.83 10904.69 + 14.02  +330.66
RUT      506.46 +  4.07   502.39 +  3.27   499.12 -   .73  + 21.51
TRAN    2917.96 + 40.69  2877.27 - 74.27  2951.54 - 58.70  +113.11
VIX       19.32 -  0.30    19.62 -  1.15    20.77 -  0.84  -  0.52
VXN       36.28 -  1.28    37.56 -  2.70    40.26 -  1.36  -  0.32
TRIN       0.84             1.12             0.56             0.73
TICK       +793             +647             +855             +927  
Put/Call    .79              .66              .64              .62 
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WE= week ended

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

"Precise" may be an understatement

Every Friday I go back and review my previous weeks observations 
from the Friday market wrap just to see if my mind is right and 
make sure I'm seeing things halfway correct.  I didn't see this 
last night, but Anglogold (NYSE:AU) $25.18 -2.25% traded a high 
of $26.02 yesterday.  In last Friday's wrap, you and I were 
thinking that some bears in gold might get squeezed a bit and 
that a bullish trade established in Anglogold (AU) Monday morning 
might want to look to sell strength above $26.

Well, $26.02 seems a little too precise for this week's high for 
Anglogold (AU), but perhaps hints at just how frugal this market 
is right now.  I'm not saying that I'm the smartest money in the 
market or that I know where all the buyers and sellers are lining 
up, but last week I mentioned how a trader has to take what the 
market gives him or her and not stick around and ask too many 
questions when a stock gets close to your target.

Anglogold Chart - Daily Interval




Anglogold (AU) didn't make it to our play list this week, but 
traders that took the trade from Friday's market wrap are still 
looking good if holding long.  Today's range was "inside" of 
Wednesday's and a trader that had read up on the "inside day" 
trading technique in the Bailey's Basics section 
http://www.PremierInvestor.net/education/baileysbasics/092701_1.asp 
can snug a stop just under today's low of $24.99 to help 
assure a gain.  You will note that Tuesday's trading (3rd bar 
from the right) was "inside" of Monday's bar and the stock did 
NOT violate Monday's low.  A trader that has simply been 
following the stock higher each day with a trailing stop under 
the previous days low is still in a bullish trade.

The only reason I pointed out the $26.02 price high is to simply 
drive home a point of just how finicky I think the MARKET is 
right now when it comes to profits.  I don't think the MARKET is 
looking/expecting 20% gains in short periods of time and bulls 
and bears are quick to try and lock in gains when they get them.

Will history repeat itself?

Subscribers may remember me mentioning recently that shares of 
Brocade Communications (NASDAQ:BRCD) $27.00 +2.7% had achieved a 
bearish count of $22 prior to our profiling of this stock as a 
short candidate on March 13th at $26.90.  When the stock fell 
from our profiled entry point and started firming up, we were 
quick to lower our stop to $24.21 and were stopped out for a gain 
on March 21st.  

Now look what happened to one of our current bearish plays in 
shares of NVIDIA Corporation (NASDAQ:NVDA) $44.36 -2.5% today 
when the stock traded a session low of $41.87!

NVIDIA Chart - $1 box




I'd sure as heck lower a stop to help assure profitability if a 
trader is short shares of NVIDIA (NVDA).  The stock achieved its 
bearish vertical count today and overhead resistance is up at 
$50.  In a sideways market environment like we're in, I don't 
want to try and get cute and squeeze blood from a turnip that has 
already see a lot of red in recent weeks.  By lowering a stop 
just above today's close, it still give the stock an opportunity 
to go lower, but helps assure a gain for the account.

Lesson's learned

"Fool me once, shame on you.  Fool me twice, shame on me!"  We 
didn't get "cute" with our bearish trade in Brocade (BRCD) and 
subscribers should have put a gain to their bottom line.  I think 
we did try and get "cute" with a bearish trade in Emulex (EMLX) 
and ended up seeing a would-be 9% gain turn into a 10% loss when 
we didn't get aggressive by lowering our stop in the trade.  

"Bearish vertical counts are for the birds!"  I've heard that 
more than once.  For those that only "believe" in bar charts, 
then check this out.

NVIDIA Corporation Chart - Daily Interval




NVIDIA (NVDA) may well have been one of "those" stocks that a 
fund manager wanted to get off the books before the end of the 
first quarter (today), but we never know for sure.  Volume was 
brisk at 26 million shares traded.  I'd like to see the stock gap 
lower Monday morning and fall right to the next level of 
retracement at $33, but we understand from the point and figure 
chart's bearish count of $42 and 61.8% retracement at $42.16, 
that near-term, the $42 level may have too many buyers near it.  
In a rather "sideways" market like we're in, a trader needs to 
try and take what the market gives you. (see play update for new 
stop)

What did the market give us?

It was another tightly contested match between the bulls and 
bears this week as the major market averages fell little more 
than 1.9%.  It's interesting to note that we started the month of 
March with the headline "In like a lion, out like a lamb" as 
market history tended to have stocks showing some bullishness in 
the first half of the month and bears getting the upper hand in 
the second-half of the month.

Our weekly monitoring of the major averages depicts that March 
did come in like a lion, and the last two weeks of the month 
found the losses on a weekly basis.

Weekly market averages/sector performance




One thing that just stuck out to me is the Natural Gas Index 
(XNG.X).  I see a "string of blue" (blue is up, red is down, 
black is unchanged) that spans the spreadsheet dating back to the 
week ended February 15th.  I'm going to build on this a little 
later as I think I found a "natural gas related stock" to watch 
on Monday that makes some sense from this trend.

This week we saw fractional losses in the major market averages 
with the smaller-cap Russell 2000 managing the slimmest of gains.

This weeks biggest sector loser was the biotechs as depicted by 
the Biotech Index (BTK.X).  We've really tightened up the stop on 
our profiled bullish play in the Biotech HOLDRS (AMEX:BBH) from 
February 20th (I think this is a "record" for length of time 
we've held a trade).  For those that are interested in the group, 
I did take a "snapshot" of what a hypothetical position in each 
of these stocks looked like back in our March 1st market wrap 
http://www.PremierInvestor.net/markets/marketwrap/030102_1.asp
Here is how that basket of stocks looks as of today.  

Biotech HOLDRS - # of representative shares




Note:  Gilead Science (GILD) split 2:1 so I did adjust the number 
of shares in a hypothetical BBH portfolio to reflect the split.  
The long blue arrow is what I feel represents the "bulk" of the 
performance of the Biotech HOLDRS (AMEX:BBH).  The Achilles heel 
is Biogen (NASDAQ:BGEN).  On March 1st, the P/L % from benchmark 
date of February 20th (when we profiled the BBH as bullish) has 
fallen from a 1.94% gain in BGEN to a 8.28% loss as of tonight's 
close.  Amgen (AMGN), Genentech (DNA) and Immunex (IMNX) have 
carried their weight since the beginning of March.  With Amgen 
(AMGN) slipping back below its 200-day moving average today, I 
don't hold much hope right now for a sector rally near term.  
Thus we're going to keep a tight stop on things.  As you can see, 
the "best performer" in the BBH has been Affymetrix (AFFX), but 
it represents such a small weighting in the HOLDRS that it hasn't 
had much of an impact on things.  Sepracor (SEPR) has gotten 
crushed like a grape and it would take one heck of a "dead cat 
bounce" at this point to make an impact on things.

It's getting late, and I'm way past editors deadline, so I want 
to quickly mention a stock I think bulls should be looking for 
Monday.  

I didn't think anything of this earlier, but I made a little bit 
of money in this stock back in 2000 when the natural gas stocks 
heated up.  Actually, this is a company that would benefit from a 
revival in natural gas production and with the Natural Gas Index 
(XNG.X) putting together some steady gains in recent weeks, I 
like this stock as a near-term bullish trade and then even more 
for a longer-term investor.  If you can, think of a "domino 
theory" and how a natural gas producing company like an Apache 
(NYSE:APA) might increase some capital expenditures toward 
natural gas production and perhaps lease/rent some compressors 
from Hanover Compressor (NYSE:HC) $17.99 +5.82%.

Hanover Compressor Chart - Weekly interval




Tonight, after the close, HC reported earnings (that's right 
positive earnings) of $0.24, which included one time charges and 
currency devaluations.  That was still good enough to beat 
consensus of Zacks for $0.20.  I've marked some various 
observations on the WEEKLY chart above.  I like HC for a near-
term trade and longer-term investment.  Now, please believe me 
when I tell you that I performed the retracement on the above 
chart BEFORE I looked at the point and figure chart.  I later 
came back and made note of 80.9% retracement at $34.61.

Hanover Compressor - $0.50 and $1 box




I wouldn't chase shares of HC above the $19 level Monday morning, 
but if the stock cooperates and doesn't gap on tonight's earnings 
report, I'd be looking long on a trade between $18.51 (I want the 
stock to give the triple-top buy signal at $18.50) and look for a 
near-term move (within the week) to the $21 level.  At $21, I'd 
expect some resistance from the bearish resistance trend (red +) 
from the point and figure chart, and also from our 38.2% 
retracement bracket.

A short-term trader might not mind a trade at $18.50 and sell 
short-term strength at $21 as that would represent a 13.5% gain.  
A longer-term investor is holding out for much more than that and 
would look to hold the stock longer-term to a potential bullish 
target near $33.  

Well... the markets are closed tomorrow in observance of Good 
Friday, so we'll be back Monday morning.

Market history

According to the Stock Trader's Almanac, the first half of April 
has a tendency to outperform the second half of the month, and 
the first two days of April tend to be bullish.

No fooling!  The first day of April has seen the Dow Industrials 
post a gain 6 of the last seven years.

April of 1999 (spring following "Asian Flu," Russian currency 
devaluation and collapse of Long Term Capital Management here is 
the U.S) was the first month ever to see the Dow Industrials gain 
1000 points.  In 2001, the Dow Industrials gained 856 points.  
Some attribute the early month bullishness to last minute 
contributions to retirement plans and stocks anticipating great 
first quarter earnings by rising sharply before earnings are 
reported (it depends on what group you're bullish on).

Did you "cringe" when I wrote "stocks anticipating great first 
quarter earnings by rising sharply before earnings are reported?"  
If you did, then you're probably stuck in the tech-related 
doldrums.  

Who knows, there might actually be some semiconductor stocks that 
get a boost in early April.  The group has been the strongest 
among the technology area.  Heck, I've been waiting patiently for 
Applied Materials (NASDAQ:AMAT) $54.27 +4.42% to pull back to $48 
and it just isn't happening.  Look for one of our play writers to 
set up trade in semiconductor equipment maker Novellus Systems 
(NASDAQ:NVLS) $54.13 +3.89% that has a good action point for 
bulls.

Some other Dow components to be keeping an eye on if history for 
the Dow Industrials were to repeat some past bullishness in early 
April is Boeing (NYSE:BA) $48.25 +1.94%, Honeywell (NYSE:HON) 
$38.27 -0.07% and United Technologies (NYSE:UTX) $74.20 +0.61%.  
We've got some work to do on these before profiling them in our 
play list, but something to begin working on.

So... enjoy the 3-day weekend and we'll see you all back here on 
Monday morning!

Jeff Bailey
Senior Market Technician


=========================
Play-of-the-Day (Bullish)
=========================
(( new non-tech stock long play ))

Hanover Compressor - HC - close: 17.99 change: +0.99 stop: 16.74

Company Description:
Hanover Compressor Company is the global market leader in full 
service natural gas compression and a leading provider of 
service, financing, fabrication and equipment for contract 
natural gas handling applications. Hanover provides this 
equipment on a rental, contract compression, maintenance and 
acquisition leaseback basis to natural gas production, processing 
and transportation companies that are increasingly seeking 
outsourcing solutions (source: company press release)

Why We Like It:

Amidst all the news about the rising price of oil and gold 
lately, there hasn't been much talk about natural gas.  Natural 
gas futures (ng02j) have risen over 60% since January and are 
close to breaking to levels not seen since last summer.  We like 
HC as a long play because they stand to benefit from continued 
highs.  Stocks like VPI more-or-less trade in tandem with the NG 
futures, but companies like HC that lease drilling and mining 
equipment see a revenue boost a bit later in the business cycle 
as it becomes more lucrative to mine the gas.  The stock is also 
looks good from a technical standpoint.  After rising sharply 
from February lows near $10, shares spent the previous month 
consolidating under resistance at $18.  Volume has been 
increasing over the past three sessions, daily stochastics look 
bullish, and HC closed just under $18.  A trade at $18.50 would 
also create a triple-top breakout on the p-n-f chart.  We think 
now is the time to go long, but first want to see some 
confirmation of a breakout.  Thus, we're placing a trigger at 
$18.26.  If the stock trades at or above this level we'll go long 
with a stop at $16.74.  That's just under Wednesday's low.  We'll 
initially be targeting $20.00 to $21.00, but may later re-
evaluate our exit strategy depending on the strength of the stock 
and sector.  We see a long-term potential upside of $35, but for 
the purposes of this trade it would be better to take profits 
near p-n-f resistance at $21.  If you look at the earnings date 
below you'll notice that the company actually announced on 
Thursday.  Results were mixed, as Q4 net income fell 21% and 
revenue rose 53%.  Its hard to say how Wall Street will respond 
to this news but our trigger ensures that we'll only enter this 
play if the reaction is positive.

Picked on March 28th at $xx.xx <- see text
Gain since picked:       +0.00
Earnings Date         03/28/02 (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
---------------------------------

Sabre Holdings - TSG - close: 46.71 change: +1.07

WHAT TO WATCH: We really like the look of TSG at this level and 
strongly considered it for a play on the non-tech list.  The two-
day bounce at the 50-dma looks like an entry point and shares 
have found strong support at that level for the last few months.  
The bounce higher on Thursday put the stock back into the bottom 
of its ascending channel for the last six months.  More 
aggressive traders can look to jump in here with a tight stop 
under Tuesday's or Wednesday's low.  We're going to wait and see 
how shares react Monday (and/or Tuesday) before considering it 
for the play list again.  Initial resistance is at $50 but we our 
ultimate goal would be a move to $55.




--- 

Pride Intl. Inc - PDE - close: 15.90 change: -0.08

WHAT TO WATCH: Shares of PDE were able to maintain the majority 
of their Wednesday gain as the first quarter came to an end on 
Thursday.  With the price of Oil hitting new relative highs we 
wanted to keep an eye on some oil stocks that looked enticing.  
PDE is more of an oil service stock and doesn't look quite as 
extended as some of the producers.  The bounce off the 200-dma 
from Tuesday is also encouraging from a bulls perspective.  One 
way to play this would be to use a trigger at Thursday's high of 
$16.25.  If PDE traded at $16.26 or higher we'd consider a 
possible long play.  Our first target would be $18.00 and the p-
n-f chart doesn't show resistance until $18.50.




--- 

Boeing Co - BA - close: 48.25 change: +0.92

WHAT TO WATCH: Shares of BA have benefited from some positive 
news recently and the stock has bounced from the $46 level near 
its 200-dma.  The MACD is starting to curl into a bullish move 
but has not yet made the crossover.  On the other hand, 
stochastics are looking positive.  More aggressive traders may 
want to consider plays at this level with stops under the recent 
lows or some traders may want to wait for the stock to close back 
over the $50 level.  The strong volume over the last two days 
looks encouraging too.




--- 

Ticketmaster - TMCS - close: 29.58 change: +0.99

WHAT TO WATCH: The point-and-figure chart looks a little bit 
extended for TMCS but the daily chart is showing lots of 
strength.  Buyers continue to create higher lows and shares 
appear poised to breakout above the $30 level of resistance.  We 
considered writing TMCS as a play with a trigger at $30.05 but 
thought shares might consolidate another day or two.  We would 
probably use the 10 or 20-dma's as potential stop placement 
guidelines.  Our target would be $35.00.




--- 

Fedex Corp - FDX - close: 58.10 change: +0.04

WHAT TO WATCH: With the Dow Jones Transport sector (TRAN) 
bouncing off its 50-dma and heading back towards the 3000 level, 
shares of FDX look like a decent bullish candidate.  Shares of 
FDX have consolidated for almost a month between $56 and $58 and 
the stock could be done digesting its YTD gains.  With the recent 
low near the 50-dma and the MACD looking like its ready to 
produce a bullish crossover, this stock might be starting its 
next leg up soon.  




--- 

Adobe Systems - ADBE - close: 40.29 change: +1.44

WHAT TO WATCH: ADBE has been flirting with the $40 level for most 
of the previous month.  The stock traded to a near-term intraday 
high of $41.37 on robust volume of 4.8M versus the average of 
3.2M.  Fueling today's 3.70% move was an upgrade by Prudential 
based on their belief that ADBE is well positioned to take 
advantage an economic recovery.  Technically, the close over $40 
is positive.  This level has been resistance over the past two 
weeks.  Traders can consider taking bullish positions if the 
stock trades over $41.37.  Those looking for further confirmation 
may want to wait for a move over $42, which would trigger a 
double-top buy signal on the p-n-f chart.  Also be sure to 
confirm sector strength by checking the GSO.X software index.  
Specifically, a break below recent support at 160 would signal 
that the bears are still in control, while a break over the 20-
dma at 168 would be bullish.





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

MEG  - This media stock has received some positive comments by
       brokers recently and shares have skyrocketed higher.  
       The stock moves have been backed by volume but we would
       not chase it.  Watch for a pull back.

ASMI - This chip stock produced a nice breakout on Thursday
       with rising volume the last three sessions.  A pull back
       may or may not occur but a dip to $25 looks like an
       entry point.

ACF  - We are still watching for a move over $40.  The recent
       consolidation has been on lower volume but buyers are
       stepping in near the 15-dma.  Be patient.

DST  - Another stock showing a lot of strength.  We'd watch for
       a move over $51.00.

DLX  - We've been watching this stock for months.  The collapse
       this week was a monumental break in the trend.  We are not 
       brave enough to believe the bounce at the 100-dma is 
       buyable or not but the close over $45 is encouraging.

PPDI - A stronger drug stock with a growing trend of higher
       lows.  We'd consider a long play with a close over
       $34.25.  Watch out for resistance near $38.

JDAS - Love the breakout over the multi-week consolidation but
       would not chase it.  Look for a pull back and bounce at
       $30.  Tight stops would be prudent.

SNE  - We've been waiting for a pull back to the $50 level for
       almost three weeks and this week may be as close as we
       can get.  A move over $52.50 might be a trigger point.

NTT  - Another Japanese stock that looks enticing.  We would wait
       for a move over the 200-dma at $21.00.



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

Enter Second-Quarter
By Eric Utley

The first-quarter of '02 finished with a blah.  The major
averages finished last week's trading bifurcated, displaying
little in the way of volatility.  The sector scorecard finished
mostly positive.  Technology sectors of the market were
strongest at quarter's end, possibly a product of end of the
quarter mark-ups.  For example, the beaten down Fiber Optic
Index (FOP.X) was last Thursday's best performing sector; it
was one of the worst performing during the quarter.  Meanwhile,
the defensive sectors of the market pulled back, possibly a
product of end of the quarter profit taking.  The super strong
Gold and Silver Index (XAU.X) led the way to the downside last
Thursday with its 1.78 percent decline.

One trend that was consistent last quarter was the decline in
implied volatility.  The CBOE Market Volatility Index (VIX.X)
hit a new yearly low during Thursday's trading.  Appropriate
enough!  The complacency, in my opinion, is a problem for
stocks ahead of the summer doldrums and first-quarter earnings
season.  By way of the options market, participants appear far
too comfortable with the prevailing sentiment in the economy and
market.  I don't know what the catalyst(s) will be to increase
fear.  It could be major disappointments from the technology
sector; it could be a revival of accounting worries; it could be
heightened tensions in the Middle East; it could be an invasion
into Iraq; it could be merely a function of seasonality.
Whatever plays out, I think that the VIX below 20 is dangerous
for stocks.  The way I'm playing it is through legging into
various May and June puts, including individual stocks and
indexes.  The defined risk of buying options on sale is a bet
that I'm comfortable with.

The Nasdaq-100 Bullish Percent ($BPNDX), big surprise, is
another metric I'm monitoring closely.  We've witnessed a
pretty big decline in the $BPNDX in the last week, which has
removed some of the downside risk associated with the tech
laden index.  In Thursday's session, the $BPNDX dropped by
another 3 percent, or net 3 more stocks went on sell signals.
The $BPNDX in its current set-up has a long way to go before
giving a Bear Confirmed signal, which itself says that there's
still some downside risk.

Finally, the end of quarter mark-ups were in full effect
Thursday.  Just take a look at the lousy volume figures in
conjunction with the new high/new low numbers.  Such light
volume allowed the shady characters in money management land
to push positions around, thereby boosting performance in the
final day of the quarter.  The shenanigans played at quarter's
end can often lead to artificial weakness in some of the
mark-up targets, because the demand that pushed the stocks
higher was artificial to begin with.

-----------------------------------------------------------------

Market Averages


DJIA ($INDU)

52-week High: 11350
52-week Low :  8062
Current     : 10404

Moving Averages:
(Simple)

 10-dma: 10470
 50-dma: 10111
200-dma:  9981

S&P 500 ($SPX)

52-week High: 1316
52-week Low :  945
Current     : 1147

Moving Averages:
(Simple)

 10-dma: 1152
 50-dma: 1127
200-dma: 1142


Nasdaq-100 ($NDX)

52-week High: 2071
52-week Low : 1089
Current     : 1453

Moving Averages:
(Simple)

 10-dma: 1467
 50-dma: 1479
200-dma: 1536


Fiber Optics ($FOP)

The FOP was the best performing sector in Thursday's session,
gaining 4.41 percent for the day.  That move came in spite of
a warning from Juniper Networks (NASDAQ:JNPR).  Maybe a little
short covering and window dressing at play?

Sector leaders included Ciena (NASDAQ:CIEN), ONI Systems
(NASDAQ:ONIS), who Ciena is acquiring, Lucent (NYSE:LU),
Vitesse (NASDAQ:VTSS), and Nortel (NYSE:NT).

52-week High: 139
52-week Low :  81
Current     :  91

Moving Averages:
(Simple)

 10-dma: 90
 50-dma: 97
200-dma: N/A


Gold and Silver ($XAU)

The rally in tech stocks attracted capital away from the
defensive Gold and Silver Index (XAU.X) in Thursday's
session.  The XAU earned the day's worst performing sector
spot with its 1.78 percent decline.  It's been a volatile
sector recently, a marked change from six to nine months
ago.

Leading to the downside included shares of Harmony Gold
(NASDAQ:HGMCY), Agnico Eagle Mines (NYSE:AEM), Gold Fields
(NASDAQ:GOLD), Anglogold (NYSE:AU), and Placer Dome (NYSE:PDG).

52-week High: 72
52-week Low : 46
Current     : 71

Moving Averages:
(Simple)

 10-dma: 67
 50-dma: 64
200-dma: 57

-----------------------------------------------------------------

Market Volatility

The VIX hit another new yearly low in last Thursday's session
with its trade below 19.

Meanwhile, the VXN traced a new all-time low with its trade
down to 36.21

CBOE Market Volatility Index (VIX) - 19.32 +0.07
Nasdaq-100 Volatility Index  (VXN) - 36.28 -0.88

-----------------------------------------------------------------

          Put/Call Ratio  Call Volume   Put Volume
Total          0.79        365,706       289,346
Equity Only    0.70        325,461       227,508
OEX            1.07          7,778         8,291
QQQ            3.69         16,931        62,493
 
-----------------------------------------------------------------

Bullish Percent Data

           Current   Change   Status
NYSE          64      + 0     Bull Confirmed
NASDAQ-100    55      - 3     Bull Correction
DOW           77      + 0     Bull Confirmed
S&P 500       75      + 0     Bull Confirmed
S&P 100       76      - 1     Bull Confirmed

Bullish percent measures the number of stocks in an index 
currently trading on a buy signal on their point and figure 
chart.  Readings above 70 are considered overbought, and readings 
below 30 are considered oversold.

Bull Confirmed  - Aggressively long
Bull Alert      - Cautiously long
Bull Correction - Pause or pullback in upward trend
Bear Alert      - Take defensive action if long
Bear Confirmed  - High risk if long, good conditions for shorting
Bear Correction - Pause or rebound in downtrend

-----------------------------------------------------------------

 5-Day Arms Index  1.13
10-Day Arms Index  1.04
21-Day Arms Index  1.04
55-Day Arms Index  1.21

Extreme readings above 1.5 are bullish, and readings below .85 
are bearish.  These signals don't occur often and tend be early, 
but when the do, they can signal significant market turning 
points.

-----------------------------------------------------------------

Market Internals

        Advancers     Decliners
NYSE      1740           1414
NASDAQ    2037           1543

        New Highs      New Lows
NYSE      196             33
NASDAQ    210             43

        Volume (in millions)
NYSE     1,127
NASDAQ   1,493

-----------------------------------------------------------------

Commitments Of Traders Report: 03/19/02

***COT data will be updated next week***

Weekly COT report discloses positions held by small specs
and commercial traders of index futures contracts at the 
Chicago Mercantile Exchange and Chicago Board of Trade. COT data 
can be found at www.cftc.gov.

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 tend 
to be wrong.  

S&P 500

S&P Commercials maintained their relatively higher net bearish
position in the prior week by dropping a significant number of
longs and a small number of shorts.  The group's % of OI,
however, increased by a larger amount.  Small traders maintained
their yearly high net bullish position.

Commercials   Long      Short      Net     % Of OI 
03/05/02      361,254   445,989   (84,735)  (10.5%)
03/12/02      396,050   483,606   (87,556)   (9.9%)
03/19/02      322,938   410,494   (87,556)  (11.9%)

Most bearish reading of the year: (111,956) -   3/6/01
Most bullish reading of the year: ( 36,481) - 10/16/01

Small Traders Long      Short      Net     % of OI
03/05/02      161,711     60,941  100,770     45.3%
03/12/02      179,825     75,025  104,800     42.6%
03/19/02      145,262     43,066  102,196     54.3%

Most bearish reading of the year:  36,513 - 5/01/01
Most bullish reading of the year: 104,800 - 3/05/02
 
NASDAQ-100

NDX commercials dropped a big chunk of their long position,
resulting in a drastic climb in the group's net bearish
stance.  Small traders went the opposite direction by shedding
a larger number of short contracts, establishing a firm net
bullish position.

Commercials   Long      Short      Net     % of OI 
03/05/02       33,549     35,419    (1,870)   (2.7%)
03/12/02       37,415     42,942    (5,527)   (6.9%)
03/19/02       24,792     33,699    (8,907)  (15.2%)

Most bearish reading of the year: (15,521) -  3/13/01
Most bullish reading of the year:   7,774  - 12/21/01

Small Traders  Long     Short      Net     % of OI
03/05/02       11,961    11,214       747      3.2% 
03/12/02       14,571    13,045     1,526      5.5%
03/19/02       11,637     5,527     6,110     35.6%

Most bearish reading of the year:  (9,877) - 12/21/01
Most bullish reading of the year:   8,460  -  3/13/01

DOW JONES INDUSTRIAL

Dow commercials shed a significant number of both long and
short positions.  The result of their actions was a drastic
drop in the group's net bullish position.  Small traders
reduced their total position, too, resulting in a modest
drop in the group's net bearish position.

Commercials   Long      Short      Net     % of OI
03/05/02       37,036    25,554   11,482     18.3% 
03/12/02       35,080    23,204   11,876     20.4%
03/19/02       20,858    13,283    7,575     22.2%

Most bearish reading of the year: (8,322) -  1/16/01
Most bullish reading of the year: 15,135  - 10/16/01

Small Traders  Long      Short     Net     % of OI
03/05/02        6,589    13,057    (6,468)   (32.9%) 
03/12/02        6,400    13,070    (6,670)   (34.3%)
03/19/02        4,651    10,367    (5,716)   (38.1%)

Most bearish reading of the year:  (8,777) - 10/12/01
Most bullish reading of the year:   1,909  -  1/16/01



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PremierInvestor.net Newsletter          Weekend Edition 03-28-2002
                                                    section 2 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
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In section two:

Net Bulls
  New Bullish Plays:     NVLS
  New Bearish Plays:     CVG
  Bullish Play Updates:  BBH
  Bearish Play Updates:  BCE, BRCM, CHKP, CSCO, ISSX, NVDA, STK
  Closed Bearish Plays:  CLS


Stock Bottom / Active Trader
  New Bullish Plays:     HC
  Bullish Play Updates:  CAH, DOL, HRB, KSS, OHP, PSS

High Risk/Reward
  Bullish Play Updates:  HIG
  Bearish Play Updates:  QCOM

Split Trader
                         FSBK: 3-for-2 split announcement
                         MMIS: 5-for-4 split announcement
                         OPTN: 5-for-4 split announcement
                         

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

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

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

Novellus Systems - NVLS - cls: $54.13 chg: +2.03 stop: *text*

Company Description:
Novellus Systems, Inc., an S&P 500 company, manufactures, markets 
and services advanced deposition and surface preparation for 
today's advanced integrated circuits. The company's products are 
designed for high-volume production of advanced, leading-edge 
semiconductor devices at the lowest possible cost. (source: 
company press release)

Why We Like It:
The chip sector is sharply divided between the haves and have-
nots.  In latter category are specialized chip manufacturers like 
BRCM, NVDA, and GNSS, whose stocks have been trending down since 
the short-covering rally in early-March.  Even the large chip 
manufacturers such as AMD and INTC have been unable to put 
together any sort of sustainable rally.  In sharp contrast, semi-
equipment manufacturers have recently been trading strongly.  The 
group continued its move higher today after Taiwan Semiconductor 
(TSM) increased its 2002 capex guidance.  AMAT, NVLS, and KLAC 
are all threatening breakouts and look attractive as potential 
play candidates.  NVLS in particular stands out because of the 
way shares have consolidated under resistance at $55.  In 
addition to scaring shorts into submission, a break over this 
level would also create a triple-top buy signal on the p-n-f 
chart.  The oscillators indicate a move higher may be in the 
cards.  Daily stochastics are rising, while the MACD is about to 
produce a bullish crossover (albeit a very high one.)  Because we 
want confirmation of a breakout, we're initiating this play with 
a trigger at $55.05.  If the stock trades at or above this level 
we'll go long with a stop at $49.98.  This is a bit more heat 
than we'd normally prefer to take, but we want to avoid getting 
stopped out on a bounce from the $50 support level.  Less risk-
averse traders may want to exit on a move below the Wednesday low 
of $51.20.  Although NVLS has shown a tendency to outperform the 
SOX.X, some traders may want to look for a move over resistance 
at 600 in the SOX.X to confirm sector bullishness.  Our initial 
upside target is likely to be $60 but we will re-evaluate as the 
play moves along.

Picked on March xth at  $xx.xx
Change since picked:     +0.00 <- see text
Earnings Date         04/15/02 (unconfirmed)
 




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

Convergys - CVG - close: 29.57 change: -0.71 stop: see text

Company Description:
Convergys Corporation, is the global leader in integrated billing 
and customer care services provided through outsourcing or 
licensing. They serve top companies in telecommunications, 
Internet, cable and broadband services, technology, financial 
services, and other industries in more than 40 countries. We also 
provide integrated, outsourced, human resource services to 
leading companies across a broad range of industries. Convergys
(TM) employs more than 45,000 people in 47 customer contact 
centers and in our data centers and other offices in the United 
States, Canada, Latin America, Europe, Israel, and Asia. 
(source: company press release)

Why We Like It: 
Computer networks have not been the strongest sectors to be 
invested in this quarter but CVG has been under performing the 
group, which has bounced recently.  Quite the contrary, CVG has 
closed under the $30 support level and is poised to close under 
three-month old support near $29.00.  Thursday's decline came on 
very strong volume of 2.5 million shares.  We first thought the 
move and the volume must have been inspired by some news event 
but we could not discover anything significant that may have 
caused it.  Our plan for CVG is simple.  With the stock's 
relative weakness, if the market sees profit taking next week 
then CVG could lead the way down.  We want to short CVG if shares 
trade at or below $29.00, so our trigger will be $28.99.  Once we 
are triggered our exit price or profit target is $25.00.  We'll 
initiate the play with a stop loss at $30.51 and then inch it 
down as the play progresses.

Picked on March xth at $xx.xx <- See text 
Change since picked:    +0.00
Earnings Date        01/24/02 (confirmed)
 




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

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

Biotech HOLDRs - BBH - close: 119.81 change: -1.94 stop: 119.45 

What a difference a week makes.  Last Thursday the BBH was 
trading near $128 and testing the top of the ascending channel 
that has dictated its trading range since early February.  Five 
sessions later, the HOLDR's are at the bottom of the channel and 
dangerously close to breaking below our stop.  Today's 1.59% 
decline reflected similar losses in most noteworthy biotechs: 
AMGN -1.92%, BGEN -0.94%, DNA -1.27%, and SEPR -1.47%.  Now that 
shares have pierced the bottom of the channel, will we see shares 
snap higher, or break down completely?  Our crystal ball is a bit 
cloudy.  The p-n-f chart shows that the BBH currently resides 
just above a new bullish support trend.  The ability of the BTK.X 
biotech index to maintain support at 500 was also encouraging.  
What we find discouraging is the BTK.X's inability to reclaim its 
50-dma.  Whether or not the 500 level of support holds will 
likely dictate whether shares can remain above our stop at 
$119.45.  What's disconcerting is the way the biotechs have faded 
the NASDAQ in recent sessions.  This could be attributed to End-
of-Quarter money rotation, but in any case it's not something we 
like to see.  BBH's MACD is showing a fresh bearish crossover, 
while the daily stochastics have started to head higher from 
oversold.  Just as the recent test of the upper band of the 
channel was a good point to take profits, the recent dip may 
offer a favorable entry point.  Traders could target low-risk 
entries at current levels, but we're not too fond of catching 
falling knives and wouldn't recommend jumping on just yet.  Wait 
for a move over the $121.50 to $122.00 area, which would signify 
a return to the channel.

Picked on February 20th at $120.00
Gain since picked:           -0.19
Earnings Date                  N/A





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

B C E Inc. - BCE - close: 17.62 change: +0.12 stop: 19.41 

While BCE exists in a somewhat diverse group of companies that 
make up the telecom/communication services industry, the IXTCX 
combined telecom index did post a 2% bounce on Thursday.  
Unfortunately for BCE shareholders, its participation amounted to 
a 12 cent close above Wednesday's low.  Technical traders may 
find it interesting that BCE did violate any support it may have 
had at $17.50 today but the afternoon rally was strong enough to 
reclaim this level.  We are encouraged at BCE's lack of strength 
and absence of traders willing to rush into the beaten down stock 
but shares are very oversold at the moment and are due for a 
bounce.  This is why we are leaving our stop near the entry point 
to allow room for some short-covering and repositioning before 
any new leg down.  More conservative traders could attempt to run 
the trade with a stop above $18.00, which seems to be new 
overhead resistance over the last day and a half.  If you're 
looking for an entry, we would consider a failed rally at $18.00 
or $18.50 as viable or maybe at $18.30, the 5-dma.  Otherwise, a 
close under $17.50 may be your trigger to short it anew.  We will 
exit the play if BCE trades to $15.25 or lower.  Keep an eye on 
the IXTCX, which is likely to bounce again on Monday.  If the 
IXTC can close above 180 then we might change our play strategy 
due to a potential reversal in the group.

Picked on March 22nd at $19.40
Gain since picked:       +1.78
Earnings Date         04/23/02 (unconfirmed)
 



---

Broadcom Corp - BRCM - close: 35.90 change: +0.97 stop: 38.45

A lot of the strength in the Nasdaq today was due to the 
surprising move by TSM who said they would boost their capex 
plans by a billion to $2.6B.  The market was only expecting an 
increase around $300 to $500 million.  This news lent a lot of 
strength to the chip equipment makers but the entire 
semiconductor industry felt its uplifting embrace.  Shares of 
BRCM added 2.77% but remain below the $36.50 level and its 10-dma 
near the same area.  We feel this is a temporary boost in shares 
and only allows the more adventurous bears to consider new short 
positions.  Personally, I'd like to see the stock back under $35 
or even $34 before adding or initiating new bearish plays but the 
difference comes down to risk tolerance.  We are leaving our stop 
loss at $38.45, which is above the 200-dma.  Bears and bulls will 
also be watching for the 50-dma to produce a bearish crossover of 
the 200-dma that will likely occur next week at this rate. 

Picked on March 25th at $35.75
Gain since picked:       -0.15
Earnings Date         04/23/02 (unconfirmed)
 



---

Check Point Software - CHKP - cls: $30.40 chg: -0.63 stop: 33.28*new*

Concerns continue to trickle in for the security software 
industry and stocks like ISSX, VRSN and CHKP still appear to be 
lagging the rest of the software group.  Both MSFT and the GSO.X 
software index have been bouncing the last couple of days 
although we're not convinced it is a rally worth buying into.  On 
the other hand, CHKP is creeping lower to that $30 support level 
and it appears like shares could breakdown below it at any 
moment.  With the stock at $30.40, traders may want to wait for 
that breakdown to occur before initiating any new positions.  
While we wait, we are going to lower our stop to our entry price 
of $33.28.  More conservative traders might try to play CHKP with 
a stop near $32.05, which was Wednesday's high and the 10-dma.  
Currently, Premier is up about 8.6% in the play.

Picked on March 14th at $33.28
Gain since picked:       +2.88
Earnings Date         01/15/02 (confirmed)
 



---

Cisco Systems - CSCO - close: 16.93 change: +0.59 stop: see text

Believe it or not, we are going to keep CSCO on the short list 
until it can convincingly break out through the top of its recent 
trading range.  Shares tried today with a 3.6% gain but remain 
below its two and a half week top near $17.20.  It is also 
possible that the 50-dma will also come into play next week as it 
continues to sink lower.  Traders have probably been following 
the CSCO action as news has been filled with headlines on the 
networking group since rival Juniper Networks (JNPR) came out 
Wednesday night with an earnings warning.  Given the overall 
environment on IT spending, JNPR's comments that customers 
continue to postpone and delay upgrades and new equipment 
purchases should not be a surprise.  What is surprising was the 
almost 6% gain in shares of JNPR today.  We'll be watching both 
JNPR and CSCO as we approach earnings season in a couple of weeks 
but so far we're not convinced that now is the time to be 
bullish.  We will admit that it appears shares of CSCO have 
traded sideways long enough that it is effectively out of its 
descending channel but the short-term trading range of $16.00 to 
$17.20 is still in effect.  Our trigger to go short is $15.90 
with a downside target of $14.25 once triggered.  A move over 
$17.50 or $18.00 will probably convince us that bulls have 
retaken control.

Picked on March xth at $xx.xx <- See text
Gain since picked:      +0.00
Earnings Date        05/07/02 (unconfirmed)
 



---

Internet Security - ISSX - cls: 22.85 chg: -0.51 stop: 25.51 

We mentioned on Tuesday that shares of ISSX might attempt to 
trade higher and fill the gap that occurred on Tuesday's open.  
That's exactly what ISSX has been trying to do as the stock has 
edged higher with the strength in the software sector but shares 
have been under-performing the industry so far this week.  We 
found it very interesting how ISSX appeared to hit strong selling 
pressure at $24.00 this morning before ending the day under the 
$23 level while the rest of the group traded higher.  Traders 
looking for new entries might want to get ready as a move under 
$22.00 looks like the first stop on its journey to $20.  More 
aggressive traders might want to consider shorts here even though 
the stock could still attempt to fill the gap from Tuesday.  
Don't forget our comments from Tuesday. We mentioned in that 
update how the $21.70 level could pose as support but we suspect 
bears will be able to plow through it.  Stochastics remain 
oversold but the MACD's bearish crossover is just picking up 
steam.

Picked on March 26th at $22.58 
Gain since picked:       -0.27
Earnings Date         04/16/02 (unconfirmed)
 



---

NVIDIA Corp - NVDA - close: 44.36 change: -1.14 stop: 45.15*new*

A high volume breakdown is exactly what some bears wait for.  
Shares of NVDA produced that sort of move today with the stock 
hitting an intraday low of $41.87 and volume hitting more than 26 
million versus the average of 10 million.  According to a news 
article, the selling began in earnest today after a cautious note 
from a Salomon Smith Barney analyst out of one of their Asian 
offices voiced concerns about NVDA's relationship with Taiwan 
Semiconductor (TSM) who makes chips for NVDA.  The analyst was 
working from an article in Taiwan's Commerical Times newspaper 
which implied that NVDA would miss estimates due to a dispute 
with TSM.  An NVDA spokesperson denied the story and confirmed 
its estimates, while a TSM spokesperson questioned the 
authenticity of the newspaper article's claims (Dow Jones 
Business News).  We thought it was odd that Salomon Smith Barney 
confirmed the note by its Taipei-based analyst but offered some 
lame excuse on why they couldn't provide a copy to the press.  At 
any rate, the affirmation by NVDA's spokesperson that they stood 
by their estimates inspired the afternoon rally.  Fortunately for 
us the rally seemed to fizzle near the $45 level and we are going 
to lower our stop just above the afternoon highs.  Currently, 
Premier is up about 8.6% in the play but lowering our stop to 
$45.15 should protect a gain of 7% or $3.42.  Jeff noted that he 
felt the bearish price objective was only $42, which would have 
been reached today.  It isn't uncommon to see stocks surpass 
their price objectives and the breakdown under $45 is a good sign 
for the bears but it doesn't hurt to be cautious and protect your 
profits.  If we don't get stopped out on Monday we are going to 
add an exit price of $40.50 to this play and if NVDA trades at or 
below it we'll close it out.

Picked on March 22nd at $48.57 
Gain since picked:       +4.21
Earnings Date         05/15/02 (unconfirmed)
 



---

StorageTek - STK - close: 21.44 change: +0.51 stop: 22.05

Has STK taken a turn for the better?  Shares had been stuck 
trading sideways before the last day of the quarter inspired some 
last minute window dressing with tech stocks.  Which is why we 
think STK is likely to roll over again next week when fund 
managers undress their positions.  However, traders will want to 
keep their eyes and ears open as the sector has seen some good 
news recently.  EMC surged 7% today on some positive talk that 
they might have been able to meet their Q1 estimates with a late 
quarter increase in business.  Likewise other stocks in the group 
like EMLX and SNDK were both up about 5% today and BRCD was 
upgraded to an out perform on Wednesday.  This sounds all well 
and good but until STK can close above its 50-dma and the $22 
level we're going to stick to our bearish guns.  Confirm both 
stock and market direction before initiating any new positions.  
Aggressive traders could look for short positions here with a 
relatively small amount of exposure.

Picked on March 22nd at $20.91 
Gain since picked:       -0.53
Earnings Date         04/23/02 (unconfirmed)
 




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

  --------------------
  Closed Bearish Plays
  --------------------

Celestica - CLS - close: 36.26 change: +0.66 stop: 36.08

We had high hopes for this short play on Tuesday after the stock 
failed to rally over $35.  Further market weakness would've been 
the perfect excuse for bears to put more pressure on the stock, 
but the NASDAQ had other plans.  CLS traded higher with NAZ 
yesterday and continued higher today, adding on 1.85%.  This move 
violated our stop at $36.08, taking us out with a +5% move.  The 
oscillators indicate that some further upside may be in store.  
Daily stochastics are heading up after emerging from oversold, 
while MACD looks to be curling higher.  The reason for the move 
on Thursday was positive news from fellow manufacturing company, 
Solectron (NYSE:SLR).  SLR announced today that they had struck a 
deal with Lucent (NYSE:LU) for up to $2 billion over the next 
three years.  This may be the beginning for a turnaround in the 
both the electronics manufacturing and the telecom equip 
industries and eager bulls jumped into CLS should they also 
announce positive news soon.

Picked on March 13th at $37.98
Gain since picked:       +1.90
Earnings Date         04/17/02 (unconfirmed)





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

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

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

Hanover Compressor - HC - close: 17.99 change: +0.99 stop: 16.74

Company Description:
Hanover Compressor Company is the global market leader in full 
service natural gas compression and a leading provider of 
service, financing, fabrication and equipment for contract 
natural gas handling applications. Hanover provides this 
equipment on a rental, contract compression, maintenance and 
acquisition leaseback basis to natural gas production, processing 
and transportation companies that are increasingly seeking 
outsourcing solutions (source: company press release)

Why We Like It:
Amidst all the news about the rising price of oil and gold 
lately, there hasn't been much talk about natural gas.  Natural 
gas futures (ng02j) have risen over 60% since January and are 
close to breaking to levels not seen since last summer.  We like 
HC as a long play because they stand to benefit from continued 
highs.  Stocks like VPI more-or-less trade in tandem with the NG 
futures, but companies like HC that lease drilling and mining 
equipment see a revenue boost a bit later in the business cycle 
as it becomes more lucrative to mine the gas.  The stock is also 
looks good from a technical standpoint.  After rising sharply 
from February lows near $10, shares spent the previous month 
consolidating under resistance at $18.  Volume has been 
increasing over the past three sessions, daily stochastics look 
bullish, and HC closed just under $18.  A trade at $18.50 would 
also create a triple-top breakout on the p-n-f chart.  We think 
now is the time to go long, but first want to see some 
confirmation of a breakout.  Thus, we're placing a trigger at 
$18.26.  If the stock trades at or above this level we'll go long 
with a stop at $16.74.  That's just under Wednesday's low.  We'll 
initially be targeting $20.00 to $21.00, but may later re-
evaluate our exit strategy depending on the strength of the stock 
and sector.  We see a long-term potential upside of $35, but for 
the purposes of this trade it would be better to take profits 
near p-n-f resistance at $21.  If you look at the earnings date 
below you'll notice that the company actually announced on 
Thursday.  Results were mixed, as Q4 net income fell 21% and 
revenue rose 53%.  Its hard to say how Wall Street will respond 
to this news but our trigger ensures that we'll only enter this 
play if the reaction is positive.

Picked on March 28th at $xx.xx <- see text
Gain since picked:       +0.00
Earnings Date         03/28/02 (confirmed)
 




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

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

Cardinal Health - CAH - close: 70.89 change: +0.29 stop: 67.49

The HMO.X health provider index finished with a 0.27% gain today.  
Nothing too exciting, but we like how it outperformed the Dow 
Jones and closed at another all-time high.  End-of-quarter window 
dressing may have contributed to the index's 3% gain for the 
week.  For its part, CAH continues to distance itself from 
previous resistance at $70.  The MACD is rising but stochastics 
remain somewhat over extended.  Today's intraday high was $72, 
and traders may want to consider going long if CAH closes above 
that level.  On the other hand, a dip back to $70 could also 
yield an attractive entry point.  The choice depends on your risk 
profile and trading strategy.  We're expecting the HMO.X to trade 
to 520 in the near-term.  If this turns out to be the case CAH 
should be able to move over $72.  We continue to target the $77 
level as our profit target for CAH.  In the news, CAH announced 
an R&D agreement with DURECT Corp (DRRX) on Wednesday.

Picked on March 22nd at $70.05
Gain since picked:       +0.84
Earnings Date         04/23/02 (unconfirmed)




---

Dole Food CO. - DOL - close: 31.00 change: -0.19 stop: 28.99

It looks like DOL is beginning to attract more attention as 
shares climb ever-closer to the recent high at $31.46.  Volume 
has been steadily increasing over the past week, with lesser 
volume on down days.  We also like how the stock managed to close 
at or above $31 over the past two sessions.  Oscillators are 
mixed.  The daily stochastics are pinned at overbought but the 
MACD just produced a bullish crossover a couple of days ago.  
Traders can think about going long if the stock trades over the 
near-term high at $31.46.  DOL isn't a fast mover and if you feel 
more comfortable waiting for a close above $31.50, then by all 
means wait.  

Picked on March 1st at $30.94
Gain since picked:      -0.06
Earnings Date        01/31/02 (confirmed)




---

H&R Block Inc - HRB - close: 44.45 change: +0.20 stop: 42.75
 
Still watching and waiting.  HRB spent the week trading in a 
narrow range between $43.69-$45.12.  Psychological resistance at 
$45 has kept a lid on the stock, while the 100-dma has acted as 
support.  When shares finally break out of this range, the 
movement could be powerful.  Before this occurs we'll need to see 
a break over the 10-dma, which pressured the stock all week.  
Look for a move over $45.05 to consider bullish positions, but be 
ready to tighten stops if the stock turns back at the 50-dma 
(currently $46.66).  Dip-buying at the bottom of the recent range 
could be somewhat risky because of the potential for a breakdown 
below that level.  As you're probably painfully aware, April 15th 
is approaching fast.  The pending tax deadline may create a 
short-term upside bias for HRB.  Historical the stock trades 
slightly higher during the first two weeks of April.  Hopefully, 
the nascent turnaround in the stochastics might portend the 
beginning of another leg higher.

Picked on March 22nd at $45.23
Gain since picked:       -0.78
Earnings Date         05/29/02 (unconfirmed)




---

Kohls - KSS - close: 71.15 change: -0.85 stop: 66.75

The RLX.X retail index spent the week bouncing between 950 and 
960.  The longer it stays over 950, the better.  Some profit-
taking was to be expected after the index's strong rally in early 
March.  A case could be made that those gains are being digested 
before the RLX makes another attempt at the 980 resistance level.  
KSS outperformed the index this week and is close to breaking 
over its own resistance at $72.  We're encouraged by the dip 
below resistance/support at $70 and Thursday's high-volume bounce 
back above that level.  The MACD is trading somewhat flat but we 
like how Wednesday's move was fueled by strong volume.  Entries 
can be evaluated on a move over $72 or dip to $70.  Even though 
it has been two weeks since the stock broke out of its triangle 
formation on its point-and-figure chart the pattern remains 
intact.  By the way, did anyone notice the article on KSS 
claiming the stock was breaking out?  Seems like they are a 
little late to the game.  At any rate, the analyst felt KSS needs 
to move over $72 to really confirm the move.  We won't disagree 
with that.

Picked on March 15th at $70.50
Gain since picked:       -0.65
Earnings Date         03/05/02 (confirmed)




--- 

Oxford Health - OHP - close: 41.79 change: +0.04 stop: 39.90

The Dow traded flat this week and lost 23 points, but that didn't 
stop the HMO.X health provider index from adding 2.9%.  The 
sector has been outperforming the market all month and probably 
received an additional boost from end-of-quarter window dressing.  
After retesting support at 500 the HMO.X quickly rebounded and 
traded to an all-time intraday high of 515.96.  OHP spent much of 
the prior week setting its own all-time highs, and consolidated 
some of those gains over the past four sessions.  It also looks 
like the stock may have run into resistance at $42.  Traders 
looking for a entry can target a move over $42.10 or the all-time 
high at $42.75.  Those looking for a pullback could use a bounce 
from the lows for the week at $40.69, although if the HMO.X keeps 
rising that opportunity might not present itself.  Jeff Bailey 
did some retracement work with the index and sees it trading 520 
in the near-term.  Should this happen it would likely push OHP 
well over $42.

Picked on March 8th at $38.55
Gain since picked       +3.24
Earnings Date        02/05/02 (confirmed)




--- 

Payless Shoesource - PSS - close: 61.05 change: +0.41 stop: 58.75

It's always nice to see stocks successfully retest former 
resistance, and that's exactly what we got with PSS this week.  
Shares traded as high as $64.70 last week but sold off sharply 
following negative news from NKE.  Monday's close under $60 had 
us worried, but fortunately the stock proceeded to trade higher 
for the remainder of the week.  We're looking for a rise in the 
RLX retail index to fuel a move in PSS back to the $64 level.  
The index spent the week consolidating above 950.  A move above 
960-965 could clear the way for a retest of resistance at 980.  
Bullish entries in PSS can be evaluated from current levels if 
the sector is also strong. Today's consumer sentiment numbers 
came in slightly above the expected 94.3, but retailers traded 
flat on the news.  This could be expected, considering 
Wednesday's blowout consumer confidence numbers also met with a 
tepid response.  An argument could be made that the sector is 
tired and all the good news is priced in.  This may be the case, 
but as long as the RLX.X doesn't see a large selloff we think 
stronger stocks like PSS will continue to outperform.  Longer-
term traders should be encouraged by PSS' breakout of its eight 
month base under $60.  This retest of $60 as support this week is 
not all that surprising although we'd like to see more volume 
support the rallies.

Picked on March 15th at $61.74
Gain since picked:       -0.69
Earnings Date         02/22/02 (confirmed)






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

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

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

Hartford Financial Svc - HIG - cls: 68.12 chg: +0.76 stop: 64.45

Finally, some upside movement!  HIG had been stuck in a rut last 
week after failing to break over resistance at $68.  Short-term 
bears must've gotten their fill after taking shares to a low of 
$65.80 on Tuesday, because the stock has since put on a nice 
show.  In the last few updates we speculated that the 50-dma may 
act as support and like clockwork the stock rebounded after 
coming within 22 cents of that level.  Today HIG finished off the 
week with a 1.12% gain.  The close over $68 bodes well for this 
play, as do the oscillators.  Daily stochastics are rising higher 
after touching the 20% band and the MACD is about to signal a 
bullish crossover.  Short-term traders can target entries on 
continued strength from current levels, but be aware that our 
initial profit-target is at $70 with an eventual goal of $72.50 
to $75.00.  We'll re-evaluate our exit strategy once HIG actually 
reaches $70, which is likely to be potential resistance.  
Conservative traders may want to consider taking profits if the 
stock turns back at the recent high of $69.45.

Picked on March 13th at $65.74
Change since picked:     +2.38
Earnings Date         01/28/02 (confirmed)
 




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

QUALCOMM - QCOM - close: 37.64 change: -0.23 stop: 40.41

The NASDAQ successfully tested support at 1800 on Monday and 
headed higher for the remainder of the week.  That didn't do much 
for QCOM, which had already been looking vulnerable to a bearish 
onslaught before gapping lower on Wednesday morning after a large 
customer (China Unicom) said it would reduce capital spending 
this year.  Shares continued lower and finished with a 7% loss 
for the week.  This is a promising development for our play.  If 
QCOM can't rally with the NASDAQ, what will it do if the tech-
laden index actually breaks under 1800?  We'd love to find out, 
but until then we'll be satisfied with continued relative 
weakness.  If the stock breaks below today's low it may fall to 
the next visible support level between $34 and $33. The MACD is 
bearishly curling lower from the baseline and the IXTCX combined 
telecom index is also looking weak although this index did bounce 
on Thursday.  Entries can be evaluated if shares of QCOM drop 
below today's low of $37.13.  Alternatively a failed rally to $39 
or $40 could also present an entry point.  Premier is currently 
up 4.6% on this play and at this point it would be prudent to 
minimize our risk.  We're moving our stop down to $40.41, just 
above the 50-dma.  In light of the oversold stochastics, more 
conservative traders who jump on a break lower may want to keep 
tighter stops.

Picked on March 25th at $39.47
Change since picked:     +1.83
Earnings Date         04/24/02 (unconfirmed)






==================================================================
Split Trader (ST) section
==================================================================

Split Announcements
-------------------

(Thursday, March 28th, 2002)

First South Bancorp Offers 3-for-2 Split

Word came from First South Bancorp (Nasdaq: FSBK) this afternoon 
that its Board of Directors had approved a 3-for-2 stock split to 
be enacted as a 50% stock dividend.  

The split will be payable on April 19th, 2002 to shareholders of 
record as of April 8th, 2002.  We expect FSBK will trade at its 
new post-split price on Monday, April 22nd.  Fractional shares 
will be paid in cash. Furthermore, the board also announced a 17 
cent/share quarterly divided, which is almost 42% greater than 
the previous quarterly dividend.  The dividend is payable on 
April 19th, which appears to be on a pre-split basis.

Shares have split once since the company began trading in 1997:  
A 3:2 in 1998.  FSBK has been in a steady up trend over the past 
two years but is an extremely slow mover and trades on low 
average daily volume of less than 1,000 shares a day.  

The stock closed at $38.52 on Thursday.  For a current quote,
click here:
http://user.financialcontent.com/pin1/quote.cgi?account=pin1&ticker=FSBK


About the company
First South Bank currently operates through its main office 
located in Washington, North Carolina with twenty full service 
branch offices located in eastern and southeastern North 
Carolina. (company press release)

-----

(Thursday, March 28th, 2002)

Merit Medical Declares 5-for-4 Stock Split

Merit Medical Systems, Inc. (Nasdaq: MMSI) announced Thursday 
morning that its Board Of Directors had given the green light on 
a 5-for-4 stock split.

The split will be effective on April 11th, 2002 with a record 
date of April 8th, 2002.

This will mark the second time MMSI has split in less than a 
year.  Shares also split 5:4 in August 2001.  The stock is up 8% 
YTD and has put on quite a performance since bottoming at $14 
this February.

MMSI closed at $20.20 on Thursday.  For a current quote,
click here:
http://user.financialcontent.com/pin1/quote.cgi?account=pin1&ticker=MMSI


About the company
Founded in 1987, Merit Medical Systems is a publicly traded 
company engaged in the development, manufacture and distribution 
of proprietary disposable medical products used in interventional 
and diagnostic procedures, particularly in cardiology and 
radiology. (source: company press release)


-----

(Wednesday, March 27th, 2002)

Option Care Declares 5-for-4 Stock Split

Option Care, Inc (Nasdaq: OPTN) announced Wednesday morning that a 
5-for-4 stock split had been approved by its Board of Directors.

The effective date for the split is May 1, 2002 to stockholders of 
record on April 10, 2002.  This will mark the first split in the 
company's history. 

Like many other healthcare-related issues, OPTN has performed 
strongly over the past month.  Shares have rallied sharply since 
bottoming near $13 in February. 

The stock closed at $16.46 on Tuesday.  For a current quote,
click here:
http://user.financialcontent.com/pin1/quote.cgi?account=pin1&ticker=OPTN


About the company
Option Care provides pharmacy services to patients on behalf of 
managed care organizations and other third party payors. Option Care 
contracts with payors to provide infusion therapy, specialty pharmacy 
prescriptions and related services to patients at home or at other 
alternate-site settings, such as physicians' offices.
(source: company press release)



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=================================================================
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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
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.





PremierInvestor.net Newsletter         Weekend Edition 03-28-2002
                                                   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/c28b_3.asp
=================================================================

In section three:

Market Watch for Week of April 1st
   - 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 April 1st
==================================================

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

Symbol  Company               Date           Comment      EPS Est

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

.. no major earnings announcements ..

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

BBY    Best Buy               Tue, Apr 2  -----N/A-----      1.61
CC     Circuit City Stores    Tue, Apr 2  -----N/A-----      0.73
IBC    Interstate Bakeries    Tue, Apr 2  Before the Bell    0.33
THC    Tenet Healthcare       Tue, Apr 2  Before the Bell    0.82
TKTX   Transkaryotic          Tue, Apr 2  After the Bell    -0.55

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

BBBY   Bed Bath&Beyond        Wed, Apr 3  -----N/A-----      0.26
L      Liberty Media Group    Wed, Apr 3  After the Bell    -0.03
IMCL   Imclone Sys            Wed, Apr 3  Before the Bell     N/A

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

GAP    Great Atl & Pac Tea    Thu, Apr 4  Before the Bell    0.18
GTK    Gtech Holdings         Thu, Apr 4  Before the Bell    0.86
ISCA   Int Speedway           Thu, Apr 4  -----N/A-----      0.48
OCENY  Oce N.V.               Thu, Apr 4  -----N/A-----       N/A
SVU    Supervalu              Thu, Apr 4  Before the Bell    0.51
MSM    MSC Industrial         Thu, Apr 4  Before the Bell     N/A

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

AA     ALCOA                  Fri, Apr 5  -----N/A-----      0.23


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

Symbol  Company Name              Ratio    Payable     Executable

YDNT    Young Innovations         3:2      03/28       04/01
TOL     Toll Brothers             2:1      03/28       04/01
JEC     Jacobs Engineering Group  2:1      04/01       04/02
NDN     99 Cents Only Stores      4:3      04/03       04/04
MKC     McCormick & Co            2:1      04/05       04/08
ALLY    Alliance Gaming           2:1      04/08       04/09
THQI    THQ Inc                   3:2      04/09       04/10
DHI     D.R. Horton               3:2      04/09       04/10
DKWD    D&K Healthcare            2:1      04/11       04/12
AVD     American Vanguard Corp    4:3      04/12       04/13


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

As the market continues to focus on signs for an expanding 
economy, reports like Monday's Construction Spending and Tuesday's
Factory Orders will play a roll next week.  The auto and truck
sales will be interesting to note but investors will probably
be listening for any pre-earnings announcements now that the
quarter is over.  Earnings start up again in two to three weeks.

==============================================================
                       -For-           
Monday, 04/01/02
----------------
Auto Sales (NA)          Mar  Forecast:   5.6M  Previous:    5.6M
Truck Sales (NA)         Mar  Forecast:   7.5M  Previous:    7.6M
ISM Index (DM)           Mar  Forecast:   54.3  Previous:    54.7
Construction Spending(DM)Feb  Forecast:   0.8%  Previous:    1.5%


Tuesday, 04/02/02
-----------------
Factory Orders (DM)      Feb  Forecast:   0.5%  Previous:    1.2%


Wednesday, 04/03/02
-------------------
ISM Services (DM)        Mar  Forecast:   57.0  Previous:    58.7


Thursday, 04/04/02
------------------
Initial Claims (BB)    03/30  Forecast:    N/A  Previous:    394K


Friday, 04/05/02
----------------
Nonfarm Payrolls (BB)    Mar  Forecast:    23K  Previous:     66K
Unemployment Rate (BB)   Mar  Forecast:   5.6%  Previous:    5.5%
Hourly Earnings (BB)     Mar  Forecast:   0.2%  Previous:    0.1%
Average Workweek (BB)    Mar  Forecast:   34.2  Previous:    34.1
Consumer Credit (AB)     Feb  Forecast:  $8.5B  Previous:  $12.8B



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 

NTT     Nippon Telephone ADR       19.35     +0.77
UMC     United Microelectronics    10.65     +0.82
LAF     Lafarge North America Inc  43.24     +0.70
PTEN    Patterson-UTI Energy       29.74     +1.35
TBL     Timberland Co              42.25     +0.77

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

ADPT    Adaptec Inc                13.37     +1.39
PGO     Petroleum Geo-Services      6.51     +1.03
MDCO    The Medicines Company      14.26     +1.26

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

ASML    ASML Holdings              25.37     +1.64
RKY     Adolph Coors Co            67.47     +1.33
PIXR    Pixar                      36.80     +1.39
OMG     OM Group Inc               72.30     +1.21
MEG     Media General              63.50     +1.21
ACDO    Accredo Health Inc         57.27     +1.37

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

NVDA    NVIDIA Corp                44.36     -1.14
WPI     Watson Pharmaceuticals     27.09     -3.65
CSGS    CSG Systems Intl. Inc      28.47     -1.83
TARO    Taro Pharmaceutical        28.35     -4.21

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

SRDX    Surmodics Inc              43.60     -1.70
URS     URS Corp                   31.70     -1.40
WES     Westcorp Inc               21.85     -0.42
PKE     Park Electrochemical       29.00     -0.42




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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
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

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

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

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