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Daily Newsletter, Friday, 05/17/2002

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PremierInvestor.net Newsletter          Weekend Edition 05-17-2002
                                                    section 1 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
=================================================================

In section one:

Market Wrap:      A Week Of Strength
Play-of-the-Day:  It's Ugly But It's There
Watch List:       ERICY, BA, CHIR, EWJ, AOL, MSFT, and much more...
Market Sentiment: Market Sentiment will be available on the Premier
                  Investor website late Saturday afternoon

-----------------------------------------------------------------
U.S. Market Numbers
-----------------------------------------------------------------
MARKET WRAP  (view in courier font for table alignment)
-----------------------------------------------------------------
        WE 5-17          WE 5-10           WE 5-3          WE 4-26 
DOW    10353.08 +413.16  9939.92 - 66.68 10006.60 + 95.88  -346.39 
Nasdaq  1741.39 +140.54  1600.85 - 12.15  1613.00 - 50.89  -132.94 
S&P-100  553.30 + 30.06   523.24 -  7.28   530.52 -  1.85  - 27.42 
S&P-500 1106.59 + 51.60  1054.99 - 18.44  1073.43 -  2.89  - 48.85 
W5000  10474.18 +456.71 10017.47 -184.57 10202.04 -  5.42  -426.79 
RUT      508.94 + 16.21   492.73 - 19.59   512.32 + 10.82  - 15.90 
TRAN    2798.36 +155.26  2643.10 -100.46  2743.56 + 20.93  - 74.24 
VIX       20.28 -  4.75    25.03 +  1.80    23.23 -  1.41  +  4.34 
VXN       42.94 -  7.79    50.73 +  4.47    46.26 +  4.02  +  2.89 
TRIN       0.78             2.56             1.71             1.82 
TICK       +651             +364             +910             +367 
Put/Call    .72              .83              .91              .87 
-----------------------------------------------------------------

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

A week of strength

What a difference a week makes.  Stocks finished the week just as 
they started.  With gains.  The major market averages finished 
right near their session highs after a choppy trading session 
where options expiration undoubtedly came into play.

Investor confidence was boosted by today's University of Michigan 
consumer confidence reading of 96.0, which was higher than the 
consensus estimate for a reading of 93.0.  While this number can 
be revised when the final reading comes out, it did help set a 
bullish tone to today's trading.

Gold stocks were today's biggest gainers as fears of a weakening 
US$ had gold bugs bidding up stocks in the group as bears 
continue to find tough sledding when shorting the bullish trend 
this index has been in.  The Gold/Silver Index (XAU.X) 80.67 
+4.38% traded strong and recouped all of this week's earlier 
losses.

Before we look at the "external" gains of the various market 
averages and sectors, there was a significant amount of internal 
repair done for the bullish % indicators we follow.

Most notable this week was the number of new point and figure buy 
signals created in the NASDAQ-100 (NDX.X) 1,325 +0.75% as 
depicted by the NASDAQ-100 Bullish % ($BPNDX).  Last Friday we 
mentioned that this indicator had reversed up into "bull alert" 
status at 28% bullish, and that must have been the "heads up" 
call as the NASDAQ-100 (NDX.X) jumped 11.5% on the week.  I don't 
have Friday's reading, but as of Thursday night, the NASDAQ-100 
reading was back in "bull confirmed" status at 50%, indicating 
that 50 of the 100 stocks are now showing buy signals on their 
point and figure charts.

Also showing some meaningful internal repair was the S&P 500 
Bullish % ($BPSPX) from www.stockcharts.com.  Here we see this 
market reversing back into "bull confirmed" status once again 
with 64% of the stocks in this market now showing buy signals on 
their point and figure charts.  It's very common to see the more 
volatile NASDAQ-100 bullish % reverse up first and then find the 
S&P 500 Bullish % confirm with bullishness of its own.  This type 
of action is just like the analogy we refer to in regards to the 
market moving like a snake.  

When the technically weaker large-cap tech's started to pull free 
or start showing some buy signals on their point and figure 
charts, that was almost like the "tail" of the snake starting to 
pull free of whatever had a hold of it, and now we're seeing the 
internals begin to improve.

NASDAQ-100 & S&P 500 Bullish % Charts - 2% box




A side-by-side comparison of the NASDAQ-100 and S&P 500 Bullish % 
charts shows an "internal" comparison of bullishness.  It 
continues to amaze me how these indicators really give the 
trader/investor a good idea of internal strength/weakness.

Last Friday, I was a "jittery bear" in technology stocks as the 
NASDAQ-100 Bullish % ($BPNDX) was "bull alert" at 28%.  All of a 
sudden and with little notice Monday's action exploded on the 
upside.  The S&P 500 bullish % (chart on the right) was not 
anywhere close to being "oversold" and the higher lows of the 
bullish percent from February (red 2) and May (red 5) is actually 
bullish divergence.  In essence, though the "outside" or the S&P 
Index (SPX.X) actually fell below it February lows, the internals 
were actually stronger.  At least there were not as many stock 
giving point and figure sell signals.

S&P 500 Index Chart - Daily Interval




The S&P 500 Index now look strong on the "outside" as depicted by 
the index itself, and the bullish % chart from above (chart on 
the right) has the internals confirming.  Our current bullish 
play list should be well-positioned to participate in any further 
bullishness should the SPX just continue to charge higher.

However, I would not be a bit surprised to see a little pullback 
as if to test the recently broken downward trend and would look 
for firm support at the 1,070 level.

I've also referred to market movements similar to that of an 
"inchworm."  An inchworm moves forward by anchoring its "tail" 
section then stretching its "mid-body" and "head" forward.  

Two weeks ago, we saw the Dow Industrials (INDU) briefly stick 
its head above downward trend (I've felt the Dow is the "head" of 
the inchworm and technically stronger that the SPX or NASDAQ) 
then dip back below trend and really power through this week.  

Now this week we see the S&P 500 (mid-body) break above trend.  
And guess who's just behind?  That's right!  The NASDAQ Composite 
(COMPX).

NASDAQ Composite Chart - Daily Interval




What I think will happen sometime next week is that the weaker 
NASDAQ Composite (COMPX) will dip back below the 1,700 level and 
try and attempt to "fill in" the recent gap higher from Tuesday 
morning.  Bears are going to be hanging around this downward 
trend.  However, if the Dow Industrials are able to "anchor" 
themselves and show some leadership, then look for a partial 
filling of the gap in the NASDAQ to be quickly reversed back to 
the upside, catch some bears with their drawers down on a break 
back above the downward trend and declining 50-day moving 
average.

This is what I'm looking for and something to test against near-
term.  I think we can also use the S&P 500 Index (SPX.X) as the 
"mid-body" of the snake.  As long as the S&P 500 can stay above 
the 1,070 level and old downward trend, then I'll keep a more 
bullish bias.

Weekly action

Lots of green on the screen this week.  I've had to replace the 
S&P Retail Index, with the AMEX Retail HOLDRS (AMEX:RTH) $99.80 
+0.91% as it looks like S&P discontinued this index.  I've also 
added the Dow Jones U.S. Home Construction Index (DJUSHB) 379.38 
+2.5% to our weekly sector watch list.

Treasuries got "hammered" somewhat this week as the YIELD on the 
10-year ($TNX.X) rose to 5.241%.  I will note that the 10-year 
YIELD did not finish at its weekly high like most of the market 
averages, but it is interesting to note this week's action.  
While the 10-year YIELD was higher (many mortgage rates are tied 
to this benchmark bond) the Home Construction Index (DJUSBH) also 
showed a nice gain.  So far, the higher YIELDS that some are very 
worried about, that could depress the demand for new mortgages 
and new home purchases, has not adversely impacted many of the 
homebuilders.  This still gives hint that some of the selling in 
Treasuries may be the MARKET simply looking for some good 
economic growth going forward.

Today's consumer confidence was very important to the 
homebuilders.  Analysts have been worried that any type of major 
decline in consumer confidence would also hurt the homebuilders 
and perhaps really have a negative impact on further economic 
improvements.  We will want to continue monitoring these 
relationships, but this weeks action sure doesn't look like the 
MARKET is too worried that an edging higher Treasury YIELD will 
adversely impact the housing sector.

Weekly market averages / sector performance




Some of the more "economically sensitive" groups at the ground 
floor of a potential economic recovery did quite well this week.  
The retailers (AMEX:RTH) jumped 5.4%, transports (TRAN) gained 
5.9% and the deep cyclicals (CYC.X) gained 4.4%.  Watch those 
cyclicals this week.  They are within a "frog's hair" of breaking 
to a new 52-week high and could really extend a rally in the S&P 
500 and broader markets.  A couple of weeks ago, bulls were 
holding their breath when this group broke below trend, but 
they've powered back from the 550 level, just like the "engine" 
of the economy that we've put on them.  Can they pull the other 
broader market averages along?  We'll find out next week!

Brian Barger is going to be working on some research for bullish 
plays in the financials.  The banks and brokers had a very strong 
week and are often the sectors that will lead in an S&P 500 
advance, as they comprise a large part of the S&P 500.  We're 
looking for some pullbacks for entry points and Brian is hard at 
work and should have some ideas ready to go next week.

Have a great weekend!

Jeff Bailey
Senior Market Technician


=========================
Play-of-the-Day (Bullish)
=========================
(( new High-risk/High-reward long play ))

Lucent Technologies - LU - close: 4.91 change: +0.09 stop: *text*

Company Description:
Lucent Technologies, headquartered in Murray Hill, N.J., USA, 
designs and delivers networks for the world's largest 
communications service providers. Backed by Bell Labs research 
and development, Lucent relies on its strengths in mobility, 
optical, data and voice networking technologies as well as 
software and services to develop next-generation networks. The 
company's systems, services and software are designed to help 
customers quickly deploy and better manage their networks and 
create new revenue-generating services that help businesses and 
consumers. (source: company website)

Why We Like It:
We're not going to bother discussing the merits or demerits of 
LU's fundamentals.  This is purely a technical play.  Chart 
readers will notice that LU appears to have created a reverse 
head and shoulders pattern.  It's kind of ugly but it's there.  
The neckline is right at the $5.00 mark.  Our plan is to set a 
trigger price just above the neckline.  There is some price 
congestion between $5.00 and $5.50 but we are going to target a 
move to the $6.00 area where the 200-dma is hovering.  Remember 
this is a high-risk reward play and should only be considered 
with risk capital.  Our trigger to go long will be $5.05 and our 
trigger to sell will be $5.95.  Once triggered will start with a 
stop loss at $4.49.

Picked on May xth at $xx.xx <- see text
Change since picked:  +0.00
Earnings Date      04/22/02 (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
---------------------------------

LM Ericsson Telephone - ERICY - close: 2.64 change: +0.14

WHAT TO WATCH: 
Has anyone noticed that the telecom sector was eviscerated in 
recent weeks? There are no kind terms to describe what happened 
to any stock even remotely related to telecommunications 
services.  ERICY is a good example; within the last four weeks 
the stock saw its value cut by almost 50%, dropping from 4.00 to 
the 2.15 region.  The stock left a large gap when it underwent 
this beating, and this is the opportunity on the long side we see 
for very active traders.  ERICY's gap begins at 2.79 and goes to 
3.44.  While we do not think the ERICY will fill this entire gap, 
it is possible that the stock might fill enough of it within a 
few days time to make this a stellar trade.  We would not enter 
ERICY on the long side until it is trading above 2.79; once in 
the trade we would employ a very tight stop, perhaps no lower 
than 2.58.  This is a very wide stop--nearly 10%--so it would be 
essential that only a small portion of capital be used on a play 
like this.




--- 

Boeing Company - BA - close: 45.42 change: +0.42

WHAT TO WATCH: 
During the 3-day period from April 16th - April 18th, Boeing 
stock was hit with brutal selling.  It dropped from a high of 
$48.98 to a low of $42.16 during that period.  The stock is now 
acting as if it is ready to make a serious run back into that 
"fast move region" (a cousin to a price gap).  It is our 
perspective that once BA is back above $45.85, it will be in a 
position to move quickly back through this region, reaching 
perhaps as high as $48.00 before it hits troublesome resistance.  
This is likely to be a short-term trade, which lasts only a few 
days.  We would encourage the use of a trigger to go long at 
$45.85 (or $46.01 for the more cautious).  We would consider 
taking profits on the approach to $48.00 (or $50.00 for the 
adventurous). 




--- 

Chiron Corp. - CHIR - close: 38.71 change: +0.53

WHAT TO WATCH: 
We've discussed Chiron previously in our Watch List, but it 
deserves another brief comment here.  Chiron is part of the 
beleaguered, bludgeoned biotechnology sector.  From the period 
April 19th through April 25th, this sector was in a free fall.  
Many stocks like CHIR left "fast move" regions, or even gaps, on 
their price charts that may now be nearing the point at which 
they will be filled.  CHIR moves out of price congestion at about 
$40.61 and this would be a point at which aggressive long 
positions could be taken in this stock.  Once in this fast move 
region above $40.61 we would be looking for CHIR to move quickly-
-perhaps over the course of just a few days--to the $44.00 level.  
There is some modest resistance at 43.50, which might cause the 
stock to stall, so traders will need to use their trading 
instincts once the $43.50 level is reached.  Above $44.00 
resistance becomes considerable and further gains become much 
less likely--short term, anyway.




--- 

iShares Japan - EWJ - close: 8.87 change: +0.20

WHAT TO WATCH: 
One of the recent "products" to appear on the investment scene in 
the last year are "iShares", produced by investment house 
Barclays Investments.  These equities trade like stocks, yet they 
are actually composed of multiple securities and, in that sense, 
take on the quality of an index.  EWJ is designed to loosely 
follow the Japanese stock market and this security, like the 
Japanese Nikkei Index, are displaying long term reverse head and 
shoulder (RHS) bottoms. This can be a powerful technical pattern 
with long term upside potential. EWJ was up dramatically this 
past week, on very explosive volume Thursday and Friday, and it 
represents an easy way for US investors to aggressively trade the 
improving Japanese markets.  EWJ is overextended at its current 
level.  An attractive entry price would be on a pullback, perhaps 
to support near 8.40.




---  

America Online - AOL - close: 19.98 change: +1.08

WHAT TO WATCH: 
We think AOL is worth watching because it's approaching the top 
of the descending regression channel that has dictated price 
action since November.  While shares could easily bump off of 
this level and head lower, the upward trending MACD suggests that 
AOL actually has a chance of breaking out to the upside.  Two 
strategies could be employed to capture such a move: short-term 
traders could go long if AOL trades above today's high of $20.13 
and target a quick move to the 50-dma at $21.56.  Those who are 
willing to hold longer could actually wait for a break over the 
50-dma, in hopes of an eventual move to the $24 resistance level.  
Otherwise, a rollover at the $20 area could spell another leg 
down for AOL.  We'd probably wait for a close back under $19 
before we started looking into details for a short position.




---  

Microsoft - MSFT - close: 56.03 change: +0.29

WHAT TO WATCH: 
The force has been strong in MSFT.  Mirroring the recent NASDAQ 
rally, the stock bounced sharply from the $48 level and is 
currently sitting just below the 50-dma at $56.51.  This level 
coincides with the top of its descending channel and bearish p-n-
f resistance at $57.  Needless to say, $56-$57 could be a crucial 
pivot point for MSFT.  A move though this level could trigger a 
wave of short-covering, quickly pushing shares to the 200-dma at 
$60.91.  On the other hand, a breakdown would not only have the 
bulls on CNBC freaking out, but also create a possible shorting 
opportunity.  Shares could fill in the May 14th gap or even drop 
to the $50 level.  Even those who don't intend to play MSFT may 
want to watch it carefully as a way to gauge where the NASDAQ is 
headed next.  If the stock can stage a breakout, chances are good 
that the rest of the tech sector will follow suit.
 




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

Cumulus Media - CMLS - close: 21.01 change: +0.81

Beautiful breakout pattern on both daily and PnF chart.  Shares 
look very bullish but the incredible volume was due to a 
secondary offering of some sort.  Need to look into details of 
deal.




---

First Data Corp - FDC - close: 82.12 change: +0.51

Shares have seen a heavy round of profit taking after hitting the 
$90 mark.  The double bounce at the 200-dma might be a bottom.  
The stock does have a split coming up soon.  Recent consolidation 
under the 50-dma presents an easy trigger point.  We'd consider 
something around $83.01 to go long.  Your danger is any typical 
tech stock response to profit taking in the Nasdaq (yes, we know 
FDC is traded on the NYSE).




---

USA Education - SLM - close: 99.58 change: +0.20

With the financial sectors in a slow and steady climb, we thought 
this stock presented some interesting possibilities.  The MACD 
has turned positive as shares have volleyed off the $95 level.  
We'd consider a long position with a trigger just north of $100.  




---

Solectron - SLR - close: 8.70 change: -0.06

Aggressive traders may want to keep their eyes on SLR.  While we 
think the Nasdaq will correct next week, SLR (traded on the NYSE) 
might still be worth watching.  Shares do look short-term 
overbought but a trigger just above $9.00 could be worthwhile.  
We'd target a move to the $10 area for short-term gains but stock 
could aim for the 200-dma much higher.  We would consider this a 
high risk play.




---

Nucor Corp - NUE - close: 62.40 change: +1.27

This metal-related company has a great looking long-term up trend 
and the recent round of consolidation appears to be over.  We 
like how shares have reclaimed the 50-dma and Friday's strong 
session put it back over the $62 level.  First target would be 
$65, but a breakout from there could be in the cards.




---

Toys-R-Us - TOY - close: 17.84 change: +0.25

We've seen some interesting action in the toy stocks but TOY 
looks the most intriguing.  Shares may have put in a bottom but 
the downtrend is still intact.  However, a trigger just above 
$18.00 could net you a long play with a chance to capture a move 
to the 200-dma just under the $20 mark, wherein we would exit.




---

Deluxe Corp - DLX - close: 46.06 change: +0.18

A personal favorite for one of our internal analysts, DLX appears 
to be on the rebound with the worst behind it.  The ability to 
stay above its 50-dma might indicate buyers are supporting it 
again.  We'd target a move to the $50 area and close it for 
short-term gains.  




---

Big Lots Inc - BLI - close: 16.40 change: +0.22

This is another one we really like this weekend and almost played 
it.  Shares have been very strong over the last few months and 
the short-term consolidation has given way to a powerful rally.  
The MACD has turned positive and the stock has cleared the $16 
level of resistance.  Your risk is the company announces earnings 
this week and could see a sell the news effect.





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

Due to circumstances out of our control, we are unable to include 
the Market Sentiment in this weekend's E-mail.  Please check the 
Premier Investor website, where it will be posted late Saturday
afternoon.


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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
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Copyright  2001  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.
PremierInvestor.net Newsletter          Weekend Edition 05-17-2002
                                                    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
=================================================================

In section two:

Net Bulls
  New Bearish Plays:     CLS
  Bullish Play Updates:  SNE, TTN

Stock Bottom / Active Trader
  New Bullish Plays:     CR, HRB
  Bullish Play Updates:  DCN, DCX, GR, MHK, RKY, SGR, SII, TBL
  Bearish Play Updates:  DHR, TSG
  Closed Bullish Plays:  LTR

High Risk/Reward
  New Bullish Plays:     LU, PVN
  Bullish Play Updates:  CCK

Long-term Plays
  New Bullish Plays:     ONE
  Bullish Play Updates:  UHS
  Closed Bullish Plays:  GLBL
  
                         

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

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

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

Celestica - CLS - close: 32.45 change: +0.33 stop: *text*

Company Description:
Celestica is a world leader in the delivery of innovative 
electronics manufacturing services (EMS). With 2001 revenues in 
excess of $10 billion, Celestica is a global operator of a highly 
sophisticated manufacturing network, providing a broad range of 
services to leading OEMs (original equipment manufacturers) in 
the information technology and communications industries. 
(source: company press release)

Why We Like It:
Is the nascent NASDAQ rally sustainable?  The answer depends who 
you ask.  Bulls can point to the impressive gains turned in the 
by the Composite this week as confirmation that the tech sector 
has bottomed.  Bears, on the other hand, will argue that the 
NASDAQ is still within a downward trend and has been unable to 
move above its 50-dma...not to mention the lack of any clear 
indication that IT spending will be improving anytime soon.  We 
think CLS is vulnerable to some heavy selling in the near-term if 
the bears do get their way.  Shares look overdue for a round of 
profit-taking after rising 28% from their May 7th lows.  Of 
course, so do a lot of other tech stocks.  What makes CLS stand 
out as a good shorting candidate is its failure to break out of 
its descending regression channel.  Shares have spent the last 
three sessions meandering near this level, which happens to also 
coincides with the 50-dma which CLS has likewise be unable to 
pierce on a closing level.  We suspect that if the NASDAQ rolls 
over, CLS will be unhinged from the top of its channel, falling 
to fill all or most of the gap left on May 14th.  In an attempt 
to confirm that the bears have regained control, we're going to 
set a trigger price of $30.94, just below today's low.  If the 
play is activated, our initial stop-loss will be set at $33.21, a 
cent above today's high. Traders willing to take more heat may 
want to have their stop above the near-term high of $34.25.  If 
CLS moves higher with the NASDAQ next week, we may consider 
moving our trigger price up.  Currently, our crystal ball 
indicates we might get an early move higher next week for the 
markets but mid-week could see the beginning of a pull back.  
This means we may not get triggered until mid-week.  Bulls will 
likely have a very hard time pushing the stock above the 50% 
retracement (September lows to December highs) at $34.45.

Picked on May xth at   $xx.xx <- see text
Gain since picked:      +0.00
Earnings Date        04/17/02 (confirmed)
 



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

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

Sony - SNE - close: 58.81 change: +2.33 stop: 55.50 *new* 

On the heals of important competitive moves this past week with 
its popular PlayStation2, Sony Corp. has also enjoyed riding the 
coat tails of a healthy advance this week in the Nikkei Index.  
Last night, the Nikkei rose 109 points, closing at 11,847, and 
this was the fourth day in a row the benchmark Japanese index 
advanced. For these four days, the Nikkei recorded a 4.5% 
advance, and this has certainly been supportive to SNE's price 
action in the US. SNE has advanced on rising volume each of the 
last three days.  Today the stock experienced a very sharp volume 
spike in the absence of any news.  Technically, SNE has now 
pinned its Stochastic Oscillator into overbought territory--
meaning that it is in a state of very high upward price momentum-
-while its RSI continues to move upward--but still not 
registering overbought readings.  This configuration of 
indicators frequently produces continued upward movement until 
resistance or retracement "ceilings" are hit.  As of tonight, a 
key short term retracement level for its SNE's advance sits at 
$58.90, 0.02 above today's high.  We would not be surprised to 
see SNE rest here early next week, and perhaps pull back to fill 
the gap created today (from $56.50 on the ADR shares).  Speaking 
of which, a dip to $56.50 might be a good entry point for another 
short-term trade.  This area was previous resistance and it 
should now become support.  To protect some our current gains, we 
have moved our sell stop up to the $55.50 level.  This should 
protect a 4.69% move.  Our initial profit target when we picked 
SNE was the $60 mark.  Despite this strategy goal, short-term 
traders might want to consider locking in some profits now that 
Premier is up over 10% in the play.  We don't have an official 
exit price yet but we'll be evaluating this as the play 
progresses.  Don't hesitate to sell if it reaches $60 if that was 
your own personal target.  Editors note: PnF fans might notice 
that SNE has just produced a bullish triangle breakout.  
Probability studies have shown that in a bullish market, this 
pattern has a 71.4% chance of signaling a profitable bullish 
move.  The average gain for the study was 30.9% over the next 5.4 
months.  Now these are just statistics and we have personally 
seen the exceptions to the rule but if SNE were to follow this 
plan, we could look for a move to the $70 level.  However, before 
you get too excited we don't plan on being in SNE for 5.4 months 
and the descending bearish PnF resistance line is currently at 
$67.  It is something to think about when you begin looking for 
an exit.  If your entry was close to ours at $53.00 a 20% move 
would be $63.60 and given the long-term ascending channel a move 
to $62.50 might be possible.

Picked on April 4th at $53.01
Gain since picked:      +5.80
Earnings Date        04/25/02 (confirmed)




---

Titan Corporation - TTN - cls: 22.86 chg: -0.24 stop: 21.99 

TTN has traded in a relatively tight range between $22.25-$23.50 
over the last 2 weeks.  The stock remains nicely above a rising 
50-dma, as well as its converging 200-dma.  We consider this two-
week consolidation to be positive, since quiet trading ranges can 
be frequently followed by sharp--even explosive--moves and we 
obviously feel that any subsequent sharp move in TTN will be to 
the upside.  Weekly technicals continue to suggest that TTN is 
destined to move up above the $24 resistance level in the next 
few weeks.

Picked on April 15th at $21.26
Change since picked:     +1.60
Earnings Date         04/25/02 (confirmed)





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

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

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

Crane Corporation - CR - cls: 28.22 chg: +0.37 stop: 26.94

Company Description: 
Crane Company is a diversified industrial conglomerate that 
manufactures products for several market sectors: aerospace, 
engineered materials, fluid handling controls and merchandising 
systems. 

Why We Like It: 
Cranes company description, above, creates more questions than it 
answers about the firm's actual business.  But to us, Crane can 
be viewed as this: a huge manufacturing, cyclical company 
producing capital goods for the corporate sector.  Meaning?  CR 
is the kind of company likely to see good price appreciation in 
its stock as the economy improves and as Dow-type stocks attract 
investor money flow.  And this is precisely the environment we 
see today: slowly improving conditions for both the economy and 
the major market averages.  Since April 10th, CR has been in a 
meandering sideways consolidation between roughly $26.00 and 
$28.00.  This has been healthy; rests always are.  Within the 
last week, however, the stock used its rising 50-dma as a 
springboard for what appears to be the beginning of a new 
(potentially) multi-week advance. The last time CR broke out of 
such a consolidation, in February of this year, the stock 
advanced 30% before resting.  We think a similar move is possible 
in coming weeks. Technically, CR's weekly RSI has just recently 
begun rising; the Stochastic Oscillator is on the verge of giving 
a buy-signal cross over; and the MACD is in a solid, positive up-
trend.  The daily technicals don't look bad either.  The MACD 
just produced a bullish crossover on Friday after basing near the 
zero line.  We did note that volume was lighter than we would 
have preferred for the positive move over the $28 level on Friday 
but it looks like an entry point for bulls.  There is potential 
resistance at $28.50 and again near $29.00 but we expect these to 
be mere speed bumps on the way up.  A much more significant level 
of resistance to watch for is the $30 mark.  Just for kicks, 
print a chart and draw a trendline from the December high and 
extend it through the April highs.  You'll see it connect near 
the $30 area.  Short-term traders may want to consider taking 
profits here.  A study of the weekly chart will show long-term 
overhead resistance can be found at the $32.00 to $32.50 area.  
Premier is going to aim just below this level and our profit 
target will be $31.00 to $31.50.  Fortunately, the PnF chart also 
shows a bullish breakout above bearish resistance.  We're going 
to start the play with a stop at $26.94.

Picked on May 17th at $28.22 
Gain since picked:     +0.00
Earnings Date       04/18/02 (confirmed)
 

 

--- 

H&R Block - HRB - cls: 46.88 chg: +0.65 stop: 44.49

Company Description: 
Hey, we all know who H&R Block is, right?  Well, we used to. But 
today this sleepy tax preparation firm founded in 1955 is a 
financial conglomerate with business divisions providing 
investment advice and services, mortgage operations, business 
consulting and, of course, tax consultation and preparation--both 
internationally and domestically.  

Why We Like It: 
Since November of 2000, HRB has experienced only 2 significant 
pullbacks in the price of its shares.  One occurred in October 
2001. It advanced from $32 to $51 in the subsequent rebound.   
The second pullback was just recently completed at the end of 
April 2002.  Since late April, HRB has been recovering, and its 
current short-term pattern suggests to us that this financial 
stock is headed toward the $50 region.  Looking out over the next 
several weeks, we believe that a move proportional to the one 
after the October, 2001 consolidation is likely to occur giving 
us a longer term price target in the $57-$60 region.  We like HRB 
because it has one foot in each of the financial indexes we 
presently like: the Bank Index (BKX) and the Broker Dealers Index 
(XBD).  Although the XBD, and its component companies, were 
literally clobbered in recent weeks, the index rebounded sharply 
at the 127% Fibonacci retracement level (of its mid-February 
through mid-March advance).  This is significant and suggests to 
us that the financial/brokerage complex is ready to advance in 
coming weeks.  Fundamentally, we are quite pleased to have 
learned that Warren Buffet recently added HRB to his corporate 
portfolio.  We like how shares have been building on a pattern of 
higher lows and the recent breakout above short-term resistance 
at $46.50 looks like an entry point.  There could be additional 
resistance around the $47.50 level but we don't expect 
significant selling pressure until HRB hits its old highs between 
$50 and $51 (our short-term targets).  We're going to start the 
play with a stop at $44.49, which will risk just a tad over 5% 
from current levels.

Picked on May 17th at $46.88 
Gain since picked:     +0.00
Earnings Date       06/12/02 (unconfirmed)
 



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

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

DaimlerChrysler - DCX - close: 49.51 change: +1.71 stop: 44.66

DCX finished the week in style as shares finally plowed though 
resistance at $48.  Despite a flat session on the German DAX, the 
ADR gapped higher this morning and proceeded to briefly move 
above the $50 level.  We didn't see any specific news to explain 
today's rally, but suspect that it may have something to do with 
continued weakness in the U.S. dollar.  American multinationals 
benefit from a weakening dollar because it makes their products 
more completive overseas.  Technically speaking, we think today's 
high-volume rally could really get this play jump-started.  
Traders can consider new entries on a move over today's high of 
$50.19 or on a bounce at the $48.50 level.  Bar chartists may be 
calling for DCX to fill in today's gap, but a close over $50 
could prove too tempting for the bulls.

Picked on May 6th at $46.50 
Gain since picked:    +3.01
Earnings Date      02/20/02 (confirmed)




--- 

Shaw Group - SGR - cls: 34.65 chg: +0.52 stop: *see text* 

We continue to wait for our long trade in SGR to be triggered; 
our official price for going long is $35.75 (or above).  We still 
like all of the technicals on this stock, with one modest 
exception: volume has been drifting downward a bit this week, and 
we would like to see this situation remedied in coming trading 
sessions. Our general feeling is that this long position will be 
triggered early next week, probably accompanied by a move in the 
Dow above 10,400.

Picked on May xxth at $ xx.xx <-see text
Gain since picked:      +0.00
Earnings Date        04/15/02 (confirmed)
 



---

Goodrich Corp - GR - close: 33.16 change: +0.63 stop: 30.97 

GR extended its bounce from the 50-dma ($32.09) today, adding 
1.9% to close at a near-term high.  The gains followed news this 
morning that GR had reached an agreement with Virgin Atlantic to 
provide cockpit door video surveillance systems.  As outlined in 
the previous update, GR now faces congestion between $33.25-
$34.00.  A break above this region could clear the way for a 
near-term move to $36, which coincides with the midline of the 
stock's ascending channel.  Given enough time (and a continued 
flow of positive news), we think shares could eventually reach to 
top of the channel near $38.  The technical picture looks strong, 
but traders looking for new entries need to realize there is 
direct resistance not far overhead so use a stop.  In other news, 
Goodrich's COO will be speaking at the Merrill Lynch Global 
Industries Conference on Tuesday, May 21st.

Picked on May 3rd at $31.97
Gain since picked:    +1.19
Earnings Date      04/24/02 (confirmed)


 

---

Mohawk Industries - MHK - close: 68.43 change: +3.41 stop: 62.98 

A delayed reaction to Thursday's strong building permits data 
sent homebuilding stocks higher today.  The sector was previously 
weighed down by a decline in actual housing starts, but investors 
seemed to shrug off that piece of news today.  Backed by its 
strongest volume in over a month, MHK rose 4.5% and closed over 
resistance at $68.  The stock has performed strongly since 
bouncing from the 50-dma (currently 63.57) and looks poised to 
break to all-time highs.  The sector appears to have plenty of 
upside potential, with the DJUSHB just beginning to rise from the 
bottom of its ascending channel.  Traders who are willing to 
brave possible psychological resistance at $70 can evaluate 
entries if shares move above the all-time high of $68.45.  We'll 
likely be raising our stop if/when MHK closes above this level.

Picked on May 3rd at $66.30
Gain since picked:    +2.13
Earnings Date      04/15/02 (confirmed) 




---

Adolph Coors - RKY - close: 68.07 change: +0.37 stop: 63.89

RKY ended the week on a positive note, as shares closed above the 
$68 for the first time since May 6th.  It's encouraging to see 
the bulls reclaim this level after a successful test of the 50-
dma at $65.73.  The next obstacle lies at the relative high of 
$69.25.  A move over this level would set the stage for a test of 
psychological resistance at $70.  The stock's MACD is beginning 
to hint at a bullish crossover again and it could occur soon.  
You also may be interested to know that before the bell this 
morning, RKY announced a Q2 dividend of 20.5 cents/shares.  The 
dividend will be payable on June 17, 2002 to shareholders of 
record on May 31, 2002.
 
Picked on May 2nd at $68.36
Gain since picked:    -0.27
Earnings Date      04/25/02 (confirmed) 




---

Smith Intl - SII - close: 73.18 change: -1.44 stop: 71.29

SII lost nearly 2% today and gave back all of Thursday's gains.  
Shares were pressured by weakness in the OSX.X oil service index, 
which oozed lower by 2.3%.  The index is approaching its 50-dma 
at 102.75.  The fate of this play may depend on whether the OSX 
can remain above that moving average.  Throughout the week, SII 
found support at $73.  This level is reinforced by the midline of 
the stock's ascending channel.  Traders could consider going long 
if SII bounces from $73, with cautious traders placing their 
stops near $72.90.  Keep an eye on the price of oil too.  The 
current futures contract (cl02m) appears to have bounced the last 
two days in a row and could be ready for another move higher 
(probably towards the $30 a barrel mark).

Picked on April 26th at $71.29 
Gain since picked:       +1.89
Earnings Date         05/02/02 (confirmed)


 

--- 

Timberland Company - TBL - cls: 42.33 chg: +0.22 stop: 39.95 

Not much new to report for TBL.  The stock traded in a narrow 40-
cent range today and remained safely above the 50-dma at $41.66.  
The technical picture is unchanged:  We're looking for shares to 
begin filling in the April 18th gap.  A move above $42.75 could 
clear the way for a test of resistance at $44 or even the multi-
month high of $45.95.  For now, we're content to watch TBL 
consolidate above the 50-dma.  Hopefully the recent coiling 
action will lead to a breakout. More conservative traders could 
attempt to reduce risk by upping their stop to just under $41.00 
(Monday's low) or even tighter if you use the 50-dma.  We are 
electing to leave ours under $40 for the moment.

Picked on May 3rd at $41.89 
Gain since picked:    +0.44
Earnings Date      04/18/02 (confirmed)




---

Dana Corp. - DCN - close: 22.67 change: +0.95 stop: 20.44

We noted last night that Dana is a cyclical stock and that we've 
chosen it as a new long play partially because we've been 
favorably impressed recently with the technical pattern on the 
Morgan Stanley Cyclical Index (CYC).  We expect this index to 
enjoy a new, healthy breakout very soon. And what about Dana? 
Well, Dana has jumped the gun and already broken out.  The stock 
powered higher today triggering our entry on this stock at 
$22.26. Today's price action was impressive with the stock 
putting in a repeat performance of yesterday's strong volume 
spike. We're going set our sell stop at $20.44.  This stop level 
has been safely placed just below near term support as well as 
the 50-dma.  Given the strong four-day run up, some traders might 
want to consider looking for a pull back to the $22.00 or $21.50 
level as a new entry point.

Picked on May 17th at $22.26 
Change since picked:   +0.51
Earnings Date       04/17/02 (confirmed)
 



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

Danaher Corp. - DHR - close: 72.28 change: +0.31 stop: 73.01

As we noted last night, our short play in DHR continues to 
attempt to build a head and shoulders topping pattern on our 
daily and weekly charts.  Shorter term considerations also hint 
at possible negative price action in DHR: its 50-dma is no longer 
rising, prices have been struggling to close at or above the 50-
dma, and volume has been flat-to-declining this past week even as 
DHR's price has move higher.  It will be important for DHR to 
begin trading below its 50-dma early next week for our short 
position to begin showing better behavior.  DHR finished today's 
trading just slightly above the 50-ma, which now sits at $71.82.  
We would point out that two technical indicators are not agreeing 
with our bearish bias.  The stochastics (using 14,1,3) and the 
MACD are looking bullish.  We'd be very cautious and not 
encourage new entries at this time.    

Picked on May 13th at $69.03
Gain since picked:     -3.25
Earnings Date       04/18/02 (confirmed) 




--- 

Sabre Holdings Corp - TSG - cls: 38.92 chg: -0.50 stop: 42.01

TSG has been unable to struggle back above its 200-dma after 
closing on top of this indicator for the first part of this week.  
But Thursday and Friday's price action now have TSG clearly back 
under the 200-dma.  As we noted last night, we will be watching 
for a close below $38.74, which should turn our Bollinger Bands 
(5-dma with 1.7 sd) downward again.  When both the upper and 
lower Bollinger Bands are trending lower, this is a good 
indicator that prices are likely to decline as well in coming 
days.  PnF chart readers will also see more good news for bears.  
The stock has broken its bullish support trendline.  More 
conservative traders could attempt to tighten their stops towards 
the $40.50 area but we're going to leave ours near $42 until 
shares close under the $38 level again.  We have noted with 
interest that investors are avoiding TSG for shares of other 
travel-related stocks like EXPE and ROOM, which are rebounding.

Picked on May 13th at $39.74
Gain since picked:     +0.82
Earnings Date       04/18/02 (confirmed)




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

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

Loews Corporation - LTR - cls: 58.39 chg: -0.56 stop: 58.45

It looks like the early-May rally in LTR may have been a head 
fake.  Shares certainly appeared to be breaking out from an 
extended consolidation period after rising above $62 on strong 
volume.  That turned out to be a near-term top, as shares 
reversed course and preceded to trend lower.  The stock 
accelerated to the downside after breaking under the 50-dma and 
finished Friday with its fourth straight loss.  Before closing 
with a loss of nearly 1%, shares violated our stop at $58.45.  
This closed our play with a loss of $2.05.  LTR may bounce from 
historical support at $57, but we'd be suspicious of any rally 
under the 50-dma.

Picked on May 7th at $60.50 
Gain since picked:    -2.05
Earnings Date      05/09/02 (confirmed)





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

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

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

Lucent Technologies - LU - close: 4.91 change: +0.09 stop: *text*

Company Description:
Lucent Technologies, headquartered in Murray Hill, N.J., USA, 
designs and delivers networks for the world's largest 
communications service providers. Backed by Bell Labs research 
and development, Lucent relies on its strengths in mobility, 
optical, data and voice networking technologies as well as 
software and services to develop next-generation networks. The 
company's systems, services and software are designed to help 
customers quickly deploy and better manage their networks and 
create new revenue-generating services that help businesses and 
consumers. (source: company website)

Why We Like It:
We're not going to bother discussing the merits or demerits of 
LU's fundamentals.  This is purely a technical play.  Chart 
readers will notice that LU appears to have created a reverse 
head and shoulders pattern.  It's kind of ugly but it's there.  
The neckline is right at the $5.00 mark.  Our plan is to set a 
trigger price just above the neckline.  There is some price 
congestion between $5.00 and $5.50 but we are going to target a 
move to the $6.00 area where the 200-dma is hovering.  Remember 
this is a high-risk reward play and should only be considered 
with risk capital.  Our trigger to go long will be $5.05 and our 
trigger to sell will be $5.95.  Once triggered will start with a 
stop loss at $4.49.

Picked on May xth at $xx.xx <- see text
Change since picked:  +0.00
Earnings Date      04/22/02 (confirmed)
 



---

Providian Financial - PVN - cls: 7.47 chg: +0.10 stop: *text*

Company Description:
San Francisco-based Providian Financial is a leading provider of 
credit cards and deposit products to customers throughout the 
U.S. (source: company website)

Why We Like It:
A month ago (April 19th), we attempted to buy a pullback in 
shares of PVN.  We were not triggered and elected to subsequently 
drop the play 10 days later after it sank under the $7.00 level.  
Helping to move the stock higher was the May 6th earnings report.  
The company announced lower year-over-year Q1 profits but 
nonetheless beat the consensus estimate by one cent.  This seems 
to have given new life to the stock, which has since been 
marching higher in a pattern of higher lows.  Tonight we're 
bringing PVN back to our Play List in an attempt to capture a 
move to the $8.50 resistance level.  This level should be 
attainable if shares continue trending higher given the strength 
in the financial sectors.  However, before we enter the play, PVN 
will have to prove itself by trading over the near-term high of 
$7.65.  If this occurs we'll open the play with a stop of $6.99, 
below both psychological support ($7.00) and the low for the 
week.  Given our profit-target (discussed below), this is a bit 
wider of a stop than we normally prefer.  Because this is a high-
risk/high-reward play, we're willing to take a little more heat.  
More cautious traders may want to place their stops just under 
Thursday's low of $7.18.  Since the premise of this play is only 
to capture a quick move to resistance, we're initiating this play 
with a profit-target.  We'll exit the play if shares trade at or 
above $8.45.  This would be a 10.3% move from our trigger price.  

Picked on May xth at $xx.xx <- see text
Change since picked:  +0.00
Earnings Date      05/06/02 (confirmed)
 



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

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

Crown Cork Seal - CCK - close: 9.75 change: -0.23 stop: *text*

Only six cents separated CCK's Friday high and our entry trigger 
at $10.31.  Shares approached that level after gapping higher 
this morning, but sellers quickly brought the stock back under 
$10.  Although CCK finished with a small loss, we like how it 
remained above the 50-dma (barely) and traced a higher low.  Our 
strategy for entries also remains the same: we'll go long if the 
stock trades at or above $10.31, with a stop set at $9.10.

Picked on May xth at $xx.xx <- see text
Change since picked:  +0.00
Earnings Date      04/18/02 (confirmed)
 




==================================================================
LONG-TERM PLAYS (LT) section
==================================================================

============
LT New Plays
============

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

Bank One Corp. - ONE - cls: 42.53 chg: +0.50 stop: *see text*

Company Description: 
Bank One Corporation is a multi-state bank holding company with 
operations in several states including Arizona, Colorado, Florida 
and Texas.  In addition to conducting traditional banking 
activities, ONE is also involved in credit card processing, 
investment banking, brokerage and investment management, and data 
processing.

Why We Like It: 
Bank One is a money center bank.  We like it long term for 
several fundamental and technical reasons.  Fundamentally, the 
banking sector is traditionally a stable industry during good 
economic times.  This means that banks are generally able to 
deliver 1) consistent earnings quarter over quarter and 2) grow 
earnings as economic conditions improve.  Since the US is 
currently at the beginning of a longer-term economic recovery, we 
believe that diversified banking businesses are simply at the 
right place at the right time.  Conditions seem like they can 
only get better for financial businesses.  Banks, like ONE, have 
struggled with the rest of the economy in the last couple of 
years.  That is likely part of the reason that a majority of 
analysts currently rate ONE as a hold; it is interesting to note, 
though, that 7 of 26 firms covering the bank have ratings of 
"buy" or "strong buy" on it.  A review of ONE's recent earnings 
reports demonstrates two items: 1) the company has been able to 
meet or exceed EPS estimates and 2) estimates for Q2 and Q3 of 
this year are trending upward.  Bank One's most recent surprises 
were .64 vs. .62 (estimate) for the Q3 2001 and .67 vs. .66 
(estimate) for Q1 of 2002.  Current EPS estimates for Q2 2002 are 
.68 EPS, and .70 for Q2 2002.  In addition to modestly improving 
quarterly earnings, we find ONE attractive at a technical level.  
ONE has spent the last 8 weeks consolidating sideways and has 
just begun to break out of this pattern during the last few days 
of this week.  We like the bank's improving RSI, MACD and 
Stochastic Oscillator--on both weekly and daily charts--as well 
as the increasing volume which has taken place on this breakout.  
We did find it very interesting that on ONE's weekly chart shares 
have struggled with the $40 area for the last two and a half 
years.  The breakout in March 2002 had to deal with a lot of 
overhead supply.  Now it appears that shares have finished 
consolidating and the recent bottom at psychological support and 
previous resistance of $40 is now bolstered by the 200-Weekly MA. 
The PnF chart also confirms a long-term breakout has begun. Its 
50 dma is trending upward and ONE has been able to use this as 
technical "fence" as a general region of support. We would use an 
entry point above 42.88; ONE's March 22 high.  Once into this 
longer-term position, a sell stop of 39.54 should be initiated.  
Our initial profit target will be the $50 area but we'll evaluate 
this as the play progresses.  As a long-term play our time frame 
is three to six months.

Picked on May xxth at $xx.xx <-see text 
Gain since picked:     +0.00
Earnings Date       04/16/02 (confirmed)
 



===============
LT Play Updates
===============

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

Universal Health Ser. - UHS - cls: 45.52 chg: +0.40 stop: 41.49

UHS suffered through a couple weeks of lower prices during the 
first two weeks of May, trading right down to its converging 50-dma 
and 200-dma.  In recent days, though, Universal has used these 
converging dma's as a rebound point and it now appears to us that 
this rebound is likely the beginning of a new upward advance. Our 
daily and weekly RSI's have now turned upward, the stochastics 
(using 14,1,3) are bullish, and the MACD looks like it could 
produce a bullish crossover soon.  These technical indicators 
support our contention that it is attempting to begin a new upward 
phase. On a fundamental level, Merrill Lynch added Universal Health 
Services to its "Focus 1" list on Wednesday, May 15th.  Merrill 
said that UHS has "an attractive stock price, strong bottom-line 
growth and the potential to beat current expectations."  The 
brokerage firm also noted that UHS is the least expensive stock in 
its industry group, which includes hospital-operating companies. 

Picked on April 19th at $46.60
Gain since picked:       -1.08
Earnings Date         04/18/02 (confirmed)




===============
LT Closed Plays
===============

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

Global Industries - GLBL - close: 8.61 change: -0.29 stop: 8.98

Global Industries provides pipeline construction & platform 
installation services to the oil and gas industry. We originally 
felt that this company was well poised to take advantage of a 
recovering US economy as well as positive technical forces in the 
oil services industry.  And it may still be able to do that.  For 
our purposes, however, GLBL has simply not moved above our 
trigger price and we have decided to remove this trade from our 
play list.  In our original write-up we felt that conservative 
investors might want to consider waiting for GLBL to trade above 
the early April high of $10.50 before going long; officially, 
however, we elected to use $10.11 as our "go long" trigger.  This 
level has not been hit since we listed it and this play is now 
officially closed.  

Picked on May 3rd at $xx.xx <-- see text
Gain since picked:    +0.00
Earnings Date      05/02/02 (confirmed)



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The Premier Investor Network.
Do not duplicate or redistribute in any form.
PremierInvestor.net Newsletter         Weekend Edition 05-17-2002
                                                   Section 3 of 3
Copyright  2002, All rights reserved.
Redistribution in any form is strictly prohibited.

The entire newsletter is best viewed in COURIER 10 for alignment
=================================================================


In section three:

Market Watch for Week of May 20th
   - 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 May 20th
==================================================

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

Symbol  Company               Date           Comment      EPS Est

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

BAB    British Airways        Mon, May 20  -----N/A-----      N/A
GME    Gamestop Corp.         Mon, May 20  After the Bell    0.05
LTD    Limited                Mon, May 20  -----N/A-----     0.10
LDG    Longs Drug Stores      Mon, May 20  -----N/A-----     0.28
LOW    Lowe`s Companies       Mon, May 20  -----N/A-----     0.36
NSANY  Nissan                 Mon, May 20  -----N/A-----      N/A
TOY    Toys R Us              Mon, May 20  Before the Bell  -0.05

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

SKS    Saks                   Tue, May 21  After the Bell    0.13
SMTC   Semtech                Tue, May 21  After the Bell    0.12
SPLS   Staples                Tue, May 21  Before the Bell   0.11
SCMR   Sycamore Networks      Tue, May 21  After the Bell   -0.11
TGT    Target Corporation     Tue, May 21  Before the Bell   0.36
KPN    Koninklijke KPN        Tue, May 21  Before the Bell    N/A
IPR    International Power    Tue, May 21  -----N/A-----      N/A
HD     Home Depot             Tue, May 21  Before the Bell   0.33
CPRT   Copart                 Tue, May 21  After the Bell    0.17
CSKKY  CSK                    Tue, May 21  -----N/A-----      N/A
BGP    Borders Group          Tue, May 21  After the Bell    0.04
BCM    Canadian Imp Bank Comm Tue, May 21  -----N/A-----      N/A
AZO    AutoZone               Tue, May 21  After the Bell    0.78
BLI    Big Lots, Inc.         Tue, May 21  Before the Bell   0.07
BJ     BJ`s Wholesale Club    Tue, May 21  Before the Bell   0.31

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

CMOS   Credence Systems       Wed, May 22  After the Bell   -0.33
DT     Deutsche Telekom       Wed, May 22  Before the Bell    N/A
EV     Eaton Vance            Wed, May 22  Before the Bell   0.46
JDEC   J.D. Edwards           Wed, May 22  -----N/A-----     0.04
KUB    Kubota                 Wed, May 22  -----N/A-----      N/A
MDT    Medtronic              Wed, May 22  -----N/A-----     0.34
NVDA   NVIDIA                 Wed, May 22  After the Bell    0.46
RL     Polo Ralph Lauren      Wed, May 22  Before the Bell   0.44
ROST   Ross Stores            Wed, May 22  Before the Bell   0.59
RY     Royal Bank of Canada   Wed, May 22  -----N/A-----      N/A
TLB    Talbots                Wed, May 22  -----N/A-----     0.56
TECD   Tech Data              Wed, May 22  -----N/A-----     0.57
TKP    Technip-Coflexip       Wed, May 22  After the Bell    0.32
TOT    Total Fina S.A.        Wed, May 22  -----N/A-----     0.85

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

AAP    Advance Auto Parts     Thu, May 23  Before the Bell   0.53
BKS    Barnes&Noble           Thu, May 23  Before the Bell  -0.06
CBRL   CBRL Group             Thu, May 23  -----N/A-----     0.34
CIEN   CIENA                  Thu, May 23  Before the Bell  -0.21
CLE    Claire`s Stores        Thu, May 23  -----N/A-----     0.15
Z      Foot Locker, Inc.      Thu, May 23  Before the Bell   0.26
ING    ING Groupe NV          Thu, May 23  -----N/A-----      N/A
KKD    Krispy Kreme Doughnut  Thu, May 23  -----N/A-----     0.14
MBG    Mandalay Resort Group  Thu, May 23  After the Bell    0.71
MRVL   Marvell Tech Grp LTD   Thu, May 23  After the Bell    0.07
MW     Men`s Wearhouse        Thu, May 23  Before the Bell   0.16
NDSN   Nordson                Thu, May 23  Before the Bell   0.25
PDCO   Patterson Dental       Thu, May 23  Before the Bell   0.38
PETC   Petco Animals          Thu, May 23  After the Bell    0.13
ROP    Roper Industries       Thu, May 23  After the Bell    0.56
SXC    Six Cont Hotels & Res  Thu, May 23  -----N/A-----      N/A
TOM    Tommy Hilfiger         Thu, May 23  -----N/A-----     0.40
UU     United Utilities       Thu, May 23  -----N/A-----      N/A
WSM    Williams-Sonoma        Thu, May 23  Before the Bell   0.09

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

SCO    Scor ADS               Fri, May 24  Before the Bell    N/A


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

Symbol  Company Name              Ratio    Payable     Executable

FULT    Fulton Financial          5:4      05/17       05/20
VLY     Valley National Bancorp   5:4      05/17       05/20
ANN     Ann Taylor                3:2      05/17       05/20
OCFC    OceanFirst Financial      3:2      05/17       05/20
MAXS    Maxwell Shoe Co           3:2      05/17       05/20
YORW    York Water Co             2:1      05/17       05/20
LLL     L-3 Communications        2:1      05/17       05/20
ZRAN    Zoran Corp                3:2      05/21       05/22
ANE     Alliance Bancorp         11:10     05/21       05/22
DCM     NTT DoCoMo                5:1      05/22       05/22
GTK     GTECH Holdings Corp.      2:1      05/23       05/24
BKNW    Bank of the Northwest     5:4      05/24       05/28
SU      Suncor Energy             2:1      05/25       05/28
GG      Goldcorp                  2:1      05/28       05/29
CPG     Chelsea Property          2:1      05/28       05/29
UCBI    United Community Banks    2:1      05/28       05/29
COCO    Corinthian Colleges       2:1      05/28       05/29
RYL     Ryland Group              2:1      05/29       05/30
RYAN    Ryans Family Steak        3:2      05/29       05/30
DBRN    Dress Barn                2:1      05/30       05/31
APWR    AstroPower, Inc           3:2      05/30       05/31
RNR     RenaissanceRe             3:1      05/30       05/31
HHS     Harte-Hanks Inc           3:2      05/30       05/31
CACB    Cascade Bancorp           3:2      05/30       05/31
SRCL    Stericycle Inc.           2:1      05/31       06/03
FBC     Flagstar Bancorp          3:2      05/31       06/03
ALC     Alltrista                 2:1      05/31       06/03
PRSP    Prosperity Bancshares     2:1      05/31       06/03


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

Do we have a real economic recovery yet? We'll know if the 
consumer is doing his (and her) part next week when we see piles 
of earnings reports from the like of The Limited, Saks, Target, 
Home Depot, Toys R Us and Autozone.  Not enough recovery rubble to 
rummage through?  Don't worry!  You'll be able to get your fill 
with Monday's Leading Indicators report, Thursday's Durable Goods 
Orders numbers and Friday's all-important preliminary GDP figures. 
Who knows--maybe they'll all point in the same direction for a 
change!

==============================================================
                       -For-           

Monday, 05/20/02
----------------
Leading Indicators (DM)  Apr  Forecast:  -0.1%  Previous:    0.1%
Treasury Budget (DM)     Apr  Forecast: $72.5B  Previous: $189.8B

Tuesday, 05/21/02
-----------------
None

Wednesday, 05/22/02
-------------------
None

Thursday, 05/23/02
------------------
Initial Claims (BB)    05/18  Forecast:    N/A  Previous:    418K
Durable Orders (BB)      Apr  Forecast:   0.4%  Previous:   -0.5%

Friday, 05/24/02
----------------
GDP-Prel. (BB)            Q1  Forecast:   5.8%  Previous:    5.8%
Chain Deflator-Prel. (BB) Q1  Forecast:   0.8%  Previous:    0.8%
New Home Sales (DM)      Apr  Forecast:   883K  Previous:    878K


Definitions:
DM=  During the Market
BB=  Before the Bell
AB=  After the Bell
NA=  Not Available


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

TYC     Tyco Intl. Ltd             21.75     +1.19
UNP     Union Pacific Corp         61.16     +0.84
LTD     The Limited Inc            22.25     +0.65
GSB     Golden State Bancorp       34.69     +1.18
DFXI    Direct Focus Inc           42.50     +1.18

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

ANFI    American Natl. Financial   13.75     +1.00
RNWK    Realnetworks Inc            9.10     +1.31
LGND    Ligand Pharmaceuticals     18.88     +1.93
SIL     Apex Silver Mines Ltd      15.50     +1.35
GLYN    Galyans Trading            19.98     +1.03
PEET    Peet's Coffee & Tea        17.94     +2.23

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

RMCI    Right Mgmt Consultants     31.23     +3.48
KSS     Kohl's Corp                77.75     +4.20
PBG     Pepsi Bottling Group       33.93     +1.48
MYL     Mylan Labs                 29.11     +1.18
KWD     Kellwood Co                29.21     +1.25

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

DUK     Duke Energy                33.52     -1.18
EXC     Exelon Corp                51.99     -1.05
TE      Teco Energy Inc            25.00     -1.18
ICLR    Icon Plc ADS               24.44     -1.16

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

SHRP    Sharper Image Corp         20.70     -1.05
EASI    Engineered Support         47.71     -2.36
SLGN    Silgan Holdings Inc        38.00     -2.50



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