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Daily Newsletter, Wednesday, 05/22/2002

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PremierInvestor.net Newsletter              Wednesday 05-22-2002
                                                  section 1 of 2
Copyright  2001, All rights reserved.
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In section one:

Market Wrap:      Time To Jump Into the Russell 2000?
Watch List:       BRCM, FCEL, PSFT, VRTS, and more...
Play of the Day:  This Long Play Could Be Explosive


******************************************************************
MARKET WRAP  (view in courier font for table alignment)
******************************************************************
        05-22-2002        High      Low     Volume Advance/Decline
DJIA    10157.90 + 52.20 10157.90 10063.50 1149 mln   1606/1530
NASDAQ   1673.50 +  9.30  1676.64  1643.96 1735 mln   1524/1950
S&P 100   541.92 +  3.64   541.92   536.06   totals   3130/3480
S&P 500  1086.02 +  6.14  1086.02  1075.64
RUS 2000  493.91 -  1.55   497.14   490.23
DJ TRANS 2716.20 + 13.42  2721.17  2700.93
VIX        21.59 -  1.18    23.19    21.52
VXN        44.70 -  0.38    45.24    44.29
Put/Call Ratio      0.86

******************************************************************

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

TIME TO JUMP INTO THE RUSSELL 2000? SOON. BUT NOT YET

I'm Still Positive on the Dow and Nasdaq....
But a Little Cool to the Recently Hot Russell 2000

In the sections below, I discuss the Dow, COMPX, SPX and Russell 
2000 (RUT) in more detail.  For now, though, let me just say 
reiterate my positive perspective on all of these indexes with 
the exception of the Russell 2000.  This index has received 
considerable press in recent weeks--particularly on CNBC--and I'm 
sure plenty of investors are thinking about shifting a healthy 
chunk of their assets into this index.  But my technical reading 
of the RUT is that is its now in a consolidation mode, and is 
likely to go down before it goes back up.  So if you're nearly 
delirious to get into this index, patience will serve you well at 
this time. 

Today's Market:  

Wednesday saw an impressive, positive reversal in the major 
indexes after all had been down most of the day.  The market was 
negative on global concerns about international terrorism, and 
the possibility of a domestic terrorist attack in New York over 
the Memorial Day weekend.  It seems like these issues are going 
to increasingly take the markets' attention, but I do not think 
that investors can let such worries dictate how they deploy their 
investment dollars.  My opinion continues to be that the weakness 
of the last few days is a necessary evil after the sharp run-up 
of last week--and that today's terrorist-related news simply 
became an excuse for profit taking.  

After the market began its upward reversal, the Dow finished up 
about 1/2%, at 10,157 while the SPX finished up about the same 
percentage, closing at 1086.  The Nasdaq Composite was able to 
add 9 points into the closing bell, also just over 1/2%.  But the 
small cap index, the Russell 2000 (RUT), finished down 1/3%, at 
494.

Although the Dow, SPX (S&P 500) and COMPX (Nasdaq Composite) have 
each come down to regions I thought would satisfy short-term 
consolidation requirements, I remain a tad cautious because of 
the readings we're getting on the Market Volatility Index (VIX).  
The VIX closed today at 21.63; while this is not in the 19-20 
range that usually results in profit taking, and/or market 
weakness, it remains nonetheless low enough that caution is 
required over the next few days.  My own bias is that we need to 
see this indicator return to the 24-25 range, at which time we 
could begin to see renewed upward movement in the major indexes.  

Perhaps the dominant market-related news item today was the 
announcement that the CEO of the Gap was resigning.  This seemed 
to put pressure on much of the retail sector, including one of 
our long positions, apparel maker Timberland Company. By the time 
the market closed, TBL had traded below our sell stop ($39.95), 
kicking us out of this trade with a -4.6% loss.  

In overnight trading in Japan, the Japanese central bank was 
selling Yen, and buying US dollars, in order to stem the growing 
strength of the Yen.  The central bank is concerned that the 
growing power of the Yen will make Japanese exports less 
attractive to international consumers, effectively restraining 
production and, ultimately, profits for the country's major 
exporters.  

Currency intervention, and turmoil, frequently brings with it a 
rise in the price of gold; today was no exception.  The gold 
futures were up nicely on the day ($318.30).  The way most 
investors play the rise in gold is to buy gold stocks like ABX, 
NEM and so on.  I had noted the other day that we felt the Gold 
and Silver Index (XAU) was probably close to a top, but that this 
top might not occur until the index had experienced a sharp, 
short burst higher, to about the XAU 92 level, from current 
levels in the low 80's.  Today, the XAU reached a high of 87 
before reversing, and closing flat on the day, at the 85 level.  
Investors wishing to take positions in gold stocks will probably 
need to employ patience at this time; the index has become very 
volatile and is probably very close to its high for the next 
several weeks, if not months.

Getting Ready For Tomorrow, Thursday, May 23rd.

Two reports that possess the ability to sway the market will be 
released before trading begins tomorrow.  One of these will be 
closely watched: the Durable Goods report.  We all know that one 
of the major debates raging today in trading rooms and living 
rooms is whether our economy is getting back on track, and 
growing.  One indication of improvement will be if consumers are 
gobbling up durable goods--cars, washing machines, lawn mowers, 
tractors and the like.  The more they buy, the more people are 
put to work, who in turn can buy more goods and services....and, 
well, you get the idea....the economy grows.  A sluggish Durable 
Goods report will likely cause weakness across the board in the 
markets on Thursday.  A stronger than expected report should send 
all the averages considerably higher.  Initial Jobless Claims 
will also be released at 8:30 a.m. EDT, but its influence on 
tomorrow's trading should take a back seat to the durable goods 
numbers.

The telecom sector is likely to feel more heat tomorrow morning.  
After Wednesday's close, Standard and Poor's lowered Quest 
Communication's debt to junk status.  Even though this is 
probably old news, expect a knee-jerk reaction in this section.

Do we have any big earnings reports tomorrow?  Nothing major, but 
the retail sector will be in the spotlight again with reports 
from Barnes and Noble, Claires Stores, Krispy Kreme, Nordstrom, 
Williams-Sonoma, Foot Locker and Tommy Hilfiger.  Tomorrow will 
help tell us if consumers are buying big-ticket items as well as 
whether or not they are stocking up on sweaters, undies, cook 
ware, tennis shoes and lots of good books.

Here are the technical levels to watch on the major indexes over 
the next few days:

The Dow Jones Industrial Average (INDU): The Dow fooled us, 
trading down to a low of 10,063; I had told you on Monday that 
10,120 should offer support.  Going into the last two days of 
this week, expect the Dow to try to remain above the 10,120 
support region.  If it breaks again, we should expect for the 
industrials to trade down to the 10,000 region.   Resistance is 
going to be right at 10,250.  A move above this level will be 
very positive short-term.

S&P 500 (SPX): The SPX finished today at 1086. The index came 
right down to the support region I gave you on Monday night 
(1074) and bounced off this floor today.  If the SPX experiences 
weakness on Thursday, look for it to use this level again as 
support; below that, SPX 1066  should try to contain a slide in 
the index.  Resistance for Thursday will be at 1092.  Above this 
level, look for the SPX to bump into next resistance levels at 
1106 and then 1112.

Nasdaq Composite (COMPX): I said Monday night that a drop to the 
1645 region should provide a springboard for a rebound in the 
COMPX.  Today, the index traded down to a low of 1644 before 
beginning its snap-back rally that pulled it up to 1673 at the 
close.  COMPX 1645 should continue to serve as support on 
Thursday. I would be surprised if the index moves below that.

Beginning tonight, we'll be adding the Russell 2000 (RUT) to my 
discussion of the key indexes.  My thoughts on this index are 
contained below.

Looking at Key Market Sectors

Each night I try to offer active traders some of my technical 
thoughts about key sectors that are shaping the current short-
term direction of the market.  Please remember that other sectors 
covered in previous market wraps include the SOX 
(semiconductors), CYX (cyclicals), BKX (banks), HMO (healthcare), 
OSX (oil services), TNX (10 year note yields), XBD (broker 
dealers), XAL (airlines) and XAU (gold and silver).

Here are my thoughts on tonight's sector: the Russell 2000 Index 
(RUT).

The Russell 2000 Index (RUT)

The Russell 2000 Index (RUT) measures the performance of 2000 
smaller-capitalization companies with an average capitalization 
of $530 million.  The index bottomed on Sept. 16th, 2001 at a 
reading of 374; in the subsequent 6 month period, the index has 
risen to a recent high (April 14th, 2002) of 515, generating a 
performance of 38%.  This kind of move has not gone unnoticed and 
there has been a growing realization among investors, and the 
financial press, that the RUT is the place to be. 

Sure, it would have been great had we all known that RUT 374 was 
a low, and the point into which to pile our assets.  But that was 
more than 6 months ago and the question we have to ask ourselves 
tonight is this: is this an index to buy today?  Does it still 
have plenty of juice to go much higher?

My view: it will go higher in coming months, but right now it 
needs to rest.  If you buy into it today, there is a good chance 
you'll be frustrated over the next few weeks. Technically, this 
index is currently lagging behind the Dow, SPX and COMPX.  If we 
see the overall market begin to rebound in coming trading 
sessions, my suspicion is that the RUT will not follow, at least 
for another week or two.

Technically speaking here's the numbers as I see them on the 
Russell 2000.  The RUT closed today at 494.  The index has an 
important retracement level at 484--just 2.5% below today's 
close.  The RUT may be able to find a short-term bottom here off 
of which to rebound.  If it can, this should be a good place to 
enter the index.  More than likely, though, the RUT is likely to 
go to the 473 level, and this is the point at which I think 
patient investors will be best served.  Could it go lower?  Yes 
it could, and that is one of the reasons I am skittish on this 
index right now.  When might the RUT hit one of the support 
levels I've discussed?  I suspect we are within a week or two of 
this bottom.  How high can the RUT go once it has found its 
bottom?  Hey, you're getting mighty demanding!  We'll cover that 
topic in coming Market Wraps.

I'll be back Friday with more to say about the markets and where 
they're heading in coming weeks.  

Siegfried Brian Barger, 
Editor   



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


Broadcom - BRCM - close: 24.64 change: +0.42

WHAT TO WATCH: A short-covering rally gave BRCM bulls some relief 
last week, but shares quickly gave back all of their gains - and 
then some.  BRCM traded a new multi-month low today before 
bouncing on false rumors (too bad) that Osama Bin Laden had been 
killed.  The daily stochastics and MACD are looking weak, and p-
n-f chartists may also want to note that BRCM is signaling a 
triple-bottom breakdown.  If the stock drops below today's low of 
$23.74, a test of the $20 level would not be out of the question.  
In terms of sector weakness, the SOX.X is under its 200-dma and 
has plenty of downside remaining until its 450 support level.  If 
the chip sector continues lower we'd expect BRCM to lead the 
decline.




---

FuelCell Energy - FCEL - close: 13.22 change: +0.04

WHAT TO WATCH: With oil getting more expensive lately, you might 
think that alternative energy stocks should be getting a boost.  
Well, that isn't the case with FCEL.  The stock has fallen 
precipitously in recent weeks and could be headed for a retest of 
its September lows ($10.48).  The plummeting daily stochastics 
(5,3,3) and triple-bottom p-n-f sell signal suggest that the 
bears may get their way.  Entries can be considered on a move 
below the near-term low of $12.75, but be aware that support may 
emerge at the $12 level.




--- 

PeopleSoft, Inc. - PSFT - close: 20.14 change: +0.10

WHAT TO WATCH: Shareholders of PSFT must be getting nauseous.  
The stock has fallen nearly 45% in less than two months and is 
showing no signs of a recovery.  As a matter of fact, shares are 
threatening to break below the near-term low of $18.95.  The 
GSO.X software index is also downtrending and looks like it may 
retest the 115 levels.  We'd expect PSFT to lead the way lower.  
With the MACD about to produce a bearish crossover, we think 
aggressive entries can be evaluated at current levels.  More 
cautious traders may want to wait for a move below $18.95.


 

---

VERITAS Software - VRTS - close: 24.80 change: -0.23

WHAT TO WATCH: Shares of VRTS moved sharply higher with the 
software sector last week but were unable to crack resistance at 
$30.  As the short covering subsided, VRTS rolled over and 
quickly returned to its pre-rally levels.  The stock is now 
approaching what could be a crucial pivot point.  The multi-month 
low ($23.36) lies just above the 81% retracement from September 
lows to January highs.  A break of this level could lead to a 
test of the $20 level.  Watch for a move below $23, which would 
create a double-bottom p-n-f sell signal.
  



---

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

Ford - F - close: 18.19 change: +0.61

If we didn't have DCX on our play list we probably would have 
added Ford several days ago.  The stock began to break out on 
Monday, on good volume, and we look for it to advance higher in 
coming weeks.  It may be a bit extended right now; an ideal entry 
point for a long position would be near the $17.25 support 
region.




---

BE Aerospace, Inc. - BEAV - close: 13.00 change: +0.25

This stock has been consolidating around the $12.00-$13.00 region 
for the last four weeks.  Volume is now improving, and our short-
term momentum indicators are rising.  A move above today's high 
of $13.18 would probably represent an entry point for a long 
position in BEAV.




---

Firstenergy Corp - FE - close: 34.31 change: +0.49

FE is attempting to fill a fast move region that runs from $34.65 
to about $38.00.  The stock has recently enjoyed 4 advancing days 
in a row, with volume increasing the last two days.  Aggressive 
traders may want to use an entry above today's high of $34.43 as 
a point for a long position in this stock.




---

Wipro Ltd - WIT - close: 31.73 change: -1.99

WIT declined today on sharp volume, finishing the day below both
its 50-dma and 200-dma. If WIT moves back below $31.00, it falls 
into a region of multiple gaps, and the stock is likely to 
decline quickly.  Shorting the stock at $30.99, or lower, would 
be the most logical strategy for WIT.




---

Westcorp - WES - close: 29.20 change: -0.82

Westcorp has a short-term pattern very similar to WIT, discussed 
above.  WES has a fast move region from $28.20 to $23.85.  
Traders who elect to short this stock would likely want to take a 
position once WES trades below today's low of $28.71.  A buy stop 
at $29.01 would be prudent.




---

Autoliv Inc. - ALV - close: 23.70 change: +0.70

ALV has just started to break out of a two-month consolidation. 
It gapped up today on a sharp volume spike, closing a few cents 
above its 50-dama. We think this is the beginning of multi-week, 
or maybe multi-month, advance. We'd take a long position once ALV 
moves above today high of $23.79.  A sell-stop, placed below 
support at $22.68 should be used with such a trade.






===============
Play-of-the-Day  (New BULLISH play)
===============

InVision Technologies - INVN - cls: 25.01 chg: +2.30 stop: *text*

Company Description:
InVision manufactures FAA-certified Explosive Detection Systems 
(EDS) used to scan airline passenger baggage for bombs and 
explosives.  InVision was the first--and is only one of two--
manufacturers whose instruments and technology have been 
certified by the FAA for this purpose.

Why We Like It:
InVision seems to be a company for our times--unfortunately.  The 
company has been in the news recently, as private and 
governmental officials seek technologies, which can help, make 
airline traffic safe from potential terrorist attacks.  
Fundamentally, the company presents some impressive statistics.  
INVN earnings are expected to grow 35% a year, long term; for 
2002, the company is expected to generate $1.87 per share.  With 
an almost laughablely low PE of 13, INVN sports a PEG (PE/growth 
rate) of .37.  When compared to the S&P 500's PEG of 1.68, INVN 
appears ridiculously undervalued--but we do need to remember that 
this is a very small cap company. In the past two days, INVN has 
seen its share price spike higher as worries over new terrorist 
attacks on US soil increase, and as funding for airport bomb 
detection systems have received renewed financial support from 
the Federal Aviation Administration (FAA).

But our interest in InVision is based on more than the company's 
attractive fundamental picture, and news visibility.  We are 
greatly attracted to the impressive technical formation now 
emerging on INVN's price chart. In the April 24th-April 27th time 
period, INVN's stock plummeted on concerns that President Bush 
would delay or dissolve efforts to use bomb detection systems in 
US airports.  The sharp decline produced a "fast move region" 
which runs from about $25.10 to $29.00.  With volume and prices 
spiking aggressively higher over the last three trading sessions, 
we feel that bulls may push INVN back into its fast move region, 
producing a very quick advance in the stock toward the $29.00 
area.  This stock could be a strong mover, so don't discount the 
possibility of it reaching $30.00; traders will just have to be 
nimble when the stock reaches the $29.00+ area.  All of our 
technical indicators, on both daily and weekly charts, have 
turned sharply upward with the recent rebound experienced in the 
stock over the last few days.  The stock closed today above its 
200 day moving average for the first time since April 25th.
Our strategy will be to take a long position in INVN as its price 
moves above today's high of $25.20; as long as it trades under 
this level, however, this play will remain inactive.  Once it has 
been triggered, though, we'll use a sell stop placed just beneath 
today's low of $23.08.

Picked on May xth at   $xx.xx <- see text
Gain since picked:      +0.00
Earnings Date        04/23/02 (confirmed)
 





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




PremierInvestor.net Newsletter                Wednesday 05-22-2002
                                                   section 2 of 2
Copyright  2001, All rights reserved.
Redistribution in any form is strictly prohibited.

The entire newsletter is best viewed in COURIER 10 for alignment
=================================================================
To view this email newsletter in HTML format with imbedded
charts and graphs, click here:
http://www.PremierInvestor.net/htmlemail/e22b_2.asp
=================================================================

In section two:
  
Net Bulls
  New Bearish Plays:     TBH
  Triggered Short Play:  BRCD
  Play Comments:         SNE

Active Trader Non-Tech Stocks 
  Closed Bullish Plays:  SGR, SII, TBL

High Risk/Reward
  New Bullish Plays:     INVN
  Closed Bullish Plays:  CCK

Split Trader
  Stock Splits
                         PENN: 2-for-1 split announcement
                         THC:  3-for-2 split announcement

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



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

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

  ----------------
  New Bearish Play
  ----------------

Telecom Brasil - TBH - close: 27.70 change: -1.25 stop: 30.01

Company Description:
Telebras HOLDRs operated as a telecommunication company until 
5/98, whereby it spun-off 12 new companies. TBH controlling 
shareholders have announced its intention to liquidate and 
dissolve the Company. For the comparable FY ended 12/31/00, the 
Company reported no revenues. Net income applicable to U.S. GAAP 
fell 82% to CR$2M. Results reflect the absence of any revenue 
generating operation, higher operating expenses, and lower 
interest income.

Why We Like It:
You may already be familiar with TBH.  We recently profiled the 
stock as a short play, but we were stopped out for a 4.9% gain on 
May 15th after a rallying NASDAQ buoyed the telecom sector.  
We're returning TBH to the Play List tonight after shares rolled 
over from the $30 level.  Today's 4.3% decline indicates that 
despite the brief short-covering rally, the bears are still 
firmly in control.  The bearish MACD and daily stochastics (both 
weekly and daily) lead us to believe that shares will break under 
the relative low of $26.35.  We'll initially be targeting the $25 
level, which is the location of the 81% retracement level from 
the September lows to January highs, not to mention psychological 
support.  A move to $22 or even $20 isn't out of the question if 
the telecom sector accelerates its downward slide.  Speaking of 
sector strength, the IXTCX (North American Telecom Index) has 
displayed little in the way of bullish behavior.  We suspect that 
a failure to crack resistance at 145 will lead to another test of 
the 130 level.  Fellow telecom ADR's FTE and NOK also look like 
good shorts, which bodes well for TBH bears.  The sector should 
continue its decline tomorrow, following this evening's news that 
Q's corporate debt had been downgraded to "junk" status by 
Standard and Poor's.  As long as news like this keeps plaguing 
the sector, TBH will be hard-pressed to move above its relative 
highs.  We're starting this play with a stop at $30.01, above 
both near-term and psychological resistance.  Less risk-averse 
traders may want to place their stops at $29.66, just above last 
Friday's high.

Picked on May 22nd at $27.70 
Gain since picked:     +0.00
Earnings Date            N/A
 




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

Triggered Short Plays
---------------------

Brocade - BRCD - close: 20.14 change: +0.29 stop: 21.26

BRCD gapped slightly lower this morning and quickly hit our 
trigger price of $19.35.  The stock then rallied above the $20 
level, but was quickly met with more selling.  Now that we've 
been triggered, our stop is set at $21.26.  If shares head higher 
tomorrow we'd expect a rollover near the $21 level.





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

Sony Corp. - SNE - close: 59.56 change: +1.51 stop: 55.50

SNE tacked on another 2.6% today and closed at levels not seen 
since last summer.  Premier Investor is currently up 12% on this 
play, and conservative traders may want to consider taking their 
gains off the table at current levels.  Given the bullish 
oscillators and strong uptrend, we're anticipating a move higher.  
However, we're going to set an official profit-target of $62.49. 
This would be a gain of 17.8% from our original entry price.  
More aggressive types may want to target a move to the $65 level.






=================================================================
Active Trader/Non-tech Stocks (AT) section
=================================================================

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

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

Shaw Group - SGR - cls: 33.36 chg: -1.43 stop: *see text* 

We wanted to assume a long position in SGR at $35.75 (or above). 
The shares nearly reached our trigger point when it traded up to 
$35.70 in Monday's session, but the stock subsequently moved 
lower by more than $2.00.  At this point we have elected to 
remove this play, which has not been triggered, from our play 
list.  We think SGR can still be an attractive trade in the 
future, but only after its current pullback has concluded. The 
stock may need to consolidate down to the $30.40 support region 
before it is ready for another move upward.  We would not 
encourage any positions in SGR until we have re-evaluated.

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




---

Smith Intl - SII - close: 73.25 change: +1.67 stop: 71.29

SII finished today's session with a 2.3% gain, but not before 
gapping lower this morning.  Shares dropped below our stop-loss 
at $71.29, thus closing this play as of the opening price of 
$70.82.  Despite being stopped out for a small loss, we continue 
to like SII and the oil service sector for bullish plays.  The 
OSX.X oil service index bounced off its 50-dma today (at 103) and 
the index may make another run for the 112 level.  SII should 
have underlying support at the $70 level and is still in a 
longer-term uptrend.  Given enough time (and a strong OSX), 
shares could reach the $80 level, near the top of its ascending 
channel. New positions in SII are discouraged until it becomes 
clear that SII is going to find good support--whether at $70 or 
some other level--for its next upward phase.

Picked on April 26th at $71.29 
Gain since picked:       -0.47
Earnings Date         05/02/02 (confirmed)




---

Timberland Company - TBL - cls: 39.81 chg: -0.70 stop: 39.95

Retailers have simply had a rough week.  While earnings from TGT 
and HD were better than expected when reported earlier this week, 
the guidance offered to analysts was unimpressive.  As a result, 
retailers across the board were roughed up on Monday and Tuesday.  
Then, today, Gap Stores (GPS) announced the surprising 
resignation of the company's highly respected CEO.  Sellers 
dumped GPS, and it is likely that a "dump-the-baby-out-with-the-
bath-water" mentality explains the reason other retailers like 
Timberland were cut down as well.  Our stop at $39.95 was hit 
today, closing this trade for a 4.6% loss.  The sharp weakness in 
the stock should discourage any positions in this stock at this 
time.

Picked on May 3rd at $41.89 
Gain since picked:    -1.94
Earnings Date      04/18/02 (confirmed)






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

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

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

InVision Technologies - INVN - cls: 25.01 chg: +2.30 stop: *text*

Company Description:
InVision manufactures FAA-certified Explosive Detection Systems 
(EDS) used to scan airline passenger baggage for bombs and 
explosives.  InVision was the first--and is only one of two--
manufacturers whose instruments and technology have been 
certified by the FAA for this purpose.

Why We Like It:
InVision seems to be a company for our times--unfortunately.  The 
company has been in the news recently, as private and 
governmental officials seek technologies, which can help, make 
airline traffic safe from potential terrorist attacks.  
Fundamentally, the company presents some impressive statistics.  
INVN earnings are expected to grow 35% a year, long term; for 
2002, the company is expected to generate $1.87 per share.  With 
an almost laughablely low PE of 13, INVN sports a PEG (PE/growth 
rate) of .37.  When compared to the S&P 500's PEG of 1.68, INVN 
appears ridiculously undervalued--but we do need to remember that 
this is a very small cap company. In the past two days, INVN has 
seen its share price spike higher as worries over new terrorist 
attacks on US soil increase, and as funding for airport bomb 
detection systems have received renewed financial support from 
the Federal Aviation Administration (FAA).

But our interest in InVision is based on more than the company's 
attractive fundamental picture, and news visibility.  We are 
greatly attracted to the impressive technical formation now 
emerging on INVN's price chart. In the April 24th-April 27th time 
period, INVN's stock plummeted on concerns that President Bush 
would delay or dissolve efforts to use bomb detection systems in 
US airports.  The sharp decline produced a "fast move region" 
which runs from about $25.10 to $29.00.  With volume and prices 
spiking aggressively higher over the last three trading sessions, 
we feel that bulls may push INVN back into its fast move region, 
producing a very quick advance in the stock toward the $29.00 
area.  This stock could be a strong mover, so don't discount the 
possibility of it reaching $30.00; traders will just have to be 
nimble when the stock reaches the $29.00+ area.  All of our 
technical indicators, on both daily and weekly charts, have 
turned sharply upward with the recent rebound experienced in the 
stock over the last few days.  The stock closed today above its 
200 day moving average for the first time since April 25th.
Our strategy will be to take a long position in INVN as its price 
moves above today's high of $25.20; as long as it trades under 
this level, however, this play will remain inactive.  Once it has 
been triggered, though, we'll use a sell stop placed just beneath 
today's low of $23.08.

Picked on May xth at   $xx.xx <- see text
Gain since picked:      +0.00
Earnings Date        04/23/02 (confirmed)
 




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

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

Crown Cork Seal - CCK - close: 7.84 change: -0.46 stop: *text*

We gave CCK plenty of leeway, letting shares fall far below our 
trigger at $10.31.  We were even willing to move the trigger 
lower in order to capture a bounce from the $8 level.  Those 
plans have been discarded after today's session.  CCK lost 
another 5.5%, closed under $8.00, and fell below its 38% 
retracement level (December lows to April highs). The next 
possible level of support is the 50% retracement at $6.78.  But 
with the way the stock keeps plummeting, it's hard to tell when 
the bears will finally relent.

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





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

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

Penn National sets 2-for-1 stock split

Before the market opened this morning, Penn National Gaming, Inc. 
(NASDAQ: PENN) announced that its Board of Directors had 
authorized a 2-for-1 stock split.

The split will be distributed on June 25, 2002 to stockholders of 
record on June 4, 2002.

PENN last split in 1996; also a 2-for-1 offering.  The stock has 
risen dramatically over the past year and has more than doubled 
from its September lows. 

Shares closed at $31.80 on Tuesday.  For a current quote,
click here:
http://user.financialcontent.com/pin1/quote.cgi?account=pin1&ticker=PENN


About the company
Penn National Gaming owns and operates Charles Town Races in 
Charles Town, West Virginia, which presently features 2,000 gaming 
machines; two Mississippi casinos, the Casino Magic hotel, casino, 
golf resort and marina in Bay St. Louis and the Boomtown Biloxi 
casino in Biloxi; the Casino Rouge, a riverboat gaming facility in 
Baton Rouge, Louisiana and the Bullwhackers properties in Black 
Hawk, Colorado. (source: company press release) 

--- 

Tenet Healthcare announces 3-for-2 stock split

Shortly after the closing bell today, Tenet Healthcare Corp (NYSE: 
THC) announced that its Board of Directors had authorized a 3-for-
2 stock split.

The split will take the form of a 50% stock dividend and will be 
distributed on June 28, 2002 to shareholders of record on June 12, 
2002.

THC has not split since 1991.  Shares have traded higher in recent 
months, mirroring bullishness in the broader healthcare sector (as 
gauged by the HMO.X health provider index).  The stock has gained 
20% YTD.

Shares closed at $70.56 on Wednesday. For a current quote, click here:

http://user.financialcontent.com/pin1/quote.cgi?account=pin1&ticker=THC

About the company
Tenet Healthcare, through its subsidiaries, owns and operates 116 
acute care hospitals with 28,677 beds and numerous related health 
care services. Its hospitals and subsidiaries employ approximately 
113,750 people serving communities in 17 states. (source: company 
press release)


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

HAL     Halliburton Co             18.00     +0.57
AHC     Amerada Hess Corp          84.21     +0.92

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

WMB     Williams Companies Inc     17.71     +1.71
TRDO    Intrado Inc                18.98     +1.27
POP     Pope & Talbot Inc          16.22     +1.98
RGLD    Royal Gold Inc             15.48     +1.32

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

SNE     Sony Corp                  59.56     +1.51
DCX     DiamlerChrysler AG         50.60     +1.63
GSB     Golden State Bancorp       39.34     +2.84
TEX     Terex Corp                 25.47     +1.47
THO     Thor Industries            66.98     +3.51
KROL    Kroll Inc                  21.60     +1.25
BWS     Brown Shoe Co Inc          22.25     +1.60

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

SAP     SAP AG ADS                 26.06     -1.83
BAX     Baxter Intl                51.91     -1.11
XL      XL Capital Ltd             83.75     -2.20
TBH     Telecom Brazil Sa          27.70     -1.25
WIT     Wipro Ltd ADS              31.73     -1.99
BGEN    Biogen Inc                 40.36     -1.12

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

COH     Coach Inc                  54.39     -2.51
CW      Curtiss Wright Corp        73.00     -1.40
JNY     Jones Apparel Group Inc    39.65     -0.55
SGR     The Shaw Group Inc         33.36     -1.43




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