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Daily Newsletter, Monday, 06/03/2002

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PremierInvestor.net Newsletter                 Monday 06-03-2002
                                                  section 1 of 2
Copyright  2001, All rights reserved.
Redistribution in any form is strictly prohibited.

The entire newsletter is best viewed in COURIER 10 for alignment
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In section one:

Market Wrap:      Lack of Confidence
Watch List:       AIG, CHKP, NWAC, OHP, SEPR, and more...
Play of the Day:  Networking Not Working

******************************************************************
MARKET WRAP  (view in courier font for table alignment)
******************************************************************
      06-03-2002          High     Low     Volume Advance/Decline
DJIA     9709.79 -215.46  9986.49  9704.18  1.31 bln    877/2344
NASDAQ   1562.56 - 53.17  1621.50  1561.17  1.62 bln    896/2583
S&P 100   514.74 - 14.46   531.45   514.08   Totals    1773/4932
S&P 500  1040.68 - 26.46  1070.74  11039.90
RUS 2000  474.39 - 13.08   487.59   474.23
DJ TRANS 2689.83 - 59.43  2749.19  2689.54
VIX        25.28 +  2.48   25.35     22.51
VXN        47.71 +  1.76   47.71     45.85
TRIN        2.69
PUT/CALL    0.93
******************************************************************

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


CONFIDENCE IN CORPORATE AMERICA AND WORLD EVENTS CONSPIRE AGAINST MARKET

Dow 9775-9800 was an important support region for the market.  I 
lost my bullish perspective today when the Dow crashed through 
it.  

I've been cautiously bullish on the market recently--that is no 
secret.  My reasons for this positive perspective had been both 
technical and fundamental.  But the last two weeks have brought 
with them a notable deterioration in the technical aspects of the 
Dow, SPX and Nasdaq Composite. Much of this deterioration has 
resulted not from a shift in fundamentals, or the health of the 
US economy; in fact, both continue to improve.  What has changed 
substantially, though, is the inability of investors to re-
establish any kind of serious confidence in corporate America, or  
regain a sense of security after the events of September 11th.  
These now seem to be the thieves that are rapidly stealing the 
health from the US stock market.  

As I explain below, today's break below Dow 9775-9800 has now 
turned me bearish.  

Today's Market:  

US ECONOMY CONTINUES TO IMPROVE, BUT........   Premier Investor's 
Senior Market Technician, Jeff Bailey, reported today--quite 
eloquently, I might add--on this morning's economic reports that 
showed business conditions improving.  I'm not going to try to 
improve on his succinct remarks; here are the highlights:

The ISM index of Business Conditions rose to 55.7% in May 
after sinking to 53.9% in April.  This was above 
economists' forecast of 54.4%.  Interpretation: business 
conditions are improving.  Better business conditions mean 
better corporate earnings.

Today's ISM reading is the highest since February of 2001. 
 Interpretation:  economic growth is trending higher.

The prices paid component jumped to 63.0% after a 60.3% 
reading in April.  Interpretation: If you are a dyed-in-
the-wool bear, you'll smell inflation.  Me?  I just don't 
buy it.

One of the points I've made in recent Market Wraps is that an 
improving economy will help drive profits--and eventually stock 
prices--higher. TV advertisements were reported today to be ahead 
of expectations and this is, again, another bit of anecdotal 
evidence telling us that things are getting better in the 
economy. Sure, we did have some less than enthusiastic 
information from the auto sector.  Both Ford and GM announced 
that May sales had fallen (11.5% and 12%, respectively).  But the 
flip side of GM's one-month drop in sales is that they have upped 
their EPS guidance for both their second quarter and all of 2002.  
And, don't forget that we told you just a week ago that all the 
major automakers have recently increased the number of shifts in 
order to meet increasing demand.

So what gives with today's good ISM & advertising reports--and 
enhanced guidance from GM?  Why the patently lousy market action? 

In a nut shell, investors remain wary of 1) internal corporate 
shenanigans, and out right implosions, like that recently 
perfected by the likes of Enron, Arthur Anderson and Tyco, and 2) 
the shaky nature of world stability in general.  

FEAR, NOT GREED, NOW THE DOMINANT MARKET PSYCHOLOGY        Today, 
both of these potential problems grabbed the market and shook it 
like a mongoose might a troublesome cobra.  This morning we heard 
that the CEO of Tyco resigned amid a recently announced legal 
investigation.  Not much of a confidence builder there; that's 
for sure.  Although corporate officials at Williams Companies 
strenuously denied a weekend article that they had manipulated 
energy prices in California, investors sold first and asked 
questions later.  The stock, which PI analyst--and apparent 
psychic--Kent Barton brilliantly added to our short play list 
this weekend, fell like a redwood cracked by lightning.  Then, 
when reports surfaced that the treasurer of energy company El 
Paso had committed suicide this weekend, investors became even 
more agitated....and pessimistic.  It's easy to quickly believe, 
I suppose, that corporate America is going to hell in a hand 
basket when executives are involved with such unsavory notions as 
suicide.  Even though this tragic event was reportedly the result 
of severe ill health--and not corporate wrong doing as the shoot-
first-ask-questions-later crowd assumed--investors were just too 
stunned to buy stocks with their confidence so shaken.

Mix in last week's continuing concerns about additional terrorist 
attacks on US soil, and the prospect that the India-Pakistan 
tussle could turn into an out-and-out nuclear catastrophe...well, 
you get the point.  This market is no longer guided by good old 
American greed; heck, it does not even seem guided by the idea of 
making a quick profit.  Fear is the ruler of the day, pure and 
simple. 

The bottom line for me is this:  fundamentals and technicals are 
clearly taking a back seat to emotionally-charged issues over 
which common sense is increasingly holding little influence.  
Enron is hardly the poster child for the US stock market; and 
behind-the-scenes high-level international efforts to defuse the 
India-Pakistan conflict are probably as pressing as any seen in 
modern history.  But as long as investors focus on these--and not 
the hard core, dollars and cents (sense?) realities of the US 
economy--well, it's pretty obvious we're going to be faced with 
an extremely difficult investing environment.  It takes buyers to 
push the market higher, and right now their conspicuous absence 
seems to be on the verge of becoming a serious problem for US 
equities.

Getting Ready For Tuesday, June 4th.

There's not much to really think about for tomorrow.  The 
earnings season is over--nothing significant to catch our 
attention here.  Economically, the scenery is equally devoid of 
any reports on Tuesday.  The most important economic reports are 
now scheduled for Friday, when the jobs report will be released. 
Tomorrow is likely to be very much like today; investors will be 
pre-occupied with the potential of world disorder and 
catastrophe, as well as that which might be slinking through some 
as-yet unknown corporate board room.

Here are the key technical levels to watch on Tuesday, and over 
the next few days:

The Dow Jones Industrial Average (INDU) Closed at 9710: The last 
time I offered support and resistance levels on the markets, I 
felt the Dow should be able to remain above 9950.  I was 
obviously wrong.  The Dow's failure to hold another key support 
today, 9775-9800, has rather unsettling implications now, I 
believe.  Not only did the Dow finish today's session below the 
200-dma, but this key 9775-9800 support region represented the 
78.6% Fibonacci retracement of the Dow's January 27th 2002 to 
March 10th 2002 advance.  My general experience has been that the 
inability of an index to hold the 78.6% retracement level 
typically results in a more significant decline to the 127% or 
161.8% retracements.  What does this mean?  For the Dow we now 
need to begin looking at the 9220 (127%) and 8820 (161.8%) 
levels.   To add more fuel to this negative fire, PI readers 
should be aware that the Dow has now formed an awkward head and 
shoulders top on its weekly chart; this does not bode well given 
today's sharp late day weakness.

S&P 500 (SPX) Closed at 1040: Following the lead of the Dow, the 
SPX now seems to be headed to a minimum of the 1017 level (161.8% 
retracement of the January-March advance).  If it cannot hold 
this region, an additional 100-point drop would be likely, to 
910.  Such a decline would not occur quickly, taking perhaps 
several weeks to accomplish.

Nasdaq Composite (COMPX) Closed at 1562: The Nasdaq Composite is 
presenting a troublesome technical pattern.  As of today, it has 
again declined to the 78.6% Fibonacci retracement (1563) of its 
Sept. 2001 - Jan. 2002 advance.  I would generally expect such a 
decline to give rise to an extended and serious rebound; this 
was, in fact, my view of the last few weeks.  When I think about 
the weak shape of the Dow, though, I have to wonder if the Nasdaq 
can really meet the challenge of rebounding off this retracement 
level.  If it begins to decidedly break below 1563 in coming 
days, I can only assume that the next stop will be at the 127% 
retracement (1247) or the 161% level (1020).  Both are very ugly 
numbers. Very.

The Russell 2000 Index (RUT) Closed at 474:   I said recently 
that RUT 484 and 473 were likely support regions for this index.  
The index is sitting right at the 473 region--and, literally, on 
top of its 200-dma.  If the 473 support/retracement is broken, I 
have to assume that either the 61.8% retracement (of the Sept. 
2001 to April 2002 advance), which is 433, or the 78.6% 
retracement (409) will be the point at which the Russell attempts 
to find a serious rebound point.  Neither are particularly 
inspiring.

Looking at Key Market Sectors and Indexes

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.  Tonight we take another look at 
the SOX, BTK and VIX.

The Semiconductor Index (SOX) Closed at 451: The SOX fell off a 
cliff today, dropping about 6%.  Unless we see this index 
immediately rebound--and I mean in the next two or three days-- 
closing back above at least 477, the news will not be good for 
this market-leading sector.  Today's break of the 455 support 
region is suggesting that the next stop for the SOX will be at 
407--the 78.6% Fibonacci retracement of its Sept. 2001 to March 
2002 advance.   

The Biotech Index (BTK) Closed at 381:  A couple of weeks ago 
there seemed to be some hope for the BTK, when Biogen received 
FDA approval to produce a new consumer health medication.  That 
news energized the BTK for a few days, but the index has simply 
disintegrated since then.  My best guess?  Look for the index to 
now trade down to 359-365.  The index is on the verge of a 
considerable long-term breakdown, and it will be critical for the 
BTK to rebound forcefully at this level.

The Market Volatility Index (VIX) Closed at 25:   The VIX is a 
contrarian indicator that helps us anticipate turning points in 
the stock market.  When it trades at low levels--near 19 or 20--
it signals a complacency on the part of investors that can 
frequently give rise to a decline in the stock market as the VIX 
then rises.  At higher levels--typically 35 and above--the VIX 
signals investor fear...and, as a contrary indicator, portends 
the point at which the market may enjoy a sharp rebound.  
Tonight, the VIX finished at 25, and is pointed decidedly higher-
-bearish for the market. The VIX is likely to go quite a bit 
higher, and the market lower, before it gives us a positive, 
bullish signal.  

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


American Intl. Group - AIG - close: 64.55 change: -2.42

WHAT TO WATCH: AIG hit a new 52 week low today, and the stock has 
moved into a longer term fast move region which runs from $65.50 
to $58.08.  This means, simply, that AIG has very little support 
until it reaches the $58.00 region.  The stock has been declining 
in recent days on increasing volume, and this is frequently a 
portend of greater weakness to come.  Brave traders may want to 
short at current levels, placing a buy stop above near-by 
resistance at about $68.00.  Otherwise, a weak rebound to $66.50 
is likely to fail, and shorts could be entertained at this level.




---

Check Point Software - CHKP - close: 15.60 change: -0.66

WHAT TO WATCH: Although CHKP has lost almost a quarter of its 
value in the past two weeks, the bears show no signs of letting 
up.  Shares were hit for a 4% loss today and dropped to a new 
multi-year low after a downgrade from UBS Warburg.   With the 
MACD looking bearish and the GSO.X software index threatening to 
break below its September low, CHKP looks vulnerable to another 
round of heavy selling.  Traders looking to take advantage of a 
breakdown should watch for CHKP to move under $15.50.  More 
cautious types could wait for a violation of psychological 
support at $15.00.




---

Northwest Airlines - NWAC - close: 15.78 change: -0.94

WHAT TO WATCH: The price of oil has been heading lower in recent 
weeks, but that's done little to help airline stocks.  The XAL.X 
(Airline Index) is suffering from a multi-month downdraft and the 
technical picture is worsening.  The index traded lower by 3.5% 
today, hitting levels not seen since November.  There are several 
possible shorts in the sector (CAL and DAL come to mind), but 
NWAC makes the biggest blip on our radar screen.  Daily 
stochastics (5,3,3) have just begun to fall from oversold levels 
while the MACD is beginning to curl lower.  The p-n-f chart is 
bearish as well, with shares recently breaking under bullish 
support.  The fact that NWAC isn't a listed stock doesn't help 
the bulls' cause either.




---

Oxford Health - OHP - close: 47.98 change: -0.22

OHP begrudgingly pulled back by 22 cents today after trading to 
an all-time high of $48.63.  The stock looked like it wanted to 
go higher, but was unable to shake the broader market weakness.  
Nonetheless, the relative strength is quite impressive and we 
think OHP is well positioned for a test of the $50 level.  If the 
market stages a relief rally we wouldn't be surprised to see a 
near-term move to $55, near the top of the stock's ascending 
regression channel.  Entries can be evaluated on a move above 
today's high.  P-n-f chartists may want to note that a trade at 
$49 will create a double-top buy signal.
 



---

Sepracor Inc. - SEPR - close: 10.79 change: -0.92

WHAT TO WATCH: SEPR appears to be accelerating to the downside.  
Leading the biotech sector lower today, shares got whacked for a 
7.8% loss and closed at multi-year lows.  Although short-term 
traders may be hesitant to short SEPR after today's hefty 
decline, we suspect more selling may be on the horizon.  The 
point-and-figure chart is displaying a newly minted triple-bottom 
sell signal and the MACD is beginning to flatten out below the 
baseline.  Although the psychologically important $10 level may 
provide support, a continued biotech selloff could have the 
remaining SEPR bulls running for cover.  Aggressive traders could 
target short entries at current levels.  




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

America Online - AOL - close: 18.09 change: -0.61
 
The recent sideways trading action has brought AOL to the top of 
its descending regression channel.  With the stock displaying 
little in the way of bullishness, a retest of the 52-week lows 
near $17 seems likely.  Given enough time, AOL could even drop to 
the channel's midline at $16.  




--- 

Genentech Inc - DNA - close: 34.15 change: -1.35

DNA broke below the $35 support level today, dropping to a near-
term low and producing a double-bottom p-n-f breakdown.  
Additionally, a bearish MACD crossover looks imminent.  We'd be 
looking for DNA to retest the $30-$31 level.




--- 

Maxwell Technologies - MXWL - close: 12.25 change: +0.43
 
MXWL began a significant breakout on May 1st, eventually 
advancing from about $9.50 to over $14.00 a week later.  Since 
then the stock has been in a not unexpected consolidation. Today, 
JP Morgan upgraded the stock, and it was able to make nice 
headway on a day when the broader markets, well, basically, stunk 
like week-old shrimp stuffed under a mattress.  The market--
particularly the Nasdaq--could be pretty rocky in coming days.  
If it can start a rebound, though, MXWL could be one of those 
stocks, which advances rapidly.  The stock remains attractive as 
long as it is above $12.00.




--- 

Merrill Lynch - MER - close: 38.76 change: -1.95

MER crashed through support at $40 and closed at multi-month lows 
today.  Although bulls may point out that the stock looks near-
term oversold, the bearish MACD and double-bottom p-n-f breakdown 
suggest an eventual retest of the September lows ($33.50.)  A 
break under today's low of $38.63 would offer possible action 
point to go short.





===============
Play-of-the-day (BEARISH)
===============

Network Associates - NET - close: 18.32 change: -1.03 stop: 22.01

Company Description:
With headquarters in Santa Clara, Calif., Network Associates,
Inc. is a leading supplier of network security and availability
solutions. Network Associates is comprised of three product
groups: McAfee Security, delivering world-class anti-virus and
security products; Sniffer Technologies, a leader in network
availability and system security; and Magic Solutions, a leader
in innovative service management solutions. (source: company
press release)




- ORIGINAL WRITE UP: May 31st, 2002 -

Why We Like It:
It's been a tough year for shareholders of NET (previous stock
symbol was NETA).  After the company announced that they had
discovered some "accounting inaccuracies" the market corrected
some inaccuracies regarding NET's share price and it fell
painfully.  Since that time the company has recently announced
the results of its internal probe and they will be restating
1998, 1999 and 2000 financial results.  While they're probably
happy to try and get this behind them NET is already under
investigation by the SEC for accounting during fiscal 2000.  The
results of the internal probe had brokers coming out to upgrade
the stock and shares did find some strength but only enough to
reach the top of its descending channel but more on this in a
moment.  Some analysts suspect that the internal probe might just
add fuel to the fire for the SEC already looking into the
company.  If nothing else NET is likely to see some hefty
shareholder lawsuits claiming management's false and misleading
statements about the company's financials.  Optimists are hoping
that a new management team can lead the company out of its
current predicament but short-term the investor sentiment, market
climate and technical picture all appear to be against them.
While a few brokers may have been willing to upgrade NET
individually, there has been a couple of damaging sector-wide
downgrades of the software group in the last couple of weeks.
With no expectation for a pick up in IT spending through the rest
of 2002 there are not a lot of reasons to buy NET now.
Furthermore, shares have been trying to breakout through the top
of their descending channel but Friday's action put it below the
psychological $20 level.  On top of this, traders can time their
entries with the roller coaster swings in the MACD and this one
is screaming for a short.  The bottom of the channel looks way
down there around the $12.50 level but we're going to aim for a
move to the $15 area.  We'll start the play with a stop at $22.01
(a little bit over 10%) but we'll inch it down as soon as we see
some confirmation.


- Play-of-the-Day Comments: June 3rd, 2002 -

A gap down this morning set the tone for NET, which traded lower 
for most of the session.  Shares fell sharply with the NASDAQ in 
the final hour of trading and finished at the lows of the day.  
With the NWX.X networking index on the verge of breaking down to 
all-time lows, NET appears to be susceptible to additional heavy 
selling.  More specifically, we'd expect a near-term move to the 
$16 level.  A break below possible whole-number support at $18.00 
could provide an opportunity to consider new entries...Although 
you may first want to wait for the NWX to break below 191.  Note 
that because of the morning gap, our picked price is the opening 
trade of 18.98.

Picked on May 31st at $18.98
Gain since picked:     +0.66
Earnings Date       04/11/02 (confirmed)






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

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

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

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




PremierInvestor.net Newsletter                  Monday 06-03-2002
                                                   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/f03b_2.asp
=================================================================

In section two:

Net Bulls
  Triggered Plays:       CMCSK (bearish)

Active Trader Non-Tech Stocks
  Stop Adjustments:      DCX (bullish)
  Closed Bullish Plays:  CPC, RIG

High Risk/Reward
  Triggered Plays:       WMB (bearish)



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

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

Triggered Plays
---------------

Comcast Corp - CMCSK - close: 27.43 change: -0.73 stop: 30.01

Our trigger for initiating a short position in CMCSK was $27.89 
and today's stinging market weakness put us into this trade.   As 
we said last Friday when we presented this potential play, our 
price target is the $24 level but we expect bulls to put up a 
struggle as it declines to support near the $26 area. Please note 
that we'll now use a stop at $30.01--at least until lower prices 
are experienced. 

Picked on June 3rd at 27.89
Gain since picked:    +0.46
Earnings Date       05/01/02 (confirmed)






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

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

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

DaimlerChrysler - DCX - cls: 48.50 chg: -0.88 stop: 45.96 *new*

GM upped its guidance for both its second quarter, 2002 and for 
the full year, telling analysts that higher earnings than 
previously forecast are now expected.  Had the market been less 
turbulent today, such mid-quarter guidance from one of 
DaimlerChrysler's competitors would have likely helped DCX stock 
price.  But when the Dow drops 215 points, and the Nasdaq 
Composite falls over 3%, it's a bit hard for even good stocks--or 
good news--to make much headway.  We are a bit concerned with the 
deteriorating technical health of the Dow, and have elected to 
increase our sell stop for DCX to $45.96. This level is about 
$0.70 below DCX's rising 50-dma and the level to which we think 
the stock might pullback after its May advance: the 61.8% 
Fibonacci retracement, which presently sits at $46.10.  

Picked on May 6th at $46.50 
Gain since picked:    +2.00
Earnings Date       02/20/02 (confirmed)





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

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

Central Parking Corp - CPC - cls: 24.60 chg: +0.70 stop: 23.49

We initiated this play just a couple of days ago. With upgrades 
from Bear Stearns on April 30th, and JMP Securities on May 31st, 
we felt that fundamentals and technicals were functioning in 
unison on this attractive long position.  But while a rising tide 
can lift all boats, a tsunami can sink them even quicker, and 
that's what occurred today.   Sharp weakness in the stock market--
with the Dow down over 215 points--pushed CPC down to our sell 
stop of $23.49 this afternoon, and our long position was closed 
with a 3.6% loss. CPC closed on its lows today, decisively under 
its 50-dma; we are glad that our position was protected with a 
lower-risk sell stop just a few percent away from our entry point.

Picked on May 31st at $24.60
Change since picked:   -0.91
Earnings Date       04/29/02 (confirmed)





---

Transocean Inc. - RIG - cls: 35.87 chg: -2.30 stop: 36.84

Weakness in the big Dow stocks, and considerable weakness in 
energy-related stocks like Williams Companies and El Paso, sent 
the oil and energy indexes tumbling like the Flying Rolando 
Brothers today.  The Oil Index (XOI) dropped 1.5%, while the Oil 
Services Index (OSX), of which RIG is a part, lost over 4%. 
Naturally, it did not help that Dresdner downgraded RIG today 
from an "add" to a "hold."  Investors were in no mood to offer 
energy stocks the benefit of the doubt, and RIG hit our stop 
early in the trading session.  The position was closed with a 6% 
loss.  The weekly technicals on RIG have broken down as a result 
of today's downgrade, and we are not likely to be considering 
this stock again for some time.

Picked on May 23rd at $39.26
Gain since picked:     -2.42
Earnings Date:       4/30/02 (confirmed)






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

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

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

Williams Co. - WMB - close: 10.95 change: -3.25 stop: 13.31 *new*

Following an article in the New York times that Williams Company 
conspired to corner the natural gas market in California and 
drive up prices, WMB did an imitation of Superman leaping off the 
Empire State Building--except without the cape.  A massive sell-
off in the stock ripped nearly $1.7 billion from WMB's market 
capitalization in Monday's trading.  One man's garbage can be 
another man's gold, and that was the case for PI readers today 
with our short position in WMB.  Williams opened at $13.25, or 
$0.43 below our trigger of $13.68.  Although we had planned to 
initiate this trade with a buy stop at $15.51, today's plunge 
requires that we adjust this stop; accordingly, we will use 
$13.31, a level just a few cents above today's high (and open).  
We think that WMB can go much lower, but we would defer any new 
short positions until we have a better idea when, and where, this 
stock may attempt a short term rebound.

Picked on June 3rd at 13.25 
Gain since picked:    +2.30
Earnings Date       4/25/02 (confirmed)






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To stop receiving this PremierInvestor.net Newsletter,
send email to Contact Support
=================================================================
DISCLAIMER
=================================================================

This newsletter is a publication dedicated to the education
of stock traders. The newsletter is an information service
only. The information provided herein is not to be construed
as an offer to buy or sell securities of any kind. The
newsletter picks are not to be considered a recommendation
of any stock but an information resource to aid the investor
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