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Daily Newsletter, Wednesday, 06/05/2002

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PremierInvestor.net Newsletter              Wednesday 06-05-2002
                                                  section 1 of 2
Copyright  2001, All rights reserved.
Redistribution in any form is strictly prohibited.

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In section one:

Market Wrap:      Will Intel's Report Set Stage For Market Move?
Watch List:       Waiting For Godot...Uh, INTC, That Is
Play of the Day:  Bringing Back A Winner


*******************************************************************
MARKET WRAP  (view in courier font for table alignment)
*******************************************************************
        06-05-2002        High      Low     Volume Advance/Decline
DJIA     9796.80 +109.00  9800.00  9688.30 1296 mln   1759/1388
NASDAQ   1595.26 + 17.14  1595.42  1563.55 1413 mln   1662/1734
S&P 100   520.87 +  4.84   521.05   514.84   totals   3421/3122
S&P 500  1049.90 +  9.21  1050.11  1038.84
RUS 2000  475.04 +  1.28   475.71   470.97
DJ TRANS 2680.63 + 17.13  2684.38  2656.49
VIX        24.71 -  1.44    26.28    24.71
VIXN       48.02 -  1.02    49.89    47.97
Put/Call Ratio      0.78
*******************************************************************


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

Will Intel's Report Set Stage For Sharp Market Move?

I have to remain very cautious on the market until key technical 
patterns on the Dow, Nasdaq, and SOX are resolved to the upside--
if they can be.

A few days ago I changed my stance on the market from cautiously 
bullish to a less positive, moderately bearish stance.  As I look 
over some of our important technical charts--Dow, Nasdaq, 
Semiconductor Index, Oil futures--I am struck with the manner in 
which all of these have established patterns that imply that the 
market is on top of a very important inflection point.  Either we 
will see the major averages begin to more consistently trade 
higher in coming days, or we'll be headed for a summer encumbered 
with a potentially nasty market.

So I, too, am going to ride the fence for another day, neither 
overly bullish nor patently bearish.  What I am, though, is this:  
fully aware that a sharp move is on the horizon for the market.  
In a few minutes, we'll look at some of the important charts and 
I'll explain the technical patterns that will either make this a 
summer to remember--or one not unlike some of your bad 
nightmares.

First, let's put today's trading in perspective.

Today's Market:  

My constant theme in recent weeks has been that the US economy is 
improving. Period.  Unfortunately, investors have possessed 
little interest in acknowledging this with their buying behavior.  
Rather, concerns about terrorism, nuclear war and corporate 
improprieties have channeled investment dollars into non-equity 
venues like bonds and money markets.

The Dow started Wednesday off on a positive note, buoyed by the 
simple prospect that the ISM Services Report would show a nice 
improvement in the services sector once the report was released 
at 10 a.m.  Sure enough, the report was better than expected, 
rising to a positive reading of 60.1% in May from April's 55.3%--
exceeding analysts 56% expectations.  When this good economic 
news was combined with pictures of Indian and Pakistani officials 
shaking hands at a global meeting, investors must have figured 
that world annihilation had been put on hold for at least a 
little while, and that, well, we might as well just buy stocks 
rather than sit on our hands! 

By the time the NYSE closed, the Dow had added 108 points, or 
just a little over 1%, to finish at 9797.  The S&P 500 tacked on 
9 points, closing up about .9%, at 1050.  And the tech-heavy 
Nasdaq Composite mirrored the Dow, up about the same 
proportionally, rising 17 points to finish the day at 1595.  

Today's positive trading was inspired by a few other events.  
Although Salomon Smith Barney cut price targets for the airlines, 
it also noted that many were trading near their "doomsday" lows, 
and the firm noted that a few looked attractive from a 
risk/reward perspective:  AMR, UAL, CAL and NWAC. The Airline 
Index (XAL) was actually able to advance today even with the 
lowered price targets. Another reason for the XAL's modest 
advance may have been that Crude Oil futures, which have been 
sliding lower since May 15th, slide lower again today, if just by 
$0.09. 

Perhaps the single most influential news item this afternoon was 
ORCL's statement that its Q4 profit will "at least" meet the 
$0.12 EPS that has been estimated.  Even though Merrill Lynch 
publicly voiced reluctance to accept this perspective, the rest 
of the Street definitely likes hearing that estimates will be 
met, or exceeded; ORCL's remark gave then entire market, and tech 
stocks in particular, a boost into the final hour of trading.

Although Fear is now a very big factor in market psychology--fear 
of another Enron, fear of nuclear confrontation, fear that 
terrorists will defile US territory again--we simply cannot 
forget that the stock market also trades on other factors.  One 
of these is likely to be INTC's guidance report to analysts 
tomorrow afternoon.  

Getting Ready For Thursday, June 6th.

Tomorrow's trading is not likely to be influenced by any economic 
reports.  Only one will be released--Initial Jobless Claims--and 
this pre-market report is likely to do little to push market 
averages one way or the other.  Several more important reports 
will be released Friday, however.  Tomorrow, the most important 
news item will not appear during normal market hours, but will 
emerge about an hour after the close on Thursday.  That's when 
Intel will either re-affirm guidance for coming quarters....or 
say something far less spirited, in which case Friday's trading 
may be a bit volatile--particularly when combined with Friday's 
economic reports:  Nonfarm Payrolls, Unemployment Rate, Hourly 
Earnings and Average Workweek.

As of this evening, analysts expect that INTC's slower-than-
expected sales of microprocessors in the first two months of the 
June quarter will cause INTC to forecast that its second-quarter 
revenue will be somewhere near the midpoint of its previously 
established guidance.  

As we think about tomorrow's trading, then, we can expect that 
intraday rumors about INTC's presentation will sway technology 
stocks.  If INTC subsequently says something more positive than 
expected--and if Friday's economic reports are fairly healthy--we 
could see the markets put in a robust performance as the trading 
week ends.  Of course, one does not need to be a genius to 
recognize that a poor report from Intel, combined with rising 
unemployment and stodgy job growth, could spank the averages hard 
on Friday.

Over the next couple of days, these are the key technical levels 
to watch on the major averages and indexes.

The Dow Jones Industrial Average (INDU) Closed at 9796: I turned 
bearish on the Dow a couple of days ago when it broke the 9775-
9800 support region.  Since then I have been obsessed with trying 
to understand just what the Dow may do in coming days, and I 
think I have finally found some inner peace in the view that I am 
going to present.

There remains no doubt in my mind that the break below 9775-9800 
was not good.  The major technical reason for this:  it 
represented a break in a neckline of a sloppy head and shoulders 
top which has formed on the Dow. This neckline also coincided 
with the 40 week (or 200 day) moving average. I also remain 
concerned that the RSI will break its "support" line, and that 
the MACD has just begun to roll over.  A chart with these 
observations is offered below:





One of the things we need to remember, though, is that head and 
shoulder tops are also actually triangular consolidations that 
break down, not up.  The former is a negative, topping pattern, 
while the latter is a positive consolidation pattern (in this 
case, it formed subsequent to the Dow's Sept. 2001 - March 2002 
advance).  

When I look at the Dow chart as a TRIANGULAR CONSOLIDATION, I 
come away with a different view of what we might expect in coming 
days from the Dow.  I think it is important for all of us to keep 
this view in mind as we approach Thursday's INTC conference with 
analysts.   This second--and potentially positive--view goes like 
this:  the Dow has formed a triangle from which it broke down 
earlier this week.  HOWEVER, the first move out of a triangle 
will sometimes be a head-fake, or false move, that reverses 
sharply within a few days.  This is the situation that has now 
formed on the Dow, and the chart below illustrates this point.  
If the Dow is able to close back within the boundaries of the 
triangle, it implies that the Dow is experiencing a significant 
reversal that may result in a sharp multi-week advance.






The bottom line for the Dow in coming days is this:  until and 
unless the Dow can move back into its triangular consolidation--
that is, move back above 9900--its pattern remains decidedly 
negative.


S&P 500 (SPX) Closed at 1050: I said the other day that the SPX 
seems headed to the 1017 level or lower. That remains my 
perspective UNLESS the Dow is able to effectively reverse, as 
discussed above, and move back into its triangular consolidation.  
For the time being, I believe the pattern on the Dow is far more 
significant than that on the SPX, and I'll look to the Dow for 
guidance here in coming days.

Nasdaq Composite (COMPX) Closed at 1595: The Nasdaq Composite is 
presenting a technical pattern that I consider to be as important 
as the Dow's.  I said the other day that the Composite had 
declined to levels (1563) at which I would normally expect an 
extended advance to begin; the 1563 level coincides with one of 
the two important Fibonacci retracement levels from which 
extended rebounds frequently occur:  61.8% and 78.6% (see chart 
below).  But, the negative double top forming on the Dow also 
troubled me.  With tonight's alternative view of the Dow (see 
above) I am of the view that the Composite has a 50-50 chance of 
embarking on a powerful, and extended, rebound. BUT this rebound 
will only be possible, I believe, if 1) the Dow gives us a 
"reversal" signal by closing back inside its triangle, above 
9900, and 2) the market-leading Semiconductor Index (SOX) is able 
to remain above its key 61.8% retracement level of about 455 (see 
discussion below).




Let me just reiterate one last point on the Nasdaq.  If it begins 
to decidedly break below the 1563 level in coming days, I can 
only assume that the next stop will be at much lower retracement 
levels (127%, or Nasdaq 1247; or the 161% level, Nasdaq 1020).  

The Russell 2000 Index (RUT) Closed at 475:   I said recently 
that RUT 484 and 473 were likely support regions for this index; 
the near term low for the index was 467 a couple of days ago.  
This should be the low for the index IF we see the Nasdaq 
Composite begin to rebound immediately; otherwise, levels near 
RUT 433 and RUT 409 will be next in line.  

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're going to take 
another look at the SOX because of INTC's important analyst 
meeting on Thursday.

The Semiconductor Index (SOX) Closed at 468: The SOX has now 
twice consolidated back down to its key 61.8% retracement of its 
Sept. 2001 - March 2002 advance.  A healthy rebound is possible 
off this level, although the SOX's RSI continues to meander 
beneath its resistance line; we cannot be confident that the SOX 
will have started a serious rebound until we see this indicator 
resistance line broken (see chart below).  If INTC is able to 
impress analysts on Thursday evening, this should send the SOX 
scurrying toward the 500 level.  The implications of such a move 
would be that a new multi-week rebound had likely begun in the 
index IF the weekly RSI confirms the advance with a move back 
above its resistance.  It goes without saying that a move toward 
SOX 500 would probably result in a very positive situation for 
the Dow as well.




      

See you on Friday.

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

AMR Corporation - AMR - close: 20.00 change: +0.35

WHAT TO WATCH: Have you noticed over the last, uh, 3 months how 
airline stocks have gone down almost every day?  The XAL (Airline 
Index) has just crumbled in recent months under the weight of 
potential terrorist activity and higher oil prices, and these 
have stolen both passengers and profits.  But the end may be 
near.  Although Salomon Smith Barney reduced their price targets 
for many stocks in this sector today, they also noted that many 
airlines are now trading at "doomsday" price levels and that they 
could offer an attractive risk/reward appeal.  Technically, the 
XAL traded down to a highly significant Fibonacci retracement 
level this week (the 78.6% level, of its Sept. 2001 - March 2002 
advance). Interpretation: the index will either rally from 
here...or simply collapse.  We are betting on the rally, 
particularly in the wake of lower oil prices, and the prospect 
that these will go even lower in coming weeks.  AMR has one of 
the more attractive technical patterns among airlines, and the 
stock has been forming a bottom since May 10th.  We suspect that 
a move back above today's high ($20.08) will indicate AMR's 
readiness to start a long awaited and multi-week rebound.  A sell 
stop below today's low, $19.50, makes sense in the currently 
tumultuous trading environment.




---

Applied Materials - AMAT - close: 22.35 change: +0.35

WHAT TO WATCH: Much like the CSCO earnings that sparked a short-
covering NASDAQ rally in early-May, INTC's mid-quarter update 
tomorrow evening could have a significant impact on the entire 
tech sector.  We think playing AMAT would be a good way to take 
advantage of a positive reaction to the news.  Having recently 
tested its 200-dma at $21.73, the stock has plenty of room to 
move to the upside.  We also like how the daily stochastics 
(5,3,3 setting) have just emerged from the oversold band.  A 
short-covering rally could quickly propel shares to the $25-$26 
region.  AMAT would probably gap up on positive INTC news, but 
action points could be gauged by watching for a move above last 
Friday's high of $23.20.




---

Broadcom Corp. - BRCM - close: 23.85 change: -0.16

WHAT TO WATCH: On the other hand...If INTC disappoints the Street 
with its mid-quarter update, the SOX (Semiconductor Index) would 
probably revisit support at 450.  A break under this level would 
be extremely bearish, as it would have some calling for a retest 
of the September lows.  If the SOX does break support, we'd 
expect BRCM could lead the group lower.  The stock has been 
trading in a descending regression channel for most of the year 
and is currently signaling a triple-bottom breakdown on the p-n-f 
chart.  Although shares would probably gap lower on bad news from 
INTC, there is plenty of downside room remaining.  A break below 
the relative low of $21.46 would clear the way for a test of the 
$20 level.  Bulls would have a hard time defending this level if 
the SOX broke support at 450, creating the possibility that BRCM 
would drop to its multi-year low of $18.40.




--- 

Citigroup Inc. - C - close: 42.34 change: +0.35

WHAT TO WATCH:  C is in danger of falling to its September lows.  
On two previous declines this year the stock found support near 
$41.50.  However, we think the third time could be the charm for 
bearish traders.  C recently broke under bullish support on the 
p-n-f chart and is currently signaling a bearish-triangle sell 
signal.  This bodes well for a break of support.  Entries can be 
evaluated on a break below $41.50.  This would put C into the 
"fast-move" region dating back to late September, when the stock 
shot higher.  We'd be looking for an eventual test of the $35 
level. 




---

QUALCOMMM - QCOM - close: 32.84 change: +0.40

WHAT TO WATCH: QCOM has presented bearish traders with a possible 
entry point.  In recent weeks the stock held strong versus the 
rest of the telecom sector, but it is now facing resistance in 
the form of a declining 50-dma.  This moving average roughly 
coincides with the top of the descending channel that has 
dictated the stock's trading range since December.  Using a stop 
placed just above the 50-dma ($33.02), entries with a favorable 
risk/reward setup could be initiated at current levels.  We'd be 
looking for a near-term decline to the May lows near $25.  More 
conservative types way want to wait for the MACD and daily 
stochastics to reverse course before taking any bearish 
positions.


 

---

Williams Co. - WMB - close: 9.12 change: -2.09 stop: 13.31 

WHAT TO WATCH: Premier Investor just closed out a short play in 
WMB for a gain of almost 25%...So what's it already doing on the 
Watch List?  Quite simply, the stock is still extremely weak and 
shows no signs of rebounding.  Shares cut through the $10 level 
today like a hot knife through butter after the Federal Energy 
Regulatory Commission (FERC) said it might revoke WMB's power 
trading license.  The selling was heavy, coming on the strongest 
volume since January.  This is just the latest in a long string 
of negative news stories that has cast an Enron-esque pallor on 
the stock.  Technically, WMB looks like it will retest historical 
support between $7.00-$8.00, although at this rate we wouldn't be 
surprised to see shares drop to the $5.00 level.  Aggressive 
traders willing to a short a stock that just lost 18% could take 
bearish positions on a move below today's low of $8.83, while the 
more prudent approach would be to wait for a failed rally at 
$10.00.





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

Hilton Hotels - HLT - close: 13.60 change: +0.08 

HLT has been in a fairly sharp slide for several weeks.  The 
stock currently sits atop a small shelf of support at $13.00-
13.25. If this support breaks, HLT could find itself in a quick 
decline to its next significant support at about $12.00.  Once 
(and if) this decline begins, it might take less than a week for 
HLT to fall to the $12.00 area.
  



---

Maverick Tube - MVK - close: 14.20 change: -0.30 

Maverick Tube sits just pennies above a support region that, if 
broken, could see the stock fall quickly.  A move below $14.11 
should see the stock begin to decline into a fast move region 
that runs down to the $12.35 area.  MVK could try to find support 
at the 200-dma ($12.95), although this longer-term ma would 
likely be ineffective in halting the stock's precipitous fall 
once it is underway.  In either case, though, we think a short 
position in this stock--if it is triggered as mentioned above--
could provide a quick, impressive gain.  Keep your buy stop very 
tight, though.
  



---

Metro One Telecom. - MTON - close: 16.31 change: -0.91 

In recent weeks, MTON declined to a technical retracement point 
where it should normally begin a healthy rebound.  But during the 
last three trading sessions MTON has started to move lower, and 
did so today on very convincing volume.  This may be one of those 
stocks that simply collapses downward.  If shorted, we'd 
encourage a tight stop, perhaps just above near term resistance 
at $16.61. Our expectation is that a new breakdown in this stock-
-if it is going to occur--will do so in the next 2-3 days.
  



---

Novartis - NVS - close: 41.24 change: -0.59 

JNJ-clone Novartis appears to have reached an intermediate term 
peak last week when it hit $43.67.  Since then it has traded 
downward and closed right at the 50-dma today.  In coming weeks, 
it looks like NVS could trade down to the $38.00 level, though 
bears will have to be patient: fire works are not part of this 
stock's constitution. 
  




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

Oxford Health - OHP - close: 48.05 change: +1.30 stop: *text*

Company Description:
Founded in 1984, Oxford Health Plans, Inc. provides health plans 
to employers and individuals in New York, New Jersey and 
Connecticut, through its direct sales force, independent 
insurance agents and brokers. Oxford's services include 
traditional health maintenance organizations, point-of-service 
plans, third party administration of employer-funded benefits 
plans and Medicare plans. (source: company press release)

Why We Like It:
The month of May saw a reversal in the HMO.X healthcare index, 
which had previously been rocketing higher.  Although hefty 
profit-taking would have been understandable after its multi-
month rally, buyers were unwilling to let the index retrace more 
than 19% of those gains.  That retracement level (590) provided 
support for most of the month, while bears defended near-term 
resistance at 620.  The recent action has been quite bullish, 
with the HMO conquering that resistance level and showing 
impressive relative strength versus the weakening broader market.  
If this trend continues it'll just be a matter of time before the 
all-time highs near 640 fall to the wayside.  Premier Investor 
subsribers may recall that we played OHP for a gain of almost 10% 
last March/April.  Tonight we're welcoming OHP back to our Play 
List in hopes that it will offer a repeat performance.  Unlike 
the HMO.X, OHP is actually on the brink of trading to all-time 
highs.  The stock just bounced from the bottom of its ascending 
channel, which probably has the bears feeling awfully hot under 
the collar.  Although the daily stochastics (5,3,3) are looking 
negative, we think OHP will continue to find support at the 
bottom of its channel.  Possible resistance at the $50 level 
could also throw a wrench in our plans.  However, we think that 
continued strength in the healthcare sector will help to power 
OHP to our profit-target region near $55.  P-n-f chartists may 
also be interested to know that a trade at $49 will create a 
double-top buy signal.  Our strategy for entering this play is as 
follows:  We're placing a trigger at $48.64, just above the all-
time high.  If the play is activated we'll use a fairly tight 
stop at $46.48, just below the near-term lows.  More aggressive 
traders (or those with a longer-term approach) may want to place 
their stops under the 50-dma at $44.49.  Sector bullishness can 
be confirmed by waiting for a move above the near-term high at 
628.

Picked on June Xth at $xx.xx <- see text
Change since picked:   +0.00
Earnings Date       05/01/02 (confirmed)
 





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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
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newsletter picks are not to be considered a recommendation
of any stock but an information resource to aid the investor
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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 06-05-2002
                                                   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/f05b_2.asp
=================================================================

In section two:
  
Active Trader Non-Tech Stocks 
  New Bullish Plays:     OHP

High Risk/Reward
  New Bearish Plays:     INMT
  Closed Bearish Plays:  WMB

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)



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

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

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

Oxford Health - OHP - close: 48.05 change: +1.30 stop: *text*

Company Description:
Founded in 1984, Oxford Health Plans, Inc. provides health plans 
to employers and individuals in New York, New Jersey and 
Connecticut, through its direct sales force, independent 
insurance agents and brokers. Oxford's services include 
traditional health maintenance organizations, point-of-service 
plans, third party administration of employer-funded benefits 
plans and Medicare plans. (source: company press release)

Why We Like It:
The month of May saw a reversal in the HMO.X healthcare index, 
which had previously been rocketing higher.  Although hefty 
profit-taking would have been understandable after its multi-
month rally, buyers were unwilling to let the index retrace more 
than 19% of those gains.  That retracement level (590) provided 
support for most of the month, while bears defended near-term 
resistance at 620.  The recent action has been quite bullish, 
with the HMO conquering that resistance level and showing 
impressive relative strength versus the weakening broader market.  
If this trend continues it'll just be a matter of time before the 
all-time highs near 640 fall to the wayside.  Premier Investor 
subsribers may recall that we played OHP for a gain of almost 10% 
last March/April.  Tonight we're welcoming OHP back to our Play 
List in hopes that it will offer a repeat performance.  Unlike 
the HMO.X, OHP is actually on the brink of trading to all-time 
highs.  The stock just bounced from the bottom of its ascending 
channel, which probably has the bears feeling awfully hot under 
the collar.  Although the daily stochastics (5,3,3) are looking 
negative, we think OHP will continue to find support at the 
bottom of its channel.  Possible resistance at the $50 level 
could also throw a wrench in our plans.  However, we think that 
continued strength in the healthcare sector will help to power 
OHP to our profit-target region near $55.  P-n-f chartists may 
also be interested to know that a trade at $49 will create a 
double-top buy signal.  Our strategy for entering this play is as 
follows:  We're placing a trigger at $48.64, just above the all-
time high.  If the play is activated we'll use a fairly tight 
stop at $46.48, just below the near-term lows.  More aggressive 
traders (or those with a longer-term approach) may want to place 
their stops under the 50-dma at $44.49.  Sector bullishness can 
be confirmed by waiting for a move above the near-term high at 
628.

Picked on June Xth at $xx.xx <- see text
Change since picked:   +0.00
Earnings Date       05/01/02 (confirmed)
 



 

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

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

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

Intermet Corp - INMT - cls: 9.51 chg: -0.73 stop: *text*

Company Description:  
Intermet Corporation produces ductile iron, aluminum, magnesium 
and zinc castings primarily for industrial and automotive 
manufacturers. These products are used in vehicle power trains, 
chasses, electronic components, and other safety parts.

Why We Like It:
We have noticed recently that a rotation is taking place in the 
stock market, with money flow leaving some of the heavy 
industrial stocks.  We are not quite sure where this money is now 
going, though recently pummeled sectors like airlines and 
technology could be the next likely beneficiaries.  For INMT, 
though, this suggests that things will get worse--for its stock 
price--before they get better.  Auto related stocks like BWA, 
DCN, and DHR began sliding downward recently, and INMT has joined 
the convoy.  Technically, INMT has formed a very significant 
double top on its weekly price chart, with its stock price 
closing beneath the 50-dma today.  We are estimating that prices 
will decline to a minimum level of $8.00 over the next couple of 
weeks, though lower levels are certainly possible.  

This is a high-risk play because we think that a sharp reversal 
in the Dow could pull stocks like this back up and we do not want 
to be short if that were to occur. Accordingly, we'll play INMT 
with a very tight stop.  Short positions should be taken only on 
a move below today's low of $9.51.  Once in the play we'll use a 
buy stop of $10.04, which is just above the 50-dma as well as 
near term resistance.  Our feeling is that this stock will either 
decline quickly for a 15%+- gain, or reverse quickly after it is 
triggered, in which case we want to be out of it with a modest 
loss.

May xth at $xx.xx <- see text
Gain since picked:      +0.00
Earnings Date        04/11/02 (confirmed)
 




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

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

Williams Co. - WMB - close: 9.12 change: -2.09 stop: 13.31 

WMB gapped lower this morning on news that the Federal Energy 
Regulatory Commission (FERC) had threatened to revoke the 
company's power trading license.  Shares gapped below our profit-
target at $10.26, so this play was closed at the opening trade of 
$10.00.  That's a 24.5% gain from our entry price.  So now that 
WMB has fallen under the $10 level, is it time to re-enter a 
short position?  Aggressive traders may want to consider this 
strategy.  We don't expect the flow of negative news to let up 
any time soon, and the next historical level of support (dating 
all the way back to 1994-95) lies at the $7.00-$8.00 region.  
Selling volume has been picking up as well.  However, given the 
stock's extremely oversold nature, we'd prefer to wait for a 
failed rally near $10.00 before renewing a short position.  WMB 
dropped more than 18% today and is down nearly 50% from its May 
23rd high of $18.14.  Any semblance of good news could trigger a 
sharp short-covering rally.

Picked on June 3rd at 13.25 
Gain since picked:    +3.25
Earnings Date        4/25/02 (confirmed)





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

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

--------------------------------- 
Value Plays With Bullish Signals 
---------------------------------   

LTD     Limited Brands Inc         21.41     +0.85
PKX     Posco                      29.41     +0.77
DF      Dean Foods Company         36.95     +1.11
EAC     Encore Acquisition         16.09     +0.75

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

SBGI    Sinclair Broadcast         16.57     +1.12
RDEN    Elizabeth Arden Inc        14.55     +1.15

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

NUE     Nucor Corp                 68.85     +1.89
PD      Phelps Dodge Corp          40.20     +1.20
SFG     Stancorp Financial         61.10     +1.95
BTH     Blyth Inc                  30.72     +1.87
FOSL    Fossil Inc                 32.50     +1.32
ZQK     Quiksilver Inc             24.50     +1.50
DKWD    D&K Healthcare             36.12     +3.50

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

OMC     Omnicom Group Inc          80.37     -1.63
RIG     Transocean Inc             33.80     -1.22
ESV     Ensco Intl. Inc            28.96     -1.16
WAT     Waters Corp                24.41     -1.13
CAM     Cooper Cameron Corp        51.50     -2.25
UFPI    Universal Forest Products  23.48     -1.42

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

.. none ..




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