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Daily Newsletter, Friday, 06/07/2002

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PremierInvestor.net Newsletter          Weekend Edition 06-07-2002
                                                    section 1 of 3
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In section one:

Market Wrap:      Making Sense Out Of Friday's Volatility
Play-of-the-Day:  Best Foot Forward
Watch List:       BBH, COX, FDX, HIT, SNE, and much, much more!
Market Sentiment: Bears To the Rescue?

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MARKET WRAP  (view in courier font for table alignment)
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        WE 6-07          WE 5-31          WE 5-24          WE 5-17
DOW     9589.67 -335.58  9925.25 -179.01 10104.26 -248.82  +413.16
Nasdaq  1535.48 - 80.25  1615.73 - 45.76  1661.49 - 79.90  +140.54
S&P-100  507.32 - 21.88   529.20 - 10.72   539.92 - 13.38  + 30.06
S&P-500 1027.53 - 39.61  1067.14 - 16.68  1083.82 - 22.77  + 51.60
W5000   9752.69 -353.80 10106.49 -144.15 10250.64 -223.54  +456.71
RUT      470.51 - 16.96   487.47 -  6.17   493.64 - 15.30  + 16.21
TRAN    2686.66 - 62.60  2749.26 +  5.59  2743.67 - 54.69  +155.26
VIX       26.65 +  3.75    22.90 +  1.64    21.16 +   .88  -  4.75
VXN       52.24 +  6.29    45.95 +  3.09    42.86 -   .08  -  7.79
TRIN       1.30             1.11             1.59             0.78     
Put/Call    .79              .73              .82              .72     
******************************************************************


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

MAKING SENSE OUT OF FRIDAY'S VOLATILITY

Even if today's reversal turns into several days of rebound, I 
see no technical reason to become bullish at this point.

I said earlier this week that the Dow's break below its 9775-9800 
support was very disappointing.  It pushed me into the bear camp.  
And I see no reason to change my new negative view even if we 
experience a sharp pop upward next week.  My reasons are fairly 
direct:  my weekly charts are suggesting that the Dow is far more 
likely to see 9250, or much lower, before it sees anything much 
above 9900.  

Today's action was good enough to produce some positive short-
term market movement for next week.  But that's all it is likely 
to be.  From a trading perspective this means that investors may 
want to by-pass any of the short-term strength, shorting into any 
rally as the Dow attempts to return to 9800 (or maybe 9900) and 
the Nasdaq tries--and I emphasize the word "tries"--to claw its 
way back to 1550-1600 before facing more sustained weakness.  
I've presented my technical perspective on some of the indexes 
below.  Before we explore next week's market, though, let me try 
to tie today's disparate events into some kind of coherent 
trading session.

Today's Market:  

Unless you were listening to NickleBack or Rob Zombie for the 
last 24 hours--continuously--you knew that Intel's mid-quarter 
guidance, presented after the market closed on Thursday, would 
effectively set the tone for Friday's trading.  And it did just 
that, with all the major averages--Nasdaq 100, Dow, S&P500, SOX--
gapping down at the open, subsequent to the previous evening's 
lowered revenue estimates from INTC.  Not surprisingly, investor 
behavior replicated that which we have seen so often in recent 
trading weeks:  positive economic news--a lower unemployment rate 
this morning, for example--was wholly ignored in favor of 
anything that contained these three words: "guidance", "revenue" 
and "lower." 

JP Morgan offered its pre-open, and (certainly unexpected) 
downgrades of INTC, AMD, and NVDA.  Micro Devices apparently felt 
a need to pitch its corpse onto the semiconductor bonfire when it 
revealed, also before the open, that it too would be revenue-
light and EPS-challenged. The S&P futures, as well as those for 
the Dow and Nasdaq 100, looked ready to collapse well before the 
NYSE cranked open its big doors for trading.

Like I said, though, this morning's economic news was reasonably 
encouraging.  After April's 6% unemployment rate, today's 5.8% 
rate for May only validated the notion that the US economy is 
struggling back to life and that workers are finding jobs.  The 
May rate was significantly better than the consensus estimate of 
6.1% unemployment; one has to wonder how the markets might have 
responded to this news had they not had the INTC matter with 
which to contend.  

While jobs growth may be improving, it is doubtful that there are 
many new jobs at Tyco (TYC).  The company seems to be 
disintegrating right before the eyes of investors. Generally we 
don't highlight soap operas in our nightly Market Wrap, but the 
story line for TYC--and the implosion of its stock price--is 
quickly becoming the thing around which legends form--horrible 
legends, that is.  In addition to reports earlier this week that 
the former CEO was under investigation by the NY prosecutor for a 
host of potential offenses, today revealed that the company 
itself was being scrutinized for possible income tax evasion and 
improper use of corporate funds.  Yikes!  TYC is in the process 
of attempting to sell its CIT subsidiary--they need cash, after 
all--so such legal excursions are hardly desirable for TYC's 
stock price.  But that was just the start for today.  Late this 
afternoon Moody's cut Tyco's long and short term debt ratings. 
With such an array of events surrounding the company, it was not 
surprising that TYC plunged about 30% on the day.  Incredible.

One of our short plays this week was Williams Company (WMB), a 
major energy corporation that has been wrapped in an Enron-esque 
shroud. We're a bit embarrassed that we closed out this trade, 
even with a very healthy gain.  Why? Just before the close today 
Moody's downgraded that company's debt.  We suspect that Monday 
will produce more grief for WMB shareholders.

Getting Ready For Monday, June 10th.

Earnings are finally out of the way. So we'll be concentrating on 
next week's indications of economic activity as well as, 
uh....you know, mid-quarter "guidance."  As of this evening we 
are not aware of any major analyst conferences scheduled for next 
week, but I'm sure we'll hear about them if they begin to 
materialize.  
 
Although the Federal Reserve releases its "Beige Book" report on
Wednesday, more influential reports will not show up until the 
end of the week, with the PPI & Retail Sales on Thursday.  Friday 
essentially shoulders the bulk of potentially market-moving data, 
when we have Industrial Production, Capacity Utilization, 
Business Inventories and Consumer Sentiment. 

The matter on everyone's mind this weekend will be whether or not 
we can expect the market averages to build on today's late 
afternoon rebound.  As I said above, I think we will see some 
carry-through unless, that is, an unexpected bombshell--either 
literal or figurative--hits the markets.  India/Pakistan, a 
terrorist attack, a big tech stock that lowers guidance---these 
will obviously be the kinds of detonations capable of derailing  
any continuation of today's late afternoon rebound.

Here's what I see for the major averages into next week.

The Dow Jones Industrial Average (INDU) Closed at 9590: A few 
nights ago I discussed the technical patterns that had formed on 
the Dow, and discussed implications of these.  Although the Dow 
enjoyed a rather impressive rebound today after hitting a low of 
9472, today's action did little to improve its overall technical 
picture.  Short-term, yes, a rebound is likely since the Dow came 
down to its 161.8% Fibonacci retracement (of its April 29th - May 
17th advance).  There is a high probability the Dow can continue 
to rebound off this region next week, probably returning to the 
9800 resistance region.  There is an outside chance that 9900 
could be approached.  But the bottom line, at this point, is 
this:  technically, the Dow began a serious breakdown out of a 
longer term triangular consolidation this week and any rebound to 
9800 - 9900 is likely to be short-lived.  The Dow MUST return--
immediately--to a level within the boundaries of the triangular 
consolidation (that is, decisively above 9900) if it is to offer 
any hope of repairing this week's technical deterioration.

Let me mention just one other point.  Although today's low (9472) 
SEEMS to be have been a good short term rebound point, a decisive 
move below it next week will have the Dow looking at 9200--at 
best--and the clear prospect of 8800 in subsequent weeks.

S&P 500 (SPX) Closed at 1026: Like the Dow, the SPX declined to 
its 161.8% retracement today, indicating that today's about-face 
may give rise to further upward action next week.  My forecast is 
for a rebound to 1050 before more weakness sets in; a move to 
1070 would be unlikely but not impossible.  If the SPX begins to 
decisively crack today's low of 1012, then things could turn 
fairly unpleasant, much as discussed above for the Dow.

Nasdaq Composite (COMPX) Closed at 1535: I said earlier this week 
that if the Nasdaq broke below its 1563 support region, it would 
likely continue on to much lower levels, the first of which is 
1247.  We closed well under 1563 today; while I am not ready to 
say that the COMPX is headed straight to 1247, that possibility 
now remains quite high as far as I am concerned.  Over the next 
few days we should expect the COMPX to attempt to build on 
today's reversal, rebounding to either the 1550 or 1600 
resistance levels before more weakness hits the index. 

The Russell 2000 Index (RUT) Closed at 470:   The RUT actually 
faired very well today, closing UP on a day when the Dow, SPX and 
COMPX all closed down.  We'll be looking for the potential of 
further upside next week, perhaps to the 480-487 level.  I must 
admit that this index has me a bit stumped, because I can see 
elements to it--both positive and negative--that are not in the 
Dow, SPX and COMPX.  My best estimate tonight is that the RUT 
will stall in the 480-487 region sometime over the next week or 
two, and then begin a more extended decline to 433.  

Next week has the potential to obviously be an interesting, and 
exciting, week.  Be sure to wear your trading seat belts.
 
Siegfried Brian Barger, 
Editor   



=========================
Play-of-the-Day (Bullish)
=========================
(( new Active Trader long play ))

Kenneth Cole - KCP - close: 27.35 change: +0.85 stop: 24.99

Company Description:
Kenneth Cole Productions, Inc. designs, sources, and markets a 
broad range of footwear, handbags, and accessories under the 
brand names Kenneth Cole New York, Reaction Kenneth Cole, and 
Unlisted, a Kenneth Cole Production. The company has also granted 
a wide variety of third party licenses for the production of 
men's and women's apparel, timepieces, eyewear, and several other 
accessory categories. The company's products are distributed 
through department stores, better specialty stores, and company-
owned retail stores as well as direct to consumer catalogs and e-
commerce. (source: company press release)

Why We Like It:
This is one stock that is truly putting its best foot forward.  
Traders looking at a bar or candlestick chart will notice that 
shares of KCP shot higher in early April on huge volume for two 
days in a row.  This occurred due to the company pre-warning a 
positive earnings report for the quarter and telling investors 
they should hit the upper end of previous guidance.  Having 
closed above the $25 level, shares stayed there and consolidated 
sideways.  This positive news had the stock sprouting four 
upgrades in the next couple of days following the announcement.  
You'll notice that the stock shot higher again in early May after 
the company actually announced the anticipated earnings report.  
Buying interest ran out of steam near the $30 level, which 
coincided with the top of the wide, ascending regression channel 
from its November lows.  Since that time, shares of KCP have been 
consolidating sideways much like the rest of the retail sector.  
Fortunately, this looks like a new entry point for bullish 
traders.  Just this week the stock has bounced off the bottom of 
its wide ascending channel, its 50-dma and the $25.00 support 
level.  Chart readers may also notice that traders who timed 
their entry to coincide with a bounce near the 50-dma while the 
MACD was producing a bullish crossover near the zero line would 
have done very well.  We're also happy to see the recent bounce 
also appear off support on the stock's weekly chart.  PnF chart 
readers will notice that KCP has a pattern of pulling back four 
to five O's in its bullish trend (from November) before beginning 
its next leg higher and its already pulled back four with the 
recent consolidation.  We know this sound pretty bullish but we 
are encouraged by the 3.2% gain on Friday.  Short-term traders 
could look for entries here; target the $30 resistance level and 
use a stop under today's low or the 50-dma.  The Premier Investor 
newsletter will target the upper end of the channel near $33 and 
use a stop below the recent low of $25.00.  One final note, those 
traders who don't like to play low volume stocks should be 
careful with KCP.  Shares tend to trade with volume close to 165K 
a day and Friday's was low.  Fortunately, we think the strength 
of the U.S. consumer will keep this stock in the minds of 
investors looking for a walk in the park.

Picked on June 7th at $27.35
Change since picked:   +0.00
Earnings Date       05/01/02 (confirmed)
 





==================================================================
WATCH LIST
==================================================================

The PremierInvestor.net watch list is not designed to be read
as full fledged stock picks.  Rather we would prefer to offer
it as an extra tool in today's investor toolbox.  Think of it
as a radar screen with your own radar operator pointing out
interesting developments, technical patterns or potential plays
that you may or may not have seen on your own.  Due to time
constraints we do glance at the news but rarely do we have 
time to fully read pertinent news stories, due background 
research and other necessary screens that investors should do
before making a decision.  A common exercise is to read the
entry, glance at the sector and other stocks in that industry
and then compare what's happening in the stock to what's 
happening in the broader market indices.  We hope you enjoy
the Watch List and that it proves to be a useful tool for your
own trading success.

STOCKS WORTH WATCHING
---------------------------------


Biotech HOLDRs - BBH - close: 85.35 change: -1.63

WHAT TO WATCH:  Traders that can handle the risk of a sudden 
short-covering rally may want to take a look at the BBH.  It's no 
secret that biotech sector is weak, but the downward momentum 
really picked up after BGEN and IMCL hit the group with negative 
news.  With the HOLDRS trading at all-time lows, it's anyone's 
guess as to where buyers will finally emerge.  Entries can be 
considered on a failed rally at the $90 level or a break under 
today's low of 82.90, with the latter strategy better suited to 
aggressive traders.  On a related note, the BTK.X biotech index 
has broken below all meaningful levels of support.  The bulls 
have nothing to hang their hats (horns?) on until 
historical/psychological support at 300.  That's about 16% from 
current levels.




--- 

COX Communications - COX - close: 29.84 change: -1.47

WHAT TO WATCH:  COX is in a freefall.  The stock has dropped nine 
days in a row and seems to be obeying the law of gravitational 
acceleration - it's picking up speed as it falls.  Today's 4.7% 
decline came on the strongest volume in over a month and shares 
are trading at multi-year lows.  Combine this technical weakness 
with a bearish triangle p-n-f breakdown and it's easy to see how 
there could be a lot more downside in the near-term.  Aggressive 
short positions could be considered at current levels, with a 
profit-target near $25.


 

--- 

FedEx Corp. - FDX - close: 54.34 change: +0.37

WHAT TO WATCH: FedEx began an extended consolidation in March; it 
is now giving indications that the consolidation may be nearing 
an end.  We have a prominent reverse head and shoulder pattern on 
our daily charts, and FDX was able to successfully close over its 
50-dma for two days in a row--the first time its done this since 
late March. During the last couple of weeks, the company has 
announced, or been on the receiving end of, positive fundamental 
events: it opened its most technologically advanced facility for 
package sorting and delivery; Buckingham Research upgraded FDX; 
and the company announced it would pay its first dividend in its 
history.  FDX looks like it can begin an attractive advance once 
it has successfully moved above nearby resistance at $55.70.




---

Hitachi Ltd - HIT - close: 69.30 change: -0.69

WHAT TO WATCH:  We came very close to adding HIT as a short play 
tonight.  The stock has traced an almost picture-perfect head-
and-shoulders over the past three months, with the 100-dma 
($69.36) consistently offering support.  Shares dropped sharply 
from the $75 level this week, closed under the 100-dma, and are 
now in danger of falling below the relative low of $68.25.  
However, our bearish enthusiasm was tempered by the p-n-f chart, 
which is showing bullish support at $68.  Does this mean that HIT 
won't head lower?  Definitely not, but it does indicate that 
bulls may offer a defense of this level.  The daily stochastics 
(5,3,3) are deeply oversold as well.   Nonetheless, a break of 
the $68 level could quickly send HIT to the $60-$65 region.  
Traders could target a move under $68.00 with a tight stop just 
over the 100-dma. 




--- 

Ivax Corp. - IVX - close: 13.48 change: +0.77

WHAT TO WATCH: Pharmaceutical company Ivax is sitting on a 
prominent reverse head and shoulders bottom that has been forming 
since April 8th.  The stock was able to close above its 
flattening 50-dma today, on strong volume. Although it has modest 
resistance at 14.10, IVX looks like it will begin a move to the 
$15.50-16.00 resistance region once above 14.10.




---

Panera Bread Co. - PNRA - close: 69.12 change: +2.68

WHAT TO WATCH: PRNA has been on quite a tear since bottoming near 
$30 in September.  Shares have more than doubled since then, 
prompting the company to authorize the 2-for-1 stock split which 
was given shareholder approval on Thursday.  This creates the 
possibility of a run-up ahead of the June 24th split.  The 
technicals are strong as well.  After bouncing from the $60 
level, shares powered back over the 50-dma ($66.75) and are now 
threatening a move over $70.  The oscillators are looking good 
too, with daily stochastics moving higher and the MACD on the 
verge of a bullish crossover.  Traders could target a move over 
$70 as an action point to go long.  A break over this level would 
set the stage for a test of the all-time high at $73.60.




---  

Radio Shack - RSH - close: 31.81 change: +0.21

WHAT TO WATCH: RSH started a healthy consolidation in mid-May.  
The stock has retraced only 38.2% of its sharp April 4 - May 20 
advance.  While we typically look for a deeper pullback (61.8%; 
78.6%) this more shallow type of consolidation will appear with 
regularity when a stock has experienced a sharp advance 
accompanied by breakaway gaps--just as RSH experienced during its 
explosive mid-may time frame.  We could be wrong....and a drop to 
lower retracements possible.  But a move above nearby resistance 
at $34.15 should help reaffirm RHS's likely path.




---

Smurfit-Stone Container - SSCC - close: 16.65 change: +0.21

WHAT TO WATCH: Like clockwork, SSCC bounced from its 200-dma 
($15.85) on Monday.  Interestingly enough, this moving average 
coincided with both the bottom of the stock's ascending 
regression channel and bullish p-n-f support.  The subsequent 
bounce confirmed the presence of willing buyers at these levels, 
and lends credence to the notion that SSCC will retest its 
relative highs near $18.  Entries can be targeted on a break 
above today's high ($16.82) or a pullback to $16.00.


 

---

Sony Corp. - SNE - close: 55.50 change: unch

WHAT TO WATCH: Anyone know the Japanese phrase for "entry point"?  
After a two-week pullback from the $60 level, this ADR 
successfully tested its 50-dma today.  This level roughly 
coincides with the trend of higher lows the stock has traced 
since early April.  The daily stochastics (5,3,3) are just 
beginning to curl higher from the oversold band, which bodes well 
for a retest of the near-term highs.  By using a stop just under 
today's low ($53.80), entries with a favorable risk/reward ratio 
can be evaluated at current levels.


 

---

Dow Jones US Home Const. Index - DJUSHB - close: 369 chg: +6.00 

Ok, the DJUSBH is not a stock; but it's an important index--and 
collection of stocks--that have gained much attention in recent 
months.  Fundamentally there are a lot of good things going on in 
this sector.  Technically, though, it appears that investors want 
to start taking some profits.  The index was at 184 in Sept. 
2001; it just recently hit a high of 397 a couple of weeks ago.  
Since then has been pulling back.  We expect that the index could 
consolidate down to a minimum of 315, and possibly as low as 265, 
before it is ready for a new, extended run.  It looks like a good 
time to start shorting housing stocks.




---

Veritas - VRTS - close: 20.99 chg: -1.16 

Our downward projections show that VRTS could be on its way to 
10.00. But other projections show the prospect of a move to 
28.00, or higher.  What gives?  VRTS has formed a consolidation 
on the end of a fairly seep decline, and the stock seems to be 
trying to decide if it is going to break out, or break down.  
Long positions make sense if it breaks above $23.65, while short 
positions would be appropriate on a drop below $20.50.  Something 
for everyone!






----------------
The RADAR Screen
----------------
( PnF = point-and-figure chart.  rez = resistance )

-- Bullish Ideas --

CPS  - shares just split but remain above the $45 level.

CECO - look for move over $46. MACD is bullish.

COCO - still looks good.  Nice gain on Friday but PnF resistance!

FCN  - looks good. MACD almost bullish.  back over the 50-dma.

TSN  - defensive sector, but slow mover. watch $15 mark.

STZ  - watch for move over $30.

MHO  - looks very strong.  good MACD.  good PnF chart.

CYH  - healthcare group.  watch for move over $30.

RCII - currently consolidating.  watch for move over 50-dma.

FRED - trying to bottom.  look for move over 50-dma.

AZO  - has rebounded from trading support. looks strong.

AET  - MACD looks bullish.  nice bounce at $45 - filled the gap.

ABK  - lots of volume on recent rallies.  hitting new highs.

AMZN - could rally back to the $20 level.  

MGG  - trying to bottom near $35.  watch 50-dma & $40 level.

PDX  - good sector.  trying to bottom at 200-dma.

LU   - high risk!  currently near bottom of descending channel.

CW   - nice bounce! but be careful - very low volume.

FMX  - trying to bottom near $40 but be careful.

PFCB - bullish engulfing candlestick & close above $35. rez:50-dma

GRTS - pulled back to 100-dma & price support at $30. rez:50-dma


-- Bearish Ideas --

MIL  - hitting new lows on decent volume. support at $30?

RTRSY - new lows not seen since Jan. 1995.  

SBC  - looks like it's heading for $30. MACD bearish.

DIS  - breakdown under 200-dma (again).  Long-term short?

BK   - also looks like it's heading for $30.

GDT  - use trigger under $36.50.  target $30.  MACD bearish.

A    - oversold.  look for failed rally at $25. target: 22.50 & 20

VRTS - consider bearish trigger at $20.49 or $19.99. target: 17.50

CVG  - consider bearish triggers 24.39 or 23.99.  target: $20

SV   - bearish trigger under $20, target $18.25. MACD bearish

TMPW - consider trigger under Friday's low.  target $21

OSIP - strong volume declines.  look for failed rally.

V    - failing again.  MACD bearish. 

IBM  - doesn't look good does it?  target $70.




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

Bears To The Rescue?
By Eric Utley

I think Friday's saviors were, ironically enough, the shorts.
What had the potential to be a very ugly day turned out to be
not so bad after all.  Over the intermediate- and longer-terms,
I think Friday's reversal bodes poorly for stocks.  I don't
have an intelligent idea for what the short-term holds, so I
won't even try to speculate.

From what I observed on the tape Friday morning, supply coming
from longs selling dried up at the open.  Without the necessary
supply to cover into without causing an imbalance, the shorts
did just that.  Two high profile warnings from very important
sectors should have caused more fear on the part of the bulls.
Of course I'm talking about Biogen (NASDAQ:BGEN) in the Biotech
arena, and Intel (NASDAQ:INTC) in the semis.  These two were
enough to induce a capitulation, but they didn't.  For whatever
reason, the longs weren't scared enough to throw in the towel,
which I think only delays the inevitable, or we're in store for
more of the bleed lower.  But enough of the news, let's take
a look at the sentiment indicators.

The sector spotlight was pretty interesting Friday, with two
commodity-based sectors earning the best and worst spots.  The
Oil Service Index (OSX.X) rebounded after a big slide lower
earlier in the week.  Yet Gold (XAU.X) was dismantled.  My
thinking is that the rally in the OSX.X was in relief, and that
the group gets weaker into the coming weeks.  As for gold, I
don't know if Friday's move was enough to remove the excessive
bullishness in that corner of the market, or if it was the
beginning of a deeper contraction.

The CBOE Market Volatility Index (VIX.X) had the makings of a
big day in the early going, but failed to penetrate the 30
level.  Above the 30 level is generally when we'll hear the
VIX start being talked about in the financial media.  For some
reason, that is a level of importance.  And they were most
certainly watching it Friday as the index rolled over from
29.94, reaching the same level it did back in late January.
Two things stick out to me in the VIX.  The first is that
fear is on the rise judging by the close above the 200-dma.
But the second, which I've been writing for about for quite
a while, is the VIX's inability to hold onto a gain in
conjunction with a rally in stocks.  Heck, stocks didn't even
finish in the green Friday, but the VIX still closed lower.
In other words, there's no skepticism among the big money
crowd once they see stocks lift from the mat.  This indicator
alone, and I think it can be used as a stand alone indicator,
and the way that it is acting suggests to me that the worse is
not yet over.  Plus, the disadvantage of a higher VIX to
options traders means that you'll have to pay up for premium
in the form of increased implied volatility.  All that means
is that it's much more difficult to control risk in options
trades in the current market environment.

Next the VIX, the most compelling action is taking place in
the bullish percent data.  The five markets we track are in
either a corrective phase, or downright bearish.  The one
that I'd like to focus on this weekend in the Nasdaq-100
Bullish Percent ($BPNDX) which fell to 20 percent last Friday
on a drop of another 4 stocks during Friday's session.  At
20 percent, the indicator is just above where it was prior
to the Cisco (NASDAQ:CSCO) ignited rally.  The NDX is getting
very, very oversold.  That doesn't automatically mean that
it's going to rally.  But what it does tell us is that risk
to the downside is growing smaller and smaller with the loss
of each stock.  If risk is smaller to the downside by a wide
margin, then it makes sense to be managing your short
positions closely, and looking to start getting bullish.  I
don't know what will finally shift the market back into a
bullish mode, but the catalyst is usually unknown just like
CSCO was about a month ago.

The final piece of evidence that I'd like to examine this
weekend in the activity among the Nasdaq traders in the
Commitments of Traders (COT) report.  Nasdaq commercials
reached their most bullish reading in more than a year last
week, while, get this, small traders just missed their most
bearish reading of the year.  The divergence between the two
groups is what to really focus on when examining COT data,
and that's exactly what we're getting with the most recent
report.  This piece of data combined with the oversold
nature of the $BPNDX I think warrants a closer look to the
bullish side of the tech sector FOR A TRADE.  I did just
that last Friday by putting some of my money to work in
NDX names that were either at support levels or had
achieve price targets during last Friday's session.  We'll
see how they pan out next week.

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

Market Averages

DJIA ($INDU)

52-week High: 11350
52-week Low :  8062
Current     :  9590

Moving Averages:
(Simple)

 10-dma:  9825
 50-dma: 10084
200-dma:  9871

S&P 500 ($SPX)

52-week High: 1316
52-week Low :  945
Current     : 1027

Moving Averages:
(Simple)

 10-dma: 1054
 50-dma: 1090
200-dma: 1111

Nasdaq-100 ($NDX)

52-week High: 2071
52-week Low : 1089
Current     : 1140

Moving Averages:
(Simple)

 10-dma: 1198
 50-dma: 1291
200-dma: 1431


Oil Service ($OSX)

The OSX narrowly out paced the HMO last Friday to earn the
day's best performing sector spot.  The OSX gained 2.04
percent on the day on what appeared to be a reaction to the
sell-off in the first half of the week

Leaders to the upside included Varco (NYSE:VRC), Transocean
(NYSE:RIG), Rowan Companies (NYSE:RDC), Baker Hughes (NYSE:BHI),
Noble (NYSE:NE), and Nabors (NYSE:NBR).

52-week High: 130
52-week Low : 58
Current     : 100

Moving Averages:
(Simple)

 10-dma: 102
 50-dma: 103
200-dma: 87


Gold and Silver ($XAU)

Forget about the SOX, the real beating took place in the XAU
last Friday.  The index shed nearly 6 percent, easily earning
the day's worst performing sector spot.  

The selling was pretty broad, and most likely a sector related
sell program as there wasn't an individual disaster.  The
leading downside movers included Harmony Gold (NASDAQ:HGMCY),
Anglogold (NYSE:AU), Newmont Mining (NYSE:NEM), and Gold
Fields (NYSE:GFI).

52-week High: 89
52-week Low : 49
Current     : 79

Moving Averages:
(Simple)

 10-dma: 85
 50-dma: 77
200-dma: 63

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

Market Volatility

Well, the VIX ticked up to, but barely missed, the key 30 level
from which it promptly reversed to finish, get this, lower for
the day.  Amazing, just amazing.  I think it points to more
downside eventually.  A lot more.

The VXN is getting more bullish, however, noting its ability to
hold onto a more than 6 percent rally.  It's now above the
200-dma.

CBOE Market Volatility Index (VIX) - 26.70 -0.76
Nasdaq-100 Volatility Index  (VXN) - 52.78 +3.02

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

          Put/Call Ratio  Call Volume   Put Volume
Total          0.79        636,476       504,550
Equity Only    0.67        509,336       340,841
OEX            1.29         33,953        43,796
QQQ            0.47         67,057        31,248

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

Bullish Percent Data

           Current   Change   Status
NYSE          56      - 1     Bull Correction
NASDAQ-100    20      - 4     Bull Correction
DOW           47      - 3     Bear Confirmed
S&P 500       50      - 2     Bear Confirmed
S&P 100       50      - 1     Bear Confirmed

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

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

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

 5-Day Arms Index  1.72
10-Day Arms Index  1.63
21-Day Arms Index  1.36
55-Day Arms Index  1.36

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

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

Market Internals

        Advancers     Decliners
NYSE       1794          1694
NASDAQ     1367          1711

        New Highs      New Lows
NYSE       43            131
NASDAQ     43            259

        Volume (in millions)
NYSE     1,800
NASDAQ   2,111

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

Commitments Of Traders Report: 06/04/02

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

Small specs are the general trading public with commercials being 
financial institutions. Commercials are historically on the 
correct side of future trend changes while small specs tend 
to be wrong.  

S&P 500

Commercials brought in a few of their shorts last week and added
a few longs.  Small traders grew slightly less bullish, but not
by a meaningful amount.

Commercials   Long      Short      Net     % Of OI 
05/21/02      354,039   429,803   (75,764)   (9.7%)
05/28/02      362,607   442,845   (80,238)   (9.9%)
06/04/02      369,298   440,027   (70,729)   (8.6%)

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

Small Traders Long      Short      Net     % of OI
05/14/02      163,035     58,587  104,448     49.8%
05/21/02      172,313     57,803  114,510     49.8%
06/04/02      167,713     58,885  108,828     48.0%

Most bearish reading of the year:  36,513 - 5/01/01
Most bullish reading of the year: 114,510 - 3/26/02
 
NASDAQ-100

Nasdaq commercials grew quite a bit more bullish last week by
bringing in a large number of short positions.  Small traders
meanwhile grew increasingly bearish with their addition of a
number of short positions, to just off of their yearly high in
bearishness.

Commercials   Long      Short      Net     % of OI 
05/21/02       51,448     45,375     6,073   (6.3%)
05/28/02       49,669     44,900     4,769   (5.0%)
06/04/02       47,875     39,100     8,775   (9.3%)

Most bearish reading of the year: (15,521) -  3/13/01
Most bullish reading of the year:   8,775  - 06/04/01

Small Traders  Long     Short      Net     % of OI
05/21/02       12,567    19,899    (7,332)    22.6%
05/28/02       12,562    16,969    (4,407)    14.9%
06/04/02       12,162    21,420    (9,258)    27.2% 

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

DOW JONES INDUSTRIAL

Dow commercials added a few more shorts than longs last week for
a reduction in their new bullish position.  The small traders
were much more active with a significant drop in their bearish
position.

Commercials   Long      Short      Net     % of OI
05/21/02       20,173    15,317    4,856     13.7%
05/28/02       20,289    15,513    4,776     13.3%
06/04/02       20,564    16,169    4,395     11.0% 

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

Small Traders  Long      Short     Net     % of OI
05/21/02        3,661     9,585    (5,924)   (44.7%)
05/28/02        5,709     9,180    (3,471)   (23.3%)
06/04/02        7,114     9,639    (2,525)   (14.7%) 

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

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





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Do not duplicate or redistribute in any form.
PremierInvestor.net Newsletter          Weekend Edition 06-07-2002
                                                    section 2 of 3
Copyright © 2001, All rights reserved.
Redistribution in any form is strictly prohibited.

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In section two:

Net Bulls
  New Bearish Plays:     BLDP, TEK
  Bearish Play Updates:  CLS, CMCSK
  Closed Bearish Plays:  AT, NET, TBH

Stock Bottom / Active Trader
  New Bullish Plays:     DGX, KCP, WIN
  New Bearish Plays:     ACV, FO 
  Bullish Play Updates:  DCX, OHP, RJR, THC
  Bearish Play Updates:  BA, BSTE, DHR, FBN

High Risk/Reward
  New Bullish Plays:     JCI, TSCO
  Bearish Play Updates:  DOX, INMT, SFY
  Closed Bullish Plays:  PVN
  
                         

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

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

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

Ballard Power - BLDP - close: 19.19 change: -0.33 stop: 21.01

Company Description:
Ballard Power Systems is recognized as the world leader in 
developing, manufacturing and marketing zero-emission proton 
exchange membrane ("PEM") fuel cells. Ballard is commercializing 
fuel cell engines for transportation applications and fuel cell 
systems for portable and stationary products ranging from 1 
kilowatt to 250 kilowatts. Ballard is also commercializing 
electric drives for fuel cell and battery-powered electric 
vehicles, power conversion products for fuel cells and other 
distributed generation products, and is a Tier 1 automotive 
supplier of friction materials for power train components. 
Ballard's proprietary technology is enabling automobile, bus, 
electrical equipment, portable power and stationary product 
manufacturers to develop environmentally clean products for sale. 
Ballard is partnering with strong, world-leading companies, 
including DaimlerChrysler, Ford, ALSTOM and EBARA, to 
commercialize Ballard® fuel cells. Ballard has supplied fuel 
cells to Honda, Nissan, Volkswagen, Yamaha, Cinergy, Coleman 
Powermate and Matsushita Electric Works, among others. 
(source: company press release)

Why We Like It:
We like what the company is trying to do.  Clean, emission-less 
fuels sound like a great business to be in but it appears that no 
one is listening.  It was only two days ago that BLDP announced a 
successful test of one of its Mark 900 series fuel cells.  They 
drove a Mercedes, equipped with a fuel cell battery, 3,000 miles 
from California to Washington, D.C.  The thirteen-day endurance 
test was a success but the stock sold off without any attempt at 
a rally.  Actually shares are in an abysmal downtrend and the 
recent break under the $20 support level is what really caught 
our eye.  The gap down on Friday could be an entry point but 
patient traders may want to wait and see if shares rally back to 
the $20 level.  A failed rally at $20 would be a preferable entry 
point to short it.  We're going to initiate the play with a stop 
loss at $21.01, which might seem a little wide at first.  Yet our 
target on this play is a move to the $15.00 level, the stock's 
next major support area.  Although we shouldn't be surprised if 
bulls try and stop the trend at $17.50 or bears do a little short 
covering.  Meanwhile, we'll make the $15.00 mark our official 
exit price should shares spike down on any bad news.

Picked on June 7th at $19.19
Gain since picked:     +0.00
Earnings Date       04/29/02
 

 

--- 

Tektronix Inc. - TEK - close: 19.55 change: -0.47 stop: 20.26

Company Description:
Tektronix, Inc. is a test, measurement and monitoring company 
providing measurement solutions to the communications, computer 
and semiconductor industries worldwide. With more than 55 years 
of experience, Tektronix enables its customers to design, build, 
deploy and manage next-generation global communications networks, 
computing and advanced technologies. (source: company press 
release)

Why We Like It:
If you check out the "breakdowns" section in one of the many 
books on stock chart analysis, you'll probably see something that 
looks an awful lot like TEK.  The stock repeated bounced from 
$20.00 to $20.50 for the past two weeks and simply would not fall 
more than a few cents below this level.  That all changed today, 
when shares dropped 2.3% and fell through support.  Volume 
backing the decline was the strongest since May 21st.  The 
stubborn buyers sitting at the $20 level may have finally thrown 
in the towel after the INTC Q2 earnings warning.  As you can see 
from the above company description, TEK has exposure to the 
semiconductor industry.  The breakdown not only created an 
obvious bearish bar-chart pattern, but also violated bullish 
support on the p-n-f chart.  Throw some downtrending daily 
stochastics (5,3,3) into the mix, and we've got the recipe for a 
relatively low-risk short entry.  We're also encouraged that 
shares bounced with the afternoon market rally but couldn't get 
back over the $19.80 level.  Our initial profit-target is the 
September lows near $17, although we wouldn't hesitate the exit 
the play if shares bounce from the $18 level.  We'll minimize 
risk by placing a stop at $20.26, nine cents above the Thursday 
high.  This would be about 3% move from today's close.  TEK 
announces earnings on June 20th.

Picked on June 7th at $19.55
Gain since picked:     +0.00
Earnings Date       06/20/02
 




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

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

Celestica - CLS - close: 26.40 change: -0.50 stop: 27.22 *new*

CLS fought a variety of cross currents during Friday's trading 
session. In addition to the Intel-inspired volatility that caused 
tech stocks like CLS to whipsaw back and forth, Morgan Stanley 
announced before the open that it had initiated coverage of 
Celestica with a "buy" rating.  Shortly after, though, Raymond 
James stepped forward with a downgrade, stating that it  was 
concerned about the questionable guidance being offered by other 
Electronic Contract Manufacturers like FLEX.  Raymond James 
downgraded CLS to a "buy" from a "strong buy."   We continue to 
believe that CLS can decline to either its 127% or 161.8% 
Fibonacci retracement (of its May 7-May 17 advance); these levels 
are $23.45 and $20.82 respectively.  We want to keep as much of 
our gains as possible in the event that CLS reverses on us, so 
we've lowered our buy stop to $27.22.  If we are stopped out at 
this level, we will have nonetheless captured an attractive 12% 
gain.

Picked on May 21st at $30.94
Gain since picked:     +4.54
Earnings Date       04/17/02 (confirmed)
 



---

Comcast Corp - CMCSK - cls: 25.35 chg: -0.23 stop: 26.27 *new*

Comcast attempted to rebound today but found resistance too tough 
in the region of yesterday's high:  $26.00 - $26.20.  Since May 
28th CMCSK's  price has consistently oscillated between, and been 
restrained by, 1) our declining Bollinger Band 5-dma and 2) the 
lower Bollinger Band.  We think that this trading behavior is 
likely to continue until the stock has reached the $24 level, 
which is the 127% retracement of CMCSK's April 30 - May 22 
advance.  We have now established an official profit target at 
$24.30, a level that is just above the 127% retracement.  We 
have--again--elected to lower our buy stop, to $26.27, which is 
slightly above our sharply declining Bollinger Band 5-dma. With 
our profit target only about 4% below today's close, we'd 
discourage new positions at this time.  If we do get stopped out 
and CMCSK falls again from the top of its channel, we'd consider 
shorting it again.

Picked on June 3rd at 27.89
Gain since picked:    +2.54
Earnings Date      05/01/02 (confirmed)





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

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

Alltel Corp - AT - close: 50.62 change: +1.33 stop: 50.24 

We noted last night that AT had declined to its key 61.8% 
($49.00) retracement of its recent May 13th - May 24th rise.  
While we thought more downside was possible in this short 
position, rebounds are common off this Fibonacci retracement 
level.  In order to protect our trade, we elected to tighten our 
stop aggressively, to $50.24, which was less than 1% away from 
the point at which this short position was initiated.  After a 
decline at the open this morning, AT started a sharp intraday 
rally that took it well past our buy stop. Accordingly, the trade 
was closed at $50.24, representing a $0.30 loss (-0.6%).

Picked on June 4th at $49.94
Change since picked:   -0.30
Earnings Date       04/25/02 (confirmed)




--- 

Network Associates - NET - cls: 19.08 chg: +1.33 stop: 18.77 

We said last night that our short-term price target was $17.25,
which coincided with the 78.6% Fibonacci retracement level of 
NET's May 7 - May 20 advance.  As PI readers probably know, 
stocks will frequently consolidate down to either the 61.8% or 
78.6% levels--unless they simply collapse down to the more 
painful 127% and 161.8% levels--before starting meaningful 
rebounds.  NET opened at our price target this morning and then 
declined just a few more cents before beginning a very strong 
intraday rebound--precisely the thing we wanted to avoid.  And we 
did.  Whew!  Stops do work!  This trade was closed at the open of 
trading, giving us an 11% gain on this short position.  

Picked on May 31st at $19.35
Gain since picked:     +2.10
Earnings Date        04/11/02 (confirmed)


 

--- 

Telecom Brasil - TBH - close: 26.82 change: +0.92 stop: 26.49

Last night we reminded you that TBH had declined to the key 127% 
Fibonacci retracement of its May 13 - May 30 advance, which also 
happened to be just a few pennies below our first profit target of 
$26.00.  Whether you took profits yesterday or today at the $26.00 
level, or waited for this morning's decline to $25.50--which was 
followed by a fierce rebound up to and beyond our tightened buy stop at 
$26.49--you ended up with a nice little gain in this short position.  
We're using the stop loss level of $26.49 as the official price at 
which this trade was closed, giving us a modest 4.4% gain.

Picked on May 22nd at $27.70 
Gain since picked:     +1.21
Earnings Date            N/A






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

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

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

Quest Diagnostic - DGX - close: 90.93 change: +2.18 stop: 86.49

Company Description:
Quest Diagnostics Incorporated is the nation's leading provider 
of diagnostic testing, information and services, providing 
insights that enable physicians, hospitals, managed care 
organizations and other healthcare professionals to make 
decisions to improve health. The company offers patients and 
physicians the broadest access to diagnostic laboratory services 
through its national network of laboratories and patient service 
centers. Quest Diagnostics is the leading provider of esoteric 
testing, including gene-based medical testing, and empowers 
healthcare organizations and clinicians with state-of-the-art 
connectivity solutions that improve practice management. 
(source: company press release)

Why We Like It:
Whether you classify Quest Diagnostic as a biotech, drug or 
healthcare stock, one thing is for sure.  It looks like the bulls 
are back in control.  Before we talk about our strategy for this 
long play, check out some recent headlines.  In mid-April the 
company announces a very positive Q1 earnings report with net 
income numbers coming in almost double compared to the same 
quarter a year earlier.  How many companies do you know of have 
doubled net income since last year?  In mid-May the company 
actually raised its 2002 capex spending estimates.  Again, how 
many companies are raising capex numbers?  The recent trend has 
been to lower them.  Company shareholders also voted to increase 
the potential number of authorized shares from 100M to 300M.  
Sounds like a future stock split is in the works for DGX.  Around 
May 24th the company did announce that the FTC had requested some 
additional information on its planned acquisition of Unilab Corp 
(Nasdaq:ULAB) and this has delayed the final date of the deal but 
no one believes the FTC will veto the merger (at this time).  Now 
most recently, in a market where we can't go more than a day or 
two without Moody's downgrading someone's credit rating, DGX is 
actually upgraded by Moody's.  This occurred near May 29th, which 
coincided with the recent bottom at the $84 level.

This bounce at the $84 level happens to be a 50% retracement of 
its mid-March to mid-May advance.  The last couple of weeks have 
seen cautious buying and most recently, despite all the market 
turmoil and weakness, DGX has been building on higher lows.  Now 
the stock is showing a breakout above the $90 level of resistance 
and the MACD has posted a very strong bullish crossover.  Shares 
do have overhead resistance at $96 but we expect DGX to trade 
through it and hit the $100.  We will actually close the play and 
take profits if DGX hits $99.75 (our official exit at this time).  
We're going to begin the play with a stop at $86.49, under recent 
support.  More conservative traders could probably get away with 
$87.49 or even under Friday's low ($88.15).  As the play 
progresses higher we'll adjust our stop.  Later, if DGX closes 
above the $100 mark, we'll consider new positions again.  

Picked on June 7th at $90.93
Change since picked:   +0.00
Earnings Date       04/18/02 (confirmed)
 

 

--- 

Kenneth Cole - KCP - close: 27.35 change: +0.85 stop: 24.99

Company Description:
Kenneth Cole Productions, Inc. designs, sources, and markets a 
broad range of footwear, handbags, and accessories under the 
brand names Kenneth Cole New York, Reaction Kenneth Cole, and 
Unlisted, a Kenneth Cole Production. The company has also granted 
a wide variety of third party licenses for the production of 
men's and women's apparel, timepieces, eyewear, and several other 
accessory categories. The company's products are distributed 
through department stores, better specialty stores, and company-
owned retail stores as well as direct to consumer catalogs and e-
commerce. (source: company press release)

Why We Like It:
This is one stock that is truly putting its best foot forward.  
Traders looking at a bar or candlestick chart will notice that 
shares of KCP shot higher in early April on huge volume for two 
days in a row.  This occurred due to the company pre-warning a 
positive earnings report for the quarter and telling investors 
they should hit the upper end of previous guidance.  Having 
closed above the $25 level, shares stayed there and consolidated 
sideways.  This positive news had the stock sprouting four 
upgrades in the next couple of days following the announcement.  
You'll notice that the stock shot higher again in early May after 
the company actually announced the anticipated earnings report.  
Buying interest ran out of steam near the $30 level, which 
coincided with the top of the wide, ascending regression channel 
from its November lows.  Since that time, shares of KCP have been 
consolidating sideways much like the rest of the retail sector.  
Fortunately, this looks like a new entry point for bullish 
traders.  Just this week the stock has bounced off the bottom of 
its wide ascending channel, its 50-dma and the $25.00 support 
level.  Chart readers may also notice that traders who timed 
their entry to coincide with a bounce near the 50-dma while the 
MACD was producing a bullish crossover near the zero line would 
have done very well.  We're also happy to see the recent bounce 
also appear off support on the stock's weekly chart.  PnF chart 
readers will notice that KCP has a pattern of pulling back four 
to five O's in its bullish trend (from November) before beginning 
its next leg higher and its already pulled back four with the 
recent consolidation.  We know this sound pretty bullish but we 
are encouraged by the 3.2% gain on Friday.  Short-term traders 
could look for entries here; target the $30 resistance level and 
use a stop under today's low or the 50-dma.  The Premier Investor 
newsletter will target the upper end of the channel near $33 and 
use a stop below the recent low of $25.00.  One final note, those 
traders who don't like to play low volume stocks should be 
careful with KCP.  Shares tend to trade with volume close to 165K 
a day and Friday's was low.  Fortunately, we think the strength 
of the U.S. consumer will keep this stock in the minds of 
investors looking for a walk in the park.

Picked on June 7th at $27.35
Change since picked:   +0.00
Earnings Date       05/01/02 (confirmed)
 



--- 

Winn Dixie Stores - WIN - cls: 18.69 chg: +0.18 stop: 17.84

Company Description:
Winn-Dixie Stores, Inc, is one of the nation's largest 
supermarket retailers, with over 1,100 stores in 14 states and 
the Bahamas. (source: company press release)

Why We Like It:
Shares of Winn Dixie caught our eye as it managed to maintain its 
gains during Friday's turbulent market.  Not only are shares 
bouncing from the 50-dma area but they are also bouncing from the 
$18 level and the bottom of its ascending channel.  We also feel 
that WIN might continue to attract investor interest due to its 
position in a historically defensive sector of the economy.  If 
the stock market is going retest the September lows then a 
defensive posture is probably the best way to make money on the 
long side.  Furthermore the stock has been resistant to bad news.  
Shares were not affected by the May 6th news that WIN would pull 
out of the Texas and Oklahoma markets due to continuing financial 
losses and marketshare issues.  The move would impact about 70 
stores for the company.  We are going to implement a relatively 
tight stop just under the 50-dma ($17.84).  Our current profit 
target is the top of the channel at $21.00 but we'll reaffirm an 
official exit after shares close over potential resistance at 
$20.  Shares are battling overhead resistance on its PnF chart 
and devotees to PnF strategy might want to wait for a move above 
the bearish trendline.

Picked on June 7th at $18.69
Change since picked:   +0.00
Earnings Date       04/25/02 (confirmed)
 



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

Alberto Culver - ACV - close: 51.70 change: -0.34 stop: *text*

Company Description:
Alberto-Culver Company manufactures personal care products for 
both domestic and international consumption; it markets its 
products in more than 120 countries worldwide. Perhaps it is best 
know for its Alberto VO5 hair care products.  The company is a 
major competitor of Procter and Gamble.

Why We Like It:
Alberto Culver has most recently enjoyed an extended advance in 
its price, which began in Sept. 2001 at $37.35 and continued 
through mid-May 2002, to $57.91. Stocks like ACV and PG are 
considered to be defensive in nature, and capable of weathering 
both economic downturns as well as turbulent markets.  We've seen 
both of these in the last year, and this climate has contributed 
to ACV's rather impressive performance.  Although the company 
reaffirmed analysts' 2002 earnings estimates of $2.30 per share 
as recently as May 8th, the stock has been consolidating downward 
since that same time.  There are at least two prominent reasons 
that this weakness.  First, UBS Warburg downgraded ACV on May 
21st; then, on May 30th, ACV filed for a secondary offering.  
Shareholders, and investors, typically dislike secondary 
offerings since these dilute both EPS and individual ownership of 
the company.  At a technical point, we cannot help but observe 
that ACV has been in a clear topping process since early April--
as has Procter and Gamble.  We think the stock, and sector, are 
now vulnerable on both technical and fundamental fronts. ACV 
currently trades well below its declining 50-dma.

Our approach to shorting ACV will be as follows.  We'll wait for 
the stock to decline below Friday's low of $51.15, shorting it 
once below this level.  Once the short position is triggered, 
we'll use a buy stop of $55.11. This is above both significant 
resistance and the declining 50-dma.  Our official price target 
will be $45.25--the 61,8% retracement of ACV's Sept. 2001 - May 
2002 advance. We recognize that the stock could attempt to find 
some support at a higher level, specifically the 200-dma, which 
presently sits at $47.57, and we'll be watching as the stock 
approaches that level.  Alberto Culver is not a fast mover, but 
we think that once it has dropped below last significant support 
at $50.25 it could experience a fairly brisk decline to the 200-
dma region, or lower.

Picked on June xth at $xx.xx <- see text
Gain since picked:     +0.00
Earnings Date       05/25/02 confirmed
 



--- 

Fortune Brands - FO - close: 52.08 change: -0.93 stop: *text*

Company Description:
Fortune Brands, Inc. is a holding company; its various business 
are involved with producing and selling home products, office 
products, golf products and spirits and wine. Notable 
subsidiaries include Moen, Titleist, Master Lock, and the 
venerable Jim Beam bands. 

Why We Like It:
From Jan. 2002 until mid-May 2002, FO's price climbed higher like 
an unrelentingly overly-caffinated lumberjack, from $36.85 to 
$56.57.  The stock seemed unstoppable until late May when it 
began to consolidate, gapping down to the $51.00 region.  There 
does not seem to have been any precipitous event that started the 
stock on its slide downward except the Dow Jones did turn in a 
couple of painful declines during the same time frame.  In fact, 
FO had done the one thing Wall Street analysts seem so pleased 
with these days: the company reaffirmed its earnings guidance for 
2002 on May 8th.  Our interest in shorting this stock rests not 
only on the sudden price dip in the absence of any notable news 
(what's out there that we've not heard about, eh?) but we are 
also intrigued with the stock's initial breakdown under its 50-
dma.  FO began to break out of a small triangle formed at the 
bottom of its May 22 - May 29 decline.  Moves out of these 
triangles have the ability to produce relatively brisk gains, and 
that's what we're looking for here.  Besides, we also like the 
bearish way it filled the gap from late May and produced a failed 
rally at the $55 level just a few days ago.

We will short FO once it trades below $52.06 (today's low), using 
a $55.17 buy stop.  We've placed this stop above a ridge of 
resistance and the 50-dma, offering this play plenty of time, and 
room, to drop to our official exit price of $45.02 (the 61.8% 
retracement of its Jan - May advance). Please note that there is 
a bit of support at the psychological $50.00 mark and the $49.25 
region, and we would not be surprised to see the stock rest here 
before subsequently dropping lower.  It may take a few weeks for 
exit price of 45.02 to be reached, so traders will need to 
maintain a bit of patience.

Picked on June xth at $xx.xx <- see text
Gain since picked:     +0.00
Earnings Date       04/18/02 confirmed
 




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

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

DaimlerChrysler - DCX - cls: 47.54 chg -0.65 stop: 46.72

Whoa...Close call!  Following a loss of about 1% on the German 
DAX, DCX gapped lower this morning and dropped below the 50-dma 
($46.99).  Shares came within just one cent of our stop loss and 
then proceed to rally with the broader market in afternoon 
trading.  It's encouraging to see another successful test of the 
50-dma, albeit one that almost hit our stop-loss.  Traders can 
continue to evaluate entries on a move over the relative high of 
$50.88 or another bounce from the $47 level. 

Picked on May 6th at $46.50 
Gain since picked:    +1.04
Earnings Date      02/20/02 (confirmed)



 
---  

Oxford Health - OHP - close: 49.05 change: +1.45 stop: 46.48

Our long play in OHP was triggered this morning after shares rose 
above our action point at $48.64.  Helping to drive the stock to 
new all-time highs was the company's announcement that it had 
increased its enrollment projections for the year, forecasting 6% 
growth.  The previous projection was for 4% growth.  OHP also 
benefited from bullishness in the HMO Index (Healthcare Index), 
which set a near-term high and tacked on nearly 2%.  Not 
surprisingly, OHP encountered psychological resistance at the $50 
level.  But considering the positive news, sector strength, and 
uptrending oscillators, odds are good that OHP will continue to 
move higher.  A move over $50.00 could provide traders with a 
chance to open new bullish positions.  A pullback to the $48 
level could also yield an entry point.  Our stop-loss is set at 
$46.48.  Longer-term traders may want to keep their stops under
the 50-dma.


Picked on June 7th at $48.64
Change since picked:   +0.41
Earnings Date       05/01/02 (confirmed)




---

RJ Reynolds - RJR - close: 68.54 change: -0.17 stop: 67.94

RJR traded in lackluster fashion today after last night's news 
that the company had been fined $20M for violating the 1998 
tobacco settlement.  After bouncing from the 50-dma ($68.24) in 
morning trading, shares spent most of the session trading in a 
narrow range near $68.70.  Although it's nice to see a successful 
test of the 50-dma, the bearish MACD crossover and plummeting 
daily stochastics (5,3,3) indicate that RJR may suffer some 
additional selling in the near-term.  Thus, traders thinking 
about entries at current levels may want to wait for the 
stochastics to rebound from the oversold region.  However, if 
the bounces from the 50-dma in April and May are any indication, 
this dip could prove to be a buying opportunity.

Picked on May 30th at $70.34
Change since picked:   -1.80
Earnings Date       04/18/02 (confirmed)




---

Tenet Healthcare - THC - cls: 74.82 chg: +1.52 stop: 71.72 *new*

There's nothing like a positive news story to get a stock moving 
to the upside.  THC set an all-time high of $75.50 today after 
LEH speculated that the company might pre-announce May quarter 
results next week that could beat estimates by 5-7 cents, based 
on an improvement in operating margins.  The stock marched higher 
on the news, ultimately finishing with a gain of more than 2%.  
The action in the Healthcare Index is encouraging as well, with 
the HMO setting a new near-term high today.  Entries in THC could 
be evaluated on a move above $75.50, although traders getting 
long near current levels need to be aware of our profit-target 
near $80.00.  Also note that we're going to inch our stop up to 
$71.72, just under the rising 50-dma.  Longer-term traders may 
want to keep their stops under the $70 level.

Picked on May 29th at $72.98
Change since picked:   +1.84
Earnings Date       04/02/02 (confirmed)
 



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

Boeing Company - BA - cls: 42.76 chg: +0.80 stop: 43.55

BA finished off the week on a positive note, adding 1.9% and 
finishing at its highest close of the week.  This was likely due 
to the news that Boeing had won a contract from the Department of 
Transportation worth up to $1.37 billion over five years.  BA 
would install and maintain the new bomb detection machines for 
the airlines increased security. The stock came within 30 cents 
of our stop this afternoon, but was unable to maintain the $43 
level.  With the daily stochastics (5,3,3) and MACD beginning to 
curl higher, we would not recommend entries at current levels.  
The best approach would be to wait for BA to reverse course and 
fall under the 200-dma at $41.48.

Picked on May 21st at $44.35
Gain since picked:     +1.59
Earnings Date       07/18/02 (unconfirmed)
 



--- 

Biosite, Inc. - BSTE - close: 26.49 change: -0.31 stop: 27.94

BSTE underperformed the broader market indices today with a 1.1% 
decline.  Our short play was activated after shares dipped below 
the Tuesday low of $29.30.  BSTE actually dipped as low as $25.58 
but received a boost from the rising broader market in late-day 
trading.  Now that we're triggered, our stop is set at $27.94.  
Less conservative traders may want to place their stops above 
$28.00.  Today's new relative low bodes well for an eventual 
retest of the $23, as does the stock's relative weakness.  
Traders can consider shorting BSTE on a move below today's low.

Picked on June 7th at $26.29
Gain since picked:     -0.20
Earnings Date       04/22/02


 

---

Danaher Corp. - DHR - cls: 69.56 chg: +0.86 stop: 71.65

After briefly trading under the $68 level this morning, DHR 
trended steadily higher for the rest of the session.  The recent 
sideways action is a bit frustrating.  Bulls just don't seem 
willing to allow a test of the near-term low at $67.31.  Even 
with today's violation of the weeklong trend of higher lows, 
buyers stepped in and propelled the stock to a gain of 1.25%.  Of 
course, this may be due more to the afternoon rally in the 
broader market rather than stock-specific bullishness.  Given the 
rising daily stochastics and MACD, we would not recommend new 
entries at current levels.  Considering the decent volume today 
and the MACD looking like it wants to produce a bullish 
crossover, we'd be careful.  However, if shares continue higher 
next week traders could target failed rallies at the 50-dma 
($71.14).  Traders could use the $70 mark as an early warning 
system.  DHR failed to get over this level all week and a move 
above it this next week may be a bad sign for the bears.

Picked on May 13th at $69.03
Gain since picked:     -0.53
Earnings Date       04/18/02 (confirmed) 




--- 

Furniture Brands - FBN - cls: 35.91 chg: +0.33 stop: 37.03 *new*

In last night's update we adjusted our entry strategy to take 
advantage of the coiling pattern in FBN.  Specifically, we placed 
an action trigger at $35.12, just below the Wednesday low.  With 
shares dropping to $35.00 this morning, our short play was 
activated.  This weakness had us hoping for a decline to the 
Tuesday lows, but shares bounced from the $35 level and rallied 
with the Dow Jones in afternoon trading.  This isn't too 
concerning, especially considering that shares were unable to 
close over the $36 level.  Next week we'll be watching for a 
break below $35.00 to set the stage for a test of the near-term 
low at $34.40.  More conservative traders may want to wait for 
shares to close under or trade under $34.40 before initiating new 
positions.  Furthermore, keep an eye on the 200-dma near $32.  
This could be support and short-term traders will probably want 
to take profits near it.

Please note that we have raised our buy stop about one percent, 
to $37.03.  We have done this to provide this trade with a little 
extra "maneuvering" room so that it can produce the profitable 
breakdown we still anticipate.  

Picked on June 7th at $35.12
Gain since picked:     -0.79
Earnings Date       04/24/02 (confirmed)






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

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

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

Johnson Controls - JCI - close: 83.31 change: +1.57 stop: 79.94

Company Description:
Johnson Controls, Inc., is a global market leader in automotive 
systems and facility management and control. In the automotive 
market, it is a major supplier of seating and interior systems 
and batteries. For nonresidential facilities, Johnson Controls 
provides building control systems and services, energy management 
and integrated facility management. Johnson Controls, founded in 
1885, has headquarters in Milwaukee, Wis. Its sales for 2001 
totaled $18.4 billion (source: company website)

Why We Like It:
After a solid multi-week uptrend, the automotive sector was hit 
with heavy selling early this week on less-than-expected May auto 
sales data.  JCI really took it on the chin, plummeting below the 
$85 level and dropping all the way to its 200-dma.  The recent 
lows above the 200-dma and today's bounce from that level is what 
has earned JCI a spot on our Play List.  Not only do we like the 
successful test of the 200-dma ($80.73), but the p-n-f chart also 
shows support at the psychologically important $80.  We think 
it'll take a serious effort on the part of the bears to break 
this level.  The daily stochastics (5,3,3) are also showing signs 
of life after an extended stay below its oversold reference line.  
With the downside limited by our stop at $79.94 (barring a large 
gap lower), this play offers a nice risk/reward setup.  We're 
targeting a move to $91.74, just under the relative high.  This 
would be a gain of roughly 10% from current levels. Traders 
should note that the 50-dma is at 88.25, and it could serve as 
resistance once the stock reaches this level. Due to the fact 
that it has yet to completely break out of its most recent 
downtrend, we consider JCI a high risk/reward play (not to 
mention the weakness in the auto-parts sector).  Fortunately, 
we're not only buying at technical support (200-dma) and price 
support ($80) but we're also buying near the PnF support.  JCI 
has pulled back to the PnF bullish support line and that can be 
painful for the bears attempting to short the breakdown.

Picked on June 7th at $83.31
Gain since picked:     +0.00
Earnings Date       07/18/02 (unconfirmed)
 



--- 

Tractor Supply - TSCO - close: 59.55 change: +3.24 stop: *text*

Company Description:
Since its founding as a mail order tractor parts business in 
1938, Tractor Supply Company has grown to be the largest operator 
of retail farm stores in America, supplying the daily farm and 
ranch maintenance needs of their target customers: hobby, part-
time and full-time farmers and ranchers, as well as suburban 
customers, contractors and tradesmen. (source: company website)

Why We Like It:
You're probably familiar with the age-old market axiom that 
states "the trend is your friend."  Well, we've found a very 
friendly trend with TSCO.  The stock has marched steadily higher 
since September, with its 50-dma offering consistent and reliable 
support.  What prompted us to add the stock to our Play List 
tonight is the seemingly imminent breakout above $60.00.  Shares 
briefly traded above this level today after USB Piper Jaffray 
initiated coverage with a "Strong Buy."  Investors applauded the 
news, pushing TSCO to a gain of 5.7% on more than double the 
average volume.  This created a triple-top buy signal on the p-n-
f chart.  On another technical note, the MACD has begun to curl 
higher and could signal a bullish crossover in a matter of days.  
Historically this has been a forbearer of large gains in TSCO.  
Our entry strategy is as follows: We're initially placing a 
trigger to go long at $60.21, just above today's high.  This will 
ensure that TSCO is trading at all-time highs before we take any 
positions.  However, a pullback to the $55 level would also offer 
a favorable entry point with the 50-dma offering underlying 
support.  We may consider moving our trigger price lower if 
shares bounce near $55.  If shares do move above our current 
trigger we'll place our stop at $54.15, just under the rising 50-
dma.  We'll initially be targeting the $70 level, although we 
might consider taking our gains off the table if shares falter 
near $65.  Note that due to its relatively light average daily 
volume of only 91K shares, we've placed TSCO in the high 
risk/reward session.

Picked on June xth at xx.xx <- see text
Change since picked:  +0.00
Earnings Date      07/15/02 (confirmed)
 




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

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

Amdocs Ltd - DOX - close: 17.16 change: -0.65 stop: 18.86

DOX got whacked for a 3.6% loss today on extremely strong volume 
of 8M shares.  We couldn't find any news to explain it, but a 
glance at the intraday volume readings shows that a monster trade 
of 2.6M shares went off shortly after 12:40.  In any case, this 
short play is off to a good start.  DOX is trading at near-term 
lows and has begun to fall from the top of its descending 
channel.  It was also encouraging to see that DOX was practically 
oblivious to the afternoon tech rally.  New entries can be 
evaluated on continued weakness.  Note that we're changing our 
picked price to $17.50 to reflect the gap lower this morning.

Picked on June 6th at $17.50 
Gain since picked:     +0.34
Earnings Date        4/23/02 (confirmed)




---

Intermet Corp. - INMT - cls: 9.05 chg: +0.01 stop: 9.61

Not much new to report for INMT.  Although the stock traded a new 
relative low of $8.66 this morning, shares quickly rebounded back 
above the $9.00 level and traded in a narrow range for the rest 
of the day.  The daily chart continues to look bearish, and 
traders may want to consider new entries on a break below today's 
low.  If shares continue lower next week we'd expect some support 
to emerge in the $8.00-$8.50 region.  A break below this level 
would lead us to initiate a profit-target near $6.50. 

Picked on June 6th at $9.48 
Gain since picked:    +0.43
Earnings Date       04/11/02 (confirmed)


 

--- 

Swift Energy - SFY - close: 14.03 change: +0.33 stop: 14.27

We didn't have to wait long to get triggered in SFY.  The stock 
quickly fell below our action point at $13.69 this morning, 
activating this short play with a stop at $14.27.  Unfortunately 
the bearishness was short-lived.  Of all the sectors that we 
monitor, the OSX (Oil Service Index) posted the largest gain.  
SFY mirrored the sector action and rose steadily for most of the 
session, ultimately finishing with a gain of 2.4%.  Not a bad 
rally...but is it sustainable?  We doubt it.  The trend in SFY is 
still decidedly bearish, with the stock setting a new multi-year 
low today and the MACD about to produce a bearish crossover.  
Keeping in mind that our profit-target is at $12.15, traders can 
consider new entries on a move below the $14.00 level or today's 
low of $13.55.

Picked on June 7th at $13.69
Gain since picked:     -0.34
Earnings Date        05/01/02 (confirmed)





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

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

Providian Financial - PVN - cls: 7.05 chg: -0.26 stop: 6.99

The technical weakness we alluded to in last night's update was 
exacerbated by this morning's broader market decline.  Shares of 
PVN gapped below our stop-loss at $6.99, thus closing out our 
short play at the opening trade of $6.95.  This represents a loss 
of 9.2% from our original entry point.  Because a failure to 
rebound from the $7.00 level could lead to a retest of the May 
lows, we would not be looking to buy this dip.

Picked on May 22nd at $7.66
Gain since picked:    -0.71
Earnings Date      05/06/02 (confirmed)






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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
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The Premier Investor Network.
Do not duplicate or redistribute in any form.
PremierInvestor.net Newsletter         Weekend Edition 06-07-2002
                                                   Section 3 of 3
Copyright © 2002, All rights reserved.
Redistribution in any form is strictly prohibited.

The entire newsletter is best viewed in COURIER 10 for alignment
=================================================================
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http://www.PremierInvestor.net/htmlemail/f07b_3.asp
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In section three:

Market Watch for Week of June 10th
   - Major Earnings
   - Stock Splits
   - Economic Reports

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

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



==================================================
Market Watch for the week of June 10th
==================================================

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

Symbol  Company               Date           Comment      EPS Est

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

RYAAY  Ryanair Holdings       Mon, Jun 10  Before the Bell   0.18

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

None

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

HRB    H & R Block            Wed, Jun 12  After the Bell    2.44

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

ADBE   Adobe Systems          Thu, Jun 13  -----N/A-----     0.25
HNZ    Heinz                  Thu, Jun 13  Before the Bell   0.62
SIGY   Signet Group           Thu, Jun 13  Before the Bell   0.38

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

AEP    American Electric Pwr  Fri, Jun 14  After the Bell    0.90

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

Symbol  Company Name              Ratio    Payable     Executable

AWR     American States Water     2:1      06/07       06/10
FOSL    Fossil, Inc.              3:2      06/07       06/10
ATK     Alliant Tech              3:2      06/10       06/11
SABB    Pacific Capital           4:3      06/10       06/11
APPB    Applebees                 3:2      06/11       06/12
IFIN    Investors Fincl. Srvcs    2:1      06/13       06/14
WTRS    Waters Instruments        3:2      06/14       06/17
OZRK    Bank of the Ozarks, Inc.  2:1      06/14       06/17
MI      Marshall & Ilsley         2:1      06/14       06/17
ALFA    Alfa Corp                 2:1      06/14       06/17
SGA     Saga Communications       5:4      06/15       06/17
HCBK    Hudson City Bancorp       2:1      06/17       06/18
WL      Wilmington Trust          2:1      06/17       06/18
YUM     Tricon Global Restaurants 2:1      06/17       06/18
PMI     PMI Group, Inc.           2:1      06/17       06/18
MHO     Schottenstein Homes       2:1      06/18       06/19
KSWS    K-Swiss Inc.              2:1      06/21       06/24
JNC     John Nuveen Co            2:1      06/21       06/24


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

Earnings are finally out of the way. So look for investors  to 
concentrate on this week's indications of economic activity. 
Although the Federal Reserve releases its "Beige Book" report on
Wednesday, more influential reports will be presented on Thursday
(PPI & Retail Sales).  Don't forget, though, that Friday will
shoulder the bulk of potentially market-moving data: Industrial
Production, Capacity Utilization, Business Inventories and Consumer
Sentiment. 

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

Monday, 06/10/02
----------------
None

Tuesday, 06/11/02
-----------------
None

Wednesday, 06/12/02
-------------------
Export Prices ex-ag. (BB)May  Forecast:    N/A  Previous:    0.3%
Import Prices ex-oil (BB)May  Forecast:    N/A  Previous:    0.4%
Fed’s Beige Book (DM)

Thursday, 06/13/02
------------------
Initial Claims (BB)    06/08  Forecast:    N/A  Previous:    383K
PPI (BB)                 May  Forecast:   0.1%  Previous:   -0.2%
Core PPI (BB)            May  Forecast:   0.1%  Previous:    0.1%
Retail Sales (BB)        May  Forecast:   0.0%  Previous:    1.2%
Retail Sales ex-auto (BB)May  Forecast:   0.3%  Previous:    1.0%

Friday, 06/14/02
----------------
Business Inventories (BB)Apr  Forecast:  -0.2%  Previous:   -0.3%
Industrial Production(DM)May  Forecast:   0.4%  Previous:    0.4%
Capacity Utilization (DM)May  Forecast:  75.6%  Previous:   75.5%
Mich Sentiment-Prel. (DM)Jun  Forecast:   97.0  Previous:    96.9


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



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

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


Value Plays With Bullish Signals 
--------------------------------- 
Ticker  Company Name               Close     Change 

ABK     Ambac Financial Group      68.44     +1.14
PRX     Pharmaceutical Resources   26.20     +1.29
MTH     Meritage Corp              42.20     +1.25

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

MAXS    Maxwell Shoe Co            14.25     +0.73
UFI     Unifi Inc                  11.12     +1.75
PRW     PracticeWorks Inc          17.51     +1.49
SNIC    Sonic Solutions             9.70     +1.15

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

UNH     UnitedHealth Group Inc     94.39     +2.89
THC     Tenet Healthcare Corp      74.82     +1.52
CVH     Coventry Health Care Inc   33.85     +1.59
YCC     Yankee Candle Co Inc       24.60     +2.76
BOBE    Bob Evans Farms Inc        32.52     +1.36
HOV     Hovnanian Enterprises      34.73     +1.56
NCEN    New Century Financial      28.89     +3.27

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

TXN     Texas Instruments Inc      26.40     -1.29
INTC    Intel Corp                 22.00     -5.00
AXP     American Express           39.16     -1.20
AMGN    Amgen Inc                  41.25     -1.54
SWY     Safeway Inc                37.70     -1.02
COX     Cox Communications         29.84     -1.47

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

ASA     ASA Ltd                    34.75     -2.41
FB      FBR Asset Investment       32.92     -1.08





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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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