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Daily Newsletter, Friday, 07/05/2002

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PremierInvestor.net Newsletter          Weekend Edition 07-05-2002
                                                    section 1 of 3
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In section one:

Market Wrap:      The Fourth Fuels Frenzied Friday Free-for-All 
Play-of-the-Day:  Shooting the Gap
Watch List:       AAPL, ORCL, YHOO, FITB, EMC, MMM, and tons more!
Market Sentiment: Summer Of the Bull?


******************************************************************
MARKET WRAP  (view in courier font for table alignment)
******************************************************************
WE 7-05          WE 6-28          WE 6-21          WE 6-14   
DOW     9379.50 +136.24  9243.26 - 10.53  9253.79 -220.42  -115.46   
Nasdaq  1448.36 - 16.58  1464.96 + 24.01  1440.95 - 63.79  - 30.74
S&P-100  492.66 +  2.54   490.12 +   .70   489.42 - 12.34  -  5.56
S&P-500  989.03 -   .79   989.82 +   .69   989.13 - 18.14  - 20.26
W5000   9313.40 - 70.63  9384.03 -  5.95  9389.98 -159.74  -202.97
RUT      440.92 - 21.74   462.66 +  1.59   461.07 +  2.00  - 11.44
TRAN    2652.64 - 77.68  2730.32 - 25.32  2755.64 + 82.50  - 13.52  
VIX       30.21 +  1.08    29.13 -  2.15    31.28 +  1.35  +  3.28
VXN       56.28 -  1.67    57.95 -  1.35    59.30 +  3.63  +  3.43
TRIN       0.28             1.18             2.01             1.34
Put/Call    .77              .66             1.27             1.15 
******************************************************************


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

The Fourth Fuels Frenzied Friday Free-for-All

A relatively uneventful Fourth of July holiday in the U.S. sent 
shorts covering in a hurry Friday morning.  The markets rocketed 
higher with the venerable Dow Jones Industrial Average gaining 
324 points and closing at 9379 for a +3.58% move.  This is the 
biggest point gain in the DJIA since Sept. 24th, 2001 when the 
Dow gained 368 points bouncing off the Sept. lows.  The NASDAQ 
was not to be out done and added 4.9% to gain 68 points and 
closing at 1448 after bears frantically covered positions in the 
beaten down tech sectors.  Volume was decent given the shortened 
trading sessions.  The NYSE recorded 818 million shares trading 
and the NASDAQ saw 735 million shares with WCOME accounting for 
371M shares.  Market breadth was incredibly positive with 2442 
advancing issues trouncing 551 decliners on the NYSE and 2288 
advancers overpowering 794 decliners on the NASDAQ.  

Matter of Opinion.

The markets may have felt that the U.S. survived the holiday 
without terrorist incident but a shooting at LAX airport on the 
fourth left two people dead.  A 41-year old Egyptian man opened 
fired at an El Al ticket counter killing two before being shot 
dead by El Al security.  El Al is the Israeli-government operated 
airline carrier and Israel's Foreign Ministry is calling the 
event a terrorist attack but American officials were not willing 
to make that call and instead are painting the incident as a 
possible hate crime.  Some speculators see this as nothing short 
of amazing - that the markets could overlook an "attack" at a 
U.S. airport and not react negatively when the markets opened 
again.  Have we become too desensitized that only a large loss of 
life will capture our attention -- or -- more likely the nation 
was just relieved that nothing "big" did occur?

Will It Last?

The U.S. markets were not the only ones up today.  Both the 
European averages and the Asian market indices rallied higher 
although the bounce in the European and U.S. markets is merely 
being hailed as a technical relief rally.  The big news this 
morning was the U.S. employment report.  Unemployment did rise to 
5.9% as was expected but the number of new jobs was 
disappointing.  Economists had been looking for an increase of 
68,000 to 80,000 new jobs but the number came in very low around 
36,000.  Investors ignored the lackluster job growth and focused 
mainly on covering short positions, now that the holiday had 
passed without major incident, and potential bargain hunting 
since many sectors were extremely oversold leading up to Friday's 
session.

Chart of the Dow Jones Industrials


 

Chart of the NASDAQ Composite


 

Chart of the S&P 500 Index (3 different views)



  
Can It Get Any Worse for Telecom?

Shares of fallen telecom giant WorldCom (WCOME) traded 371 
million shares on Friday's shortened session.  The stock ended 
the week at $0.25 after reopening for trading on Monday and 
falling to $0.06 five days ago.  Shares rallied three cents or 
13.6% today despite news that this could have been the last day 
for trading as a listed stock.  The NASDAQ board was meeting on 
Friday to decide on whether to banish the WorldCom to the OTC 
pink sheets.  The company was saddled with additional bad news 
that the Justice department had asked WCOME to halt its own 
internal inquiry so the government could do their own first.  
Fortunately this was countered with good news that bondholders 
were strongly considering a debt swap for equity, which was seen 
as a vote of confidence that the company might survive.

Denial seems to be a growing part of Qwest's repertoire.  The 
company is already under two SEC investigations regarding its 
billing and accounting practices but now the WSJ is claiming the 
Justice dept. has launched a criminal investigation.  Qwest 
denies it is facing any criminal investigation and felt it was 
"outrageous" that the company would hear of it through the media 
first.

Software & Chips Bounce Higher Despite News

The software sector, which has been plagued by a rash of earnings 
warnings and downgrades all week, continued to see companies 
filing into the confessional booth.  Hoping that many investors 
might not notice due to the holiday, JDA Software (JDAS) and 
webMethods (WEBM) both warned for the quarter.  Shares of JDAS 
were hit for a 44% penalty and closed at $15.10, down $11.90, 
after telling investors that the company now expects to earn 17 
to 18 cents a share for the quarter.  Consensus estimates had 
been for 22 cents a share. The company blamed a number of big 
contracts failing to close by the end of the quarter.  Also 
pointing to a lack of customers willing to sign deals was 
webMethods.  WEBM warned that earnings would be a loss of 3 to 5 
cents a share compared to the guidance just last April of break-
even to a profit of 1 cent a share.  Oddly, shares of WEBM closed 
higher on the session, adding 2.69% to close at $8.35.  The 
Software index was also unaffected by the negative news and 
joined the broader markets for a strong rally.  The GSO.X added 
4.97% to close 111.25.  Monday-Tuesday should be key for the 
group as the index closed right at the top of its descending 
channel.

Leading the short-covering frenzy was the semiconductor sector. 
The SOX.X added over 8% after Goldman Sachs came out with 
positive comments on Asian technology stocks and singled out DRAM 
chip maker Samsung Electronics as its best bet.  It was only 
Tuesday that Morgan Stanley had thrown a wet blanket on the 
entire group citing the turnaround was in question and earnings 
forecasts were out of line.  It seems bulls and bears have a weak 
memory as stocks like Intel rallied 10% on the shortened trading 
session.

Chart of the SOX




Next Week

Overall, we're very thankful that the recent holiday has been a 
safe one.  The positive reaction in the markets today were not a 
surprise but the magnitude of the move was.  The size of Friday's 
rally could minimize what was to be a relief rally on Monday.  We 
would expect the short covering to continue into Monday morning 
but momentum could slow as early as Monday afternoon.  Now doubt 
there are bears just waiting to pounce on the first sign of 
weakness.  

The biggest challenge to any market recovery in the near future 
is earnings season.  Earnings begin to roll in next week and 
start to pick up speed around Wednesday.  While no one expects 
the numbers to be good for anything tech related the key will be 
guidance.  If companies do not offer any sort of positive 
guidance or if they continue waffling on news of a recovery then 
the bearish down trend should reassert itself quickly.  The I.T. 
sector has already pulled the plug on a second half recovery so 
expect a lot of references to business being better in the fourth 
quarter or even 2003. 

Any true reversal to this bear market is going to require volume 
and we doubt that is going to occur any time soon.  The retail 
investor has removed themselves from the markets given their 
lousy performance and the crisis of confidence in corporate 
governance.  On the other hand, traders should be able to profit 
from the volatile moves that will continue to be characteristic 
of any bottom building.  Before I close, consider this - for 
months we have heard that a retest of the September lows were 
necessary and furthermore a lower low may need to be set.  Well, 
Tuesday-Wednesday this week was a lower low for the SPX and the 
Nasdaq composite.  With several additional indices hitting multi-
year lows and bouncing it is possible that a decent short-term 
bottom is at hand.  The key will be where buyers decide to step 
in next week and stop the profit taking that will occur after 
this big bounce is over.  

Next week ought to be interesting so enjoy your weekend.

- James


=========================
Play-of-the-Day (BULLISH)
=========================
(( new High-Risk/Reward long play ))

Genzyme Corp - GENZ - close: 19.86 change: +1.75 stop: *text*

Company Description:
Genzyme General develops and markets therapeutic products and 
diagnostic products and services. Genzyme General has five 
therapeutic products on the market and a strong pipeline of 
products in development focused on the treatment of genetic 
disorders and other chronic debilitating diseases with well-
defined patient populations. Genzyme General is a division of the 
biotechnology company Genzyme Corporation. (source: company 
website)

Why We Like It:
The biotech sector has been hammered in recent months as the lack 
of cash-producing drugs and a plethora of FDA rejections has 
caught up with related stocks.  The long-term fundamental picture 
for the biotech group remains very uncertain, and we're not about 
to make an upside prediction.  That's why this is purely a 
technical play.  We're adding GENZ to our Play List tonight in an 
effort to capture a breakout.  The stock is approaching the 
bottom of the large gap from June 20th.  Shares fell after the 
company warned that slower-than-expected sales of its kidney 
drug, Renagel, would have an adverse impact on the bottom line.  
We think GENZ is poised to fill this gap and quickly move up to 
the $25.00 level.  Specifically, we're going to place an exit 
price at $24.89.  We'll close the play if GENZ trades at or above 
this level.  Shares have posted substantial gains in the past two 
sessions, but the uptrending MACD and daily stochastics (5,3,3) 
indicate there's plenty of upside remaining.  A trade at $21.00 
will also create a double-top buy signal on the point-and-figure 
chart.

Our entry strategy will be as follows: We won't go long until 
shares beginning filling the gap.  This means our entry trigger 
is located at $20.36.  However, note that we WILL NOT enter the 
play if for some reason the stock gaps above $20.50.  If 
triggered, we'll use a 10% stop at $18.33.  This is also safely 
under today's low.  Note that when playing a biotech stock, 
traders need to always be aware of the possibility of large gaps 
up or down.  FDA drug rejections/approvals, 
successful/unsuccessful trials, and product revenue announcements 
can all have a major impact on the stock price.  Odds are that 
won't be the case during our play, but tell that to investors who 
were long GENZ on June 20th!  It's just something to keep in mind 
when deciding how much of your speculative capital to use on 
these sort of trades.  Also, because GENZ announces earnings 
before the bell on July 17th, we will probably close this play by 
the end of trading on July 16th.

Picked on July xth at $xx.xx <- see text
Gain since picked:     +0.00
Earnings Date       07/17/02 (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
---------------------------------

Apple Computer - AAPL - close: 18.71 change: +1.16

WHAT TO WATCH: Maybe all those anti-PC commercials are working.  
AAPL exploded out of a two-week consolidation today with a 6.6% 
gain.  The stock is now in the process of filling the gap left on 
June 18th when the company lowered Q3 guidance.  The uptrending 
MACD and daily stochastic oscillators suggest AAPL may reach the 
top of this gap at $20.15.  Entries can be gauged on a move above 
today's high ($18.75) or a pullback to $18.00.  The first 
strategy is best left to aggressive short-term traders.




---

Harris Corp. - HRS - close: 34.08 change: -0.41

WHAT TO WATCH: HRS tends to be a slow mover, but shares have 
dropped relatively quickly since falling below the 50-dma on June 
26th.  This occurred despite news the previous day that the 
company had received a $200M contract from the government.  The 
recent pullback has taken HRS to its 200-dma.  Shares bounced 
from below this moving average in February.  This may be the case 
again, but the failure of shares to rally with the Dow Jones 
today indicates that a possible breakdown is in the cards.  Watch 
for a move below the Thursday low of $33.74 to provide bearish 
confirmation.  However, if a bounce does materialize, aggressive 
traders could go long on a move above $35.18.




--- 

Oracle Corp - ORCL - close: 10.05 change: +0.50

WHAT TO WATCH: We'd be remiss if we didn't make a mention of ORCL 
on tonight's watch list.  On Friday shares closed above $10.00 
for the first time since April 30th.  The stock has bounced 
sharply over the past two sessions, but the daily stochastics 
(5,3,3) have not yet reached overbought levels.  The p-n-f chart 
is also displaying a fresh double-top breakout.  ORCL could 
quickly reach the $11-$12 region if the NASDAQ continues to rally 
next week.  Aggressive traders can target entries on a move 
higher from current levels.




---

Yahoo! Inc. - YHOO - close: 13.62 change: +0.84

WHAT TO WATCH: Here's one to keep in mind if today's short-
covering tech rally carries over into next week.  YHOO has 
already bounced sharply from its recent low of $11.66, but there 
is resistance right at the $14 mark.  A breakout over $14 and 
shares could run to the 200-dma just under $16.  A rollover from 
the $14 region would present an attractive short opportunity.  
But we'd also consider a rollover from the $15 mark, where shares 
found resistance in late June.  Yahoo announces their Q2 earnings 
next week on Wednesday.




---

Fifth Third Bancorp - FITB - close: 67.27 change: +1.73

WHAT TO WATCH: This banking stock has really been demonstrating 
relative strength versus the broader markets.  The bounce off its 
200-dma in mid-June has been followed up by a series of higher 
lows despite the market volatility.  Friday's move over the $67 
mark looks like a potential breakout but we'd wait for a move 
over $67.50 before going long.  Our initial target would be a 
quick move to the $69.75 level, as $70 has been tough resistance.




---

Rohm & Haas - ROH - close: 41.55 change: +1.65

WHAT TO WATCH: This chemical company has been trending higher the 
last couple of weeks and Friday's rally gave it enough fuel to 
punch higher through resistance near $41.  Unfortunately for the 
bulls, the stock has additional resistance, its 52-week high, 
near $42.50.  However, ROH might be able to break out again and 
tag new highs.  We'd look for a dip to the 40.75 to 41.00 area as 
an entry point or a breakout over $42.50.




---

E M C Corp - EMC - close: 7.59 change: +0.21

WHAT TO WATCH: How the mighty have fallen.  Previous high-flyer, 
EMC, had sunk to lows south of $6.00 just a few sessions ago.  
Now the stock has bounced back over the 50-dma near $7.60.  Given 
a potential follow through in the NASDAQ aggressive traders may 
want to keep an eye on a bounce at $7.50 or a move over the $8.00 
mark.  Once above the $8 level of resistance, shares could rally 
towards the 9.75 to 10.00 levels pretty quickly (assuming a 
cooperative market).




---

Hutchinson Technology - HTCH - close: 16.30 change: +1.17

WHAT TO WATCH: This disk-drive company appears to have attracted 
some bottom fishers.  Shares "appear" to have bottomed at the 
$14.50 level over the last few weeks while fighting with 
resistance at $16.00.  Friday's strong rally helped push HTCH 
over this level and stopped dead at its 50-dma.  A bounce at 
$16.00 might be an entry point while more aggressive traders 
might consider a move higher above the 50-dma.  We'd look for a 
short-term profit target of $18.00.




---

FalconStor Software - FALC - close: 5.00 change: +0.19

WHAT TO WATCH: Here's another one that has attracted some bottom 
fishing recently.  The stock has "bottomed" near the $4.00 level 
over the last few weeks while rolling over at resistance at 
$5.00.  A move over $5.00 would make an easy trigger point for a 
bullish play and we'd target a short-term move to $6.00, its next 
major resistance level.  Otherwise, wait for the next bounce at 
$4.00.




---

3M Company - MMM - close: 129.87 change: +3.77

WHAT TO WATCH: MMM has been one of the leaders in the Dow Jones 
Industrials for a while.  Shares bounced strongly off the $120 
level recently and are now battling resistance at $130.  A move 
above $130 could be an active trader's trigger point for a short-
term bullish move.  




---

Abitibi-Consolidatd - ABY - close: 9.35 change: +0.07

WHAT TO WATCH: ABY has been consolidating under the $9.50 level 
for months.  After hitting  a low of $8.19 in mid-May the stock 
has been slowly building on a pattern of higher lows.  This 
coiling action should eventually breakout into a bullish move 
higher above resistance.  We'd consider a move over $9.50 as a 
possible trigger point while more conservative traders might want 
to wait for a move over $9.60.  





------------
RADAR SCREEN 
------------

HRB  - Nice move higher on Friday.  Consolidation may be over. 
Initial target could be $50 to $51.  Consider a trigger at 
$47.50.

PPG  - Another chemical company who's stock has been showing 
great relative strength.  A move over $62 could be a trigger to 
go long or a bounce at $60.

PG   - we've been watching PG for months.  It is now at the 
bottom of its ascending channel from April 2001.  This is a low 
risk entry with a stop under Wednesday's low of $87.  There is 
resistance at $90 and 50-dma near $91 but short-term target could 
be $95 with longer-term target near $100.

NKE  - We're amazed at the recent strength in NKE.  Stock has 
been coiling higher after its recent spike higher.  Friday's move 
put it above recent resistance at $56.  Consider a tight stop but 
target $60.

STM  - The chip sector may look short-term overbought but it's 
longer-term oversold.  STM hasn't rallied quite as much as some 
of its sector mates and could play catch up.  A trigger just 
above $25 could work well with a short-term target of $27.50.

SYMC - This software (security) stock has been bouncing between 
$29.25 and $34.00 for weeks.  The move on Friday put it above 
$34, its 200 & 50-dma's.  Aggressive bulls can consider positions 
now while some traders may want to wait for a move over $35.  Our 
initial target would be the $40 area.

NTT  - This Japanese telecom stock has been rising with the 
bullish trend in the NIKKEI 225  index.  The recent pull back 
found support near $20 and now shares are trading higher again.  
Friday's move put it back above the 50-dma.  Next level of 
resistance is $23.50.

NOK  - Another overseas telecom equipment maker, NOK has rallied 
right to resistance at $15.  Shares look a little extended here 
from its lows but have plenty of upside.  The next resistance 
level is $16.75.  Be careful if you play it.  Shares are prone to 
gapping at the open.


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

Summer of the Bull?
By Eric Utley

Not quite yet.  But Friday’s rally did do some constructive things
towards further upside this summer.  Just about everything went
the right way for the bulls.  The dollar was higher against the
majors; Treasuries were lower despite a weak jobs report; gold
was down; stocks were higher.

Just what sparked Friday’s rally is open for debate.  Clearly
there was a large shift out of one asset class and into another,
stocks being the other.  Perhaps the holiday set the tone for
Friday’s rally.  We could say that the bulls enjoyed a day of
Independence from the bears, a day long in the coming.  We can
only wait to see if the good feelings spread around Friday
carry over the weekend and into next week’s trading.  In the
meantime, let us take a look at the numbers.

Fear was crushed Friday.  The CBOE Market Volatility Index
(INDEX:VIX.X) fell back to the 30 level, which some consider a
key psychological level.  The VIX shed more than 3 points on the
day, which was a big move indeed!  The Nasdaq-100 Volatility
Index (INDEX:VXN.X) dropped by nearly 4 points.  The theme with
these to indicators has been the same all year.  When stocks
rise, fear falls.  There’s no doubt in any rally, which means
that there’s no wall of worry to climb.  That’s not to say
stocks can’t or won’t go higher in the face of a falling VIX,
but traditionally, we’ve seen pessimism in the face of a rally
when at a meaningful turning point in the market.  There was
no pessimism Friday.  Options traders reflected as much in the
put/call numbers.  All four of the markets that we track the
numbers for finished below 1.0 last Friday, which means more
calls traded than puts.  The equity only put/call ratio fell
to 0.51, meaning that twice as many calls traded as puts.  The
basic thinking here is that if everyone already bought into
Friday’s rally who was going to, then who’s left to carry
stocks higher?  That’s why skepticism is so important over
the intermediate to longer term.

Elsewhere, the bullish percent numbers showed some
improvement Friday, but did not by any means confirm the
action in the broader market.  The Nasdaq-100 Bullish
Percent (BPNDX) was by far the most active and benefited
the most from Friday’s rally by adding five stocks to
finish at 13 percent.  The bigger picture in the Nasdaq is
that it’s still oversold, but not in a bullish position.
What Friday’s rally did do is set forth the groundwork for
confirmation in the bullish percent numbers going into next
week’s trading.  We’ll track these developments closely.

All four of the ARMS Index numbers that we track are now
below the extreme oversold reading of 1.50, though only
by small amounts in each case.  It will be interesting to
see if these numbers continue to creep higher.  Of special
interest to me is the longer term 55-day number, which
finished last Friday at the 1.38 level.

The market internals were nothing short of super strong last
Friday with advancers far out pacing decliners.  The new
high/new low list was not nearly as bullish, as new lows
still beat new highs on both the NYSE and NASDAQ.  Volume,
as expected, was awfully light, which takes away from the
credibility of Friday’s rally, in my mind anyway.

The sector scorecard was decidedly green Friday, quite the
difference from what has been the routine as of late, when
most sectors have finished lower.  The Gold and Silver Index
(XAU.X) was the only sector on my list that finished lower
on the day, and being that gold equities are a defensive
bunch, it should come as no surprise that the XAU was the
leader to the downside.  And on a day when the Dow gained
more than 300 points, you just know who the bulls are going
to go to.  That’s right, the semis, which earned the day’s
best performing sector spot.

I hate to put a damper on what we observed Friday, but from
what the numbers say, we’ve seen this same type of action
this year, and last year.  It smells an awful lot like a
short covering rally that lacks the necessary attributes to
morph into anything meaningful.  But like the other head
fakes in the recent past, this rally has set the groundwork
for something bigger.  All we can do is continue to observe.

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

Market Averages

DJIA ($INDU)

52-week High: 11350
52-week Low :  8062
Current     :  9380

Moving Averages:
(Simple)

 10-dma: 9185
 50-dma: 9758
200-dma: 9814

S&P 500 ($SPX)

52-week High: 1316
52-week Low :  945
Current     :  989

Moving Averages:
(Simple)

 10-dma:  977
 50-dma: 1044
200-dma: 1099

Nasdaq-100 ($NDX)

52-week High: 2071
52-week Low : 1089
Current     : 1061

Moving Averages:
(Simple)

 10-dma: 1026
 50-dma: 1173
200-dma: 1395


Semiconductors ($SOX)

The semis led the charge in the technology sector Friday.
The SOX was the best performing sector for the day.  It
gained 8.27 percent for the day.

Leading SOX components included Novellus Systems
(NASDAQ:NVLS), LSI Logic (NYSE:LSI), Teradyne (NYSE:TER),
Applied Materials (NASDAQ:AMAT), and Broadcom (NASDAQ:BRCM).

52-week High: 657
52-week Low : 343
Current     : 393

Moving Averages:
(Simple)

 10-dma: 379
 50-dma: 463
200-dma: 510


Gold ($XAU)

As stocks shot higher Friday, investors fled gold
equities.  But that’s been the pattern over the last few
weeks, a pattern of inverse relationship.  The XAU was the
worst performing sector Friday with its 1.03 percent drop.

Only half of the XAU components finished lower Friday, but
they were enough to weigh down the index.  They were
Newmont Mining (NYSE:NEM), Meridian Gold (NYSE:MDG), Agnico
Eagle Mines (NYSE:AEM), Barrick (NYSE:ABX), and Anglogold
(NYSE:AU).

52-week High: 89
52-week Low : 49
Current     : 70

Moving Averages:
(Simple)

 10-dma: 74
 50-dma: 79
200-dma: 64

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

Market Volatility

Triple digits in the Dow.  No stick in the VIX.  Same pattern
again and again.  It’s not so much the absolute level of the
VIX that I’ve become concerned with, but rather its action
in relation to the rest of the market.  The VIX’s implosion
bodes poorly for stocks over the intermediate term, but it has
room to come down in the short term, which means stocks could
have room to run.

CBOE Market Volatility Index (VIX) - 30.21 -3.10
Nasdaq-100 Volatility Index  (VXN) - 56.28 -3.78

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

          Put/Call Ratio  Call Volume   Put Volume
Total          0.77        301,374       231,944
Equity Only    0.51        235,288       121,204
OEX            0.92         26,260        24,188
QQQ            0.66         20,876        13,890

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

Bullish Percent Data

           Current   Change   Status
NYSE          46      + 0     Bull Correction
NASDAQ-100    13      + 5     Bear Confirmed
DOW           30      + 3     Bull Alert
S&P 500       34      + 1     Bear Confirmed
S&P 100       31      + 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  1.41
10-Day Arms Index  1.45
21-Day Arms Index  1.43
55-Day Arms Index  1.38

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       2169           782
NASDAQ     2313           808

        New Highs      New Lows
NYSE        32             35
NASDAQ      22             55

        Volume (in millions)
NYSE     793
NASDAQ   1,119

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

Commitments Of Traders Report: 06/25/02

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

Commercial interests added back about 10,000 contracts to their
net bearish position.  Small traders dropped a number of longs
and a smaller number of shorts for a reduction in their net
bullish position by more than 20,000 contracts.

Commercials   Long      Short      Net     % Of OI 
06/11/02      388,751   457,018   (68,267)   (8.1%)
06/18/02      437,530   487,956   (50,426)   (5.4%)
06/25/02      378,214   438,775   (60,561)   (7.4%)

Most bearish reading of the year: (111,956) -   3/6/02
Most bullish reading of the year: ( 36,481) - 10/16/01

Small Traders Long      Short      Net     % of OI
06/11/02      174,357    69,464   104,893     43.0%
06/18/02      181,178    88,517    92,661     34.3%
06/25/02      134,380    62,792    71,588     36.3%

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

The roles reversed.  Commercials went decidedly short, while
Small Traders went decidedly long.

Commercials   Long      Short      Net     % of OI 
06/11/02       45,946     36,878     9,068   10.9%
06/18/02       54,816     49,169     5,647    5.4%
06/25/02       27,238     35,926    (8,688) (13.8%)

Most bearish reading of the year: (15,521) -  3/13/02
Most bullish reading of the year:   9,068  - 06/11/02

Small Traders  Long     Short      Net     % of OI
06/11/02       14,561    25,330   (10,769)   (27.0%)
06/18/02       20,883    29,153    (8,270)   (16.5%)
06/25/02       14,749     7,570     7,179     32.2% 

Most bearish reading of the year: (10,769) - 06/11/02
Most bullish reading of the year:   8,460  -  3/13/02

DOW JONES INDUSTRIAL

Dow commercials dropped about 2,000 of their net long
position.  Small traders eased into a bullish position.

Commercials   Long      Short      Net     % of OI
06/11/02       20,369    17,172    3,197      8.5%
06/18/02       25,995    19,115    6,880     15.1%
06/25/02       18,016    13,255    4,761     15.2% 

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
06/11/02        7,500     9,925    (2,425)   (13.9%)
06/18/02        5,379    11,813    (6,434)   (37.2%)
06/25/02        6,414     6,597       183     1.40% 

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

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

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Copyright  2001  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.
PremierInvestor.net Newsletter          Weekend Edition 07-05-2002
                                                    section 2 of 3
Copyright  2001, All rights reserved.
Redistribution in any form is strictly prohibited.

The entire newsletter is best viewed in COURIER 10 for alignment
=================================================================
To view this email newsletter in HTML format with imbedded
charts and graphs, click here:
http://www.PremierInvestor.net/htmlemail/g05b_2.asp
=================================================================

In section two:

Net Bulls
  Closed Bearish Plays:  AT

Stock Bottom / Active Trader
  Bullish Play Updates:  N
  Bearish Play Updates:  ABT, FLR, XL
  Closed Bearish Plays:  AIG, GR

High Risk/Reward
  New Bullish Plays:     GENZ
  New Bearish Plays:     CHKP
  Bullish Play Updates:  SNE
  Bearish Play Updates:  ALO, MYG, QLGC

Long-term Plays
  Closed Bullish Plays:  UHS

                         

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

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

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

Alltel Corp - AT - close: 45.43 change: -0.19 stop: 47.47

On Tuesday we observed that AT had created a potential short-term 
double bottom near $43.40.  This led us to believe that shares 
could trade sharply higher if the broader market experienced an 
oversold rally.  That scenario came to pass today when the NASDAQ 
exploded by nearly 5%.  AT underperformed the Composite but still 
posted a 4% gain before an on-close order brought it back to 
minus 19 cents.  Our play was stopped out for a 6.6% loss when 
shares violated our stop ($47.47) near the end of the shortened 
trading day.

Today's rally may have been impressive, but it's hardly an 
indication that AT  (or the telecom sector in general) has 
finally bottomed out.  A failed rally from the top of Alltel's 
descending channel (just below the 50-dma at $49.27) would renew 
our interest in a short play. 

Picked on June 26th at $44.50 
Change since picked:    -2.97
Earnings Date        04/25/02 (confirmed)






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

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

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

Inco Ltd. - N - close: 22.18 change: +0.42 stop: 21.38

Compared to most of the other stocks on our Play List, N traded 
in a pretty lackluster fashion on Friday.  Shares moved in a very 
small 23-cent range.  This could be indicative of a lack of 
direction, but it's important to remember that N has been 
characterized by low volatility over the past three weeks.  So 
today's action (or lack thereof) is nothing new.  And of course, 
we're not about to complain about a 1.9% gain.  N closed at the 
highs of the day and is safely above support at the rising 50-
dma.  If shares continue higher next week, the bulls will be 
tested by near-term resistance at $22.70.  Traders looking for 
new entries can continue to target dips to the 50-dma ($21.52), 
while very aggressive types can consider new positions on 
continued strength from current levels.

Picked on June 14th at $21.42
Change since picked:    +0.76
Earnings Date        04/16/02 (confirmed)  


 

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

Abbott Laboratories - ABT - cls: 37.39 chg: +0.29 stop: *text*

ABT has traced a pattern of higher lows over the past three 
sessions.  Although this could be indicative of a short-term 
bottom, bears can point to the fact that ABT only managed a 1% 
gain today.  That's significantly worse than the performance 
registered by the DRG.X Pharmaceutical index, which finished in 
the green by 3.7%.  If shares reverse course next week we'll be 
looking for ABT to prove its bearish ways by falling to our 
action point at $35.84.  Our stop, if triggered, will be set at 
$36.95.  Remember that we won't short ABT if it somehow gaps 
under $35.50.

Picked on July xxth at $xx.xx <- see text
Gain since picked:      +0.00
Earnings Date        07/11/02 (unconfirmed)




---

Fluor Corp. - FLR - close: 35.95 change: +0.50 stop: 37.36

A slight rise in the unemployment rate did little to deter 
anxious bulls on Friday.  Oversold market conditions and the lack 
of fourth-of-July attacks created a huge relief rally across the 
board.  This helped to power FLR to a 3.8% gain before an on-
close order cut those gains significantly.  Given the shortened 
trading session and low volume, it's hard to make much of today's 
failed rally.  Next week we'll be watching for FLR to reverse 
course again and fall back under the $35 level, which in turn 
would cause the MACD to continue its rollover from the baseline.  
We would not recommend new entries until shares trade under $35.

Picked on July 3rd at $35.94
Change since picked:   -0.01
Earnings Date       07/30/02 (confirmed)
 



---  

XL Capital - XL - close: 82.00 change: +0.70 stop: 85.02

Shares of XL experienced a conspicuous lack of buying on Friday. 
Sure, the stock finished in the green by 0.86%...but that's 
significantly less than the 2.8% gain posted by the IUX.X 
insurance index.  This relative weakness bodes well for our short 
play.  Traders looking for new entries should continue to watch 
for a break below the Tuesday low of $79.75.  Considering the 
lack of underlying support, we'd expect the bears to really pile 
on if this level is broken.  Very conservative investors may want 
to snug their stops to just above today's high at $83.00.

Picked on July 3rd at $80.89
Gain since picked:     -1.11
Earnings Date       04/29/02 (confirmed)





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

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

American Intl - AIG - cls: 66.22 chg: +0.74 stop: 67.39

Our list of market sectors was awash in green today as the Dow 
Jones finished the week with a monstrous 324-point rally.  The 
insurance group (as gauged by the IUX.X insurance index) didn't 
fare quite as well as the Dow, but still managed a solid gain.  
AIG outpaced the IUX for most of the day with a 3.4% gain before 
an on-close order cut its gains.  We were stopped out of this 
play for a 3.3% loss when AIG hit our stop at $67.39.  Traders 
who elected to use a more liberal stop should now be watching for 
AIG to roll over from the $68 - $69 level, near the top of the 
stock's descending regression channel.  A move above this area 
could indicate that the bulls are firmly in control, while a 
rollover would lend credence to the idea that today's rally was 
merely a function of the rising market lifting a weak stock.

Picked on July 2nd at $65.48
Gain since picked:     -2.26
Earnings Date       07/25/02 (unconfirmed)




---

Goodrich - GR - close: 25.65 change: +0.63 stop: 26.06

The DFX.X defense index moved sharply higher with the Dow Jones 
on Friday morning.  The sector may also have been fueled by a 
N.Y. Times article that detailed the U.S. military's plan to 
attack Iraq.  Although this doesn't come as a surprise (the Bush 
administration has been striking a hawkish chord for some time), 
it does provide a fresh reminder that a full-fledged invasion 
could be closer than we think.  Shares of GR moved higher with 
the defense group and eclipsed our stop at $26.06 within the 
first hour of trading.  Our short play was closed for a gain of 
89 cents, or 3.3%.  Although GR had recouped most of its losses 
from the previous two sessions by early Friday afternoon but a 
late order cut those gains in half.  Fortunately for the bears 
the month-long downtrend has not been violated.  We'd expect 
additional buying to peter out near the 200-dma at $27.13.  The 
DFX.X also faces formidable resistance at the 200-205 area.

Picked on June 24th at $26.95
Change since picked:    +0.89
Earnings Date        07/24/02 (unconfirmed)
 





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

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

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

Genzyme Corp - GENZ - close: 19.86 change: +1.75 stop: *text*

Company Description:
Genzyme General develops and markets therapeutic products and 
diagnostic products and services. Genzyme General has five 
therapeutic products on the market and a strong pipeline of 
products in development focused on the treatment of genetic 
disorders and other chronic debilitating diseases with well-
defined patient populations. Genzyme General is a division of the 
biotechnology company Genzyme Corporation. (source: company 
website)

Why We Like It:
The biotech sector has been hammered in recent months as the lack 
of cash-producing drugs and a plethora of FDA rejections has 
caught up with related stocks.  The long-term fundamental picture 
for the biotech group remains very uncertain, and we're not about 
to make an upside prediction.  That's why this is purely a 
technical play.  We're adding GENZ to our Play List tonight in an 
effort to capture a breakout.  The stock is approaching the 
bottom of the large gap from June 20th.  Shares fell after the 
company warned that slower-than-expected sales of its kidney 
drug, Renagel, would have an adverse impact on the bottom line.  
We think GENZ is poised to fill this gap and quickly move up to 
the $25.00 level.  Specifically, we're going to place an exit 
price at $24.89.  We'll close the play if GENZ trades at or above 
this level.  Shares have posted substantial gains in the past two 
sessions, but the uptrending MACD and daily stochastics (5,3,3) 
indicate there's plenty of upside remaining.  A trade at $21.00 
will also create a double-top buy signal on the point-and-figure 
chart.

Our entry strategy will be as follows: We won't go long until 
shares beginning filling the gap.  This means our entry trigger 
is located at $20.36.  However, note that we WILL NOT enter the 
play if for some reason the stock gaps above $20.50.  If 
triggered, we'll use a 10% stop at $18.33.  This is also safely 
under today's low.  Note that when playing a biotech stock, 
traders need to always be aware of the possibility of large gaps 
up or down.  FDA drug rejections/approvals, 
successful/unsuccessful trials, and product revenue announcements 
can all have a major impact on the stock price.  Odds are that 
won't be the case during our play, but tell that to investors who 
were long GENZ on June 20th!  It's just something to keep in mind 
when deciding how much of your speculative capital to use on 
these sort of trades.  Also, because GENZ announces earnings 
before the bell on July 17th, we will probably close this play by 
the end of trading on July 16th.

Picked on July xth at $xx.xx <- see text
Gain since picked:     +0.00
Earnings Date       07/17/02 (confirmed)
 



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

Check Point Software - close: 14.26 change: -0.11 stop: *text*

Company Description:
Check Point Software Technologies is the worldwide leader in 
securing the Internet. It is the confirmed market leader of both 
the worldwide VPN and firewall markets. The company's Secure 
Virtual Network (SVN) architecture provides the VPN and security 
infrastructure that uniquely enables secure and reliable Internet 
communications. SVN solutions, as delivered in the company's Next 
Generation product family, secure business communications and 
resources for corporate networks, remote employees, branch 
offices and partner extranets. (source: company press release)

Why We Like It: 
They say a rising tide lifts all boats, and that certainly seemed 
to be the case today.  To wit: Only one stock in the NASDAQ-100 
finished in the red today.  That stock was CHKP, which stood out 
on our screens like a giant swollen sore thumb.  CHKP hit a new 
multi-year low on Tuesday, July 2nd after J.P. Morgan downgraded 
the stock.  The bears finally relented after taking it as low as 
$10.37, and shares actually finished the session with a gain.  
CHKP continued higher on Wednesday despite having its earnings 
estimates cut by Salomon Smith Barney.  Although bulls can point 
to the strong volume during these sessions, we believe this was 
simply a function of shorts running for the exits with profits in 
their hands.  One would think that any real buying would've 
carried over into today's session.  Today's blatant display of 
relative weakness suggests that there ARE no willing buyers at 
these levels.  It might've been understandable to see CHKP finish 
with a loss if there was some tidbit of negative company or 
sector news, but the bulls have no such excuse.  The GSO.X 
software index traded higher by nearly 5% on Friday and there was 
no news to speak of on CHKP.  Speaking of the GSO, it's come 
right back to the midline of its descending channel.  This level 
has acted as resistance since mid-May.

In light of its underperformance, we're expecting CHKP to trade 
sharply lower if/when the NASDAQ reverses course next week.  
Specifically, we're looking for a near-term decline to the $12 
level.  More optimistic bears could be targeting a retest of 
Tuesday's low, but we'll be satisfied with a dip to our official 
exit price of $12.06.  Due to the possibility that today's tech 
rally could extend into Monday's session, we're not willing to 
play CHKP at current levels.  Instead, we'll wait for shares to 
fall below $14.00 before entering the play.  If triggered, we'll 
use a stop at $15.06.  If shares can move above today's high 
($14.87), they'll still have to contend with psychological 
resistance at $15.00. 

Picked on July Xth at $xx.xx <- see text 
Gain since picked:     +0.00
Earnings Date        7/22/02 (confirmed)
 




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

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

Sony - SNE - close: 53.17 change: +1.42 stop: 49.79 *new*

SNE traded strongly on Friday after Japanese officials expressed 
their concerns about a strong Yen.  This led to speculation that 
the Bank of Japan would intervene once again to prop up the U.S. 
Dollar.  Of course it didn't hurt that the NASDAQ rallied 4.9%!  
SNE finished with a 2.7% gain, just under the intraday high.  
Technically, SNE looks poised to overtake the relative high of 
$53.60 and test the 50-dma at $54.47.  Shares bounced 
enthusiastically from the psychologically important $50.00 level 
and the MACD oscillator is curling higher.  Continued upward 
movement in the U.S. Dollar (DX00Y) should also benefit SNE.  New 
long positions can be evaluated on a move above $53.60, but be 
aware that the 50-dma may act as resistance.  Note that we're 
raising our stop loss to $49.79, which is just below Tuesday's 
low. Also note that while the 50-dma should be resistance we 
think SNE and the rising Japanese market might be able to keep 
the momentum alive.  We're going to raise our profit target to 
exit the play to $59.50.
 
Picked on June 28th at $52.70 
Gain since picked:      +0.47
Earnings Date        10/24/02 (unconfirmed)
 



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

Alpharma, Inc - ALO - cls: 15.09 chg: +0.29 stop: 16.25

For all intents and purposes, ALO finished Friday's shortened 
session at $15.94.  The quoted closing price of $15.09 appears to 
be a bad tick.  A handful of trades did go off near $15.00 in 
after-hours, but it's unclear whether this data was accurate.  
Quirky quotes aside, ALO traded much like we'd expect it to on a 
day when the DRG.X drug index gained 3.7%.  The stock had 
experienced some heavy some heavy selling over the past three 
sessions and was due for a short-covering rally.  From a 
technical standpoint, it was encouraging to see that ALO wasn't 
able to close above $16.00.  Our stop will remain safe as long as 
the bears continue to defend this level.  On a similar note, the 
DRG.X still faces psychological resistance at 300.  If the short-
covering rally subsides next week we'd expect both sector and 
stock to revert to their bearish ways.  Aggressive traders can 
target new bearish positions if ALO rolls over from the $16.00 
region, but be sure to first confirm a reversal in the DRG.X.

Picked on June 26th at $15.95 
Change since picked:    +0.86
Earnings Date        07/29/02 (unconfirmed)
 



---

Maytag - MYG - close: 41.06 change: +1.67 stop: 42.11 *new*

MYG experienced a sharp reversal on Wednesday after tagging a new 
multi-month low of $38.11.  The bounce carried over into Friday's 
session, courtesy of the broader market's short-covering rally.  
Shares gained 4.2% and moved well above what we had hoped would 
be resistance at $40.00.  In light of these recent developments, 
we would not recommend taking new short positions at this time.  
We strongly suspect, however, that today's rally will not have 
much staying power.  MYG remains stuck in a downtrend and appears 
to be bouncing on a short-term basis.  We did notice that shares 
of Whirlpool (WHR) rallied 5.5% and both stocks appear to be 
building on a potential reversal pattern.  The candlestick chart 
for MYG is showing a "morning star" pattern which is bullish for 
traders.  Therefore, while we might normally close the play, it's 
unclear how today's shortened session and abbreviated volume may 
have skewed the trading.  Thus, we are going to lower our stop to 
$42.11, which will reduce our risk to about 30 cents.  More 
conservative traders might want to place their stop at breakeven.

Picked on June 26th at $41.82
Change since picked:    +0.75
Earnings Date        07/16/02 (confirmed)
 



---

QLogic Corp - QLGC - close: 39.80 change: +2.28 stop: 40.27

Today's abbreviated session yielded some huge gains for the chip 
sector.  After bouncing near its September lows on Wednesday, the 
semiconductor index (SOX.X) continued higher by 8.2%.  That was 
enough to earn it the title of "Friday's Strongest Sector."  
Despite the impressive gains, the SOX wasn't able to move above 
the 400 level.  This region has proved to be stubborn resistance 
in recent weeks.  QLGC (which underperformed the SOX by more than 
2%) faces its own near-term resistance at $40.00.  Considering 
that our stop is just above this region, aggressive traders can 
target a rollover from current levels.  At this point, however, 
we would not be surprised to see the bullish momentum carry over 
into Monday before the short-covering fades.  P-n-f chartists may 
want to note that a trade at $40.00 will create a double-top buy 
signal.  We would not consider new shorts at this time but wait 
to see where the buying stops on Monday (which may be too late 
for the newsletter but not too late for traders looking for a new 
entry).

Picked on July 2nd at $34.68
Gain since picked:     -5.12
Earnings Date       08/06/02 (unconfirmed)
 





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

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

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

Universal Health - UHS - cls: 49.69 chg: -0.30 stop: 45.99 

Profit-taking in the healthcare sector was fast and furious 
during the latter half of June, but UHS had weathered the sector 
weakness in fairly strong fashion.  The HMO.X health provider 
index, which had previously avoided the sharp sell-offs plaguing 
other groups, was not immune to the recent downward trend in the 
broader market.  The last straw came this week when shares 
slipped below the 50-dma and spiked to a low of $45.00.  The UHS 
bullish play was closed for a 1.3% loss on Tuesday, July 2nd, 
when shares hit our stop-loss at $45.99.  The subsequent reversal 
back above the 50-dma ($47.52) is encouraging for the bulls, but 
shares still face resistance at the $49.50-$50.00 region and the 
June highs near $52.  Traders still long UHS should be watching 
for the HMO.X to break above near-term resistance at 600.  A 
failure at this level could be a harbinger of another downward 
leg for UHS. 

Picked on April 19th at $46.60
Gain since picked:       -0.61
Earnings Date         04/18/02 (confirmed)







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

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

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

*****************************************************************
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Newsletter, or any Premier Investor Network newsletter please
contact Contact Support.

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


Copyright  2001  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.
PremierInvestor.net Newsletter         Weekend Edition 07-05-2002
                                                   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
=================================================================
To view this email newsletter in HTML format with imbedded
charts and graphs, click here:
http://www.PremierInvestor.net/htmlemail/g05b_3.asp
=================================================================

In section three:

Market Watch for Week of July 8th
   - 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 July 8th
==================================================

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

Symbol  Company               Date           Comment      EPS Est

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

AA     ALCOA                  Mon, Jul 08  -----N/A-----     0.28
AMB    AMB Property           Mon, Jul 08  After the Close   0.62
FVB    First Virginia Banks   Mon, Jul 08  -----N/A-----     0.88
SWY    Safeway                Mon, Jul 08  -----N/A-----     0.72

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

CEFT   Concord EFS            Tue, Jul 09  -----N/A-----     0.18
PBG    Pepsi Bottling Group   Tue, Jul 09  Before the Bell   0.47

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

BRO    Brown & Brown          Wed, Jul 10  After the Close   0.28
CBSH   Commerce Bancshares    Wed, Jul 10  Before the Bell   0.72
FAST   Fastenal               Wed, Jul 10  Before the Bell   0.27
DNA    Genentech              Wed, Jul 10  After the Close   0.22
ISCA   International Speedway Wed, Jul 10  -----N/A-----     0.27
MTG    MGIC Investment Corp.  Wed, Jul 10  Before the Bell   1.55
MCAF   McAfee.com             Wed, Jul 10  After the Close   0.07
RBAK   Redback Networks       Wed, Jul 10  After the Close  -0.17
BPOP   Popular, Inc.          Wed, Jul 10  -----N/A-----     0.62
SDX    Sodexho Alliance S.A.  Wed, Jul 10  Before the Bell    N/A
STI    SunTrust               Wed, Jul 10  Before the Bell   1.20
YHOO   Yahoo!                 Wed, Jul 10  After the Close   0.02

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

ABT    Abbott Laboratories    Thu, Jul 11  -----N/A-----     0.49
ADX    Adams Express          Thu, Jul 11  -----N/A-----      N/A
BBT    BB&T                   Thu, Jul 11  Before the Bell   0.68
CTAS   Cintas                 Thu, Jul 11  -----N/A-----     0.36
DCLK   DoubleClick            Thu, Jul 11  After the Close   0.00
SSP    E.W. Scripps           Thu, Jul 11  Before the Bell   0.75
DJ     Dow Jones              Thu, Jul 11  -----N/A-----     0.22
SSP    E.W. Scripps           Thu, Jul 11  Before the Bell   0.75
IFIN   Investors Fin. Srvcs   Thu, Jul 11  06:00 am ET       0.25
JNPR   Juniper Networks       Thu, Jul 11  After the Bell   -0.01
MAR    Marriott International Thu, Jul 11  -----N/A-----     0.42
NET    Network Associates     Thu, Jul 11  Before the Bell   0.12
NXY    Nexen                  Thu, Jul 11  -----N/A-----     0.60
PWAV   Powerwave Techn.       Thu, Jul 11  After the Close   0.05
SONS   Sonus Networks         Thu, Jul 11  After the Close  -0.07
THC    Tenet Healthcare       Thu, Jul 11  -----N/A-----     0.92
SGR    The Shaw Group         Thu, Jul 11  Before the Bell   0.59
EYE    VISX                   Thu, Jul 11  After the Close   0.12

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

ACN    Accenture              Fri, Jul 12  Before the Bell   0.26
B      Barnes Group           Fri, Jul 12  Before the Bell   0.37
BLK    BlackRock              Fri, Jul 12  Before the Bell   0.49
MI     Marshall & Ilsley      Fri, Jul 12  -----N/A-----     0.53
PSB    PS Business Parks      Fri, Jul 12  After the Close   0.87
SPOT   PanAmSat               Fri, Jul 12  Before the Bell   0.09

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

Symbol  Company Name              Ratio    Payable     Executable

SII     Smith International        2:1      07/08       07/09
THO     Thor Industries, Inc.      2:1      07/08       07/09
PROV    Provident Financial Hldngs 3:2      07/12       07/13
KRB     MBNA Corporation           3:2      07/15       07/16
SBCF    Seacoast Banking Corp.     3:1      07/12       07/15
ERES    eResearchTechnology        3:2      07/16       07/17
MLAN    Midland Co                 2:1      07/16       07/17
ANFI    American National Fncl     5:4      07/18       07/19
REXL    Rexhall Industries         2:1      07/18       07/19
ANFI    American National Fin Inc. 5:4      07/18       07/21


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

Once again earnings season will dwarf any major economic reports
in the eyes and hearts of investors.  Earnings for the second
quarter begin to trickle in on Monday but start to pick up mid-
week.  There are a couple of reports this week that will still
have the attention of analysts and these will be the PPI on
Thursday and the Retail Sales and Sentiment numbers on Friday.

==============================================================
 
Monday, 07/08/02      -For-
----------------
Consumer Credit (AB)   May   Forecast:  $6.0B  Previous:    $8.8B

Tuesday, 07/09/02
-----------------
None

Wednesday, 07/10/02
-------------------
Export Prices ex-ag.(BB)Jun  Forecast:    N/A  Previous:     0.0%
Import Prices ex-oil(BB)Jun  Forecast:    N/A  Previous:    -0.1%
Wholesale Invntories(DM)May  Forecast:  -0.4%  Previous:    -0.7%

Thursday, 07/11/02
------------------
Initial Claims (BB)   07/06  Forecast:    N/A  Previous:      N/A
PPI (BB)                Jun  Forecast:   0.0%  Previous:    -0.4%
Core PPI (BB)           Jun  Forecast:   0.1%  Previous:     0.0%

Friday, 07/12/02
----------------
Retail Sales (BB)        Jun  Forecast:   0.6%  Previous:   -0.9%
Retail Sales ex-auto (BB)Jun  Forecast:   0.4%  Previous:   -0.4%
Mich Sentiment-Prel (DM) Jul  Forecast:   93.3  Previous:    92.4


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 

SAP     SAP AG Ads                 23.51     +0.66
FTE     France Telecom Ads         14.64     +3.19

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

IFX     Infineon Technologies Ag   16.55     +2.15
CREAF   Creative Technology Ltd    10.25     +1.18

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

E       Eni Spa Ads                80.60     +2.30

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

RHB     Rehabcare Group Inc        20.26     -1.04

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

.none..




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