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Daily Newsletter, Tuesday, 07/23/2002

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PremierInvestor.net Newsletter                 Tuesday 07-23-2002
                                                   section 1 of 2
Copyright  2001, All rights reserved.
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In section one:

Market Wrap:      Dollar's Gains Shifts Near-term Focus to Bonds
Market Sentiment: No Faith
Play-of-the-Day:  The Trend Is To Descend


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U.S. Market Numbers
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MARKET WRAP  (view in courier font for table alignment)
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      07-23-2002           High     Low     Volume Advance/Decline
DJIA     7702.34 - 82.20  7894.41  7682.89 2.85 bln    562/2699
NASDAQ   1229.05 - 53.60  1295.59  1228.88 1.83 bln    818/2783
S&P 100   396.75 - 11.13   411.94   395.63   Totals   1380/5482
S&P 500   797.70 - 22.15   827.69   796.13 
RUS 2000  363.99 - 15.66   380.94   362.99 
DJ TRANS 2160.35 - 81.20  2261.72  2150.04   
VIX        50.48 +  2.25    52.48    47.22   
VXN        66.39 +  3.81    67.29    62.63
Total UpVol   731.1M
Total DnVol 4,220.1M
52wk Highs        37
52wk Lows       1359
TRIN            0.80
PUT/CALL         .85
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===========
Market Wrap
===========

Dollar's gains shifts near-term focus to bonds

There were few "bright spots" in the market for bullish equity 
traders today as the Dow Industrials (INDU) fell 82 points 
(-1.05%) to 7,702, the S&P 500 Index (SPX.X) declined 22 points 
(-2.7%) to 797.70 and the NASDAQ Composite (COMPX) jolted lower 
by 53.60 points (-4.17%) to 1,229.05 as stock investors continued 
to head for the exits.  

The only action I saw the even closely "resembled" any hint of 
future bullishness for equities was a strong rebound by the U.S. 
dollar, which had the U.S. Dollar Index (dx00y) 105.67 +1.1% 
trading higher and perhaps hinting that some foreign capital was 
finding its way back to U.S. shores.  While the recent attempt at 
a rally in the dollar is bullish, currency traders cited a 
violent bout of short covering as the reason for the greenback's 
rapid gains.

One never "knows" for sure what can unfold if short covering 
continues in the dollar.  One only needs to remember some 
internet stocks from a couple of years ago that jolted higher day 
after day on short-covering.  As such, it becomes very important 
to also monitor Treasury's, but the dollars strength has our 
attention.

US Dollar Index Chart - Daily Interval




Currencies are traded 24-hours a day so it can be a bit confusing 
for a stock traders to be using stock charting services that 
recognize a 6.5 hour day to accurately depict currency trading 
that takes place 24-hours a day.  However, today's bar (pointed 
to with blue arrow) shows the U.S. Dollar having a strong day, 
and adding some gains in "tomorrow's" trading session.  We've 
seen two and three day rallies in the dollar give back these 
types of gains (most likely due to short covering that abates), 
but there are some signs from other parts of the market that the 
dollar may be finding a bottom and if so, could hint that foreign 
investors are perhaps moving some money back to the U.S..  Key 
near-term resistance for the dollar looks to be the mid-point of 
regression and I'd expect some near-term resistance at the 
$106.50 level (where a dollar short would stop covering).  A move 
much above there could raise some eyebrows and give further 
upside to the $108.50 level.

Gold/Silver Index Chart - Daily Interval




It sure looks like "gold stocks" have lost their shine and this 
group suffered steep losses again today as the dollar gained 
strength.  With little inflation showing up in the economic data, 
it certainly appears that sector traders were holding stocks in 
this group as a "hedge" against the dollar.  Such bearish action 
in this group of late hints that sector bulls may be looking for 
the dollar to either firm up, or continue to recover.  

I could see a near-term "oversold bounce" take place back to the 
69.00 level in the next week or so, especially if the dollar 
can't get above its mid-point of regression and attempts to 
retest its recent lows.  While gold stocks took it on the chin 
today, the December Gold futures (gc02z) $315.30 -3.19% also fell 
sharply, but not nearly has hard as the stocks themselves.

PremierInvestor.net actually profiled a bearish trade in 
Anglogold (NYSE:AU) $22.23 -12.68% right when the Gold/Silver 
Index (XAU.X) made its last rally attempt under the 50-day MA on 
the above chart, however we were stopped out intraday on a 
volatile intraday spike higher.  If looking to trade this sector, 
expect some EXTREME volatility and be willing to take more than 
5% heat.  

With the DIVERGENCE we're seeing between the gold stocks 
(significantly lower) and the dollar (marginally higher), this 
has us on alert for any selling in Treasuries, which may 
adversely impact our overly bearish play list!

The reason a bearish equity trader needs to be on the alert is 
simply due to some strength found in the dollar, that could hint 
of cash coming back to the U.S. and perhaps getting ready to do 
some bargain hunting in beaten down equities.

While treasuries saw marginal selling earlier in the session, the 
early session selling turned into buying as we first observed the 
5-year YIELD ($FVX.X) turning lower, and later saw the 10-year 
YIELD ($TNX.X) and finally the 30-year YIELD ($TYX.X) all find 
buying (YIELDS went lower as a result) as the session progressed.

In today's market monitor at OptionInvestor.com, I first noticed 
this Treasury action at 11:45 AM EST and alerted traders when the 
Dow Industrials were higher by 76 points.  By 12:42 PM EST then 
10-year YIELD was dipping red and the Dow Industrials were up 
just 14 points.  As YIELDS eventually pegged session lows, the 
Dow Industrials were down 100 points.

I'm not trying to make day traders out of everyone, but simply 
drive home the point of how closely YIELDS are being watched by 
equity traders as they try and monitor where cash is moving.  
While the lower YIELDS impacted the broader market averages (I 
was also benchmarking the S&P 500 and NASDAQ Composite at 11:45 
and 12:42) any type of selling in Treasuries will most likely 
have the inverse impact of what took place in stocks today.

With the dollar showing some signs of life the past couple of 
days, expect equity bears that have been shorting stocks on 
"weaker dollar theory" to be monitoring Treasuries very closely 
as that is where a lot of cash has been building up in recent 
weeks and months.  

Mike Ryan, senior fixed-income strategist with UBS PaineWebber, 
reaffirmed what we've been talking about for months when he said 
that stocks and bonds are still locked into their inverse trading 
pattern.

This afternoon, the Treasury Department auctioned off $20.8 
billion worth of four-week bills at a high rate of 1.695% and 
with a bid-to-cover ration of 2.36, demand for these short-term 
notes were strong.

Turning over rocks and rats keep showing up!

Each day seems like a soap opera.  Some new "plot" is discovered 
which has investors pressing the sell button on stocks.  Today's 
"revelation" or "thickening of the plot" came from The New York 
Times and Wall Street Journal articles which alluded to reports 
that records and interviews with investigators demonstrate for 
the first time that senior credit officers at Dow component 
Citigroup (NYSE:C) $27.00 -15.73% may have misrepresented the 
full nature of a 1999 transaction with Enron in the records of 
the deal so that Enron could ignore accounting requirements and 
hide its true financial condition.

Citigroup Inc. Chart - Daily Interval




I think I first mentioned Citigroup (NYSE:C) $27.00 -15.73% as a 
bearish looking stock back in our 01:00 Update on June 5th.  
While my "scenario" for the stock trading lower that day and 
DIVERGING from the Dow Industrials gains was wrong (I thought 
weakness might be due to global exposure) it looks like it might 
have been "Enron exposure" that was weighing on the stock.

Don't think that this type of bearish action from one of the 
major banks is going to help investor psychology.  

It is noted that Citigroup (C) executives deny that it attempted 
to cover up any of Enron's deficiencies.

Also taking a beating was the U.S'. second largest bank and Dow 
Component J.P. Morgan (NYSE:JPM) $20.08 -18.10%.  J.P. Morgan 
also denied accusations lobbed by a Senate panel that they helped 
orchestrate phony financing transactions to keep debt off the 
bankrupt energy trader's books.

What is going to keep equity traders nervous and quick to pull 
the plug on stocks is that today's debacle was triggered on 
speculation of past Enron involvement.  This leaves many 
wondering what happens as more fact finding is done as it relates 
to Global Crossing and WorldCom.

The answer could eventually be told by the bond market.  As 
investors seek safety, Treasury YIELDS should continue lower.  
However, as the MARKET digests and discounts all the bad news, 
selling in Treasuries could eventually signal some type of shift 
in where the MARKET sees the greatest amount of risk.

We're still very defensive toward stocks (especially those names 
with any type of accounting concern or hinting of SEC 
investigation), but keeping a close eye on Treasury YIELDS.

Jeff Bailey
Senior Market Technician
PremierInvestor.net


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

No Faith

by Steven Price

Market anchors Citigroup and J.P. Morgan sank to new depths 
today, dragging down the market as investors continued their 
exit.  The good news?  Well, the Dow closed at only a double-
digit loss, after having been down over 100 points intraday once 
again.  Investors continued to show a lack of faith as they 
dumped these giants like non-recyclable garbage.

J.P. Morgan  $20.08 (-4.44) lost over 18 percent of its value 
today as concerns over its Enron involvement mounted.  The same 
went for Citigroup $27.00 (-5.04), which shed more than 15% of 
its value.  These two companies have lost over $58 billion in 
market capitalization over the last two days. They dragged down 
the entire sector, with the Bank Index ($BKX.X) losing 7 percent 
of its value.  In addition to these majors taking a hit, 
Microsoft lost another $3.30 to extend its recent lows, closing 
at $43.01, and taking the NDX to new lows along with it.  
Microsoft added another $38 billion to its lost market cap since
last Friday. 

Consumer spending accounts for approximately two thirds of 
economic activity in the United States.  Retail data can reflect 
just how severely the market is affecting investors' spending 
habits, and is one measure of the country's financial well-being. 
Today's U.S. chain store sales number was an improvement over 
last session, gaining 0.4 percent for the week ending July 20, as 
opposed to a 0.3 percent drop the week before. One sector that 
showed some resilience, as a result, was retail.  The beleaguered 
retailers showed some strength, with WalMart refusing to go 
silently into the night.  After achieving its bearish vertical 
count of $46, it looked headed to new lows.  It crossed its 
September low of $44.00, trading $43.99 yesterday, only to come 
back slightly today, closing up $0.50 to $45.10. The world's 
largest retailer has been a barometer for the sector, and this 
resilience could be a positive going forward. This was only the 
second session in the last 12 that the retail index squeezed out 
a gain, and in this case it was less than one percent.  While 
this does not mean the economy has turned the corner, it may be 
evidence that some sectors have reached oversold levels from 
which a rebound is coming.

GM and Ford announced their new pricing packages for 2003.  While 
they didn't come out and state they were raising, prices, the 
intent was clear.  They released a mixed bag of price increases 
and decreases, but changed option packages so that many options 
that were included in previous sticker prices will no longer be.  
Thus, increasing prices. 

The dollar rebounded strongly in what appears to be a round of 
short covering.  The 1.5 percent increase in the dollar against 
the euro, and 0.8 percent increase against the yen, sent gold 
dropping.  Because gold is priced in dollars, an increase in the 
dollar makes it more expensive to buy.  

Another big loser was AT&T, who posted a $12.7 billion Q2 loss.  
Most of this however, was a result of writing down the value of 
AT&T Broadband, which is slated to merge with Comcast (CMCSK) 
later this year.  AT&T said its basic cable service lost more 
subscribers than expected in the second quarter.  

So what's the big picture?  Well the markets did make an effort 
to get positive.  If not for J.P. Morgan, Citigroup and 
Microsoft, it would have been a close call.  HOWEVER, (big 
however), the Nasdaq 100 is now at its lowest point since the 
index was started.  That's a pretty big break in support!  This 
indicator, whose bullish percent had been rising before the end 
of last week is now heading south.  It has led the market in the 
past, but now appears to be playing catch up to the other major 
indices.  The S&P 500 has now fallen below the 800 mark to close 
at 797.70, just three trading sessions after it closed below 900 
for the first time in years.  It has reached its lowest levels 
since 1997. Seems pretty bleak.  However, after a 1700 point drop 
in the Dow (from July 5th's close), there is likely to be some 
type of bounce.  Whether that bounce holds is certainly of long-
term concern.  But the short-term trader must be aware of the 
possibility of a significant bounce.  If the Dow retraces only 
half its recent losses, that is still almost a 900-point gain.  
While all signs are still negative, respect your trigger points 
and keep tight stops.  We study and attempt to ride trends, not 
fight them. 




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

Market Averages

DJIA ($INDU)

52-week High: 10679
52-week Low :  7682
Current     :  7702

Moving Averages:
(Simple)

 10-dma: 8387
 50-dma: 9409
200-dma: 9801

S&P 500 ($SPX)

52-week High: 1226
52-week Low :  796
Current     :  797

Moving Averages:
(Simple)

 10-dma:  884
 50-dma: 1001
200-dma: 1091

Nasdaq-100 ($NDX)

52-week High: 1782
52-week Low :  896
Current     :  896

Moving Averages:
(Simple)

 10-dma:  981
 50-dma: 1113
200-dma: 1382


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


Semiconductor Index ($SOX.X)

The semiconductor index has finally broken its support at 350.  
As the semiconductors have been downgraded, the SOX has fallen 
for six straight sessions.  Microsoft's recent fall has been 
ominous for the entire tech sector.  Now that support has been 
broken, the SOX next level of support could be well below 300.

52-week High: dna
52-week Low : dna
Current     : 339.41

Moving Averages:
(Simple)

 10-dma: 369
 50-dma: 430
200-dma: 509


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

Market Volatility

We've been commenting on two facets of the recent rise in the VIX 
($VIX.X).  One, the rising volatility index usually foreshadows a 
market rally, as it peaks at market bottoms.  Two, It still may 
have further to go before we see that rally.  In the past, each 
time the VIX has crossed 40, it has also approached 50. This has 
happened previously in 2001, 1998 and 1997.  Now we're there, 
although last fall it reached a high of 57, so we may not be done 
yet.  

CBOE Market Volatility Index (VIX) = 50.48 +2.25
Nasdaq-100 Volatility Index  (VXN) = 66.39 +3.81

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

          Put/Call Ratio  Call Volume   Put Volume
Total          0.85        851,681       724,114
Equity Only    0.62        671,872       419,719
OEX            0.80         40,723        32,433
QQQ            0.41         66,765        27,633

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

Bullish Percent Data

           Current   Change   Status
NYSE          27      - 6     Bull Correction
NASDAQ-100    28      - 3     Bull Correction
DOW           7       - 3     Bear Confirmed
S&P 500       14      - 3     Bear Confirmed
S&P 100       11      - 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  1.50
10-Day Arms Index  1.31
21-Day Arms Index  1.39
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        560          2634
NASDAQ      780          2693

        New Highs      New Lows
NYSE        20            677
NASDAQ      48            430

        Volume (in millions)
NYSE     2,857
NASDAQ   2,078

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

Commitments Of Traders Report: 07/16/02

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 increased their short positions by 25% as the markets 
fell in the last period, while the small traders added almost 
17,000 contracts to their long position.


Commercials   Long      Short      Net     % Of OI 
06/18/02      437,530   487,956   (50,426)   (5.4%)
06/25/02      378,214   438,775   (60,561)   (7.4%)
07/09/02      396,321   456,164   (59,843)   (7.0%)
07/16/02      388,943   464,162   (75,219)   (8.8%)

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
06/18/02      181,178    88,517    92,661     34.3%
06/25/02      134,380    62,792    71,588     36.3%
07/09/02      145,017    71,402    73,615     34.0%
07/16/02      157,370    67,247    90,123     40.1%

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

Commercials reduced their short positions by over 20% as the NDX 
held its own against the other market indices.  Small traders 
reduced their overall long position by adding 2,000 short 
contracts.


Commercials   Long      Short      Net     % of OI 
06/18/02       54,816     49,169     5,647    5.4%
06/25/02       27,238     35,926    (8,688) (13.8%)
07/09/02       31,227     39,592    (8,725) (12.3%)
07/16/02       33,152     39,866    (6,714) ( 9.2%)

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
06/18/02       20,883    29,153    (8,270)   (16.5%)
06/25/02       14,749     7,570     7,179     32.2%
07/09/02       12,520     8,348     4,175     20.0%
07/16/02       12,816    10,774     2,042      8.7%

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

Commercials remained virtually unchanged, while the small traders 
shifted from a small long position to a decidedly short position. 



Commercials   Long      Short      Net     % of OI
06/18/02       25,995    19,115    6,880     15.1%
06/25/02       18,016    13,255    4,761     15.2%
07/09/02       20,761    14,122    6,639     19.0%
07/16/02       20,357    14,074    6,283     18.2%

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
06/18/02        5,379    11,813    (6,434)   (37.2%)
06/25/02        6,414     6,597       183     1.40% 
07/09/02        6,831     6,623       208     1.50%
07/16/02        8,524    10,133    (1,609)   (8.62%)

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

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


===============
PLAY-of-the-Day  ((new BEARISH tech play))
===============

QLogic Corp. - QLGC - close: 38.06 change: -3.44 stop: 42.65
 
Company description: 
QLogic Corporation simplifies the process of networking storage 
for OEMs, resellers and system integrators with the only end-to-
end infrastructure in the industry, consisting of award-winning 
controller chips, host bus adapters, network switches and 
management software to move data from the storage device through 
the fabric to the server. QLogic designs and produces solutions 
based on all storage network technologies including SCSI, iSCSI, 
InfiniBand and Fibre Channel.

Why we like it:
It's not that we think QLGC is a bad company, simply, the storage 
sector as a whole is experiencing market related selling.  Last 
Thursday, EMC, one of QLogic's competitors, said that it didn't 
see IT spending by large corporations improving in 2002.  The 
overall fear is that with the economy slowing down, corporations 
would be focused on other things than Storage and IT upgrades.   
In fact, some analysts said that the IT environment may not see 
recovery until 2004.  

QLGC has actually had decent relative strength over the last two 
weeks, while the Dow has been getting pounded.  For this reason, 
we have been leery of looking at the storage company as a short.  
However, in the last few days, QLGC has once again begun to 
display weakness, and looks as though it could once again break 
down.  Encouraging for short traders, QLGC failed on its 200-Day 
MA, and the 50-Day MA.  The stock has also been trading in a 
descending channel, which it failed at resistance.  On the Daily 
chart, the Stochastics have fallen from the recent overbought 
levels above the upper line. This display of buying weakness 
could result in more sellers coming to the floor hoping to exit 
their positions.  Helping to further our cause, the $SOX.X broke 
the September low today, and could also see selling. 

This is how we will play the trade: Our trigger is at current 
levels, reflecting current weakness.  Our stop is just above 
today's high, at $42.65.  The first profit target for this trade 
is $33.50, where we will book half of our profits.  If the stock 
continues to look weak, we will attempt to hold the stock towards 
potential psychological support near $30.00.  If the stock begins 
to decline, we will move our stop down with the falling price in 
order to protect ourselves from losses.  Our first stop of $42.65 
is critical, as the broader market could see a short covering 
rally at any time.  If this were to happen, we would not want to 
be stuck in a pile of short positions that we did not have the 
discipline to exit.  Thus, we would like to urge caution while 
shorting the market at these over sold levels.

Annotated Chart of: QLGC, Daily.
Chart link =




Picked on July 23rd at $38.06 
Change since picked:    +0.00
Earnings Date        07/18/02 (confirmed)
 






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Do not duplicate or redistribute in any form.




PremierInvestor.net Newsletter                  Tuesday 07-23-2002
                                                    section 2 of 2
Copyright  2001, All rights reserved.
Redistribution in any form is strictly prohibited.

The entire newsletter is best viewed in COURIER 10 for alignment
=================================================================
To view this email newsletter in HTML format with imbedded
charts and graphs, click here:
http://www.PremierInvestor.net/htmlemail/g23b_2.asp
=================================================================

In section two:

Net Bulls
  New Bearish Plays:     KLAC, QLGC
  Bearish Play Updates:  MOT, MU
  Closed Bearish Plays:  INVN

Stock Bottom / Active Trader
  New Bearish Plays:     CAH
  Bullish Play Updates:  DIA
  Bearish Play Updates:  BLL, LOW
  Closed Bearish Plays:  FRK, THO

High Risk/Reward
  New Bearish Plays:     CEPH, TSCO
  Bullish Play Updates:  DCTM, ISSX
  Bearish Play Updates:  BYD
  Closed Bearish Plays:  JAS.A, PNK

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



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

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

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

KLA-Tencor - KLAC - close: 40.92 change: -2.35 stop: *text*

Company Description:
KLA-Tencor is the world leader in yield management and process 
control solutions for semiconductor manufacturing and related 
industries. Headquartered in San Jose, Calif., the company has 
sales and service offices around the world. An S&P 500 company, 
KLA-Tencor is traded on the Nasdaq National Market under the 
symbol KLAC. (source: company press release)

Why We Like It:
For starters, earnings are on July 30th.  However, competitor 
Novellus (Nasdaq:NVLS) reported last night, stating that they 
expected orders to drop 10% from the most recent quarter.  Things 
are still looking rough in the semi-conductor index.  An analyst 
at Morgan Stanley, Steve Pelayo sees another 15% downside in the 
Novellus.  The Semiconductor Index $SOX.X, has just broken the 
support of the September lows, indicating that things could get 
UGLY.  Also noted, the Stochastics on the daily for the SOX.X 
have also just crossed below the lower line.  

KLAC has remained relatively strong over the last few weeks, as 
the Nasdaq has not been selling off quite as much as the Dow.  
However, we believe that this company could see a substantial 
amount of selling pressure, as its sector index the SOX.X, is at 
new lows.  KLAC could mirror its competitors falling all the way 
to September support. We like KLAC short, as it is resting very 
close to its most recent support, and shows its Stochastics just 
falling below the lower line.  Beyond our trigger, minimal shelf 
support for KLAC lies in the $39.00 area, and then in the $36-
36.35 level below.  Our official target for this trade would be a 
couple of points above the September low at $31.50.  

Putting our trigger at most recent support, we will enter this 
trade if the Stock falls below $39.75.  However, if KLAC gaps 
down below $39.50 on the open, we will not enter this trade.  
With the dollar strong and the $VIX.X overbought, we do not want 
to get short at the market bottom, just before a huge rally.  If 
our window for entering the trade is met, we will put a stop 
above today's high at 42.76.  We would like to add a cautionary 
note to this trade: Even though the SOX.X has broken lows, the 
overall market seems prime for a rally.  So we urge traders to 
use caution and make sure that stop loss orders are IN PLACE to 
avoid any large losses given a potential short-covering rally.

Annotated Chart of: KLAC, Daily.
chart link =



Picked on July xxth at $xx.xx <- see text
Change since picked:    +0.00
Earnings Date        07/30/02 (confirmed)
 



---

QLogic Corp. - QLGC - close: 38.06 change: -3.44 stop: 42.65
 
Company description: 
QLogic Corporation simplifies the process of networking storage 
for OEMs, resellers and system integrators with the only end-to-
end infrastructure in the industry, consisting of award-winning 
controller chips, host bus adapters, network switches and 
management software to move data from the storage device through 
the fabric to the server. QLogic designs and produces solutions 
based on all storage network technologies including SCSI, iSCSI, 
InfiniBand and Fibre Channel.

Why we like it:
It's not that we think QLGC is a bad company, simply, the storage 
sector as a whole is experiencing market related selling.  Last 
Thursday, EMC, one of QLogic's competitors, said that it didn't 
see IT spending by large corporations improving in 2002.  The 
overall fear is that with the economy slowing down, corporations 
would be focused on other things than Storage and IT upgrades.   
In fact, some analysts said that the IT environment may not see 
recovery until 2004.  

QLGC has actually had decent relative strength over the last two 
weeks, while the Dow has been getting pounded.  For this reason, 
we have been leery of looking at the storage company as a short.  
However, in the last few days, QLGC has once again begun to 
display weakness, and looks as though it could once again break 
down.  Encouraging for short traders, QLGC failed on its 200-Day 
MA, and the 50-Day MA.  The stock has also been trading in a 
descending channel, which it failed at resistance.  On the Daily 
chart, the Stochastics have fallen from the recent overbought 
levels above the upper line. This display of buying weakness 
could result in more sellers coming to the floor hoping to exit 
their positions.  Helping to further our cause, the $SOX.X broke 
the September low today, and could also see selling. 

This is how we will play the trade: Our trigger is at current 
levels, reflecting current weakness.  Our stop is just above 
today's high, at $42.65.  The first profit target for this trade 
is $33.50, where we will book half of our profits.  If the stock 
continues to look weak, we will attempt to hold the stock towards 
potential psychological support near $30.00.  If the stock begins 
to decline, we will move our stop down with the falling price in 
order to protect ourselves from losses.  Our first stop of $42.65 
is critical, as the broader market could see a short covering 
rally at any time.  If this were to happen, we would not want to 
be stuck in a pile of short positions that we did not have the 
discipline to exit.  Thus, we would like to urge caution while 
shorting the market at these over sold levels.

Annotated Chart of: QLGC, Daily.
Chart link =




Picked on July 23rd at $38.06 
Change since picked:    +0.00
Earnings Date        07/18/02 (confirmed)
 




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

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

Micron Tech - MU - close: 19.95 change: +0.55 stop: 21.01 

Triggered in our short position in the last half and hour of 
trading, we will be tracking our hypothetical short position from 
$19.99.  Viewing today's action, MU gapped up slightly in the 
morning and continued to trade higher on the day.  Later, MU sold 
off to a low of $19.81, only to close on the day at a meager 
$19.95.   Our plan for this trade will remain the same.  Now that 
we are in our short position, we will keep a tight stop on this 
trade at $21.01.   

We are encouraged by the trading action today, as this stock 
could not hold its highs.  During today's session, buyers quickly 
exited this stock as sellers started to appear.  This could 
indicate future weakness, which could potentially help us reach 
our profit target of $16.06.  Stay tuned...and keep one eye on 
the SOX.X, which closed under its September lows for the first 
time today.

Picked on July 23rd at $19.99
Change since picked:    +0.04
Earnings Date        08/24/02 (confirmed)
 



---

Motorola - MOT - close: 13.40 change: -0.72 stop: 14.51 *new*

Gapping lower today, MOT looks like it has failed on the top of 
the channel, just as we had hoped.  Entering the lower half of 
the channel, we would like to see MOT continue to sell.  
Encouragingly, the daily Stochastics have once again turned down, 
and could possibly breach the lower line as early as tomorrow.  
This would indicate selling pressure, and could help us reach our 
profit target of $12.00 quickly.  We are lowering our stop to 
$14.51, which is just above the afternoon failed rally in 
Monday's session.  More conservative traders might attempt an 
even tighter stop above today's highs near $14.00 just to be 
safe.  Although at $14, almost any significant market bounce 
could stop you out.  Today, in an event that could help us meet 
our profit target, Salomon Smith Barney cut its rating of 
Motorola to "neutral" from "buy".    

Picked on July 18th at $14.66
Change since picked:    +1.26
Earnings Date        07/17/02 (confirmed)
 




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

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

Invision Tech. - INVN - close: 25.50 change: +0.93 stop: 25.16

Today's open brought a gap up for INVN, which stopped us out of 
our play.  The opening print of $25.60 covered our position, 
leaving us with a small winner.  With a 3.3% gain, we are happy 
to close this position in light of earnings coming forward 
tomorrow.  Although this stock could have more downside in store, 
we felt that holding a company of this nature into earnings is 
more of a gamble than a researched trade.  Also, with a short 
covering rally potentially looming over our heads, we would 
rather be safe than sorry. 

For traders still short this position, it is encouraging that 
INVN is below the 200-Day MA.  Though, if the stock breaks above 
this important institutional average, it would probably be a good 
idea to cover the position, as buyers could come off the fence.    

Picked on July 18th at $26.47
Change since picked:    +0.87
Earnings Date        07/23/02 (confirmed)
 





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

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

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

Cardinal Health - CAH - close: 49.08 change: -1.15 stop: *text*

Company Description:
Cardinal Health is the leading provider of products and services 
supporting the health care industry. Headquartered in Dublin, 
Ohio, Cardinal Health employs more than 49,000 people on five 
continents and produces annual revenues of more than $40 billion. 
Cardinal Health Pharmaceutical Technologies & Services group has 
operations worldwide, employing more than 10,000 people at nearly 
three dozen drug development, manufacturing and packaging centers 
in 11 countries. (source: company press release)

Why We Like It:
The bearish rampage on Wall Street has left almost no sector 
unscathed - even sectors that were previously pillars of 
strength.  The healthcare group is a particularly good candidate 
for the "Fallen Angel" award.  It took the RXH.X healthcare index 
only one month to fall from a multi-year high of 370 to a 52-week 
low of 282.  That's a serious sell-off!  Judging by the way the 
index has fallen through support near 288, it's likely to get 
worse!  This sector's negativity has created an intriguing 
breakdown in CAH, which sold off sharply from the $55 level in 
recent days.  Technically, the stock looks like it will continue 
its southbound journey.  Shares had consolidated in a wedge 
formation during the first three weeks of July.  Today's break 
out of this wedge didn't sit well with investors, who sold off 
CAH under the psychological support of $50.00.  Today's close 
under that level is a sign that the stock may soon test, or even 
violate its 52-week low of $46.80.  This outlook is bolstered by 
the double-bottom p-n-f sell signal, bearish daily stochastics, 
and downtrending MACD.

Our strategy for playing CAH is as follows: We won't enter this 
play under CAH trades below $49.00.  If that occurs, we'll go 
short with a stop at $51.26, a penny above today's high.  More 
conservative traders could use a stop just over $50.00.  We'll 
probably challenge CAH with a very tight stop once the stock 
begins to decline.  The oversold broader market indices and 
rocketing volatility index (VIX.X) hint that a sharp reversal may 
occur in the near future.  Although our initial profit target 
will be at the $40-$42 region, we won't hesitate to close the 
play if shares find support near the $45 level.  In addition, we 
would like to urge caution while trading short with the market at 
such low levels.  It is not that we do not believe the market 
can't go lower...  However, a short covering rally could be 
dangerous to open short positions.  Keep tight stop losses and 
trade with discipline!

Picked on July xxth at $xx.xx <-- see text
Gain since picked:      +0.00
Earnings Date        08/06/02 (unconfirmed)
 




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

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

Diamonds Trust - DIA - close: 77.17 change: -0.89 stop: *text*

Capitulation.  Those five syllables have been uttered a lot on 
Wall Street this week.  When's it going to happen?  Will it 
happen?  How severe will it be?  Although we don't have the 
answers to those questions, there are plenty of signs that a 
capitulation-type event could be just around the corner.  The 
volatility index (VIX.X) has spiked above 50, reaching levels not 
seen since the Dow Jones bottomed out on September 21st.  Volume 
has also been ramping up.  Conventional market wisdom dictates 
that you can't have a full-blown capitulation event without heavy 
downside volume - Something that's been lacking over the past few 
weeks.  We continue to anticipate a final blowout sell-off that 
will push the Dow Jones down to the 7400-7500 region.  Thus, 
we're maintaining our trigger range of $75.00-$75.50 to go long 
on the DIA shares.  More aggressive traders willing to take the 
heat might want to consider increasing the range on their entry 
to under the $76 mark - just in case the DJIA decides to rally 
from the 7600 level.  If we're triggered our stop will be set at 
$73.85.  For a more detailed analysis of where the markets might 
be headed, check out tonight's Market Wrap by Jeff Bailey!

Picked on July xxth at $xx.xx <- see text
Change since picked:    +0.00
Earnings Date             N/A
 



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

Ball Corporation - BLL - cls: 33.38 chg: -0.70 stop: 35.01 *new*

We are very happy to see this trade working in our direction. 
However, it looks as though the MACD and Stochastics are 
beginning to look very oversold, thus, we would like to 
"challenge" this trade to preserve our winner.  Our new stop will 
be at $35.01, which is just slightly above potential 
psychological support at $35.00.  More aggressive traders could 
use a stop near $35.60, which would be just above the failed 
rally from Monday afternoon.  Our fear is that the stock will see 
short covering before it reports on Thursday.  Also to be noted, 
we feel that since we have over four points in this trade (as of 
today's close), we would like to minimize our risk. As stated in 
our last update... Unless the trade hits our profit target early 
in the day, we will exit the entire position on tomorrows close.  
In our favor, Ball Corporation received a downgrade yesterday by 
Merrill Lynch, which has helped to make the stock weaker.  

Picked on July 18th at $37.74
Change since picked:    +4.36
Earnings Date        07/24/02 (confirmed)
 



---

Lowes Companies - LOW - cls: 34.22 chg: -0.70 stop: 36.51 *new*

Lowes is slowly trading lower.  Given broader market weakness, 
and unsteady consumer sentiment, Lowes is feeling pressure from 
the lagging economy.  We are overjoyed that LOW has fallen away 
from our stop, hitting a low of $33.70 yesterday.  With no fresh 
news on LOW, we can only assume that selling is due to investors 
pulling out of this stock.  Also encouraging is Home Depot 
(NYSE:HD), which has fallen below its September lows.  We would 
like to see LOW also test its September lows at $25.00, HOWEVER, 
our more realistic target is the $32.50 to $30.00 area.  We won't 
hesitate to consider closing the play if LOW stalls near $32.50.  
We have decided to lower our stop significantly since the decline 
in LOW has slowed.  Our new stop will be $36.51, which is just 
above the recent highs for Monday & Tuesday.  This should protect 
a gain of $1.34 or 3.5%.
 
Picked on July 18th at $37.85 
Gain since picked:      +3.63
Earnings Date         8/19/02 (unconfirmed)
 




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

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

Florida Rock - FRK - close: 30.17 change: -0.40 stop: 31.06

Oh so close, Florida Rock has continued to tumble down the hill 
over the last week... Today we witnessed a low of $30.15, just 9 
cents above of our profit target.  Of course, our play was closed 
earlier in the day when shares hit our stop-loss at $31.06.  We 
were stopped out for a gain of 5.8%.  Although a break under $30 
would be very bearish, we would not be surprised to see FRK 
bounce around in the $30-$31 congestion area.  Shares may also be 
due for some short-covering following the recent descent.  There 
is no fresh news on Florida Rock so far this week.
   
Picked on July 10th at $32.99 
Gain since picked:      +1.93
Earnings Date        08/07/02 (confirmed)
 



---

Thor Industries - THO - cls: 25.72 chg: -1.08 stop: 27.01 *new*

Woo Hoo!  Thor Industries has continued to fall in the first part 
of this week, slowly inching towards our profit target of $25.50.  
Although we hate to see good companies fall out of bed, we are 
happy to be on the short side of this trade.  We had initially 
planned on challenging this trade with a stop of $27.01, though 
THO hit our profit target so quickly, we never had to worry about 
it.  Thus, we have seen a total 20% return on this trade.  
Weakness in THO can be attributed to overall weakness in the 
broader market and luxury bus sector.

Traders who still hold a position in THO should be encouraged by 
the company's weakness, but should still be cautious of a short 
covering rally, especially now that THO is just above historical 
and psychological support at $25 and its 200-dma.  A conservative 
stop to "challenge" this trade would be 27.01, protecting a 15.3% 
gain in the position.  Also, current shorts might want to be 
careful of short covering into earnings at the end of the month.  
    
Picked on July 3rd at $31.90
Gain since picked:     +6.40
Earnings Date       07/30/02 (confirmed)






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

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

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

Cephalon Inc. - CEPH - close: 39.35 change: -2.88 stop: 43.89

Company Description:
Cephalon, Inc. is an international biopharmaceutical company 
dedicated to the discovery, development and marketing of 
innovative products to treat sleep and neurological disorders, 
cancer and pain. Cephalon employs 1,200 people in the United 
States and Europe. The company markets three proprietary products 
in the United States and more than 20 products internationally.
(source: company press release)

Why we like it: 
Viewing the Biotech Index $BTK.X, a descending channel is clearly 
apparent.  Recently, the $BTX.X tried to rally to the top of its 
channel, though in the last four day, has once again failed.  
CEPH is certainly not immune to the larger market sell-off, and 
has also fallen in the last few days.  With failure at the top of 
descending channel resistance, CEPH looks as if it could be a 
good short candidate.  An encouraging aspect of this trade is 
that Stochastics have failed at their upper level, and look to 
fade back to the bottom of their range.  Weakness in Stochastics, 
combined with channel failure and selling in the overall biotech 
market, will hopefully make this a great short trade!    

Because of the obvious erratic nature of the biotech arena, we 
have included this play in our High Risk/High Reward section.  
To trade Cephalon, we will short our hypothetical trade at 
current levels.  Trading in the descending channel, we see 
initial support at $36.00.  If the trade can breach the $36.00 
level, our official price target will be at $32.00.  Our stop is 
one penny above the high of two days ago at $43.90.  If all 
things go as planned, we hope to receive an 18% gain from this 
trade.  Noting that the biotech sector is at lower levels, we 
would like to urge caution for traders to be aware of short 
covering rallies.  The simplest way to protect our positions 
against this threat is to put tight stop losses on all trades!  
Good luck!

Annotated Chart of: CEPH, Daily.
chart link=




Picked on July 23rd at $39.35 
Gain since picked:      +0.00
Earnings Date        08/06/02 (confirmed)
 



---

Tractor Supply - TSCO - close: 52.51 change: -2.31 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:
TSCO had an impressive run over the past year that saw shares 
explode from $15.00 to an all-time high of $73.25.  What's more 
impressive is the fact that the all-time high was set in June, 
when the Dow was already several months into its current 
downtrend.  But all good things, of course, must come to an end.  
TSCO has suffered some heavy selling in recent weeks as the 
sinking broader market takes its toll.  Considering that there 
are probably a whole lot of shareholders in TSCO still sitting on 
gains from the past year, we think the stock is subject to a 
continued decline.  Monday's break under the $55 support level 
sure won't do much to calm the nerves of skittish investors.  
Bears can also be encouraged by the triple-bottom breakdown on 
the p-n-f chart. 

Our play is based on the assumption that TSCO will fall through 
psychological support/previous resistance at $50.00.  If this 
occurs, we could be rewarded with a rapid test of the 200-dma at 
$44.05.  However, this is a somewhat aggressive strategy that has 
landed TSCO in the high-risk/high-reward section.  Our trigger 
point will be at $52.49, one cent under today's low.  We won't go 
short until shares trade at or below this level.  If the play is 
activated our stop will be set at $55.11, just above today's 
high.  A more cautious strategy would be to wait for TSCO to 
actually fall below $50 before going short, and then follow up 
with a tight 5% stop.  Our official profit target for this play 
will be $45.06, above both the 200-dma and psychological support 
at $45.

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




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

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

Documentum Corp - DCTM - close: 14.25 change: +0.25 stop: 13.17

Go, DCTM, go!  Even with MSFT hitting 52-week lows and the NASDAQ 
falling by more than 4% on Tuesday, Documentum finished solidly 
in the green.  Shares even managed to pierce the $15.00 level on 
an intraday basis.  This relative strength bodes well for our 
play.  If DCTM can manage a gain in these market conditions, just 
imagine the upside potential if the NASDAQ actually rallies.  Of 
course, there's no guarantee that we'll see any sort of tech 
rally in the near-term, and DCTM would be hard-pressed to 
continue higher if the broader market keeps sinking.  
Conservative traders may want to be snugging up their stops to 
just under today's low of $13.70.  Traders could consider new 
entries on a move above today's high at $15.08.

Picked on July 22nd at $14.00
Gain since picked:      +0.25
Earnings Date        07/18/02 (confirmed)




---

Internet Security Sys. - ISSX - cls: 13.20 chg: -0.81 stop: *text*

ISSX popped higher this morning, moved above the 50-dma, and came 
within four cents of our action point at $15.01.  Fortunately our 
play was not activated.  The stock looked strong but was unable 
to buck the downdraft in the tech sector.  Of course, given the 
severity of today's NASDAQ sell-off (led by a 7.1% decline in 
MSFT), it's hard to pin much of ISSX's 5.7% decline on stock-
specific weakness.  The month-long (very slow) uptrend is still 
intact, which leads us to believe that shares will trade higher 
if/when the broader market sell-off abates.  For the time being 
we'll keep our trigger set at $15.01, with a stop (pending 
activation) at 13.64.  We may also adjust our entry strategy if 
shares bounce from the $12.00 level.

Picked on July xxth at $xx.xx <- see text
Gain since picked:      +0.00
Earnings Date        07/18/02 (confirmed)




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

Boyd Gaming - BYD - close: 12.90 change: -0.30 stop: 14.01 *new*

BYD started this week off on a bearish note and slipped to a new 
relative low, despite news that Thomas Weisel had initiated 
coverage on the stock with a "buy" rating.  The selling 
accelerated during today's session when BYD fell through the 
$13.00 level.  Although a strong rebound from $12.00 prevented a 
large loss, shares were unable to move back over the intraday 
shelf of resistance at $12.85.  With the MACD displaying a recent 
crossover and p-n-f chart displaying a fresh double-bottom sell 
signal, BYD still appears prone to additional selling pressure.  
With this in mind, aggressive traders could target new entries on 
a break below $12.00.  Note that an attempt to eliminate upside 
risk, we're going to tighten our stop to 14.01, safely above the 
50-dma.  This should protect a small gain of 10 cents.  Remember 
that we'll close this play if BYD trades at or below $10.50.

Picked on July 18th at $14.11
Change since picked:    +1.21
Earnings Date        07/17/02 (confirmed)





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

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

Jo-ann Stores - JAS.A - cls: 20.40 chg: +1.25 stop: 20.06

This short play received an unexpected shot in the arm on Monday 
afternoon when sellers hammered JAS.A for heavy losses in the 
final hour of trading.  It's still unclear exactly what caused 
this steep decline.  On a technical basis, bulls may have been 
eager to throw in the towel after near-term support at $21.00 was 
broken.  With shares closing well under psychological 
support/resistance at $20.00, we elected to lower our stop to 
$20.06.  JAS.A reached this level on Tuesday morning, thus 
closing our play for a 13.4% gain.  Shares seemed to benefit from 
positive day on the RLX.X retail index, which had fallen 
precipitously over the past week.

Today's 6.5% rebound in JAS.A could be expected after such a 
steep decline over the past week.  Although we'd be very dubious 
about the staying power of a continued rally, the oversold 
conditions in both JAS.A and the broader market suggest that the 
bears may harbor the most risk.  A failed rally near $22.00 could 
renew our interest in a short play.

Picked on July 18th at $23.17
Change since picked:    +3.11
Earnings Date        08/20/02 (confirmed)
 



--- 

Pinnacle Entertainment - PNK - cls: 7.95 chg: -0.81 stop: 9.31

We had a good feeling about PNK after the stock failed to respond 
to Monday's positive comments from Thomas Weisel.  Investors 
seemed completely oblivious to the firm's "buy" rating on PNK, so 
it's no surprise that shares sold off today in the absence of any 
news whatsoever.  Shares gapped slightly lower and quickly 
descended to our profit target at $8.00 (actually trading to a 
low of $7.75).  Our play was closed for a gain of $1.20, or 13.0% 
- Not a bad move for only three days!  Shares closed under the 
200-dma at $7.98, hinting at further selling on Wednesday.  
However, traders still short should be challenging the stock with 
a very tight stop-loss.  PNK has lost more than 20% in just four 
sessions and the daily stochastics (5,3,3) are pinned at oversold 
levels.  This has created a favorable climate for a sudden short-
covering rally.

Picked on July 18th at  $9.20 
Change since picked:    +1.20
Earnings Date        04/30/02 (confirmed)
 




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

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


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

..none..	

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

JCOM    J2 Global Communications   16.90     +1.55

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

..none..	

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

C       Citigroup                  27.25     -4.79
AVE     Aventis                    54.54     -3.47
BAC     Bank of America            58.11     -2.16
JPM     J.P.Morgan Chase           20.20     -4.32
CVX     ChevronTexaco              67.16     -2.36
SI      Siemens ADR                49.83     -2.77
AIG     American Intl Group        51.21     -4.94
GS      Goldman Sachs              68.00     -4.00
BTY     British Telecom            33.41     -2.14
DA      Groupe Danone Ads          22.35     -1.18
EBAY    eBay Inc                   53.16     -2.89
HI      Household Intl Inc         36.37     -2.47
D       Dominion Resources         50.70     -4.41
COX     Cox Communications         24.53     -2.59
CCU     Clear Channel Comm.        24.40     -5.54
NEM     Newmont Mining             22.65     -2.85
AL      Alcan Inc                  26.65     -1.28
MTB     M&T Bank                   73.37     -2.76
AGN     Allergan Inc               51.81     -3.75
UST     UST Inc                    26.38     -1.36
EXPE    Expedia                    48.41     -6.48
PTEN    Patterson-UTI Energy       21.72     -1.94
LOGI    Logitech Intl ADR          36.90     -5.46
AFC     Allmerica Financial        25.74     -4.15
BKH     Black Hills Corp           23.85     -1.96

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

FCN     FTI Consulting Inc         29.02     -2.88



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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
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staff makes every effort to provide timely information to its
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factors beyond our control.

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DISCLAIMER

Option Investor Inc is neither a registered Investment Advisor nor a Broker/Dealer. Readers are advised that all information is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor is it to be construed as a recommendation to buy, hold or sell (short or otherwise) any security. All opinions, analyses and information included herein are based on sources believed to be reliable and written in good faith, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. In addition, we do not necessarily update such opinions, analysis or information. Owners, employees and writers may have long or short positions in the securities that are discussed.

Readers are urged to consult with their own independent financial advisors with respect to any investment. All information contained in this report and website should be independently verified.

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