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Daily Newsletter, Tuesday, 08/06/2002

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PremierInvestor.net Newsletter                 Tuesday 08-06-2002
                                                   section 1 of 2
Copyright  2001, All rights reserved.
Redistribution in any form is strictly prohibited.

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In section one:

Market Wrap:      Equity Market's Gain Fueled by Strength in Greenback
Market Sentiment: Destination Unknown
Play-of-the-Day:  Wireless, With Emphasis On The Less

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U.S. Market Numbers
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MARKET WRAP  (view in courier font for table alignment)
-----------------------------------------------------------------        
      08-06-2002           High     Low     Volume Advance/Decline
DJIA     8274.09 +230.50  8418.15  8049.03 1.76 bln   2341/ 854
NASDAQ   1259.55 + 53.50  1279.57  1224.80 1.45 bln   2422/1042
S&P 100   431.17 + 12.61   439.84   418.56   Totals   4763/1896
S&P 500   859.57 + 24.97   874.44   834.60
RUS 2000  380.79 + 13.87   380.79   367.12
DJ TRANS 2235.50 +103.20  2256.69  2132.71
VIX        45.73 -  3.58    47.29    44.09 
VXN        64.18 -  3.34    67.08    61.94
Total UpVol 2,948M
Total DnVol   481M
52wk Highs      58
52wk Lows      371
TRIN          0.61
PUT/CALL      .76
-----------------------------------------------------------------

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

Equity market's gain fueled by strength in greenback

"The market hates uncertainty" and bears seemed to get a belly 
full today as the dollar's strength appeared to have many bears 
looking to cover some positions as the U.S. dollar posted strong 
gains against major foreign currencies.

Currency strategists attributed much of the strength in the 
dollar to technical factors, as well as the belief that the 
dollar is gaining as mutual funds sell stocks, especially euro-
denominated stocks, and repatriate the cash for their US-based 
investors.

Still, the recent move higher in the dollar is somewhat baffling 
to currency traders, coming so soon after the euro finally 
cracked parity with the dollar back in mid-July.  At the time, 
observers said the decline in the U.S. equity markets and the 
worsening outlook for U.S. growth would combine to turn the tide 
on the strong dollar.

Shahab Jalinoos, chief currency strategist at UBS Warburg in 
London said, "We see this as flow-based rather than fundamental.  
We're seeing an environment where some speculators who put on 
positions for a major dollar rout are being caught short."

Now, for equity traders, we can perhaps understand just what type 
of "uncertainty" the renewed strength in the US dollar may have 
had on bearish equity traders can't we?  While I don't disagree 
that the bullishness in the dollar could be technically driven, 
bearish equity traders face the uncertainty that it may be 
something more.  Perhaps some sign of renewed confidence in the 
U.S. economy, at least on a relative basis compared to other 
assets from around the world.

US Dollar Index Chart - Daily Interval




In this morning's 09:00 Update, I mentioned my "first" upside 
alert came with the US Dollar Index (dx00y) trading above 108.50.  
While we can never be sure, that "alert" may also have been 
triggered at some currency trading desks around the world.

But there is some disagreement between bullish and bearish dollar 
camps that the strength in the dollar is simply "technically" 
related.  Some currency traders believe that the bond market's 
recent bullishness and lower YIELDS are sign that the Fed will be 
cutting interest rates by as much as 75 basis points to 1% by 
year's end (current Fed funds is 1.75%).  Both Goldman Sachs and 
Lehman Brothers estimated that they now expect the Fed to hold 
policy steady at next week's FOMC meeting, but that the Fed will 
be monitoring economic data in the weeks ahead and will be ready 
to cut rates if warranted.


Some dollar bulls may have taken those comments of an "aggressive 
cutting Fed" as bullish not only on the dollar, but also as it 
relates to further stimulating to the U.S. economy.

Things get further interesting when it was reported that a large 
European-triggered asset allocation program was triggered, which 
had European-based mutual funds selling Treasury bonds and buying 
stocks early this morning.

This "explanation" for today's action also makes some sense as it 
relates to what we've talked about in the past regarding what a 
foreign investor might do on a step-by-step basis if looking for 
exposure to U.S.-based assets.  Step one would be to convert euro 
currency into U.S. Dollars (result=strength in U.S. Dollar).  
Step two might be to "park" the cash in short-term Treasuries 
(earn a little interest, perhaps make some money from capital 
appreciation, but getting ready to shift into U.S. equities on 
lower prices on thought of Fed cutting rates and stimulating 
economy).  One could argue that the recent strength in the U.S. 
Dollar was definitely foreign capital coming back to the U.S. and 
further point to yesterday's multi-year low in the 5-year YIELD 
($FVX.X) being spurred by aggressive buying in this shorter-term 
Treasury bond (as compared to 10-year and 30-year maturities).

I referenced the July 26th date on the chart above.  The "next" 
trading day was Monday, July 29th.  Keep this in mind and make 
note of the S&P 500's (SPX.X) +5.3% gain.  We'll test this "date" 
against the bond market.  After all, the U.S. Dollar Index 
(dx00y) didn't do much on July 29th (it did strengthen a little) 
in percentage terms, but the break of mid-regression could well 
have been a near-term "technical" event, which spilled over to 
the bond market.

5-year Treasury YIELD Chart - Daily Interval




We can "step back" a little and perhaps see how the renewed 
strength in the dollar (foreign assets converting to US dollars) 
have been placed into Treasuries as depicted by the 5-year YIELD, 
which may in turn created such demand (US investors running for 
safety on weaker economic data, combined with recently converted 
foreign investors parking cash in Treasuries) and now some 
selling in Treasuries today, creating cash that was allocated 
toward stocks.

Again, credence can be given to "technical" comments regarding 
the dollar, but also to comments regarding a Fed cutting rates, 
which may stimulate the economy further.  It's important to 
remember that the Fed does not necessarily dictate what investors 
do with Treasuries.  We've seen in the past that the bond market 
will actually sell Treasuries (creates higher YIELD) when the Fed 
is cutting rate, and will sometimes buy Treasuries (creates lower 
YIELD) when the Fed is raising interest rates.  The bond market 
will simply weigh the risk/reward benefits between YIELD and 
other assets (longer-term Treasury maturities, corporate bonds, 
equities).

Tomorrow morning, I'd have a close eye on the Treasury market.  
I've "labeled" the July 26th bar, and the "day after" which was 
July 29th when we saw the 5-year YIELD "gap higher" above the 
34.58 (3.458%) level, which may be thought of as a "technical 
event" which really spurred that day's 5.3% surge in the S&P 500 
(SPX.X).  Tomorrow morning, look for any break above today's 
5-year YIELD high of 33.08 or 3.308% to perhaps create a 
"technically" driven rally in stocks as equity bears may turn and 
try and cover some shorts further.

As such, I'd suggest that bearish traders in most equities be 
careful at tomorrow's open.  I've asked the PremierInvestor.net 
play pickers to have some downside triggers set on bearish 
trades, as it is currently very difficult to ascertain if 
"technical" or "fundamentals" are in play.

A quick look at our recently created "Beetle's Balanced 
Benchmark" asset allocation portfolio will give traders and 
investors an idea based on price, how things are unfolding since 
July 31 and today's action.  

Beetle's Balanced Benchmark Portfolio - From July 31 close




For those not familiar with our benchmark fund, it is nothing 
more than an EQUALLY weighted type of portfolio, where 
approximately $1,000 was hypothetically invested into the various 
asset classes as of the close of trading on July 31, right after 
the quarterly GDP data was released.

Every column to the "right" of the #Shares column is as of July 
31 close.  

As it relates to today's action in the currency market, simply 
imagine a trader may have shorted the U.S. Dollar Index (dx00y) 
at the close of trading on July 31st at $107.38.  That trader is 
currently down about 1.06%.  Now imagine you're an institutional 
currency trader and shorted about $500 million worth of US 
dollars that day?  While it may seem "far fetched" to think that 
we could be seeing technical short covering in the dollar, a 
technician understands that a short-covering rally can be painful 
if you're on the wrong side of a trade for too long.

Conversely, there's undoubtedly still some "smart" money dollar 
shorts that are short way higher at $119.  They've seen nice 
gains from the bearish dollar side all the way down the scale, 
but have recently seen some erosion of those gains and now 
perhaps assess further risk to $111.20 (based on our retracement 
from tonight's 1st chart).  

Just as you can see "technical" types of chain of events in an 
asset class like cash, that "chain of events" can then spill over 
to the next asset class as depicted by the various maturities in 
the Treasuries.  As it relates to our "portfolio" that would be 
the SHY, IEF and TLT baskets of various Treasury maturities.  

What is starting to get interesting as we move further away from 
the July 31 close is what the MARKET may be saying about 
corporate bonds in the higher grade area.  Note the P/L % since 
July 31, is 0.59% (based on price of the underlying basket of 
corporate bonds).  This could mean that the MARKET currently 
perceives higher graded corporate bonds slightly more "risky" 
than the 1-3 year Treasuries, but not as "risky" as the 7-10 year 
average weighted Treasury maturities.  As it relates to "risk," 
I'm simply saying that the MARKET perceives risk/reward and 
ALWAYS buys the best risk/reward trade.  Whether it be different 
maturities at the government level (longer time, more uncertain), 
or weighing government debt against corporate debt, or moving 
further out on the risk/reward scale to corporate debt versus a 
corporation's stock, of which there are no "guarantees" 
associated with a stock.  "Smart money" ALWAYS wins out.

So far (since July 31) "smart money" has been winning by buying 
dollars and fixed income as the "sub total" shows a current P/L % 
of +0.78%, despite today's $11.66 loss for the 5 asset classes 
combined (cash and bonds).

Conversely, stock traders made money today as it relates to the 
portfolio of $104.34, but have hypothetically lost -5.14% from 
the July 31st benchmark close.  For equities, my "general" 
risk/reward perception is that the Dow Diamonds (DIA) are less 
risky from a bull's perspective, than the more heavily technology 
weighted NASDAQ-100 (QQQ), with the S&P 500 being what many 
consider the equity market.

For a refresher on what "drove" us to create this asset 
allocation by of fund, subscribers can review the August 1st 
09:00 AM EST update. 
http://www.PremierInvestor.net/markets/intradayupdates/080102_1.asp

The "main equation" for bullishness in equities sure seems to be 
... Bullish stock prices = Stronger $ + Weaker Treasury.  Just 
the opposite seems to be true for Bearish stock prices.

If you're a "fundamental" trader and having success trading some 
bearish trades from the fundamental aspect and its working, then 
stick with it!  However, just be cognizant that there may indeed 
be some "technical" in the currency markets that then spill over 
to Treasuries than then make their way into how stocks are 
trading.

Rest assured, there are bearish equity traders that still 
understand that the GDP numbers show some economic growth, but 
there are some that are undoubtedly looking at what the dollar is 
saying combined with the daily volatility in Treasuries and 
thoughts of further Fed rate cuts that will keep a bearish equity 
trader a bit edgy.

Cisco doesn't disappoint

Shares of Cisco Systems (CSCO) $12.05 +6.07% finished this 
evenings post-market trading higher at $13.03 after the company 
reported pro forma earnings of $0.14 a share, which beat 
consensus estimates of $0.12 a share.  GAAP accounting, which 
would include all charges would have been earnings of $0.10 a 
share. (Analysts' estimates were based off of pro forma).

Recently completed Q4 revenues came in at $4.83 billion, which 
was slightly below consensus of $4.88 billion.  Earnings were 
driven by gains in market share and increased gross margins, 
which rose to 67.7% from 63.1% during the previous quarter and 
52.3% during the same quarter last year.  I (Jeff Bailey) find 
that type of gross margin improvement impressive, considering how 
competitive the networking equipment market is.

Cisco executives said that its enterprise customers remain 
cautious but steady while the telecom service-provider market 
remains challenged.

Tom Chambers, CSCO's CEO cited strength in the retail, education 
and retail banking industries versus weakness in the investment 
banking, energy, high technology and service providers sectors.

For the company's fiscal first quarter, sales are expected to be 
flat to up slightly on a sequential basis.  As usual, no target 
was provided for the bottom line.  Analysts have been expecting 
average to slight sales growth and flat earnings.

Cisco did say it is increasing its stock buyback program by $5 
billion to a total of $8 billion (of the total $8 billion, $2 
billion has already been repurchased).

In all, CSCO sure seems to me to be the "premium" networking 
name.  The increase in gross margins is telling that CSCO's 
products still can demand a higher price than the competitions 
competing products.  The "problem" remains the still rather slow 
economy.  Should the economy ever improve and companies increase 
their capex budgets, CSCO sure looks to be running a lean 
machine.

Jeff Bailey
Senior Market Technician
PremierInvestor.net


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

Destination Unknown
By Steven Price

I would love to offer our readers an explanation as to why the 
market rallied 375 points, before falling back to end the day up 
230.46, after a slew of bad economic news the last 4 days.  
Unfortunately I cannot see into the minds of all those buyers.  
What I can say is that the mind I do have access to, my own, was 
not among those buyers.  The economy is shrinking, unemployment 
remains constant, manufacturing is down, services are down, 
demand for technology products has been cut in half, and yet we 
had a huge rally.

The first reason being talked about is the possibility that the 
Fed will lower rates at next week's FOMC meeting.  While this is 
a distinct possibility, the bond market has already factored in a 
25 basis point move by the end of the year.  It is possible there 
will be a greater move, and this will certainly play a big part 
in any rally as the year moves forward.

There are some technical factors that may figure into this rally, 
as well.  First, the Dow support level of 8000.  I'm looking at 
the recent rally from a low of 7532.66 on July 24th, to the rally 
peak of 8736.72 on July 31st.  While 8000 was not a specific 
retracement level, it was awfully close to the 61.8% retracement 
level just below it, at 7992.61.  This factor, combined with the 
even number support level, may have provided a combined effect. 
If an investor is picking a bottom, there are two support factors 
here, rather than one.  Second, the last couple of times the 
Market Volatility Index (VIX.X) traded over 50, we experienced 
large rallies shortly thereafter.  On July 23, 2002, the VIX 
finished at 50.48.  The next day we experienced a rally of 488 
points.  On September 21, the VIX spiked to its recent high of 
57.31.  The following Monday we experienced a rally of 368.05.  
Going back to 1998, the connection is not as close, however worth 
noting.  The VIX traded over 50, reaching 52.12, on Friday 
October 9.  The following Wednesday we had a rally of 331 points.  
Third, the Nasdaq Composite had retraced almost it entire gain 
from July 24, trading yesterday within 14 points of that intraday 
low of 1192.42, and hovering above the 1200 mark, which was 
viewed as significant support.  The combination of support from 
8000, 61.8% retracement, the 1200 support in the Nasdaq and the 
high VIX reading may have combined to form their own trampoline.  
Remember, however, that even though you bounce pretty high off a 
trampoline, you eventually come back down.

Cisco's upcoming earnings, released today after the close, may 
have also factored into today's rally.  However, the fundamentals 
for the tech sector still look weak, with no upturn in PC sales 
seen until at least next year.  Cisco beat pro forma estimates by 
0.02, however revenue missed expectations by about 1%.  Also the 
$0.02 was just the pro forma number, and depending on how you 
view the release, they could be seen as having missed estimates 
by the same amount.  The company is also expanding its share buy 
back program.

GM announced that they are joining the ranks of companies that 
will be expensing stock options in the future.  The company 
stated this accounting change will reduce earnings by $0.15 per 
share in 2003,for a reduction of 2.4%. The other Dow stocks to 
have made the same announcement are Proctor and Gamble (PG), 
Coca-Cola (KO), and General Electric (GE).  Bear Stearns 
estimates that expensing options on all S&P 500 companies would 
reduce earnings by approximately 12% overall.  Tech companies 
usually compensate executives with a higher percentage of options 
than do other sectors.

It is hard to imagine this rally holding up, or continuing, after 
the slew of bad news in the last week.  Keep in mind, however, 
that the Dow had given up 700 points in the last week, so a 
bounce is not necessarily a shock to the system.  Interest rate 
speculation can move markets, and if investors are confident 
there will be a rate drop of more than 25 points next week, we 
may see the rally hold for a while.  The basic fundamentals, 
however, have not changed. I look for the rally to stall, if not 
tomorrow, then after whatever rally follows the FOMC announcement 
next week.


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

Market Averages

DJIA ($INDU)

52-week High: 10679
52-week Low :  7702
Current     :  8274

Moving Averages:
(Simple)

 10-dma: 8390
 50-dma: 9045
200-dma: 9759

S&P 500 ($SPX)

52-week High: 1226
52-week Low :  797
Current     :  860

Moving Averages:
(Simple)

 10-dma:  869
 50-dma:  858
200-dma: 1081

Nasdaq-100 ($NDX)

52-week High: 1782
52-week Low :  892
Current     :  902

Moving Averages:
(Simple)

 10-dma:  923
 50-dma: 1041
200-dma: 1362

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

The Semiconductor Index (SOX.X):  The semiconductor Index made 
its way back over 300 after dropping o a new low of 283 on 
Monday.  It will take a sustained rally in the tech sector to 
form a real bottom in this index.  The fundamentals, however, 
have not changed, and a re-test of the new low is a definite 
possibility.  Cisco's numbers are subject to interpretation, and 
tomorrow's trading will shed light on the company that many 
investors have been looking to for a rebound in the techs.

52-week High: 657
52-week Low : 283
Current     : 301

Moving Averages:
(Simple)

 10-dma: 319
 50-dma: 389
200-dma: 503


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

Market Volatility

A big day in the broader markets will take points off the VIX 
like a lawn mower cutting grass.  Of course each time we've seen 
what appears to be a significant rally lately, followed by a drop 
in the VIX, a subsequent drop in the market has brought the VIX 
back near 50.  So no predictions today.  We'd like to see how the 
market reacts heading into next Tuesday's FOMC meeting, when the 
Fed will announce its interest rate decision.  A continued rally 
will have the VIX back into the 30s.  A pullback, and subsequent 
fear of a 7500 re-test in the Dow will see it back near 50, or 
above.

CBOE Market Volatility Index (VIX) = 45.73 -3.58
Nasdaq-100 Volatility Index  (VXN) = 64.18 -3.34

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

          Put/Call Ratio  Call Volume   Put Volume
Total          0.76        633,215       480,564
Equity Only    0.62        486,692       300,630
OEX            0.71         43,004        30,379
QQQ            0.40         98,465        39,809

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

Bullish Percent Data

           Current   Change   Status
NYSE          29      - 1     Bull Correction
NASDAQ-100    25      - 3     Bull Correction
DOW           27      + 7     Bull Alert
S&P 500       25      - 1     Bull Alert
S&P 100       26      + 1     Bull Alert

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  1.59
10-Day Arms Index  1.27
21-Day Arms Index  1.36
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       2331           791
NASDAQ     2346           994

        New Highs      New Lows
NYSE         25             125
NASDAQ       23             163

        Volume (in millions)
NYSE     1,794
NASDAQ   1,531

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

Commitments Of Traders Report: 07/30/02

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 added significantly to their long positions.  While 
contracts were added on both sides, 25,000 were added to the 
longs, while only 11,000 were added to the short side.  Small 
Traders reduced both positions, however reduced long positions by 
an additional 6,000 contracts.


Commercials   Long      Short      Net     % Of OI 
07/09/02      396,321   456,164   (59,843)   (7.0%)
07/16/02      388,943   464,162   (75,219)   (8.8%)
07/23/02      405,969   471,704   (65,735)   (7.5%)
07/30/02      430,833   482,957   (52,124)   (5.7%)

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
07/09/02      145,017    71,402    73,615     34.0%
07/16/02      157,370    67,247    90,123     40.1%
07/23/02      166,713    73,778    92,935     38.6%
07/30/02      153,858    67,451    86,407     39.0%

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

Commercials added 4,000 short contracts to their positions, while 
adding only 1,000 long contracts.  Small Traders reduced short 
positions by 2,000 contracts, while adding less than 500 to their 
long contracts, for a 2,000 long contract increase overall.


Commercials   Long      Short      Net     % of OI 
07/09/02       31,227     39,592    (8,725) (12.3%)
07/16/02       33,152     39,866    (6,714) ( 9.2%)
07/23/02       37,204     43,601    (6,397) ( 8.0%)
07/30/02       38,163     47,343    (9,180) (10.7%)

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
07/09/02       12,520     8,348     4,175     20.0%
07/16/02       12,816    10,774     2,042      8.7%
07/23/02       12,756    11,152     1,604      6.7%
07/30/02       13,159     9,237     3,922     17.5%

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 kept their long positions approximately the same, 
while reducing their short positions by almost 2,000 contracts.  
Small Traders reduced both long and short positions dramatically.  
They reduced their long position by 2400 contracts and short 
position by almost 4,000 contracts.


Commercials   Long      Short      Net     % of OI
07/09/02       20,761    14,122    6,639     19.0%
07/16/02       20,357    14,074    6,283     18.2%
07/23/02       22,369    14,745    7,624     20.5%
07/30/02       22,429    12,811    9,618     27.3%

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
07/09/02        6,831     6,623       208     1.50%
07/16/02        8,524    10,133    (1,609)   (8.62%)
07/23/02        9,101    12,604    (3,503)   (16.1%)
07/30/02        6,778     8,999    (2,221)   (14.1%)

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))
===============

Verizon Communications - VZ - cls: 29.87 cls: -0.28 stop: *text*

Company Description:
Verizon Communications is one of the world's leading providers of 
communications services. Verizon companies are the largest 
providers of wireline and wireless communications in the United 
States, with 135.1 million access line equivalents and 30.3 
million Verizon Wireless customers. Verizon is also the largest 
directory publisher in the world. With more than $67 billion in 
annual revenues and approximately 241,000 employees, Verizon's 
global presence extends to more than 40 countries in the 
Americas, Europe, Asia and the Pacific. (source: company press 
release)

Why we like it:
The overall picture for the telecom and wireless sectors have 
been less than shiny lately.  With scandals ranging from WorldCom 
to the debacles of Qwest, the bruised sector still looks as if 
there could be rough waters ahead.  Looking at the Wireless 
Telecom Sector Index $YLS.X, we can see nothing but red since the 
index's inception in May of 2000.  The YLS has lost 84% since the 
high in July of 2000.  Ouch!

Verizon has also been no stranger to pain as the company has lost 
nearly 50% of its stock value since the high in December of 2000.  
Reporting earnings just one week ago, VZ came in-line with 
analyst estimates at .77 cents per share.  However, revenue was 
down -1.8% from a year ago, reflecting a contracting market.  

Closing below $30.00, VZ stands a fair chance at seeing it shares 
slide towards new lows.  Trading well below the 200-dma, and the 
50-dma, the wireless stock is has definitely been struggling to 
keep its head above water.  After closing a recent gap window, 
the wireless stock could not hold onto its gains, and has fallen 
3.13 points since the close four days ago.  Showing extremely 
weak relative strength in light of today's 230 point Dow rally, 
VZ closed down -0.28 cents at $29.87 today.  Short at current 
levels, the newsletter's stop is one penny above today's high at 
$31.40.  Because this stock looks especially weak, we do not have 
a specific target, though do see a potential slide to the $26.00 
range.  We will be watching VZ very closely, for if any 
astounding news stories surface that would change the future 
outlook for our trade, we will close the position.  Stay tuned 
for updates!

For annotated chart: click here.
Chart of: Verizon Communications, Daily.



Picked on August 6th at $29.87 
Gain since picked:       +0.00
Earnings Date         07/31/02 (confirmed)







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PremierInvestor.net Newsletter                  Tuesday 08-06-2002
                                                    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
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In section two:

Net Bulls
  New Bearish Plays:     VZ
  Bearish Play Updates:  PIXR
  Closed Bearish Plays:  CYMI, XLNX

Stock Bottom / Active Trader
  New Bullish Plays:     BLL
  New Bearish Plays:     PEP
  Bearish Play Updates:  AC, ALK, AZO, CPG, DIA, MER, PENN
  Closed Bearish Plays:  DD

High Risk/Reward
  New Bearish Plays:     MOVI
  Bearish Play Updates:  QCOM
  Closed Bearish Plays:  VRTS

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

Verizon Communications - VZ - cls: 29.87 cls: -0.28 stop: *text*

Company Description:
Verizon Communications is one of the world's leading providers of 
communications services. Verizon companies are the largest 
providers of wireline and wireless communications in the United 
States, with 135.1 million access line equivalents and 30.3 
million Verizon Wireless customers. Verizon is also the largest 
directory publisher in the world. With more than $67 billion in 
annual revenues and approximately 241,000 employees, Verizon's 
global presence extends to more than 40 countries in the 
Americas, Europe, Asia and the Pacific. (source: company press 
release)

Why we like it:
The overall picture for the telecom and wireless sectors have 
been less than shiny lately.  With scandals ranging from WorldCom 
to the debacles of Qwest, the bruised sector still looks as if 
there could be rough waters ahead.  Looking at the Wireless 
Telecom Sector Index $YLS.X, we can see nothing but red since the 
index's inception in May of 2000.  The YLS has lost 84% since the 
high in July of 2000.  Ouch!

Verizon has also been no stranger to pain as the company has lost 
nearly 50% of its stock value since the high in December of 2000.  
Reporting earnings just one week ago, VZ came in-line with 
analyst estimates at .77 cents per share.  However, revenue was 
down -1.8% from a year ago, reflecting a contracting market.  

Closing below $30.00, VZ stands a fair chance at seeing it shares 
slide towards new lows.  Trading well below the 200-dma, and the 
50-dma, the wireless stock is has definitely been struggling to 
keep its head above water.  After closing a recent gap window, 
the wireless stock could not hold onto its gains, and has fallen 
3.13 points since the close four days ago.  Showing extremely 
weak relative strength in light of today's 230 point Dow rally, 
VZ closed down -0.28 cents at $29.87 today.  Short at current 
levels, the newsletter's stop is one penny above today's high at 
$31.40.  Because this stock looks especially weak, we do not have 
a specific target, though do see a potential slide to the $26.00 
range.  We will be watching VZ very closely, for if any 
astounding news stories surface that would change the future 
outlook for our trade, we will close the position.  Stay tuned 
for updates!

For annotated chart: click here.
Chart of: Verizon Communications, Daily.



Picked on August 6th at $29.87 
Gain since picked:       +0.00
Earnings Date         07/31/02 (confirmed)





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

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

Pixar Animation - PIXR - cls: 41.72 chg: +1.90 stop: 43.01 *NEW*

In good news for our trade, Pixar's relative strength compared to 
the broader market was very poor today.  As the Nasdaq and Dow 
staged a strong short covering rally, PIXR only posted a small 
gain.  Without any fresh news on PIXR today, the animation 
company still seems to be trading in a relatively stable range.  
In good news for bulls, PIXR spent the day trying to move above 
the 50-dma, a respectable attempt at holding support.  In the 
end, PIXR was able to close three pennies above the 50-dma, which 
is currently at 41.69.  The Stochastics are still mid-range, and 
look as if they could go either way at this point.  This trade 
needs the broader market to display more weakness, or company 
specific negative news in order to induce further selling.  To 
"challenge" this trade, we will move our stop down to $43.01 in 
an effort to hold on to some gains, should the position continue 
to rally.  Our logic is that if PIXR continues its ascent, by 
covering our short early, we can always re-short the stock later.  
More aggressive traders can always leave a wider stop at $44.25, 
giving the position plenty of room to breathe.   


Picked on August 2nd at $43.58
Results since picked:    +1.86
Earnings Date         08/08/02 (confirmed)





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

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

Cymer Inc. - CYMI - close: 25.55 change: +1.90 stop: 26.11 

Wow! After coming with-in one penny of being stopped out earlier 
in the day, our trade was finally taken out of commission in the 
afternoon.   We certainly "challenged" the trade with a tight 
stop, and were happy to see that a 5.2% gain in light of today's 
events.  The MACD looked to be at very oversold levels and seemed 
like it could turn up with any buying momentum.  The stochastics 
are also in oversold territory but today's rally has them 
pointing upwards poised for a reversal.  CYMI did not have any 
new media buzz helping the stock move higher today.  However, 
some of today's rally can be attributed to CSCO reporting 
earnings tonight as suddenly bulls began to expect positive news 
from the technology giant.  New short positions could be 
considered if the broader market begins to fail again, however, 
it is important to keep a keen eye out for short covering in this 
stage of the game.  We would watch the $26.50 to $27.00 (and even 
$27.50) region as overhead resistance and a potential short-entry 
area.  

Picked on July 26th at $27.55
Change since picked:    +1.44
Earnings Date        07/22/02 (confirmed)




---

Xilinx - XLNX - close: 17.00 close: +1.02 stop: 17.62

As the broader market rebounded today, our play was stopped out 
this morning at 17.62, as XLNX staged an impressive short 
covering rally.  Judging by the move in the QQQ's today, we would 
have to bet that the market expects Cisco's earnings this evening 
to be pretty good. Our trade was stopped out fairly early in the 
morning, as XLNX gapped up, and continued to run.  If XLNX were 
able to close above support in the 17.65 area, the bulls would 
have something to cheer about.  However, this stock is still in a 
downward trend and has not broken resistance yet.  Shorts 
currently still in their positions could continue to hold, though 
a breach of $19.00 and $20.00 could spell trouble. With earnings 
expected from Cisco tonight, this evenings report as definitely a 
benchmark to watch.  In the quick two-day period that we were in 
this trade, the position was stopped out for a 4% loss.  
 
Picked on August 5th at  $16.95 
Results since picked:     -0.67
Earnings Date          07/18/02 (confirmed)
 





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

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

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

Ball Corp. - BLL - close: 44.05 change: +3.19 stop: *text*

Company Description:
Ball Corporation is one of the world's leading suppliers of metal 
and plastic packaging to the beverage and food industries. The 
company also owns Ball Aerospace & Technologies Corp. Ball 
reported 2001 sales of $3.7 billion, of which approximately $3.3 
billion came from its packaging segment and $400 million from its 
aerospace and technologies segment. (source: company press 
release)

Why We Like It:
In a rapid reversal of fortune for its shareholders, BLL has 
rebounded sharply from its July low of $32.82.   Helping to fuel 
the bounce was a strong earning report that featured a sharp 
increase in Q2 earnings and a positive outlook for the second 
half of 2002.  The company attributed the results to a strong 
demand for its plastic water bottles (seems everyone carries 
around bottled water these days) and a solid performance from its 
aerospace division.  In the most recent news development, BLL 
received an upgrade today from Salomon Smith Barney.  This had 
shares trading higher by 7.8%, backed by relatively strong volume 
of 925K shares.  BLL is now threatening to break above the $45.00 
region, which stymied rally attempts in June and July.  This 
level also happens to coincide with the 61% retracement from 
April highs to July lows.  Furthermore, a glance at the p-n-f 
chart shows that a trade at $45.00 will create a triple-top buy 
signal.  By placing a trigger to go long at $45.06, we're aiming 
to ride BLL back to the next shelf of resistance near $49.00.  
Although BLL has already experienced some strong gains, the daily 
stochastics (5,3,3) are wavering near the middle range.  This 
suggests that shares may have more upside potential.  If our play 
is triggered we'll use a stop at $42.89, a cent under today's 
low.  More aggressive traders could use a stop under the 50-dma 
at $41.22.

For annotated chart: Click here
Chart of: Ball Corporation, Daily.



Picked on August xth at $xx.xx <- see text
Results since picked:    +0.00
Earnings Date         07/25/02 (confirmed)
 



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

Pepsico Inc - PEP - close: 40.52 change: -0.42 stop: *text*

Company Description:
PepsiCo, Inc. serves consumers in two major businesses: beverages 
and snack foods. The company consists of Pepsi-Cola Company, the 
world’s second largest beverage company, Tropicana Products, Inc. 
the world’s largest marketer and producer of branded juices and 
Frito-Lay Company, the world’s largest manufacturer and 
distributor of snack chips. (source: company website)

Why We Like It:
Much like Pepsi spokeswoman Britney Spears' career, we think 
shares of PEP are headed for a downfall.  The stock dropped 
precipitously after failing to break over the $52 level in late 
June and reached a 52-week low of $35.01 about a month later.  
Shares then retraced roughly 50% of those losses and are once 
again edging lower.  We think this bearish reversal is a signal 
that the stock will eventually retest its 52-week lows.  As you 
can see from the above quote, PEP actually finished today's 
session with a loss.  That relative weakness is very telling.  
Shares were pressured on Monday by a downgrade from Thomas 
Weisel, but the bulls had no such excuse today.  It seems there 
just aren't many willing buyers at current levels.  Although the 
bulls may find some relief at psychological support ($40.00), the 
downtrending daily stochastics (5,3,3) suggest that PEP could be 
in store for a more pronounced decline.  By shorting the stock on 
a move under $39.98, we hope to capture a decline to the $36.00 
level.  If this play is triggered we'll use a stop at $42.72, a 
penny above yesterday's high.  On a related note, shares of KO 
are looking weak as well.  The stock recently sold off from its 
200-dma and also underperformed the Dow today.  It might be a 
good short play in its own right, but we believe PEP offers a 
more favorable risk/reward scenario.  

Picked on August xth at $xx.xx <- see text
Results since picked:    +0.00
Earnings Date         07/19/02 (confirmed)
 




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

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

Alliance Capital Hldg. - AC - cls: 28.28 chg: +1.52 stop: 30.01
 
Still trading in its descending channel, AC attempted to break 
resistance, staging a 5.68% gain today.  The financial services 
and holding company witnessed a short covering rally along with 
the rest of the market.  With a lack of new stories today, the 
rally in AC seems to simply be market related.  Our stop loss for 
this trade still remains at $30.01, one penny above psychological 
resistance.  Since the inception of our trade, the StochRSI still 
remains in the overbought region, leaving some ambiguity to which 
direction the trading momentum will head.  New short positions 
could be considered above $28.00, however, it is important to 
maintain a very tight stop.      
 
Picked on August 2nd, at $28.00 
Results since picked:     -0.28
Earnings Date          07/23/02 (unconfirmed)




---

Alaska Air - ALK - close: 22.05 change: +0.54 stop: 24.01

Alaska Air reported on Monday morning that its July traffic 
increased by 2.1%.  This news did little to prop up the stock, 
which continued to retrace its recent rally.  Of course, today's 
action was more palatable for the bulls.  With AMR, CAL, and DAL 
all trading at or near 52-week lows, it wasn't surprising to see 
the airline sector participate in today's broader market rally.  
The mere suggestion of an interest rate cut provided traders with 
an excuse to cover short positions.  ALK moved higher with the 
XAL.X airline index and posted a 2.5% gain.  Not a bad move, but 
we believe the bears are still firmly in control.  Today's move 
was not backed by strong volume, and the stock remains safely 
under the declining 50-dma ($24.35).  Bearing in mind that shares 
may find support at $20.00, new bearish entries could be targeted 
on a move below Monday's low of $21.70.

Picked on July 30th at $23.62
Results since picked:   +1.57
Earnings Date        07/22/02 (confirmed)
 



--- 

AutoZone - AZO - close: 67.67 change: +2.37 stop: 70.86 *new*
 
During trading today, AutoZone was able to muster strength with 
the rest of the market and posted a 3.6% gain.  Although we are 
wary of this development, we are encouraged that AZO is still 
underneath the 200-dma, which is an important institutional 
benchmark.  Making us nervous, the daily Stochastics are mid-
range and could go either way.  Without any noteworthy news 
surfacing in today's session, the positive move in AZO could be 
from technical short covering.  Although this stock does not seem 
to have substantial relative strength, a close above the 200-dma 
could pose a threat for shorts.  Because of this reasoning, we 
are moving our stop to $70.86, which is one penny above the high 
three days ago, and above the 200-dma today.     
 
Picked on July 25th at   $67.96 
Results since picked:     +0.29
Earnings Date          09/24/02 (unconfirmed)




---

Chelsea Property - CPG - close: 32.00 change: +0.20 stop: 34.11

It's been a pretty lackluster week for CPG so far, with shares 
trading in a narrow range on declining volume.  Given the fact 
that shares couldn't muster more than a small gain today, CPG 
looks poised to head lower if the broader market reverses course.  
A close under the 50-dma ($31.81) would not be a positive 
development for the bulls.  For the time being we're going to 
leave our stop set at $34.11.  This gives CPG some breathing room 
but will still force shares to trade above last Thursday's high.  
More cautious traders may want to use a stop slightly above 
Friday's high of $33.00.  New entries can be targeted on a 
rollover under today's low.
 
Picked on August 2nd at $32.68
Results since picked:    +0.68
Earnings Date         08/12/02 (confirmed)




---

Diamonds Trust - DIA - close: 83.00 change: +2.53 stop: 85.06

We suspected that the Dow Jones would find some buyers near the 
8000 level, but were nonetheless surprised at the strength of 
today's explosive rally.  Rumors of an imminent fed rate cut and 
short-covering ahead of Cisco's earnings report fueled gains in 
nearly every sector that we follow.  When all was said and done 
the Industrials had posted a 230-point gain.  Despite today's 
action, the index still faces overhead resistance at 8500.  We 
believe the falling daily stochastics (5,3,3) and late afternoon 
sell-off are harbingers of further weakness.  A rollover from 
$85.00 might provide an action point for new bearish entries.  
Don't forget to check out Jeff Bailey's Market Wrap for more on 
today's action.

Picked on July 25th at $84.70
Results since picked:   +1.70
Earnings Date:            N/A




---

Merrill Lynch - MER - close: 32.35 change: +0.79 stop: 35.01

With shares of MER dropping as far as $31.25 on Monday, we 
elected to tighten our stop-loss to $35.01.  This level remained 
unmolested today, with the stock managing to reach a high of only 
$33.17.  Considering the fact that shares had fallen for four 
consecutive sessions, today's 2.5% gain isn't all that 
impressive.  The lack of a substantial short-covering rally in 
MER suggests that there may be more downside on the horizon.  
However, where the stock heads next will likely depend on whether 
the Dow Jones can hold today's gains.  Also, given the recent 
events with Martha Stuart and her broker's assistant potentially 
"fessing up", the stock could be in for more heat.  Aggressive 
traders could target new entries if MER falls below yesterday's 
low of $31.25, but bear in mind that support may emerge at both 
the July low of $30.97 and the psychologically significant $30.00 
level.

Picked on August 1st at $34.30
Results since picked:    +1.95
Earnings Date         07/16/02 (confirmed)




--- 

Penn National - PENN - close: 15.72 change: +1.13 stop: 16.11
 
Trading up +1.13 points today, PENN notched up 7.74% to close at 
15.72.  The gaming company did not have any news that triggered 
the rally; rather, the move might be simply attributed to broader 
market short covering.  After all, the Nasdaq gained 53.54 
points, or 4.43%.  Because PENN had a larger percentage gain than 
the Nasdaq, we could infer that in an ascending market, Penn 
Gaming has good relative strength.  Thus, we will maintain our 
strict stop at $16.11, which would allow a 7.8% loss if the 
position completely fails.  Overhead, the bears are happy to see 
the declining 50-dma at 15.98, which could help provide 
resistance below our stop.  Today's volume clocked in at 272,400 
shares trades, almost average for this stock.  Although we are 
concerned about this play, the stock does have tough resistance 
at 16, and we would not go long until a breakout above this 
level.   

Picked on July 25th at      $14.95 
Change since picked:         -0.77
Earnings Date             07/25/02 (unconfirmed)





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

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

DuPont - DD - close: 39.76 change: +1.66 stop: 40.26

A combustible mixture of oversold market conditions and Fed-
related rumors ignited a broad-based short covering rally on 
Tuesday.  DD moved higher with the Dow Jones, plowing through the 
$40.00 level, and violating our stop at $40.26.  Our play was 
closed for a hypothetical profit of $1.35, or 3.2%.  The 
technical picture is somewhat hazy, making it difficult to gauge 
where DD is headed next.  While the daily stochastics are hinting 
at a rebound, bears can be encouraged by the way shares slipped 
back under $40.00 in afternoon trading.  Traders still short may 
want to now use a stop just above today's high of $40.45.  In the 
news today, DuPont reached a proposed settlement related to a 
class action lawsuit filed in Ontario.  This did not seem to have 
a significant impact on the stock price.

Picked on July 31st at $41.61
Results since picked:   +1.35
Earnings Date        07/24/02 (confirmed)
 





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

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

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

Movie Gallery Inc - MOVI - close: 12.83 change: -0.67 stop: *text*

Company Description:
Movie Gallery currently owns and operates a total of 1,592 video 
specialty stores located in 42 states and five Canadian 
provinces. Movie Gallery is the leading home video specialty 
retailer primarily focused on rural and secondary markets. 
(source: company website)

Why We Like It:
Although earnings were up this morning, investors spoke out in the 
voice of a sell-off, with a decline of -4.96% in today's session.  The 
video rental chain reported 27 cents per share versus an estimated 25 
cents expected from analysts.  The number three video retailer seemed 
to have the street beat with great news.  However, worries of future 
revenue sharing agreements with movie studios threatened to chip away 
at long-term profits.  The bottom line hints that even though sales 
forecasts are up, if the company has to pay more to studios, they will 
net less money in the end.   

Considering the technical side of this position, there are several 
things we are looking at.  First, today's close at 12.83 is below the 
relative support range of the last three weeks.  The stock recently 
failed near the 50-dma, and has since dipped below the 200-dma.  The 
Stochastics indicate selling pressure, as they are now dipping into the 
oversold region.  The RSI indicator has also just dropped into the 
oversold region as well.  Today's weakness came in the face of a 230-
point rally in the Dow, and a 78-point gain in the Nasdaq.  Thus, it 
would be fair to say that MOVI's was relatively weak versus the broader 
market.  

Given that investors seem to be fleeing MOVI even with decent earnings, 
we think there could still be some downside in this stock's future.  
Initial support lies at $12.50 and $11.75 should MOVI begin to fall.  
Because today's move could be countered with a rebound tomorrow, we are 
putting our trigger to enter this position below today's low.  If our 
trade is triggered at $12.49, we will be reasonably conservative with a 
stop at $14.10.  Given a potential 12.9% loss, and the low price of 
this stock, we have elected to put this trade in our high-risk section. 
If all things work out in our favor, we are hoping that shares will 
eventually reach our profit target of $10.06, yielding a move of almost 
20%.  Trade wisely, and watch your stops! 

For annotated chart: Click here
Chart of: Movi Galleries Inc, Daily.




Picked on August xth at $xx.xx <- see text
Results since picked:    +0.00
Earnings Date         08/06/02 (confirmed)
 




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

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

QUALCOMM Inc - QCOM - close: 25.18 change: +1.43 stop: *text*

QCOM traded sharply higher with the NASDAQ on Tuesday and never 
approached our entry point of $23.20.  The lack of any positive 
company news leads us to believe that today's 6.0% rally was 
simply a function of short covering.  Although we were hoping for 
a close below $25.00, we're not going to hang up on QCOM just 
yet.  We're moving our trigger up to $24.08, just under today's 
low.  Our reasoning for this strategy is as follows: QCOM was 
trading near $25.85 in after-hours, most likely in response to 
the positive CSCO earnings.  This leads us to believe that shares 
will gap higher on Wednesday morning.  Another strong performance 
will probably send QCOM to the dropped plays list.  However, a 
subsequent reversal and move back under $25.00 would be a bearish 
development that could lead to another downward leg.  If our new 
action point is hit, our stop will be set at $26.11, two cents 
above today's high.  More cautious traders could use a stop just 
above $25.18, where shares settled on Tuesday.  Aggressive 
traders could also look for a failed rally at $28.00 as a 
possible bearish entry point... This of course, is assuming the 
stock makes it that high!
 
Picked on August xth at $xx.xx <- see text 
Results since picked:    +0.00
Earnings Date         07/25/02 (confirmed)
 




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

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

Veritas Software - VRTS - cls: 15.97 chg: +0.99 stop: 16.31

Short-covering ahead of tonight's CSCO earnings had the majority 
of NASDAQ-100 components trading sharply higher, including VRTS.  
Skittish bears may still have fresh memories of the pain that 
CSCO inflicted when their May earnings release met analyst 
expectations and triggered a huge tech rally.  VRTS finished with 
a 6.6% gain.  Our short play was stopped out for a 3.6% loss when 
shares reached our stop-loss shortly after noon.  It goes without 
saying that the trading in VRTS tomorrow will likely be dictated 
by Wall Street's reaction to CSCO's announcement.  Based on the 
after-hours trading, we're expecting that VRTS will continue 
higher tomorrow.   We would not recommend holding short positions 
at this time.

Picked on August 2nd at $15.74 
Results since picked:    -0.57
Earnings Date         07/16/02 (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 

WSFS    Wsfs Financial Corportaion 26.64     +1.47 
SXT     Sensient Technologies      21.91     +0.61
WEG     Williams Energy Partners   33.69     +1.59
ESL     Esterline Technology       18.90     +0.75

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

BDDP    Ballard Power Systems      12.68     +2.54

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

WEC     Wisconsin Energy Co.       25.61     +1.02
MRCY    Mercury Computer Systems   21.45     +5.00
RY      Royal Bank of Canada       33.70     +1.28
ANSI    Advanced Neuromo Sys.      33.95     +1.49
HYDL    Hydril Company             24.25     +1.49

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

NUE     Nucor Corporation          46.44     -1.31
FRX     Forest Labratories         69.14     -2.96
KMP     Kinder Morgan Entr.        28.00     -1.05
G       Gillette                   30.51     -1.03
MBI     Mbia Inc.                  43.20     -1.61

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

DOL     Dole Food Co.             28.46     -0.24
AZN     Astrazeneneca             34.72     -0.88
EEP     Enbridge Energy Partners  41.37     -0.10
ACAM    Acambis                   32.51     -1.23




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DISCLAIMER
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This newsletter is a publication dedicated to the education
of stock traders. The newsletter is an information service
only. The information provided herein is not to be construed
as an offer to buy or sell securities of any kind. The
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