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Daily Newsletter, Thursday, 08/08/2002

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PremierInvestor.net Newsletter                  Thursday 08-08-2002
                                                    section 1 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
=================================================================

In section one:

Market Wrap:      Torn Between Two Lovers...
Play-of-the-Day:  Certifiably Certified
Market Sentiment: Slow and Steady


************************************************************
MARKET WRAP  (view in courier font for table alignment)
************************************************************
      08-08-2002           High     Low     Volume Advance/Decline
DJIA     8712.02 +255.90  8717.42  8430.33 1.89 bln   2191/ 987
NASDAQ   1316.52 + 35.60  1316.52  1263.31 1.48 bln   2038/1312
S&P 100   457.16 + 15.70   457.52   440.83   Totals   4229/2299
S&P 500   905.46 + 28.69   905.84   875.17
RUS 2000  389.84 +  6.37   390.04   381.09
DJ TRANS 2333.00 + 61.60  2334.81  2255.61
VIX        39.80 -  3.27    43.85    39.71
VXN        59.35 -  9.49    71.16    59.26
Total Vol   3,609M
Total UpVol 2,767M
Total DnVol   797M
52wk Highs   69
52wk Lows   314
TRIN        0.68
PUT/CALL     .75
*************************************************************

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

Torn between two lovers....

is perhaps the only way I can explain my current "posture" toward 
the equity markets after today's action.  I "love" to trade 
bullish and bearish, and will do either on a dime.  Right now, 
I'm torn between the two, and I think the bulk of other market 
participants are feeling the same and casting their votes 
accordingly.

I've mentioned before that I listen to CNBC during the day, but 
mostly as some background noise.  People I listen to for insight 
and analysis are David Faber (I've been on the same side of the 
"trade" as his commentary on specific stocks over the years, so 
I'm a bit biased with some reporting he's done, which I think is 
very insightful), Rick Santelli (he's in the bond pits, knows the 
players, and gives excellent scenarios on why something may be 
happening, which we can test against with the charts), Art Cashin 
(from Paine Webber, on the floor at the NYSE, gives good insight 
to what bulls/bears and institutions are doing) and Bob Pisani 
(CNBC reporter at the NYSE, talking to traders, getting a feel 
for what they are seeing).

Today's late-afternoon comments from Bob Pisani, combined with 
recent comments from Art Cashin, has Pisani saying that traders 
just don't have a lot of "firm" orders in their books right now.  
This is from the buy and sell side.

Why is this I wonder?  Well.... I think the Dow's close right on 
downward trend is testimony to just how "torn" traders and 
institutions are right in here.  The lack of "firm" orders on 
trader's books was noted as one reason we're seeing these 100 and 
200 point Dow moves on an intra-day and daily basis.  So why no 
"firm orders?"

Dow Industrials Chart - Daily Interval




On one hand, economic signals are mixed.  The jobless claims 
numbers continue to show the 4-week average remaining below the 
important 400K level and at a 17-month low of 379,000.  This is a 
positive for economy and continues to make a bull's case for some 
type of sustained economic growth, which can lead to firming 
consumer confidence for those consumers not getting laid off, and 
some actually getting a job.

With low inflation and some sputtering economic signs, the Fed 
does have room to cut rates without worrying about inflation 
near-term.  This type of talk has the Dow Industrials closing 
right on downward trend.  The last time the Dow broke above a 
downward trend was back on May 8th.  At that time, the bullish % 
charts were beginning to show weakness from a high level of 
bullishness and were more overbought.  The Dow sputtered lower 
for two sessions, then jumped sharply higher.

Just six session's ago, GDP and ISM data showed a sputtering 
economy and bears looked to have the upper hand.  However, in 
just three sessions, the Dow is right back where it was after the 
weak economic data and bears have to be questioning just what the 
heck is going on.  I know from recent purchasing of some smaller 
sized put positions that I'm not enjoying today's gains from the 
bearish side of my account.  Fortunately, I'm not short millions 
or billions of dollars worth of equities like some institutions 
certainly are.  A break above trend could have a bunch of bears 
looking for the exits ahead of next weeks Fed meeting.

Remember, supply/demand can work both ways.  If reports are 
correct that there aren't a lot of firm buy or sell orders in 
trader's books right now, then the "force" of an upside move 
becomes rather uncertain.  It's one thing to be long a stock and 
have it decline as you know the lowest it can go is $0.00.  
However, it's another thing to be short a stock and know the 
highest it can go is "infinity."

I've been on both sides of "short-squeeze" environments, and I 
can emphatically say, it is no fun being overly short when bears 
begin to panic and there isn't much supply.

You and I can imagine that a disciplined bear has most likely 
been scaling back their bearish exposure the past session or two.  
At the same time, there are undoubtedly some bears that have felt 
some concern, but stayed their course, looking for downward trend 
to hold.  If it doesn't, anything can happen and some powerful 
upside moves can be had.

Then you've got a more modest economic growth outlook from the 
GDP data, and a mixed bag of retail sales.  A couple of weeks ago 
I mentioned "seasonal" upswing to some retail stocks from the 
back to school crowd.  Stocks I was more bullish on included 
discount retailing stocks like Wal-Mart (NYSE:WMT) $49.19 +1.67% 
and Kohls (NYSE:KSS) $68.06 +2.73%, while I was less enthused 
with the more trendy and higher-end retailers like Abercrombie & 
Fitch (NYSE:ANF) $21.89 and Gap Stores (GPS) $11.16 +0.08%.

Today, Gap Stores (GPS) hardly budged despite GPS saying it 
expects to top Q2 EPS, even though July comps are going to fall 
8%.  Once again, we hear of a company "beating estimates," but 
the upside is coming from cost reductions, and not any type of 
top-line growth.  Not yet at least.  While the stock did trade 
about twice its average daily volume of 4.4 million shares, the 
stock traded in a relatively tight range.

Consumer electronics retailer Best Buy (NYSE:BBY) $19.55 -36.52% 
did more than budge after the company cut its second quarter 
guidance saying that sales "softened significantly."  The company 
cited its reduced guidance and slower sales to a decline in 
consumer confidence.

I could go on and on with the mixed signals that are coming in 
from the data, but you and I, along with institutional investors 
can all sense the uncertainty of what the economic data is 
saying.  In summary, "signs of slowing growth, but a lot of 
uncertainty as to what rate and how long lasting the growth" has 
trader's order books lacking of any firm orders that might hint 
of any lasting type of commitment.

One type of "commitment" that does seem to be present in the last 
couple of sessions is from bears, getting more aggressive with 
their short covering.

Trading smaller positions. Bullish and bearish!

With traders commenting that order books lack any type of "firm" 
orders, I'm not going to question that considering the volatility 
witnessed (up and down) the past two weeks.

My latest strategy of shorting partial positions (1/4 and 1/2 
positions) or purchasing put options on stocks like biotech 
bellwether Amgen (NASDAQ:AMGN) $47.91 +4.79% and Dow component 
General Electric (NYSE:GE) $31.95 +3.9% that have rallied to 
resistance levels has obviously been having a difficult time the 
past two sessions.  

AMGN is probably not considered an "economically" sensitive 
stock, and looks like bullish traders are going to take the risk 
with this kind of stock, while bears get squeezed with the stock 
breaking above lower consolidation.

However, GE can be considered an economically sensitive stock and 
this stock has generally been performing "in line" with the 
market action, if not slightly outperforming.  The only thing 
I've done "right" as it relates to these two bearish trades, is 
trade smaller positions.

Now, with uncertainty from the economic data, and Bob Pisani's 
comments that there just isn't many "firm orders" in trader's 
books, then the only thing I'm rather certain of, is we're going 
to continue to see some volatile action.

Why could/should a bear be jittery?

I'm going to "stop" with the mixed economic data and once again 
look at my primary indicator of "market risk" and the S&P 500 
Bullish % ($BPSPX) from www.stockcharts.com.  I haven't talked 
much about the various bullish % charts, mainly because they 
haven't changed that much.

One other thing, and really the main thing, that has me "jittery" 
as a bearish trader in stocks (regardless of how weak some appear 
to be) is that bears still carry the bulk of the risk.

S&P 500 Bullish % Chart - 2% box




While the "externals" of the S&P 500 Index (SPX.X) 905.46 +3.27% 
have been just as volatile as the Dow Industrials, the 
"internals" as depicted by the S&P 500 Bullish % ($BPSPX) from 
www.stockcharts.com has been slowly showing some internal signs 
of recovery and net gains of stocks generating new buy signals 
and negating sell signals on their supply/demand charts takes 
place.  Bears understand that this market (S&P 500) is still 
"oversold" on a longer-term basis, and it can be very prudent to 
cover short positions, or at least close some partial positions 
when downward trends are broken to the upside, bearish targets 
are achieved, or buy signals are generated.

S&P 500 Index Chart - Daily Interval




The broader S&P 500 Index (SPX.X) 905.46 +3.27% has been just as 
volatile as the Dow Industrials.  Yesterday's final hour move 
above the 872 level and close above that retracement resistance 
put a bears risk at 912.

What made matters "worse" for bears today was the IMF decision to 
loan Brazil $30 billion to try and help ease concerns in that 
part of the world.  That also helped ease some near-term worries 
regarding exposure that Dow components Citigroup (NYSE:C) $33.90 
+7.55% and JP Morgan (NYSE:JPM) $26.38 +9.73% have in that region 
of the world.

Another factor that has bears jittery and bulls rather hopeful is 
what is taking place in the Treasury bond market.  The benchmark 
10-year saw solid selling today and this frees up some cash, 
which can find its way into equities.

10-year YIELD Chart - Daily Interval




Today's 10-year YIELD ($TNX.X) close above the 43.65, or 4.365% 
level of retracement has me concerned as a bearish equity trader, 
and placing some tight stops on any trades.  The selling in 
Treasuries does look to be lagging the move in equities, and this 
is something similar to what we witnessed in November, when 
equities jumped from "oversold" levels, but the confirming move 
higher in Treasury YIELDS (caused by selling) raised cash from 
the Treasury market, and had stocks building gains.

I do think equity bulls can be taking some bullish positions, but 
with the volatility we've seen, I would be equally cautious as a 
bearish trader and ease into things with partial positions.

Again, try and help give a trade some room with a wider stop, by 
limiting positions to 1/4 or 1/2.  If a "full position" for your 
account is $5,000 and you always use a trailing stop of 7-10%, 
then reduce your trade size to 1/2, or $2,500 and give a little 
wider stop of 12-15% to allow for a more volatile market.

Jeff Bailey
Senior Market Technician
PremierInvestor.net


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

Oracle Corporation - ORCL - cls: 10.01 cls: +0.49 stop: *text*

Company Description:
Oracle iLearning, offered as an integrated component of the 
Oracle E- Business Suite or as a standalone module, is an 
enterprise learning management system (LMS) that provides a 
complete infrastructure for organizations to manage, deliver, and 
track training participation of employees, customers, and 
partners in both e-Learning and classroom based environments. 
Oracle iLearning may be installed at the customer's site or as an 
outsourced service, eliminating the need for complex installation 
and ongoing software maintenance. (source: company press release)

Why we like it:
After certifying its books to the SEC on July 29th, 2002, Oracle 
seems to be in the clear from accounting worries.  Further, on 
August 5th, the SEC cleared the sworn affidavits by Oracle, 
determining that the tech giant was in full compliance.  This 
information definitely helps to ease investors' fears that the 
company could have accounting debacle problems in the future.  
Part of Oracle's ability to quickly certify their books, comes in 
light of previous problems.  ORCL suffered a near stock meltdown 
in 1990, as the company had several accounting issues.  Of 
course, the only accounting fear that we may still have is 
whether the company suddenly decides to begin expensing stock 
options, which could affect the bottom line negatively.

Our long position is rationalized through explanation of 
technical analysis.  Oracle has been trading in an ascending 
channel during the last few months and has proved reasonable 
relative strength versus the broader market.  The stock looks 
good, as it has been able to hold support on the 50-dma, and 
seems to be trading back towards the 200-dma.  On a weekly chart, 
ORCL, is also displaying "bottoming" characteristics, though no 
one can be completely sure yet.  However, the weekly Stochastics 
seem to be trading up with strength, as they head for the 
overbought region.  Our position schematics are fairly simple.  
To begin, we would like to see continued strength; thus, we will 
put a simple trigger a few cents above today's high at $10.06.  
Considering that ORCL closed at 10.01 a couple of weeks ago, we 
don't want another head fake.  Further, if the stock does begin 
to rally, we will target 11.95, which is five cents below 
resistance at $12.00 on the P&F chart.  If the stock is able to 
stay above the 10.00 level, it could identify new support and 
establish a new range.  Thus, once we are triggered in the 
position, we will put our stop one penny below today's low at 
9.40.  If and when the ORCL moves towards our target, we will 
immediately pull our stop up to appropriate levels.  Also, if we 
see strength in the form of volume, and/or the Fed surprises with 
a rate cut on Tuesday, we could revise our target higher.      

Disclosure note!  At least one analyst on the PremierInvestor.net
staff currently owns shares of ORCL.

Chart of: Oracle Corporation, Daily.
For annotated chart: click here.



Picked on August xth at $xx.xx <-- See text 
Gain since picked:       +0.00
Earnings Date         06/18/02 (confirmed)





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

Slow and Steady

by Steven Price

The Dow has had a very quiet three-digit gainer today.  When I 
say quiet, I mean slow and steady, without the big swings.  This 
has had an effect on the market Volatility Index, which has 
settled down a little, finishing the day at 39.80  It probably 
will continue to hover at higher levels, however, as we approach 
Tuesday's FOMC meeting, when the Fed will reveal its decision on 
interest rates.  With daily calls for the rate to drop from 1.75% 
to 1%, what once appeared unlikely before the September 24the 
meeting, now is gaining steam.  While the Fed will not drop rates 
75 basis points in one meeting, this amount is not entirely out 
of the question by the end of the year.  Adjusted for inflation, 
a 1% interest rate will essentially make the "real " interest 
rate zero.   So how does this affect the market?

It allows large companies to institute share buy-back programs 
with borrowed money that is much cheaper than in the past.  These 
share buy-backs boost the price of stocks, as they sometimes run 
into the billions. 

The other big factor is the effect lower rates eventually have on 
mortgages and re-financing.  Although the bond market affects 
mortgage rats more directly, the lower overnight rate eventually 
trickles down.  When people continue to buy homes, and lower 
their current mortgage payments, thus giving them more disposable 
income to spend on other things, this pumps money directly into 
the economy.  Judging by this week's record mortgage application 
numbers, it is apparent that low rates continue to have a 
stimulating effect on this sector. As consumer spending accounts 
for 2/3 of all dollars spent in the U.S., you can see why the 
rate cuts can be such a big deal for the market. 

This morning's economic numbers, showing the core PPI rate down 
0.2% for July, was the first year over year decline in prices 
since 1998.  This factor may figure into the Fed's rate decision.  
If prices are falling, this gives the Fed room to lower rates 
without worrying about inflation.  Productivity numbers tomorrow 
will also be important.  

The IMF announced a $30 billion bailout for Brazil, whose 
struggling economy has weighed heavily on U.S. bank stocks, 
particularly Citigroup (C) and J.P. Morgan, who both have Latin 
American exposure.  This loan led the bank stocks higher today 
and was another factor in today's rally.

It certainly appears that the rally of the last three days will 
continue as hope of a rate cut on Tuesday gains steam. The Dow 
has made up over 600 points in three days, to make up most of the 
previous three day's loss of over 700 points. Each day seems to 
cover another significant retracement bracket of that loss, as 
yesterday ended just below 61.8% and today ended at almost even.  
The Dow closed up 255.87, to close at 8712.02, within 25 points 
of last week's high.

The Nasdaq Composite also showed an impressive gain.  It rallied 
35.62 to close over 1300 at 1316.52.  This is significant, 
considering that just a week ago it looked poised to breakdown 
below support at 1200.  The bounce has been just as impressive as 
that in the Dow, as the index seemed doomed after a slew of 
earnings and revenue warnings from the semiconductor stocks.


There are two factors that could sent the market right back below 
8000 next week, however. The deadline for CEOs to certify their 
companies' accounting numbers is Wednesday.  There is a 
likelihood that any bad news will be released before then, as 
CEOs don't want to be next in line to sit before Congress, facing 
criminal charges, and taking the fifth. 

The other factor is the lack of a rate cut.  With so many hopes 
clinging to this factor, if the Fed fails to act, we could see a 
rush to the exits.  They could relieve some of the panic by 
stating a tightening bias, which would indicate a cut at the 
September 24the meeting, however the disappointment would remain. 






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

Market Averages

DJIA ($INDU)

52-week High: 10679
52-week Low :  7702
Current     :  8712

Moving Averages:
(Simple)

 10-dma: 8469
 50-dma: 8991
200-dma: 9751

S&P 500 ($SPX)

52-week High: 1226
52-week Low :  797
Current     :  905

Moving Averages:
(Simple)

 10-dma:  879
 50-dma:  950
200-dma: 1078

Nasdaq-100 ($NDX)

52-week High: 1782
52-week Low :  892
Current     :  947

Moving Averages:
(Simple)

 10-dma:  925
 50-dma: 1029
200-dma: 1358


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


The Retail Index (RLX.X):  The retailers had quite a ride today.  
Best Buy lost over a third of its value as it pre-released 
earnings, which were 40% lower than expected.  Wal-Mart missed 
sales expectations, but guided higher.  Several of the specialty 
retailers also posted such impressive July sales numbers that 
they also raised earnings expectations for the quarter. The index 
started out higher, took a major dip, and then rallied with the 
overall market in the afternoon.  At one point, support of 260 
had been breached, however by the end of the day all appeared 
well.  keep an eye on this index for signs of consumer spending, 
which makes up 2/3 of GDP.

52-week High: 366
52-week Low : 254
Current     : 270

Moving Averages:
(Simple)

 10-dma: 274
 50-dma: 307
200-dma: 331


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

Market Volatility

The VIX fell below 40 for the first time since the middle of the 
day last Thursday.  Three straight days of solid gains in the Dow 
and S&P have reduced the level of fear in the market place. The 
Dow has made up almost all of its 700-point, 3 day loss from 
Thursday through Monday. While a 600-point increase over a three 
day period would normally drive the VIX into the 20s, the recent 
drop, combined with uncertainty over next week's FOMC action on 
interest rates should combine to keep volatility high at least 
until the middle of next week.  The August 14 deadline for 
companies to certify financial results also looms overhead, as 
investors remain cautious over what news may be released before 
then.

CBOE Market Volatility Index (VIX) = 39.80 -3.27
Nasdaq-100 Volatility Index  (VXN) = 59.35 -9.49

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

          Put/Call Ratio  Call Volume   Put Volume
Total          0.75        651,791       487,497
Equity Only    0.57        498,636       283,458
OEX            1.40         39,390        55,331
QQQ            0.41         59,282        24,286

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

Bullish Percent Data

           Current   Change   Status
NYSE          31      + 2     Bull Correction
NASDAQ-100    26      + 1     Bull Correction
DOW           33      + 6     Bull Alert
S&P 500       30      + 5     Bull Alert
S&P 100       32      + 6     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  1.21
10-Day Arms Index  1.20
21-Day Arms Index  1.20
55-Day Arms Index  1.37

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       2144           964
NASDAQ     1961          1279

        New Highs      New Lows
NYSE         26              67
NASDAQ       23              86

        Volume (in millions)
NYSE     1,928
NASDAQ   1,526

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

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

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




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newsletter picks are not to be considered a recommendation
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is possible at this or some subsequent date, the editors and
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Do not duplicate or redistribute in any form.




PremierInvestor.net Newsletter                 Thursday 08-08-2002
                                                    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
=================================================================


In section two:

Net Bulls
  New Bullish Plays:     ORCL, RX
  Bearish Play Updates:  VZ
  Closed Bearish Plays:  PIXR

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

High Risk/Reward
  New Bullish Plays:     FDRY
  Bearish Play Updates:  MOVI, QCOM

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 Bullish Plays
  ----------------- 

Oracle Corporation - ORCL - cls: 10.01 cls: +0.49 stop: *text*

Company Description:
Oracle iLearning, offered as an integrated component of the 
Oracle E- Business Suite or as a standalone module, is an 
enterprise learning management system (LMS) that provides a 
complete infrastructure for organizations to manage, deliver, and 
track training participation of employees, customers, and 
partners in both e-Learning and classroom based environments. 
Oracle iLearning may be installed at the customer's site or as an 
outsourced service, eliminating the need for complex installation 
and ongoing software maintenance. (source: company press release)

Why we like it:
After certifying its books to the SEC on July 29th, 2002, Oracle 
seems to be in the clear from accounting worries.  Further, on 
August 5th, the SEC cleared the sworn affidavits by Oracle, 
determining that the tech giant was in full compliance.  This 
information definitely helps to ease investors' fears that the 
company could have accounting debacle problems in the future.  
Part of Oracle's ability to quickly certify their books, comes in 
light of previous problems.  ORCL suffered a near stock meltdown 
in 1990, as the company had several accounting issues.  Of 
course, the only accounting fear that we may still have is 
whether the company suddenly decides to begin expensing stock 
options, which could affect the bottom line negatively.

Our long position is rationalized through explanation of 
technical analysis.  Oracle has been trading in an ascending 
channel during the last few months and has proved reasonable 
relative strength versus the broader market.  The stock looks 
good, as it has been able to hold support on the 50-dma, and 
seems to be trading back towards the 200-dma.  On a weekly chart, 
ORCL, is also displaying "bottoming" characteristics, though no 
one can be completely sure yet.  However, the weekly Stochastics 
seem to be trading up with strength, as they head for the 
overbought region.  Our position schematics are fairly simple.  
To begin, we would like to see continued strength; thus, we will 
put a simple trigger a few cents above today's high at $10.06.  
Considering that ORCL closed at 10.01 a couple of weeks ago, we 
don't want another head fake.  Further, if the stock does begin 
to rally, we will target 11.95, which is five cents below 
resistance at $12.00 on the P&F chart.  If the stock is able to 
stay above the 10.00 level, it could identify new support and 
establish a new range.  Thus, once we are triggered in the 
position, we will put our stop one penny below today's low at 
9.40.  If and when the ORCL moves towards our target, we will 
immediately pull our stop up to appropriate levels.  Also, if we 
see strength in the form of volume, and/or the Fed surprises with 
a rate cut on Tuesday, we could revise our target higher.      

Disclosure note!  At least one analyst on the PremierInvestor.net
staff currently owns shares of ORCL.

Chart of: Oracle Corporation, Daily.
For annotated chart: click here.



Picked on August xth at $xx.xx <-- See text 
Gain since picked:       +0.00
Earnings Date         06/18/02 (confirmed)




--- 

IMS Health - RX - close: 16.07 change: +0.61 stop: *text*

Company Description:
Operating in more than 100 countries, IMS Health is the world's 
leading provider of information solutions to the pharmaceutical 
and healthcare industries. With $1.3 billion in 2001 revenue and 
nearly 50 years of industry experience, IMS offers leading-edge 
business intelligence products and services that are integral to 
clients' day-to-day operations, including marketing effectiveness 
solutions for prescription and over-the-counter pharmaceutical 
products; sales optimization solutions to increase pharmaceutical 
sales force productivity; and consulting and customized services 
that turn information into actionable insights. (source: company 
press release)

Why we like it:
While many tech stocks are only beginning to rebound from 
oversold levels, RX has actually broken above overhead 
resistance.  But before we outline the latest developments, a 
brief discussion of the past month's action is in order: A 
negative reaction to the company's July 15th earnings report sent 
shares tumbling to an all-time low of $12.90.  Shares then 
proceeded to bounce, only to find solid resistance at $16.00.  
Even news of an increased stock buyback program couldn't push RX 
above this level.  The bulls may have simply run out of steam 
after lifting the stock nearly 25% in just one week.  Fast-
forward to today's session, when shares tacked on 3.9% and closed 
above $16.00.  With both the MACD and daily stochastics (5,3,3) 
trending higher, RX no longer appears to be oversold.  Nervous 
bears are now faced with a stronger technical picture and a 
potential rebound in the tech sector (however brief it might be).  
We think shorts may start covering positions en masse, quickly 
sending RX to the 50-dma ($17.67) or 200-dma at $19.81.  
Specifically, we're going to target a move to the next level of 
significant resistance at $18.00 but watch out if RX stalls at 
the $17 mark.  We'll evaluate our exit strategy if/when shares 
break above the 50-dma.  Note that we won't enter this play until 
shares trade above today's high of $16.20.  If triggered, we'll 
use a stop at $15.18, two cents under today's low.

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





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

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

Verizon Communications - VZ - cls: 29.70 cls: +0.23 stop: 31.41

In good news for Bears, Moody's Investor Services downgraded 
Verizon's outlook from "stable" to "negative".  The rating 
agency, also said it may cut the telecom's senior unsecured debt 
at "A1", which is its fifth highest grade.  All in all, this is 
the type of news we had predicted for this company in the 
struggling telecom sector.  The news did not have quite as big of 
an effect as we had hoped, though the stock's weakness is still 
encouraging.  While VZ continues to trade in the current 
descending channel, we would like to see further pressure drive 
this stock nearer to it's most recent lows.  A close below 29.00 
would be very alluring for bears, and could also be a trigger 
point for new positions.

Picked on August 6th at $29.87 
Results since picked:    +0.13
Earnings Date         07/31/02 (confirmed)





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

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

Pixar - PIXR - close: 41.54 change: -0.05 stop: 42.26 

We were very pleased with our short trade's movement prior to
earnings.  However, as previously stated, we closed our trade on
the last print of the day, so as to not gamble with earnings
after the close.  Good thing too!  Pixar reported better than
expected earnings with a successful run of Monsters Inc. over the
last year.  Overall revenue jumped 19%, allowing the animation
company to beat estimates of 11 cents by reporting a whopping 17
cents per share.  The film company also raised its 2002 profit
target.  We couldn't be more tickled with our $1.32 profit in
light of earnings this evening!!!  Because of such strong
earnings we would like to urge EXTREME caution to any shorts
still in their positions.  This is exactly the scenario, which 
traders fear, thus prompting us to almost always close plays
prior to earnings.  Of course this could be a "buy the rumor,
sell the news" scenario, but considering PIXR was trading at
$43.40 after the close, we are certainly skeptical.  Bears should
be very, very careful!

Picked on August 2nd at $43.58
Gain since picked:       +1.32
Earnings Date         08/08/02 (confirmed)






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

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

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

Starbucks Corporation - SBUX - cls: 19.39 cls: +0.11 stop: 18.40

Company Description:
Starbucks Coffee Company is the leading retailer, roaster and 
brand of specialty coffee in the world. In addition to its retail 
locations in North America, Europe, the Middle East and the 
Pacific Rim, Starbucks sells coffee and tea products through its 
specialty operations, including its online store at 
Starbucks.com. Additionally, Starbucks produces and sells bottled 
Frappuccino® coffee drink and a line of superpremium ice creams 
through its joint venture partnerships. The Company's other 
brands enhance the Starbucks Experience through best-of-class 
products: Tazo Tea Company offers a line of innovative premium 
teas, and Hear Music produces and distributes a line of 
exceptional compact discs. (source: company press release)

Why we like it:

In recent earnings, Starbucks reported that net-profits rose in 
the third quarter, beating street expectations.  The coffee giant 
reported 14 cents per share versus 13 cents expected by analysts.  
The company predicts that sales could increase as much as 20 
percent by the end of 2003.  The stock has recently sold off on 
fears that the company is growing too quickly and that "fair 
trade" coffee prices could squeeze Starbuck's bottom line.
However, the company continues to reiterate that they have had 
strong earnings, and despite a potential hike in the cost of 
coffee beans, believe that the future is bright.  On a short-term 
technical basis, we believe them.  

The stock has fallen almost 23% since the end of June, and looks 
as if it is trying to regain some of the lost ground.  The last 
four days of trading have held support at $18.50, and could be 
forming a rounding bottom.  The 200-dma is currently above the 
stock at 21.78, while the 50-dma is also overhead at 22.46.  The 
Daily Stochastics look encouraging, as the indicator seems to be 
turning up out of the oversold region.  We are also pleased with 
the weekly chart, which depicts an overall ascending trend; even 
with the most recent sell off.  Further, the 200-Week MA is just 
below the stock at $17,94.  Starbucks has traded at or near the 
200-Week MA four previous times since 1996, and has rallied every 
time.  The weekly Stochastics are also in oversold territory, 
looking as if they have just turned up as well.  On the P&F 
chart, SBUX has ascending support exactly at $18.00.  
In our hypothetical trade, we are short at current levels, with a 
stop just below recent support at $18.40.  Our profit target is 
$22.40, just slightly below the 50-dma.  If the stock moves in 
our favor, we will be watching the $21.00 level, which could 
prove to be bullying resistance.  Also, assuming the stock moves 
up, we will be trailing our stop behind in an effort to ensure no 
major losses.       

For annotated chart: click here.
Chart of: Starbucks Corporation, Daily.



Picked on August 8th at $19.39 
Gain since picked:       +0.00
Earnings Date         07/25/02 (confirmed)





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

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

Ball Corp. - BLL - close: 47.30 change: +1.70 stop: 44.13 *new*

This play is developing just as we had hoped it would.  The 
recent break through resistance at $45.00, combined with a strong 
uptrend in the broader market, had BLL continuing its ascent on 
Thursday.  Shares posted a 3.7% gain, setting a new relative high 
and closing near the best levels of the day.  Given the triple-
top p-n-f buy signal and uptrending oscillators, BLL looks like 
it will soon reach the $49.00 region, where the next level of 
historical resistance is located.  Traders may want to consider 
taking their gains off the table if shares bounce from this 
level.  We'll probably set an official profit target if BLL 
continues higher on Friday.  New entries can be targeted on a 
pullback to the $45 level, which should now act as support.  In 
light of the recent gains, we're going to tighten our stop to 
$44.13, slightly under yesterday's low.  Longer-term traders 
could maintain a stop just under the Tuesday low of $42.90.

Picked on August 7th at   $45.06
Results since picked:      +2.24
Earnings Date           07/25/02 (confirmed)
 



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

Alaska Air - ALK - close: 23.85 change: +1.29 stop: 24.01

The XAL.X airline index moved higher by 3.2% on Thursday.  There 
was no positive sector news to speak of, but the group appeared 
to feed off the broader market's upside momentum.  ALK saw some 
heavy buying as well and finished the session with a 5.7% gain. 
Given the stock's proximity to our stop-loss, we would not be 
surprised to see this play closed tomorrow.  Of course, the bulls 
will still have to push ALK above possible whole-number 
resistance at $24.00.  Slightly more aggressive traders may want 
to place their stops just above the falling 50-dma at $24.15.  We
would not advise taking new short positions at this time.

Picked on July 30th at $23.62
Results since picked:   -0.23
Earnings Date        07/22/02 (confirmed)
 



--- 

AutoZone - AZO - close: 66.40 change: -2.10 stop: 70.01 *new*
 
Nice relative weakness in AZO today!  Shares gave back 3.0% and 
briefly pierced psychological support at $65.00.  The overall 
retail sector was pressured by BBY's earnings warning and mixed 
economic data.  Even with the Dow Jones advancing 255 points, the 
RLX.X retail index could not muster a gain.  In addition to AZO's 
underperformance, we're also encouraged by the declining MACD 
histogram and strong volume behind today's decline.  New entries 
can be targeted on a break under today's low of $64.50 or a 
rollover from the $68 region.  At this point we're going to 
tighten our stop-loss to $70.01, just above the round-number 
resistance level.  More aggressive traders may want to use a stop 
slightly above the 200-dma at $70.33.  
 
Picked on July 25th at   $67.96 
Results since picked:     +1.56
Earnings Date          09/24/02 (unconfirmed)




---

Chelsea Property - CPG - close: 32.55 change: +0.05 stop: 34.11

CPG continues to trade above the rising 50-dma at $31.90.  
Although we were looking for shares to move under this moving 
average, today's relative weakness versus the broader market 
suggests that the stock may see another round of selling in the 
near-term.  Volume remains weak, with today's reading coming well 
under the daily average of 198K shares.  This lack of buying 
interest is encouraging for our play.  However, CPG reports 
earnings after the closing bell on Monday.  We'll probably be 
closing this play ahead of the announcement.  Until then, we'll 
be looking for shares to gravitate towards the $30.00 level.  
Considering the recent bounce and broader strength in the markets 
we would not recommend taking new bearish positions at this time.

Picked on August 2nd at $32.68
Results since picked:    +0.13
Earnings Date         08/12/02 (confirmed)





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

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

Alliance Capital Hldg. - AC - cls: 31.20 chg: +1.96 stop: 30.01

Doh!  Late Wednesday evening, the International Monetary Fund 
announced that it had constructed a bailout package to help 
Brazil.  This news did not bode well for bears, as the Dow was 
lifted with substantial increases in J.P. Morgan and Citigroup.  
The retail sector looked weak, though not weak enough to cause 
the Dow to drag its feet.  The gains that appeared in all of the 
financials lent strength to shares of AC as well and the equity 
moved above our stop.  After all of the smoke cleared, this trade 
was stopped out for a loss of $2.01, or 7.1%.  Investors, who are 
still in this short, should be very careful given the current 
technicals.  Today's move caused this stock to breakout of the 
descending channel and the recent relative range.  With a close 
above $30.00, bulls should be fairly encouraged, as this stock 
could make run at the 50-dma in the $32.80 area.  Short traders 
should have very conservative stops at this level, and protect 
them selves against further breakouts.  Also, Stochastics have 
moved higher, with the Fast k moving into the overbought region.  
Until this stock displays individual, or sector related weakness, 
new short positions are not recommended.     

 
Picked on August 2nd, at $28.00 
Results since picked:     -2.01
Earnings Date          07/23/02 (unconfirmed) 



---

Diamonds Trust - DIA - close: 87.25 change: +2.60 stop: 85.06

Today, the International Monetary Fund announced that it had 
constructed a $30B bailout package to help Brazil.  This news did 
not bode well for bears, as the Dow was lifted with substantial 
increases in J.P. Morgan and Citigroup.  Despite strength in the 
banking sector Retail stocks looked weak, though not weak enough 
to cause the Dow to drag its feet.  The positive move in the Dow 
Jones caused our short to stopped out in the morning at 85.06.  
Because we moved our stop to fairly conservative levels, our 
position only weathered a .004% loss.  Although the loss was a 
true minimum, we would have liked to see this trade close as a 
winner.  Oh well, you can't win them all!  For traders who are 
currently still in their positions, the near future should be 
traded with caution, as there is definitely uncertainty in the 
market.  The Fed meets next Tuesday, and should provide 
interesting comments as to the current state of economic affairs, 
and future interest rate guidance.  With a close above 8700, the 
Dow could certainly make a run at 8900 to 9000.  However, if 
further economic uncertainty appears, the Index might see another 
failure, which could test lows. 
 
Picked on August 6th at  $84.70 
Results since picked:     -0.36
Earnings Date                NA
 



---

Merrill Lynch - MER - close: 35.10 change: +2.26 stop: 35.01

They say a rising tide lifts all boats.  Well, that certainly 
seemed to be the case with MER today.  Shares had previously 
remained stuck under short-term resistance at $33.50, showing 
little response to the rising broader market action.  But with 
the Dow Jones up more than 9% in just three days, the bears 
finally decided to throw in the towel.  MER posted a 6.8% gain 
and plowed through psychological resistance at $35.00.  Our play 
was closed for a 2.0% loss.  So has MER put in a bottom?  We 
seriously doubt it.  Shares will probably continue to be 
pressured by negative press related to the Enron and Imclone 
scandals.  Today's news, for example, included a story about 
Enron execs claiming that they struck a fake energy agreement 
with Merrill.  And who knows what other PR disasters are lurking 
in the shadows?  Technically, the stock has yet to break out of 
its multi-month downtrend.  Although the rising MACD and daily 
stochastics are pointing towards more upside in the near-term, a 
rollover from the 50-dma ($37.60) may provide another shorting 
opportunity.

Picked on August 1st at $34.30
Results since picked:    -0.71
Earnings Date         07/16/02 (confirmed)




--- 

Penn National - PENN - close: 16.70 change: +1.42 stop: 16.11

Apparently shareholders liked the news yesterday afternoon, that 
Penn National Gaming would acquire Hollywood Casino Corporation 
(NYSE:HWD).  The deal will make PENN the number 7 U.S. public 
gaming company and boost PENN National's annual revenue to nearly 
1 billion dollars.  This news was certainly not kind to short 
traders, as our position was stopped out this morning for a 7.8% 
loss.  The bullish move in the stock today is a technical 
breakout above the recent relative range, and could bring buyers 
off the fence.  The close above $16.10, with continued positive 
confirmation tomorrow, could take this stock to new levels.  
Bears beware! We would like to point out that with today's move, 
the stock has broken out of the recent descending channel, 
although it's only by a slight margin.  Stochastics are still in 
the overbought region, and seem to be edging higher.  Considering 
new positions at this point is tricky business.  Long positions 
could be considered if the stock continues to display strength, 
and shows a bit more confidence above descending resistance.  A 
long scenario would need a close above 17 to infer true strength. 
However, a trade at the 17-dollar level becomes more risky, as 60 
cents of the move is lost.  On the short side, if sellers erase 
today's gains, and once again move the stock under the 200-dma, 
new positions could be considered.  Because of the merger and 
possible erratic trading, the newsletter suggests that any trade 
from this point on, have a tight stop.  
 
Picked on August 2nd at $14.95 
Change since picked:     -0.77
Earnings Date         07/23/02 (confirmed)
 



---

Pepsico Inc - PEP - close: 42.45 change: +0.53 stop: *text*

We had some bearish aspirations for PEP, but those plans have 
been stymied by the past two days of powerful gains in the 
broader market.  The stock approached our entry trigger on 
Wednesday, only to bounce sharply from a low of $40.10.  Shares 
continued higher today with a 1.2% gain.  Granted, this is not an 
impressive performance when you compare it to the Dow Jones' 3.0% 
gain.  PEP may very well reverse course and slip under the $40.00 
level.  However, by keeping an action point set at $39.98, we'd 
be giving up more than 5%.  The uptrending MACD and daily 
stochastic oscillators are hinting at further upside.  With no 
clear level of resistance to target PEP on a rollover, we think 
the most prudent strategy is simply to cut this play loose.

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






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

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

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

Foundry Networks - FDRY - close: 8.39 change: +0.45 stop: *text*

Company Description:
Foundry Networks, Inc. is a leading provider of high-performance 
enterprise and service provider switching, routing and Web 
traffic management solutions including Layer 2/3 LAN switches, 
Layer 3 Backbone switches, Layer 4 - 7 Web switches and Metro 
Routers. Foundry's 4,300 customers include the world's premier 
ISPs, Metro service providers, and enterprises including e-
commerce sites, universities, entertainment, health and wellness, 
government, financial, and manufacturing companies. (source: 
company press release)

Why We Like It:
It would be pretty darn gutsy to call a bottom in the networking 
sector.  There haven't been many tangible signs of a turnaround 
for the group, and even John Chambers admits that the forecast 
for future growth remains uncertain.  So, by no means is this 
play based on our expectation in any sort of fundamental 
turnaround in the networking sector.  Rather, we're adding FDRY 
as a bullish play based on its strong technical pattern.  For 
what it's worth, Foundry's July 24th earnings report did beat 
handily beat consensus estimates.  Although this announcement was 
tempered by cautious comments regarding the third quarter, 
Deutsche Securities rewarded the company with an upgrade.

But we digress.  Shares advanced by 5.6% on Thursday and tagged a 
new multi-month high.  We suspect this breakout will create a 
round of short-covering that could lead to some rapid gains.  The 
MACD and daily stochastics oscillators are trending higher, 
offering technical evidence that the stock is not overbought.  
Our objective is to capture a rally to the psychologically 
important $10.00 level.  By using a stop one cent under today's low 
of $7.84, we've created an acceptable risk/reward ratio.  Note, 
however, that we will not enter this play until FDRY trades at or 
above $8.51.  This way, we won't enter our hypothetical bullish 
position until FDRY is trading at new relative highs and the 
p-n-f chart is signaling a double-top buy signal.  On a sector-
related note, we'll be watching for the NWX.X networking index to 
extend its recent bounce from the 114 support level and move back 
towards the 50-dma at 150.

Picked on August xth at $xx.xx <- see text
Gain since picked:       +0.00
Earnings Date         07/24/02 (confirmed)
 




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

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

Movie Gallery - MOVI - close: 12.81 change: -0.39 stop: 14.10

We are happy to see MOVI continue to display weakness in today's 
session.  The company has had no noteworthy news stories surface, 
leaving investors to the whims of sellers.  In good news for 
bears, the stock has showed poor relative strength over the last 
two days, which could be a good sign for the future.  If the 
market begins to show weakness again, this stock could quickly 
fall to our profit target.  Ideally, we would like to see MOVI 
close below $12.00, confirming bear status.  New positions could 
still be considered under the action point at $12.49, however, 
make sure stops are still in place.  Our suggested stop is at 
$14.10.  
 
Picked on August 7th at  $12.49
Results since picked:     -0.32
Earnings Date          08/06/02 (confirmed)
 

 

---

QUALCOMM Inc - QCOM - close: 25.98 change: +0.97 stop: 26.11

Without any mountain moving fresh buzz today, QCOM's itty +3.8% 
bounce seems to be a technical reluctance to break support.  The 
wireless company traded lower yesterday, triggering our position 
at 24.08. We would like to see the stock close below $25 in the 
next few days to help confirm weakness in this position.  The 
newsletter will not be moving the stop down on this play just 
quite yet, thought if the stock begins to fail, we will adjust 
the stop down fairly quick.  New positions could be considered 
under today's low, though traders are encouraged to keep an eye 
on the daily Stochastics, which seem to be turning up.
 
Picked on August 7th at $24.08 
Results since picked:    -1.90
Earnings Date         07/25/02 (confirmed)
 




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

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

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

RL      Polo Ralph Lauren          21.60     +0.54
BAC     Bank of America            68.39     +3.14
SFG     Stancorp Financial         56.53     +2.01
HB      Hillenbrand Industries     54.99     +1.74
MYL     Mylan Laboratories         33.93     +1.03

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

MDR     Mcdermott International     5.35     +2.35
HWD     Hollywood Casino Corp.     12.00     +1.38
PENN    Penn Gaming                16.70     +1.42
CEGE    Cell Genesys Inc.          13.95     +1.55
BGG     Briggs & Stratton          37.74     +3.59
CBZ     Cbalt Corporation          19.30     +1.02

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

HBHC    Hancock Holding Corp.      47.90     +1.48
ICOS    Icos Corporation           26.93     +3.99
MME     Mid-Atlantic Medical Ser.  34.81     +3.56
FBN     First Bancorp Holding      39.94     +1.44
BGG     Briggs & Stratton          37.74     +3.59

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

ELBO    Electronics Boutique       22.21     -2.01
CBRL    Cbrl Group Inc.            24.98     -1.53
BBI     Blockbuster Inc.           21.08     -1.20
BJ      Bj's Wholesale Club        27.46     -5.99
HD      Home Depot                 27.14     -1.12

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

None




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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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