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Daily Newsletter, Monday, 08/12/2002

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PremierInvestor.net Newsletter                 Monday 08-12-2002
                                                  section 1 of 2
Copyright ) 2002, 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:      The Fed Ahead
Watch List:       ADBE, BRCD, DAL, EBAY, EXPE, JPM, and more!
Play of the Day:  Waiting on The Fed


******************************************************************
MARKET WRAP  (view in courier font for table alignment)
******************************************************************
08-12-2002               High    Low      Volume Advance/Decl
DJIA     8688.89 -56.56  8742.06 8582.01  1223 mln  1410/1674
NASDAQ   1306.84 + 0.72  1311.43 1286.91  1053 mln  1562/1710
S&P 100   407.88 -15.22   426.21  405.47    totals  2972/3384
S&P 500   903.80 - 4.84   908.64  892.38
RUS 2000  388.56 + 0.11   389.51  383.56
DJ TRANS 2308.67 -42.98  2350.58 2277.32
VIX        40.46 + 1.10    42.90  39.98
VIXN       56.29 - 2.41    59.13  56.09
Put/Call Ratio     0.74

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


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

Today's session was characterized by light trading, marking
investor uncertainty on the toes of tomorrows FOMC meeting.
The Dow Jones Industrial Average seemed to struggle all day,
ending down -56.56 points at 8688.89.  The Nasdaq traded
seemingly flat, finishing the session +0.72 up, closing out
at 1306.84.  Volume for the NYSE trickled in at 1.2 billion
shares, while the Nasdaq traded a mere 1.0 billion shares.

The day was characterized by light selling, with the Dow Jones
Transportation sector falling off -1.82%, and the Dow Jones
U.S. Home Construction Index closing down -1.55%.  The
Semiconductor Index dropped -3.84 points with bad news and
downgrades in the sector.  Solomon Smith Barney, citing a
sluggish pickup in PC component sales, cut Intel estimates
this morning.  Applied Materials (Nasdaq:AMAT) reports
quarterly earnings tomorrow afternoon, and is expected to
either meet or beat analyst expectations.  However, Prudential
Securities said today that it will cut their 12 month price
target on AMAT from $27.00 to $21.00.

Martha Stewart still continues to have problems with
investigators, as her story reportedly keeps changing.  She
faces charges of insider trading after she allegedly sold 400
shares of ImClone shares prior to the public announcement of
an FDA ruling.  CNBC reported today that she saved $43,000.00
by dumping her stock prior to the announcement, but has spent
much more than that in legal fees since.  ImClone Systems Inc
(NASDAQ:IMCL) chief executive Samuel Waksal pleaded innocent to
insider trading and fraud charges this morning.  After his
appointment in court, he spoke publicly for the first time since
his arrest two moths ago.  His pre-written speech commented that
his personal problems should not detract from the future
possibilities of the biotech company, or the development of
ImClone's cancer drug Erbitux.  Prosecutors had originally
tried to setup a plea-bargain agreement, which would have
required Waksal to exchange information with authorities about
insider trading information that he distributed to family and
friends.  If convicted, Mr. Waksal could potentially spend
the rest of his life in jail.

In other news today, Crude Oil prices jumped on fears that
tension between Iraq and the U.S. are growing.  U.N. workers were
turned back while attempting to inspect weapons after being
absent from Iraq for the last four years.  Oil futures rose +0.89
to close at $27.75.  Complicating the situation, Saudi Arabia
has publicly stated that it will not allow the U.S. to use its
land for military bases.  Given the days events, the Oil Services
Index closed up +2.51%, and the Oil Index fell -0.48%.

US Airways (NYSE:U) filed for chapter 11-bankruptcy protection
yesterday, attempting to fend off creditors while the airline
develops a plan for restructuring.  Credit Suisse First Boston,
Bank of America, and Texas Pacific provided 500 million in
debtor-in-possession financing to keep the company temporarily
operational.  In the bankruptcy petition filed in Virginia, US
Airways stated $7.81 billion in assets, and $7.83 billion in
liabilities.  US Airways is targeting a potential re-emergence
from bankruptcy in the first quarter of 2003.

In tomorrow's trading all eyes will certainly be on the Fed, as
they announce their decision on interest rates around 2:15pm EST.
Analysts and economists are mixed on which direction the Fed will
go, but given the weakness in the financials today, some could
infer that a large cut might be out of the question.  The Fed is
under pressure to balance the flailing economy, while also trying
to keep inflation from rising.  With GDP numbers having recently
been revised, the economy seems to be weaker than previously
thought.

Table of 2001 & 2002 FOMC Rate Announcements

Date            Rate    Bias

Jan 03,  2001   6.00%   Weakness
Jan 31,  2001   5.50%   Weakness
Mar 20,  2001   5.00%   Weakness
Apr 18,  2001   4.50%   Weakness
May 15,  2001   4.00%   Weakness
Jun 27,  2001   3.75%   Weakness
Aug 21,  2001   3.50%   Weakness
Sep 17,  2001   3.00%   Weakness
Oct 2,   2001   2.50%   Weakness
Nov 6,   2001   2.00%   Weakness
Dec 11,  2001   1.75%   Weakness
Start of 2002   1.75%   Weakness
Jan 30,  2002   1.75%   Weakness
Mar 19,  2002   1.75%   Neutral
May 7,   2002   1.75%   Neutral
Jun 26,  2002   1.75%   Neutral
Aug 13,  2002   ----   ---- ----

In light of recent events, some economists think a 25 basis point
cut is reasonable and even expected.  However, the current Fed
Funds Futures are factoring a current probability of less than
30% that rates will be cut at all tomorrow.  The same futures
are predicting just under a 70% chance that rates will be cut in
January.  The Fed has stated in the past that it thinks the
economy is expanding, though potentially at a slow rate.

Chart of: Dow Jones Industrial Average, Daily.




The Dow Jones is definitely at a critical juncture today, trading
almost exactly at descending channel resistance.  With the Dow
also trading at horizontal resistance and the 38.6% Fibonacci
retracement number, the FOMC meeting tomorrow seems to have
spooky timing.  Tomorrows trading could confirm another leg of a
bull run, or the power of trend lines and Fibonacci numbers could
push the Dow down once again.  Of slight concern, the daily
Stochastics (14,1,3) are in overbought territory, and could
seemingly fall lower.  Thus, speaking purely of technicals, we
have two resistance lines, a Fibonacci number, and the daily
Stochastics indicating that the Dow could be due for a pullback.
On the other side of a coin, we have a potential rate cut
looming over our heads.  So, what happens if we do actually get
the rate cut and how would the market react?  Impact from a
quarter point (or less) cut would depend on the Fed's bias
towards the future.  If the Fed were to cut rates 25 basis
points and then infer a weakening bias, the market would most
likely sell off.  Below is a table of potential situations
and is simply an assumption of what "could" happen   Even if
something "predictable" happens, the market is sometimes
irrational at times and almost any outcome could surface.
Thus, the situations presented are not the holy grail of Fed
outcomes, and should be taken with a grain of salt.


Rate
Change    Bias               Potential Results
-50       Weakness           Rally
-50       Loosening/Easing   Rally
-50       Neutral            Rally
-50       Tightening         NA*
-50       Inflation          NA*
-25       Weakness           Sideways Trading or Rally
-25       Loosening/Easing   Sideways Trading or Rally
-25       Neutral            Sideways Trading/Rally/Sell-off
-25       Tightening         NA*
-25       Inflation          NA*
0         Weakness           Sideways Trading or Sell-off
0         Loosening/Easing   Sideways Trading or Sell-off
0         Neutral            Sideways Trading or Sell-off
0         Tightening         NA
0         Inflation          Sell-off
+25       Weakness           NA*
+25       Loosening/Easing   NA*
+25       Neutral            Sell-off
+25       Tightening         Sell-off
+25       Inflation          Sell-off
+50       Any                Watch your pants, big sell off.

* Indicates a scenario that has conflicting information between
a rate change and bias, thus the scenario will most likely not
happen.

A rate cut of 50 basis points would stimulate more borrowing
activity, but it would also leave the Fed with less to work with
if something disastrous happened.  In August of 2001, the Fed
Funds Rate was 3.50%.  Following the events on September 11th,
the Fed quickly announced an emergency cut of 50 basis points on
September 17th, which brought the Fed Funds Rate to 3.00%.
After the initial post September 11th reduction, there were
three more cuts bringing the rate to its current level of 1.75%.

If the Fed cuts rates 50-basis points tomorrow, the FOMC would
only leave itself two 50-basis point cuts and one 25-basis point
cut before the Fed Funds rate is at 0.  Or, it would only have
7 possible 25 basis point cuts.  If disaster struck, (possibly
another terrorist attack) and the markets began to crumble once
again, the FOMC would have to step in with a 50-basis point
reduction.

Thus, an emergency rate cut could then bring the Fed Funds rate
to beneath 1%...  Factoring inflation into the picture, a rate
below 1% is almost giving away money on the Fed's behalf.
Thus, a half point cut might be irrational if the Fed wishes to
preserve its economic ammo for any future problems.  A quarter
point cut is more reasonable with a neutral or loosening bias.
However, do not forget that there is a substantial camp of
economists who think that no rate cut will surface in tomorrows
meeting.

"A clay pot sitting in the sun will always be a clay pot.  It has
to go through the white heat of the furnace to become
porcelain." - Mildred Wite Stouven

Things in this Bear market are certainly getting tricky.  We must
stop and ask ourselves what we have learned?  By simply doing
so, we realize that we have been through the white heat of the
furnace.  After tomorrow, we will all be one day closer to
becoming porcelain.

Editor
Mark Whistler

Comments or questions, please email: mwhistler@PremierInvestor.net

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

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

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

Adobe Systems - ADBE - close: 18.10 change: +0.39

WHAT TO WATCH: ADBE displayed relative strength today, perhaps
owing to the company's announcement that it would certify its
financial statements.  The past week has seen shares steadily
trend higher, while the p-n-f chart has reversed into a column of
"X's."  The stock is now approaching the bottom of its sizable
August 1st gap at $18.40.  A move above this mark would clear the
way for a test of psychological resistance at $20.00.  A
continued uptrend in the NASDAQ could even see ADBE reach the top
of the gap near $24.  The recent declining volume is of some
concern, but that trend seems to have been broken by today's
action.




---

Brocade Communications - BRCD - close: 14.76 change: -0.60

WHAT TO WATCH: The storage sector continues to be pressured by
Friday's earnings warning from ELX.  BRCD has violated
psychological support at $15.00 and is in danger of falling under
the multi-month low at $14.16.  Bearish traders can watch for a
move below this level, which would pave the way for a retest of
the 52-week low at $12.60.  Technically, the wavering daily
stochastics and descending triple-bottom p-n-f breakdown do not
bode well for the bulls.  A failed rally at $15.00 may also
provide a shorting opportunity.




---

Delta Airlines - DAL - close: 14.03 change: -0.57

WHAT TO WATCH: The XAL.X airline index was rocked for a 7.56%
loss today after US Airways filed for Chapter 11.  Bankruptcy
lawyers are circling like sharks around UAL, awaiting a similar
move from the world's second-large airline.  It's gotten so bad
at United that the company is asking Uncle Sam for a $1.8 billion
loan.  In light of the continued flood of negative sector news,
we think it's just a matter of time before the XAL.X breaks to
new all-time lows.  DAL looks like a good way to short the group
because it offers a clearly-defined action point and is not
technically oversold (as shown by the daily stochastics).
Aggressive traders can target bearish entries at current levels,
while others could wait for shares to fall under the multi-year
low at $13.20.  P-n-f chartists will be interested to know that a
trade at $13.00 will create a triple-bottom sell signal.




---

eBay Inc - EBAY - close: 57.96 change: +0.74

WHAT TO WATCH: EBAY has posted some decent gains over the past
week and is sitting just below its 200-dma at $58.45.
Considering that bearish p-n-f resistance lies at $59, we think
the bears won't give up this level without a fight.  The daily
stochastics have reached the overbought region, suggesting that
the latest uptrend may have its run its course.  Aggressive
entries can be gauged at current levels with a stop just above
$59.00.  The bulls, however, will argue that the recent positive
MACD crossover and today's relative strength are indications that
EBAY will rise above resistance.  Traders could actually target
long positions if shares break above $59.  Such a move would
clear the way for a test of the July highs near $62.50 or the
June highs at the $64 level.




---

Expedia Inc - EXPE - close: 49.59 change: -0.42

WHAT TO WATCH: It looks like EXPE is at a critical pivot point.
There are multiple ways to play the stock, regardless of which
direction it takes.  EXPE has rallied nicely over the past week
but is now sitting just under resistance at $50.00.  A break
above this level may create another wave of short-covering.  The
200-dma at $55.25 provides a profit target to shoot for.  On the
other hand, EXPE has yet to break out of its longer-term
downtrend.  A rollover from current levels could send the stock
back into its descending channel.  Watch for a move below $47.50
to confirm bearish conviction.  We'd be looking for a near-term
decline to the $45 region.




---

J.P. Morgan Chase - JPM - close: 25.46 change: -0.89

WHAT TO WATCH: Shares of JPM have rallied nearly 40% from their
July 24th lows of $18.22.  That's quite a move...But are these
gains sustainable?  We think not.  Although a retest of the July
lows is probably unlikely, the stock seems overdue for some
backing and filling.  JPM traded higher last week in response to
the International Monetary Fund's bailout of Brazil.  This news
created a gap on August 8th that has yet to be filled.  If the
broader market reacts negatively to the Fed's interest rate
decision, we could quickly see shares retreat back to the $22
region.  Short entries could be considered at current levels, but
only after the FOMC has announced its decision around 2:15 EST.




---

MGM Mirage - MGG - close: 36.50 change: +0.72

WHAT TO WATCH: MGG rebounded smartly from its July lows and has
recently been trading relatively strong versus the broader
market.  A continued uptrend could lead to an eventual retest of
the 52-week highs near $42.  Bullish positions could be
considered if MGG breaks above near-term resistance at $36.75.  A
trade at $37.00 will create a double-top point-and-figure buy
signal.  Bears will point out that volume has been steadily
declining over the past week, but today's action has put an end
to that pattern.  Ideally, a move above resistance would be
accompanied by a continued ramp up in volume.  However, keep in
mind that the Stochastics are near the top of the overbought
region, and could foreshadow a potential pullback.




---

National Semiconductor - NSM - close: 16.52 change: -0.89

WHAT TO WATCH: A plethora of negative news stories pressured the
chip sector today.  Barron's cover featured sell recommendations
on INTC, AMAT, MU, and TXN.  Solomon Smith Barney cut their Q3
estimates on INTC this morning, while Prudential Securities
slashed their 12-month price target on AMAT.  All things
considered, it's actually surprising that the SOX.X
(semiconductor index) only registered a 1.2% loss.  Perhaps bears
were reluctant to take positions ahead of Tuesday's Fed meeting.
If a chip sell-off ensues, there's not much to prevent NSM from
falling below its 52-week low at $15.63.  A move below this level
would provide a possible action point to go short.  Psychological
support at $15.00 may be obliterated if the SOX.X violates its
multi-year low at 282.




---

Toys R US - TOY - close: 12.26 change: -0.43

WHAT TO WATCH: Banc of America Securities issued a "Market
Perform" rating on TOY this morning.  Judging by the stock's 3.3%
loss, investors were not impressed by this news.  Shares are
flirting with near-term support at $12.00 and are in danger of
falling below the 52-week low at $11.82.  If this level falls,
there's little to prevent a test of psychological support at
$10.00.  On a sector-related note, the RLX.X retail index has not
reacted very favorably to the latest round of economic data.  A
negative reaction to tomorrow's FOMC meeting could send the index
back to the critical 250 support level.





============================================
Play-of-the-Day (Active Trader BEARISH play)
============================================

Autozone Inc - AZO - close: 65.25 change: -2.03 stop: 68.11 *new*

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)



- ORIGINAL WRITE UP: August 2nd, 2002 -

Why we like it:
Examining the stock on a year to date basis, AZO looks like a
strong performer...But we think some profit-taking could be in
the cards. With a weakening Dow, the drop under the 200-dma could
cause this stock to fumble.

First, the bears should be encouraged by AutoZone's recent
failure at the 200-dma. The average currently sits at 70.17,
roughly two points above where the stock is now. The rebound
rally off of the July 24th low carried itself directly into the
50-dma; where it failed right on queue. The Stochastics also
trended into overbought territory, and have recently fallen out
of the upper region. Other than the Auto Sales numbers yesterday,
AZN has no noteworthy news in the last few days which would
affect the stocks performance. Further, we do not have to worry
about earnings, as the company does not report until September.

Short at current levels, out plan for this trade is fairly
simple. Our initial stop is at $71.01, 16 cents above today's
high and one penny above the psychological whole number. Of
course, if the stock begins to move in our direction, we will
immediately trail our stop down to protect our position from
unnecessary losses. The profit target for this short trade is
$61.05, slightly above support and 5 cents above the whole
number. Our reasoning behind inserting a nickel above $61.00 is
that other traders will be trying to exit at the whole number.
This way, we could presumably beat the crowd to the punch.

- Most Recent Update: August 9th, 2002 -

AZO closed the week out on a positive note, as shares outpaced
the Dow Jones and posted a 1.32% gain. There wasn't any news to
explain this relative strength, but we did notice similar moves
in fellow auto parts retailers SAH, and DPH. AZO traded an Inside
Day and stayed well within the previous day's range. The mixed
oscillators make it difficult to gauge where the stock is headed
next, but we believe a broader market sell-off in response to
Tuesday's Fed meeting could lead to heavy selling in AZO.
Aggressive traders can target new entries on a break under
today's low ($65.31) or Thursday's low at $64.50.


- Play-of-the-Day Comments: August 12th, 2002 -

The consensus here at the Premier Investor office seems to be
that tomorrow's interest rate decision will trigger a broader
market sell-off.  Far be it for us to second-guess Morgan
Stanley, but we think the chances of a rate cut are pretty slim.
Given the fact that the Dow Jones is sitting on some huge gains
from last week and hasn't broken above its descending trendline,
it seems likely that disappointed investors will use the lack of
a rate cut as an excuse to take some of their recent gains off
the table.

AZO is one of the weaker looking stocks on our Play List and
could really take it on the chin if the market does head lower on
Tuesday.  The stock descended by 3.0% on Monday and is in danger
of falling below the relative low of $64.50.  A break below this
level, combined with a Fed-induced broader market sell-off, could
have the stock testing the $60 region within a matter of days.
Of course, we would not recommend taking new entries ahead of the
FOMC announcement.  Also note that we've moved our stop-loss down
to $68.11, slightly above last Thursday's high.

Picked on July 25th at $67.96
Results since picked:   +2.71
Earnings Date        09/24/02 (unconfirmed)





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

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

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

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Copyright ) 2002  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.

PremierInvestor.net Newsletter                  Monday 08-12-02
                                                   section 2 of 2
Copyright ) 2002, All rights reserved.
Redistribution in any form is strictly prohibited.

The entire newsletter is best viewed in COURIER 10 for alignment
=================================================================


In section two:

Stock Bottom / Active Trader
  Stop Adjustments:      AZO
  Closed Bearish Plays:  ETR

High Risk/Reward
  Triggered Plays:       RKY
  Closed Bearish Plays:  MOVI

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)



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

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

Stop Adjustments
----------------

Autozone Inc - AZO - close: 65.25 change: -2.03 stop: 68.11 *new*

AZO descended by 3.0% on Monday and is in danger of falling below
its relative low of $64.50.  A break below this level, combined
with a Fed-induced broader market sell-off, could have the stock
testing the $60 region within a matter of days.  Of course, we
would not recommend taking new entries ahead of the FOMC
announcement.  Also note that we've moved our stop-loss down to
$68.11, slightly above last Thursday's high.






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

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

Entergy Corp - ETR - close: 42.19 change: +1.14 stop: 42.26

Shares of ETR saw early weakness in Monday's session and gapped
below our entry trigger at $40.99.  Our play was activated at the
opening trade of $40.89.  In a frustrating development, shares
then proceeded to move back above the $41 level and uptrend for
the rest of the day.  Our play was stopped out for a 3.3% loss
when ETR reached our stop at $42.26.  Today's reversal may be
only temporary if the broader market sells off this week, but at
this point it seems the bulls are still in control.  Today's
successful test of the 50-dma ($40.62) and close above the 200-
dma ($41.22) are signs that the rollover we were looking for may
not materialize.  Thus, we would not recommend holding short
positions at this time.

Picked on August 12th at $40.89
Results since picked:     -1.37
Earnings Date          07/30/02 (confirmed)






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


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

Triggered Plays
---------------

Adolph Coors - RKY - close: 61.03 change: -2.43 stop: 61.26 *new*

Apparently we aren't the only ones who hold a bearish outlook on
RKY.  UBS Warburg downgraded the stock this morning, citing its
belief that domestic sales are continuing to weaken.  Shares
gapped lower on the news and began trading well below our entry
trigger at $63.26.  Our play was activated at the opening price
of $60.50.  Based on our lower-than-expected entry point, we're
going to immediately tighten our stop to $61.26, slightly above
today's high.  Now that we've entered this hypothetical short
trade, we'll be looking for RKY to move below the 50-dma ($60.16)
and 200-dma ($59.44).  Keep in mind that this play will be closed
if shares trade at or below $57.51.





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

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

Movie Gallery - MOVI - close: 13.92 change: +0.20 stop: 14.10

With the bears staging a full retreat on Friday, MOVI rose to
within striking distance of our stop at $14.10.  A continuation
of this rally saw shares move above this level at the tail end of
today's session.  Our play was stopped out for a loss of $1.61,
or 12.8%.  We'll keep MOVI on our radar screens, as an eventual
move under support at $12.00 would be decidedly negative.  Bears
can be encouraged by the fact that the recent uptrend has not
been accompanied by strong volume.  However, the MACD and daily
stochastics are hinting at further bullish action.  Given the
stock's relative strength and uptrending oscillators, a near-term
retest of the $15.00 level appears likely.

Picked on August 7th at $12.49
Results since picked:    -1.61
Earnings Date         08/06/02 (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

XEL     Xcel Energy Inc.           10.60     +1.57
REI     Reliant Energy Inc.        11.55     +0.63
LANC    Lancaster Colony Corp      38.12     +0.68
FHR     Fairmont Hotels            25.42     +0.66
---------------------------------------
Breakout to Upside (Stocks $5 to $20)
---------------------------------------
Ticker  Company Name              Close     Change

OSTE    Osteotech Inc.            10.55     +1.56
MSTRD   Microstrategy Inc          8.40     +1.35

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

AMSG    Amsung Corporation         31.60     +1.75
UCBH    Ucbh Holdings              42.06     +1.40
TTC     Toro Corp.                 52.00     +2.10
CHTT    Chattem Inc.               36.66     +2.61
WTW     Weight Watchers Intl.      44.92     +1.22

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

MYG     Maytag Corporation         29.81     -1.56
CERN    Cerner Corporation         36.52     -1.47
KWD     Kellwood Corporation       24.95     -1.20
TGIC    Triad Guaranty Inc.        41.90     -3.36

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

TPP     Teppco Partners            29.77     -0.25
HCN     Health Care REIT           28.50     -0.30
PROV    Provident Financial        21.55     -0.85




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