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Daily Newsletter, Thursday, 08/15/2002

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PremierInvestor.net Newsletter                  Thursday 08-15-2002
                                                    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:      Now This Makes Me "Mad"
Play-of-the-Day:  Bull Riders
Market Sentiment: Coming Up Roses


************************************************************
MARKET WRAP  (view in courier font for table alignment)
************************************************************
      08-15-2002           High     Low     Volume Advance/Decline
DJIA     8818.14 + 74.80  8854.21  8687.92 1.72 bln   1921/1234
NASDAQ   1345.01 + 10.70  1350.92  1322.11 1.71 bln   1732/1621
S&P 100   469.78 +  5.34   471.64   463.76   Totals   3653/2855
S&P 500   930.25 + 10.63   933.29   918.17 
RUS 2000  390.73 +  1.32   392.37   388.65 
DJ TRANS 2319.97 + 13.90  2328.77  2278.28   
VIX        33.07 -  3.29    36.57    33.07   
VXN        51.24 -  2.04    54.24    51.10 
Total Vol   3,665M
Total UpVol 2,376M
Total DnVol 1,230M
52wk Highs      99
52wk Lows      277
TRIN          0.62
PUT/CALL       .63
*************************************************************

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

Now this makes me "mad"

Emotion is perhaps the worst enemy of any trader or investor.  
Fear, hope, joy, anger, love and hate are perhaps the most common 
emotions that every trader, no matter how "experienced" will 
certainly have to deal with at different times.

I'd love to sit here and tell everyone that I have not "emotion" 
when it comes to trading/investing, but that would be a lie.

If the recent intra-day volatility combined with economic data 
hasn't made us all "mad" then we have perhaps mastered the art of 
managing emotion.

Give me a dollar for every time in the past two days I've said, 
"Jeeemany, look at that Wal-Mart go, I wish I hadn't sold," I'd 
have made $7 in the past two days, which is about what I've left 
on the table since "fearing" that the stock would eventually give 
a sell signal on its point and figure chart.

"Fear" came from economic data and weaker than expected retail 
sales, it certainly didn't come from all the hard work I put 
together matching up what happened in the past that might hint 
toward the future.

One subscriber did e-mail me today saying "Hey Jeff, I wanted to 
thank you for the excellent bullish profile in Wal-Mart (WMT) and 
introducing me to point and figure charts.  Today was a great day 
and I took a nice profit."

What the heck, let's make it another $1 "look at that Wal-Mart 
go, I wish I hadn't sold."  Only today, I do "fear" the stock 
looks a little overextended and it is probably time to book some 
profits.

Wal-Mart Chart - $1 box




Wal-Mart (WMT) $54.71 +3.97% was my "key stock" to be looking for 
a rebound.  The "scenario" fit that the stock should eventually 
show some type of firming, put in a base, give the buy signal 
from that base (it did at $49).  The "scenario" for bullishness 
grew fro the fundamental aspect when considering back-to-school 
season was near and the holiday shopping season was just around 
the corner.  Instead, I was looking to protect a small profit, 
"fearing" that the weaker economic data would surely have the 
stock generating a sell signal at $44, so I might as well move to 
the sidelines.  

Now, I'm not going through all this to tell everyone what a fool 
I was, but to recognize my mistake of "emotion" and try to once 
again solidify in my mind why I should honor the chart in the 
future.  Hey, I'll NEVER get too down on myself if closing a 
position that was profitable (no matter how small) even if the 
chart doesn't say to close it out, but with all the work we did 
putting this together, it's enough to make a trader go "mad."

Time for an anti-depressant after all that isn't it?

Well let's sit down, and toss back a couple Lexapro anti-
depressants.  "Lexapro" you ask?  What the heck is Lexapro?

I'll apologize to any "dual subscribers" to OptionInvestor.com 
and PremierInvestor.net for some duplication below (11:00 Update 
at OI), but today's FDA approval for Forest Labs' (NYSE:FRX) 
$73.24 +5.38% new anti-depressant drug Lexapro, which is 
basically an altered form of its blockbuster Celexa, which 
competes with Eli Lilly's (NYSE:LLY) $57.83 -0.7%, may be just 
that catalyst that ignites the powder keg to FRX's bullish 
vertical count of $96.

One stock I've been eyeballing in recent weeks that got a nice 
pop higher today is shares of drug maker Forest Labs (NYSE:FRX) 
$73.38 +5.56% on news that its new Lexapro selective serotonin 
reuptake inhibitor received FDA approval for the treatment of 
major depressive disorder.  Many industry followers call the new 
Lexapro drug "baby Celexa."  Celexa was perhaps Forest Labs' 
"blockbuster" drug that helped launch the company into the 
forefront of the antidepressant drug market along with its stock 
price in the late 1990's.

Forest Labs Chart - $1 box




Today's trade at $74 triggered a "bullish triangle" pattern in 
FRX's point and figure chart.  Under bull market conditions, 
Professor Davis' study found this pattern profitable in a bullish 
trade 71.4% of the time for an average gain of 30.9% in 5.4 
months.  With a bullish vertical count of $96, combined with a 
potential 30.9% gain from $74 to $96.86, this is the type of 
technicals I like to be looking long in the early stages of a 
bull market.  Today's FDA announcement perhaps lights the fuse on 
the "powder keg" from which the "projectile" (price) will be 
launched.  Remember, the bullish and bearish vertical counts are 
based off ballistics.  Bullish FRX, stop $68 and longer-term 
target of $95.

Now lets look at relative strength of FRX versus the market as 
depicted by the S&P 500 Index (SPX.X).  While FRX looks to have 
traded in similar trend the relative strength chart tells us that 
FRX held up well relative to the S&P 500 Index.

Relative Strength Chart of FRX versus SPX - 1 point box




The relative strength chart of FRX versus the SPX is longer-term 
bullish.  While the chart isn't updated until the close of 
trading, we see that current price comparisons has the relative 
strength chart of FRX close to reversing back into a column of X 
after recently generating some buy signals.  What's "neat" about 
the point and figure charts is that comparisons against "time" 
can be easily made.  Note that the RS chart gave a "buy signal" 
at the "red 7" which was the first entry made in July.  While the 
SPX continued a decline, FRX began basing and RS improved 
markedly.  This type of action hints that the weak holders may be 
out of the stock and the stock is strengthening against the 
broader market.

Not to go into great detail, but Lexapro involves the removal of 
one of two enantiomers from Celexa to create a single-enantiomer 
drug.  Celexa is a racemic mixture of two mirror-image halves 
called the S-enantiomer and R-enantiomer.

As explained to me by my brother, who is a specialty rep for 
Forest Labs, one of the "key" benefits that doctors found when 
prescribing Celexa versus other antidepressants, was that Celexa 
was found to have a lesser amount of side effects than other 
drugs in the category.  For the patient suffering from 
depression, doctors feel it important to have a patient stay on a 
drug and not simply quit using it due to a side effects.  This 
can be very important in the treatment of and illness as it 
relates to the prescribing of a drug.

What many feel may be "important" with Lexapro, is the removal of 
on enantiomer.  The basics here is that while Celexa did have 
some side effects (higher blood pressure, some male 
impotence/lessening of sex drive, headache) the removal of one 
enantiomer helps lessen further potential side affects.  
Evidently, this type of science is not "easy" and has Lexapro 
potentially being another "block buster" type drug.

There are questions as to what extent the Lexapro will have on 
canibalization of the Celexa drug.  However, as explained to me, 
Celexa will turn generic in the future anyway and Lexapro was 
next in the pipeline as a "better" drug (less potential for side 
effects) to further build market share in the market.

Today I profiled 1/4 or 1/2 bullish positions in the FRX Jan03 
$70 calls (FRXAN) at $9.80, no stop on the option, target $95.  
For stock traders, would look long similar weighting, stop $68, 
target $95 over next 6 months.

Picking up again....

Picking up again where I left off at 11:00, today's close on FRX 
was $73.24, so as it relates to the relative strength 
calculation, today's close was not enough to have FRX's relative 
strength chart reversing into a column of X, as the S&P 500 Index 
(SPX.X) 932.25 +1.15% would have the calculation coming out as 
78.73 and not quite 79.

Now, this in itself is not a reason to NOT be bullish FRX (lord 
knows there's a lot of stocks in the market that are on RS sell 
signals and still in columns of O), but perhaps a reason to 
accumulate a partial position with a stop just below at $68 for 
stock traders, and targeting $95 longer-term.

A bullish scenario for "jittery" bulls under uncertain economic 
conditions is that depressed consumers may not give up their 
antidepressants just because the economy is weakening.  If fact, 
if you were a "jittery bull" and stopped out of a bullish trade 
in Wal-Mart (WMT) when the chart was still holding together, you 
might actually start a steady regime of antidepressants.

Here's a quick look at the bar chart.  I'm going to humor myself 
and place retracement from last September's lows to the bullish 
vertical count target of $96.  

Forest Labs Chart - Daily Interval




On August 6th, shares of FRX gapped lower at the open, traded a 
whopping 6.6 million shares from $67.50 to $70 and somehow 
managed to rally two trading sessions later.  The "gap lower" was 
a market response to news that Forrest Labs had received an FDA 
approval letter for its investigational treatment lercanidipine.  
The FDA requested that FRX produce additional information which, 
subject to further discussion with the FDA, the company believes 
it will be able to provide within the next several months (dated 
August 6).

Subscriber interested in a more detailed news release of today's 
Lexapro announcement can click this link.

http://biz.yahoo.com/rc/020815/health_forestlabs_lexapro_4.html


But we're not in a bull market!

"But we're not in a bull market!" says the tried and true bear.  
"Oh contrar!" says the point and figure bullish percent.  While 
the S&P 500 bullish percent ($BPSPX) is not in "bull confirmed" 
status, it is in "bull alert" status.

The broader NYSE Bullish % ($BPNYA) is however in "bull 
confirmed" status, and perhaps a reason to have bullish thoughts 
of Forest Labs (NYSE:FRX) as it is one of the NYSE listed stocks 
showing a buy signal on its chart and trading above bullish 
support.

NYSE Bullish % ($BPNYA) - 2% box




I won't argue semantics as to what classifies a "bull market" or 
a "bear market," as I'd agree that a the New York Stock Exchange 
Composite ($NYA.X) 500.02 +1.22% has been in a "bear market" 
since its tippy top high of 681.19 of September 11, 2000.  
(Hmmm.. September 11).

But doesn't the NYSE Bullish % ($BPNYA) above do a pretty good 
job of perhaps depicting what a "cyclical" bear market is all 
about?  In October of last year (red A, just to the left of 
recent red 8), the NYSE Bullish % reversed up into "bull alert" 
status at 32%, just like it did on Monday (where the red 8) was 
just printed.

Like I've said before, these bullish % charts just amaze me.  I 
can no more explain why these indicators are reversing up when 
considering the economic news.  The only explanation ever given 
is that the market gets oversold, then sees an eventual increase 
in demand and outstripping of supply, which has more and more 
stocks generating new "buy signals."  But then I couldn't explain 
why the bullish % charts were all reversing down from more 
"overbought" levels last spring when all the economic data was so 
strong.  The only "explanation" at the time was that stocks were 
simply "overbought" and supply began outstripping demand and more 
and more sell signals were generated.

The NYSE Composite is considered the "true market" where most 
institutions focus their buying on a longer-term basis.  When I 
first started trading/investing, all I used was a very simple bar 
chart with the 50-day and 200-day moving averages on them.  

At that time, the "rudimantary" yet simple analysis was when one 
moving average was broken, then the other moving average became 
the eventual target.

NYSE Composite Chart - Daily Interval




No retracement lines, only two moving averages.  On November 5th, 
the NYSE Composite ($NYA.X) closed above its 50-day MA (currently 
at 503.71, rallied strong, came back and retested, then rallied 
again to test its 200-day MA.  During that time, Wal-Mart (WMT) 
was an early leader from a base and the NYSE Bullish % ($BPNYA) 
was also reversing higher.  

Gosh darn it!  It sure looks like history is repeating itself.  
At least Wal-Mart (WMT) is on the move and the NYSE Composite 
looks ready to test its 50-day MA.  

What are the chances that say..... the end of October, when we 
get the current quarter GDP data (July-September), it shows the 
U.S. economy isn't "double-dipping" and the NYSE Composite 
($NYA.X) is trading at its 200-day MA?  I don't know what the 
odds are, but know what to look for if the we get a close above 
the 50-day MA.

Jeff Bailey
Senior Market Technician
PremierInvestor.net


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

Computer Associates - CA - cls: 10.31 chg: +0.56 stop: 8.99

Company Description:
Computer Associates International, Inc. delivers The Software 
That Manages eBusiness. CA's world-class solutions address all 
aspects of eBusiness management through industry-leading brands: 
Unicenter for infrastructure management, eTrust for security 
management, BrightStor for storage management, CleverPath for 
portal and business intelligence, AllFusion for application life 
cycle management, Advantage for data management and application 
development, and Jasmine for object-oriented database technology. 
Founded in 1976, CA serves organizations in more than 100 
countries, including 99 percent of the Fortune 500 companies. 
(source: company press release)

Why We Like It:
To begin, Computer Associates is one of few technology companies 
that have announced it will be expensing stock options.  The 
accounting move was certainly bold, as it could hinder per-share 
earnings for many years to come.  However, the market has 
applauded CA for its accounting courage, evidenced in the stocks 
ascent ever since the news was announced on July 29th.  Further, 
the SEC has cleared Computer Associates certification, helping to 
reassure shareholders that CA has reliable accounting standards.  

Viewing the technical aspects behind the stock, CA has fallen 73% 
since late last January and could be due for a rebound. It is no 
secret that the broader market has helped many companies to gain 
ground over the last two days... What we noticed about CA though, 
was that the stock had been slowly creeping up since July 25th.  
The strength in the Nasdaq has simply helped CA to display its 
legs, attempting to climb back up lost ground.  There are a few 
notable technical items which make this trade stand out.  First, 
the close today at $10.31, is a close above the $10.20 
resistance. This move could be considered the first part of a 
potential breakout, and could bring technical buyers off the 
fence.  If the stock is to gain strength, it really has no 
formidable resistance until it approaches $13.00.  This area is 
both the 50-dma, and the 38.2% Fibonacci (see chart) retracement 
from the most recent decent.  This is could be great news for 
bulls, as it seems to be an open invitation for buyers to court 
this security.  The daily Stochastics (14,1,3) are entering the 
overbought region, helping to confirm buying momentum.  On the 
weekly chart (not shown) the daily Stochastics have recently 
turned up out of the oversold region, and seem to be looking 
higher.  Also the GSTI Software Index ($GSO.X) has been slowly 
attempting to gain strength as well.  The GSO has broken the most 
recent descending trend line, and could challenge the 50-dma in 
the next few days at 101.74.  With the daily Stochastics 
appearing to be bullish, the GSO could help to pull CA into orbit 
if the index ascends.  

Considering a long position at current levels, our initial profit 
target for this position is $12.90, which is just below the 50-
dma.  Our initial stop is at $8.99, and could lead to a 12% loss 
if breached.  However, if the stock does begin to ascend, we will 
trail our stop behind in an attempt to protect capital. This 
trade could certainly bode well for bulls, though just in case 
the floor falls out, we will keep a tight eye on our stop.     

For Annotated Chart: Click Here
Chart of: Computer Associates, Daily.



Picked on August 15th at $10.31 
Results since picked:     +0.00
Earnings Date          07/22/02 (confirmed)
 

 


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

Coming Up Roses

by Steven Price

Green lights everywhere! That's how the screen looked today, with 
even the Semiconductors posting a healthy gain.  Brocade released 
positive numbers yesterday after the bell, and the techs took 
off.  This was in spite of Goldman Sachs lowering estimates on 
four of the major hardware makers.  Goldman's targets were 
storage equipment maker EMC, business computer maker Sun 
Microsystems and Hewlett-Packard, which recently took over 
Compaq.

Today's action seems to indicate that after the SEC deadline for 
CEOs to certify financial results passed without any major 
surprises, investors felt comfortable jumping back into the 
market.  

A look at the Dow shows a confirmed PnF buy signal, after trading 
over 8800 to finish the day at 8818.14, up 74.83.  This coincides 
with the buy signal established yesterday by the S&P 500, with 
its trade of 920.  The S&P finished today's trading session at 
930.25, up 10.63.  These buy signals seem to confirm what has 
been developing in the bullish percentage charts  since late 
July.  A look at the bullish percentage for the S&P 500 shows a 
meteoric rise from a low of 12%, to a current reading of 44%, 
indicating the percentage of stocks in the index now generating 
buy signals.  The Dow bullish percentage rebounded from an even 
more oversold condition of only 4% of stocks generating buy 
signals, to a healthy 42% as of today's close.  The Nasdaq 100, 
which has been leading the market for the last several years,  
reflects a bullish percent of 38%, and a breakout to the upside 
from a bullish flag pattern.  The combination of turnarounds in 
all of these indicators is almost enough to convince this market 
skeptic that a precipitous fall may not be around the corner 
after all.  The fall I have been expecting at the end of August 
and beginning of September, as investors dump their long 
positions ahead of the 9/11 anniversary, may in fact take place 
from a much higher level than originally anticipated.


A release of the minutes from the  FOMC's June meeting showed 
that they were comfortable keeping rates low, as long as 
inflation co-operated.  According to the minutes, "Given their 
anticipation of strong productivity growth and continuing slack 
in labor and other markets, members expected inflation to remain 
low over the next several quarters."   In fact, instead of 
discussing further rate cuts, the members of the committee 
discussed how long they could keep rates at these 40 year lows 
before returning them to a more normal level.  This attitude may 
have changed between the June and August meetings, as reflected 
in the easing bias stated this past Tuesday.

After the bell, Dell released earnings which met expectations, 
and reported a double digit increase in shipments.  the company 
posted earnings of $0.19, on revenue of $8.5 billion.  This 
revenue beat the company's own estimates by $200 million. CEO 
Michael Dell stated that the company would also likely enter the 
PDA and printer markets, however would remain focused on its 
computer systems.  This news is bullish for the techs and should 
lead to continued strength in tomorrow's session.

Jack Grubman, the lead Salomon Smith Barney telecom analyst, who 
is being investigated for his role with World Com, resigned 
today, stating that he could no longer work under the pressure of 
the investigations and negative statements about his work.  he 
will have to somehow find contentment in a $32 million severance 
package, which includes forgiveness of a $19 million loan he 
received from the company 4 years ago.

The NASD fined and suspended the licenses of 2 Credit Suisse 
First Boston executives who were charging excessive commissions 
to buyers of initial public offerings.   J. Anthony Ehinger, 
global head of equity sales, and George Coleman, head of 
institutional listed sales, were fined $200,000.00 each and 
suspended for 60 days.

The pall over the market seems to be lifting, and the Dow's 
series of three higher lows, followed by higher highs,  seems to 
indicate we may not be in for a re-test of the 7500 low from last 
month.  The Nasdaq 100 has also broken out of its short-term 
descending channel, begun in late May (although the descending 
channel from the beginning of the year remains in tact ).  Look 
for continuing strength tomorrow, after Dell's revenue surprise.  
The basic fundamentals of a lack of IT spending and very slow 
growing economy have not changed, however.  We are not yet out of 
the woods, and a re-tracement of recent gains is still possible.  
However, let's stop and smell the roses for the moment, as things 
appear to be turning positive for the short term.  One note of 
warning, however.  Tomorrow is expiration, and I can't seem to 
remember many boring expirations.



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

Market Averages

DJIA ($INDU)

52-week High: 10679
52-week Low :  7702
Current     :  8818

Moving Averages:
(Simple)

 10-dma: 8528
 50-dma: 8880
200-dma: 9735

S&P 500 ($SPX)

52-week High: 1226
52-week Low :  797
Current     :  930

Moving Averages:
(Simple)

 10-dma:  889
 50-dma:  936
200-dma: 1074

Nasdaq-100 ($NDX)

52-week High: 1782
52-week Low :  892
Current     :  981

Moving Averages:
(Simple)

 10-dma:  925
 50-dma: 1005
200-dma: 1346


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



The Semiconductor Index (SOX.X): The Semiconductors have enjoyed 
a revival the last couple of days.  Dell released earnings after 
the bell that met expectations. The real surprise, however, was 
in the revenue, which beat Dell's own forecasts by $200 million.  
The index has popped out of its descending channel from the 
middle of May, and may have finally found a bottom after these 
stocks have been repeatedly crushed over a lack of IT spending.

52-week High: 657
52-week Low : 282
Current     : 327

Moving Averages:
(Simple)

 10-dma: 309
 50-dma: 367
200-dma: 498



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

Market Volatility

The VIX is back in territory it hasn't seen since the end of 
July, during the market rebound between July 24 and July 31.  the 
Fed meeting is behind us, the CEO certification deadline has 
passed, and the New York financial community is vacationing in 
the Hamptons.  Somehow I get the feeling we may be getting lulled 
into a false sense of security.  Of course the other explanation 
is that all of the high premium option holders are getting out as 
quickly as possible, as time decay is eroding their positions, 
and buyers are nowhere to be found.  They are most likely racing 
each other to hit bids, as the drop in volatility can be just as 
expensive as being short the explosion.  Traditionally, on the 
first day of a new expiration cycle, front month options tend to 
be sold en masse.  So expect Monday's VIX to be even lower if 
there is no major event in the next 72 hours.

CBOE Market Volatility Index (VIX) = 33.07 -3.29
Nasdaq-100 Volatility Index  (VXN) = 51.24 -2.04

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

          Put/Call Ratio  Call Volume   Put Volume

Total          0.63      1,003,642       634,444
Equity Only    0.42        728,145       307,451
OEX            0.87         59,105        51,659
QQQ            0.31        144,743        44,379

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

Bullish Percent Data

           Current   Change   Status
NYSE          36      + 3     Bull Confirmed
NASDAQ-100    39      + 10    Bull Confirmed
DOW           43      + 3     Bull Confirmed
S&P 500       44      + 9     Bull Alert
S&P 100       46      + 10    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  1.15
10-Day Arms Index  1.18
21-Day Arms Index  1.25
55-Day Arms Index  1.36

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       1713          1010
NASDAQ     1658          1573

        New Highs      New Lows
NYSE         22              51
NASDAQ       30              96

        Volume (in millions)
NYSE     1,745
NASDAQ   1,632

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

Commitments Of Traders Report: 08/06/02

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

The commercials reduced their short contracts position by 4,000, 
while increasing their long contracts slightly. Small traders, 
increased their long contracts by nearly 6,000, while leaving 
their short positions virtually unchanged.


Commercials   Long      Short      Net     % Of OI 
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%)
08/06/02      431,590   478,879   (47,289)   (5.2%)

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
07/16/02      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%
08/06/02      159,561    67,434    92,127     40.5%

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 increased both long and short contract positions 
equally, by just less than 3,000 contracts on each side.  Small 
traders reduced both positions, taking 1600 contracts from the 
long side, and 450 from their shorts.


Commercials   Long      Short      Net     % of OI 
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%)
08/06/02       41,014     50,025    (9,011) ( 9.9%)

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
07/16/02       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%
08/06/02       11,547     8,782     2,765    13.6%

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 added to both long and short contract totals.  They 
added 1,000 long contracts and about 1400 shorts.  Small Traders 
also added to both sides, increasing their long contracts by 
1200, while adding 250 to the short side. 


Commercials   Long      Short      Net     % of OI
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%
08/06/02       23,491    14,290    9,201      24.4%

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
07/16/02        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%)
08/06/02        7,981     9,258    (1,277)   ( 7.4%)

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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PremierInvestor.net Newsletter                 Thursday 08-15-2002
                                                    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:

Net Bulls
  New Bullish Plays:     CA, MIL
  Bullish Play Updates:  IBM, RX
  Closed Bearish Plays:  EXPE, VZ

Stock Bottom / Active Trader
  New Bullish Plays:     MGG, NCEN
  Bullish Play Updates:  SBUX
  Bearish Play Updates:  ALK, CPG
  Closed Bearish Plays:  CB, PNRA

High Risk/Reward
  Bullish Play Updates:  FDRY
  Closed Bearish Plays:  NSM

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

Computer Associates - CA - cls: 10.31 chg: +0.56 stop: 8.99

Company Description:
Computer Associates International, Inc. delivers The Software 
That Manages eBusiness. CA's world-class solutions address all 
aspects of eBusiness management through industry-leading brands: 
Unicenter for infrastructure management, eTrust for security 
management, BrightStor for storage management, CleverPath for 
portal and business intelligence, AllFusion for application life 
cycle management, Advantage for data management and application 
development, and Jasmine for object-oriented database technology. 
Founded in 1976, CA serves organizations in more than 100 
countries, including 99 percent of the Fortune 500 companies. 
(source: company press release)

Why We Like It:
To begin, Computer Associates is one of few technology companies 
that have announced it will be expensing stock options.  The 
accounting move was certainly bold, as it could hinder per-share 
earnings for many years to come.  However, the market has 
applauded CA for its accounting courage, evidenced in the stocks 
ascent ever since the news was announced on July 29th.  Further, 
the SEC has cleared Computer Associates certification, helping to 
reassure shareholders that CA has reliable accounting standards.  

Viewing the technical aspects behind the stock, CA has fallen 73% 
since late last January and could be due for a rebound. It is no 
secret that the broader market has helped many companies to gain 
ground over the last two days... What we noticed about CA though, 
was that the stock had been slowly creeping up since July 25th.  
The strength in the Nasdaq has simply helped CA to display its 
legs, attempting to climb back up lost ground.  There are a few 
notable technical items which make this trade stand out.  First, 
the close today at $10.31, is a close above the $10.20 
resistance. This move could be considered the first part of a 
potential breakout, and could bring technical buyers off the 
fence.  If the stock is to gain strength, it really has no 
formidable resistance until it approaches $13.00.  This area is 
both the 50-dma, and the 38.2% Fibonacci (see chart) retracement 
from the most recent decent.  This is could be great news for 
bulls, as it seems to be an open invitation for buyers to court 
this security.  The daily Stochastics (14,1,3) are entering the 
overbought region, helping to confirm buying momentum.  On the 
weekly chart (not shown) the daily Stochastics have recently 
turned up out of the oversold region, and seem to be looking 
higher.  Also the GSTI Software Index ($GSO.X) has been slowly 
attempting to gain strength as well.  The GSO has broken the most 
recent descending trend line, and could challenge the 50-dma in 
the next few days at 101.74.  With the daily Stochastics 
appearing to be bullish, the GSO could help to pull CA into orbit 
if the index ascends.  

Considering a long position at current levels, our initial profit 
target for this position is $12.90, which is just below the 50-
dma.  Our initial stop is at $8.99, and could lead to a 12% loss 
if breached.  However, if the stock does begin to ascend, we will 
trail our stop behind in an attempt to protect capital. This 
trade could certainly bode well for bulls, though just in case 
the floor falls out, we will keep a tight eye on our stop.     

For Annotated Chart: Click Here
Chart of: Computer Associates, Daily.



Picked on August 15th at $10.31 
Results since picked:     +0.00
Earnings Date          07/22/02 (confirmed)
 

 

---

Millipore Corp - MIL - close: 36.57 change: +0.36 stop: *text*

Company Description:
Millipore is a multinational, high technology bioscience company 
that provides technologies, tools and services for the 
development and production of new therapeutic drugs. It serves 
the life science research, biotechnology and pharmaceutical 
industries. (source: company press release)

Why We Like It:
This stock offers a way to play the volatile biotech group 
without being subjected to the risk of disappointing FDA 
rejections and other drug-specific news.  Millipore is sort of 
the "Applied Materials" of the biotech industry, if you will.  
They provide the technology that helps companies research and 
produce new drugs.  As the biotech sector goes, so does MIL.  Not 
surprisingly, switching back and forth between charts of the 
BTK.X biotech index and MIL shows a very close correlation.  The 
past month has been very kind to the bulls, with positive news 
from AMGN and helping to lead the sector higher.  The BTK.X is 
trading at relative highs and could be headed for a test of the 
May highs near 440.

MIL looks like a good long play because it's just broken above 
intermediate-term resistance at $36.00.  A glance at the daily 
chart reveals that shares have emerged from a "saucer" bottoming 
pattern and are now beginning to retrace the May/June downtrend.  
Slapping a retracement bracket from the January high (which 
marked the beginning of a long-term downtrend) to the 52-week low 
($27.25) provides some interesting technical insight.  The 19% 
level near $33.50 acted as both resistance and support in recent 
weeks.  Shares bounced from this region on Wednesday.  
Furthermore, the 38% retracement lies at $40.12.  This coincides 
nicely with psychological resistance at $40.00.  With this in 
mind, we're going to set our initial profit-target at $39.94.  
However, we will not enter this play until MIL trades above 
today's high of $36.60.  If triggered, we'll use a stop-loss at 
$33.89, one cent under Wednesday's low.  More aggressive traders 
could use a stop below the aforementioned retracement at $33.50.

Picked on August xxth at $xx.xx <- see text
Results since picked:     +0.00
Earnings Date          07/16/02 (confirmed)
 




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

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

IMS Health - RX - close: 17.16 change: +1.58 stop: 15.65 

What a difference a few days can make!  On Tuesday, we were 
worried about getting stopped out of this play, however, given 
the FOMC meeting and SEC deadline, the market has seemed to react 
in favor of the bulls.  As a result, IMS Health was pulled from 
support on the ascending trend line, and has moved higher to 
challenge the 50-dma.  We certainly couldn't be happier.  IMS 
Health's move over the last two days could be attributed to 
investor relief in light of the SEC clearing the company's 
CEO/CFO certification.  With no fresh news on IMS Health, we will 
keep our stop at 15.65, allowing the trade plenty of room to 
breathe.
           
Picked on August 9th at $16.21  
Gain since picked:       -0.39
Earnings Date         07/15/02 (confirmed)




---

*TRIGGERED PLAY*

Intl Business Machines  - IBM - cls: 76.50 chg: +1.58 stop: 69.96 

Big Blue is moving up! Triggered long this morning at $75.06, IBM  
is certainly looking strong.  After announcing that the company 
would cut its workforce by 5% in the company's 10Q, the stock has 
certainly found some friends among the bulls.  We were 
momentarily concerned, as Beas Systems (IBM's closest competitor) 
reported poor earnings last night, and even commented about 
taking market share from IBM.  However, Big Blue shareholders 
didn't seem to mind, as today's trading witnessed increased 
buying.  Bulls should certainly be happy to see IBM putting some 
distance between itself and the 50-dma, while also moving away 
from the descending channel it had been stuck in since last 
January.  New positions could be considered at these levels, 
though the risk to reward is considerably higher.  The newsletter 
will move its stop up to $71.34, just one penny below yesterday's 
low.        

Picked on August 15th at $75.06  
Gain since picked:        +1.44
Earnings Date          07/15/02 (confirmed)





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

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

Expedia Inc - EXPE - close: 52.55 change: +2.81 stop: 51.11

The broader market certainly expedited the stop on this short 
position.  When the stock began to sell yesterday morning, our 
position was triggered early in the session.  However, with the 
SEC certifications concluding without much noise yesterday 
afternoon, the broader market quickly found itself traveling with 
bulls.  EXPE didn't even take notice of the pending airline 
problems, and possible bankruptcies.  Apparently, consumers are 
not afraid of buying tickets from potentially defunct air 
carriers.  In any case, EXPE broke out his morning, forcing us to 
close our trade for an 11.8% loss.  New shorts would probably not 
be considered at this point, as the stock certainly has revealed 
hidden strength.  

Picked on August 14th at $46.99 
Results since picked:     -5.56
Earnings Date          07/23/02 (confirmed)




---

Verizon Communications - VZ - cls: 30.45 cls: -0.50 stop: 31.05

Bears in Verizon were certainly encouraged about this position 
during the first part of the week.  However, with the broader 
market rallying over the last two days, over-zelous bulls fudged 
the short trade.  When VZ gapped up this morning, it violated our 
stop at 31.05, causing us to eliminate the trade for a 3.9% loss.  
With mixed media over the last two days, Verizon's recent move up 
can be partially attributed to news-oriented hopes.  Yesterday, 
the company announced that it would try to collect $37.00 million 
in past due bills, and today VZ confirmed the acquisition of 
Price Communications.  Bulls were probably most encouraged with 
the acceptance of Verizon's certification by the SEC, given the 
recent plethora of problems other telecom companies have had.  No 
matter how you slice it, bulls were certainly prodding this 
company up over the last two days.  For bears still in their 
short positions, VZ could still prove to be a lucrative trade.  
The stock is yet to break above resistance at $31.40, and is 
still under descending trend resistance.  However, if VZ does 
close above $31.50, bulls could certainly make an attempt to 
charge $32 or $33.00.  

Picked on August 6th at $29.87 
Results since picked:    -1.18
Earnings Date         07/31/02 (confirmed)






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

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

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

MGM MIRAGE - MGG - close: 36.75 change: +1.75 stop: *text*

Company Description:
MGM MIRAGE is an entertainment, hotel and gaming company 
headquartered in Las Vegas, Nevada, which owns and/or operates 
through subsidiaries 15 casino properties. Its U.S. holdings 
include: Bellagio, the MGM Grand Hotel and Casino - The City of 
Entertainment, The Mirage, Treasure Island, New York - New York 
Hotel and Casino, the Boardwalk Hotel and Casino and 50% of Monte 
Carlo, all located on the Las Vegas Strip; the Golden Nugget in 
Downtown Las Vegas; Whiskey Pete's, Buffalo Bill's, the Primm 
Valley Resort and two championship golf courses at the 
California/Nevada state line; the exclusive Shadow Creek golf 
course in North Las Vegas; the Golden Nugget in Laughlin, Nevada; 
the Beau Rivage resort on the Mississippi Gulf Coast; and the MGM 
Grand Detroit Casino in Detroit, Michigan. (source: company press 
release)

Why We Like It:
Sifting through research, MGM Mirage seems to be a great company.  
The gaming mogul is attempting to take all of the right steps to 
improve its market share and reduce debt.  Over the last three 
years, the company has eliminated more than $1.25 billion dollars 
in debt, and has sold off non-productive assets including a $150 
million dollar art collection.  MGG currently has several major 
projects underway, which could considerably help their bottom 
line.  In Detroit, MGM MIRAGE has recently been approved for a 
400-room hotel and gaming venture, and is also currently 
developing property in Atlantic City. 

Viewing the chart of MGG, there seems to be a chance that bulls 
could have a great betting opportunity on their hands. MGG 
recently descended to the 200-dma, where the stock was able to 
regain footing and climb back above the moving average.  The 
stock was also able to ascend above the 50-dma, where it has 
recently held support.  Bulls can be encouraged with the MACD, as 
the indicator has recently crossed above the zero-line.  The 
daily Stochastics have moved into the overbought region, 
potentially indicating bulls taking positions.  The stock is 
currently sitting at a potential breakout level, and could 
trigger a wave of buying.  The fundamentals of MGG have helped to 
hold the stock up, now the technical picture is mirroring that 
strength.  Many of the other gaming stocks have posted reasonable 
gains over the last few weeks, thus we would like to see MGM 
continue the trend.  Some such stocks are: BYD, IGT, and HET, 
which have recently basked in the glow of buying pressure.  If 
the ascent continues in MGG, we will initiate a position when the 
stock elevates above $37.01.  If triggered, we will put a stop 
below $35.00 at $34.99.  Our profit target for this position is 
$39.95, just below psychological resistance.     

For Annotated Chart: Click Here
Chart of: MGM MIRAGE, Daily.



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



--- 

New Century Financial - NCEN - cls: 30.00 chg: +1.95 stop: *text*

Company Description:
New Century Financial Corporation is a leading nationwide 
specialty mortgage banking company that, through its 
subsidiaries, originates, purchases and sells residential 
mortgage loans secured primarily by first mortgages on single-
family residences. (source: company press release)

Why We Like It:
Will the recent decline in bond rates trigger another wave of 
refinancing?  Wall Street seems to think so.  Shares of mortgage 
banking companies have posted large gains over the past few 
weeks, and NCEN is no exception.  The latest earnings report also 
gave the bulls plenty to cheer about, as the company announced 
that its Q2 profits quadrupled, resulting from favorable 
conditions in the housing market.  That sort of fundamental 
strength has helped to launch NCEN from its relative lows near 
$20.00.  Recent action has seen the stock attacking new relative 
highs.  Shares enthusiastically broke though the 50-dma ($28.42) 
today and briefly pierced psychological resistance at $30.00.  
Volume was robust, ticking in at the highest reading of the 
month.  The increase in volume bodes very well for a continuation 
of today's rally.  The double-top breakout on the p-n-f chart is 
also encouraging for bulls.  By entering this long play on a 
break above today's high ($30.15), we're hoping to capture a move 
to the next level of psychological resistance at $35.00.  Our 
stop (if the play is activated) will be set at $28.28, under both 
today's low and the 50-dma.

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




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

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

Starbucks - SBUX - close: 21.28 change: +0.80 stop: 19.98 *new*

What a difference two days makes!  SBUX has sliced through solid 
resistance at $20.00 and is quickly approaching the 200-dma at 
$21.84.  There hasn't been any news to explain the past two days 
of gains.  It looks like it's simply a good old-fashioned 
technical breakout, helped along by strength in the broader 
market.  The company announced this morning that it was lowering 
its capex estimate for 2002 from $425 million to $400 million.  
Investors reacted to this news by bidding the stock up 3.9%.  
Because we're aiming to take our hypothetical profits off the 
table before SBUX has a chance to rollover from the converging 
50-day and 200-day MA's, our official exit price is set at 
$21.75.  Our stop is now set at $19.98.  We suspect the $20.00 
level will now act as support.  Traders looking to protect a 
larger gain could use a stop just under today's low of $20.30.

Picked on August 8th at $19.39 
Gain since picked:       +1.89
Earnings Date         07/25/02 (confirmed)




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

Alaska Air - ALK - close: 23.59 change: -0.17 stop: 24.01

Surprise, surprise.  United Airlines announced last night that 
they might file for bankruptcy.  This development was already 
priced into the stock, as evidenced by the fact that UAL actually 
moved higher on Thursday.  The XAL.X airline index was pressured 
by this news early in the session, tagging a new all-time low 
before finishing solidly in the green.  ALK underperformed the 
XAL and lost 17 cents.  Shares were rebuffed at the declining 50-
dma ($23.75) and retraced Wednesday's gains before bouncing 
higher with the XAL.  On Friday we'll be watching for another 
rollover from the 50-dma.  If a large sell-off takes hold, 
aggressive entries could be gauged on a move under yesterday's 
low of $22.00.  In recent news, Alaska Air announced yesterday 
that it had reached a contract agreement with its dispatchers.

Picked on July 30th at $23.62
Results since picked:   +0.03
Earnings Date        07/22/02 (confirmed)
 




---

Chelsea Property - CPG - close: 33.01 change: +0.11 stop: 34.11

CPG continues to creep higher, distancing itself from the 50-dma 
at $32.10.  Volume remains tepid, with the exception of 
yesterday's spike higher.  For the time being we're simply going 
to take a "wait-and-see" approach to this play.  The daily 
stochastics (5,3,3) are wavering near the overbought band, 
hinting that further upside may be limited.  Our stop above 
$34.00 allows plenty of breathing room if shares do see some 
additional buying.  We'll be watching for CPG to break its recent 
uptrend and fall below the 50-dma.  This would be a bearish 
technical development.  More rangebound trading at current levels 
may lead us to drop this play and move on to something that's 
actually moving.

Picked on August 2nd at $32.68
Results since picked:    -0.33
Earnings Date         08/12/02 (confirmed)





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

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

Chubb Corporation - CB - close: 63.75 change: -1.20 stop: 64.25

CB rallied with the Dow Jones on Wednesday and closed slightly 
under psychological resistance at $65.00.  Shares hit this level 
on Thursday morning but could not manage to move even one cent 
higher.  CB proceeded to sell off for the next four hours basing 
out near $63.25.  This is an encouraging development for the 
bears.  However, our play was stopped out for a 3.1% loss when 
shares reached $64.25 on Wednesday.  Traders still short should 
now be watching for CB to break under the relative low of $62.00, 
thus clearing the way for a decline to the $60 region.

Picked on August 13th at $62.26 
Results since picked:     -1.99
Earnings Date          07/29/02 (confirmed) 




---

Panera Bread - PNRA - close: 31.24 change: +1.60 stop: *text*

PNRA moved higher with the broader market yesterday and never 
approached our entry trigger of $28.49.  Shares closed above the 
200-dma ($29.60) but were unable to conquer the $30.00 level.  
Today's action, however, saw PNRA gap above psychological 
resistance and move all the way up to the 50-dma ($31.70).  The 
stock finished with a 5.4% gain.  With PNRA continuing to 
distance itself from our trigger and the oscillators beginning to 
level out, we're going to drop this play.  It'll be interesting 
to see whether the 50-dma continues to act as resistance, but 
today's relative strength (versus the broader market) is an 
indication that shares may test the next shelf of resistance near 
$33.00.  Panera announces earnings in one week.

Picked on August xth at $xx.xx <-- See text
Results since picked:    +0.00
Earnings Date         08/22/02 (confirmed)






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

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

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

Foundry Networks - FDRY - close: 8.95 change: +0.06 stop: 8.13

Perhaps it's true that rising tides lift all boats.  Foundry 
Networks has been slowly continuing the current up trend over the 
last two days.  Announcing this morning that the company has 
market share leadership in three market segments, FDRY seems like 
a solid pick for bulls.  However, in this market, valuation and 
technical analysis can be two distinctly different motivators for 
stock direction. Buyers are certainly trying to move this stock 
up, though if the broader market begins to stumble, bulls' could 
quickly fade.  Keeping this in mind, we are going to maintain our 
stop tight at $8.13, allowing ourselves a mere 4.4% loss if the 
trade moves against us.      

Picked on August 9th at  $8.51 
Results since picked:    +0.44
Earnings Date         07/24/02 (confirmed)
 




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

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

National Semiconductor - NSM - cls: 17.70 chg: +0.88 stop: 17.32

NSM gapped up this morning, stopping us out of our play at 17.60.  
Although we were attempting to trade with the trend, the market 
had other thoughts for this position.  Bulls grabbed hold of the 
semiconductor sector over the last two days, and have been 
attempting to push the index through descending resistance.  It 
was just last week that the market was commenting on the weakness 
of chip companies, alluding to poor future outlook.  However, 
with some portfolio reallocation going on, the decline in bonds 
has helped equities to find their swing.  Tomorrow could 
certainly be a pivotal day for the SOX with options expiration; 
bulls might just have enough volatility to push the index through 
resistance.  Bears still in positions could still have a chance 
though... The economy is not completely out of troubled waters 
yet, and could still see selling.  However, it might be a good 
idea for bears to consider closing short positions if NSM is able 
to breakout above the descending trend line.  

Picked on August 14th at $15.62 
Results since picked:     -1.98
Earnings Date          09/04/02 (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 

CTX     Centex Corporation         49.75     +2.70
BZH     Beazer homes USA           63.40     +2.76
NVR     NVR inc                    311.75    +15.25
LEN     Lennar Corporation         51.41     +3.30
RYL     Ryland Group               44.25     +2.17
LNY     Landry's Restaurants       22.70     +1.55

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

ZRAN    Zoran Corporation          14.92     +1.15
CDIS    Cal Dive International     19.27     +1.93
PBY     Pep Boys International     13.95     +1.08
RINO    Blue Rhino Corp.           12.45     +1.15
CKFR    Checkfree Corp.            12.55     +2.02
--------------------------------------- 
Breakout to Upside (Stocks over $20) 
--------------------------------------- 
Ticker  Company Name               Close     Change 

WFMI    Whole Foods Market         48.84     +2.44
URBN    Urban Outfitters           27.47     +2.18
FRX     Forrest Laboratories       73.24     +3.74
ISLE    Isle of Capris Casinos     21.61     +1.57

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

GD      General Dynamics           76.30     -2.31
OCLR    Ocular Sciences            23.45     -1.10
UIL     Uil Holdings Corp.         42.98     -1.38

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

None




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

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

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