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Daily Newsletter, Monday, 08/19/2002

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PremierInvestor.net Newsletter                 Monday 08-19-2002
                                                  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:      Technically Developmental
Watch List:       AAPL, GENZ, MERQ, MSFT, NVLS, T, and more...
Play of the Day:  Breakout Looming


******************************************************************
MARKET WRAP  (view in courier font for table alignment)
******************************************************************
08-19-2002               High    Low     Volume Advance/Decl
DJIA     8990.79 +212.73 8994.12  8753.52 1536 mln  1874/869
NASDAQ   1394.54 + 33.53 1397.06  1359.14 1574 mln  1977/1317
S&P 100   480.84 + 12.40  481.21  467.67   totals   3851/2186
S&P 500   950.70 + 21.93  951.17  927.21
RUS 2000  401.29 + 5.32   401.50  395.39
DJ TRANS 2364.02 + 24.62 2368.97  2326.32
VIX        31.57 -  1.25   33.41  30.89
VIXN       47.02  - 2.41   45.57  50.57 
Put/Call Ratio 0.82
******************************************************************


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

And they're off!  Today's trading was illustrated with buyers, 
buyers, and more buyers.  The Dow Jones Industrial Average closed 
up +212.73, falling just short of 9000 at 8990.79.  The Nasdaq 
also witnessed buying momentum, ascending +33.53 points to end 
the day at 1394.54.  The NYSE viewed 1876 advancers versus 869 
decliners, while the Nasdaq reflected 1977 champions and 1308 
nose-divers.  Today's rally was backed by mediocre volume on the 
NYSE with 1.53 billion shares exchanging hands, and 1.56 issues 
trading on the Nasdaq.  Sector winners on the day were: retail, 
banks, transportation, forest paper and products, insurance, home 
construction, defense and software.  Strugglers included: gold, 
biotech, and airlines.     

The retail sector received a boost from the number 2 home 
improvement chain: Lowe's (NYSE:LOW).  Investors pushed shares of 
LOW up 11.4% to $41.00 on news that company beat earnings 
expectations by a nickel.  LOW reported 59 cents per share versus 
an expected 54 cents per share by analysts.  In addition, retail 
was further helped by Toys "R" Us (NYSE:TOY), which posted a 
narrower than expected loss for the second quarter.  J.C. Penny 
closed up 3.8% after announcing that sales are slightly exceeding 
anticipated results for August.  

Shares of AstraZeneca (NYSE:AZN) fell almost 17% today, as the 
company announced that its lung cancer drug Iressa had not 
exceeded anticipated results versus normal chemotherapy.  The 
class of anti-cancer drugs known as Epidermal Growth Factor 
Inhibitors are meant to impede the growth of uncontrolled cancer 
cells.  The Iressa disappointment also hindered ImClone Systems 
(Nasdaq:IMCL), Genentech (NYSE:DNA), and OSI Pharmaceuticals 
(NYSE:OSI), all of which have similar drugs in development.  The 
Biotech Index $BTK.X closed down -2.02% at 371.68.      

Of slight concern, the Conference Board's Leading Indicators 
reported a decline of -0.4% in July.  Six of the ten leading 
components of our economy declined in July.  The indicators that 
showed weakness were: interest rate speed, vendor performance, 
S&P 500, average weekly factory hours, consumer expectations, and 
building permits.  The decline in leading indicators does not 
bode well for bulls in our economy.  However, the market will 
probably not react to this news, as it is a summary of previous 
actions.  Bottom line though, economic recovery continues to be a 
fragile convalescence.  Although the market has been strong thus 
far, we must keep a close eye on all economic numbers coming 
forward.  

Bull Versus Bear

Chart of: Dow Jones Industrial Average, Daily.





There is no doubt that the markets have seen a considerable 
amount of buying over the last few weeks.  The question on the 
top of our minds is whether this is a sustainable rally.  In good 
news for bulls, several technical highlights have appeared to 
help the buoyant Angus to argue their case.  Paramount, the Dow 
Jones Industrial Average showed strength today, with a strong 
close above the 50-dma.  Today's move was the first close above 
the 50-dma since May 17, 2002.  As bulls evaluate today's 
exchange buying, they find reprieve in the potential ascending 
channel ahead.  Formidable resistance to contend with for the 
$INDU lies overhead at 9000.  The current ascending channel also 
seems to have loose resistance at 9100, and 9227-9285.  The 9227 
area is the 61.8% Fibonacci retracement from the May 17th range 
(see chart).  Further resistance for extremely optimistic bulls 
rests in the 9390-9400 vicinity.  Superfluously, bulls are 
enticed by the action of the MACD on the weekly chart, as the 
indicator is turning up from the oversold region.  Moreover, the 
weekly Stochastics (14,1,3) seem to be trending up with ascension 
pitted in their sights.  If the ascending channel can hold its 
ground, greedy bulls will be eyeing just over 9700 where the 200-
dma sits, along with the top of the channel and the 78.6% 
Fibonacci retracement.  

However, bears are not easily dissuaded from their cause.  
Recession advocates will argue that the economy is still a glass 
house with no foundation.  They might insert the Conference Board 
Leading Indicators from today as part of their case.  Some bears 
will even point out that the Transportation Index $TRAN, has not 
moved like the Dow or Nasdaq, and must also show strength before 
trade and industry revitalization appears.  Assisting in this 
belief would be the current nosebleed price of crude oil.  One 
simple facet of economic truth is that with the contemporary 
price of crude testing $30.00, the retail the price of gasoline 
will HAVE to rise at some point.  The money that will be sucked 
out of consumer pockets to fuel their gas-hogging SUV's could 
translate into one more stone being thrown in our recessionary 
glass house.  52-week high oil prices do not promote fiscal 
recuperation, especially when consumer spending is lower than 
last year.  In addition, the daily Stochastics on the Dow chart 
are heavily extended into the overbought region, and give the 
impression that a potential pullback could be in store.  Next, 
the Market Volatility Index $VIX.X has cooled down considerably.  
Bears think that the decline in the VIX is great, as the descent 
has given the indicator a chance to reload with the daily 
Stochastics coming across as recoiled in the oversold region.  
The volatility gun is loaded, and could potentially fire again at 
any time.  Bearloney?

Texas Tea

No matter which side of the market you're on, there is no 
overlooking oil when the price is at $29.83 per barrel.  The oil 
markets are worried about low crude inventories, as speculation 
continues that the US Government has been hording oil in its 
Strategic Petroleum Reserve for a possible attack on Iraq.   The 
oil and gas inventory numbers reported by the AIP and EIA on 
Wednesday should shed light on whether inventories are still 
declining or not.  The daily chart of oil futures depicts the 
current scenario.  Oil broke out above ascending wedge resistance 
last week and has been moving up ever since.  The 50-dma resides 
on the bottom of the wedge, while the 200-dma is wafting far 
beneath at 23.84.  Daily Stochastics denote that the futures 
could be slightly overbought.     

Chart of: Light, Sweet, Crude, Daily.




Treasury Tango

Even with a positive move in the broader market today, treasuries 
also found a small amount of buying.  The 30-Year Treasury note 
fell -0.39 closing at 5.054%, while the 10-Year note dipped -0.19 
to end the session at 4.298%.  Causing trepidation, investors 
would like to see bond yield begin to ascend, suggesting 
portfolio re-allocation from bonds to equities.  With limited 
money flowing from treasuries to stock, the Dow, Nasdaq, and S&P 
500 have limited upside potential.  The 10-year note is still in 
a descending channel, and needs to levitate above (roughly) 4.6% 
to indicate a trend test, or potential reversal.
Bottom line, for the market to go up, bond owners must believe 
that there are greater potential returns in equity ascension, 
than bond premiums.  

Chart of: 10-Year Treasury Index, Daily.


 

Looking Ahead 

Today's rally was a very encouraging technical achievement for 
many of the indexes.  The Dow, Nasdaq Composite, Nasdaq 100, S&P 
500, The U.S. Dollar, DJ U.S. Home Construction, and the GSTI 
Software Index all closed above their 50-dma's.  The KBW Bank 
Index has been above its 50-dma for three days.  Even though 
volume was low today, investors could see this as a development 
that they don't want to miss out on.  Thus, they could start 
buying stocks again in retort to the bear market.  This 
absolutely does NOT mean that the market is going to begin a huge 
rally and never look back... It simply suggests that the move 
today could convince some to dip a toe in the stock market 
swimming pool.  However, I would like to point out that there 
continues to be a considerable amount of risk, as the economy is 
by no means healthy.  Recovery can be slow, tedious, and 
sometimes disappointing.  Amongst rumors of a potential war with 
Iraq looming over our heads, many things could happen which could 
easily kick the feet out from under our markets once again.  

Time will certainly tell for our economy... Tomorrow provides the 
Chain Store Sales, International Trade Report, SEMI Book-to-Bill 
Ratio, and the Treasury Budget.  Wednesday brings forth ABC 
News/Money Magazine Consumer Comfort Index, MBA Mortgage 
Applications, and the Oil and Gas Inventories.  Thursday presents 
Internet Sales, Jobless Claims, and the Weekly Natural Gas 
Storage Report.  Friday concludes the week with the EXRI Weekly 
Leading Index.  

Stay nimble, as this week could be one of market precariousness.  
Without the drama of earnings pressuring us as in the weeks 
beforehand, some stocks will be allowed to trade in their true 
range.  News will certainly be a factor, but do no overlook 
technicals, and keep a keen eye on the 50-dma!  Lastly, fix your 
eyes on potential volume confirmation one way or another.  Any 
move without volume could easily be refuted.  Volume is the key!

Editor
Mark Whistler

Recently, Premier Investor has removed the HTML link from the 
daily email version of the newsletter.  Our reason for doing so 
was to expedite the email version of the letter earlier in the 
evenings.  Thus, we would like to issue a small survey to 
hopefully better serve our subscribers.

Premier Investor clients, would you rather have the email version 
sent out earlier each night without the HTML link, or would you 
prefer to wait slightly later (15-30 minutes) and have the link 
included?  

Thank you.
Questions or comments?
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
---------------------------------

Apple Computer - AAPL - close: 15.98 change: +0.17

WHAT TO WATCH: Aggressive traders may want to consider a bullish 
position in APPL if it trades above today's high ($16.25).  This 
would put the stock into the July 17th gap, which was produced 
when the company reported disappointing earnings.  Those 
fundamental concerns seem to be giving way to strength in the 
broader computer group, led by the likes of MSFT, DELL, and IBM.  
A continued tech rally could take APPL to the top of its gap, 
which just so happens to coincide with bearish p-n-f resistance.  
Speaking of p-n-f charts, bulls can take encouragement from the 
double-top buy signal.  This offers some technical evidence that 
APPL will be able to overcome the 50-dma at $16.68.




---

Genzyme Corp - GENZ - close: 23.72 change: -0.54

WHAT TO WATCH: Amongst the handful of sectors that finished 
Monday's session with a loss were the biotechs.  The group was 
pressured by news that AZN had reported disappointing results 
from a cancer drug trial.  GENZ traded lower in tandem with the 
BTK.X biotech index and posted a 2.2% loss.  The stock has 
certainly had a good five weeks, with shares bouncing off the 52-
week low at $15.64.  But GENZ is now technically overbought, as 
shown by both the daily and weekly stochastics.  The recent sell-
off from psychological resistance at $25.00 (near the top of the 
July 20th gap) could be the start of a more significant 
downtrend.  Possible profit-targets include the 50-dma ($21.44) 
or the $20.00 region.  Short entries can be gauged on a move 
under $23.00.




---

Mercury Interactive - MERQ - close: 27.20 change: +2.20

WHAT TO WATCH: Despite the lack of any substantial news on 
Monday, shares of MERQ soared to an 8.8% gain.  This was 
sufficient to take the stock above stubborn resistance at $27.00.  
The fresh quadruple-top breakout on the p-n-f chart is an 
indication that MERQ will continue to move higher.  Uptrending 
action in the MACD and daily stochastics (5,3,3) support this 
outlook.  Now that the bulls have conquered that level, a move to 
the $30 region (location of both psychological and p-n-f 
resistance) could be on the horizon.  Entries can be gauged on 
continued strength from current levels.




---

Microsoft Corp - MSFT - close: 52.00 change: +2.00

WHAT TO WATCH: Things are looking up for the software sector.  
The GSO.X software index rallied by nearly 5% on Monday and moved 
above both psychological resistance at 100 and the 50-dma at 101.  
Helping to lead the group higher was a 4.0% gain in shares of 
MSFT.  Mr. Softee has broken above resistance at $50.00 
(bolstered by the 50-dma at $50.64) and is currently trading at 
the top of its descending channel.  A break above this level 
could lead to a retest of the May/June highs near $56.50.  The p-
n-f chart bodes well for the bulls, with shares recently breaking 
above bearish resistance.  Even if you're not planning on trading 
MSFT, it's definitely one to watch in order to gauge the overall 
health of the tech sector.




--- 

Newmont Mining - NEM - close: 25.60 change: -1.20

WHAT TO WATCH: As could be expected, gold-related issues headed 
lower on Monday as the broader market experienced a steep rally.  
NEM fell by 4.4% and briefly tested its 200-dma at $24.90.  A 
move under this level would provide a possible action point to 
open short positions.  The recent failure of NEM to move above 
its 50-dma, combined with a rolling MACD and declining daily 
stochastics, paints a picture of weakness.  We'd be looking for a 
near-term decline to the $20-$22 region.  In terms of sector 
strength, bears will like how the XAU.X Gold/Silver index has 
sold off from its 200-dma.


 

---  

Novellus Systems - NVLS - close: 30.79 change: +1.64

WHAT TO WATCH: With Bank of America slashing their EPS estimates 
for Novellus this morning, the company's stock seemed to have 
little chance of moving above resistance at $30.00 and the 50-dma 
at $30.47.  The bears, however, didn't count on a powerful rally 
in the semiconductor index (SOX.X).  Today's break above 
resistance, combined with a double-top p-n-f buy signal, 
indicates that NVLS will continue to move higher in the near 
future.  Aggressive entries can be targeted on a move above 
today's high ($31.20), with an initial profit near $34.00.




---

Semiconductor HOLDRs - SMH - close: 28.41 change: +1.05

WHAT TO WATCH: The semiconductor index (SOX.X) has staged an 
impressive rebound over the past week, and today's action is 
enough to really make the bears nervous.  Not only did the SOX 
climb above previous resistance at 350, but the 50-dma (363.47) 
was pierced for the first time since April.  The SMH are 
displaying a very similar technical pattern (they trade nearly in 
tandem with the SOX) and may be a good bullish candidate for 
aggressive traders.  Entries can be evaluated on a move above 
today's high of $28.93, initially targeting the July highs near 
$32.  This would roughly coincide with a reading of 400 on the 
SOX.




---

AT&T Corp - T - close: 10.76 change: +0.31

WHAT TO WATCH: Here's a stock that offers a good deal of upside 
potential with a minimal amount of downside risk.  T has moved 
above psychological resistance at $10.00 and the mid-June highs 
at $10.70.  Now that the stock has broken out of its recent 
consolidation range, a move to the $13 region may be in the 
cards.  Entries can be gauged on a move above today's high 
($10.80), with a stop just under $10.00.  Be aware, however, that 
the daily stochastics are pinned at overbought levels.  Of course 
if the Dow Jones keeps soaring to multi-week highs, there's no 
reason why T can't continue to rally.





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

IMS Health - RX - close: 17.99 change: +0.57 stop: 16.74 *new*

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)



- ORIGINAL WRITE UP: August 8th, 2002 -
 
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.

- Most Recent Update: August 16th, 2002 -

The good doctor! We are happy to see IMS Health continue to 
ascend during the last week. The move above the 50-dma is greeted 
with open arms by bulls. Although the daily Stochastics look 
extended into the overbought region, we think this trade could 
still have some legs. In our original write up, we stated that we 
would put a profit target at $18.00. However, given the stocks 
recent strength, we will close half of our position at $17.95, 
and let the remainder ride. Because RX could bounce off the 50-
dma still, we will leave our stop at $15.65. Today did not bring 
and fresh news forward on IMS Health.


- Play-of-the-Day Comments: August 19th, 2002 -

As per the exit strategy outlined in the most recent update for 
RX, we closed half of our hypothetical position today when shares 
traded $17.95.  But there may be plenty of upside remaining.  
Looking at the bar chart, one sees that RX is sitting just under 
solid resistance at $18.00.  A move above today's high (18.04) 
could clear the way for an eventual test of the 200-dma at 
$19.62.  We'd expect the stock to begin retracing the rapid 
losses it suffered during the latter half June.  Note that our 
stop has been tightened to $16.74, one cent under Friday's low.

Picked on August 9th at $16.21 
Gain since picked:       +1.78
Earnings Date         07/15/02 (confirmed)
 






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

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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 08-19-2002
                                                   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
  Stop Adjustments:      CA, IBM, RX (bullish)

Stock Bottom / Active Trader
  Triggered Plays:       AGN (bearish), MGG, SWFT (bullish)
  Closed Bullish Plays:  SBUX

High Risk/Reward
  Stop Adjustments:      FDRY (bullish)

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 Play Updates
===============  

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

Computer Associates - CA - cls: 11.11 chg: +0.78 stop: 9.98 *new*

Shares of CA gained 7.5% today, as investors reacted favorably to 
a conference featuring ACCPAC, a Computer Associates subsidiary.  
The stock was also aided by a strong performance in the GSO.X 
software index.  In light of today's gains, we're going to move 
our stop up to $9.98.  Thus, we'll have the protection of 
psychological support at $10.00.  This will also force CA to fall 
below today's low of $10.32.




--- 

Intl Business Mach. - IBM - cls: 82.49 chg: +3.14 stop: 78.99*new

IBM kicked off the week on a positive note, slicing through the 
$80.00 level and posting a 3.9% gain.  This play is currently up 
10.3% from our original entry point.  Our stop-loss is now set at 
$78.99, below psychological support at $80.00 and two cents under 
today's low.  Longer-term investors may want to use a stop just 
under $75.00.


 

---

IMS Health - RX - close: 17.99 change: +0.57 stop: 16.74 *new*

As per the exit strategy outlined in the most recent update for 
RX, we closed half of our hypothetical position today when shares 
traded $17.95.  A move above today's high could clear the way for 
an eventual test of the 200-dma at $19.62.  Our stop has been 
tightened to $16.74, one cent under Friday's low.






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

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

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

Allergan Inc - AGN - close: 57.43 change: +0.69 stop: 60.01

Early-morning weakness in the DRG.X pharmaceutical index sent AGN 
trading to a new short-term low of $56.50.  Our short play was 
triggered when shares traded at $56.59.  The stock proceeded to 
rebound with the broader market, but displayed relative weakness 
compared to the Dow Jones.  New entries can be considered on a 
break under today's low, but keep in mind that possible support 
lies at $56.00. Our stop is located at $60.01.




---

MGM Mirage - MGG - close: 37.26 change: +0.61 stop: 34.99

This long play was activated on Monday morning when MGG hit our 
entry trigger at $37.02.  Shares followed the Dow Jones higher 
and finished the session with a gain of 1.6%.  Although the $38 
level may pose a challenge for the bulls, aggressive traders can 
target new entries on a move above today's high of $37.65.  Our 
stop is set at $34.99.  




--- 

Swift Transport. - SWFT - cls: 18.66 chg: +0.89 stop: 17.64 *new*

Shares of SWFT gave an impressive performance on Monday, moving 
above the $18.00 level and reaching a new relative high of 
$18.74.  Our long play was triggered when shares reached $18.01 
during the first hour of trading.  Although we've bumped our stop 
up to $17.64 (slightly under today's low), more aggressive 
traders could keep stops set at $17.24.  New entries could be 
gauged on a pullback to the $18 region.





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

  --------------------
  Closed Bullish Plays
  --------------------

Starbucks - SBUX - close: 21.81 change: +0.99 stop: 19.98

Excellent!  SBUX had twice been turned back from resistance at 
$21.40 on Monday, only to launch above that level in afternoon 
trading.  This play was closed for a hypothetical profit of 12.1% 
when shares hit our profit-target of $21.75.  Traders who are 
still long need to be aware of the converging 50-day and 200-day 
MA's, which are directly overheard.  A move above $22.00 would be 
a very positive technical development, but the bulls will 
probably need some assistance from a continued rally in the 
broader market.  SBUX has rallied sharply from last Wednesday's 
low and may be overdue for some profit taking. 

Picked on August 8th at $19.39 
Gain since picked:       +2.36
Earnings Date         07/25/02 (confirmed)
 





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

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

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

Foundry Networks - FDRY - cls: 9.50 chg: +0.36 stop: 8.99 *new*

FDRY climbed 3.9% on Monday and set a new multi-month high of 
$9.64.  With shares quickly approaching our profit-target at 
$9.94, we think it's prudent at this point to tighten our stop to 
$8.99.  More conservative traders could challenge FDRY with a 
stop just under today's low of $9.20, or even consider reaping 
profits if shares roll over from current levels.





=================
  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 

MSTRD   Microstrategy Inc.         10.50     +1.21
NVDA    Nvidia Corporation         12.65     +1.96
MRBK    Mercantile Bankshares      39.99     +0.65
PEGA    Pegasystems Inc.            9.40     +1.15
EDS     Electronic Data Systems    40.75     +1.83
BBOX    Black Box                  38.30     +1.64

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

OSTE    Osteotech Inc.            10.66     +1.15
DOCC    Docucorp International    15.60     +1.05
CKFR    Checkfree Corporation     13.90     +2.05
CPRT    Copart Inc.               12.88     +1.05

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

THQI    Thq Inc.                   25.00     +2.60
AMSG    Amsurg Corporation         33.05     +1.97
LOW     Lowe's Companies           41.00     +4.21
VALM    Valmont Industries         23.41     +1.12
CVH     Coventry Health Care       33.70     +2.77
------------------------------------------- 
Breakout to Downside (Stocks over $20) 
------------------------------------------- 
Ticker  Company Name               Close     Change 

UCBH    Ucbh Holdings              41.00     -1.65
DNA     Genentech                  34.02     -1.47
AZN     Astrazeneca                30.98     -6.02
JBLU    Jetblue Airways            36.39     -2.69

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

NEM     Newmont Mining             25.60     -1.20
ALR     Allied Research            21.80     -1.30




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