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Daily Newsletter, Wednesday, 08/21/2002

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PremierInvestor.net Newsletter              Wednesday 08-21-2002
                                                  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
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For HTML version:
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In section one:

Market Wrap:      Fed Fun!
Watch List:       ADRX, CSCO, CTX, HD, LEH, LLTC, and more...
Play of the Day:  A Simple Matter of Supply and Demand


*******************************************************************
MARKET WRAP  (view in courier font for table alignment)
*******************************************************************       
08-21-2002                High    Low     Volume Advance/Decl
DJIA     8957.23 + 85.16 8974.36  8798.89 1600 mln  1969/774
NASDAQ   1409.25 + 32.66 1410.88  1378.09 1609 mln  2241/1032
S&P 100   480.04 +  6.01  481.33  470.68   totals   4210/1806
S&P 500   949.36 + 11.93  951.59  931.32
RUS 2000  406.79 +  8.95  406.79  397.84
DJ TRANS 2432.21 + 84.49 2432.21  2347.43
VIX        31.63 -  0.93   34.02  30.62
VIXN       46.11  - 1.60   49.72  45.99
Put/Call Ratio 0.67
*******************************************************************

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

A little greener!  Today's market found moderate buying as the 
NYSE closed +85.16 points positive at 8957.23.  The Nasdaq also 
discovered buyers, closing up +32.66 points at 1409.25.  NYSE 
charging issues defeated retreating equities 1969 to 774.  The 
Nasdaq witnessed 2248 advancers and 1029 decliners.  Trading 
volume today, came in at 1.6 billion shares for both exchanges. 

America Online (NYSE:AOL) has agreed to buy AT&T's share of Time 
Warner Entertainment in a deal that totals $4.7 billion.  AOL 
Time Warner was able to recapture control of its business through 
the deal, and could possibly be looking forward to an initial 
public offering of cable assets in the future.  

B..bu..bu..busted!  Former Enron executive Michael Kopper plead 
guilty to criminal conspiracy charges to commit wire fraud and 
money laundering today in a Federal Court in Houston.  The ex-
Enron white-collar criminal was released on a $5 million dollar 
bond and agreed to pay a fine of $12 million.  Kopper faces up to 
15 years in prison, and can never work as the officer or director 
of a public company ever again. 

Not..bu..bu..busted..just..yet!  After all: Martha Stewart IS 
innocent until proven guilty.  Yesterday, legal eagles for 
Stewart delivered phone records and e-mails regarding her sale of 
4,000 shares of ImClone stock to investigators.  She turned over 
the records after being threatened with a subpoena by a house 
panel.  The panel's final decision on whether to force Stewart to 
testify will not be made until after Labor Day.    

CBS Market Watch reported today that at least three regional 
Federal Reserve presidents are upbeat about the economy and feel 
that current interest rate policy is adequate.  The presidents 
indicated that they are in no hurry to lower the Fed Funds Rate 
in light of potential growth in the U.S. Economy.      

In economic news today, the ABC News/Money magazine survey of 
consumer comfort elevated 4 points to -11.  The survey represents 
the first increase in consumer confidence in five weeks.  
Consumers will have to continue spending to accelerate the 
economy and help with a fiscal recovery.

The MBA Mortgage Applications Survey continues to indicate a 
surge in demand for re-financing and mortgage applications.  Low 
mortgage rates persist to spur consumers into purchasing real 
estate nationwide.  Mortgage applications surged 11% in the week 
ending August 14th, which produced a new record high.  Beyond 
applications, the purchase index also rose by 5% from last year, 
though down 2% from its June-July average.  Steadfast home sales 
could promote further residential construction, while refinancing 
should help millions of personal balance sheets with an increase 
in expendable income.  Cash-out refinancing has also helped many 
consumers pay off high interest rate credit cards at a time when 
personal bankruptcies are soaring.  As a result of the continued 
strength in the housing market, sales should remain strong 
through fall, though if the economy begins to improve and the Fed 
leans towards raising rates, demand could quickly taper off.  A 
30-year fixed rate above 7% could promote a contraction of 
housing buyers; the 30-year rate is currently 6.18.  Even though 
the API and EIA reports unveiled bullish numbers for the housing 
sector, the DJUSHB traded red during today's session.  Some 
traders feared that even with soaring mortgage applications, a 
stronger economy would mean higher interest rates, and thus, 
fewer future sales.  Also, some observers of the housing market 
disagree on whether there is a "bubble" or not.  Many analysts 
contend that numerous urban and costal markets are over-inflated 
and could soon get a quick dose of reality as interest rates 
rise.  However, Alan Greenspan has publicly stated that he thinks 
housing prices are "tame", and that supply should remain tight.
Supply aside, interest rates above 7% do not promote strong 
growth in the housing market.  

Chart of: DJUSHB, Daily.





Weekly Oil and Gas inventory numbers were released from the 
American Petroleum Institute (API) and the Energy Information 
Agency (EIA) prior to the open this morning.  Crude inventories 
have increased from 300.0 barrels to 302.8 barrels.  Distillate 
inventories decreased slightly, whereas gasoline supplies 
diverged by increasing slightly from the prior week.  The price 
of crude (October contract: GC02V) could not breach $30.00 
yesterday, falling in today's trading session.  Overall, the API 
and EIA reports are both (short-term) decidedly bearish for oil 
stocks.  Investors are asking how this can be with the price of 
crude at 55-week highs?   Unfortunately, crude futures simply 
have a "war premium" priced into the contracts, thus, without 
inventory shrinkage or a military move into Iraq, oil will have a 
hard time remaining at artificially high levels.
To read the EIA report, click here:      
http://www.eia.doe.gov/pub/oil_gas/petroleum/data_publications/we
ekly_petroleum_status_report/current/txt/wpsr.txt
      

The Bigger Picture

Examining the bigger picture of the Nasdaq 100, we see some 
interesting technical developments appearing on our horizon.  The 
larger move over the last two and a half years has been negative 
to say the least.  Recently in the latter half of July, the 
Nasdaq 100 tested lows, falling beneath levels not seen since 
1998.  Holding on to support, the index has been able to rebound 
slightly, attempting to ascend to safer ground.  On the weekly 
chart, there are two identifiable channels, which cause us to 
look twice.  First, the "long-term" channel, which began in March 
of 2000, is framed in the red lines.  The Nasdaq 100 has not 
challenged the descending resistance of the long-term channel 
since September of 2000.  Amazingly, the recent sideways trading 
could provide an opportunity to test the descending resistance in 
the next few days.  If, in the next few days, the Nasdaq 100 is 
able to pierce the descending resistance line of the "long-term" 
channel, market technicians could stop and take notice!  The 
occurrence would be of titanic technical merit, potentially 
similar to Haley's Comet! Astronomers polish your lenses!  OK, so 
I'm blowing things out of proportion, though the event would 
merit some attention.  If the Nasdaq 100 were able to push 
through descending resistance, it would not necessarily mean that 
a bottom has been struck.  After all, there is ANOTHER descending 
channel resistance trend-line to contend with on the horizon.  
The blue lines on the chart signify the inner (short-term) 
channel.  Further, the inner resistance pierces the long-term 
descending resistance, while also traveling slightly above the 
50-Week MA.  An ascending move of the Nasdaq 100 above the long-
term channel could then attempt to test the 1300.  The 200-dma is 
at 1338.75, very close to the inner channel descending 
resistance.  The Nasdaq 100 closed above the 50-dma (daily chart 
NOT shown) today for the third day in a row; however, daily 
Stochastics continue to stretch out into the overbought region.  

Chart of: Nasdaq 100, Weekly.


 

Given the above information, and assuming that no 
war/terrorist/accounting news surfaces, the Nasdaq 100 could see 
a run at descending resistance.  If by chance, the index does 
break through the long-term descending resistance, it could then 
temporarily travel sideways in order to allow the daily 
oscillators time to cool off.  At that juncture we could 
subsequently see a burgeoning run at the 200-dma, the 50-Week
MA, and/or the inner descending channel resistance on the weekly 
chart.  

Chart of: Semiconductor Index, Weekly 




Currently, the semiconductor index ($SOX.X) is challenging 
horizontal resistance in the 360 area.  On the daily chart (not 
shown) Stochastics (14,1,3) are in the overbought region and 
could be signaling a potential pullback in the future.  However, 
the weekly chart displays the Stochastics turning up out of the 
oversold region, possibly alluding to strength in the longer-term 
trend.  If the SOX were able to break above horizontal 
resistance, it could then test further resistance in the 430-450 
neighborhood.  Bulls beware though; a pullback could still be in 
store!  As Jeff Bailey pointed our last night's wrap 
http://www.PremierInvestor.net/markets/marketwrap/082002_1.asp 
the 50-dma is not easily refuted and could still be a substantial 
heckler for bulls. 

Chart of: 3-Year Treasury Note, Weekly.




Surveying the weekly chart of the 30-Year Treasury note, we get a 
sense of the bigger picture for bonds.  The 30-Year note has 
experienced a considerable amount of buying since late 
1999...before the Nasdaq Composite and the S&P 500 began their 
corrections! These bond guys are smart I tell ya!  Thus, as we 
view the 10-Year and 30-Year treasury notes, we might find some 
validity to the current ricochet from July lows.  The 30-Year 
note is attempting to find yield support in the 5.0% area, while 
the 10-Year note strives to reside above 4.1%.  Weekly 
Stochastics for the 30-Year note and the 10-Year note are trying 
to amplify themselves out of the oversold region.
For money to transfer from bonds to equities, treasuries must 
experience some selling in order to free up cash for portfolio 
re-allocation.  Yields could be the key to a market turn, so 
watch closely!  

Sooooooo...what really happened today that was exceptionally 
notable?  The hidden jewel of the session was the fact that three 
Fed officials said that a rate cut is out of the question for 
now.  Thus, the market already has a clear signal of what action 
the Fed will take at the September 24th meeting.  The three Fed 
presidents who made the comments were: Chicago Fed president 
Michael Moskow, Philadelphia President Anthony Santomero, and San 
Francisco President Robert Parry.  The market's reaction to the 
Fed news was certainly uplifting, seeing that just one week ago; 
traders were groveling for a rate decrease.  The vital 
cornerstone to bolster consumer confidence has been investor 
sentiment.  If the markets find stability, consumers could be 
enticed to potentially increase spending.  In spite of this, I 
would like to remind readers that even with the positive 
developments of late, this is the time of year when some 
investors book profits.  Also, Crude prices are extremely high 
and could translate into less expendable income if consumers have 
to pay more at the pump.  Lastly, let's not forget that we are at 
war...terrorists can pick amazingly strategic times to strike, 
potentially just when we think recovery is imminent.  

However, it would seem that even without a rate decrease at the 
last FOMC meeting, investors have found other reasons to be 
positive about the market...  A good sign indeed!

Mark Whistler	
Editor
mwhsitlerPremierInvestor.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
---------------------------------

Andrx Group - ADRX - close: 25.20 change: +1.38

WHAT TO WATCH: With sector leader AMGN refusing to give back its 
recent gains, the BTK.X biotech index has continued to trend 
higher.  The BTK pegged a new relative high today and 
outperformed the NASDAQ.  A test of the 400-420 region appears 
likely.  ADRX has been a beneficiary of this sector strength.  
The stock has emerged from a six-week consolidation pattern and 
is trading near relative highs.  Today's close above both the 50-
dma ($24.71) and psychological resistance at $25.00 could lead to 
another round of short-covering.  A break above the mid-July high 
of $25.52 would open the door for an eventual rally to the $35.00 
region.  This is where ADRX found support before June's steep 
decline.  Short-term traders, however, could simply target a move 
to the next level of psychological resistance at $30.00.




---

Cisco Systems - CSCO - close: 15.10 change: +0.37

WHAT TO WATCH: CSCO has been quietly creeping higher over the 
past two weeks.  Today's action was especially impressive, as the 
stock tacked on 2.5% and pierced near-term resistance at $15.00.  
Shares closed above this level, hinting towards a continued rally 
in the days ahead.  The p-n-f is looking strong as well, with 
CSCO recently moving above bearish resistance.  Short-term 
traders could target bullish entries on a move above today's high 
($15.25).  We'd be looking to capture a quick pop to the 200-dma 
at $16.49.




---

Centex Corp - CTX - close: 49.60 change: -1.03

WATCH TO WATCH:  The DJUSHB home construction index pulled back 
by 1.4% today, despite data from the Mortgage Bankers Association 
(MBA) that said mortgage applications were at an all-time high.  
Conventional wisdom dictates that this is a bullish sign for the 
homebuilding group.  The tepid response from Wall Street 
indicates that the good news may have already been priced into 
the sector.  Technically, the DJUSHB has rolled over from its 
converging 50-day and 200-day moving averages.  With the daily 
stochastics (5,3,3) beginning to release from overbought levels, 
a continued pullback seems likely.  CTX has also sold off from 
its 50-dma ($50.86) and is displaying similar oscillators.  
Today's close under the $50.00 level is not a good sign for the 
bulls.  Short entries can be gauged on a move under today's low 
($49.09), with an initial profit-target near $45.00.  




---

Home Depot - HD - close: 32.64 change: +2.39

WHAT TO WATCH: A positive reaction to last night's earnings 
report had shares of HD trading sharply higher today.  It takes 
an aggressive strategy to chase a stock after a large move, but a 
move above today's high ($32.69) may provide an entry point for 
traders willing to chance a pullback.  The stock has broken out 
of its month-long consolidation range and is trading at multi-
week highs.  Today's close above the 50-dma ($32.14) bodes well 
for the bulls.  Meanwhile, the p-n-f chart is signaling a Bear 
Trap alert.  Continued short covering could see HD retrace the 
remainder of its early-July selloff and move back to the $38.00 
region.  Longer-term investors can also be encouraged by the 
rising oscillators on the weekly chart.




--- 

Lehman Bros. - LEH - close: 58.98 change: -2.20

WATCH TO WATCH: A double-whammy of negative brokerage comments 
had shares of LEH trading lower on Wednesday.  Morgan Stanley 
slashed their estimates for Lehman, while Solomon Smith Barney 
downgraded the stock.  The technical picture is not encouraging 
for shareholders, with the bar chart showing a rollover from the 
200-dma ($62.34) and the p-n-f chart reversing into a column of 
"O's."  The oscillators are looking bearish as well, with both 
the MACD and daily stochastics falling from overbought levels.  
Short entries can be considered on a move under $58.00, below the 
50-dma and today's low.




---  

Linear Technology Corp - LLTC - close: 32.92 change: +1.45

WHAT TO WATCH: The semiconductor index (SOX.X) has rebounded 
sharply over the past week and is now at what could be a crucial 
pivot point.  The descending 50-dma at 360 has kept a lid on the 
index during the last three sessions.  Wednesday's close above 
that level could have panicked bears running for the exits during 
tomorrow's session.  If this turns out to be the case, LLTC looks 
like it could really explode.  Shares are trading near multi-
month highs and are in the process of retracing June's sell-off.  
A move to the $36 region would not be out of the question if the 
SOX.X heads to 400.  In terms of specific action points, traders 
can watch for a move above the relative high of $33.33. 




---

Nextel Communications - NXTL - close: 7.19 change: +0.11

WHAT TO WATCH: On Wednesday, the YLS.X wireless index closed 
above its 50-dma for the first time since April.  A retest of the 
July highs near 50.00 could occur if the index doesn't slip back 
below moving average support.  Aggressive traders may want to 
consider a bullish position in NXTL if the stock breaks above 
today's high ($7.55).  Shares are trading near multi-month highs 
and look poised to challenge the $8.00-$9.00 congestion region.  
Continued bullishness in the wireless sector could have NXTL 
slicing through this area and testing psychological resistance at 
$10.00.  P-n-f chartists will note that NXTL recently produced a 
bullish triangle breakout.




---

Tyco Intl - TYC - close: 16.72 change: +1.37

WATCH TO WATCH: Back from the dead?  TYC has risen more than 100% 
from its late-July lows.  Now that the revelations of accounting 
irregularities have heavily discounted the stock's price, Wall 
Street seems to be in a buying mode.  News that some TYC 
investors are looking to purge the Board of Directors of anyone 
who served under former CEO (and future inmate?) Dennis Kozlowski 
had the stock trading higher by nearly 9% on Wednesday.  Needless 
to say, TYC is technically overbought and could experience a 
pullback at any time.  However, high-risk traders may want to 
consider going long on a break above today's high ($16.75). 
The stock certainly has upside momentum, and there's not much 
overhead resistance to prevent a move to the $20.00 area.





===============
Play-of-the-Day (Non-tech BEARISH play)
===============

Oil Service HOLDRs - OIH - close: 54.39 change: +0.21 stop: 57.01

Company Description:
HOLDRS are trust-issued receipts that represent your beneficial 
ownership of a specified group of stocks. HOLDRS allow you to 
benefit from the ownership of the stocks in a particular 
industry, sector or group. (source: company web site)



- ORIGINAL WRITE UP: August 20th, 2002 -
 
Why We Like It:
With speculation that war with Iraq could be looming over our 
heads, the price of crude futures have recently ascended to 52-
week highs. In the last few weeks, oil inventories have also been 
at lows, with further conjecture that the U.S. government has 
been building up it Strategic Petroleum Reserves. As a result, 
the Oil and Oil Service sectors have seen moderate recovery from 
July lows. This afternoon, the American Petroleum Institute (API) 
announced an unexpected climb in last week's oil inventories. The 
news pushed crude futures lower in after hours trading and could 
be the catalyst that adds selling pressure to the oil group. 
Today's report indicated a 6.64 million-barrel increase in last 
week's inventories, while most data expects a 3 million barrel 
decrease in tomorrow's weekly report. 

In light of potential inventory amplification, it is possible 
that the Oil Services sector could begin to see some profit 
taking. The OIH is a Holders Trust that represents 18 oil 
services companies, and has rebounded 17% from the most recent 
relative low on August 8th. The rally carried the OIH directly 
into the descending resistance trend line, the 50-dma, and the 
38.2% (see chart) Fibonacci retracement. The OIH tried to break 
through resistance during the last three days, but could not find 
enough momentum to ascend into higher ground. As a result, the 
OIH seems as if it could fall back into the descending range, 
potentially testing $45.00 again. Also, daily Stochastics seem to 
be rolling out of the overbought region, and could be heading 
lower. 

Given today's API news, we are considering a hypothetical short 
at current levels. However, because we will be marking our entry 
price on tomorrow's opening, the trade will be "conditional". If 
the OIH gaps DOWN more than 65 cents on tomorrows opening, the 
newsletter will NOT add the short. Our reasoning is that if this 
afternoon's news causes the Oil Services Index to drastically gap 
down, we do not want to be short on the bottom of what could be 
the beginning of a rebound. Thus... we will ONLY add our short 
entry on tomorrows opening IF the OIH DOES NOT gap down MORE THAN 
65 cents. If a position in the OIH is activated, we will put our 
initial stop at $57.01, just above near-term resistance and the 
50-dma. Our initial profit target for OIH will be $47.50, where 
we hope to strike oil! The OIH could see support in the $54.00 
area, but the bulls will have a tough time defending this level 
if the price of crude continues to fall.

- Play-of-the-Day Comments: August 21st, 2002 -

The oil service index (OSX.X) finished Wednesday's session with a 
paltry 0.36% gain, despite the fact that crude oil futures 
(cl02z) rallied to a new relative high. We entered our 
hypothetical short trade in the OIH at the opening price of 
$54.20. Our stop is now set at $57.01.  Traders still looking to 
go short can watch for a rollover from the $55 region or a move 
under today's low of $52.75.  Going forward, we'd be very 
surprised to see the price of crude maintain its current lofty 
levels.  As discussed in tonight's Market Wrap, the latest 
inventory data indicates that supply is increasing.  Oil has been 
bid higher by Iraq war concerns.  Those concerns make soon begin 
to fade it the U.S. continues to balk at decisive military 
action.

Picked on August 21st at $54.20 
Gain since picked:        -0.19
Earnings Date               N/A
 



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





PremierInvestor.net Newsletter                Wednesday 08-21-2002
                                                   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
=================================================================
For HTML version:
http://www.PremierInvestor.net/htmlemail/h21b_2.asp
=================================================================


In section two:

Net Bulls Tech Stocks
  Stop Adjustments       CA
  Triggered Plays        SBC (Bearish)
Active Trader Non-Tech Stocks
  Triggered Plays:       NKE (Bullish) 
  Triggered Plays:       OIH (Bearish)

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 Tech Stocks (NB) section
=================================================================

===============
NB Play Updates
===============  
 
Stop Adjustments
----------------

Computer Associates - CA - cls: 11.33 chg: +0.56 stop: 10.42 *new

Shareholders of CA enjoyed an impressive 5.1% gain on Wednesday.  
There was no company-specific news to explain the rally, but the 
stock seemed to benefit from bullishness in the GSO.X software 
index.  At this time we're going to tighten our stop to $10.42, 
one cent under yesterday's low.  Due to the declining action of 
the 50-dma (currently at $12.45), we're also going to adjust our 
profit target to $12.34.  More aggressive traders could continue 
to target a move to the $13.00 region.





===============
NB Play Updates
===============  
 
Triggered Plays (Bearish)
-------------------------

SBC Communications - SBC - close: 28.11 change: +0.43 stop: 30.01

Our criterion for entering this short play was met this morning 
when SBC traded at $27.49.  The company's announcement that it 
would provide new variable price/speed DSL service did little to 
boost the stock.  SBC finished the day with a 1.5% gain and 
underperformed the IXTCX combined telecom index, which was pushed 
higher by a powerful rally in shares of T.  On Thursday we'll be 
watching for SBC to break under today's low ($27.42) and begin to 
gravitate towards loose support at $26.00.






=================================================================
Active Trader/Non-tech Stocks (AT) section
=================================================================

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

Triggered Plays (Bullish)
------------------------

Nike Inc - NKE - close: 45.49 change: +0.69 stop: 43.29

This long play was activated early on Wednesday morning when NKE 
hit our entry point at $45.36.  Shares reached an intraday high 
of $46.31 before pulling back to finish with a 1.5% gain.  Now 
that we've been triggered, our stop-loss is located at $43.29.  
Traders still looking to go long can consider bullish positions 
on a move above today's high.




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

Triggered Plays (Bearish)
-------------------------


Oil Service HOLDRs - OIH - close: 54.39 change: +0.21 stop: 57.01

The oil service index (OSX.X) finished Wednesday's session with a 
paltry 0.36% gain, despite the fact that crude oil futures 
(cl02z) rallied to a new relative high.  We entered our 
hypothetical short trade in the OIH at the opening price of 
$54.20.  Our stop is now set at $57.01.  Traders still looking to 
go short can watch for a rollover from the $55 region or a move 
under today's low of $52.75.  On a related note, be sure to check 
out Mark Whistler's Market Wrap for some intriguing analysis of 
the latest inventory data!





==================
  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.

Ticker  Company Name               Close     Change 

TSP     Telecom De Sao Paulo       10.78     +0.58
YUM     Yum! Brands Inc.           28.55     +0.63
FBP     First Bancorp Holding      28.50     +1.90
CBE     Cooper Industries Inc.     30.92     +1.52
PRX     Pharmaceutical Resources   27.28     +1.98

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

TRR     Trc Companies Inc          18.53     +0.74
DORL    Doral Financial Corp       44.21     +2.31
FDP     Fresh Del Monte            27.95     +0.58
ECTX    Ectel Ltd.                 10.51     +0.59
INTL    Inter-Tel inc.             26.22     +1.22
CLI     Mack Cali Reality          32.43     +0.52

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

DAL     Delta Airlines            19.12     +2.49
OSIS    Osi Systems               19.49     +1.43
VRSN    Verisign Inc.              7.48     +1.08
NBTY    Nbty Inc.                 17.07     +1.04
CVC     Cablevision                9.65     +1.83
LUV     Southwestern Airlines     14.85     +1.40
--------------------------------------- 
Breakout to Upside (Stocks over $20) 
--------------------------------------- 
Ticker  Company Name               Close     Change 

HD      Home Depot                 32.68     +2.43
USPI    Utd Surgical               32.32     +2.16
PNRA    Panera Bread               34.86     +2.08
DDS     Dillard's Inc.             27.41     +2.10
EFX     Equifax Inc.               23.03     +1.22

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

WEN     Wendy's International      36.34     -1.65
LEH     Lehman Bros Hldg           58.98     -2.20
FLR     Flour Corp                 27.66     -3.27
VMC     Vulcan Materials           38.79     -2.22

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

SRDX    Surmodics Inc.             28.31     -0.74
BUD     Anheuser-Busch             52.16     -0.64
TECD    Tech Data Corp.            33.36     -1.65



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