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Daily Newsletter, Friday, 08/30/2002

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PremierInvestor.net Newsletter          Weekend Edition 08-30-2002
                                                    section 1 of 3
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:      Laboring Emotions
Play-of-the-Day:  Another Watchlist Graduate
Watch List:       ADRX, A, EC, JPM, NSM, PFCB, and lots more!
Market Sentiment: History 101

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


******************************************************************
MARKET WRAP  (view in courier font for table alignment)
******************************************************************
        WE 8-30          WE 8-23          WE 8-16          WE 8-09
DOW     8663.50 -209.46  8872.96 + 94.90  8778.06 + 32.61  +432.32
Nasdaq  1315.06 - 65.51  1380.57 + 19.56  1361.01 + 54.89  + 58.20
S&P-100  460.80 - 13.70   474.50 +  6.06   468.44 +  9.62  + 24.77
S&P-500  916.08 - 24.78   940.86 + 12.09   928.77 + 20.13  + 44.40
W5000   8654.04 -222.85  8876.89 +106.61  8770.28 +198.41  +385.31
RUT      390.96 -  9.17   400.13 +  4.16   395.97 +  7.52  + 12.00
TRAN    2265.63 -128.69  2394.32 + 54.92  2339.40 +  7.52  +149.62  
VIX       35.80 +  2.99    32.81 -  0.01    32.82 -  6.54  -  6.03
VXN       54.98 +  7.36    47.62 -  3.03    50.65 -  8.05  -  6.74
TRIN       1.20             2.87             1.52             0.90
Put/Call   0.84             0.80             0.51             0.69
******************************************************************

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

Laboring Emotions

The Dow traded in seesaw fashion in today's session, as the index 
traveled upwards in the morning, but sold off in the afternoon 
closing down -7.49 at 8663.50.  The Nasdaq lost -20.92 to finish 
the week at 1314.85.  NYSE advancers beat decliners 1480 to 1219, 
while Nasdaq gainers lagged losers 1456 to 1690.  Volume on both 
exchanges was anemic with only 1.07 billion shares exchanging 
hands.

Starting out on a lighter note, baseball was saved from a strike 
today, as players and owners were able to come to an agreement on 
the heels of an all night negotiating session.  Who ever doubted 
Yogi Berra when he said, "it ain't over, till it's over"?  

Phillips Petroluem and Conoco have been approved for a merger by 
the FTC, and will begin trading on the NYSE September 3rd as 
Conoco-Phillips (NYSE:COP).  The new company is now the 3rd 
largest integrated oil and gas company in the Untied States 
behind ExxonMobil (NYSE:XOM) and CheveronTexaco (NYSE:CVX).  The 
merger totals 15.2 billion dollars and gives COP a market cap of 
35 billion dollars with 75 billion in assets.  

In other news, the week was marked by tech weakness as the 
Semiconductor index ($SOX.X) faltered 1.4 percent and the Goldman 
Sachs Hardware Index ($GHS.X) slumped 2.3%.  The declines were 
due to lackluster reports earlier in the week by Sun Microsystems 
(Nasdaq:SUNW) and Novellus (Nasdaq:NVLS).  Weakness in IT 
spending has caused both companies to make gloomy comments about 
their outlook for 2002 and 2003.  Demand for IT remains weak, as 
the economy is yet to show bravado in this year's bear market. 

The debacle du jour continues to be CitiGroup (NYSE:C), which is 
under investigation for allocating hot IPO shares to telecom 
executives as business perks.  Also under scrutiny, former 
WorldCom CEO Bernie Ebbers made $11 million dollars on initial 
public offerings from Solomon Smith Barney.  Such practice was 
said to be common on Wall Street for wealthy institutions and 
customers. 

In economic news today, the Chicago PMI increased to 54.9 from 
51.5.  The turn from last months decline is said to indicate that 
manufacturing conditions are improving with gains posting for six 
consecutive months.  However, the PMI also suggests that Midwest 
manufacturing is very sluggish, and reflects higher costs 
associated with steel tariffs and punitive tariffs on Canadian 
softwood exports.  On a positive note, the weakening dollar has 
helped manufacturers to gain revenue from exporting.  

Personal income for July was unchanged, though disposable (after 
tax) personal income grew by 0.2%.  The report is slightly 
disappointing as there has been no growth in aggregate personal 
income.  Also, the report indicated a drop in personal savings as 
consumers rushed to take advantage of 0% financing for 
automobiles and discounts in other durable goods.  

The University of Michigan Consumer Sentiment Index fell during 
August, coming in at 87.6 from the previous 87.9.  Deteriorating 
consumer spending raised eyebrows with analysts, as the report 
indicated growing concerns of economic recovery.  However, 
spending did increase on big-ticket items such as automobiles and 
homes, but again, can be attributed to low interest rates.  A 
lack of consumer spending could cause businesses to maintain cost 
cutting attitudes, and could possibly hinder further growth in 
the near-term employment market.  

Overall the economy continues to look weak, but could be making 
slow progress.  The GDP numbers this week provided some economic 
solace, as the report indicated lower inventories.  Gradual 
erosion of inventories could trigger further manufacturing.  

Despite current disappointing economic reports, the broader 
economy could begin to recover in the spring of next year.  The 
problem is that the current data is inconclusive, and investors 
seem to still be weary of putting down large bets at this time.  

Of concern, oil remains at very high levels and could hinder 
economic recovery with increased costs to manufacturers and 
consumers.  The "war premium" on oil is figured to be roughly 
$6.00 per barrel, as supply issues continue to worry investors.  
From a Mercantilist perspective, higher oil prices bleed revenue 
from this nation and go into foreign oil producer's pockets.  If 
prices increase at the pump, purchasing power of consumers could 
be further abated, causing a slower revitalization of the 
American financial situation.  

In the near-term, it would seem that the markets have nothing 
outstanding to cause a sustained rally.  The current economic 
numbers do not provide the necessary foundation for bulls to 
start buying with fervor.  The Dow recently gave a triple bottom 
sell signal on the P&F chart at 8,750.  This would explain the 
Dow's recent inability to move above resistance.  Viewing the 60-
minute chart From July 18th, the most recent ascending trend was 
broken when the Dow stumbled as the index attempted to trade 
above 9,000.  8,750 served as resistance in today's trading where 
the Dow failed right on queue.      

Chart of: Dow Jones Industrial Average: 60 Minute. 




Chart of: Nasdaq Composite, Daily.  




The Nasdaq has also recently found more limitation, as the tech 
arena continues to weaken.  The index has not been able to break 
out of the descending channel, as displayed above.  Additionally, 
the Composite has fallen below the 50-dma again, alluding to 
technical weakness that bulls would rather not see.  Also, as 
Jeff Bailey pointed out in today's intraday update
http://www.PremierInvestor.net/markets/intradayupdates/083002_1.asp
the Nasdaq 100 (not shown) just reversed lower to "bull 
correction" on the P&F chart, indicating that internal weakening 
is taking place.  Bulls will begin measuring downside risk at 
these levels, and could potentially start thinning the herd of 
weaker candidates.  

Treasuries once again witnessed buying as yields dropped on the 
30-year, 10-year, and 5-year notes.  The 30-year closed at 4.937% 
today.  As the markets start to shake with uncertainty, investors 
begin to flee equities, running to hide in the safety of 
treasuries.   Increased buying in Treasuries brings to mind the 
cliché: "the return of your principal is better than the return 
on your principal". 

Although Tuesday could see some post holiday buying, the broader 
state of affairs still remains gloomy.  It would not be out of 
the question to see further declines in the market next week.  
Further, if companies begin warning once again, the approaching 
earnings season could pass by like a lead balloon.  

Next week presents several economic reports including: Auto 
Sales, Truck Sales, Construction Spending, Initial Claims, 
Productivity, Factory Orders, Hourly Earnings, Nonfarm Payrolls, 
and the Unemployment Rate.  The market would desperately like to 
see improvement in the employment reports to indicate some type 
of economic bandaging.  Poor economic data could further damage 
the current wounded market 

With September 11th approaching in six trading days, investors 
could be very jumpy.  Thus, volatility could be the name of the 
game. After 9/11 passes us by, the markets could look towards a 
rally before earnings season begins, assuming our economic data 
does not worsen.  Volume still remains feeble, and could cause 
drastic swings with little cash backing the moves.  Hopefully 
with the summer coming to a close, traders will return to their 
desks and provide liquidity to the market once again.
 
I would like to take a moment and talk about our play list.  As 
you will notice, we are heavily weighted to the short side.  The 
PI team has discussed this extensively over the last week, as we 
dislike having such stringent directional exposure.  However, we 
have decided that the play list reflects our market outlook given 
the current state of affairs.  Its not that we don't think the 
market can't rally, its just that there are no real reasons 
presenting themselves that would make us want to take on the risk 
of being overly long.  As we enter the historically bearish month 
of September and approach warning season and earnings, we feel 
that the market could still produce negative reactions.  The 
market can sometimes be irrational, and we have not ruled out a 
possible reversal, which could feasibly stop us out of almost our 
entire portfolio.  We would hate to see such a thing happen, but 
when we review the current marketplace, there seems to be too 
much risk for overly eager bulls and short-term traders.  
Scanning thousands of charts each week, the PI team attempts to 
find plays which could yield accommodative risk for investors.  
Our strategy is to help implement sound money management 
practices for traders.  After all, the best traders in the world 
are not "right" all the time; they simply have incredible money 
management skills.  These "super traders" consider supervising 
risk one of the most fundamental elements of their trading 
toolbox.  With this in mind, the PI team attempts to never let a 
play take more than a 10% loss.  

In our current play list, you will notice that we have lowered 
our stops on the Net Bulls plays: Qlogic (Nasdaq:QLGC), Maxim 
(Nasdaq:MXIM), and SBC Communications (NYSE:SBC).  At the same 
time we left our stops loose on all Active Trader Non-Tech 
shorts.  This action is slightly contrarian to our typical 
efforts to let our winners run.  

Well, let me re-phase that. 

The three Net Bulls plays are all currently winners; we are 
simply "challenging" them with tight stops.  If the stocks 
continue to fall, then they will certainly run.  Nevertheless, if 
the equities begin to rally, they will be quickly stopped out for 
reasonable gains.  Our reasoning is that this is a very tricky 
market and trend direction is not overly apparent.  Volatile 
swings can play havoc on a portfolio.  Thus, for the time being, 
we are going to challenge winning trades with tight stops, 
attempting to protect gains.  More aggressive traders could 
ignore our tighter stop loss points.  However, if a sentiment-
driven rally appears with a herd attempt to "buy the bottom", one 
could potentially take some very large losses.  Our motivation 
then, is to help investors achieve gains, while minimizing the 
risk of letting winners turn into losers.  As a result, after 
many discussions this week, we have decided that in the current 
volatile market, helping investors make small gains is better 
than trying to bolster our performance assessment.

This is a market of indecision as traders, investors, and 
economists wait for more pieces of the economic puzzle to appear.  
It is true that the market is at very low levels and buying seems 
to be an incredibly enticing allure.  However, until the market 
shows more of its hand, bullish risk is just that: risk.  If one 
is to invest long term at these levels, it's important to 
evaluate each position and what type of downside risk each 
portfolio will allow.  Attempting to "call a bottom" is a 
dangerous business and has more to do with money management than 
being "right".  After all, even the best traders are wrong once 
in a while.  The problem with being wrong is that if strict money 
management plans are not adhered to, the trader could feasibly 
let a small loss turn into a GIGANTIC trouncing.  If such a thing 
happens, one could then begin to trade with fear and have trouble 
making clear, insightful decisions.  Trading with fear must be 
avoided at all costs.  The only way to ensure that we have no 
fear is to institute quantifiable money management plans.  As 
cognitive traders we are subject to our emotions; we are ruled by 
fear and greed.  Our goal is to eliminate emotions, unearth hard 
research and have a plan before the trade is ever entered.  

True investors trade to win, forging forward in bull and bear 
markets, learning from mistakes.  To quote the author H. Jackson 
Brown: "In the confrontation between the stream and the rock, the 
stream always wins - not through strength but by perseverance."  
     
Mark Whistler	
Editor

Subscribers, what are your feelings about the current market?  Is 
there a difference between what your emotions currently tell you 
and what your technical analysis and research indicate?

Responses will be posted anonymously in Wednesday's wrap.

mwhistlerPremierInvestor.net



=========================
Play-of-the-Day (BEARISH)
=========================
(( new tech short play ))

Symantec Corp. - SYMC - close: 28.55 change: -2.00 stop: *text*

Company Description:
Symantec, the world leader in Internet security technology, 
provides a broad range of content and network security software 
and appliance solutions to individuals, enterprises and service 
providers. The company is a leading provider of client, gateway 
and server security solutions for virus protection, firewall and 
virtual private network, vulnerability management, intrusion 
detection, Internet content and e-mail filtering, remote 
management technologies and security services to enterprises and 
service providers around the world. (source: company press 
release)

Why we like it:
Computer security stocks have had a rough go at it over the past 
several months.  The prospect of increased spending in the post 
9/11 climate has given way to the harsh reality of a tepid IT 
market and falling revenues.  CHKP and ISSX have both fallen more 
than 50% from their 2002 highs, and SYMC isn't far behind.  The 
stock spent the last three months bouncing around in a 
directionless fashion above the $29-$30 area.  Today's blatant 
violation of that support region has created what we believe to 
be a good shorting opportunity.  First and foremost, this 
technical development could lead to profit-taking by investors 
who are still holding the stock from the September lows near $16.  
The bears will also see this breakdown as an opportunity to jump 
aboard.  

While SMYC is technically oversold (as gauged by the daily 
stochastics), the downtrending MACD and double-bottom point-and-
figure sell signal are indicating that more downside remains.  A 
scan of recent news items is somewhat devoid of any market-moving 
events, save for an upgrade from Legg Mason on Wednesday.  The 
fact that shares did not rally on this news is a sign that the 
bears are firmly in control.  By entering this short play on a 
move below $28.50, we're looking to ride the stock down to the 
$22.00 region.  Shorter-term traders may want to target a decline 
to psychological support at $25.00.  Note, however, that this 
play will not be activated if SYMC gaps lower and opens under 
$28.00.  If triggered, we'll use a stop-loss at $30.64, a penny 
above Thursday's high.  More conservative traders could use a 
stop slightly above psychological resistance at $30.00.

Chart of: SYMC, Daily.



Picked on August xxth at $xx.xx <-- see text 
Results since picked:     +0.00
Earnings Date          07/17/02 (confirmed)






==================================================================
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: 24.63 change: -0.07

WHAT TO WATCH: Despite a 4.2% pullback in the BTK.X biotech index 
today, shares of ADRX only suffered a seven-cent loss.  This 
relative strength may be attributable to Wednesday's FDA approval 
of the company's arthritis drug.  Technically, ADRX stands ready 
to stage a breakout if the BTK rebounds from its 50-dma next 
week.  A move above the relative high of $26.45 will put the 
stock in a "fast-move region" that could lead to a rapid 
retracement of the late-June selloff.  The daily stochastics 
(5,3,3) are beginning to curl higher from the middle-range, 
indicating ADRX has more upside potential.  Bulls can also be 
encouraged by the triple-top buy signal on the p-n-f chart.




---

Agilent Technologies - A - close: 13.43 change: -0.77

WHAT TO WATCH: The bears pounced on A this week after the stock 
broke support at $15.00.  Shares continued lower today by 5.4% 
and closed at all-time lows.  While the bulls will argue that the 
stock is already oversold, the recent strong volume and bearish 
MACD are hinting towards a continued decline.  This outlook is 
bolstered by the triple-bottom sell signal on the point-and-
figure chart.  Aggressive traders can target short entries on a 
move under today's low of $13.33.  With no underlying levels of 
support, it appears likely that shares will eventually test the 
psychologically-important $10.00 level.




---  

ConocoPhillips - COP - close: 52.58 change: +1.03

WHAT TO WATCH: The merger between Conoco Inc. and Phillips 
Petroleum was approved by the Federal Trade Commission on Friday.  
This clears the way for the combined company to begin trading 
under the symbol "COP" on Monday.  A glance at the chart for P 
shows that the stock is poised to break higher if a post-merger 
rally takes hold.  Shares have traded sideways over the past 
three weeks and just closed above the 50-dma.  Long entries could 
be evaluated on a move above today's high.  On a sector-related 
note, continued upward movement in the price of crude oil (cl02v) 
could fuel some rapid gains in COP.


 

---

Engelhard Corp. - EC - close: 26.16 change: +0.61

WHAT TO WATCH: Shares of this materials science company have been 
trading in a narrow range for nearly three weeks.  Today's 
action, however, suggests that the bulls may be gaining control.  
Shares handily outpaced the Dow Jones with a 2.3% gain and 
reached a relative high of $26.47.  Interestingly, this level 
coincides with the 38% retracement from May highs to July lows.  
Uptrending action in the MACD and daily stochastics suggests that 
a breakout could be just around the corner.  A move above $26.57 
might pave the way for a rally to the 200-dma at $28.34.  More 
aggressive traders could target the July highs at $29.00.




--- 

J.P. Morgan - JPM - close: 26.40 change: -0.20

WHAT TO WATCH: A glance at JPM's daily bar chart shows that the 
stock has recently traded sideways, consolidating in a narrow 
range between $25.40-$27.40.  Switching to a daily chart of the 
Dow, one can see that JPM has displayed relative strength over 
the past week.  This is a sign that a breakout may be on the 
horizon.  A rising MACD and double-top point-and-figure buy 
signal bolster the bulls' case.  Long entries can be evaluated on 
a move above the relative high of $27.40, which lies nine cents 
above the 50-dma.  Once this area is cleared, there are no levels 
of immediate overhead resistance to prevent a retracement of the 
July sell-off.  We'd be looking for a rally up to the $30-$31 
region, just under bearish p-n-f resistance.




--- 

Microsoft Corp - MSFT - close: 49.08 change: -1.50

WHAT TO WATCH: Among the many stocks that traded Inside Days 
during Friday's choppy session was MSFT.  Shares of the software 
giant closed far below the 50-dma, which lies just above 
psychological resistance at $50.00.  Although the daily 
stochastics have already reached oversold levels, the bearish 
MACD suggests that MSFT may continue its week-long downtrend.  
Bears can also be heartened by the recent reversal on the p-n-f 
chart.  Traders can watch for a move under today's low ($49.00), 
or the relative low of $48.52.  Shares could easily retest the 
August lows near $44 if the NASDAQ keeps trending lower.  




--- 

National Semiconductor - NSM - close: 15.99 change: -0.35

WHAT TO WATCH: If you've been following along with current 
Premier Investor short plays QLGC and MXIM, you're probably 
already aware that NVLS disappointed Wall Street with its mid-
quarter update last night.  This followed negative comments 
earlier in the week from INTC that indicated continued weakness 
in IT spending.  With earnings warning season beginning next 
week, who knows what other semiconductor landmines might be 
awaiting the bulls.  One stock that may be headed for a tumble is 
NSM.  Shares are trading at multi-year lows and are now in danger 
of breaking below near-term support at $15.50.  Aggressive 
traders can watch for a move below the relative low of $15.44, 
while those seeking more bearish confirmation can wait for a 
violation of psychological support at $15.00.  Due to the 
oversold nature of the daily stochastics, we'd consider this a 
high-risk/high-reward trade.  And just how much reward could NSM 
provide the bears with?  We believe a move to the $10.00 region 
would not be out of the question if the SOX.X broke below its 
August lows.  Shorter-term traders could look for a decline to 
the $12.00 area, which briefly provided support back in 1999.




---

P.F. Chang's - PFCB - close: 31.64 change: +0.49

WHAT TO WATCH: PFCB recently pulled back from a relative high of 
$34.49.  A brief jaunt under the converging 50-day and 200-day 
moving averages proved to be a tasty entry point for the bulls.  
Shares have moved higher over the past two sessions, displaying 
relative strength versus the broader market.  With volume rising 
and the daily stochastics (5,3,3) just beginning to emerge from 
the oversold region, PFCB looks well-positioned to test its 
recent highs.  Short-term traders could target a move to this 
region, using a break above today's high ($32.15) as a possible 
action point.




--- 

Southern Co. - SO - close: 28.96 change: +0.56

WHAT TO WATCH: Maybe SO's aggressive ad campaign on CNBC is 
helping.  The stock rebounded smartly from its July lows and has 
spent the past month consolidating in a tight range under the 
$29.00 resistance level.  SO showed impressive relative strength 
today when it gained nearly 2% and pegged a 52-week high of 
$29.24.  Despite the fact that many traders took Friday off, the 
volume reading was the highest in two weeks.  Although 
psychological resistance at $30.00 poses a possible obstacle for 
the bulls, the double-top p-n-f breakout and ascending 
oscillators indicate that this level will be successfully dealt 
with.  Long entries can be gauged on a move above today's high.





------------
RADAR SCREEN
------------

AT - BellSouth's earnings warning on Thursday provided another 
example of why telecom is still in the toilet.  AT remains stuck 
in a multi-month downtrend and has fallen under its 50-dma.  A 
move below today's low ($41.35) could lead to a retest of the 
August low at $37.50.  Possible congestion lies at the $40 level.

HRB - A powerful rebound from the July lows sent HRB to a 52-week 
high of $53.50.  The past week has seen shares retrace some of 
these gains on stronger-than-average volume.  The MACD has just 
crossed over from high levels, indicating a further decline is 
likely.  A continued sell-off could take HRB to the 200-dma at 
$44.91.  Note, however, that the 50-dma at $47.28 may act as 
support.

INVN - This stock has been climbing steadily over the past month, 
seemingly oblivious of what the broader market is doing.  Shares 
have just moved above bearish p-n-f resistance.  Aggressive bulls 
can target entries on move above today's high ($34.65), with an 
initial profit-target near the $38.00 level. 

CHIR - Shares of this biotech company have rolled over from the 
200-dma ($40.50), which coincides with previous bearish 
resistance on the p-n-f chart.  Further weakness in the BTK.X 
could drag CHIR down to its 50-dma at $34.26.  Check out that 
bearish MACD crossover!

PMCS - Another weak chip stock.  High-risk entries can be 
targeted on a break under the multi-year low of $6.98.  
Acceptable risk/reward ratio could be created by using a stop 
just above Thursday's high of $7.58, initially targeting the 
$5.00 region.


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

History 101

by Steven Price

This morning started out with mixed economic data.  The 
University of Michigan Consumer Sentiment Index came in under 
expectations, adding to the evidence that consumers are still 
worrying about the economy, as reflected similarly in Tuesday's 
Consumer Confidence report. On the positive side, personal 
spending increased more than expected, at 1%, as durable goods 
orders carried the day. This was the biggest jump in 9 months. 
The downside to that report is that personal income showed no 
increase, versus an expectation of an increase of 0.2%. We all know 
what happens when spending goes up, but income does not.

Alan Greenspan spoke this morning at the Kansas City Fed's annual 
economic conference in Jackson Hole, Wyoming.  He basically said that 
the demand for high tech products, while great, was overcome by even 
greater increases in supply.  His assessment of the bursting of the 
high-tech bubble was, "In light of the burgeoning supply, the pace of 
increased demand for the newer technologies, though rapid, fell short 
of that needed to sustain the elevated real rate of return for the 
whole of the high-tech capital stock. Returns on the securities of 
high-tech firms ultimately collapsed, as did capital investment. 
Similar, though less severe, adjustments were occurring in many 
industries across our economy."  Or, put more simply, we got ahead of 
ourselves.  

Greenspan gave no real indication of what the FOMC would do with 
interest rates on September 24, but also did nothing to contradict 
statements made by several Fed governors that the next interest rate 
move was more likely to be tightening than easing, and that current 
rates were sufficient to spur economic growth.

The Nasdaq gave back most of yesterday's gains, after warnings from 
Novellus and Sun Microsystems underscored what we already knew - that 
IT spending is still in decline.  The Dow actually made an effort, at 
one point trading up in triple digits, before giving up 7.49 to finish 
at 8663.50.  This started out looking like the beginning of the annual 
Labor Day equity shopping spree, and ended up looking like a Labor Day 
1/2 off sale.  The opening Tuesday after labor Day has seen the Dow up 
for the last six years.  This does not mean that it stays up during the 
month of September, which has traditionally been its worst time of the 
year.  

The Semiconductor Index (SOX.X) managed to hold itself above the 300 
level, in spite of the tech warnings.  While I can't explain exactly 
why this is, it may have something to do with one of the lightest 
volume days of the year, with the NYSE trading only 1.07 billion shares 
and the Nasdaq only 1.08.

The Dow finished its fifth straight monthly decline for the first time 
since 1981 and with September traditionally poor, we will most likely 
see 6 months in a row.  The only thing that may save it is a rally 
following September 11th, if there are no incidents.  The feeling is 
that many investors are still on the sidelines, waiting for the 
anniversary to pass.  If it passes without incident, then they will 
jump back in.  I'm not sure how sound this theory is, since there are 
many other reasons for the stock market swoon.  Unemployment and a VERY 
slow growing economy are two that come to mind.

If history is going to repeat itself once again, look for a rally on 
Monday, followed by a pullback into September.  Because this year is 
different than any other, based on what happened a year ago, I will not 
be surprised if things do not go exactly as expected.  Six straight 
years of history, however, are hard to argue with.  If you must go 
long, keep a few puts for protection, you will most likely need them in 
the near future.


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

Market Averages

DJIA ($INDU)

52-week High: 10679
52-week Low :  7702
Current     :  8663

Moving Averages:
(Simple)

 10-dma: 8851
 50-dma: 8718
200-dma: 9701

S&P 500 ($SPX)

52-week High: 1226
52-week Low :  797
Current     :  916

Moving Averages:
(Simple)

 10-dma:  937
 50-dma:  917
200-dma: 1065

Nasdaq-100 ($NDX)

52-week High: 1782
52-week Low :  892
Current     :  942

Moving Averages:
(Simple)

 10-dma:  996
 50-dma:  977
200-dma: 1319


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


Dow Jones Home Construction Index (DJUSHB): This group has been flying 
in the with mortgage rates low and mortgage applications at record 
highs.  The party seems to have taken a break, however.  Purchasing 
applications were down 7% this week and a report surfaced that industry 
insiders had dumped over $250 million worth of stock more than they had 
purchased during the second quarter.  Combine these facts with the 
summer season coming to a close, and we may be seeing a slowdown 
overall.  Talk of rates increasing in the future, rather than 
decreasing, has also sent the speculative buyers to the sidelines.   
The Index dropped below its 200-dma, 50-dma and 10-dma, which had been 
converging, in the last two days. 

52-week High: 397
52-week Low : 183
Current     : 322

Moving Averages:
(Simple)

 10-dma: 333
 50-dma: 333
200-dma: 334


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

Market Volatility

It's interesting to see the VIX stay fairly high heading into a long 
weekend.  While this isn't unexpected, it does mean there are an awful 
lot of traders willing to trade time decay losses for the chance at a 
big move next week. The Dow falling back into negative territory by the 
end of the day seems to have reminded everyone of just how negative a 
month September can be.

CBOE Market Volatility Index (VIX) = 35.80 -0.52
Nasdaq-100 Volatility Index  (VXN) = 54.98 -0.07

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

          Put/Call Ratio  Call Volume   Put Volume

Total          0.82        325,617       266,126
Equity Only    0.63        265,220       166,099
OEX            0.65         16,033        10,352
QQQ            1.01         30,274        30,489

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

Bullish Percent Data

           Current   Change   Status
NYSE          44      - 5     Bull Confirmed
NASDAQ-100    52      + 0     Bull Correction
DOW           57      - 3     Bull Confirmed
S&P 500       58      + 0     Bull Alert
S&P 100       56      - 1     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  1.46
10-Day Arms Index  1.31
21-Day Arms Index  1.25
55-Day Arms Index  1.32

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 they do, they can signal significant market turning 
points.

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

Market Internals

        Advancers     Decliners
NYSE       1481          1219
NASDAQ     1457          1691

        New Highs      New Lows
NYSE         25              22
NASDAQ       26              65

        Volume (in millions)
NYSE     1,076
NASDAQ   1,079

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

Commitments Of Traders Report: 08/27/02

Weekly COT report discloses positions held by small specs
and commercial traders of index futures contracts at the 
Chicago Mercantile Exchange and Chicago Board of Trade. COT data 
can be found at www.cftc.gov.

Small specs are the general trading public with commercials being 
financial institutions. Commercials are historically on the 
correct side of future trend changes while small specs tend 
to be wrong.  

S&P 500

Commercials added 3,000 contracts to their long positions, while 
small traders reduced longs by almost 4,000.  Small traders also 
added a similar amount to the short side.


Commercials   Long      Short      Net     % Of OI 
08/06/02      431,590   478,879   (47,289)   (5.2%)
08/13/02      427,618   475,536   (47,918)   (5.3%)
08/20/02      422,100   469,556   (47,456)   (5.3%)
08/27/02      425,982   469,087   (43,105)   (4.8%)

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
08/06/02      159,561    67,434    92,127     40.5%
08/13/02      155,040    66,546    88,494     39.9%
08/20/02      156,974    69,071    87,903     38.9%
08/27/02      153,152    72,408    80,744     35.8%

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 their long contracts by 3,500 contracts, 
and added only 1,200 to the short side.  Small traders, on the 
other hand, reduced long contracts by 1,200, while leaving shorts 
relatively unchanged.


Commercials   Long      Short      Net     % of OI 
08/06/02       41,014     50,025    (9,011) ( 9.9%)
08/13/02       42,303     50,354    (8,051) ( 8.7%)
08/20/02       41,876     49,461    (7,585) ( 8.3%)
08/27/02       45,354     50,634    (5,280) ( 5.5%)

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
08/06/02       11,547     8,782     2,765    13.6%
08/13/02       12,797     8,933     3,864    17.8%
08/20/02       11,321     7,980     3,341    17.3%
08/27/02       10,156     8,040     2,116    11.6%

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 reduced their shorts by 1,000 contracts, while 
leaving long positions approximately the same.  Small traders 
increased both positions slightly. 


Commercials   Long      Short      Net     % of OI
08/06/02       23,491    14,290    9,201      24.4%
08/13/02       22,837    13,833    9,004      24.6%
08/20/02       21,160    15,349    5,811      15.9%
08/27/02       21,023    14,328    6,695      18.9%

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
08/06/02        7,981     9,258    (1,277)   ( 7.4%)
08/13/02        5,050     8,349    (3,299)   (24.6%)
08/20/02        6,216     8,163    (1,947)   (13.5%)
08/27/02        6,825     8,438    (1,613)   (10.6%)

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

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

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

*****************************************************************
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Copyright © 2002  PremierInvestor.net. and
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Do not duplicate or redistribute in any form.
PremierInvestor.net Newsletter          Weekend Edition 08-30-2002
                                                    section 2 of 3
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 Bearish Plays:     SYMC
  Bearish Play Updates:  MXIM, QLGC, SBC

Stock Bottom / Active Trader
  New Bullish Plays:     CLX
  Bearish Play Updates:  C, CB, COX, CTX, PSS, RKY, RTH
  Closed Bearish Plays:  CL

High Risk/Reward
  Bullish Play Updates:  SFA
                        


==================================================================
Net Bulls (NB) Tech Stock section
==================================================================

============
NB New Plays
============

  -----------------
  New Bearish Plays
  -----------------

Symantec Corp. - SYMC - close: 28.55 change: -2.00 stop: *text*

Company Description:
Symantec, the world leader in Internet security technology, 
provides a broad range of content and network security software 
and appliance solutions to individuals, enterprises and service 
providers. The company is a leading provider of client, gateway 
and server security solutions for virus protection, firewall and 
virtual private network, vulnerability management, intrusion 
detection, Internet content and e-mail filtering, remote 
management technologies and security services to enterprises and 
service providers around the world. (source: company press 
release)

Why we like it:
Computer security stocks have had a rough go at it over the past 
several months.  The prospect of increased spending in the post 
9/11 climate has given way to the harsh reality of a tepid IT 
market and falling revenues.  CHKP and ISSX have both fallen more 
than 50% from their 2002 highs, and SYMC isn't far behind.  The 
stock spent the last three months bouncing around in a 
directionless fashion above the $29-$30 area.  Today's blatant 
violation of that support region has created what we believe to 
be a good shorting opportunity.  First and foremost, this 
technical development could lead to profit-taking by investors 
who are still holding the stock from the September lows near $16.  
The bears will also see this breakdown as an opportunity to jump 
aboard.  

While SMYC is technically oversold (as gauged by the daily 
stochastics), the downtrending MACD and double-bottom point-and-
figure sell signal are indicating that more downside remains.  A 
scan of recent news items is somewhat devoid of any market-moving 
events, save for an upgrade from Legg Mason on Wednesday.  The 
fact that shares did not rally on this news is a sign that the 
bears are firmly in control.  By entering this short play on a 
move below $28.50, we're looking to ride the stock down to the 
$22.00 region.  Shorter-term traders may want to target a decline 
to psychological support at $25.00.  Note, however, that this 
play will not be activated if SYMC gaps lower and opens under 
$28.00.  If triggered, we'll use a stop-loss at $30.64, a penny 
above Thursday's high.  More conservative traders could use a 
stop slightly above psychological resistance at $30.00.

Chart of: SYMC, Daily.



Picked on August xxth at $xx.xx <-- see text 
Results since picked:     +0.00
Earnings Date          07/17/02 (confirmed)





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

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

Maxim Integrated - MXIM - cls: 31.60 chg: -0.52 stop: 33.01 *new*

As we had expected, last night's earnings warning from NVLS had 
the chip sector trading lower on Friday morning.  The fact that 
the SOX.X did not fall under yesterday's low indicates that the 
bad news may have already been factored in.  The lack of a 
wholesale sell-off may also be attributable to Friday's lack of 
volume.  With many of the major institutional traders already on 
vacation, it's doubtful that many large bets were placed.  MXIM 
roughly moved in tandem with the semiconductor index throughout 
the session and traded an Inside Day.  Because a break above this 
consolidation pattern would be a bullish development, we're going 
to place our stop slightly above today's high (and Wednesday's 
high) at $33.01.  Next week we'll be watching for the SOX.X to 
sink towards the August lows near 283.  Such a decline would 
probably have MXIM trading near our exit target at $30.10.

Picked on August 23rd at  $35.38
Results since picked:      +3.78
Earnings Date           08/06/02 (confirmed)




---

SBC Comm. - SBC - cls: 24.74 chg: -1.06 stop: 26.51 *new*

One of the best things about shorting telecom stocks is the 
reliable flow of negative sector news.  It seems that nary a week 
goes by that doesn't see fresh evidence of fundamental weakness 
in the group.  Today's bearish news came courtesy of BellSouth.  
The nation's third-largest local telephone company cut its 2002 
guidance for the second time, blaming overall economic weakness 
and restructuring charges.  SBC gapped lower in sympathy with BLS 
and quickly tagged an intraday low of $23.99.  Shares managed to 
pare some of these losses by the closing bell but still finished 
in the red by more than 4%.  Technically, SBC continues to look 
weak.  Today's action produced a double-bottom breakdown on the 
p-n-f chart, and the MACD is descending from below the baseline.  
At this time we're going to set an official profit-target of 
$22.26, just above the July lows.  Also note that we've tightened 
our stop to $26.51, just above Wednesday's high.  More 
conservative traders could use a stop just above psychological 
resistance at $25.00.

Picked on August 21st at $27.49 
Results since picked:     +2.75
Earnings Date          07/23/02 (confirmed)

 

--- 

Qlogic - QLGC - cls: 33.55 chg: -1.75 stop: 35.41 *new*

Given the double-whammy of bearish news from SUNW and NVLS last 
night, it wasn't surprising to see the semiconductor index trade 
lower on Friday morning.  In an encouraging development for this 
play, shares underperformed the SOX.X with a hefty 4.9% loss.  
And unlike the index, QLGC actually fell below yesterday's low.  
This relative weakness suggests that the stock may experience 
more selling next week.  Our negative outlook is bolstered by the 
MACD, which is on the brink of a bearish crossover.  The fact 
that shares closed near the worst levels of the day is another 
sign that QLGC may experience further weakness on Tuesday.  
Aggressive traders can target new entries on a move below today's 
low ($33.50), but keep in mind that we'll exit this play if 
shares trade at or below $30.51.  The daily stochastics (5,3,3) 
also merit some attention.  The oscillator is pinned at oversold 
levels, indicating a possible relief rally could emerge at any 
time.  If this does occur, our new stop at $35.41 (just above 
yesterday's high) should protect a gain of 6.4%.  Premier 
Investor is currently up 11.3% on this play.

Picked on August 23rd at $37.85 
Results since picked:     +4.30
Earnings Date          07/18/02 (confirmed)





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

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

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

Clorox Co. - CLX - cls: 43.06 chg: +0.51 stop: *text*

Company Description:
The Clorox Company is a $4.1 billion multinational manufacturer 
and marketer of household products and products for institutional 
markets.(source: company press release)

Why We Like It:
After a tough year, Clorox recently announced that the company 
was on the way to a turnaround with sales growing 4%.  The 
company then unveiled a plan to cut costs and introduce new 
products.  So far, the market seems to have accepted the 
statements by Chairman G. Craig Sullivan, as the stock has been 
able to rally above the 200-dma.  The stock traded at a low of 
31.92 on July 24th and has since staged a 35% rebound.  Clorox 
showed impressive relative strength today, as the company was 
able to post a 1.19 percent gain while the Dow closed down -7.49 
points.  Clorox found support in the $42.00 region, which is both 
horizontal and ascending support.  Further, the 200-dma at $42.06 
could provide additional encouragement as institutional investors 
look towards the benchmark moving average for guidance.  

The newsletter's strategy for CLX is fairly straightforward.  We 
will put a trigger above the near-term relative high of $43.48.  
The newsletter's action point is at $43.51, three cents above the 
high.  If triggered, our stop will be below today's low and the 
200-dma at 41.99, allowing the stock a slight bit of room to 
wiggle if bears re-surface.  Initially our profit target will be 
at $46.99, just below technical and psychological support.  If 
the stock does begin to rise, bulls can possibly count on 
congestion resistance through $45.50.  This play could move 
fairly slowly, as the stock haggles with the daily Stochastics, 
which are in the overbought region.       

For Annotated Chart: Click Here
Chart of: CLX, Daily.



Picked on August xxth at $ xx.xx  <-- See text
Results since picked:      +0.00
Earnings Date           08/07/02 (confirmed)
 




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

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

Citigroup Inc - C - close: 32.75 change: -0.07 stop: 35.01

Today, Congress issued a new subpoena to Citigroup attempting to 
unearth new information about how the financial powerhouse dealt 
out shares in sizzling initial public offerings to certain 
telecom executives.  Citigroup has until September 6th to comply, 
though the information may already be on its way to congress.  
This news did not have a profound impact on Citigroup's stock 
today, but does show that the company is not out of the woods 
yet.  This information coupled with a lackluster investment 
banking and IPO market has us thinking that C could still see 
selling in the future.  The stock did not rally above the 50-dma 
or the ascending trend line in today's session, which has bears 
maintaining confidence in their positions.  Because Tuesday could 
see a rally after the holiday weekend, the newsletter will not 
move the stop for C down yet.  We would like to give the stock 
continued room to wiggle if bulls decide to push C up early next 
week.  

Picked on August 26th at $33.49
Results since picked:     +0.74
Earnings Date          07/17/02 (confirmed)




---

Chubb Corporation - CB - cls: 61.89 chg: +0.47 stop: 65.01

CB traded up in today's session, driven by a broader market short 
covering before the holiday weekend.  However, Chubb did not come 
close to our stop, which has us thinking that CB is still a 
formidable short contender.  The stock's daily Stochastics are 
near the oversold region, and could help to bring technical bears 
off the fence if they dip lower.  With no exciting news surfacing 
on CB today, the company could still see selling as weary bulls 
back out of the insurance sector before the anniversary of 
September 11th. Chubb has formidable resistance in the $62.20, 
which could help prolong bulls from buying this stock.  The 
newsletter is not moving our stop at this time, allowing C space 
to squirm if a rally appears after Labor Day.  

Picked on August 28th at $62.49
Results since picked:     +0.60
Earnings Date          07/29/02 (confirmed)




---

Cox Communications - COX - cls: 25.85 chg: +0.08 stop: 27.02

With no innovative news on Cox Communications today, the bullish 
move could be attributed to short covering.  However, the lack of 
weakness has us slightly concerned, as today's sideways move has 
pushed the stock above the 50-dma.  Such a technical event could 
cause bulls to consider buying the equity.  Daily Stochastics are 
in the oversold region and could further indicate buying momentum 
if the indicator is to push higher.  We are opting to leave the 
stop at $27.02, permitting the stock to trade higher if temporary 
short covering or a post-holiday rally ensues.     

Picked on August 28th at $24.64
Results since picked:     -1.21
Earnings Date          07/31/02 (confirmed)




---

Centex Corp. - CTX - cls: 50.49 chg: +0.35 stop: *text*

CTX was not triggered in today's session.  The homebuilder traded 
one penny away from our trigger at $49.99; thus, our hypothetical 
position has not yet been prompted.  Without any noteworthy press 
budding today, the stock was part of a broader short covering in 
the market.  Bears are still encouraged as the Dow Jones U.S. 
Home Construction Index continues to trade beneath the 50-dma.  
Further, daily Stochastics for CTX have recently fallen out of 
the overbought region and could see a further decline if selling 
continues.  The newsletter will initially keep its stop at $53.01 
if the position is activated.       


Picked on August xxth at $xx.xx <-- see text 
Results since picked: +0.00
Earnings Date 07/17/02 (confirmed)




---

Payless Shoesource - PSS - close: 52.90 change: +0.13 stop: 55.68

The University of Michigan Consumer Sentiment Index slipped to 
87.6 from July's reading of 88.1.  The numbers indicate that 
consumers are not ready to begin spending at a frenzied pace just 
yet.  This fact has also been pointed out recently by retailers, 
which have faced lackluster back to school sales.  Thus, the 
+0.24 percent rise in PSS today, could simply be defensive short 
covering.  The Stock continues to trade below the 200-dma; 
additionally, the daily Stochastics recently fell out of the 
overbought region.  Bears are probably still thinking that the 
overall trend is still down and do not have technical reason to 
close their positions in light of today's rally.  We will 
maintain our stop at 55.68, just above the 200-dma.        
  
Picked on August 26th at $52.99
Results since picked:     +0.09
Earnings Date          08/14/02 (confirmed)




---

Adolph Coors - RKY - cls: 60.05 chg: +1.05 stop: *text*

Our short in Adolph Coors was not triggered in today's trading, 
as the stock never traded below our entry point at $58.24.  The 
stock's move could potentially be attributed to short covering 
before the holiday weekend.  However, the stock remains below the 
200-dma, and could still see selling.  If our entry is triggered, 
the newsletter will keep its initial stop at $60.25.  

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




---

Retail Holders - RTH - close: 80.20 change: +0.20 stop: 83.56

Bolstered personal consumption numbers had the RTH trading higher 
in today's session.  However, the move could be a smoke screen 
for weakness highlighted in today's consumer confidence numbers.  
The University of Michigan Consumer Sentiment Index slipped to 
87.6 from July's reading of 88.1.  The numbers indicate that 
consumers are not ready to begin spending at a frenzied pace just 
yet.  This fact has also been pointed out recently by retailers 
who continue to mention poor back to school sales.  Our 
assessment of today's news is that the retail sector really has 
no reason to jump for joy yet.  Thus, today's move could 
potentially be attributed to short covering with Labor Day 
weekend on our toes.  The newsletter has decided not to lower the 
stop, as we do not want this play to be eliminated before 
possible weakness in the sector surfaces.          

Picked on August 26th at $80.70
Results since picked:     +0.50
Earnings Date               N/A


 


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

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

Colgate Palmolive - CL - cls: 54.55 chg: +0.90 stop: 55.01

With CL trading sideways and the technical picture looking hazy, 
we elected last night to tighten our stop-loss to $55.01.  This 
level was violated on Friday when broke through the 200-dma at 
$54.81 and spiked to an intraday high of $55.15.  Our play was 
closed for a loss of 2.6%.  Helping to push the stock higher 
today was economic data that showed a larger-than-expected 
increase in consumer spending.  This is a sign that perhaps the 
economy will not slide into a "double-dip" recession.  The CYC.X 
traded higher on the news and outperformed the Dow Jones.  As for 
CL, at this point we'd expect more rangebound trading.  The stock 
has substantial resistance at $56.00 and the oscillators are 
somewhat flat.  Traders still short may want to consider closing 
positions on a pullback to the $53.00 region.

Picked on August 26th at $53.59
Results since picked:     -1.42
Earnings Date          07/23/02 (confirmed)






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

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

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

Scientific Atlanta - SFA - close: 15.01 change: +0.79 stop: *text 

Close...Very close.  But no cigar.  In last night's write-up for 
this play we said that SFA must move above the July high of 
$15.25 before this hypothetical trade was activated.  Shares 
reached an intraday high of $15.25 this morning but then trended 
lower for the rest of the session.  SFA finished with a loss of 
1.7%, roughly mirroring the NASDAQ's pullback.  In the news 
today, a U.S. District court gave SFA a favorable ruling in a 
patent infringement case against Gemstar.  This followed a 
similar ruling by the International Trade Commission on Thursday 
evening.  The lack of a rally indicates that Wall Street may have 
anticipated this news.  Technically, we still like SFA as a long 
play if it can make its way above our trigger.  Remember that 
we'll use a stop at $13.74 if this occurs.
 
Picked on August xth at $xx.xx <- see text 
Results since picked:    +0.00
Earnings Date         07/18/02 (confirmed)
 






=================================================================
To stop receiving this PremierInvestor.net Newsletter,
send email to Contact Support
=================================================================
DISCLAIMER
=================================================================

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

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

*****************************************************************
ADVERTISING INFORMATION

For more information on advertising in PremierInvestor.net
Newsletter, or any Premier Investor Network newsletter please
contact Contact Support.

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


Copyright © 2002  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.
PremierInvestor.net Newsletter         Weekend Edition 08-30-2002
                                                   Section 3 of 3
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 three:

Market Watch for Week of September 2nd
   - Major Earnings
   - Stock Splits
   - Economic Reports

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)

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


==================================================
Market Watch for the week of September 2nd
==================================================

------------------------
Major Earnings This Week
------------------------

Symbol  Company               Date           Comment      EPS Est

------------------------- MONDAY -------------------------------

None


------------------------- TUESDAY ------------------------------

CRHCY CRH Plc                Tue, Sep 3   -----N/A-----        N/A
ROP   Roper Industries       Tue, Sep 3   After Market Close  0.55

-----------------------  WEDNESDAY -----------------------------

GLH   Gallaher Group PLC     Wed, Sep 4  Before the Bell      N/A
IPR   International Power    Wed, Sep 4  -----N/A-----        N/A
NSM   National Semiconductor Wed, Sep 4  During the Market   0.01
SIGY  Signet Group           Wed, Sep 4  Before the Bell     0.37
TKP   Technip-Coflexip       Wed, Sep 4  -----N/A-----        N/A
TI    Telecom Italia         Wed, Sep 4  -----N/A-----        N/A

------------------------- THURSDAY -----------------------------

ABS    Albertson`s            Thu, Sep 5  Before the Bell    0.54
CPB    Campbell Soup          Thu, Sep 5  Before the Bell    0.14
CHU    China Unicom Limited   Thu, Sep 5  Before the Bell     N/A
DEO    Diageo PLC             Thu, Sep 5  02:00 am ET         N/A
SZE    Suez SA                Thu, Sep 5  -----N/A-----       N/A
TTWO   Take-Two Int Software  Thu, Sep 5  Before the Bell    0.07

------------------------- FRIDAY -------------------------------

None


----------------------------------------------
Upcoming Stock Splits In The Next Two Weeks...
----------------------------------------------

Symbol  Company Name              Ratio    Payable     Executable

NBY     NBC Capital               4:3      09/09       09/10
BLUD    Immucor Inc.              3:2      09/13       09/16

--------------------------
Economic Reports This Week
--------------------------

On the heels of Labor Day, this Market Watch could serve as sonar
for investors fishing in the sea of money.   

==============================================================
                       -For-           

Monday, 09/02/02
----------------
None


Tuesday, 09/03/02
-----------------
Auto Sales (NA)         Aug  Forecast:   6.2%  Previous:     6.5%
Truck Sales (NA)        Aug  Forecast:   8.9M  Previous:     8.1M
ISM Index (DM)          Aug  Forecast:   51.8  Previous:     50.5

Wednesday, 09/04/02
-------------------
Construction Spnding(DM)Jul  Forecast:  -0.4%  Previous:    -2.2%


Thursday, 09/05/02
------------------
Initial Claims (BB)   08/31  Forecast:   395K  Previous:     403K
Productivity-Rev. (BB)   Q2  Forecast:   1.1%  Previous:     1.1%
ISM Services (DM)       Aug  Forecast:   54.0  Previous:     53.1
Factory Orders (DM)     Jul  Forecast:   4.7%  Previous:    -2.4%


Friday, 09/06/02
----------------
Nonfarm Payrolls (BB)   Aug  Forecast:    47K  Previous:       6K
Unemployment Rate (BB)  Aug  Forecast:   5.9%  Previous:     5.9%
Hourly Earnings (BB)    Aug  Forecast:   0.3%  Previous:     0.3%
Average Workweek (BB)   Aug  Forecast:   34.2  Previous:     34.0


Definitions:
DM=  During the Market
BB=  Before the Bell
AB=  After the Bell
NA=  Not Available


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

PDX     Pediatrix Medical          33.59     +0.54
ONE     Bank One                   40.95     +0.61
RGF     R&G Financial              23.58     +0.98
FSNM    First State Bancorp        24.59     +0.60
RMK     Aramark Worldwide          22.65     +0.85
MTX     Mineral Technologies       39.75     +1.06

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

ATRS    Altiris Inc.               9.94     +1.08
VNX     Veridian Corp.            19.90     +2.05
NSDA    Nassda Corp.               8.00     +1.03
--------------------------------------- 
Breakout to Upside (Stocks over $20) 
--------------------------------------- 
Ticker  Company Name               Close     Change 

MIK     Michaels Stores Inc.      46.49     +1.28
ITMN    Intermune Inc.            24.87     +1.36
BLL     Ball Corp.                49.81     +3.44
P       Phillips Petroleum        52.58     +1.03
JAH     Jardan Corp.              37.25     +1.01
CZ      Celanese                  20.34     +1.34
GB      Wilson Greatbatch         27.80     +1.33

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

EXC     Exelon Corporation         46.82     -3.19
CYT     Cytec Industries           26.60     -1.55

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

PSD     Puget Sound Energy         21.70     -0.20




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