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Daily Newsletter, Friday, 09/06/2002

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PremierInvestor.net Newsletter          Weekend Edition 09-06-2002
                                                    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:      Thank You Intel, Maybe. 
Play-of-the-Day:  Detecting a Potential Explosion in Defense
Watch List:       AMGN, BYD, LLTC, LTR, ORCL, PPL, and more!
Market Sentiment: Devil's Advocate


******************************************************************
MARKET WRAP  (view in courier font for table alignment)
******************************************************************
        WE 9-06          WE 8-30          WE 8-23          WE 8-16
DOW     8437.20 -236.30  8663.50 -209.46  8872.96 + 94.90  + 32.61
Nasdaq  1295.30 - 19.76  1315.06 - 65.51  1380.57 + 19.56  + 54.89
S&P-100  446.67 - 14.13   460.80 - 13.70   474.50 +  6.06  +  9.62
S&P-500  893.92 - 22.16   916.08 - 24.78   940.86 + 12.09  + 20.13
W5000   8481.20 -172.84  8654.04 -222.85  8876.89 +106.61  +198.41
RUT      391.57 +   .61   390.96 -  9.17   400.13 +  4.16  +  7.52
TRAN    2257.07 -  8.56  2265.63 -128.69  2394.32 + 54.92  +  7.52
VIX       40.04 +  4.24    35.80 +  2.99    32.81 -  0.01  -  6.54
VXN       56.54 +  1.56    54.98 +  7.36    47.62 -  3.03  -  8.05
TRIN       0.93             1.20             2.87             1.52
Put/Call   0.79             0.84             0.80             0.51          
******************************************************************

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

Thank You Intel, Maybe.  
by Jim Brown

The markets rallied on the better than expected Intel warning and 
the better than expected Jobs Report. Unfortunately both announcements
may not have been what investors first thought. When the euphoria
wears off on Monday we may be left with something that smells worse
than week old Chinese take out. 

Dow Chart


Nasdaq Chart


The Intel news was better than expected and investors fearing the 
worst raced to cover at the open but after the initial spike and 
drop the markets failed to reach the days highs again until 3:15
and then only for a brief period. Still they ended the day solidly
in the green but end the week in the red. Resistance held and there
was no monster short covering rally like we saw with Cisco and Intel
last quarter. In short the down trend is still intact.

The Intel news is questionable since they have not told the absolute
truth about their financials in over four years. There is a constant
shell game about productions rates, inventory levels, product mix, 
lack of visibility, etc. Analysts asking questions of the president 
on the conference call probably felt like they were interrogating
Greenspan on monetary policy. 

There were no straight answers and words were chosen carefully.
Intel admits their quarter is very heavily loaded to the back end. 
Orders for the holidays come in September and Intel admits they may
not come this year. In their highly technical analysis of their
prospects they said any possibility of a 4Q seasonal sales increase 
was far from a sure bet. That is far from comforting. Numerous 
analysts cut their ratings on Intel and warned the stock could 
drop as low as $12 before becoming fairly valued. With earnings
estimated to increase only +15% next year analysts claim it is 
still very overvalued. Some think Intel could drop to as low as $7.
http://www.business2.com/articles/web/0,1653,43369,FF.html?nl=di_bl

Cypress Semi was rumored to have commented at the SG Cowen tech
conference on Friday that the back to school sales that everyone 
has said were weak were actually nonexistent. They said it simply
did not happen and that calls into question the coming holiday 
sales as well. If retail sales are so bad for low ticket items
due to tight budgets then how bad are they going to be for big
ticket items? I suggest that consumers are probably going to
keep that Pentium-III around a little longer especially since 
prices on components are nearly free. You can upgrade memory
for little more than the cost of a dinner at McDonalds for four.
You can upgrade your hard drive to 40GB for the price of a dinner
for two with drinks at Red lobster. Why spend $1,000 for a new
box when less than $100 will do wonders? Do you need 1.2GHZ when
600 MHZ does fine?

The Jobs Report was also more smoke and mirrors. The headline number
showed 39,000 new jobs being created in August. What the headline
number did not show was that 22,000 were hired as airport security
personnel and 34,000 were teachers going back to work. Neither of
these events are going to be repeatable next month. Also there was
a huge number of temporary jobs added that will be phased out over
the next couple months. 41,000 jobs were government related. 69,000
jobs were cut in the manufacturing sector alone. A key point remained
that 53.3% of companies cut workers during August. If the government
hires workers it may have created job but it does nothing to add
to the GDP. Nothing gets manufactured or sold and no equity is
built by hiring a clerk or airport screener. Yes, we need these
government posts but it will not keep us out of a recession. These
facts were beginning to make the rounds by Friday afternoon and
likely contributed to the lack of enough volume to hold the rally
at its highs. 

It was announced that over 100 US and British aircraft took part
in the largest bombing raid in four year over Iraq. It was also
the second one this week. While President Bush is claiming he
will get permission from Congress and develop an allied coalition
he is going out of his way to soften up defenses under the guise
of policing the no-fly zones. The area they bombed today was the
area where scud missiles could be fired at Israel. With reports
coming in from the region of massive build ups of men, vehicles
and supplies it appears to be a foregone conclusion that we are
going to attack them. The reason we should be concerned is the
continuing rumor that Saddam has issued the orders for a preemptive
strike. This means his time is running short and anticipation is
building. It was also revealed that he is supporting a large
group of senior Al Queda in northern Iraq. There is also fear 
that he will use 9/11 as an attack date to attempt to gain favor 
from other Muslims who hail Osama as a hero. 

In that same context German police arrested two people with Al
Queda ties that were planning a 9/11 attack on an American base
in Germany. They recovered 267 lbs of explosives and a large 
quantity of chemical weapons (type undisclosed). This should
be a huge red flag. There is some strong sentiment that by 
attacking on 9/11 terrorists will build support among cells
that have gone into hiding and put their plans on hold. By
going on the offensive again, even if it is only a series of
small attacks, they show that they have not gone away and can
not be stopped. I doubt they will manage to mount any credible
attacks but that cloud will loom over us until next Thursday. 

Just in case you thought everything was better after that jobs 
report let me bring you back to earth. AMR announced after the
bell that they would have to cut substantially more than the 
7,000 already planned. CAT announced they would be laying off 
470 workers and terminating 250 more due to slower truck sales. 
GE said it was sending out another 500 pink slips Friday and
would cut more employees by year end. SUNW was rumored to be
announcing another round of layoffs on Monday. TLAB cut 800
jobs yesterday. Nortel said it was cutting 7,000 more jobs
and Lucent could be announcing another 5,000 cuts next week. 
I could go on but you get the picture. 

Bill Gross made the news today with a Dow 5000 prediction of
sorts. The entire article can be read at www.pimco.com but the
bottom line was that stocks were still nearly twice as high 
historically as he thinks they should be. He is not the lone
voice in the overvalued, still have farther to drop crowd but
he is very well respected. He manages the biggest bond fund
in the world. Critics say he had a vested interest in trashing
stocks but his rationale was very interesting reading. Of course
with bonds facing a multi year bear market ahead he is probably
worried about withdrawals just like equity fund managers over
the last two years. 

Volume was very anemic on Friday with only 2.8 billion shares
trading on all the markets. Up volume was better than 3:1 over
down volume but was not strong enough to push the markets over
the same resistance that has held all week. Since Tuesday's huge
drop the markets have seen three days of triple digit swings
but remained no higher than the intraday high on Tuesday. There
may be a bid under the market but there is heavy supply above
it. The averages are stuck between the 50% and 38% retracement
levels and I would be surprised to see them break either until
next Wednesday. Especially after the two people in Germany were
arrested for plotting a 9/11 attack. The possibilities are just
too strong that something major will happen and nobody wants to
be caught holding if it does. 

Contrary to all the bad news above I strongly believe we will 
see a monster relief rally on 9/12 assuming nothing happens. 
High priced stocks, weak economy and war fears will all be 
forgotten temporarily and I think we could easily see Dow 
9000 again. The Commitment of Traders Report showed that the
Commercials were very close to the most bullish position since 
Oct-2001. The $64,000 question is will it stick. Once overbought 
again those same economic fears will return along with earnings
warnings in volume. Investors who bought the relief rally will
be tested for conviction and there is still a large contingent
that believe we will see new lows in October. One thing for
sure, this wall of worry is approaching World Trade Center
proportions.

Enter Very Passively, Exit Very Aggressively!

Jim Brown
Editor


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

L-3 Communications - LLL - cls: 52.84 chg: +1.72 stop: *text*

Company Description:
L-3 Communication Systems-West, located in Salt Lake City, Utah, 
is a leader in communication systems for intelligence collection, 
imagery processing and satellite communications for the defense 
industry. In addition, the company provides a wide range of 
commercial wireless products and satellite communication systems. 
(source: company press release)

Why We Like It:
Recently, escalating war talk with Iraq has helped the Defense 
Index (DFI.X) gain momentum and escalate from the recent bottom 
on June 24th.  In addition, President Bush has proposed a $48 
billion dollar increase in the defense budget for next year.  
Bulls have recently found the defense sector to be a safe haven 
for investors.  Over the last year, L-3 Communications has 
benefited from fresh sales of explosive detection and defense 
communication equipment. 

Technical bulls are encouraged by LLL' close above the 200-dma 
today.  Further, the daily Stochastics have turned higher into 
the overbought region.  L-3 has been traveling in an ascending 
trend over the last five weeks, and could break higher if bulls 
persist to push the stock up.  The point & figure chart depicts 
LLL breaking above near-term descending resistance.  The most 
recent move is a double top breakout.  On the weekly chart, LLL 
has just moved above the 50-Week MA, and could have its sites set 
on a run to $60.00.  In addition the daily MACD recently moved 
above the 0 line and could travel higher.  

The newsletter will set its trigger for LLL two pennies above 
today's high at $53.25.  If a position is initiated, our original 
stop will be at $48.95, allowing LLL plenty of room to wiggle.  
The preliminary profit target for LLL will be at $59.99, however, 
if the stock quickly gains strength, we will revise our profit 
objective.  If everything works out as planned, this defense 
stock could explode into orbit.          

For Annotated Chart: Click Here
Chart of: L-3 Communications Holdings, Daily.



Picked on September xxth at $xx.xx <--- See text 
Results since picked:        +0.00
Earnings Date             07/16/02 (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
---------------------------------

Amgen Inc - AMGN - close: 44.75 change: +1.55

WHAT TO WATCH: Shareholders of AMGN enjoyed a 3.5% rally on 
Friday.  The stock broke out of an Inside Day and showed relative 
strength versus the NASDAQ.  With the daily stochastics (5,3,3) 
just beginning to rise from the overbought region, a continuation 
of this rally appears likely.  Keeping in mind that possible 
congestion lies in the $46.50 region, aggressive traders can look 
for entries on a move above today's high ($45.55).  Initial 
profit target would be somewhere in the $48-$49 range. 




---

Anglogold Ltd - AU - close: 25.20 change: +0.72

WHAT TO WATCH: Nearly every sector we monitor posted a gain on 
Friday, including the XAU.X gold/silver index.  That's somewhat 
surprising, considering that the group usually sees less buying 
when the broader market experiences a large rally.  The rise in 
gold prices may be attributed to nervousness over tensions in the 
Middle East and new highs in the price of crude oil.  AU has 
broken to relative highs and looks like it could quickly make its 
way to the $28-$30 area.  The past two days have seen shares 
clear the 200-day and 50-day moving averages, as well as 
psychological resistance at $25.00.  Today's volume was the 
highest in over a month, indicating a good deal of buying 
interest.  Traders can think about entering bullish positions if 
AU moves above today's high of $25.36.




---

Boyd Gaming Corp - BYD - close: 17.71 change: +0.50

WHAT TO WATCH: The news front as been mostly quiet for BYD, but 
that hasn't stopped the bulls from pushing the stock to multi-
year highs.  Shares added 2.9% on Friday and broke above the 
$17.50 resistance level.  The past three days of gains have been 
backed by strong volume.  The uptrending oscillators are hinting 
towards more upside, as is the triple-top point-and-figure buy 
signal.  In light of this technical bullishness, BYD looks well-
positioned to attack the $20.00 region.  Long entries can be 
gauged on a move above whole-number resistance at $18.00.




---  

eBay Inc - EBAY - close: 56.44 change: +1.76

WHAT TO WATCH: We looked long and hard tonight at adding EBAY as 
a bullish play.  The stock has staged a nice rebound from the 
relative low of $53.60 and is displaying bullish daily 
stochastics.  Meanwhile the MACD is showing signs of leveling out 
just below the baseline.  However, with the 200-dma ($58.56) and 
50-dma ($57.79) looming overhead, we decided EBAY would make a 
better Watch List candidate.  Bulls will point out that these 
moving averages have not acted as support or resistance over the 
past month.  If this continues to be the case, shares could 
easily make a near-term move to the $61.00 region.  Aggressive 
traders can consider going long on a move above today's high at 
$56.64.


 

---

Linear Technology - LLTC - close: 23.75 change: -0.22

WHAT TO WATCH: Friday's rally in the chip sector was completely 
lost on LLTC.  Merrill Lynch came out this morning and issued a 
"sell" rating on the stock.  That's always a bad sign when a 
brokerage goes out of their way to say "you shouldn't own this 
stock."  Shares finished solidly in the red and came within cents 
of falling below the multi-year low of $23.61.  LLTC has fallen 
under bullish support on the p-n-f chart and is currently 
displaying a double-bottom sell signal.  Today's volume was 
extremely brisk at 13.3M shares.  Overall sector strength 
prevented a complete breakdown, but the bulls won't be so lucky 
if the SOX.X reverses course next week.  A move below $23.50 
would provide a possible entry point to open short positions.  
We'd be targeting a decline to the $20.00 level.




---

Loews Corp - LTR - close: 50.20 change: -1.16

WHAT TO WATCH: LTR fell to a short-term low today on the 
strongest volume in over a month.  Shares pierced psychological 
support at $50.00 and underperformed the Dow Jones with a loss of 
$2.2%.  The fresh three-box point-and-figure reversal and bearish 
MACD crossover are technical signs that LTR will continue its 
downward journey.  In terms of specific action points, traders 
can watch for a break under the 50-dma ($49.40).  This could lead 
to a sell-off that takes the stock to the $45-$46 region.




--- 

Oracle Corp - ORCL - close: 9.62 change: +0.49

WHAT TO WATCH: It isn't pretty, but ORCL has spent the past three 
months trending higher.  The stock recently based out near the 
bottom of its ascending channel and appears to be in the early 
stages of a rebound.  Shares showed relative strength versus both 
the GSO.X software index and NASDAQ on Friday and posted a 5.4% 
gain.  The bullish oscillators suggest that ORCL could move back 
into the middle of its channel and retest the August highs near 
$11.00.  Long entries can be considered on a move above today's 
high of $9.81, which would also ensure a breakout above the 50-
dma ($9.73).




---

PP&L Resources - PPL - close: 33.48 change: -0.78

WHAT TO WATCH: PPL might be a good short if it breaks below 
today's low of $32.73.  The stock has been steadily falling for 
two weeks and is picking up downside momentum.  Shares fell by 
2.2% on strong volume today after the company purchased Mirant's 
stake in a U.K. utility.  S&P reacted to this news by revising 
PPL's outlook to "negative."  In breaking news after hours, PPL 
reiterated its 2002 outlook and said today's acquisition would 
lead to a 9% boost in 2003 earnings.  That sounds like good news 
for the bulls, but the stock could really get flushed if 
investors maintain their sell-side bias.  A break below today's 
low (which would also represent a violation of the 50-dma) could 
lead to a retest of the $30.00 level. 




--- 

Staples Inc - SPLS - close: 14.06 change: +0.52

WHAT TO WATCH: After following the RLX.X retail index lower over 
the past three months, SPLS has staged a rebound from newly-
discovered support at $13.00.  A glance at the daily bar chart 
shows that the stock has ample upside if it can clear the 
relative high of $14.25.  The uptrending MACD and daily 
stochastic oscillators already have the bears on their toes.  
Barring any new negative economic data that tanks the retail 
group, SPLS could make its way to the 50-dma ($15.89) in short 
order.  Given enough time, shares might also retest the August 
highs near $17.00.  




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

AZO - Shares have broken above the converging 50-day and 200-day 
MA's and look to be headed for a test of intermediate-term 
resistance at $75.  Rising daily stochastics indicate that AZO 
has a good chance of breaking above this level.  Possible action 
points to go long include a move above today's high ($73.40) or a 
pullback to the 200-dma at $71.30.

CCK - High-risk traders could consider shorting CCK if it rolls 
over from the $7.50 region.  The stock has gained more than 50% 
in just two weeks and looks overdue for a pullback.  Should CCK 
continue even higher, a rollover from bearish p-n-f resistance at 
$8.50 would also offer a shorting opportunity.

HGSI - This biotech stock is deeply oversold (according to the 
daily stochastics) and may be overdue for a short-covering 
bounce.  A move above today's high ($13.40) could lead to a test 
of the 50-dma at $15.00.

IBM -  IBM continues to bullishly hover above its 50-dma.  By 
placing a stop just under the relative low of $71.50, this stock 
offers a good risk/reward setup.  Initial profit target would be 
somewhere in the $80.00 region.  

MSFT - Mr. Softee has rebounded nicely from bullish p-n-f support 
and looks technically positioned to move back toward the $50.00 
region.  Short-term traders could target a rally to this level, 
while those with a longer timeframe could aim for a retest of the 
August highs near $53.50.


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

Devil's Advocate

by Steven Price

Do you believe?  I'm still not sure about this rally, however, 
there is no sense fighting the rising tide.  The Dow actually 
finished by giving up some of its gains today toward the end of 
the session after looking strong throughout the afternoon.  The 
catalyst was Intel, whose revenue guidance was lower, but not as 
bad as expected. This leaves us in a very precarious position. 
When the catalyst for a rally is simply bad news that isn't as 
bad as expected, the rally screams "oversold bounce."  In this 
case that would be accurate, as shorts pounded the semiconductors 
to new 52 week lows the last couple of days.  The question is, 
however, just how oversold were we?  

The Semiconductor Index (SOX.X) experienced a rebound today, but 
it wasn't a terribly convincing one. After taking out lows and 
closing at 275.36, the index rebounded to 288.47.  The rebound, 
however, met serious resistance just over 290, where it flat-
lined for most of the day. If the tech rebound was for real, I 
would have expected it to have at least an upward sloping 5 min. 
graph, as opposed to a horizontal line after the open.  There is 
still quite a bit of selling pressure above, which leads me to 
believe we will see a sell-off ahead of 9/11 when we open on 
Monday.

In spite of today's rally, the Dow finished the week down 236.30.  
The Nasdaq finished the week down 19.55.  The rally today was 
certainly a feel good event, but the big picture still carries 
quite a bit of bad news.  This week we saw a decrease in both 
manufacturing and non-manufacturing reports, a decrease of 68,000 
jobs in the manufacturing sector, employment data that swung both 
ways (a lower unemployment rate, but evidence of layoffs 
increasing their pace once again), and a lowering of estimates by 
the world's largest chipmaker.

With the anniversary of 9/11 next Wednesday, it is hard to 
imagine investors wanting to remain long, especially with a 
couple arrested today in Germany for planning an anniversary 
attack on a U.S. base there.  The question remains, what else is 
out there?  While there will most likely be a rally if that date 
passes without any major event, what happens between now and then 
is anyone's guess.  That lack of predictability, combined with 
little to cheer about in the business world, should lead most 
bulls to the sidelines before next Wednesday.

Supporting this theory is the low volume today, in spite of 
increased volatility over the last few days. The Market 
Volatility Index  (VIX.X) has closed over 40 on 3 of the last 4 
days, dipping to 39 on Wednesday.  These high readings usually 
suggest quite a bit of activity, however, today was an anomaly.  
Usually rallies lead to lower volatility readings, as investors 
gain confidence.  Volatility generally decreases on up moves and 
increases on down moves, because drops tend to happen at a much 
faster rate than increases.  While we saw increased volatility to 
the upside during the boom-boom days of the internet stock surge, 
that was an exception to the rule.  Today and Wednesday we saw 
volatility remain high in spite of triple digit Dow gains. We 
will most likely see a VIX reading over 40 for the next few days 
as we approach 9/11.  After all, no one wants to sell puts too 
cheaply in this environment, and calls must contain the same 
amount of premium (excepting interest and dividend 
considerations) as the puts.  

Look for a drop on Monday and possibly Tuesday as well.  The 
market fundamentals have not changed much, so any rally after 
9/11 will need some supporting evidence to maintain itself.  If 
you feel the need to go bargain hunting ahead of that date, just 
make sure you keep a few puts in your pocket for protection.


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

Market Averages

DJIA ($INDU)

52-week High: 10679
52-week Low :  7702
Current     :  8427

Moving Averages:
(Simple)

 10-dma: 8608
 50-dma: 8652
200-dma: 9671

S&P 500 ($SPX)

52-week High: 1226
52-week Low :  797
Current     :  893

Moving Averages:
(Simple)

 10-dma:  911
 50-dma:  909
200-dma: 1059

Nasdaq-100 ($NDX)

52-week High: 1782
52-week Low :  892
Current     :  922

Moving Averages:
(Simple)

 10-dma:  947
 50-dma:  967
200-dma: 1306


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


The Semiconductor Index (SOX.X): The bulls got what they were 
hoping for from Intel yesterday, which was news that wasn't as 
bad as expected.  The SOX, which opened up strongly, looked as 
though it would test resistance at 300, as the sector had been 
shorted heavily the last few days ahead of the Intel 
announcement.  Instead, the group came to a dead stop just over 
290, and the shorts kept a lid on them for the rest of the day.  
Given the new recent 52-week low and today's resistance, it 
appears that the problems facing the chipmakers are for real and 
even an oversold bounce had very little spring to it.

52-week High: 657
52-week Low : 275
Current     : 288

Moving Averages:
(Simple)

 10-dma: 309
 50-dma: 339
200-dma: 486


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

Market Volatility

The VIX has closed over 40 on 3 of the last 4 days, despite 
triple digit Dow gains on Wednesday and Friday.  The 9/11 premium 
is built into these options as no one wants to take on too much 
risk by selling puts too cheaply in case of a sell-off, or calls 
too cheaply in case of a post 9/11 rally.  A VIX reading over 40 
heading into a weekend, when time decay is significant, shows 
that fear is still a factor, despite today's rally.  Expect this 
number to remain high until Wednesday passes.  If there is no 
event, we should see a significant drop in option premiums.  If 
there is an event, 40 will look awfully low in retrospect.

CBOE Market Volatility Index (VIX) = 40.04 -2.19
Nasdaq-100 Volatility Index  (VXN) = 56.54 -4.18

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

          Put/Call Ratio  Call Volume   Put Volume

Total          0.79        419,346       331,026
Equity Only    0.62        321,047       199,208
OEX            1.17         16,524        19,251
QQQ            0.59         35,412        20,717

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

Bullish Percent Data

           Current   Change   Status
NYSE          43      + 1     Bull Confirmed
NASDAQ-100    36      - 1     Bull Correction
DOW           50      - 3     Bull Correction
S&P 500       51      - 1     Bear Confirmed
S&P 100       45      - 1     Bear Confirmed

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  1.57
10-Day Arms Index  1.68
21-Day Arms Index  1.31
55-Day Arms Index  1.35

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       2004           736
NASDAQ     2230           984

        New Highs      New Lows
NYSE         34              44
NASDAQ       24              97

        Volume (in millions)
NYSE     1,392
NASDAQ   1,310

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

Commitments Of Traders Report: 09/03/02

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 6,000 contracts to the long side, while 
reducing shorts by only 500, in what appears to be a stockpiling 
in anticipation of extreme movement next week. Small traders 
increased both long contracts and short, adding 5,000 to the long 
side and 8,000 to the short side.


Commercials   Long      Short      Net     % Of OI 
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%)
09/03/02      431,755   468,529   (36,774)   (4.1%)

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
08/13/02      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%
09/03/02      158,262    80,130    78,132     32.8%

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 added 2600 short contracts and only 1400 longs, while 
small traders got longer, adding 1,000 longs and reducing short 
positions by 300.


Commercials   Long      Short      Net     % of OI 
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%)
09/03/02       46,712     53,287    (6,575) ( 6.6%)

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
08/13/02       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%
09/03/02       11,150     7,720     3,430    18.2%

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 short positions slightly, reducing risk 
heading into next week, while small traders reduced both sides by 
about 500 contracts. 


Commercials   Long      Short      Net     % of OI
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%
09/03/02       21,161    13,792    7,369      21.1%

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
08/13/02        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%)
09/03/02        6,395     7,966    (1,571)   (10.9%)

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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To stop receiving this PremierInvestor.net Newsletter,
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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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Newsletter, or any Premier Investor Network newsletter please
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Copyright  2002  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.
PremierInvestor.net Newsletter          Weekend Edition 09-06-2002
                                                    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 Bullish Plays:     CTSH, LLL, QQQ
  Bearish Play Updates:  SBC
  Closed Bearish Plays:  QLGC

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

High Risk/Reward
  New Bullish Plays:     CPWR
  Bullish Play Updates:  SMH
  Bearish Play Updates:  IDPH
                        


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

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

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

Cognizant Technology - CTSH - cls: 60.54 chg: +2.18 stop: *text*

Company Description:
Cognizant is a leading provider of custom software development, 
integration and maintenance services that link e-business with 
core information systems for companies worldwide. Cognizant 
operates under a high quality, high value onsite/offshore model 
that enables better, faster and more cost effective development 
and deployment of large-scale systems across a wide range of 
transaction intensive business needs. 
(source: company press release)

Why We Like It:
With a very impressive list of clients including: The Dun & 
Bradstreet Co, ADP, Brinker International, Computer Sciences, and 
many others, CTSH has been able to keep its stock ascending in a 
difficult market.  Recently, Cognizant was named the top pure 
play on-site/off shore company on the Nasscom's list of 
multinational software exporters.  

On a technical basis, bulls have been trying to push Cognizant to 
52-week highs.  The stock has been trading in an ascending 
channel since February of this last year.  The ascending support 
line of the channel trades in local tandem with the 50-dma at 
what seems to be a 45-degree angle.  Further, the daily 
Stochastics are trending up, with the Fast line having recently 
entered the overbought region.  Bulls would be further encouraged 
if this stock were to attempt a breakout and close above the 
$61.00 level.  The overhead resistance, which is at $65.00 and 
$67.00, dates back to January of 2000.  

Given the long-term pattern of relative strength, we think bulls 
could further lend a hand in pushing CTSH higher.  Thus, we are 
placing our trigger for CTSH at $61.40, slightly above the 
relative high.  If triggered, our stop will be just below the low 
two days ago at $56.58.  Our initial profit target for CTSH will 
be at $68.49, just below the descending resistance of the near-
term channel.      

For Annotated Chart: Click Here
Chart of: Cognizant Technology Solutions, Daily.



Picked on September xth at $xx.xx <--- See text 
Results since picked:       +0.00
Earnings Date            07/15/02 (confirmed)
 



---

L-3 Communications - LLL - cls: 52.84 chg: +1.72 stop: *text*

Company Description:
L-3 Communication Systems-West, located in Salt Lake City, Utah, 
is a leader in communication systems for intelligence collection, 
imagery processing and satellite communications for the defense 
industry. In addition, the company provides a wide range of 
commercial wireless products and satellite communication systems. 
(source: company press release)

Why We Like It:
Recently, escalating war talk with Iraq has helped the Defense 
Index (DFI.X) gain momentum and escalate from the recent bottom 
on June 24th.  In addition, President Bush has proposed a $48 
billion dollar increase in the defense budget for next year.  
Bulls have recently found the defense sector to be a safe haven 
for investors.  Over the last year, L-3 Communications has 
benefited from fresh sales of explosive detection and defense 
communication equipment. 

Technical bulls are encouraged by LLL' close above the 200-dma 
today.  Further, the daily Stochastics have turned higher into 
the overbought region.  L-3 has been traveling in an ascending 
trend over the last five weeks, and could break higher if bulls 
persist to push the stock up.  The point & figure chart depicts 
LLL breaking above near-term descending resistance.  The most 
recent move is a double top breakout.  On the weekly chart, LLL 
has just moved above the 50-Week MA, and could have its sites set 
on a run to $60.00.  In addition the daily MACD recently moved 
above the 0 line and could travel higher.  

The newsletter will set its trigger for LLL two pennies above 
today's high at $53.25.  If a position is initiated, our original 
stop will be at $48.95, allowing LLL plenty of room to wiggle.  
The preliminary profit target for LLL will be at $59.99, however, 
if the stock quickly gains strength, we will revise our profit 
objective.  If everything works out as planned, this defense 
stock could explode into orbit.          

For Annotated Chart: Click Here
Chart of: L-3 Communications Holdings, Daily.



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

 

---

NASDAQ-100 Tracking Stock - QQQ - cls: 22.85 chg: +2.18 stop: *text*

Company Description:
With Nasdaq-100 Index Tracking Stock, you can buy or sell shares 
in the collective performance of the Nasdaq-100 Index in a single 
transaction - just as you buy or sell shares of individual 
stocks. It's a one-investment portfolio that gives you ownership 
in the 100 stocks of the Nasdaq-100 Index.
(source: NASDAQ website)

Why We Like It:
Tech stocks are mired in a multi-week downtrend, and the bears 
will argue that Friday's rally simply provided another shorting 
opportunity.  Fundamentally, we can't really argue with this 
perspective.  The recent myriad earnings warnings and negative 
CEO comments have revealed that an upturn in IT spending is 
nowhere to found - at least, for the foreseeable future.  Wall 
Street has digested this bearish news, leading to a 9.1% decline 
in the NASDAQ from its relative high on August 22nd.  But 
unfortunately for the bears, nothing goes down in a straight 
line.  Today's tech rally on the seemingly negative mid-quarter 
update from INTC suggests that the latest round of bad news is 
already priced into the market.  Technically, the NASDAQ's rising 
daily stochastics are a sign that the newly found bullishness may 
have staying power.  A continuation of today's short-covering 
rally could quickly send the NASDAQ back to the 1400 region.

On a trading basis, we like the QQQ's as a long play because it 
offers a good risk/reward setup.  We'll enter our hypothetical 
bullish position if the stock moves above today's high of $23.22.  
If we're triggered our stop will be placed at $21.90, just under 
the relative low.  This represents a downside risk of 5.7%.  Our 
profit-target lies at $26.18, slightly below the August high.  
Should this target be achieved, we'll achieve a net gain of 12.7% 
from our trigger point.  Shorter-term term traders may want to 
shoot for a rally to psychological resistance at $25.00.  

For annotated chart: click here.
Chart of: QQQ, Daily.



Picked on September xth at $xx.xx <--- See text 
Results since picked:       +0.00
Earnings Date                  NA
 




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

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

SBC Comm. - SBC - cls: 24.00 chg: +0.53 stop: 25.06 

Today's widespread tech rally helped to boost the IXTCX combined 
telecom index to a 5.2% gain.  Interestingly, SBC only managed a 
gain of 2.2%.  The stock traded an Inside Day and never 
approached overhead resistance near $24.50.  This consolidation 
action indicates that breakout (or breakdown) could be just 
around the bend.  Our profit target at 22.26 might be quickly 
realized if SBC falls under today's low of $23.65.  Traders 
looking to open new bearish positions can continue to target 
rollovers from $24.50.  The Premier Investor newsletter is 
currently up 12.6% in this hypothetical short trade.

Picked on August 21st at $27.49 
Results since picked:     +3.49
Earnings Date          07/23/02 (confirmed)

 


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

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

Qlogic - QLGC - cls: 33.98 chg: +1.57 stop: 34.21

Thursday night's after-hours action gave us a pretty good 
indication that the semiconductor group would finish the week on 
a very strong note.  That's exactly what happened today, as a 
powerful rally in INTC led the SOX.X to a 4.7% gain.  QLGC gapped 
higher this morning and quickly violated our recently-tightened 
stop at $34.21.  This play was closed for a gain of 9.6%.  Those 
who elected to use a more liberal stop should be watching for a 
rollover from the $35.00 level.  The SOX.X ran into some solid 
overhead resistance at 292 during today's session.  If the bears 
continue to assert themselves, it wouldn't be surprising to see 
much of today's gains given back.  A breakout, however, could 
quickly send the SOX.X to the next level of overhead resistance 
near 310.  We'd consider shorting QLGC again if it experienced 
another rollover from the 50-dma.

Picked on August 23rd at $37.85 
Results since picked:     +3.64
Earnings Date          07/18/02 (confirmed)






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

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

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

Argosy Gaming Co. - AGY - cls: 28.90 chg: +0.85 stop: 26.74

Broader market bullishness had shares of AGY gapping higher on 
Friday morning.  Our long play was activated at the opening trade 
of $28.40.  AGY continued to display relative strength, as shares 
handily outpaced the Dow Jones with a 3.0% gain.  In a very 
encouraging technical development, today's volume of nearly a 
half-million shares was the highest reading in over a month.  
This enthusiastic buying interest is an indication that AGY may 
soon be trading at relative highs.  Bulls can also be pleased 
with the rising daily stochastics.  New entries could be targeted 
on a move above $29.00, but keep in mind that the bears will 
probably put up a fight at the $30.00 level.  Our stop is located 
at $26.74.  Very risk-averse traders could use a stop slightly 
below the $28.00 level.

Picked on September 6th at 28.40
Results since picked:      +0.50
Earnings Date           07/23/02 (confirmed)
 



---

Clorox Corp - CLX - close: 42.65 change: -0.17 stop: *text*

This stock has shown a pattern of relative strength, so one would 
expect that a triple-digit rally in the Dow Jones would lead to 
some nice gains for CLX.  However, these bullish expectations 
were dashed by a Banc of America downgrade of competitor Colgate-
Palmolive.  The reduced rating was simply a valuation call and 
did not imply any specific industry weakness, but CLX nonetheless 
fell in sympathy with CL.  Shares successfully tested the 200-dma 
($42.12) and finished with a small loss.  Going forward, we'll be 
looking for CLX to shake off today's funk and make its way to our 
action trigger at $43.49.  More relative weakness would probably 
lead us to drop this play.

Picked on September xth at xx.xx <- see text
Results since picked:      +0.00
Earnings Date           08/07/02 (confirmed)




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

Bear Stearns - BSC - close: 61.01 change: +0.86 stop: *text*

Our position in Bear Stearns was never triggered today, as the 
stock did not fall below $59.64.  The Dow surged +143.50 in 
today's session, lofting many companies throughout the day.  
Further, the Securities Broker Index (XBD.X) also climbed higher, 
attempting to close above the 50-dma at 392.03.  However, for the 
time being, we will leave this trigger active just in case the 
brokers find weakness in the next few days.  We will only enter 
our paper position if the stock falls below $59.64.  If 
triggered, we will put our initial stop at $62.01.      

Picked on September xth at $xx.xx <--- See chart 
Results since picked:       +0.00
Earnings Date            06/19/02 (confirmed)

---

Citigroup Inc - C - close: 30.28 change: +0.98 stop: 31.26

Citigroup climbed +0.98 cents on the day, as the company 
announced a potential deal with the FTC "to settle a year-old 
predatory lending lawsuit".  Bulls were encouraged by the news, 
as they pushed C up +3.34% in the session.  However, bears could 
still be thinking that C has some downside left, as the stock 
continues to trade underneath the most recent gap window at 
$31.25.  Indicators are mixed, with the daily Stochastics turning 
up, and the MACD failing under the 0 line.  Broader strength in 
the Bank Index (BKX.X), could help bulls gather more activists 
for their cause.  Just in case bulls are able to pull though, the 
newsletter will keep the current stop at $31.26, attempting to 
protect paper gains.               

Picked on August 26th at $33.49
Results since picked:     +3.21
Earnings Date          07/17/02 (confirmed)




---

Chubb Corporations - CB - cls: 60.42 chg: +0.37 stop: 62.11 *new*

Although Chubb gained +0.37 cents on the day, investors could 
still be worried about the approaching September 11th 
anniversary.  Further, in today's news, Chubb declared a regular 
quarterly dividend of 0.35 cents per share, payable October 8th, 
2002.  It would seem that while bulls are trying to hold Chubb's 
ground, the stock appears to have weaker relative strength 
compared to the broader market.  If September 11th passes without 
any fireworks, the insurance sector could then see some relief 
buying. Thus, in an attempt to protect our paper gains, the 
newsletter will move the stop down to $62.11, just above 
psychological resistance and the whole number.

Picked on August 28th at $62.49
Results since picked:     +2.07
Earnings Date          07/29/02 (confirmed)





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

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

Cox Comm. - COX - cls: 27.35 chg: +2.27 stop: $26.26

The newsletter was stopped out of COX today when the stock 
violated our stop at $26.26.  Without any noteworthy news 
surfacing, the move may have been influenced by the larger market 
rally.  Bulls are encouraged with today's potential breakaway 
gap, and could have their eyes on higher ground.  The daily 
Stochastics have entered the overbought region, and the MACD has 
also turned bullish by crossing above the 0 line.  Shorts still 
in their positions are urged to be very careful and monitor stops 
closely.  In total, this position yielded a hypothetical loss of 
6.6%.      

Picked on August 28th at $24.64
Results since picked:     -1.62
Earnings Date          07/31/02 (confirmed)




---

Payless Shoesource - PSS - cls: 56.03 chg: +2.13 stp: 54.40

Payless Shoesource had no direct news today, though the stock has 
seemed to gain ground with the broader market and the Retail 
Sector.  With the Unemployment Rate falling to 5.7% from a 
previous 5.9%, investors could be thinking that consumers might 
surface again in the future.  No matter how you slice it, we were 
stopped out today when the stock opened at our stop loss at 
$54.40.  Further, today's move brings PSS above the 200-dma, 
catching the attention of technical bulls.  In addition, the 
daily Stochastics are in the overbought region on both the daily 
and weekly charts.  This reversal demands technical awareness, 
thus bears still hanging onto short positions are implored to 
exercise vigilance, as more buyers could be just around the 
corner.         

Picked on August 26th at $52.99
Results since picked:     -1.41
Earnings Date          08/14/02 (confirmed)




---

Adolph Coors - RKY - cls: 61.95 chg: +0.92 stop: *text*

Our short in Adolph Coors was never triggered, as the stock 
refused to trade below our entry point at $58.24.  As stated 
yesterday, if Coors did not start to see weakness in today's 
session, we would on drop the play all together.  With RKY's 
three-day move almost topping three points, our trigger seems a 
far cry from current levels.  Given Adolph Coors' recent 
strength, new positions are not encouraged at this point.     

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

---

Retail Hldrs - RTH - close: 81.15 change: +2.73 stop: 81.26

As strength surfaced in retail stocks today, we were stopped out 
of this play when the trust sullied our stop at $81.26.  The 
hypothetical loss incurred was -0.56 cents, or -.006%.  With 
several retail companies reporting decent same store sales, the 
RTH was able to find legs as the Dow leaped for higher ground 
today.  Stocks fueling the positive move in the RTH today were: 
Best Buy (NYSE:BBY), Amazon.com (NYSE:AMZN), Costco (NYSE:COST), 
Federated Department Stores (NYSE:FD), Target (NYSE:TGT), Wal-
Mart Stores (NYSE:WMT), and Walgreen Co. (NYSE:WAG).  The RTH 
moved above the 50-dma today, an event that could have bulls 
attempting to push the trust higher in the next few sessions.  
Bears continuing to hang onto shorts are advised to use caution 
and implement sound stops to protect capital if the RTH persists 
in its elevation.         

Picked on August 26th at $80.70
Results since picked:     -0.56
Earnings Date                NA


 



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

============
HR New Plays
============

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

Compuware Corp. - CPWR - cls: 4.05 chg: +0.28 stop: *text*

Company Description:
Compuware Corporation, a multi-billion dollar company, provides 
business value through software and professional services that 
optimize productivity and reduce costs across the application 
life cycle. Meeting the rapidly changing needs of businesses of 
all sizes, Compuware's market-leading solutions improve the 
quality, ease the integration and enhance the performance of 
distributed, e-business and enterprise software.
(source: company press release)

Why We Like It:
Over the last few weeks, the GSTI Software Index (GSO.X) has been 
ascending from the recent July lows.  The index made a four-day 
high today, and could test the 50-dma in the next few sessions.  
If September 11th passes without a hitch, investors might think 
about buying stocks again with renewed psychological confidence 
in the markets.  

Because CPWR is only four dollars, the stock definitely qualifies 
for our high-risk category.  On the daily chart, CPWR closed 
above the 50-dma today for the first time since March 28th of 
this year.  Further, the daily Stochastics have traveled into the 
overbought region, and the MACD seems as if it could be trying to 
move above the 0 line.  In addition, the Point & Figure chart 
displays a low pole reversal with near-term horizontal resistance 
at $6.00.  Descending resistance on the P&F chart lies at $10.00.  
On the weekly chart, the Stochastics have just turned up out of 
the oversold region, along with the MACD recently witnessing a 
bullish crossover underneath the 0 line.  

The newsletter will put a trigger on CPWR just above near-term 
resistance at $4.51, with the initial stop below yesterday's low 
at $3.68.  Our initial profit target for this play is $5.99, 
however, more aggressive investors could try and hold out for a 
bold more to $6.90.     

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



Picked on September xxth at $xx.xx <--- see text 
Results since picked:        +0.00
Earnings Date             10/17/02 (confirmed)
 




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

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

Semiconductor HOLDRS - SMH - cls: 23.39 chg: +1.11 stop: 21.98

As we had anticipated, the SMH gapped higher this morning on a 
positive reaction to Intel's mid-quarter update.  Our long play 
was triggered at the opening price of $23.38.  INTC led the 
bullish charge with a 7.3% gain.  The SMH experienced its largest 
rally in over two weeks and finished with a gain of nearly 5.0%.  
Shares actually traded in a narrow range for most of the session, 
as the bears offered a spirited defense of short-term resistance 
near $23.75.  This coincides with similar resistance in the 292 
region on the SOX.X.  A glance at SMH's daily chart offers some 
bullish technical insights.  Shares have bounced from just below 
the August lows and the MACD looks ready to move above the 
baseline.  The uptrending stochastics are also encouraging for 
this play.  Although we're keeping our stop set at $21.98, those 
with a more conservative approach could use a stop just below 
$23.00.  Next week we'll be looking for shares to move above 
$23.80 and begin filling the September 3rd gap.  New long entries 
can be evaluated if this occurs.

Picked on September 6th at $23.38 
Results since picked:       +0.01
Earnings Date                 N/A
 



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

IDEC Pharmaceuticals - IDPH - cls: 40.71 chg: +1.61 stop: 41.80

The recent see-saw trading in IDPH is enough to make traders 
dizzy.  Shares bounced back today and recouped all of Thursday's 
losses.  There wasn't any company-specific news to move it 
higher, but the stock appeared to benefit from a strong rally in 
the BTK.X biotech index.  IDPH rallied to within just eight cents 
of our stop-loss in late-afternoon trading before pulling back to 
finish with a 4.1% gain.  The recent volatility does not come as 
a huge surprise.  After all, this IS a biotech play.  Of more 
concern is the fact that IDPH has broken its recent trend of 
lower highs and closed well above the 50-dma at $40.25.  The 
uptrending daily stochastics also hint towards further upside.  
However, another round of negative sector news could have IDPH 
moving lower once again.  Aggressive traders may want to target 
new entries on a move under today's low at $39.90.

Picked on September 5th at $38.59 
Results since picked:       -2.12
Earnings Date            07/17/02 (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 09-06-2002
                                                   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 9th
   - 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 9th
==================================================

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

Symbol  Company               Date           Comment      EPS Est

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

SASOY  Sasol Limited         Mon, Sep 09  -----N/A-----       N/A


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

AAUK   Anglo American PLC    Tue, Sep 10  -----N/A-----        N/A
CMVT   Comverse Technology   Tue, Sep 10  After the Bell     -0.12
HNZ    Heinz                 Tue, Sep 10  Before the Bell     0.53

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

None


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

ADBE   Adobe Systems          Thu, Sep 12  After the Bell    0.19
BNG    Benetton Group         Thu, Sep 12  -----N/A-----      N/A
CBRL   CBRL Group             Thu, Sep 12  -----N/A-----     0.54
EN     Enel S.p.A.            Thu, Sep 12  -----N/A-----      N/A

------------------------- 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
DORL    Doral Financial           3:2      09/14       09/16


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

This market watch could be the barometer that helps investors to 
forecast the market weather ahead.  

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

Monday, 09/09/02
----------------
Wholesale Invntories(DM)Jul  Forecast:   0.2%  Previous:     0.3%
Consumer Credit (AB)    Jul  Forecast:  $9.2B  Previous:    $8.4B


Tuesday, 09/10/02
-----------------
None


Wednesday, 09/11/02
-------------------
Fed’s Beige Book (DM)


Thursday, 09/12/02
------------------
Initial Claims (BB)   09/07  Forecast:   400K  Previous:     403K
Export Prices ex-ag(BB) Aug  Forecast:    N/A  Previous:     0.2%
Import Prices ex-oil(BB)Aug  Forecast:    N/A  Previous:     0.0%
Current Account (BB)     Q2  Forecast:-$125.0B Previous: -$112.5B


Friday, 09/13/02
----------------
Retail Sales (BB)       Aug  Forecast:   0.4%  Previous:     1.2%
Retail Sales ex-auto(BB)Aug  Forecast:   0.2%  Previous:     0.2%
PPI (BB)                Aug  Forecast:   0.2%  Previous:    -0.2%
Core PPI (BB)           Aug  Forecast:   0.1%  Previous:    -0.3%
Mich Sentiment-Prel.(DM)Sep  Forecast:   87.9  Previous:     87.6


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 

GTK     Gtech Holdings Corp        19.62     +0.64
CBE     Cooper Industries Inc.     33.00     +1.00
CC      Circuit City               15.69     +1.44
AHG     Apria Healthcare Group     24.32     +0.64

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

SBGI    Sinclair Broadcast Group  15.69     +1.44
HOTT    Hot Topic Inc.            19.46     +1.30
MLHR    Herman Miller             15.60     +1.02
DRD     Duane Reade Inc.          18.14     +2.17
JCOM    J2 Global Communications  18.30     +1.50

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

MIK     Michaels Stores Inc.       48.35     +2.01
ITMN    Intermune Inc.             27.39     +2.61
CDWC    Cdw Computer Centers       46.47     +5.17
ROAD    Roadway Express Inc.       28.98     +1.66
JWN     Nordstrom Inc.             21.15     +1.84
BLL     Ball Corp.                 53.75     +1.55

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

TTWO    Take-Two Software          25.02     -2.32
RJR     Rj Reynolds Tobacco        52.58     -5.67
MO      Philip Morris              46.51     -1.65
LTR     Loews Corp.                50.20     -1.16
PBG     Pepsi Bottling Group       23.85     -1.23

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

None




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