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Daily Newsletter, Wednesday, 09/11/2002

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PremierInvestor.net Newsletter              Wednesday 09-11-2002
                                                  section 1 of 2
Copyright  2002, All rights reserved.
Redistribution in any form is strictly prohibited.

The entire newsletter is best viewed in COURIER 10 for alignment
=================================================================

In section one:

Market Wrap:      Overcoming Tragedy
Watch List:       AEP, BBBY, BSX, CCU, CSCO and more...
Play of the Day:  Duking it out


*******************************************************************
MARKET WRAP  (view in courier font for table alignment)
*******************************************************************       
09-11-2002                High    Low     Volume Advance/Decl
DJIA     8581.17 - 21.44 8726.90  8570.22  987 mln   549/430
NASDAQ   1315.45 -  4.64 1347.27  1314.96 1068 mln   663/384
S&P 100   455.41 -  0.48  464.02  454.73   totals   1212/814
S&P 500   909.45 -  0.13  924.02  908.47
RUS 2000  393.37 -  0.79  397.55  393.20
DJ TRANS 2297.32 +  9.72 2326.39  2285.87
VIX        37.23 +  0.27   38.45  35.92
VIXN       54.00 +  0.93   54.00  52.52
Put/Call Ratio 0.69
*******************************************************************
 

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

Today's market traded somberly on the anniversary of the 9/11 
terrorist attacks.  The Nasdaq started trading today at 11 a.m., 
one hour before the NYSE rang the opening bell.  During the day, 
the Dow ascended in early trading, but ended up giving back 
gains, closing down -21.44 at 8581.17.  The Nasdaq traded 
virtually flat, finishing the session down -4.64 at 1315.45.  The 
NYSE witnessed 1351 advancers and 1337 decliners, while the 
Nasdaq observed 1530 winners and 1533 losers.  Volume was 
extremely light on both exchanges, as the NYSE traded a meek 987 
thousand shares, and the Nasdaq exchanged 1.06 billion issues.  

In news today, Tyco International (NYSE:TYC) surged forward when 
the company announced that is was instating United Technologies' 
David FitzPatrick as the new CEO.  Tyco closed the session at 
$17.80, up +11.94%.

Taiwan Semiconductor Manufacturing (NYSE:TSM) cut its 2002 
production forecast by half for state of the art semiconductor 
wafers.  The company is delaying adding new equipment to its 
plant for 12-inch wafers, accounting for 10% of TSM's total 
capacity.  Shares of TSM fell -3.89% to $8.15. 

Martha Stewart's case of potential illegal insider selling has 
been passed to the Justice department for further consideration 
on whether charges will be filed.  Martha Stewart allegedly sold 
almost 2000 shares of ImClone (NYSE:IMCL) shares prior to a 
public announcement of an FDA refusal.  Martha Stewart Living 
Omnimedia (NYSE:MSO) declined -0.10 cents on the day to close at 
$8.95.  

Intermet (Nasdaq:INMT) dropped -27.04% today, as the company 
announced that it would not meet third-quarter earnings 
expectations, stating slow July sales.  Recently, CFO Doretha 
Christoph resigned on August 14th, potentially alluding to 
internal accounting problems.                


Economic news

Today brought forth the Beige Book from the Federal Reserve, 
which depicted that economic growth has slowed over the previous 
weeks.  However, there is variation in the report with slight 
improvement in Atlanta and San Francisco, minor change in Boston 
and Dallas, and slow or irregular growth in the remaining 
districts.  Overall the report indicates staggering (I don't 
think this is the word you're looking for) momentum in the 
economy with the exception of vehicle sales, housing, and related 
goods.  The evidence in the Beige Book indicates that economists 
can expect little to no change in the September 24th Fed policy 
meeting.  The Fed expects recovery to remain uneven over the 
near-term, thus another rate cut could be out of the question at 
this time.        

The ABC News/Money Magazine Consumer Comfort Index notched up to 
-12 this week from the previous -13.  The survey has fluctuated 
from -15 to -11 since August, reflecting a lackluster economic 
environment.  Attitudes of consumers are more positive now than 
the beginning of the year.  However, the increase may simply be 
attributed to discount pricing of retail goods and cash out 
refinancing.   

The MBA Mortgage Applications survey leaped to ANOTHER all time 
high over the last week, reporting 1238.2 new applications versus 
1059.5 in the prior report.  This is the first time the survey 
has ever been above 1200, with large gains in both purchase and 
REFI applications.  The Purchase Index rose to 401.6 from 359.7, 
and the REFI Index jumped to 6104.3 from 5129.6.  This week's 
numbers suggest that nothing in the lackluster economy is putting 
the breaks on the housing market.  Further, the numbers indicate 
that housing demand will remain strong over the next few months 
with interest rates' touching record lows just above 6%.  It is 
estimated that homeowners will refinance over $1 trillion dollars 
worth of mortgages, cashing out a hefty $138 billion dollars.  
Importantly, the demand for purchasing applications remains 
strong, indicating that prospective homebuyers have no aversion 
to paying premiums in exaggerated markets.  The simplest 
conclusion is that investors are staying away from equity 
markets, continuing to put their greenbacks into real estate.  
However, analysts still conclude that if and when interest rates 
rise above 7%, the housing and refinance markets could quickly 
taper off.  

Oil and Gas inventories were slightly mixed from EIA and API 
reports this week.  The EIA reported that crude inventories 
decreased from 298.5 to 293.2, distillate inventories increased 
to 133.6 from 129.6, and gasoline stocks amplified to 0.3 from 
-1.5.  The API recorded Crude inventories staying mostly flat 
at 298.4 from 298.9, distillate inventories leaping to -0.5 from 
-6.3, and gasoline inventories moving from -1.4 to 0.1.  Both 
reports are bearish for distillate and gasoline stocks, though 
slightly bullish on crude.  The drop in crude inventories can be 
attributed to the current decline of imports, though capacity 
utilization of refineries averaged 15.4 million barrels per day.  
The import decrease may have been caused from stormy weather in 
the Gulf, which hindered transportation of inventories.  The 
current "war premium" per barrel is figured to be in the $8.00 
area, with OPEC's current range for "acceptable" oil prices 
between $22-$28.00.  The basket price for OPEC oil is $26.00 per 
barrel.  Analysts concur that during the September 19th meeting, 
OPEC will validate the current over-production of 2-million 
barrels per day, by increasing quotas to match existing 
production.  Gasoline prices are expected to remain flat, while 
distillate prices should gain momentum as the heating season 
ensues. 

Technicals

In light trading, the Dow Jones ($INDU) failed to move above the 
50-dma at 8613.63.  Bulls had hoped that an emotional "patriotic" 
rally would push the index higher in today's session.  However, 
the Beige Book report could have been the catalyst that took the 
wind out of trader's sails.  Resistance on the P&F chart lies at 
8750, with the most recent action indicating a low pole reversal.  
A low pole reversal of more than 50% is a good sign for bulls.  
But because the reversal is not off lows, there remains a slight 
amount of uncertainty.  Ascending support lies in the 8250 area, 
with recent trading this week adding two more positive boxes to 
the P&F chart.  On the daily candlestick chart, bulls are 
slightly concerned with today's failure at the 50-dma and the 
MACD potentially stumbling below the 0 line.  Daily Stochastics 
are nested mid-range and could move either way.  

Chart of: Dow Jones Industrial Average, Daily.




Causing concern, the Kbw Bank Index ($BKX.X) dipped below the 50-
dma today, closing at 754.92.  Bulls and bears definitely seem to 
have mixed feelings regarding the financials lately.  The sector 
has witnessed many downgrades and seamlessly endless reshuffling 
of CEO's and CFO's.  Obviously September 11th crippled the 
finance sector, but the ensuing problems with scandals such as 
Enron and WorldCom certainly haven't made the recovery any 
easier.  Recent developments regarding CitiGroup's (NYSE:C) shady 
allocation of IPO shares to executives and clients has also added 
weight to the sector.   The P&F chart displays a recent three-box 
reversal, though the index has run into resistance at 770.  Bulls 
would like to see a break above this level to institute a higher 
trend.  

Chart of: Kbw Bank Index, P&F.




Oil continues to raise trader's eyebrows, as supply side fears 
and a potential attack on Iraq could still push futures higher.  
Crude futures closed at $29.76 today, well above the 50-dma at 
$27.52, and threatening a move above $30.00 per barrel.  Bears 
are worried that the current pattern could be a bullish flag, 
potentially indicating a future break out. Daily Stochastics are 
traveling in the overbought region, though bulls are fearful of 
the MACD, which has elevated high into the upper region.  For 
now, $30.20 is the mark to watch for overly eager bulls 
attempting to break through resistance.    

Chart of: Light, Sweet Crude, Daily.




Over the near-term, buyers will have to nudge the Dow, the Nasdaq 
Composite, and the S&P 500 well above their 50-dma's to encourage 
undecided investors to come off the fence.  September is 
historically a very bearish month, while October is said to hold 
many bear market reversals.  The short-term picture is unclear 
until further volume returns to the market.  Over the next few 
days, investors should consider the possibility of an emotional 
rally, with September 11th passing without any terrorist fanfare.  
However, economic fundamentals do not support a full-bore 
recovery just quite yet.  It's true that the economy is slowly 
recovering, though "slowly" is the key word.  Bears could still 
find allies in the pessimist economist's camp, causing further 
potential weight on the indexes.  Investors are encouraged to 
look for volume and keep stops tight.     

Tomorrow Fed Chairman Alan Greenspan will make comments in front 
of the Budget Committee at approximately 10 a.m. EST.  Most 
analysts and economists expect Greenspan to reaffirm his faith in 
the long-term possibilities of economic growth at 3.5% for the 
duration of the year.  Short-term interest rate futures predict a 
meager 12% chance that the Fed will cut rates at its September 
24th meeting.  

President Bush will address the United Nations tomorrow, and is 
expected to outline the U.S.'s case for ousting Saddam Hussein.  
His argument will contend that Iraq is attempting to develop 
weapons of mass destruction, and poses a threat to world peace.

Today was an emotional day for all in light of the losses 
suffered one year ago.  Every American has been effected by the 
events of 9/11, and thus, we all mourn the grave circumstances 
that make us highlight this particular day on our calendars.  The 
Premier Investor team would like to extend our condolences to all 
of those who have suffered either directly of indirectly because 
of the 9/11 events.  As Americans, we have rebuilt from the 
ruined ashes of the cowardly terrorist attacks.  The economy is 
still attempting to gain its legs, though because we live in the 
greatest country in the world, it will.  Not only are we 
survivors, but we are a great nation of people who will rise 
above tragedy and prevail against all odds.  The PI team 
recognizes that without this great country, we would not be able 
to publish this newsletter, and for that, we would like to thank 
you America.      
               
Sincerely, thank you. 

Mark Whistler
Editor 

Questions or comments
mwhistler@PremierInvestor.net 

Reader survey: Now that 9/11 has passed, what do you think will 
happen to the markets and the economy for the remainder of the 
year?  Please email responses to editor.  

==================================================================
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
---------------------------------

American Electric Power - AEP - close: 30.00 change: -0.75

WHAT TO WATCH: Readers who are familiar with our Play List 
already know that we have a bearish short-term outlook on the 
utility group.  The UTY.X utility index saw a huge, unsustainable 
rally from its July lows and is now in the process of retracing 
those gains.  AEP has traded in a similar fashion and may be in 
danger of retesting its 52-week lows.  Shares pulled back by 2.4% 
today amid news that the company would mothball up to 16 power 
plants in Texas.  The past two days of declines have been backed 
by stronger-than-average volume, indicating that the bears are 
firmly in control.  Short positions could be gauged on a move 
below today's low of $29.79, which would also ensure that 
psychological support at $30.00 has been broken.  A trade at 
$29.00 would produce a double-bottom sell signal on the p-n-f 
chart.  With no clear levels of underlying support, a breakdown 
could result in a rapid retest of the $22-23 level.  




---

Bed Bath & Beyond - BBBY - close: 34.89 change: +0.54

WHAT TO WATCH: The past week has produced a number of positive 
technical developments in BBBY.  Looking at the bar chart, one 
can see that shares recently moved above both the 50-day and 200-
day moving averages.  Today's trading saw the stock break above 
the August highs and psychological resistance at $35.00.  
Furthermore, BBBY has just cleared bearish point-and-figure 
resistance and is signaling a fresh double-top buy signal.  The 
uptrending MACD indicates that BBY has more upside potential.  
Short-term traders can watch for a break above today's high of 
$35.58.  Such a move could open the door for a retest of 
intermediate-term resistance at $38.00.




--- 

Boston Scientific - BSX - close: 30.70 change: +0.54

WHAT TO WATCH: In sharp contrast to the DRG.X pharmaceutical 
index, shares of this drug-coated stent manufacturer have been 
uptrending for more than a year.  BSX consolidated in narrow 
range under $30.00 over the past six weeks.  The recent breakout 
above this resistance level must have the bears feeling pretty 
nervous.  Uptrending action in the daily stochastics (5,3,3) and 
MACD is hinting at a retest of the 52-week high of $32.50.  
Short-term traders could target a move to this level.  However, 
the double-top p-n-f buy signal is an indication that shares 
could head even higher and reach the next level of psychological 
resistance at $35.00.  Possible bullish action points include a 
move above Wednesday's high ($30.84) or a pullback to $30.00.
 



---

Clear Channel Comm. - CCU - close: 36.21 change: +0.79 

WHAT TO WATCH: Shares of this media giant have staged a breakout 
above stubborn resistance at $35.00.  Helping to propel the stock 
higher was yesterday's news that Merrill Lynch initiated coverage 
on CCU with a "buy" rating.  Given the uptrending oscillators and 
lack of overhead resistance, odds seem good that the stock will 
make its way to the 200-dma at $43.97.  Shorter-term traders 
could look for a move to bearish point-and-figure resistance at 
$40.00.  P-n-f chartists will also note that a trade at $37.00 
would create a double-top buy signal.  Long entries could be 
gauged on a pullback to $35.00 or a move above today's high of 
$36.65.


 

--- 

Cisco Systems - CSCO - close: 13.57 change: +0.14

WHAT TO WATCH: The most recent downtrend in CSCO came to an end 
on Monday after shares briefly approached bullish support on the 
point-and-figure chart.  The subsequent bounce has taken the 
stock back above its 50-dma at $13.49.  CSCO outperformed the 
NASDAQ today and posted a 1.0% gain.  This relative strength, 
combined with the uptrending MACD and daily stochastics, are 
signs that shares will continue higher in the short-run.  
Aggressive traders could target entries at current levels, with 
an initial profit target near the $15.00 mark.




--- 

Delphi Corp - DPH - close: 10.41 change: -0.12

WHAT TO WATCH: Traders who have a high risk tolerance may want to 
take a look at DPH.  The stock has spent the better part of the 
past two months recovering from its precipitous June/July sell-
off.  This week's action has seen shares move over the 
psychologically important $10.00 level and rally above the 50-dma 
at $10.22.  Investors seem to be pleased with Monday's news that 
Delphi had won eight new contracts to provide steering columns.  
These are expected to add more than $335 million in annual sales 
revenue to the bottom line.  A glance at the bar chart shows that 
the stock has plenty of upside potential.  DPH is currently in a 
"fast-move" region that extends up to the $13.00 area, where the 
stock briefly found support in early-July.  A favorable 
risk/reward ratio could be created by taking long positions on a 
move above the relative high of $10.65 and using a stop slightly 
beneath Friday's low of $9.88.  P-n-f chartists will notice that 
DPH has recently reversed into a column of "X's."




---

Fifth Third Bancorp - FITB - close: 63.06 change: -2.63

WHAT TO WATCH: FITB got whacked for a 4.0% loss today after the 
company revealed in an SEC filing that an accounting error would 
result in a $54 million charge.  Despite the shortened trading 
day, volume was heavy at almost twice the daily average.  This 
sell-off took shares well under the 50-dma and 200-dma, the 
latter of which had provided support for nearly a month.  FITB 
has also plowed into bullish p-n-f support at $63.00.  With the 
stock signaling a fresh double-bottom sell signal and oscillators 
heading lower, more downside could be in store.  Traders can 
think about going short if shares fall below today's low of 
$62.76.  Further enthusiastic selling could quickly drag FITB 
down to the $58-$60 region.




--- 

Pepsico Inc - PEP - close: 39.49 change: -0.44

WHAT TO WATCH: There's not much recent news to speak of for 
Pepsico, but the company's stock looks technically poised to 
break higher in the near future.  Shares have bounced nicely from 
the relative low of $37.01 and are resting just below the $40.00 
level.  Bullish traders could target entries on a move above 
$40.45.  This would put PEP in its August 28th gap, which was 
created when a brokerage downgraded the stock.  Overhead 
resistance looms at the 50-dma ($41.89).  However, the rising 
oscillators suggest that PEP may eventually retrace its entire 
late-August decline and reach the $44.00 level.


 

---

Texas Instruments - TXN - close: 20.65 change: +0.17

WHAT TO WATCH: TXN has spent the past six months trading in a 
clearly-defined descending regression channel.  Shares recently 
rebounded to the top of this channel, which is bolstered by the 
50-dma at $21.82.  The bulls are faced with an additional 
obstacle at $22.00, which is the location of bearish p-n-f 
resistance.  The daily stochastics (5,3,3) are already 
approaching overbought levels, indicating that TXN will have a 
very tough time leaping over this hurdle.  Short entries can be 
targeted on a move under today's low ($20.55), which would help 
to confirm a rollover.  We'd be looking for shares to fall below 
psychological support at $20.00 and retest the relative lows near 
$18.50. 





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

Duke Energy - DUK - close: 23.31 change: -0.78 stop: 25.67

Company Description:
Duke Energy is a diversified multinational energy company with an 
integrated network of energy assets and expertise. The company 
manages a dynamic portfolio of natural gas and electric supply, 
delivery and trading businesses -- meeting the energy needs of 
customers throughout North America and in key markets around the 
world (source: American Stock Exchange)


- ORIGINAL WRITE UP: September 10th, 2002 -
 
Why We Like It:
Leading the broader market higher from its July lows was the 
Utility index. From it's all-time low on July 24th to the 
relative high five weeks later, the UTY.X exploded for a 35% 
gain. This rally appears to have simply been the result of 
oversold conditions rather than positive sector news. The index 
has been retracing these gains for the past two weeks and appears 
to be picking up bearish head of steam. Moving in tandem with the 
utility group, DUK is also looking top-heavy. Last week the stock 
repeatedly bumped its head against the descending 50-dma 
($25.65), only to fall below psychological support at $25.00. 
Shares experienced heavy selling today and spiked under 
intermediate-term support at $24.00. A full-blown breakdown below 
this level could bring more bears out of the woodwork. Although 
the daily stochastics are already pinned at oversold, the 
declining MACD and rising volume are signs that DUK will continue 
lower in the near-term. By entering this short play on a move 
below $23.75, we're hoping to ride DUK down to the $20.00 region. 
Our stop (if triggered) will be located at $25.67, just over the 
50-dma. More conservative traders may want to use a stop slightly 
above $25.00.

- Play-of-the-Day Comments: September 11th, 2002 -

It looks like yesterday's violation of the $24.00 support level 
really spooked the bulls.  DUK underperformed the broader market 
today and finished with a 3.2% loss.  Our short play was 
activated within the first half-hour of trading when shares 
reached $23.74.  Although we're keeping our stop-loss set just 
above the 50-dma, more conservative traders could use a stop 
slightly above today's high ($24.20).  The rising volume over the 
past four days (today's reading was the highest in over a month!) 
and rolling MACD suggests that DUK will be subjected to more 
selling pressure.  Those who are still looking to go short can 
consider entries on a move below $22.99.

Picked on September 11th at $23.74
Results since picked:        +0.43
Earnings Date             10/15/02 (unconfirmed)
 





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






PremierInvestor.net Newsletter                Wednesday 09-11-2002
                                                   section 2 of 2
Copyright  2002, All rights reserved.
Redistribution in any form is strictly prohibited.

The entire newsletter is best viewed in COURIER 10 for alignment
=================================================================

In section two:

Net Bulls Tech Stocks
  Stop Adjustments:      CTSH     (Bullish)
  Closed Long:           SBC      (Bearish)
Active Trader Non-Tech Stocks
  Triggered Plays:       CLX      (Bullish)
                         AGN, DUK (Bearish)
High Risk/High Reward Plays
  Triggered Plays:       CA, SCH  (Bullish)


Trading Ideas
  Value Plays With Bullish Signals
  Breakout to Upside (Stocks $5 to $20)
  Breakout to Upside (Stocks over $20)
  Breakout to Downside (Stocks over $20)
  Recently Overbought With Bearish Signals (Stocks over $20)


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

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

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

Cognizant Tech. - CTSH - cls: 63.68 chg: +0.87 stop: 59.65 *new*

CTSH added 1.3% today and reached a new 52-week closing high.  
This relative strength bodes well for an eventual rally to our 
profit-target at $68.49.  At this time we're going to raise our 
stop loss to $59.65, just under Monday's low.  More aggressive 
traders could keep stops set under last Friday's low of $58.56.





===============
NB Closed PLay
=============== 

Closed Short Play
=================

SBC Communications - SBC - cls: 25.85 chg: +0.97 stop: 25.06 

Broader market strength had shares of SBC gapping higher at the 
beginning of today's abbreviated session.  Our play was stopped 
out at the opening trade of $25.50.  This represents a 7.2% gain 
from our original entry point.  With the daily stochastics 
trending higher and the MACD on the verge of a bullish crossover, 
SBC looks like it may retest its 50-dma at $27.10.  A rollover 
from this level might provide another shorting opportunity, 
especially if the IXTCX combined telecom index is simultaneously 
rolling from overhead resistance near 106.

Picked on August 21st at $27.49 
Results since picked:     +1.99
Earnings Date          07/23/02 (confirmed)




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

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

Triggered Bullish Plays 
-----------------------

Clorox Corp - CLX - close: 43.45 change: +0.15 stop: 41.99

Finally!  After more than a week of waiting, CLX reached our 
entry trigger of $43.49 on Wednesday.  Shares actually gapped 
slightly above this level, so our hypothetical trade was 
initiated at the opening price of $43.63.  With the stock now at 
multi-month highs, we're looking for a near-term rally to the 
$47-$48 region.  New entries can be gauged on a move above 
$44.00.  Our stop is located at $41.99.




Triggered Bearish Plays 
-----------------------

Allergan - AGN - close: 54.14 change: -1.02 stop: 57.76

Our short play in AGN was activated this afternoon when the stock 
hit our action point at $54.69.  Shares fell steadily throughout 
the session and hit a new relative low of $54.00.  Traders still 
looking to open bearish positions could watch for a break under 
this level.  Our stop is set at $57.76.




---

Duke Energy - DUK - close: 23.31 change: -0.78 stop: 25.67

It looks like yesterday's violation of the $24.00 support level 
really spooked the bulls.  DUK underperformed the broader market 
today and finished with a 3.2% loss.  Our short play was 
activated within the first half-hour of trading when shares 
reached $23.74.  Although we're keeping our stop-loss set just 
above the 50-dma, more conservative traders could use a stop 
slightly above today's high ($24.20).  Those who are still 
looking to go short can consider entries on a move below $22.99.






=================================================================
High Risk/High Reward Plays (HR) section
=================================================================

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

Triggered Bullish Plays 
-----------------------

Computer Assoc. - CA - cls: 11.84 chg: -0.22 stop: 10.94 *new*

CA gapped higher with the NASDAQ on Wednesday morning.  Our long 
play was activated at the opening price of $12.35.  Shares pulled 
back with the broader market in afternoon trading and finished 
with a loss of 1.8%.  On Thursday we'll be watching for CA to 
move above today's high ($12.37) and rally towards the August 
high of $12.98.  Note that because our entry point was slightly 
higher than anticipated, we've raised our stop-loss to $10.94.




---

Charles Schwab - SCH - close: 10.02 change: -0.06 stop: 9.44

We liked SCH as a long play, but only if stock cleared Tuesday's 
high of $10.28.  With shares gapping higher this morning, our 
play was triggered at the opening price of $10.55.  Although 
shares drifted lower throughout the session, bulls can be 
encouraged by the close above $10.00.  If SCH heads higher on 
Thursday, new entries can be gauged on break above the 100-dma at 
$10.56.






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

PCG     Pg&E Corp                 12.87     +0.52
WGO     Winnebago Industries      43.75     +1.05
SMD     Singing Machine           11.80     +0.80
JOSB     Jos A Bank               22.05     +2.00
GLYN     Galyans Trading          11.12     +0.67

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

CMLS     Cumulus Media Inc.       16.49     +1.02
OIIM     O2micro International    10.49     +1.04

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

ROOM     Hotel Reservations Ntwrk  48.01     +1.49
ASCA     Ameristar Casinos Inc.    21.97     +1.31
BSTE     Biosite Inc.              27.35     +1.58
ABFS     Arkansas Best             28.27     +1.10
ENR     Energizer Holdings         31.02     +1.08

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

FITB     Fifth Third Bancorp       63.06     -2.63
HON     Honeywell International    28.52     -1.68
OTTR     Otter Tail Corp           23.80     -1.28

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

RLI     Rli Corp.                  57.60     -1.05


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