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Daily Newsletter, Wednesday, 09/18/2002

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PremierInvestor.net Newsletter              Wednesday 09-18-2002
                                                  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:      The Matador Usually Wins
Watch List:       A, AMAT, DAL, IBM, PSFT, PNRA, WY, and more...
Play of the Day:  Chain Reaction


******************************************************************
MARKET WRAP  (view in courier font for table alignment)
******************************************************************
09-18-2002                High    Low     Volume Advance/Decl
DJIA     8172.45 - 35.10 8253.53  8051.91  1752 mln   532/1210
NASDAQ   1252.13 -  7.81 1263.90  1233.08  1560 mln   472/1057
S&P 100   435.99 -  2.56  441.04  429.93   totals     1004/2267
S&P 500   869.46 -  4.06  878.45  857.39
RUS 2000  376.75 -  2.56  379.83  373.27
DJ TRANS 2162.72 - 40.97 2200.88  2153.38
VIX        40.89 -  1.07   44.30  40.30
VIXN       59.33 -  1.06   61.76  57.45
Put/Call Ratio 1.36
******************************************************************


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

The Matador Usually Wins

by Steven Price

We had an interesting batch of conflicting data and news stories 
this morning.  First of all, the markets tanked on news from J.P. 
Morgan that they would be reducing their earnings forecast due to 
credit losses and lower trading revenue.  The reaction was 
dramatic, as earnings forecasts were slashed on the bank.  Lehman 
cut its forecast from 0.58 to 0.38 and lowered its price target 
on JPM from $31 to $23.  Fitch ratings downgraded the bank's 
debt, as did Standard and Poor's, which said that it could lower 
the rating once again if trading problems persist in the fourth 
quarter.  JPM has been estimated to have as much as $20 trillion 
(yes, I said trillion) of derivatives positions on its books, 
which is another source of tremendous risk for the company.  They 
are the world's largest holder of gold derivatives.  Two percent 
of a bank's derivatives exposure is usually considered at risk in 
the normal course of business. Two percent of $20 trillion is 
$400 billion.  Considering a market cap of $37 billion for JPM, 
we could be seeing a lot more red on its chart than we already 
have.  I am not saying that JPM could not profit from this 
portfolio, rather than lose, but the risk is enormous.  The 
credit problem was pinned on loans to the telecom sector, which 
resulted in an increase of $1 billion in bad debt.  

If JPM is seeing high default rates from the telecoms, there are 
undoubtedly other banks with similar problems.  While they may 
not have the same amount of exposure, we could still see some 
heavy losses.  Taking this pattern a step further, there are 
other sectors that have performed horribly and seen financial 
problems as well.  How many of these are also having problems 
making payments?  How many banks are suffering from bad debts 
that we have not yet heard about?  I think this announcement 
could just be the tip of the iceberg and I would stay away from 
playing the banks long on anything but a short-term basis. 

On the positive side, the U.S. trade deficit decreased by 6 
percent in July, to $34.6 billion.  Exports increased for the 
fifth straight month, while June's record trade deficit was 
revised downward to $36.8 billion from $37.2 billion.  

Inflation also appears to be peaking its head back out, as the 
consumer price index rose 0.3 percent.  The core rate, which 
excludes the more volatile food and energy components, was also 
up by the same amount.  Those increases were a bit higher than 
forecasts of 0.2 percent.

Oracle released earnings after the bell yesterday.  They met 
expectations, but issued cautious statements.  The company's 
earnings fell 33 percent from last year and Jeff Henley, Oracle's 
CFO said, " We think the worst is over, and we think we'll see 
gradually better year-over-year numbers ... but it's still a 
difficult, slow recovery. We're being very cautious with our 
business planning at this point."  These comments weighed heavily 
on the markets this morning as well, as the Nasdaq started the 
day down 15 points.  Oracle ended the day down 8 percent (0.73) 
at $8.30.

I have been writing recently about the bearish head and shoulders 
pattern forming across the broader indices. Yesterday's action in 
the Dow led to a definitive neckline break, as the index closed 
below 8305, which was the 50% retracement of its gains from July 
24 to August 22.  The neckline can be drawn from several 
different points, but there wasn't much to argue about in 
yesterday's Dow breakdown. The previous low at that support level 
was set on September 5 in the Dow.   The Nasdaq Composite 
(COMPX), however, is a slightly different story. The September 5 
low, which is also the point at which there is little argument 
about a neckline break, was 1251.00. The September 5 low is also 
the last significant support level above 1200.  The Nasdaq traded 
as low as 1233.08 this morning and a breakdown appeared certain.  
However, much like the action in the Dow when it was testing the 
50% retracement level the week of September 5, a rally boosted 
the Nasdaq back above the crucial level.

Chart of the Nasdaq Composite (COMPX)


After the bell, Electronic Data Systems (EDS) warned that they 
would miss expectations for the third and fourth quarters, as 
well as the full year.  EDS said that lack of demand for 
infrastructure technology services is very soft and lowered 
earnings estimates from 74 cents to 12 to 15 cents for the third 
quarter.  Although it was halted in after hours trading, rival 
IBM was trading down $3.55 to $66.00.  This should be the kicker 
that takes the Nasdaq back down below that 1251 level and on its 
way to 1200.  While neither IBM nor EDS are Nasdaq stocks, IBM is 
the biggest of the techs and should tip the scales. As a Dow 
stock, it may also lead us back below today's low of 8051.91.   
IBM is the third heaviest weighted stock in the Dow, and a 
significant move could speed the process toward re-testing July's 
low.

Today's low got us within 21 points of 8030, which is the last 
significant support level between where the index is currently 
trading and the July low of 7532. I had planned on writing about 
the strength of the intraday turnaround, but if IBM does not 
rebound from its $3.50 dollar drop after the close, it is likely 
we will see tomorrow's action take us below 8030.  This 
afternoon's rebound brought us back above the 61.8% retracement 
level and it appeared that this might be the next level of 
consolidation.  However, given the news after the bell, I am no 
longer confident that this level will hold.

Chart of The Dow


In what appears to be more bad news for the brokerage sector, 
Merrill Lynch announced after the bell that they have fired Vice 
Chairman Thomas W. Davis and Schuyler Tilney, an investment 
banking managing director, for refusing to testify in the SEC and 
Department of Justice investigation of financial transactions 
Merrill completed with Enron.  Merrill sold off after the 
announcement, as investors worry what the two executives are 
hiding.  A refusal to testify does not always mean the subject is 
hiding something, however.  The way the law is structured, it 
rarely benefits a potential defendant to speak up on his own 
behalf.  Statements made for your own benefit are not admissible 
in court, while statements made against your own interest are 
allowed.  Therefore, there is little to gain by speaking up on 
your own behalf and many attorneys counsel clients to simply 
remain quiet.  Regardless of this rule, investors don't like 
hearing about non-cooperation in a government probe, especially 
when it has turned up many violations already.

A development that did not get much media play today, but could 
have serious effects on our economy, was an informal agreement 
between OPEC members to leave oil production quotas unchanged.  
There had been predictions that they would raise their official 
quota of 21.7 million barrels a day at the September 19 meeting 
in Osaka, Japan, in order to bring the per barrel price down to 
palatable levels.  But even Saudi Arabia, the world's largest 
producer of crude oil, apparently has agreed to leave current 
quotas unchanged. They had previously come out in support of 
raising quotas. This is partially the result of the fact that the 
OPEC members have actually been overproducing by about 1.7 
million barrels per day, and will simply "cheat" on the current 
quota, rather than raise it.  The problem for the U.S. is that 
the country's crude oil inventories have contracted by 15.3 
million barrels in the last three weeks, and now stand at the 
lowest level, 287.8 million barrels, since March 2001.   Heading 
into the winter, this could squeeze prices even higher than they 
are now - and that does not include the possibility of an 
invasion into Iraq.  Crude Oil Futures jumped again today, as 
news of the unchanged quotas seeped out.  A vote by Congress 
authorizing military action in Iraq will almost certainly push 
the price of futures over $30 per barrel.  With an economy that 
is already growing at a very slow pace, increasing fuel costs 
could have a pronounced effect on all industries, as well as 
cutting into discretionary spending by consumers who will be 
paying higher prices at the pump. 

Chart of Crude Oil Futures



With so many factors weighing on the markets today, look for a 
much lower open tomorrow.  A hold above the 8000 level in the Dow 
could be viewed as bullish, however, the overall trend appears as 
though it is just a matter of time before we re-test July's lows.  
The put/call ratio is once again growing and now stands at 1.36, 
which shows an even greater number of puts trading than calls.  
While this is not an exact science, experience on the floor has 
taught me that puts trade when the smart money is bearish, and 
they trade more than calls when the smart money is very bearish. 
There will be pockets of opportunity from the long side, but 
remember that when the trend is down, the longs are usually 
short-term plays.  Choose your plays carefully and don't lose 
sight of the big picture.

Steve Price


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

Agilent Technologies - A - close: 14.75 change: -0.01 

WHAT TO WATCH: Today's earnings warning from CLS provided 
evidence of weakness in the electronics-manufacturing sector.  
Agilent isn't directly related to Celestica, but it's likely 
suffering from similar business difficulties.  From a technical 
perspective, A is looking pretty weak.  Shares have been 
pressured by a descending trendline that extends back to late-
July, and the recent rollover from that level of resistance seems 
to have renewed the bears' conviction.  The three-box point-and-
figure reversal and falling daily stochastics are indications 
that A may retest (or surpass) its multi-year low of $12.76.  A 
move below $14.25 would provide a possible action point for 
bearish entries.




--- 

Applied Materials - AMAT - close: 12.22 change: +0.02

WHAT TO WATCH: Another day, another multi-year low for the SOX.X.  
Although the daily stochastics suggest the index is oversold, the 
lack of any positive tech news has kept the bulls on the 
sidelines.  Tonight's earnings warning from EDS will probably 
weigh heavily on the NASDAQ tomorrow.  AMAT will be hard-pressed 
to maintain support at $12.00 if the chip sector continues to get 
whacked.  A move under this level would create a double-bottom 
sell signal on the point-and-figure chart and could result in a 
decline to psychological support at $10.00. On the other side of 
the coin, AMAT may be a decent long play for those who believe a 
semiconductor rebound is just around the bend.  Speculative 
traders could take bullish positions at current levels with a 
stop just under $12.00.  Should the sell-off continue, potential 
downside risk would be minimal.




---

Delta Airlines - DAL - close: 12.77 change: -1.47

WHAT TO WATCH: The XAL.X airline index hit an all-time low today 
after it fell through support at the 40.00 mark.  Pressuring the 
group were negative comments from Merrill Lynch, who downgraded 
CAL, NWAC, and DAL.  The company's analyst said he does not 
expect the airline industry to be profitable until 2004.  Among 
the many stocks in the group that are in the process of breaking 
down, DAL looks like a particularly good short candidate for 
aggressive traders.  Shares fell below the $13.25 support region 
on Wednesday and set a new multi-year low, which in turn produced 
a quadruple-bottom sell signal on the point-and-figure chart.  
This is a not a good sign for the bulls.  With the MACD recently 
crossing below the baseline, a test of psychological support at 
$10.00 could be in the cards.  Entries can be targeted on a move 
below today's low of $12.60.


 

---  

Ford Motor Co. - F - close: 10.26 change: -0.21

WHAT TO WATCH: Ford traded in the single digits today for the 
first time since 1993.  Shares rebounded with the broader market 
in afternoon trading and finished above the $10.00 mark, but this 
may have only been a temporary reprieve for the bulls.  The 
overall automotive sector is hitting the skids, the broader 
market seems to be tanking, and F has no immediate underlying 
support levels.  Aggressive traders could evaluate short entries 
on a break under today's low of $9.92.  Loose historical support 
in the $8.00 region offers a potential profit-target to aim for.




--- 

Intl Business Machines - IBM - close: 69.52 change: -2.23

WHAT TO WATCH: If you've already read tonight's Market Wrap, 
you're aware that IT stalwart EDS announced an earnings warning 
after the closing bell.  Maybe "warning" is an 
understatement...The company lowered Q3 expectations from 74 
cents to only 12-15 cents.  Ouch!!  This news had shares of 
competitor IBM trading near the $66.50 level in after-hours 
action.  The stock was already looking weak after today's action, 
which saw shares break under bullish p-n-f support on strong 
volume.   At this point a retest of the multi-year low ($65.00) 
appears likely.  However, given the broader market negativity, 
IBM could easily make its way towards the current bearish p-n-f 
count of $60.00.  The (probable) gap lower tomorrow will make it 
difficult to gauge entries, but failed intraday rallies may offer 
action points to open short positions.  Aggressive traders could 
even target a breakdown below $65.00.




---

Michaels Stores - MIK - close: 45.70 change: -0.20 

WHAT TO WATCH: Michaels stock was bid higher in early September 
after the company announced a 6% increase in same-store sales for 
the month of August.  This followed a strong Q2 earnings report 
that included a raised outlook for full-year results in 2002.  
Although this fundamental strength is impressive, MIK looks 
overdue for a pullback to consolidate its recent gains.  The past 
week has seen the stock begin to rollover from just below the 
$50.00 mark.  The MACD has just produced a bearish crossover from 
very high levels.  Interestingly, the most recent bearish 
crossover (in mid-June) came before a substantial sell-off.  The 
p-n-f chart has reversed into a column of O's, presenting the 
bears with more technical ammunition.  Short positions can be 
considered on a move below today's low ($44.65), with an initial 
profit target near the 50-dma at $39.82.


 

--- 

PeopleSoft Inc. - PSFT - close: 13.94 change: -0.29

WHAT TO WATCH: Tech bulls had been hoping that ORCL would save 
the day with last night's earnings announcement.  With the GSO.X 
software index trading near all-time lows, even mildly positive 
comments could've triggered a short-covering rally.  Alas, there 
wasn't much good news to be had.  The company guided sales and 
profit estimates towards the low end of analyst expectations for 
the current quarter and reported a 33% reduction in year-over-
year net profit.  Investors responded by slamming ORCL for an 
8.0% loss.  PSFT declined with the overall software sector and 
fell to a fresh multi-year low.  Aggressive traders could think 
about going short if the stock falls below historical support at 
$13.00.  Continued weakness in the GSO.X could drag PSFT down to 
the $10.00 region.




--- 

Panera Bread Co. - PNRA - close: 25.31 change: +1.07

WHAT TO WATCH: PNRA bounced enthusiastically from historical 
support at $24.00 on Wednesday.  With underlying point-and-figure 
support at $22.00, the bears may have decided to take their gains 
off the table.  The stock had spent most of the prior month 
trending lower from the August highs near $35.00.  As could be 
expected, today's rebound has led to uptrending action in the 
MACD and daily stochastic oscillators.  By using a stop just 
under today's low of $23.64, long entries with a decent 
risk/reward ration could be targeted on move above $25.85.  The 
200-dma at $30.22 presents a possible profit-target, although 
shorter-term traders could target the 50-dma at $29.05.




--- 

Weyerhaeuser Co. - WY - close: 49.78 change: -0.48

WHAT TO WATCH: With sector leader IP leading the way lower, the 
FPP.X forest/paper products index sank to a new multi-month low 
on Wednesday.  Further downward action could soon have the FPP 
falling below the multi-year lows at 270.  WY is breaking down as 
well, having just fallen below psychological support at $50.00.  
The bearish oscillators are hinting at a retest of the 2001 lows 
near $42.00.  In terms of action points, traders can watch for a 
move below $49.00.  This would produce a double-bottom sell 
signal on the point-and-figure chart.  Other possible shorts in 
the paper sector include IP, BCC, and SSCC.





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

Diamonds - DIA - close: 81.42 change: -0.74 stop: 85.57

Company Description:
The Diamonds Trust is a Dow Jones tracking stock that
is traded on the AMEX.


- ORIGINAL WRITE UP: September 17th, 2002 -
 
Why We Like It:
It's getting awfully tough for the bulls to make their case that 
a substantial economic upturn is just around the corner.  This 
past week alone has seen no less than three of the thirty Dow 
Jones components issue an earnings warning.  HON got whacked last 
Thursday after the company lowered estimates and said the 
economic recovery was not materializing.  MCD gave shareholders a 
severe case of indigestion today after they said lower-than-
expected sales in the U.S. and Europe would result in lower 2002 
earnings.  The coup de grace came after the closing bell today, 
when JPM guided lower on rising loan losses and weak trading 
results.  Both Fitch and S&P reacted to this news by lowering the 
company's credit rating.

Overall this triumvirate of warnings paints a very bearish 
picture for the economy.  The JPM news in particular is a sign of 
macroeconomic distress.  McDonalds' declining sales could be a 
result of increased competition or a more health-conscious 
public.  Honeywell blamed their lack of revenue on a tepid post-
9/11 aviation industry.  But when one of the world's largest 
banks can't meet estimates, a certain amount of widespread 
financial weakness is implied.  This seems to be reflected in the 
broader market.  A cursory glance at the Dow-30 that the 
following stocks are trading at or near 52-week lows: AA, CAT, 
HON, INTC, IP, JPM, and MCD.  That's 23% of the index...And 
warning season isn't even over yet!

Technically, the Dow looks like it could eventually retest the 
7600 region.  The index has been downtrending ever since it gave 
a triple-bottom point-and-figure sell signal in late-August.  
Today's action saw a failure of near-term support at 8250.  With 
bullish p-n-f support also recently giving way, an eventual 
retest of the 7600 region appears likely.  By shorting the DIA 
(which trades in tandem with the Dow Jones) on a move below 
$81.99, we're aiming to capture a move to our profit-target at 
$76.26.  Of course, the JPM news will probably have the DIA 
gapping lower on Wednesday morning.  We will not enter this play 
if the stock opens under $81.00.  If our entry conditions are 
met, we'll use an initial stop-loss of $85.57.  This will give us 
the protection of the 50-dma.  We'll quickly tighten our stop
if/when this play begins to work to our advantage.

- Play-of-the-Day Comments: September 18th, 2002 -

The Dow Jones traded sharply lower this morning following last
night's JPM warning.  Our short play in the Diamonds was 
triggered at the opening price of $81.41.  An intraday rally 
briefly carried the Dow into positive territory, but the final 
half-hour has met with heavy selling after the index rolled over 
from the 50-pd moving average on the 30-minute chart.  In 
breaking news tonight, shares of EDS were taking a bath in after-
hours trading after the company announced a severe earnings 
warning.  Competitor IBM was trading lower in sympathy.  Barring 
any new overnight developments, it looks like this Dow component 
will gap lower tomorrow morning.  Big Blue is already looking 
technically weak and may soon test its multi-year lows.  That 
doesn't bode well for the broader market bulls.  On Thursday 
we'll be looking for DIA to fall below today's low and crack 
psychological support at $80.00.  Such a breakdown would offer a 
fresh entry point for traders still looking to get short. 

Picked on September 18th at $81.41
Results since picked:        -0.01
Earnings Date                  N/A
 






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

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

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




PremierInvestor.net Newsletter               Wednesday 09-18-2002
                                                   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:

Stock Bottom / Active Trader
  Triggered Plays:       BDK, DIA (bearish)
  Stop Adjustments:      CUM (bearish) 

Split Trader
                         RMCI: 3-for-2 split announcement

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)


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

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

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

Black & Decker - BDK - close: 41.72 change: -0.20 stop: 44.33

With the broader market seeing heavy selling on Wednesday 
morning, BDK gapped lower and quickly hit our entry trigger at 
$41.69.  Shares matched the Dow Jones' decline and finished in 
the red by 20 cents.  The next task for the bears will be to push 
BDK below psychological support at $40.00.  A failure of this 
level might provide another action point to get short.  Now that 
we've activated this play, our stop is set at $44.33.




--- 

Diamonds - DIA - close: 81.42 change: -0.74 stop: 85.57

The Dow Jones traded sharply lower this morning following last 
night's JPM warning.  Our short play in the Diamonds was 
triggered at the opening price of $81.41.  An intraday rally 
briefly carried the Dow into positive territory, but the final 
half-hour has met with heavy selling after the index rolled over 
from the 50-pd moving average on the 30-minute chart.  On 
Thursday we'll be looking for DIA to fall below today's low and 
crack psychological support at $80.00.  Such a breakdown would 
offer a fresh entry point for traders still looking to get short.





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

Cummins Inc - CUM - close: 25.21 change: -1.54 stop: 26.76 *new*

Shareholders of CUM suffered a 5.7% loss on Wednesday.  The sell-
off came on the strongest volume in nearly two months, and shares 
finished only 16 cents off the worst levels of the day.  With CUM 
trading at fresh multi-year lows, we'll now be watching for 
psychological support at $25.00 to give way.  Aggressive short-
term traders could target new entries if this occurs.  In light 
of today's action we've elected to move our stop down to $26.76, 
just above yesterday's low.  This should protect a small gain 
from our action point at $26.99.






==================================================================
Split Trader (ST) section
==================================================================

Split Announcements
-------------------

Right Management to Split Stock 3-for-2

Before the market opened this morning, Right Management 
Consultants, Inc. (NASDAQ:RMCI) announced that its Board of 
Directors had approved a 3-for-2 stock split.

The split will be effected on October 15, 2002 to stockholders of 
record on October 1, 2002.

RMCI also split 3-for-2 in April and November of 2001.  The stock 
has been downtrending since it set an all-time high in May, but 
recently broke above short-term resistance at $24.00.  RMCI has 
risen by roughly 35% year-to-date, and trades on an average volume 
of 150K shares/day.

The stock closed at $23.52 on Tuesday.  For a current quote, click 
here:

http://user.financialcontent.com/pin1/quote.cgi?account=pin1&ticker=RMCI

About the company
Right offers services to companies of all sizes through a global 
network of more than 300 service locations and the Internet. The 
company is a worldwide leader in customized career transition 
solutions and also offers a wide range of organizational 
consulting services, including talent management, leadership 
development and organizational performance services. (source: 
company press release)


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

SGR     The Shaw Group             16.12     +0.53
ESE     Esco Technologies          33.01     +1.11

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

STN     Station Casinos Inc       15.75     +1.24

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

TM      Toyota Motor Corp ADS      53.13     +3.22
ABT     Abbott Labs                40.42     +1.83
SNE     Sony Corp                  45.01     +1.80
PDCO    Patterson Dental           52.63     +2.13
ELAB    Eon Labs Inc               22.97     +1.31
RHB     Rehabcare Group Inc        24.84     +1.45

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

IBM     Intl Business Machines     69.55     -2.20
JPM     JP Morgan Chase & Co       20.44     -1.11
CAH     Cardinal Health Inc        62.66     -1.24
IP      International Paper        33.55     -1.11
EDS     Electronic Data Systems    36.46     -1.30
DHR     Danaher Corp               53.24     -1.25
MTB     M&T Bank                   75.37     -2.93
EQR     Equity Residential         25.29     -1.09
EL      Estee Lauder Cos Inc       29.30     -1.06
ITT     ITT Industries             62.69     -1.12
ZION    Zions Bancorp              48.04     -1.69
ETN     Eaton Corp                 63.38     -1.48
CBSS    Compass Bancshares         30.16     -1.06

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

NAB     National Australia Bank    97.30     -1.20
JASA    Jo-Ann Stores Inc          29.80     -1.01
BSX     Boston Scientific Corp     28.93     -1.93
 



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