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Daily Newsletter, Wednesday, 10/16/2002

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PremierInvestor.net Newsletter              Wednesday 10-16-2002
                                                  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 Great Pretenders
Watch List:       ADBE, ADRX, GM, MXIM, WB, and more...
Play of the Day:  Can't Change the Channel


******************************************************************
MARKET WRAP  (view in courier font for table alignment)
******************************************************************
10-16-2002                High    Low     Volume Advance/Decl
DJIA     8036.03 - 219.65 8232.10 8013.41  1787 mln   303/1460
NASDAQ   1232.42 -  50.02 1253.61 1229.06  1406 mln   385/1008
S&P 100   436.19 -   7.07  447.26  425.54   totals    688/2468
S&P 500   860.20 -  21.25  881.27  841.44
RUS 2000  350.85 -   9.67  360.63  346.53
DJ TRANS 2201.30 -  85.16 2285.25  2182.73
VIX        41.97 +   2.23   49.71  46.28
VIXN       56.87 +   0.50   59.76  56.87
Put/Call Ratio 1.25
******************************************************************


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

The Great Pretenders

by Steven Price

It appears that several of yesterday's contenders have been 
exposed as pretenders, instead.  Stocks such as General Motors 
(GM), Citigroup (C) and Motorola (MOT) have seen a quick end to 
last week's rally, as earnings from both the companies 
themselves, and competitors, have shown the spotlight a little 
brighter on the fourth quarter outlooks.  Last night's Intel 
earnings miss and comments about the fourth quarter got the ball 
rolling, but it should have been apparent even before that 
release that the good news wasn't really so good. 

Citigroup (C) included the sale of assets in their earnings 
release, which is a one-time occurrence.  If they are relying on 
this type of income to meet earnings, then I get the feeling they 
are looking hard for ways to prop up the stock.  With so many 
problems relating to bad debt and trading losses permeating the 
banking sector, it is hard to imagine that Citigroup doesn't face 
many of the same challenges. They have not (yet) announced 
problems in those areas, which makes me think there may be a time 
bomb somewhere on the horizon.  Especially considering the broad 
base of problems at J.P. Morgan, which released figures today. 


J.P. Morgan Chase (JPM) beat earnings estimates, but profits 
still fell 95% from a year ago.  The company announced 2000 
additional job cuts, and hinted that there may be more to come.  
Vice Chairman Marc Shapiro said," We're going to continue to 
adjust our expenses to fit our revenues."  The company said it 
was committed to maintaining its dividend and the regular payment 
of that dividend at least for this quarter.  JPM's investment 
banking unit lost over $250 million, compared to a $700 million 
profit a year ago.  Underwriting revenues also fell 18%.  Trading 
revenues fell from $1.5 billion a year ago, to $370 million and 
fixed-income profits fell 50%.  One of the biggest problems for 
JPM was bad debt, which cost the company over a $1 billion.   
Shapiro said that the company was aggressive in getting large 
write-offs on the telecom sector in the rear view mirror, but 
that loans to energy trading firms were now starting to create 
problems for banks.

General Motors beat earnings yesterday by $0.21, which seems to 
be a huge margin.  However, the full year estimates would 
indicate a fourth quarter below expectations, when taking into 
account the third quarter numbers. The stock was also downgraded 
recently, citing deteriorating auto industry fundamentals and 
pricing pressure on new and used cars.  The company is already 
offering zero percent financing, which doesn't leave much room to 
account for lower prices without further damaging the bottom 
line.  Standard and Poor's, which cited increasing pension 
liabilities and weakening North American demand for autos, cut 
the company's long-term debt today.   S&P also said it may be 
cutting ratings on Ford (F), as well.   Ford beat earnings 
estimates today, but still lost money in the third quarter. The 
loss came out to about $53 for every vehicle built in North 
America.  It also announced that the return on its U.S. pension 
fund assets was down 15%, increasing its underfunded status to 
$6.5 billion, from $3.2 billion at the end of the previous 
quarter.   About 70% of the fund's assets are invested in stocks. 
The CFO said the company had enough cash to deal with the pension 
shortfall. If the stock market does begin to turnaround, a 
continued rally could bail GM and Ford out of some of their 
current pension fund problems.  However, it is a tenuous position 
to be in, considering the weak economic fundamentals.   GM is 
looking at a current shortfall of around  $20 billion. 

Boeing (BA) released earnings, which fell 43% from the year ago 
period.  The company saw its commercial airplane revenue sink 
24%, as it delivered 73 commercial jets during the quarter - 47 
fewer than last year. However, it lowered the delivery estimate 
for next year from 275-300 planes, to 275-285 planes, and said 
2004 should see a similar range.  For the first time ever, in 
2003, Boeing's military and aerospace aircraft division will 
surpass its commercial division.  Another first is that rival 
Airbus will ship more planes than Boeing in 2003. The company 
also said that its commercial satellite and launch business would 
continue to struggle for several years. 


The Dow rally finally reversed direction today, as it ran into 
some important technical levels. The 1000-point gain of the last 
several days lost steam as it neared previous support, right 
around 8300.  In fact there are quite a few technical indicators 
between 8200 and 8400.   The 50-day moving average of 8277 was 
the first barrier.  The recent drop from August-October, which 
saw the Dow fall from 9077 to 7197, was the down leg of a head 
and shoulders formation, with the right shoulder base at 8305.  
That 8305 level was also the 50% retracement of the July-August 
rally and served as support on 7 out of 10 days prior to the head 
and shoulders breakdown in September.  In addition to these 
levels, there was also the 61.8% retracement of the recent drop, 
just above at 8359.  So the fact that we pulled back today was 
somewhat predictable, when looking at the overextended rally on 
no real good news, and the significant resistance overhead.  

Chart of the Dow Jones



Last night, Jim Brown pointed out in his Market Wrap the 
similarities between the appearance of the late July rally and 
the current rally.  What he couldn't point out yesterday was that 
today's pullback would stop at the same level as the rally in 
July did (8030 vs. 8036). 

Dow Comparison



After this morning's releases, the market geared up again for 
another big release after the bell.  IBM beat expectations by 
0.03 per share.  After selling off, following a dividend cut form 
EDS, last month, Big Blue has come back strong.  The stock traded 
as low as $54.01 before the recent rally.  It finished the day at 
$64.90, down $3.58.  However, after the earnings release, the 
stock traded as high as $70 after hours.  Profits were still off 
19% from last year, but investors apparently felt it had been 
oversold.

This probably means a rally in the morning, but whether or not 
the Dow can get through that 7300 level should tell us a lot.   
We have already seen a break in the trend of lower highs, and if 
we can set some higher lows the pullback, we could start to see 
the building blocks of a rally.  What makes me still highly 
skeptical is that the majority of reporting companies are still 
seeing poor results ahead.  Even if the market is somewhat 
oversold, the trend of reductions in capital spending continues. 
If the fourth quarter and 2003 estimates are being reduced now, 
it is likely that firms are still hoping for the best and the 
current reductions don't reflect the true dangers ahead.   After 
all, there is no reason for a company to let the cat completely 
out of the bag if there is a chance that things can turn around 
between now and then. 

On Monday, I included a graph of the Semiconductor Sector Index 
(SOX.X) that showed the index on the verge of a breakout. I 
looked back to the rebound attempt in late September as the 
measuring stick for the pattern of lower highs. The closing high 
of 256 and intraday high of 263 were both broken with Tuesday's 
rally.  The index also broke out of its descending channel.  So 
it appeared got that breakout yesterday, only to have the party 
spoiled by Intel's earnings miss and cautious comments going 
forward. Motorola (MOT) also warned that it would miss 
expectations for the fourth quarter and next year, and investors 
hammered it to its lowest level in 10 years. However, after the 
close today, QLogic (QLGC) beat expectations and was trading up 
over $2.50 after hours. Advanced Micro Devices (AMD) posted a 
larger than expected loss, but sales were in line with 
projections and it predicted higher sales and a smaller loss for 
the fourth quarter. This news, combined with IBM's surprise, may 
indicate that today's sector reversal may simply be a pullback on 
the way back up. It is hard to believe that is the case, with 
Intel's cautious comments being echoed by Novellus (NVLS), but we 
try to remember to trade what we see and the SOX may be giving us 
some long opportunities (I'm waiting for lightning to strike me 
for even mentioning chips as a long play).  A bear could point to 
the rebound attempt in August as the high which would have to be 
broken in order to break the trend, as well as the 50-dma looming 
overhead.  The 50-dma provided resistance to that rebound attempt 
in August, so I'm a little torn at the moment, but we should be 
aware of these different levels in deciding which way to play the 
sector. A decisive break above the 50-dma would certainly provide 
bulls with a little more fuel.

Chart of the SOX


Earnings season tends to bring an awful lot of whipsawing.  
Things look bleak, and then all of a sudden the world is a 
brighter place.  Intel warns, and then IBM beats expectations. If 
Microsoft has positive comments on Thursday, we may see the bulls 
in full stampede on Friday morning, only to sit back and think 
about the overall economic picture over the weekend. While we 
have seen some technical barriers crossed, I still have a hard 
time believing in a long-term rally.  When the unemployment lines 
shrink, and businesses begin talking about increasing capital 
spending, then I may start buying out of the money calls again.  
Until then, trading the swings for short-term moves still seems 
the most prudent plan. Today's pullback fell short of 8000, 
indicating we may now be seeing support at a previous level of 
resistance.  To the upside, the 8300-8400 range will be tough to 
break through.  Look for a bounce in the morning, on the heels of 
Big Blue, but look for the above outlined resistance to come into 
play soon thereafter.

Steven 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
---------------------------------

Adobe Systems - ADBE - close: 22.19 change: -0.90

WHAT TO WATCH: Technicians who were calling for ADBE to fill in 
its August 1st gap were satisfied with the past week's trading 
action.  Shares shot higher after clearing resistance in the 
$21.00 area, powered by the soaring NASDAQ.  This rally petered 
out at $24.16 yesterday, near the top of the aforementioned gap.  
Contrary to the broader market, ADBE actually trended lower 
during Tuesday's session.  The stock seemed to be pressured by 
news that Adobe had revealed a previously undisclosed Q4
restructuring charge in an SEC filing.  Not surprisingly, shares 
continued lower today with a 3.8% loss.  The bulls are suddenly 
faced with a deteriorating technical picture. The rollover from 
the upper end of the gap does not inspire confidence.  With the 
daily stochastics looking toppy, it looks like ADBE could retrace 
a healthy chunk of the recent gains.  The 50-dma near $20.00 
provides a possible exit target for short-term traders, although 
a retest of the $18.00 level wouldn't be out of the question if 
MSFT disappoints Wall Street with its Thursday earnings report.


 

--- 

Andrx Group - ADRX - close: 13.98 change: +0.52

WHAT TO WATCH: Shares of ADRX were hammered on Monday after a 
federal court ruled that the company's generic version of 
Prilosec (an anti-heartburn drug) would infringe upon 
AstraZeneca's patents.  The stock lost more than 40% of its value 
as investors reacted to the loss of what had previously been seen 
as a lucrative revenue source.  However, the bears may have over-
played their hand.  Although the prospects for an overturned 
ruling are slim, Andrx plans to appeal the decision.  But even 
without generic Prilosec, the company still has various other 
drugs coming to market.  The sell-off appears to have been 
overdone.  ADRX has experienced a sold rebound and is currently 
filling in Monday's sizeable gap.  Today's relative strength 
versus the broader market indicates that shares could see more 
upside in the near future.  Traders with a high risk tolerance 
could consider entries at current levels, initially targeting 
previous support at $17.75.  Very short-term traders could look 
for a move to psychological resistance at $15.00.  Note, however, 
that ADRX announces earnings on October 24th.




--- 

Amgen Inc - AMGN - close: 50.38 change: -0.10

WHAT TO WATCH: Amgen reports earnings in just one week, but 
traders with a short-term timeframe may want to consider a long 
play.  AMGN has trended higher over the past three weeks and is 
now trading above the 200-dma ($49.65) and the psychologically-
important $50 level.  Shares showed great relative strength 
today, pulling back by only 10 cents.  Meanwhile, the NASDAQ was 
busy giving back most of yesterday's gains.  This may be 
attributable to the inverse relationship between chip stocks and 
biotechs.  It often seems that when one sector is getting 
hammered, the other will head higher or at least hold firm.  AMGN 
is looking overextended, but short-covering ahead of the earnings 
announcement could propel shares toward the $55.00 area.  Entries 
could be targeted or current levels or on a move above today's 
high ($51.51).  Possible resistance looms at the May highs near 
$53.00, so long positions are probably better left to aggressive 
traders. 




---

General Motors - GM - close: 34.14 change: -2.56

WHAT TO WATCH: GM had fallen precipitously after rolling over 
from $50.00 in late-August, so it wasn't surprising to see a 
powerful relief rally take hold over the past week.  The stock 
extended its bounce yesterday after third-quarter results came in 
above estimates.  Unfortunately for shareholders, the company's 
basic fundamental problems remain.  S&P downgraded their debt 
today, citing "poor pension investment portfolio returns (that) 
have contributed to a huge increase in GM's already-large 
unfunded pension liability."  These concerns hardly come as a 
stunning revelation, but the credit downgrade reveals that the 
pension issue is having a very real impact on institutional 
investors.  Prudential threw some salt in the wound by cutting 
its 2003 and 2004 estimates.  With the stock selling off by 
nearly 7% today, it looks like most of the recent gains could 
quickly evaporate.  The reversing daily stochastics (5,3,3) 
support this notion.  Short entries can be evaluated on a move 
under today's low ($33.87), initially targeting the relative lows 
near $31.00.  Additional credit or brokerage downgrades could 
take GM well below this level.




---

Maxim Integrated - MXIM - close: 26.70 change: -1.05

WHAT TO WATCH: Semiconductor bulls beat a hasty retreat today 
after Intel disappointed Wall Street with its lower-than-expected 
earnings and lackluster outlook for future growth.  After spiking 
out of its descending channel on Tuesday, the SOX.X gave back all 
of those gains and closed well below the 250 mark.  MXIM is 
displaying a similar bar chart, with shares beginning to roll 
from the top of its channel.  Even with today's pullback, the 
stock is sitting on a 28% gain from its multi-year low last 
Thursday.  The daily stochastics (5,3,3) provide technical 
confirmation that MXIM is overbought.  Bears will also be 
encouraged by the two unfilled gaps on the daily chart.  Overall 
it looks like the stock will not be able to maintain its current 
levels.  Investors will have a very hard time justifying a long 
position with the sector fundamentals looking so bleak.  Insofar 
as action points are concerned, traders can watch for a move 
below $26.00.  Depending on how the next week of tech earnings 
plays out, MXIM could eventually retest its relative lows near 
$21.00.  This roughly coincides with the midline of the stock's 
regression channel.




---

QUALCOMM Inc - QCOM - close: 34.16 change: -1.18

WHAT TO WATCH: QCOM saw some rapid gains over the past week after 
shares finally broke above resistance at $30.00.  Bears may have 
been looking for the $33.50 level to halt the ascent, but Tuesday 
morning's gapping action put those hopes to rest.  QCOM traded up 
to its bearish resistance trend on the p-n-f chart before pulling 
back with the market on Wednesday.  Shares could continue to 
retrace the recent gains, but keep an eye on how the stock 
behaves near the 200-dma ($33.37).  A bounce from this level, 
combined with renewed bullish vigor in the NASDAQ, could send 
QCOM to the next level of historical resistance at $40.00.




---

Wachovia Corp - WB - close: 34.16 change: -1.18

WHAT TO WATCH: Leading the recent market rebound were previously 
beaten-down banking stocks.  The BIX.X bank index gained 16% in 
just three days, as shorts covered positions and investors 
cheered on stronger-than-expected earnings from Citigroup.  WB 
also featured decent numbers in this morning's announcement, but 
shares sold off anyway.  Investors seemed to pay more attention 
to JPM, who said net Q3 income fell a whopping 95% on a year-
over-year basis.  The banking giant also said it would be taking 
a $450 million charge related to job cuts.  There were also some 
brokerage comments floating around today that questioned the 
quality of C's earnings.  These various concerns should continue 
to hound the financial group in the days to come.  Technically, 
WB is begging for a pullback.  Shares have rolled over from both 
the 50-day and 200-day moving averages.  The daily chart shows 
two breakaway gaps, the most recent of which is already beginning 
to be filled.  Point-and-figure enthusiasts will also note that 
WB has started to rollover after failing to pierce bearish 
resistance.  Entries can be targeted on a move under today's low 
($33.80), with an initial profit-target in the $30-$31 region.




---

Wrigley Co. - WWY - close: 51.85 change: -0.87

WHAT TO WATCH: Shareholders of WWY are facing a bit of a sticky 
situation.  The stock had been trending higher for more than two 
weeks, but shares came to a dead halt at the 200-dma ($53.35).  
This moving average also acted as resistance in August.  WWY sold 
off sharply from the 200-dma today and finished with a loss of 
1.6%.  That's a large move for Wrigley, which is a relatively 
slow mover.  With the MACD and daily stochastic oscillators both 
starting to roll, patient traders may want to consider short 
entries at current levels.  Given enough time, WWY might retest 
its July lows near $45.





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

Comcast Corp. - CMCSK - close: 20.42 change: -0.96 stop: *text*

Company Description:
Comcast Corporation is principally involved in the development, 
management and operation of broadband cable networks, and in the 
provision of electronic commerce and programming content. Comcast 
Cable is the third largest cable company in the United States 
serving more than 8.5 million cable subscribers. Comcast's 
commerce and content businesses include majority ownership of 
QVC, Comcast-Spectacor, Comcast SportsNet, The Golf Channel, 
Outdoor Life Network, G4, a controlling interest in E! Networks, 
and other programming investments. (source: company press 
release)

Why We Like It:
The planned merger between AT&T and Comcast seems to be 
progressing without any major problems, but that hasn't changed 
Wall Street's bearish bias on the latter company's stock.  CMCSK 
is mired in an extended downtrend that began late last year.  
Shares are trading in a descending channel that has held firm, 
with the exception of a three-week jaunt lower in July/August.  
The stock has seen some very large moves recently, and we're 
expecting more of the same in the short-run.  CMCSK exploded for 
a 30% rally off the October 16th low at $16.52.  The buying 
pressure appears to have been a function of the broader market 
bullishness rather than any positive fundamental changes.  As a 
matter of fact, AT&T Broadband announced last Wednesday that it 
would layoff 1700 employees following the merger with Comcast.  
Uncertainty over what other post-merger upheavals might be 
revealed in the months to come could serve to scare away 
potential investors.  The latest rally faltered at - you guessed 
it - the top of the channel.  This level of resistance is 
fortified by the 50-dma directly overhead at $21.64.  Shares 
remain well below bearish resistance on the point-and-figure 
chart, and for all its strength the recent bounce did not yield a 
p-n-f buy signal.  CMCSK is sitting on some very large gains and 
we believe a pullback is forthcoming.  Although the bullish 
crossover on the MACD doesn't jive with this outlook, technical 
bears can take encouragement from the overbought daily 
stochastics (5,3,3).  In order to confirm that the rollover has 
continued, we will not enter this play until CMCSK trades under 
today's low ($20.21).  If we're triggered our stop will be 
located at $22.01, above the upper band of the channel and the 
50-dma.  Our objective for this play is a retest of the $17.00 
level.  More aggressive traders could target a decline to the 
bottom of the channel near $15.00.

Click here for an annotated chart of CMCSK:



Picked on October xxth at $xx.xx
Results since picked:      +0.00
Earnings Date           10/28/02 (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 10-16-2002
                                                   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
  New Bearish Plays:     CMCSK

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 New Plays
============

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

Comcast Corp. - CMCSK - close: 20.42 change: -0.96 stop: *text*

Company Description:
Comcast Corporation is principally involved in the development, 
management and operation of broadband cable networks, and in the 
provision of electronic commerce and programming content. Comcast 
Cable is the third largest cable company in the United States 
serving more than 8.5 million cable subscribers. Comcast's 
commerce and content businesses include majority ownership of 
QVC, Comcast-Spectacor, Comcast SportsNet, The Golf Channel, 
Outdoor Life Network, G4, a controlling interest in E! Networks, 
and other programming investments. (source: company press 
release)

Why We Like It:
The planned merger between AT&T and Comcast seems to be 
progressing without any major problems, but that hasn't changed 
Wall Street's bearish bias on the latter company's stock.  CMCSK 
is mired in an extended downtrend that began late last year.  
Shares are trading in a descending channel that has held firm, 
with the exception of a three-week jaunt lower in July/August.  
The stock has seen some very large moves recently, and we're 
expecting more of the same in the short-run.  CMCSK exploded for 
a 30% rally off the October 16th low at $16.52.  The buying 
pressure appears to have been a function of the broader market 
bullishness rather than any positive fundamental changes.  As a 
matter of fact, AT&T Broadband announced last Wednesday that it 
would layoff 1700 employees following the merger with Comcast.  
Uncertainty over what other post-merger upheavals might be 
revealed in the months to come could serve to scare away 
potential investors.  The latest rally faltered at - you guessed 
it - the top of the channel.  This level of resistance is 
fortified by the 50-dma directly overhead at $21.64.  Shares 
remain well below bearish resistance on the point-and-figure 
chart, and for all its strength the recent bounce did not yield a 
p-n-f buy signal.  CMCSK is sitting on some very large gains and 
we believe a pullback is forthcoming.  Although the bullish 
crossover on the MACD doesn't jive with this outlook, technical 
bears can take encouragement from the overbought daily 
stochastics (5,3,3).  In order to confirm that the rollover has 
continued, we will not enter this play until CMCSK trades under 
today's low ($20.21).  If we're triggered our stop will be 
located at $22.01, above the upper band of the channel and the 
50-dma.  Our objective for this play is a retest of the $17.00 
level.  More aggressive traders could target a decline to the 
bottom of the channel near $15.00.

Click here for an annotated chart of CMCSK:



Picked on October xxth at $xx.xx
Results since picked:      +0.00
Earnings Date           10/28/02 (unconfirmed)
 




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

DCOM    Dime Community Bancshare   21.63     +0.63
MDTH    Medcath Corp               12.58     +1.54

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

KNSY    Kensey Nash                16.03     +2.13
MATR    Matria Healthcare          11.03     +1.12
ELK     Elkcorp                    17.90     +1.20

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

PPDI    Pharmaceutical Prod. Dev   26.26     +2.71
WLP     Wellpoint Health Ntwk.     86.76     +1.96
GENZ    Genzyme Corp               26.27     +1.51
APH     Amphenol Corp              32.75     +2.31
SHRP    Sharper Image Corp         21.93     +1.13

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

WGOV    Woodward Governor          38.44     -2.40
ARB     Arbitron Inc               32.36     -1.39
STJ     Saint Jude Medical         36.20     -1.40
HRS     Harris Corp                28.00     -5.75
BBI     Blockbuster Inc            24.00     -1.05
CEC     CEC Entertainment           25.00     -4.97

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

KO      Coca-Cola                  47.20     -5.28




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

Option Investor Inc is neither a registered Investment Advisor nor a Broker/Dealer. Readers are advised that all information is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor is it to be construed as a recommendation to buy, hold or sell (short or otherwise) any security. All opinions, analyses and information included herein are based on sources believed to be reliable and written in good faith, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. In addition, we do not necessarily update such opinions, analysis or information. Owners, employees and writers may have long or short positions in the securities that are discussed.

Readers are urged to consult with their own independent financial advisors with respect to any investment. All information contained in this report and website should be independently verified.

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