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PremierInvestor.net Newsletter              Wednesday 10-23-2002
                                                  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:      Better Than Expected
Watch List:       AHG, CMVT, FRX, HD, IPG, MU, and more...
Play of the Day:  Calling All Bulls


******************************************************************
MARKET WRAP  (view in courier font for table alignment)
******************************************************************
10-23-2002                  High    Low     Volume Advance/Decl
DJIA     8494.27 +  44.11  8494.76 8294.38   1815 mln  1175/621
NASDAQ   1320.23 +  27.43  1320.25 1279.46   1587 mln  1279/289
S&P 100   454.73 +   2.14   454.74  443.36    totals   2454/910
S&P 500   896.14 +   5.98   896.14  873.82
RUS 2000  368.95 +   6.29   368.97  359.79
DJ TRANS 2341.55 +  29.12  2342.08 2281.47
VIX        39.38 +   0.04    41.99   38.87
VIXN       52.37 -   1.24    55.41   51.76
Put/Call Ratio 0.73
******************************************************************


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

Better Than Expected

by Steven Price

Just as the Dow looked to be gaining steam with a series of
higher lows, the usual suspects, in the form of Citigroup and
J.P. Morgan jumped out of hiding, along with some help from
healthcare and telecoms, pushing the index lower by 155 points,
before a late day rally pushed us up 44 points on the day.
However, even though we hit a lower low than yesterday, we got a
better look at the 50-dma and previous head and shoulder support,
which could be our new support levels in the Dow.   What was even
more impressive was the fact that we rallied shortly after the
release of the Fed's Beige Book report, which contained mostly
bad news.

The Beige Book showed a slowdown in consumer spending, evidenced
by weak retail sales in September and October.  It also showed a
slowdown in the furious pace of auto sales that had resulted from
the zero-percent financing deals offered by major manufacturers.
Manufacturing activity declined and was described as tough,
stagnant, or sluggish in many districts.  There were also
declines in commercial lending, commercial real estate and
construction activity, as well as labor markets and energy
exploration.  The increases were in homebuilding and residential
real estate, which went hand in hand with increased activity in
consumer lending.  The song remains the same - low interest rates
are leading to a strong housing market, but everything else is
suffering.  However, one important note on housing is that the
report showed some softening in the higher end of the market.

The speculation is now that the numbers in the Beige Book will
give the Fed the excuse they need to lower rates. After a
lackluster report, that would seem to be the reason for the
afternoon rally following its release.  However, there were a few
other developments before the report was released that indicated
investors were ignoring the bad news and buying the dips.

This reminds me a little of the 90s, when missing earnings by
just a little was just another buying opportunity. I am looking
at the semiconductor stocks once again and seeing amazing
resilience to bad news.  Whether the rally is simply lemmings
heading toward the cliff's edge, or institutions that were
expecting even worse numbers, I'm not sure of; but one thing is
certain - the bears are in hibernation for the moment. Leading
the "Huh?" rally is Cymer. Last night, Cymer (CYMI), which makes
lasers used in chip production, released earnings, along with
comments that "The semiconductor industry has apparently entered
the second decline of a double-dip downturn, which will have a
negative impact on our fourth quarter operating results."  The
company predicted a 20-25% decline in fourth quarter revenue.
After trading $2 lower after hours yesterday, it not only made up
the loss, but actually traded up $1.65 on the day.  KLA-Tencor
(KLAC), another chip equipment maker which released after the
bell on Tuesday, guided revenue lower for the fourth quarter,
from $381 million to $330 million, a 13% drop in expectations.
KLAC also lost about $2 in after market trading, but made up the
loss, plus another $2.13 on the day.  Storage Tech (STK) also
said it doesn't expect the IT spending environment to be any
better next year than it is this year and is assuming IT spending
will be flat based on its conversations with customers.  The
stock was, of course, upgraded after those comments and gained
24% on the day.  If the chance of a rate cut were really behind
the rally, it would seem that there would be plenty of better
places for investors to go long, other than three stocks which
are seeing declining revenues. This morning also brought a
downgrade from Thomas Weisel of eight chip equipment makers,
including KLAC, Applied Materials (AMAT) and Novellus (NVLS).
The firm said it believes that the industry is entering a period
of bifurcation as the prolonged downturn has created a chasm
between companies that are profitable, with strong balance sheets
and little debt, and companies that are burning cash and are
highly leveraged.  Wiesel said it expects this trend to continue.
All eight stocks it downgraded finished the day significantly
positive, with only one up less than 5%.   The Semiconductor
Index (SOX.X) tested the 50-dma in August, and failed it after a
massive rally, much like the one we are seeing now.  However,
that rally did so within the descending channel that had
contained the movement since March.  It also did so at a time
when the index had been rebounding off the bottom of the channel.
I have noted in recent wraps that the bounce pattern has changed,
with the SOX finding support on recent bounces from the center of
the channel.   These observations do not change the fact that
revenues are still DECLINING, but apparently institutions must
have been looking for numbers that were even worse than were
reported.  The SOX has now broken out of its descending channel,
taken out its 50-dma, pulled back and then surged above that
level once more on bad news.  I'm still not going to put my money
on a sector with declining revenues and no real plan for when
that will turn around, not to mention a declining book-to-bill
ratio, but I'm not going to stand in the way of a rally.  The
only positive news I can see for the sector is today's report
from IDC (the same group that predicted a slide to 200 in the
SOX) that the growth rate for PCs is expected to pickup next year
in China.  Some of largest PC sellers in China include IBM and
Dell.

Chart of the SOX


Looking back at the Dow again, today's bounce point looks as
though the average is now finding support again right around
8300.  This level also provided temporary support on the way
down, as a head and shoulders formation evolved between July and
September.  It now correlates with the current 50-dma of 8257.15,
as well, and with a descending trendline from the May highs
through the August peak.   That 50-day moving average is
declining, due to activity in the last couple of months, but is
starting to level out. The fact that we are bouncing in this area
on the way up looks bullish and it may be difficult for bears to
get through to the downside with so many converging factors.
Additionally, a look at the bullish percentages shows that the
NYSE bullish percentage has rebounded from a low of 26% and
reversed up right around the time the Dow broke through the 8000
level.  This is the third straight rebound from this level.  The
reading is now 32% on the three-box reversal and appears as
though it has room to run.  The last two rebounds have taken the
percentage up to 64% and 46%.

Chart of the Dow


Chart of Dow Consolidation Levels


Point and Figure Chart of NYSE Bullish Percentage



The S&P 500 (SPX.X) shows a slightly different story.  The index
has been unable to crack 900 on a closing basis, and was rejected
from an intraday high of 900.69 two days ago.  One of the reasons
the S&P may be more important than the action in the Dow is the
fact that the rally of the last two weeks actually started when
the SPX finally broke its July 24 intraday low.  This is an
indication that institutional trading may be playing a much
bigger role in this rally than the individual investor, since
it's programs are based on the S&P 500.  It may also indicate a
sell program in place at 900.

Chart of the S&P 500


The original drop today came after Sanford Weill, chairman of
Citigroup, said he would testify to the New York attorney
general's office in their probe into research activities at
Salomon Smith Barney. The fact that Citigroup's CEO may be the
target of the investigation scared investors who initially sold
off the stock, before the end of day rally brought it back to
near even (-0.11 on the day).

Johnson and Johnson (JNJ) was also downgraded, contributing to
the drop in the Dow, even after the FDA gave approval for the
company's drug coated stent, used in clearing blocked arteries.
CIBC World markets cut their rating on the stock, stating that
the earnings boost from the stents was already figured into the
price and there was limited upside in the stock from this level.
Eli Lilly (LLY) helped send the drug sector lower, as well, after
it lowered its fourth quarter outlook, due to the need to put
more money into its drug pipeline. It also cited marketing costs
and slower sales of some of its products.

AOL hit its earnings target, but announced that it would restate
revenue by $190 million.  This was somewhat expected after it
announced an internal review several weeks ago. However, the
restatement was apparently not as bad as expected, as the stock
rose $1 from its closing price in after hours trading.

Amgen also reported earnings, which showed a loss.  However, that
loss reflected the effect of a one-time $3 billion write-off
related to its purchase of Immunex. The company said third
quarter revenue was up almost 50% and raised its sales forecast
for chemotherapy drugs.  The stock traded up $1.20 from its close
of $50.00.

So now what?  Things look bullish, in spite of warnings on a
seemingly daily basis. While I can't imagine buying shares of a
stock that is showing revenue declines, apparently someone else
has no problem with it.   Or make that a lot of someone else's.
The trend looks like it is still heading north, and an S&P 500
break of 900 would certainly add to that sentiment.  If we do
break 900 in the S&P, then the next challenge in the Dow looks
like 8750, and playing long on a break over 8500 to that level
seems logical. The Market Volatility Index (VIX), remains close
to 40, indicating there is still plenty of fear of the downside
out there, as premium sellers, who normally come out en masse
during market rallies, have not done so with any real conviction.
Right now, I would be playing only 1/2 positions to the long
side, until I see some good news that isn't simply "better than
expected."


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

Apria Healthcare - AHG - close: 25.13 change: +1.13

WHAT TO WATCH: Healthcare stocks have been breaking out left and
right, and AHG looks ready to follow some of its sector
compatriots higher.  While the reaction to Tuesday morning's
earnings report was muted, today's 4.7% gain brought the stock
within striking distance of multi-month highs.  Long entries can
be gauged on a move above $25.50, with an initial target near
$28.00.  P-n-f chartists will note that AHG has bearish
resistance at $25.00.




---

Comverse Technology - CMVT - close: 8.20 change: +0.26

WHAT TO WATCH: CMVT is in the midst of an impressive rally that
has taken shares above the 50-dma ($7.71).  A pullback to this
moving average might offer a bullish action point for short-term
traders.  We'd initially be targeting a move to the $9.00 area,
although a move to $10.00 wouldn't be out of the question if the
overall telecom sector can sustain its recent strength.




---

Forest Labs - FRX - close: 97.65 change: -1.92

WHAT TO WATCH: What goes up must come down.  FRX exploded to the
upside in September after the $80.00 resistance level gave way.
Just three weeks later, shares were trading above $100.  The
uptrend was finally broken today when the stock gave back nearly
2%.  Profit-taking was most definitely at work here - Forest Labs
announced yesterday that various executives had filed to sell up
to 800,000 shares.  FRX is technically overextended and looks
like it could pullback to the $90.00 area.  This coincides with
the 61% retracement level from the September lows to October
highs.  Short entries can be targeted on a move below $95.00 or
another failed rally at $100.00.




---

Home Depot - HD - close: 30.44 change: +0.87

WHAT TO WATCH: HD certainly isn't a seasonal play.  Cold weather
is descending on much of the United States, so not as many people
will be working on home improvement projects.  The overall retail
climate is looking weak as well - A point that was driven home by
this afternoon's release of the Beige Book numbers.  But as the
axiom says, we must trade what we see, not what we think.  And
we're currently seeing some impressive strength in HD.  Shares
have spent the past week near the 50-dma ($29.93), consolidating
their recent gains.  Today's relative strength versus the Dow
Jones suggests that a breakout is imminent.  Watch for a move
above the relative high at $30.61 to clear the way for a rally to
the $34.00 region.




---

Interpublic Group - IPG - close: 13.21 change: +0.88

WHAT TO WATCH: A third-quarter earnings warning from this
advertising company sent IPG tumbling sharply lower last
Thursday.  The news was quite gloomy, but the stock has done a
good job of recouping its losses.  IPG is in the process of
filling in last week's gap and the p-n-f chart has reversed into
a column of "X's."  Speculative traders can look for shares to
rally to the top of this gap, near $16.00.  Watch for a move
above $13.32 or a pullback to $12.50 to provide bullish action
points.




---

J.P. Morgan - JPM - close: 19.77 change: -0.14

WHAT TO WATCH: Shareholders of JPM enjoyed a nice rebound off the
multi-year lows near $15.00, but it looks like the stock may have
run out of steam.  With competing CEO Sandy Weill on the
defensive regarding Citigroup's investment banking activities,
some investors may choose to steer clear of the money center
banks.  Technically, the stock looks like it could roll over from
current levels.  Shares have not been able to break above the
descending trend of lower highs (dating back to June), which
coincides with psychological resistance at $20.00.  Watch for a
move under today's low ($18.91) to clear the way for a test of
the $17.00 level.  There's possible support at $18.00, but
additional sector negativity could scare the bulls into
submission.




---

Micron Technology - MU - close: 15.68 change: +1.23

WHAT TO WATCH: The chip sector looked like it was going to get
slammed this morning.  Earnings warnings from CYMI and KLAC,
along with a Thomas Weisel downgrade of the semiconductor
equipment sector, had the bears licking their chops.  But it
wasn't meant to be.  The 5-minute chart for either of the above-
mentioned stocks tells the tale:  Despite the dismal news, buyers
quickly moved in after the downward gap.  Buying accelerated in
afternoon trading as the broader market started to take off.
This rally on bad news could be indicative of a seismic shift in
the chip group.  The SOX.X closed above its 50-dma and could be
headed for the 300-320 region. Further sector bullishness would
be a boon for MU.  The stock is already on a triple-top p-n-f buy
signal and is poised to slice through resistance at $16.00.  Such
a breakout would pave the way for a rally to the $18-$20 area.
Shares have already gained sharply over the past week, so this
play would be better left to those with an aggressive trading
strategy.




---

Wells Fargo - WFC - close: 50.70 change: +0.22

WHAT TO WATCH: Here's another short candidate in the banking
sector.  WFC is sitting on a gain of more than 15% from its
recent lows and has a relatively large unfilled gap just below
the 50-day ($49.42) and 200-day ($49.09) moving averages.  With
the daily stochastic and MACD oscillators both looking toppy, it
looks like a pullback could be forthcoming.  Short-term traders
can look for entries on a move below $49.00, with an initial
profit-target near $46.00.  Possible support lies at the top of
the gap at $47.65.




---

Wellpoint Health Ntwk. - WLP - close: 84.56 change: -1.07

WHAT TO WATCH: WLP had a great run during the first half of the
month, but that was before the stock gave a "blow-off top" and
reversed course on October 17th.  Shares have since trended
lower, and could soon fall into the "fast-move" region between
$78.00-$83.50.  The overbought oscillators do not bode well for
the bulls.  Of course, this technical picture could be rendered
obsolete if the market reacts favorably to tonight's earnings
report.  Wellpoint beat consensus estimates by four cents, but
shares were only trading slightly higher in after-hours.  There's
a good chance we may see a "sell on the news" event if investors
decide the positive earnings were already factored in by the
recent rally.  Should this be the case, short entries can be
targeted on a move below $83.50.





=========================
Play-of-the-Day (new BULLISH high-risk/high-reward play)
=========================

AT&T Corp. - T - close: 13.40 change: +0.35 stop: 11.98

Company Description:
AT&T is among the world's premier voice, video and data
communications companies, serving consumers, businesses and
government. Backed by the research and development capabilities
of AT&T Labs, the company runs the largest, most sophisticated
communications network and is the largest cable operator in the
U.S (source: company press release)


Why We Like It:
The WorldCom collapse shook the telecom industry to its core, but
some of the survivors are poised to benefit from the bankrupt
company's woes.  Much like the remaining accounting firms moved
to fill in the void left by the disappearance of Arthur Anderson,
large corporate clients have left WorldCom and Qwest for more
stable communications providers.  This has been a boon for AT&T.
Ma Bell has further benefited from an increasing share in the
local phone market.  The recent news has been mostly positive,
with T reporting on October 16th that its growth in the
residential service area had easily exceeded its own
expectations.  Yesterday's profitable earnings report came after
three consecutive quarters of losses.  Overall it looks like
things are picking up at AT&T.  However, the bears are not
without ammunition.  The latest earnings also revealed declining
sales, and there's a good deal of skittishness concerning the
company's valuation after it spins off its Broadband division to
CMCSK. This deal is expected to reach completion near the end of
2002.

Investors have been snapping up shares of T with increasing
voracity.  Although the fundamental nay-sayers may eventually
prove to be correct, the technical picture is pointing towards
more upside in the short-run.  T bounced off its relative lows
near $10.50 and recently broke above intermediate-term resistance
at $12.75.  What really grabbed our attention was the way the
stock shot above its 200-dma ($13.12) on Wednesday.  This
breakout should bring more bulls off the sidelines.  Although the
daily chart shows possible resistance in the $13.80-$14.00
region, further bullish action in the Dow Jones could propel T
towards the next clear level of historical resistance at $16.00.
Active at current levels, we're starting this play with a stop at
$11.98.  This will give us the protection of the 50-dma ($12.01)
and whole-number support at $12.00.  Super-conservative traders
could use a stop slightly below previous resistance at $12.75.

Picked on October 23rd at $13.40
Results since picked:      +0.00
Earnings Date           10/22/02 (confirmed)







=================================================================
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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
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guaranteed as to accuracy or completeness. PremierInvestor.net
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factors beyond our control.

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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 10-23-2002
                                                   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
  Closed Bullish Plays:  SHFL, VIA.B

High Risk/Reward
  New Bullish Plays: T

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 Closed Plays
===============

  --------------------
  Closed Bullish Plays
  --------------------

Shuffle Master - SHFL - cls: 22.79 chg: +0.14 stop: 22.39

Shares of SHFL followed the Dow Jones lower on Wednesday morning
before rebounding to finish slightly in the green.  This play was
closed shortly before noon, for a gain of 9.9%.  All things
considered, the stock has done a good job of maintaining its
recent gains.  A more enthusiastic sell-off could've been
expected with MGG falling sharply on a negative reaction to its
earnings report.  Some traders may want to wait and see if shares
can move to another multi-month high, but we're content to take
our hypothetical profits and move on.  The daily stochastics are
beginning to fall from overbought levels, indicating a further
pullback may be at hand.

Picked on October 14th at $20.36
Gain since picked:         +2.03
Earnings Date           08/22/02 (confirmed)




---

Viacom Inc - VIA.B - cls: 47.18 chg: +0.78 stop: 45.49

Time to cut this one loose.  Shares of Viacom traded mostly flat
ahead of Thursday's earnings announcement, but saw some
enthusiastic buying during the final two hours.  Per the exit
strategy outlined in last night's update, we closed this play as
of the final trade on Wednesday.  This represents a gain of 4.5%
from our entry point.  Traders who chose to hold over the
announcement might have to deal with heightened volatility
tomorrow morning.  An intraday spike towards the $48-$50 region
would be a good time to take profits.  If shares sell off on the
news, we'd be looking to minimize losses with a stop just below
the 200-dma at $43.83.

Picked on October 21st at $45.11
Results since picked:      +2.07
Earnings Date           10/24/02 (unconfirmed)





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

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

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

AT&T Corp. - T - close: 13.40 change: +0.35 stop: 11.98

Company Description:
AT&T is among the world's premier voice, video and data
communications companies, serving consumers, businesses and
government. Backed by the research and development capabilities
of AT&T Labs, the company runs the largest, most sophisticated
communications network and is the largest cable operator in the
U.S (source: company press release)


Why We Like It:
The WorldCom collapse shook the telecom industry to its core, but
some of the survivors are poised to benefit from the bankrupt
company's woes.  Much like the remaining accounting firms moved
to fill in the void left by the disappearance of Arthur Anderson,
large corporate clients have left WorldCom and Qwest for more
stable communications providers.  This has been a boon for AT&T.
Ma Bell has further benefited from an increasing share in the
local phone market.  The recent news has been mostly positive,
with T reporting on October 16th that its growth in the
residential service area had easily exceeded its own
expectations.  Yesterday's profitable earnings report came after
three consecutive quarters of losses.  Overall it looks like
things are picking up at AT&T.  However, the bears are not
without ammunition.  The latest earnings also revealed declining
sales, and there's a good deal of skittishness concerning the
company's valuation after it spins off its Broadband division to
CMCSK. This deal is expected to reach completion near the end of
2002.

Investors have been snapping up shares of T with increasing
voracity.  Although the fundamental nay-sayers may eventually
prove to be correct, the technical picture is pointing towards
more upside in the short-run.  T bounced off its relative lows
near $10.50 and recently broke above intermediate-term resistance
at $12.75.  What really grabbed our attention was the way the
stock shot above its 200-dma ($13.12) on Wednesday.  This
breakout should bring more bulls off the sidelines.  Although the
daily chart shows possible resistance in the $13.80-$14.00
region, further bullish action in the Dow Jones could propel T
towards the next clear level of historical resistance at $16.00.
Active at current levels, we're starting this play with a stop at
$11.98.  This will give us the protection of the 50-dma ($12.01)
and whole-number support at $12.00.  Super-conservative traders
could use a stop slightly below previous resistance at $12.75.

Picked on October 23rd at $13.40
Results since picked:      +0.00
Earnings Date           10/22/02 (confirmed)





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

AME     Ametek Inc                 33.15     +1.31
FLM     Fleming Companies           6.30     +0.80
AHG     Apria Healthcare           25.13     +1.13
FRE     Freddie Mac                63.50     +0.79
UBB     Unibanco Uniao              8.79     +1.19
RBK     Reebok Intl.               27.57     +0.75
UDI     United Defense             20.65     +1.08

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

ACTL    Actel Corp                 14.97     +1.70
GTRC    Guitar Center              19.49     +1.28
PRXL    Parexel Intl.              12.01     +2.22
MKSI    MKS Instruments            11.41     +1.25
CUB     Cubic Corp                 15.00     +1.27
CERS    Cerus Crop                 19.57     +3.03
CELG    Celgene Corp               20.00     +1.56
BMC     BMC Software               15.70     +1.07
OO      Oakley Inc                 11.28     +1.38

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

ROOM    Hotel Reservations Ntwk.   58.81     +2.05
SLB     Schlumberger Ltd           42.86     +2.46
PDX     Pediatrix Medical          37.00     +1.29
VSEA    Varian Semiconductor       21.33     +1.48
AHG     Apria Healthcare           25.13     +1.13
EOG     EOG Resources              38.85     +1.62
CEPH    Cephalon Inc               48.82     +2.29

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

JNJ     Johnson & Johnson          57.95     -1.87
LLY     Eli Lilly & Company        58.09     -4.91
SRDX    Surmodics Inc              31.25     -2.66
HI      Household Intl             26.45     -2.83
MCO     Moody's Corp               47.41     -2.71
GSK     Glaxosmithkline            39.27     -2.07

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

SFG     Stancorp Financial         55.87     -0.78
PHTN    Photon Dynamics            20.06     -2.15
DASTY   Dassault Systems           20.36     -1.86




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