Option Investor
Newsletter

Daily Newsletter, Friday, 10/25/2002

HAVING TROUBLE PRINTING?
Printer friendly version
PremierInvestor.net Newsletter          Weekend Edition 10-25-2002
                                                    section 1 of 3
Copyright ) 2002, All rights reserved.
Redistribution in any form is strictly prohibited.

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

In section one:

Market Wrap:      Markets Rally On Bad News, Again
Play-of-the-Day:  Coiling For A Breakout
Watch List:       CB, CI, INTC, MEL, SEPR, WHR, and lots more...
Market Sentiment: Waiting for the Break

******************************************************************
MARKET WRAP  (view in courier font for table alignment)
******************************************************************
       WE 10-25        WE 10-18        WE 10-11         WE 10-4
DOW     8443.99 +121.59 8322.40 +472.11 7850.29 +321.89 - 63.58
Nasdaq  1331.13 + 43.27 1287.86 + 77.39 1210.47 +774.16 -  9.13
S&P-100  455.65 +  6.63  449.02 + 26.34  422.68 + 19.46 -  4.03
S&P-500  897.65 + 13.26  884.39 + 49.07  835.32 + 35.04 - 14.70
W5000   8450.64 +126.86 8323.78 +450.75 7873.03 +274.41 -175.00
RUT      372.64 +  9.27  363.37 + 18.44  344.93 -  3.05 - 14.29
TRAN    2313.31 + 34.22 2279.09 +124.42 2154.67 + 16.99 - 13.39
VIX       36.27 -  3.55   39.82 -  3.62   43.44 -  2.84 +  3.14
VXN       50.39 -  4.94   55.33 -  3.54   58.87 -  1.41 +  2.42
TRIN       0.89            0.80            0.41            1.98
Put/Call   0.77            0.68            0.93            0.97
******************************************************************

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

Markets Rally On Bad News, Again
by Jim Brown

The headline economic number on Friday was the Durable Goods
report for September. It was ugly, really ugly with a drop of
-5.9% for the month. This was well over the expected drop of
-2.0%. It is the largest decline since November 2001.

Dow Chart


Nasdaq Chart


While that number sounded bad on the surface there was actually
some good news buried in the facts. A major factor for the
decline was the nondefense aircraft orders which dropped -46%
and greatly impacted the headline number. Aircraft is very
volatile due to timing and dollar volume. There had been two
months of large gains previously. The good news was a +9.3%
gain in new orders for computer equipment. While this may have
been a light under the door for the tech sector the -52% decline
in communications equipment far overshadowed the gains in PCs.
Nondefense capital goods also fell -12.6%. With computers the
only glimmer of hope in a sea of red there was not much to
cheer about. That is unless you are a tech bull.

The bulls took the one positive number out of the report and
the Nasdaq led the charge on Friday. There was an initial spike
and mandatory dip at 10:AM but the Nasdaq never looked back
after that. Other good news rescued the chip sector once again.
Micron was upgraded by Merrill and Salomon Smith Barney due to
improved selling price assumptions. They felt below trend
capacity expansion signified a favorable environment for pricing.
They felt the top DRAM manufacturers like Micron would benefit.
A chip upgrade? You mean I don't have to buy bad news? That
appeared to be what bulls were thinking. The SOX closed up +14
at 292 again and closing in on the critical resistance at 300.

Amazon got taken to the woodshed with multiple downgrades from
the constant lack of profit. The stock traded as low as 18.50
before recovering to close at 19.31. This was not as bad as
it could have been considering the number of negative comments
being made.

Also helping the bulls was the news from Emulex. They beat
estimates on Thursday night by 3 cents and they raised guidance
for the current quarter. If you remember QLGC also raised
guidance a week ago. They both expect 2% to 5% top line growth.
ELX claimed they were grabbing market share and seeing a strong
ramp of new products. ELX jumped +30% (+4.08) to $17.95 and
QLGC gained about +2.00. Throw another log on that Nasdaq fire.

The health insurance sector was not so lucky. Cigna warned of
serious problems last night and again on Friday for the current
quarters and for all of 2003. The stock got crushed and dropped
-$26.60 to $39.30, a -41% drop. This set the tone for the broader
market in the early morning and only the strength in techs kept
the market from tanking.

The markets moved sideways with only a slight uptrend until about
2:PM and the announcement of the plane crash and death of Senator
Wellstone. With the election so close and the control of congress
in real doubt any republican win in Minnesota would improve the
republican odds. The market weighed the possibilities and quickly
started putting money in sectors that might benefit from a
republican control win in November. While the accident was tragic
the facts remain and the market acted on it. Wellstone was strongly
liberal and proud of it. He was a critic of big business and a
strong conservationist. The possibility of a pro business, pro
defense, pro tax cut republican senator in Minnesota was not lost
on traders. In reality the same election confusion continues. There
is a possibility that Governor Jesse Ventura, an independent, could
now pick an independent or green party candidate to replace Wellstone.

In addition to the Durable Goods numbers we also got New Home Sales,
which increased to a new record high. The rate of increase was much
smaller and there were numerous comments about the slowing boom.
Existing home sales also increased very slightly with a +1.9% gain.
Sales in the West (-4%) and Northeast (-2%) actually dropped but
the headline number was helped by a giant +10% gain in the Midwest.
With mortgage rates climbing slightly these numbers are expected
to slow and the drops in those two regions could be a leading
indicator. The revised Consumer Sentiment number for October was
inline with estimates at 80.6 but still showed a decline over Sept.
It is now down five consecutive months. The current conditions
component dropped -3.4 to 92.4 and the lowest level since 1992.
The expectations fell -6.8 points to 73.1 and the lowest level
since 1993. Definitely nothing to cheer about here and added to
the rapidly slowing Durable Goods orders it shows a consumer that
is pulling back into their shell and restricting spending.

The outlook for next week is good. That might surprise many readers
but there are several factors at work which will keep a bid under
the market until after November 6th. The first is the election.
The big money will want to maintain the market bounce to give
politicians the best chance of reelection. Secondly the Durable
Goods orders and Consumer Sentiment today have peaked hopes for
a rate cut on the 6th. Next week we will get another Consumer
Confidence on Tuesday, GDP, PMI and ECI on Thursday and Nonfarm
Payrolls, Personal Income and Spending, ISM and Construction
Spending on Friday. A week full of reports where there is no
wrong answer. Positive reports will be seen as signs of a recovery.
Negative reports will be seen as a guarantee of another rate cut
on Wednesday the 6th.

Adding to the underlying bid is the extremely high short interest
and high put/call ratios of the QQQ/DIA/SPY securities. The QQQ
has short interest of nearly 180 million shares with volume of
only 70 million on Friday. This is a huge amount of short interest
and would take at least ten days to work it off on strong bounce.
Adding to this is the 75 million short interest on the SPY with
volume on Friday of only 43 million. The DIA has 20 million short
with volume of 12 million. The P/C ratio on the DIA is high at
1.64. What this all means is that a sudden uptrend over Dow 8550
next week could explode if the shorts started covering for real.
If you were heavily short next week and the market was moving up
and there could be a rate cut on the 6th, would you cover?

Obviously not everyone would since many traders are short from
much higher levels. But, many traders, already nervous about the
gains in the last two weeks, will become even more nervous on
any rally next week. I think the number one thing traders need
to think about next week is not fundamentals. Fundamentals still
stink. They need to think about a short squeeze reaction "IF" we
get a bounce over 8550 on Monday. The key is the bounce. We came
to a dead stop at that level twice last week and failed to break
8450 on Friday. The rally road is not paved with gold just yet.
There are traders still selling into every bounce and the bulls
will have their work cut out for them.

The bearish case is still the fundamentals. Many indicators
are pointing to a double dip recession and economic reports next
week could make the case even more clear. Still the bears are not
likely to make a strong charge in front of the Fed meeting. They
may bide their time and wait for the Fed and then sell any bounce.
Also, Walter Mondale could easily step up to the plate and take
Wellstone's place in the election and he would be very tough to
beat. Suddenly the questionable "republican" rally from Friday
could become a republican loss on Monday. The elections in Brazil
will be over the candidate could thumb his nose at the IMF and
take the entire country and continent down with him.

My thoughts for Monday are to stay long over Dow 8550 and short
under Dow 8500. The upside target if we did get a rally would be
strong resistance at 9000-9075. That should draw serious attention
from the bears and without 5:1 or better up volume I doubt it will
fail. Trade what you see, not what you want to see.

Enter Very Passively, Exit Very Aggressively!

Jim Brown

"Wall Street's graveyards are filled with men who were right
too soon "  - William Hamilton


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

Watson Pharmaceutical - WPI - cls: 25.82 chg: +1.02 stop: *text*

Company Description:
Watson Pharmaceuticals, Inc., headquartered in Corona, CA, is a
leading specialty pharmaceutical company that develops,
manufactures, markets and distributes branded and generic
pharmaceutical products. Watson pursues a growth strategy
combining internal product development, strategic alliances and
collaborations and synergistic acquisitions of products and
businesses.  (source: company press release)

Why We Like It:
Watson Pharmaceutical hasn't been the screamer that some other
equities have been these last three weeks but that means it looks
a lot less overbought too.  Yet we're not saying the stock has
been standing still either.  Shares have actually been fighting
with tough overhead resistance at the 200-dma and the $26.00
level.  The WPI stock recently bounced near the $22 mark and has
since broke back above the 50-dma.  That same dma is now acting
as new short-term support.  Friday's session helped shares close
over the 200-dma for the first time since October 2001.  We
believe that the Biotech sector, which has been consolidating
sideways, could be ready for another move up if the broader
markets continue to rally.  Should the BTK.X be able to rally to
the 400 level of resistance then shares of WPI might be able to
follow suit and rally to the $30 level of overhead resistance.

The company is not without its news risk.  Just recently, on
October 22nd, 2002, the FDA approved rival drug maker Barr Labs
(BRL) to make and market generic versions of two oral
contraceptives.  The two new generic versions will compete with
WPI's NOR-QD and Ortho-McNeil's Ortho-Micronor contraceptives.
Believe it or not, shares of WPI did not react negatively to the
news but it remains an example that biotech stocks are always
subject to potential news risk events and should be played with
care.  Coming up on the company's calendar is the Salomon Smith
Barney 2002 Health Care Conference in New York, which WPI will
present at on Tuesday, Oct. 29th.  Occasionally, these events can
provide a positive stimulus to a company's stock price should new
and exciting data be presented.  Watson has also confirmed that
it will announce its earnings on Nov. 6th prior to the opening
bell.

Our plan to go long WPI is the following.  Friday's close over
the 200-dma is a bullish signal of strength yet the stock has not
been able to conquer the $26.00 level of very strong resistance.
Should this occur, then short covering could quickly push shares
higher.  We're going to initiate a long play on WPI if and when
shares trade at or above $26.11.  Take note, should the stock GAP
UP above $26.50 we will NOT open the play.  Once we are triggered
into the position we'll use an initial stop loss at $23.99, which
is below the 50-dma.  Our short-term target is $30.00 but the
stock could trade higher given time.  We'll evaluate as the play
progresses.  We do not expect to hold this hypothetical long
position over the company's earnings report.

For Annotated Chart: Click Here



Picked on October xxth at $xx.xx <-- See text
Results since picked:      +0.00
Earnings Date           11/06/02 (confirmed)





==================================================================
WATCH LIST
==================================================================

The PremierInvestor.net watch list is not designed to be read
as full fledged stock picks.  Rather we would prefer to offer
it as an extra tool in today's investor toolbox.  Think of it
as a radar screen with your own radar operator pointing out
interesting developments, technical patterns or potential plays
that you may or may not have seen on your own.  Due to time
constraints we do glance at the news but rarely do we have
time to fully read pertinent news stories, due background
research and other necessary screens that investors should do
before making a decision.  A common exercise is to read the
entry, glance at the sector and other stocks in that industry
and then compare what's happening in the stock to what's
happening in the broader market indices.  We hope you enjoy
the Watch List and that it proves to be a useful tool for your
own trading success.

STOCKS WORTH WATCHING
---------------------------------

Chubb Corp. - CB - close: 57.09 change: +0.12

WHAT TO WATCH: Today's disastrous news from Cigna (CI) helped to
push CB to new relative lows.  Chubb had its own share of bad
news last week when the company delayed its earnings announcement
because more time is needed to add an asbestos review to the
final results.  Asbestos claims have already resulted in millions
in dollars of losses for casualty and property insurers.
Investors loathe uncertainty, so it's hard to imagine how CB
would see much buying ahead of its rescheduled earnings on
October 31st.  Traders with a short-term strategy can target a
quick decline to the relative lows near $52.50.  Bearish
positions could be weighed on a move under today's low ($55.94).




---

Cigna Corp - CI - close: 37.00 change: -26.60

WHAT TO WATCH: That's not a typo.  CI lost 41% today after the
company chopped its 2003 estimated profit from $8.84/share to
$6.25-$6.50/share.  Third quarter estimates were also sharply
reduced.  Cigna said it hadn't hedged its risks effectively in
some health plan accounts, leading to extensive losses.  As awful
as this news is, CI could easily bounce back to the $44-$45 area.
41% is a lot of movement in just one day, and a lot of shorts
will be looking to take profits soon.  Long entries could be
evaluated at current levels, with a stop just under today's low
($34.70.)  This would be considered an aggressive, high-
risk/high-reward play.




---

Clorox - CLX - close: 39.95 change: -0.51

WHAT TO WATCH: CLX is a relatively slow mover, but patient
traders may want to considering shorting the stock if it breaks
below $39.63.  Shares have traded within a four-dollar range
since August, and recently sold off from bearish p-n-f
resistance.  A breakdown might send the stock tumbling towards
the $35-$36 area.  More optimistic bears could target the July
lows near $32.




---

Compuware Corp - CPWR - close: 4.78 change: +0.39

WHAT TO WATCH: Shares of Compuware have been bid higher following
the October 17th earnings report.  The company refused to
speculate on forward guidance, but investors seem to have been
satisfied with a better-than-expected second-quarter result.
Earnings came in at 9 cents/share, versus the consensus estimate
of 6 cents/share.  We think CPWR is worth a mention on the Watch
List because shares have broken out to multi-month highs.  Other
than psychological resistance at $5.00, we don't see any major
obstacles until the $6.50-$7.00 region.




---

Intel Corp. - INTC - close: 16.59 change: +0.96

WHAT TO WATCH: There's been a lot of lively discussion here at
the PI office about whether the semiconductor sector has bottomed
out.  As impressive as the recent rally has been, most of us will
be skeptical as long as the semiconductor index (SOX.X) remains
under 300.  But should this level be topped, INTC might be a good
long candidate.  While the fundamental outlook for Intel looks
just as bad as it did earlier this month, the bulls will argue
that all the negativity has already been priced in.  Institutions
who focus on a long-term timeframe may also see INTC as a bargain
at current levels; it's not hard to imagine that the stock will
be trading in the $30-$40 range within the next few years.
Shorter-term traders can watch for a move above the September
high ($17.04) to provide a bullish entry point.  This would also
put INTC above bearish resistance at $17.00.  We'd be looking for
a breakout to send shares to the August highs near $19.50.




---

Mellon Financial - MEL - close: 28.88 change: +1.01

WHAT TO WATCH: MEL has already had one heckuva bull run - The
stock has bounced more than 30% from its recent lows!  Shares
started to surge higher after the company announced a solid
increase in profits for the third quarter.  Today's action had
MEL tacking on another 3.6%, taking shares above resistance at
$28.00.  The daily chart looks awfully tempting, because the next
level of resistance is all up way up at the 200-dma ($32.69).
Entries can be targeted at current levels, but be sure to keep
tight stops.  As overextended as MEL is, profit-taking could
emerge at any time.  P-n-f chartists will note that a trade at
$29.00 will create a double-top buy signal.




---

Sepracor Inc - SEPR - close: 8.72 change: +1.30

WHAT TO WATCH: SEPR began to move higher after the company
announced narrower-than-expected losses in its Monday earnings
report.  Investors paid little attention to Wednesday's price
target reduction from UBS Warburg.  The stock really caught a bid
on Friday after resistance at $8.00 gave way.  Although we
wouldn't be looking to jump on after today's 17.5% gain, a
pullback to $8.00 would offer a possible entry point for
aggressive traders.  The daily chart shows that SEPR does not
have any clear levels of resistance until $10.00.  The stock is
currently displaying a double-top buy signal.




---

Whirlpool Corp. - WHR - close: 47.07 change: -0.39

WHAT TO WATCH: Whirlpool reported in-line earnings last week, but
pension liability concerns seem to be weighing on the stock.
Shares saw additional selling pressure today after this morning's
durable goods orders showed weakness.  Technically, the bearish
oscillators and three-box p-n-f reversal indicate that WHR could
continue to sell off from its 50-dma ($50.09).  This moving
average coincides with the long-term downtrend of lower highs.
Watch for a break under today's low ($46.40) to pave the way for
a retest of the multi-year lows near $40.00.




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

IP - I-Paper looks like a good short below its 50-dma ($35.36).
Shares have shown poor relative strength versus the Dow Jones and
have failed to move above bearish p-n-f resistance.  Both the
MACD and daily stochastics are looking weak as well.

PBI - Shares have run into solid resistance near $35.00.  A
breakout above this level could lead to a test of the 200-dma
($38.84), but watch out for bearish p-n-f resistance at $37.00.

PHM - Several of the homebuilding stocks look like possible
shorts.  PHM and CTX are our favorites.  With Pulte rolling over
from its 200-dma, we'd be looking to go short on a move under
$44.85.  The stock has several breakaway gaps between $38 and $44
just begging to be filled.

QTRN - The daily chart looks pretty wild, with shares spiking
higher on October 14th and then pulling back to $10.00.  The
stock closed one cent below that day's high.  A move above this
level ($11.15) could send QTRN towards its 200-dma at $13.00.

ARO - ARO lost more than half its value after giving an earnings
warning on September 30th.  Shares have already filled in a good
chunk of the resulting gap, and now appear to be headed for the
50-dma at $14.01.

VAR - Nice breakout today.  VAR formed an bullish engulfing
candlestick and shot to an all-time high.  Short-term traders
could target a rally to the $50.00 level.

DLTR - Shares finally broke to new relative highs today after
spending several sessions hovering near the 50-dma ($24.14).  The
daily chart shows that there isn't any significant resistance
until $31.00.

WSH - This insurance stock has consistently found support at the
50-dma ($32.40), but the recent bearish MACD crossover and rising
volume indicate that shareholders won't be so lucky this time.  A
break below $32.00 would yield a possible action point, with an
initial profit-target near the 200-dma ($29.41).

UNH - Resistance at $100 held firm, and shares are now retracing
the gains from the first half of October.  Today's intraday
rebound makes it more difficult to find action points, but bears
could think about jumping on another failed rally at $100 or a
move below $94.50.

SMG - Shares of this chemical manufacturing company have rolled
over and are now threatening to fall below the 200-dma at $45.78.
The stock already broke through the 50-dma.  The bearish
oscillators are hinting at a retest of the $41 level, but watch
out for possible support near $43.

EBAY - Speculative bears could think about shorting EBAY at
current levels.  The stock moved sharply higher over the past two
weeks but couldn't break above resistance at $64.  It looks like
shares could pull back to the $57 area, near the 50-day and 200-
day moving averages.

SWK - Stanley Works is sitting at the top of its multi-month
downtrend.  This level is reinforced by the 50-dma at $32.95.  By
placing a stop just above resistance, short entries with
relatively low risk could be gauged at current levels.  The
$30.00 level would be a reasonable initial target.


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

Waiting for the Break

by Steven Price

The feel good vibes of the week made their way into Friday's
close, with the Dow up 126.65, the Nasdaq Composite up 32.42 and
the S&P 500 up 15.15 on the day.  While today's rally left
investors confident heading into the weekend, we have yet to take
out the next significant levels of resistance to the upside. The
Dow was unable to crack 8450; the S&P was unable to crack 900;
and the Nasdaq has yet to break 1350.  Of course, we also found
support at the 50-dma once again in the Dow (8241) and the S&P
(875), so the market appears rangebound for the moment. With
another heavy week of earnings ahead, that range is unlikely to
contain the market, but so far has at least given us some
guidance as to when a breakout is taking place.

The fact that we have not yet broken through to the upside may
actually be a piece of a puzzle that looks somewhat bearish when
we involve the bond market.  During the rally of the last two
weeks, we have seen a sell-off in bonds, indicating an asset
allocation as firms shift dollars from treasuries to equities.
However, the last two days have seen a buying of bonds once
again, indicating that there may not be the cash flow to boost
the equities through resistance.

This morning's economic data showed Consumer Sentiment at a nine-
year low, after falling for the fifth straight month.  The index
fell to a reading of 80.6 and seems to be foreshadowing a rough
holiday shopping season.  According to the survey, consumers are
worried that the stock market drop will make businesses reluctant
to invest and hire and more than half expect the economy to
worsen in the next year. Researchers also said that more
consumers mentioned a decline in wealth than at any time in the
last 50 years. With consumers expecting the worst, it is hard to
imagine much splurging in the next few months.

New orders for durable goods were down 5.6% in September,
highlighting business cutbacks in capital spending.  The drop was
far worse than the consensus of -1.8%. This was the biggest drop
since last November, and included a 12.6% decline in orders for
new capital goods.

The only positive data out this morning was in the housing
sector, which showed a record number of new home sales.  Existing
home sales also showed an increase.  However, the overall numbers
didn't really tell the story.  Almost the entire increase in new
homes was located in the Northeast part of the country. There was
weakness in the South and Midwest and an increase in the number
of new homes on the market.  While housing still remains strong,
it is starting to show signs of a slowdown.

The semiconductor stocks bounced back from yesterday's drop, with
the Semiconductor Index (SOX) finding support at the 50-dma.  The
index closed at 292.48 and now appears stuck between the 50-dma
of 276 and a ceiling of 300.  This actually appears bullish,
since the group is finding support on pullbacks and setting
higher lows. While a vast majority of the news in the sector
continues to be bad, shorts should wait for a 50-dma breakdown,
and those looking to speculate to the long side should look for a
breakout above 300.

One interesting observation is the action in the Market
Volatility Index (VIX). The index reflects the premium in the OEX
at the money options and can be used to gauge fear of the
downside.  The VIX has remained close to 40, in spite of previous
market rallies this week.  This morning, the VIX headed lower
ahead of the rally and continued downward all day. Friday usually
brings out premium sellers looking to capture time decay over the
weekend. However, the past few weeks have still had enough fear
built in that option sellers have had little conviction to go
short over the weekend, worrying that Monday could bring a sell-
off. That fear appears to be subsiding, as the VIX has reached
its lowest close since August.  If nothing else, it appears we
are returning to normal Friday behavior.

While the tone of this column is bearish, I will once again
repeat the mantra of trading what you see.  I would like to just
go blindly short, seeing nothing but questionable results and
resistance holding its line. However, until we get a breakdown in
support, I will be selective and remember that the market will
provide many opportunities over time, as long as I can come back
and play tomorrow.

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

Market Averages

DJIA ($INDU)

52-week High: 10679
52-week Low :  7286
Current     :  8443

Moving Averages:
(Simple)

 10-dma: 8301
 50-dma: 8241
200-dma: 9329

S&P 500 ($SPX)

52-week High: 1176
52-week Low :  775
Current     :  897

Moving Averages:
(Simple)

 10-dma:  881
 50-dma:  875
200-dma: 1008

Nasdaq-100 ($NDX)

52-week High: 1734
52-week Low :  795
Current     :  995

Moving Averages:
(Simple)

 10-dma:  955
 50-dma:  918
200-dma: 1178


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


Dow Jones Home Construction Index (DJUSHB): The homebuilders got
mixed news this morning.  New home sales reached record levels,
but the increase was concentrated almost entirely in the
northeast region.  The housing market appears to be cooling in
the South and Midwest.  The index has run into resistance at its
third straight lower level, indicating investors are not as
enamored with the homebuilding stocks now that mortgage rates are
on the rise. If the overall number of new home sales begins to
drop, this sector could hold some good short opportunities.

52-week High: 394
52-week Low : 214
Current     : 318

Moving Averages:
(Simple)

 10-dma: 312
 50-dma: 314
200-dma: 339

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

Market Volatility

The VIX is at its lowest point since the end of August.  With a
week of heavy earnings reports still ahead, this is curious.
However, with most of the big reports behind us, apparently the
weekend sellers are back, less fearful and trying to capture the
3-day time decay. Support levels having held in the Dow, S&P and
SOX may be contributing to the sense of safety, as well.


CBOE Market Volatility Index (VIX) = 36.27 -3.63
Nasdaq-100 Volatility Index  (VXN) = 50.39 -4.19

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

          Put/Call Ratio  Call Volume   Put Volume

Total          0.77        440,849       340,664
Equity Only    0.65        339,527       218,993
OEX            1.06         17,506        18,588
QQQ            1.25         31,702        39,630

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

Bullish Percent Data

           Current   Change   Status
NYSE          36      + 0     Bull Confirmed
NASDAQ-100    55      + 0     Bull Alert
Dow Indust.   53      + 0     Bull Confirmed
S&P 500       49      + 1     Bull Alert
S&P 100       53      - 1     Bull Alert

Bullish percent measures the number of stocks in an index
currently trading on a buy signal on their point and figure
chart.  Readings above 70 are considered overbought, and readings
below 30 are considered oversold.

Bull Confirmed  - Aggressively long
Bull Alert      - Cautiously long
Bull Correction - Pause or pullback in upward trend
Bear Alert      - Take defensive action if long
Bear Confirmed  - High risk if long, good conditions for shorting
Bear Correction - Pause or rebound in downtrend

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

5-Day Arms Index   0.85
10-Day Arms Index  0.89
21-Day Arms Index  1.10
55-Day Arms Index  1.26


Extreme readings above 1.5 are bullish, and readings below .85
are bearish.  These signals don't occur often and tend be early,
but when they do, they can signal significant market turning
points.

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

Market Internals

        Advancers     Decliners
NYSE       1894          1996
NASDAQ      859          1101

        New Highs      New Lows
NYSE         24              57
NASDAQ       42              74

        Volume (in millions)
NYSE     1,584
NASDAQ   1,461


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

Commitments Of Traders Report: 10/22/02

Weekly COT report discloses positions held by small specs
and commercial traders of index futures contracts at the
Chicago Mercantile Exchange and Chicago Board of Trade. COT data
can be found at www.cftc.gov.

Small specs are the general trading public with commercials being
financial institutions. Commercials are historically on the
correct side of future trend changes while small specs tend
to be wrong.

S&P 500

Commercials added to both long and short positions, however
increased shorts by an additional 11,000 contracts.  Small
traders left long positions virtually unchanged, but reduced the
short side by 11,000, taking the opposite approach.


Commercials   Long      Short      Net     % Of OI
10/01/02      423,661   440,133   (16,472)   (1.9%)
10/08/02      427,070   445,135   (18,065)   (2.1%)
10/15/02      429,448   449,138   (19,690)   (2.2%)
10/22/02      432,775   463,827   (31,052)   (3.5%)

Most bearish reading of the year: (111,956) -   3/6/02
Most bullish reading of the year: ( 16,472) - 10/01/02

Small Traders Long      Short      Net     % of OI
10/01/02      123,371    74,704    48,667     24.5%
10/08/02      131,486    81,010    50,476     23.7%
10/15/02      134,507    83,714    50,793     23.3%
10/22/02      134,641    72,681    61,960     29.8%

Most bearish reading of the year:  36,513 - 5/01/01
Most bullish reading of the year: 114,510 - 3/26/02

NASDAQ-100

Commercials increased their long contract positions by 3,400
contracts, while increasing shorts by 2,100.  Small traders left
longs unchanged, while reducing shorts by 3,600.


Commercials   Long      Short      Net     % of OI
10/01/02       46,000     52,976    (6,976) ( 7.0%)
10/08/02       45,384     55,504   (10,120) (10.0%)
10/15/02       45,578     51,969    (6,391) ( 6.6%)
10/22/02       48,954     54,088    (5,134) ( 4.9%)

Most bearish reading of the year: (15,521) -  3/13/02
Most bullish reading of the year:   9,068  - 06/11/02

Small Traders  Long     Short      Net     % of OI
10/01/02       11,896     9,575     2,321    10.8%
10/08/02       10,735     5,721     5,014    30.4%
10/15/02       10,185    12,478     2,293    10.1%
10/22/02       10,202     8,892     1,310    11.8%

Most bearish reading of the year: (10,769) - 06/11/02
Most bullish reading of the year:   8,460  -  3/13/02

DOW JONES INDUSTRIAL

In a continuing trend with other markets, commercials increased
short positions by 2,000 more contracts than they increased
longs.  Small traders reduced longs positions by 1,600 and shorts
by 1,000.


Commercials   Long      Short      Net     % of OI
10/01/02       18,969     8,903   10,066      36.1%
10/08/02       19,550    11,823    7,727      24.6%
10/15/02       20,914     9,630   11,284      36.9%
10/22/02       22,189    13,448    8,741      24.5%

Most bearish reading of the year: (8,322) -  1/16/01
Most bullish reading of the year: 15,135  - 10/16/01

Small Traders  Long      Short     Net     % of OI
10/01/02        6,809    10,503    (3,694)   (21.3%)
10/08/02        7,890     9,645    (1,755)   (10.0%)
10/15/02        6,040    10,329    (4,289)   (26.2%)
10/22/02        4,445     9,270    (4,825)   (35.1%)

Most bearish reading of the year:  (8,777) - 10/12/01
Most bullish reading of the year:   1,909  -  1/16/01

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




=================================================================
To stop receiving this PremierInvestor.net Newsletter,
send email to Contact Support
=================================================================
DISCLAIMER
=================================================================

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

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

*****************************************************************
ADVERTISING INFORMATION

For more information on advertising in PremierInvestor.net
Newsletter, or any Premier Investor Network newsletter please
contact Contact Support.

*****************************************************************


Copyright ) 2002  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.
PremierInvestor.net Newsletter          Weekend Edition 10-25-2002
                                                    section 2 of 3
Copyright ) 2002, All rights reserved.
Redistribution in any form is strictly prohibited.

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

In section two:

Stock Bottom / Active Trader
  Bearish Play Updates:  MLM, SUP
  Closed Bearish Plays:  FTN, RTH

High Risk/Reward
  New Bullish Plays:     WPI
  Bullish Play Updates:  T


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

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

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

Martin Marietta Mat. - MLM - cls: 29.08 chg: +0.82 stop: *text*

The major market indices held firm this morning, despite the
release of economic data that didn't give the bulls much to cheer
about.  MLM moved higher during the first two hours of trading
and closed with a gain of 2.9%.  This short play was never
activated, as shares never breached the $28.00 level.  The stock
performed well today but this strength could disappear if the
broader market heads lower next week.  We still believe MLM will
see heavy selling if shares break to new lows, so we're going to
maintain or entry trigger at $27.99.  If the stock reaches this
level our stop will be set at $29.61.  We'll probably drop this
play if we're not triggered on Monday, because Martin announces
earnings on the 31st.

Picked on October xxth at $xx.xx <- see text
Results since picked:      +0.00
Earnings Date           10/31/02 (confirmed)




---

Superior Industries - SUP - cls: 43.40 chg: -1.28 stop: *text*

Shares of manufacturing companies looked poised to trade lower
this morning following the release of the latest durable goods
data, which showed a steep decline in both new orders and
shipments.  A few weeks ago these numbers would've probably led
to a widespread sell-off.  However, lately it seems the bears are
having a harder time finding traction.  SUP traded in a
relatively narrow range on Friday and finished with a small gain.
Shares bounced from the $43.00 level again, leaving our play un-
triggered.  Today's relative weakness versus the Dow Jones
suggests that investors may be unwilling to buy SUP below its 50-
dma and 200-dma.  With the daily stochastics continuing to look
bearish, we believe SUP will see more downside next week.  Our
entry trigger remains at $42.97, with a stop-loss at $46.01.

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





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

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

First Tenn. Natl. - FTN - cls: 37.10 chg: +1.32 stop: 37.01

Another big day in the markets with a triple digit gain for the
Dow, on a Friday no less, was enough fuel to bounce the Banking
index.  The S&P BIX.X bounced from 279 to 289, which in turn
helped FTN with its own rally attempt.  Was it real buying or
just more shorts not willing to take any heat over the weekend?
We don't know but the close over the 200 & 50-dma's as well as
the $37.00 level does look rather bullish for FTN but this
doesn't alleviate its overbought status.  The PI newsletter had
just "opened" this as a new stock pick on Thursday night and the
stop at 37.01 closed us out for a $1.23 loss.  Those more
conservative traders who took to heart our suggestion to wait for
FTN to trade under the $35.50 mark can congratulate themselves
for their patience.

Picked on October 24th at $35.78
Results since picked:      -1.23
Earnings Date           10/16/02 (confirmed)




---

Retail HOLDRS - RTH - close: 78.50 change: +1.33 stop: *text*

This morning's release of the Michigan Sentiment Index contained
no surprises.  The gauge of consumer sentiment showed a reading
of 80.6, just below the expected number of 81.0.  With no other
major news driving the retail sector, RTH followed the Dow Jones
higher and finished with a gain of 1.7%.  We've given this stock
a few days to start dropping, but so far it's done nothing but
move higher.  Rather than change our entry strategy we're simply
going to drop this un-triggered play.  We'll keep an eye on these
HOLDRS, as an eventual breakdown below the $75.00 might still
present a good shorting opportunity.

Picked on October xxth at $xx.xx <- see text
Results since picked:      +0.00
Earnings Date                N/A






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

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

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

Watson Pharmaceutical - WPI - cls: 25.82 chg: +1.02 stop: *text*

Company Description:
Watson Pharmaceuticals, Inc., headquartered in Corona, CA, is a
leading specialty pharmaceutical company that develops,
manufactures, markets and distributes branded and generic
pharmaceutical products. Watson pursues a growth strategy
combining internal product development, strategic alliances and
collaborations and synergistic acquisitions of products and
businesses.  (source: company press release)

Why We Like It:
Watson Pharmaceutical hasn't been the screamer that some other
equities have been these last three weeks but that means it looks
a lot less overbought too.  Yet we're not saying the stock has
been standing still either.  Shares have actually been fighting
with tough overhead resistance at the 200-dma and the $26.00
level.  The WPI stock recently bounced near the $22 mark and has
since broke back above the 50-dma.  That same dma is now acting
as new short-term support.  Friday's session helped shares close
over the 200-dma for the first time since October 2001.  We
believe that the Biotech sector, which has been consolidating
sideways, could be ready for another move up if the broader
markets continue to rally.  Should the BTK.X be able to rally to
the 400 level of resistance then shares of WPI might be able to
follow suit and rally to the $30 level of overhead resistance.

The company is not without its news risk.  Just recently, on
October 22nd, 2002, the FDA approved rival drug maker Barr Labs
(BRL) to make and market generic versions of two oral
contraceptives.  The two new generic versions will compete with
WPI's NOR-QD and Ortho-McNeil's Ortho-Micronor contraceptives.
Believe it or not, shares of WPI did not react negatively to the
news but it remains an example that biotech stocks are always
subject to potential news risk events and should be played with
care.  Coming up on the company's calendar is the Salomon Smith
Barney 2002 Health Care Conference in New York, which WPI will
present at on Tuesday, Oct. 29th.  Occasionally, these events can
provide a positive stimulus to a company's stock price should new
and exciting data be presented.  Watson has also confirmed that
it will announce its earnings on Nov. 6th prior to the opening
bell.

Our plan to go long WPI is the following.  Friday's close over
the 200-dma is a bullish signal of strength yet the stock has not
been able to conquer the $26.00 level of very strong resistance.
Should this occur, then short covering could quickly push shares
higher.  We're going to initiate a long play on WPI if and when
shares trade at or above $26.11.  Take note, should the stock GAP
UP above $26.50 we will NOT open the play.  Once we are triggered
into the position we'll use an initial stop loss at $23.99, which
is below the 50-dma.  Our short-term target is $30.00 but the
stock could trade higher given time.  We'll evaluate as the play
progresses.  We do not expect to hold this hypothetical long
position over the company's earnings report.

For Annotated Chart: Click Here



Picked on October xxth at $xx.xx <-- See text
Results since picked:      +0.00
Earnings Date           11/06/02 (confirmed)





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

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

AT&T Corp. - T - close: 13.34 change: +0.23 stop: 11.98

Two trading days and we're basically break-even in this play.
Shares have twice pulled back to the 200-dma ($13.07) and
rebounded, which is a positive sign for the bulls.  Overall we're
pleased with the way T has maintained its recent gains.  With the
Dow Jones consistently finding support near its 50-dma, the
prospects for a breakout to new relative highs look good.  New
entries can be targeted on a move above $13.50.  On a sector-
related note, we'll be watching how the IXTCX combined telecom
index behaves near the 110.  A breakout above this resistance
level could lead to more bullish action in T.

Picked on October 23rd at $13.40
Results since picked:      -0.06
Earnings Date           10/22/02 (unconfirmed)







=================================================================
To stop receiving this PremierInvestor.net Newsletter,
send email to Contact Support
=================================================================
DISCLAIMER
=================================================================

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

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

*****************************************************************
ADVERTISING INFORMATION

For more information on advertising in PremierInvestor.net
Newsletter, or any Premier Investor Network newsletter please
contact Contact Support.

*****************************************************************


Copyright ) 2002  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.
PremierInvestor.net Newsletter         Weekend Edition 10-25-2002
                                                   Section 3 of 3
Copyright ) 2002, All rights reserved.
Redistribution in any form is strictly prohibited.

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

In section three:

Market Watch for Week of October 28th
   - Major Earnings
   - Stock Splits
   - Economic Reports

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

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


=========================================
Market Watch for the week of October 28th
=========================================

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

Symbol  Company               Date           Comment      EPS Est

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

ADVP   AdvancePCS            Mon, Oct 28  After the Bell      0.38
AXP    American Express      Mon, Oct 28  -----N/A-----       0.51
AWK    American Water Works  Mon, Oct 28  Before the Bell     0.60
ARI    Arden Realty          Mon, Oct 28  After the Bell      0.65
SAN    Banco Santander-Chile Mon, Oct 28  -----N/A-----       0.34
CX     Cemex, S.A. de C.V.   Mon, Oct 28  After the Bell      0.40
CUZ    Cousins Properties    Mon, Oct 28  After the Bell      0.56
GGP    General Growth Prop   Mon, Oct 28  After the Bell      1.41
HIG    Hartford Finl Srvcs   Mon, Oct 28  After the Bell      1.11
HUM    Humana                Mon, Oct 28  05:00 am ET         0.31
ICST   Integrated Crcut Sys  Mon, Oct 28  Before the Bell     0.20
K      Kellogg               Mon, Oct 28  Before the Bell     0.48
KIM    Kimco Realty          Mon, Oct 28  After the Bell      0.75
KG     King Pharmaceuticals  Mon, Oct 28  Before the Bell     0.34
WFR    MEMC Elec Materials   Mon, Oct 28  After the Bell     -0.19
MCY    Mercury General       Mon, Oct 28  -----N/A-----       0.64
NFS    Nationwide Finl Serv  Mon, Oct 28  After the Bell      0.79
NWL    Newell Rubbermaid     Mon, Oct 28  Before the Bell     0.45
IX     Orix Corporation      Mon, Oct 28  Before the Bell      N/A
PNW    Pinnacle West         Mon, Oct 28  Before the Bell     1.45
PVN    Providian Financial   Mon, Oct 28  After the Bell      0.04
IQW    Quebecor World        Mon, Oct 28  -----N/A-----       0.62
RCII   Rent-A-Center         Mon, Oct 28  After the Bell      1.12
RSG    Republic Services     Mon, Oct 28  After the Bell      0.37
RHA    Rhodia S.A.           Mon, Oct 28  -----N/A-----        N/A
RSE    Rouse                 Mon, Oct 28  -----N/A-----       0.97
SAFC   SAFECO                Mon, Oct 28  Before the Bell     0.44
SHR    Schering A G          Mon, Oct 28  -----N/A-----        N/A
SNE    Sony Corporation      Mon, Oct 28  Before the Bell      N/A
TP     TPG NV                Mon, Oct 28  -----N/A-----       0.22
UDR    United Dominion Rlty  Mon, Oct 28  After the Bell      0.40
WRI    Weingarten Realty     Mon, Oct 28  Before the Bell     0.82


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


ATVI   Activision            Tue, Oct 29  -----N/A-----       0.10
ASX    Adv Semicon Eng       Tue, Oct 29  Before the Bell     0.01
AGU    Agrium                Tue, Oct 29  After the Bell     -0.01
AMLN   Amylin Pharm          Tue, Oct 29  Before the Bell    -0.30
AVE    Aventis               Tue, Oct 29  -----N/A-----        N/A
BVF    Biovail Corporation   Tue, Oct 29  Before the Bell     0.46
BOW    Bowater               Tue, Oct 29  Before the Bell    -0.88
BP     BP plc                Tue, Oct 29  05:00 am ET         0.64
BTI    British American Tob  Tue, Oct 29  Before the Bell      N/A
BPO    Brookfield Properties Tue, Oct 29  -----N/A-----       0.59
CAJ    Canon                 Tue, Oct 29  -----N/A-----        N/A
CBL    CBL & Ass Properties  Tue, Oct 29  After the Bell      1.01
CRL    Charles River Lab     Tue, Oct 29  After the Bell      0.36
CSB    CIBA SPEC CHEM HLDG   Tue, Oct 29  01:00 am ET         0.63
CIT    CIT Group             Tue, Oct 29  Before the Bell     0.73
CCU    Clear Channel Comm    Tue, Oct 29  Before the Bell     0.32
CTC    Comp Tele de Chile    Tue, Oct 29  After the Bell      0.02
CEFT   Concord EFS           Tue, Oct 29  Before the Bell     0.17
CAM    Cooper Cameron        Tue, Oct 29  Before the Bell     0.37
CVH    Coventry Health Care  Tue, Oct 29  Before the Bell     0.63
COX    Cox Communication     Tue, Oct 29  Before the Bell    -0.04
ELE    Endesa, S.A.          Tue, Oct 29  -----N/A-----        N/A
ENR    Energizer, Inc.       Tue, Oct 29  -----N/A-----       0.42
EOP    Eq Office Prop Trust  Tue, Oct 29  Before the Bell     0.77
FOE    Ferro                 Tue, Oct 29  Before the Bell     0.37
FMC    FMC                   Tue, Oct 29  After the Bell      0.78
FTE    France Telecom        Tue, Oct 29  -----N/A-----        N/A
FMS    Fresenius Med Care    Tue, Oct 29  -----N/A-----       0.24
FDP    Fresh Del Monte Prod  Tue, Oct 29  Before the Bell     0.41
HGSI   Human Genome Sciences Tue, Oct 29  Before the Bell    -0.38
IM     Ingram Micro          Tue, Oct 29  -----N/A-----       0.11
IVX    Ivax                  Tue, Oct 29  Before the Bell     0.16
JP     Jefferson-Pilot       Tue, Oct 29  After the Bell      0.85
LAF    Lafarge North America Tue, Oct 29  -----N/A-----       1.87
MXIM   Maxim Integ Products  Tue, Oct 29  After the Bell      0.22
MUR    Murphy Oil            Tue, Oct 29  After the Bell      0.62
MYL    Mylan Laboratories    Tue, Oct 29  Before the Bell     0.50
NXTP   Nextel Partners       Tue, Oct 29  -----N/A-----      -0.29
GAS    Nicor                 Tue, Oct 29  After the Bell      0.41
NVO    Novo-Nordisk          Tue, Oct 29  -----N/A-----        N/A
OMC    Omnicom Group         Tue, Oct 29  Before the Bell     0.68
OHP    Oxford Health Plans   Tue, Oct 29  Before the Bell     1.02
PFGC   Performance Food      Tue, Oct 29  Before the Bell     0.40
PER    Perot Systems         Tue, Oct 29  Before the Bell     0.17
PAA    Plains All Am Pplne   Tue, Oct 29  Before the Bell     0.38
PDS    Prec Drill Corp       Tue, Oct 29  -----N/A-----       0.12
PG     Procter & Gamble Comp Tue, Oct 29  -----N/A-----       1.10
PEG    Public Serv Enter Grp Tue, Oct 29  08:30 am ET         1.08
RGIS   Regis Corporation     Tue, Oct 29  Before the Bell     0.43
SANM   Sanmina-SCI Corp.     Tue, Oct 29  After the Bell      0.02
SVM    ServiceMaster         Tue, Oct 29  Before the Bell     0.18
TEVA   Teva Pharmaceutical   Tue, Oct 29  -----N/A-----       0.68
EL     Estie Lauder Co Inc.  Tue, Oct 29  Before the Bell     0.26
TRP    TransCanada Pipelines Tue, Oct 29  -----N/A-----       0.23
RIG    Transocean Inc.       Tue, Oct 29  Before the Bell     0.27
BER    W.R. Berkley          Tue, Oct 29  After the Bell      0.77
WSH    Willis Grp Hldng Lmtd Tue, Oct 29  Before the Bell     0.28


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

AW     Allied Waste Ind      Wed, Oct 30  After the Bell      0.27
APCC   Am Power Conversion   Wed, Oct 30  After the Bell      0.17
APPB   Applebee`s Intl       Wed, Oct 30  After the Bell      0.36
BLDP   Ballard Power Systems Wed, Oct 30  Before the Bell    -0.38
BE     BearingPoint, Inc.    Wed, Oct 30  Before the Bell     0.09
BHP    BHP Billiton Ltd      Wed, Oct 30  4:30 pm ET          0.10
CDX    Catellus Development  Wed, Oct 30  Before the Bell     0.41
CB     Chubb                 Wed, Oct 30  Before the Bell     1.11
CLX    Clorox                Wed, Oct 30  Before the Bell     0.54
COCO   Corinthian Colleges   Wed, Oct 30  Before the Bell     0.23
GLW    Corning               Wed, Oct 30  Before the Bell    -0.08
CXR    Cox Radio             Wed, Oct 30  Before the Bell     0.15
CVS    CVS                   Wed, Oct 30  Before the Bell     0.38
DRE    Duke Realty Corp      Wed, Oct 30  -----N/A-----       0.60
EDMC   Education Management  Wed, Oct 30  Before the Bell     0.07
EDS    Electronic Data Sys   Wed, Oct 30  After the Bell      0.12
ETR    Entergy               Wed, Oct 30  -----N/A-----       1.45
EXC    Exelon Corporation    Wed, Oct 30  Before the Bell     1.56
FIC    Fair Isaac &Co        Wed, Oct 30  After the Bell      0.43
FRT    Fed Rlty Invest Trst  Wed, Oct 30  -----N/A-----       0.64
GRMN   Garmin Ltd.           Wed, Oct 30  Before the Bell     0.24
GT     Goodyear Tire Rubber  Wed, Oct 30  -----N/A-----       0.08
GXP    Grt Plains Energy     Wed, Oct 30  After the Bell       N/A
HAR    Harman Intl Ind       Wed, Oct 30  -----N/A-----       0.24
HTV    Hearst-Argyle TV      Wed, Oct 30  Before the Bell     0.23
KMG    Kerr-McGee            Wed, Oct 30  Before the Bell     0.73
LH     Laboratory Corp.      Wed, Oct 30  After the Bell      0.44
LVLT   Level 3 Comm          Wed, Oct 30  Before the Bell    -0.79
LNC    Lincoln National      Wed, Oct 30  Before the Bell     0.55
LUX    Luxottica Group       Wed, Oct 30  -----N/A-----        N/A
MKL    Markel                Wed, Oct 30  Before the Bell     2.05
MC     Matsushita El Ind     Wed, Oct 30  -----N/A-----        N/A
MDP    Meredith Corporation  Wed, Oct 30  Before the Bell     0.31
MX     Metso Corporation     Wed, Oct 30  05:00 am ET          N/A
MON    Monsanto Co.          Wed, Oct 30  Before the Bell    -0.57
NBL    Noble Energy, Inc.    Wed, Oct 30  Before the Bell     0.09
OCAS   Ohio Casualty         Wed, Oct 30  -----N/A-----       0.23
OKE    ONEOK Inc.            Wed, Oct 30  After the Bell      0.15
PIO    Pioneer Corporation   Wed, Oct 30  -----N/A-----        N/A
PT     Portugal Telecom      Wed, Oct 30  -----N/A-----        N/A
PLD    ProLogis Trust        Wed, Oct 30  After the Bell      0.61
STR    Questar               Wed, Oct 30  After the Bell      0.25
O      Realty Income Corp    Wed, Oct 30  -----N/A-----       0.70
RCI    Renal Care Group      Wed, Oct 30  After the Bell      0.46
RMD    ResMed                Wed, Oct 30  After the Bell      0.28
COL    Rockwell Collins,     Wed, Oct 30  Before the Bell     0.36
SO     Southern Company      Wed, Oct 30  Before the Bell     0.79
SV     Stilwell Financial    Wed, Oct 30  -----N/A-----       0.15
TXU    TXU Corp.             Wed, Oct 30  Before the Bell     0.90
UN     Unilever N.V.         Wed, Oct 30  -----N/A-----       1.02
UL     Unilever PLC          Wed, Oct 30  Before the Bell     0.61
UMC    United Micro Corp     Wed, Oct 30  -----N/A-----       0.02
VLO    Valero Energy         Wed, Oct 30  Before the Bell     0.23
VSH    Vishay Intertech      Wed, Oct 30  Before the Bell     0.13
WBK    Westpac Banking       Wed, Oct 30  After the Bell       N/A
WGL    WGL Holdings Inc      Wed, Oct 30  After the Bell     -0.43
XL     XL Capital            Wed, Oct 30  After the Bell      1.60


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

AET    Aetna                 Thu, Oct 31  Before the Bell     0.70
AC     All Cap Mana Holding  Thu, Oct 31  -----N/A-----       0.50
ATK    Alliant Techsystems   Thu, Oct 31  Before the Bell     0.72
APC    Anadarko Petroleum    Thu, Oct 31  -----N/A-----       0.69
AU     Anglogold Limited     Thu, Oct 31  -----N/A-----       0.44
CPT    Camden Property Trust Thu, Oct 31  After the Bell      0.82
CCJ    Cameco                Thu, Oct 31  -----N/A-----        N/A
CVX    ChevronTexaco Corp.   Thu, Oct 31  Before the Bell     1.30
CEG    Cnstlation Enrgy Grp  Thu, Oct 31  Before the Bell     1.05
DTC    Domtar                Thu, Oct 31  -----N/A-----       0.12
DQE    DQE                   Thu, Oct 31  After the Bell      0.48
ETM    Entercom Comm         Thu, Oct 31  Before the Bell     0.27
EPD    Enterprise Pr Prtnrs  Thu, Oct 31  Before the Bell     0.24
XOM    Exxon Mobil Corp      Thu, Oct 31  Before the Bell     0.43
FIA    Fiat S.p.A.           Thu, Oct 31  Before the Bell      N/A
GILD   Gilead Sciences       Thu, Oct 31  After the Bell      0.07
GR     Goodrich Corporation  Thu, Oct 31  Before the Bell     0.64
HPC    Hercules              Thu, Oct 31  Before the Bell     0.18
ICI    Imperial Chem Ind Plc Thu, Oct 31  -----N/A-----        N/A
NDE    IndyMac Bancorp Inc.  Thu, Oct 31  Before the Bell     0.64
IRM    Iron Mountain         Thu, Oct 31  Before the Bell     0.17
JEC    Jacobs Engin Grp Inc  Thu, Oct 31  Before the Bell     0.52
JHF    Jhn Hancock Finl Serv Thu, Oct 31  After the Bell      0.71
JNY    Jones Apparel         Thu, Oct 31  Before the Bell     0.96
LR     Lafarge               Thu, Oct 31  -----N/A-----        N/A
LYO    Lyondell Chemical     Thu, Oct 31  -----N/A-----      -0.01
MLM    Martin Marietta Mat   Thu, Oct 31  Before the Bell     0.81
NFX    Newfield Exploration  Thu, Oct 31  -----N/A-----       0.37
NMR    Nomura Holdings, Inc. Thu, Oct 31  Before the Bell      N/A
OCR    Omnicare              Thu, Oct 31  Before the Bell     0.38
PNP    Pan Pacific Retail    Thu, Oct 31  -----N/A-----       0.74
PCZ    Petro-Canada          Thu, Oct 31  -----N/A-----       0.75
PD     Phelps Dodge          Thu, Oct 31  Before the Bell    -0.37
RD     Royal Dutch Petroleum Thu, Oct 31  05:00 am ET         0.69
SMG    Scotts                Thu, Oct 31  Before the Bell    -0.41
SC     Shl Trnsprt Trdng Co  Thu, Oct 31  04:00 am ET         0.57
SPG    Simon Property Group  Thu, Oct 31  Before the Bell     0.93
SRCL   Stericycle            Thu, Oct 31  After the Bell      0.26
TDK    TDK                   Thu, Oct 31  -----N/A-----        N/A
PZB    The Pittston Company  Thu, Oct 31  Before the Bell     0.43
WMI    Waste Management      Thu, Oct 31  -----N/A-----       0.38
WON    Westwood One          Thu, Oct 31  Before the Bell     0.24


------------------------- FRIDAY -------------------------------

LNT    Alliant Energy        Fri, Oct 25  Before the Bell     0.68
CI     CIGNA                 Fri, Nov 01  Before the Bell     1.99
DDR    Devel Diver Realty    Fri, Nov 01  Before the Bell     0.61
HSP    Hisp Brdcstng Company Fri, Nov 01  Before the Bell     0.11


----------------------------------------------
Upcoming Stock Splits In The Next Two Weeks...
----------------------------------------------

Symbol  Company Name              Ratio    Payable     Executable

CPBI    CPB Inc.                  2:1      10/25       10/28
EASI    Engineered Support Sys.   3:2      10/31       11/01


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

The economic calendar is a bit more packed this week with
GDP, PMI, the ECI report on Thursday and vehicle sales and
payroll data on Friday.  However, 3Q earnings will remain the
spotlight aside from any Iraqi developments.

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

Monday, 10/28/02
----------------
None

Tuesday, 10/29/02
-----------------
Consumer Confidence(DM) Sep  Forecast:   90.2  Previous:     93.3


Wednesday, 10/30/02
-------------------
None


Thursday, 10/31/02
------------------
Initial Claims (BB)   10/26  Forecast:     NA  Previous:     389K
GDP-Adv. (BB)            Q3  Forecast:   3.6%  Previous:     1.3%
Chain Deflator-Adv.(BB)  Q3  Forecast:   1.3%  Previous:     1.2%
Employment Cost Index(BB)Q3  Forecast:   0.9%  Previous:     1.0%
Chicago PMI (DM)        Oct  Forecast:   50.0  Previous:     48.1
Help Wanted Index (DM)  Sep  Forecast:    N/A  Previous:       41


Friday, 11/01/02
----------------
Auto Sales (NA)         Sep  Forecast:   5.7M  Previous:     5.5M
Truck Sales (NA)        Oct  Forecast:   7.6M  Previous:     7.3M
Nonfarm Payrolls (BB)   Oct  Forecast:   -10K  Previous:     -43K
Unemployment Rate (BB)  Oct  Forecast:   5.8%  Previous:     5.6%
Hourly Earnings (BB)    Oct  Forecast:   0.3%  Previous:     0.3%
Average Workweek (BB)   Oct  Forecast:   34.2  Previous:     34.3
Personal Income (BB)    Sep  Forecast:   0.4%  Previous:     0.3%
Personal Spending (BB)  Sep  Forecast:  -0.2%  Previous:     0.3%

ISM Index (DM)          Oct  Forecast:   49.0  Previous:     49.5
Construction Spnding(DM)Sep  Forecast:  -0.3%  Previous:    -0.4%

Definitions:
DM=  During the Market
BB=  Before the Bell
AB=  After the Bell
NA=  Not Available


==================
  Trading Ideas
==================

This section contains stocks that meet criteria which may make
them of interest to long and short side traders.  These are not
recommendations, nor have they been reviewed by PremierInvestor
editors for investment potential.  However, each of them has
technical and fundamental characteristics that make them worthy
of further review by traders and investors looking for fresh ideas.
New stocks will appear daily following the market close.


Value Plays With Bullish Signals
---------------------------------
Ticker  Company Name               Close     Change

FE      FirstEnergy Corp           31.05     +0.57
AEP     American Electric Power    24.65     +2.78
NFS     Nationwide Financial       29.00     +0.97
ALE     Allete Inc                 21.36     +0.65
CBT     Cabot Corp                 22.90     +0.63
QTRN    Quintiles Transnational    11.15     +0.76

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

ESPD    ESpeed Inc                14.15     +1.20
ZRAN    Zoran Corp                14.23     +1.43
MEE     Massey Energy              7.70     +2.08
DRD     Duane Reade               19.70     +2.76
ARO     Aeropostale Inc           11.82     +1.15
SAXN    Saxon Capital             10.51     +1.03
KOSP    Kos Pharmaceuticals       15.25     +1.29
GLGC    Gene Logic                 7.49     +1.19
SLXP    Salix Pharmaceuticals      7.98     +3.53
ASYT    Asyst Technologies         5.90     +1.21

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

TM      Toyota Motor               50.92     +1.12
CCL     Carnival Corp              27.33     +1.67
POC     P&O Princess               30.61     +1.81
VAR     Varian Medical             47.98     +2.23
DLTR    Dollar Tree Stores         26.35     +2.53
CELG    Celgene Corp               20.68     +1.52
IMN     Imation Corp               41.53     +2.76
GETY    Getty Images               26.41     +2.76
RMD     Resmed                     32.40     +1.34
IDXX    Idexx Laboratories         34.78     +2.23
DIAN    Dianon Systems             42.84     +4.04

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

UNH     Unitedhealth Group         97.09     -1.19
LMT     Lockheed Martin            56.63     -2.47
WMI     Waste Management           20.87     -1.28
DVN     Devon Energy               49.45     -1.65
AGN     Allergan Inc               55.27     -2.13
WSH     Willis Group               32.79     -1.09

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

NE      Noble Corp                 31.45     -3.61
ESV     Ensco Intl.                26.65     -1.93
KMG     Kerr-Mcgee                 40.84     -1.12
MME     Mid-Atlantic Medical       40.85     -1.12
SMG     Scotts Co                  45.98     -0.97
JILL    J. Jill Group              21.80     -0.86




=================================================================
To stop receiving this PremierInvestor.net Newsletter,
send email to Contact Support
=================================================================
DISCLAIMER
=================================================================

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

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

*****************************************************************
ADVERTISING INFORMATION

For more information on advertising in PremierInvestor.net
Newsletter, or any Premier Investor Network newsletter please
contact Contact Support.

*****************************************************************


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

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.

To ensure you continue to receive email from Option Investor please add "support@optioninvestor.com"

Option Investor Inc
PO Box 630350
Littleton, CO 80163

E-Mail Format Newsletter Archives