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Daily Newsletter, Wednesday, 11/20/2002

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PremierInvestor.net Newsletter              Wednesday 11-20-2002
                                                  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:      My Opinion? Who Cares
Watch List:       AGN, AMD, BGEN, DLX, TXN, and more...
Play of the Day:  Software Bears: An Endangered Species?


******************************************************************
MARKET WRAP  (view in courier font for table alignment)
******************************************************************
11-20-2002                High    Low     Volume Advance/Decl
DJIA     8623.01 + 148.23 8643.03 8439.06  1874 mln   1382/481
NASDAQ   1419.35 +  44.84 1419.64 1375.41  1200 mln   1524/194
S&P 100   466.91 +   9.30  467.40  456.61   totals    2906/675
S&P 500   914.15 +  17.41  915.01  894.93
RUS 2000  388.59 +   9.02  388.59  379.37
DJ TRANS 2281.37 +  11.55 2288.12  2263.91
VIX        28.66 -   2.70   31.46   28.66
VIXN       44.82 -   0.70   47.67   42.78
Put/Call Ratio 0.63
******************************************************************


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

My Opinion? Who Cares!

by Steven Price

Talk about rangebound! The broader markets cannot seem to break
out in either direction right now, leading to one headache after
another for momentum traders. About the only market participants
happy right now are those that started selling option premium
when the Market Volatility Index (VIX) was still around 50 in the
middle of October.  Since then, we have seen a 44% drop in the
VIX, and an awful lot of premium decay along with it. The current
sideways movement is taking a toll on premiums and as we head
into the holiday season and market action slows, market makers
will be quicker to lower premium levels, rather than continue to
purchase as the VIX falls.

The current market movement is a study in how option premiums are
affected in upward trending markets, even if that upward trend is
only an intermediate one.  Many investors believe the VIX
represents movement in the OEX and the overall market.  While
this is partly true, there is a little more to it than that.
With a Dow that has not seen a trading range of less than 100
points since September 20, and only two since June 18, common
sense says that volatility should still be near all-time highs.
I'm sure there are many long option holders right now wondering
why a $3.00 call went to $2.50, even thought the stock went up a
dollar.  In reality, implied volatility almost always comes down
as the market goes up.  The one big exception to that rule was
during the internet boom of the late 1990s, when stocks were
liable to gap up as quickly as they went down.  However, that was
the exception to the rule.  There are a couple of reasons for
this phenomenon. Under normal market conditions, stocks go up
much more slowly than they fall.  Additionally, the most common
option trade is the covered write.  This is when purchasers of
stock sell out of the money calls against their purchase to
reduce the price. While they risk having the stock called away if
the stock rallies through the strike before expiration, therefore
limiting upside potential, it still provides a winner on the
rally up to the strike. This activity also provides a tremendous
amount of selling pressure on options during market rallies,
therefore leading to a drop in implied volatility, or the price
of the option, relative to stock price.  So if you are wondering
what happened to the price of your options, this is the most
likely culprit.

I mentioned in a couple of articles last week and this that the
VIX does not drop from 36 to 30 in three days without some
institutional selling. And institutions don't sell lots of
options if they think the market is about to drop. It's a good
bet that the same players that were selling premium, were also
planning on buying some stock, or were writing calls on purchases
at the very least. The fact that the VIX has now dropped under 30
looks bullish to me, since the big boys don't see immediate
downside risk.

Chart of the Dow and VIX



Today's rally put at least a temporary halt to the head and
shoulders pattern that had been developing in the Dow/SPX/OEX
took a turn to the upside, rather than completing the right
shoulder, as it appeared it would after yesterday's action.
While we are not yet out of the woods on the downside, the Dow
did take out the relative high, at 8636 on Monday, in intraday
action, before falling back to close at 8623.01. The SPX hit the
relative high of 915 and was turned back right at that level,
finishing at 914. While these failures show that resistance is
still in place, particularly in the SPX, bears need to be aware
that we are still testing highs, as opposed to lows, which
"feels" bullish for the moment.  That doesn't mean I'm going full
position long, as the bearish head and shoulders is still alive
and well - as long as the Dow doesn't break 8800, or the SPX
breaks 925.  However, our new pivot point in the SPX for short
term trades looks like 915.

Chart of the SPX


The Nasdaq also has yet to break the August high of 1426, which
has served as resistance on several occasions now.   However, the
pattern beginning to emerge in the Nasdaq is a series of higher
lows with the flat top.   This is a bullish formation, and bears
may want to switch teams if we get a breakout.  While it is hard
to imagine techs continuing this rally without a change in the IT
spending environment, we are trying to capture moves for a
profit, rather than funding our 401 (k) for the long haul.

Chart of the Nasdaq


One of the big reasons for the rise in the Nasdaq is chip stocks.
The Semiconductor Sector Index (SOX) once again tested new
relative highs today.  This morning saw an upgrade from
Soundview, which said evidence is growing that the first quarter
could be a turnaround in the order picture for the semiconductor
equipment industry. It raised price targets on several stocks in
the sector, including KLAC, TER, NVLS and LRCX.  This followed
last night's earnings release from Analog Devices (ADI), which
met expectations, but warned that it could miss consensus
estimates for next quarter.  The company did say, however, that a
slow August order rate improved in September and grew
significantly in October. The SOX not only ended the day on a new
relative closing and intraday high, but closed near its high of
the day, as well. The strength in the sector, in spite of more
warnings than I can count on the entire OI staff's fingers and
toes over the last couple of months, cannot be ignored.  It has
now set a series of higher highs and higher lows and bounced from
a previous resistance level at 310, which could now be viewed as
possible support.  We still haven't seen a shift in capital
spending, and even Alan Greenspan said yesterday that there are
"very high hurdles" to capital spending that must be removed
before investments in new technologies resume.  However,
investors are betting that it will come back and are scooping the
sector to prove it.

Chart of the SOX


After the bell, Hewlett-Packard released earnings that beat
estimates by $0.02, tripling its year ago number from 0.8 to 0.24
per share, prior to the Compaq merger.  If we combined Compaq and
HP results from last year, the company would have been over $500
million in the red in the year ago period, which makes the number
even more impressive.  The stock was trading $18.50, up $1.65
(9.7%) after hours. This may help boost the Nasdaq through that
August resistance, but we won't count our chickens just yet. We
have seen sentiment change overnight many times, so we'll wait
for the actual breakthrough before declaring a rally.


There was conflicting data today from the housing sector.  The
number that got the most attention was the 11.4% drop in housing
starts in October. It was the largest drop since January 1994. In
fact, the annualized pace dropped to 1.603 million, which matches
the number of units started in 2001. This was a drop from last
month's annualized rate of 1.81, which was a 16-year high. The
decline was also worse than expected; economists were expecting a
rate of 1.72 million.   The number that got less attention, but
helped lead to a rally in the Dow Jones Home Construction Index
(DJUSHB), was the The Market Composite Index of mortgage loan
applications, which measures mortgage loan applications for
purchases and refinancings.  The index showed an increase of 21%
in the week ended November 15, and a 22% increase over the same
week a year ago. There were also increases in the Purchase Index
and Refinance Index.  This also marked the seventeenth straight
week the Refinance Index was above 4000.  The data was
accompanied by news from Hovanian Enterprises (HOV), currently on
our call list, which raised its guidance for full year 2002
earnings and said new home orders in November remain strong.


The bond market seems to be confirming the switch from bonds into
stocks.  In fact, for all the talk of a bearish head and
shoulders formation in the Dow and S&P, a look at the ten-year
bond shows a similar formation during the recent equity rally.
Today's bond sell-off seemed to just about complete the right
shoulder.  If this H&S breaks through as the Dow rallies, then
the bulls may be in business.

Chart of the Ten-Year Note


It seems that I switch sides on a daily basis, but in a
rangebound, bouncing market, that is what tends to happen.  If
you were to pick one direction and simply stick with it, you'd
see an awful lot of whipsaws.  While that may not make much
difference to long-term traders, short-termers better be willing
to change sides as quickly as needed. Today the trend is up, but
we are right at resistance in the broader markets, so we could be
due for another rollover to the bottom of the range.  If we see a
fall in the morning, then I'm jumping on for what could be only a
short drop.  However, if we break through 915 in the SPX, then
I'm jumping on long for the next 10 points.  Then it will be time
to reassess again at 925.  If the Nasdaq breaks 1426, then I'm in
until I see a rollover. Get the point? We need to be willing to
get in and out quickly in this choppiness and leave our opinions
out of the equation.


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

Allergan - AGN - close: 57.84 change: +0.89

WHAT TO WATCH: Shareholders of AGN have enjoyed a gradual uptrend
over the past week.  The stock has moved higher in an ascending
channel, which is most easily seen on a 30-minute chart.  AGN is
currently retracing its late-October selloff and might be headed
for a test of the 200-dma at $60.50.  A retest of the October
highs near $65.00 wouldn't be out of the question if the DRG.X
pharmaceutical index continues to drift upward.  Allergan's MACD,
which is just beginning to curl higher near the baseline, offers
technical encouragement for the bulls.  Long entries can be
targeted on a pullback to the bottom of the short-term channel
(currently near $56.70).  Those with a more aggressive strategy
could watch for a move above $58.00.




---

Advanced Micro Devices - AMD - close: 5.55 change: -0.03

WHAT TO WATCH: AMD was notably absent from today's semiconductor
rally.  The stock moved sharply lower on Tuesday after the
company said it planned to sell $300 million of convertible bonds
into shares of AMD.  Investors were not happy with this
development because the sale may dilute the stock.  S&P gave the
bears more ammunition when they downgraded AMD's credit rating
due to soft demand and concerns regarding the company's ability
to increase profits.  Bears will be sharpening their claws now
that the stock has failed to post a gain on a day when the SOX.X
was up more than 8%.  Aggressive traders can watch for a move
below $5.44 to clear the way for a decline to the $4.00-$4.50
area.  By the way, do you see those two volume spikes on October
3rd and November 19th?  The first spike came just before the
stock rebounded from a multi-year low.  Yesterday's volume was
almost identical (give or take 1.5 million shares).  It almost
looks like all the traders who took advantage of the October
rebound bailed out with profits.  More strong volume today (the
highest reading since January 1999!) suggests that another large
move may be in the cards.




---

Biogen Inc - BGEN - close: 43.48 change: +3.88

WHAT TO WATCH: Whoa...That was quite a breakout!  BGEN blew
through its 200-dma today after Lehman Brothers raised the
stock's rating from "equal-weight" to "over-weight."  The upgrade
was based on promising growth prospects for two of the company's
drugs.  The stock is trading at multi-month highs and looks like
it could soon test resistance in the $44.50 area.  The daily
chart shows an unusual "island" formation in May/June when the
stock gapped higher, traded near $48.00 for a few weeks, and then
gapped back down to its previous range.  Although BGEN might move
back to this area of congestion ($48-$50), the oversold
oscillators suggest that shares could be due for a pullback
before the rally continues.  Thus, traders thinking about going
long may want to wait for a bounce from the 200-dma at $40.76.
The strong volume behind today's 9.7% gain does not bode well for
the bears.




---

Deluxe Corp - DLX - close: 42.48 change: -1.22

WHAT TO WATCH: DLX traded its way onto our Watchlist last week
after the stock moved below the 200-day moving average.
Tuesday's action produced a wholesale violation of this level,
which was followed by a move below the 100-dma at $43.47.  The
stock gave back 2.7% today, despite a rally of nearly 150 points
on the Dow Jones.  Shares are now trading in the "fast-move"
region that was formed by the steep rally in July/August.  The
high volume behind today's decline, combined with the spread-
triple breakdown on the p-n-f chart, leads us to believe that DLX
will continue towards the $35.00 area.  Bearish traders can
target a decline to the August lows near $37.00, using a move
below $42.00 as an action point to go short.




---

Hartford Financial - HIG - close: 46.20 change: +0.55

WHAT TO WATCH: Readers who have been following our long play in
SPC are already aware of the recent bullish momentum in many
property & casualty insurance stocks.  We believe this is in part
due to the Bush Administration's plan to push a terrorism
insurance bill through Congress - a plan that is more likely to
succeed now that the Republicans are in control of the Senate.
HIG is another stock within the sector that looks like a possible
long play.  Shares have rebounded from the 50-dma ($44.08) and
are moving towards resistance at $50.00.  Short-term traders
could target a move to this level, looking for entries at current
levels and using a stop slightly under the 50-dma.  This would
create a risk/reward ratio of about 1:2.




---

Intuit Inc - INTU - close: 51.10 change: +0.98

WHAT TO WATCH: The recent pullback in INTU seems to have provided
a great buying opportunity.  Shares were trading at 52-week highs
near $54.00 earlier this month.  The company's earnings report
last Wednesday featured a better-than-expected EPS result and an
increase in forward guidance.  The fly in the ointment was a
lowered revenue growth estimate for one of its business segments.
Investors used this reduction as an excuse to take profits.
However, the stock found willing buyers at the 50-dma ($48.80).
This level coincides with bullish support on the p-n-f chart.
The bounce from this area, combined with reversing oscillators
and a strong GSO.X software index, suggests that INTU will make
another run at resistance at $54.40.  Bullish positions can be
considered on a move above today's high ($51.20) or a pullback to
$50.00.




---

Lear Corp - LEA - close: 34.40 change: -1.68

WHAT TO WATCH: BAC reduced its rating on four auto suppliers
(AXL, BWA, JCI, and LEA) today, based on its expectation of
weaker auto sales.  LEA moved lower by 4.6% and shares are now
threatening to fall below the multi-month low of $33.63.  A break
under this level might send the stock to the next level of
psychological support at $30.00.  The downtrending oscillators
and double-bottom p-n-f sell signal bolster the case for
technical bears.




---

NetScreen Technologies - NSCN - close: 16.03 change: +1.24

WHAT TO WATCH: Shares of this network security provider shrugged
off Monday's downgrade from Legg Mason and broke to fresh multi-
month highs during today's session.  Shares gained more than 8%
on news that Rent-A-Center (RCII) had selected NetScreen to
secure its data and online transactions.  Technically, bulls can
be encouraged by the strong volume that accompanied today's
breakout above $16.00.  The daily chart shows staggered overhead
resistance at whole-number intervals between $17 and $20.  The
$17.00 level may not prove to be much of a challenge if the
NASDAQ continues to move higher.  $18.00, however, looks like a
more formidable obstacle.  This level would be a reasonable
profit-target for the bulls.  P-n-f chartists will be interested
to know that a trade at $16.50 will create a double-top buy
signal.




---

Texas Instruments - TXN - close: 18.42 change: +1.24

WHAT TO WATCH: It's safe to say that TXN has broken out of its
multi-month descending channel.  The first indication that the
bulls were on the offensive appeared on Friday, when shares
closed above the 50-dma.  The stock has continued higher
following Tuesday's reiteration of fourth-quarter financial
targets from the company's COO.  Of course it didn't hurt that
the semiconductor index exploded for an 8.2% gain today.  This
rally propelled the SOX.X to levels not seen since August.  The
next obstacle for the bulls will be resistance at 360.  A break
above this level could send the index soaring towards 400.  We
think TXN is well-positioned to join the sector in a continued
rally.  Today's move above resistance at $18.00 has raised the
possibility that shares may retest the September highs near
$22.00.  Although aggressive traders can think about going long
at current levels, the stock is already sitting on some large
short-term gains.  We'd feel more comfortable waiting for a
pullback to the $17.50-$18.00 area before going long.





=========================
Play-of-the-Day (BULLISH tech play)
=========================

Kronos Inc. - KRON - close: 41.49 change: +2.24 stop: 38.24 *new*

Company Description:
Kronos Incorporated is a single-source provider of integrated
human resources, payroll and labor management solutions. Kronos
products and services help organizations align their people,
processes and technology to improve individual productivity and
boost overall business performance. (source: company press
release)

- ORIGINAL WRITE UP: November 14th, 2002 -

Why We Like It:
Tech bulls have had a lot to cheer about over the past month.
Well, maybe we should qualify that statement. The latest round of
earnings was hardly impressive, and the fundamental weakness
brought on by a lack of IT spending hasn't shown any signs of
improving. But this hasn't prevented the NASDAQ from rising more
than 25% from its October lows. Buyers have been ignoring bad
news (such as last night's AMAT earnings) in hopes that the steep
uptrend will continue. And so far, it has. The NASDAQ retraced
roughly 38% of its October/November rally and now appears to be
headed for a test of resistance at 1425. A move above this level
would set the stage for a rally to the 200-dma at 1514. With
sector leader MSFT looking strong, the GSO.X software index has
rebounded from support at 100 and is moving towards an encounter
with its own resistance at 110. Stocks like KRON have helped to
push the sector higher.

Unlike many of its competitors, Kronos actually boasts solid
growth. The fourth-quarter earnings report in late-October
featured an EPS of 57 cents, which was 11 cents better than
analyst expectations. The upside surprise helped to launch KRON
from the $30.00 area. Shares finally rolled over from resistance
at $40.00 and pulled back to the 200-dma at $36.03. This pullback
alleviated some of the overbought conditions on the oscillators
and gave the bulls a chance to catch their breath. Shares
rebounded and traded above $40.00 on Thursday en route to a new
multi-month high. The rising daily stochastics (5,3,3) and
uptrending GSO.X are indications that KRON will experience
another breakout in the near future. By entering this play on a
move above today's high ($40.50), we're attempting to capture a
rally to the $45.00 area. Those who are a little more ambitious
could aim for a retest of the May highs at $46.40. Possible
resistance looms at the $41.25-$41.50 area. The double-top buy
signal created by a trade at $41.00 should help to push KRON
above that obstacle. If our play is triggered we'll use a stop at
$37.98, just under Wednesday's low. More aggressive traders may
want to use a stop under the 200-dma.

- Most recent update: November 19th, 2002 -

Still waiting for a breakout. KRON has done a decent job of
holding near its multi-month highs over the past two days, but
shares just can't seem to move back above resistance at $40.00.
The stock showed good relative strength on Tuesday and
outperformed the GSO.X software index, which finished with a loss
of more than 1.0%. That's an indication to us that the stock
should still be able to move to new relative highs, despite the
recent trend of lower lows and lower highs. We're maintaining our
entry trigger at $40.51, with a stop at $37.98. There have been
no fresh news developments for Kronos.

- Play-of-the-Day Comments: November 20th, 2002 -

Bulls ran amok in the tech sector on Wednesday and pushed the
GSO.X software index to a 4.3% gain.  This sector strength
provided the perfect climate for a breakout in KRON.  Shares
reached our entry point of $40.51 within the first hour of
trading and finished the session 5.7% to the good.  The stock
moved off its intraday high of $41.80 but consistently found
buyers near $41.00.  Today's gains have opened the door for a
rally to the $45-$46 area.  KRON is showing good relative
strength in a sector that's been trading very strong - the GSO.X
closed above 110 today for the first time since July.  The bulls
will still have to deal with congestion near 111, but this
probably won't pose much of a problem if the NASDAQ keeps moving
higher.  New bullish positions can be targeted on a pullback to
$40.00-$40.50 or a break above today's high ($41.80).  We've
bumped our stop up to $38.24, slightly beneath yesterday's low.

Picked on November 20th at  $40.51
Results since picked:        +0.98
Earnings Date             10/29/02 (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
been obtained from sources deemed reliable but is not
guaranteed as to accuracy or completeness. PremierInvestor.net
staff makes every effort to provide timely information to its
subscribers but cannot guarantee specific delivery times due to
factors beyond our control.

Please read our disclaimer at:
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Copyright ) 2002  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.
PremierInvestor.net Newsletter               Wednesday 11-20-2002
                                                   section 2 of 2
Copyright ) 2002, All rights reserved.
Redistribution in any form is strictly prohibited.

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

In section two:

Net Bulls
  Triggered Plays:       KRON (bullish)
  Closed Bearish Plays:  IBM

High Risk/Reward
  Triggered Plays:       NTES (bearish)

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


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

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

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

Kronos Inc. - KRON - close: 41.49 change: +2.24 stop: 38.24 *new*

Bulls ran amok in the tech sector on Wednesday and pushed the
GSO.X software index to a 4.3% gain.  This sector strength
provided the perfect climate for a breakout in KRON.  Shares
reached our entry point of $40.51 within the first hour of
trading and finished the session 5.7% to the good.  The stock
moved off its intraday high of $41.80 but consistently found
buyers near $41.00.  Today's gains have opened the door for a
rally to the $45-$46 area.  The fact that the GSO.X closed above
110 might scare more software shorts into covering.  New entries
can be targeted on a move above $41.80 or on a pullback to
$40.00-$40.50.  Our stop has been moved up to $38.24, slightly
under yesterday's low.





===============
NB Closed Plays
===============

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

Intl Business Mach. - IBM - cls: 81.61 chg: +3.24 stop: 81.06

What a difference a day makes.  IBM was not looking strong on
Tuesday after shares rolled over from the 200-dma and closed near
a multi-session low.  Our lowered stop at $81.06 was designed to
take us out of this play if shares managed to reverse course and
move back above resistance.  That's exactly what happened today
when IBM joined the NASDAQ in strong rally.  Wall Street also
seemed to react positively to the company's announcement that it
plans to shift $1 billion of its R&D budget from IT projects to
research in consulting and computer services.  This may be seen
as a smart move, given the challenges that face the Information
Technology sector.  IBM also said today that it plans to sell $2
billion of global bonds.  Whether today's rebound was news-
related or simply a function of the rallying broader market, the
move above resistance at the 200-dma is not a good sign for the
bears.  While the stock doesn't look overly bullish (shares were
quickly smacked down when shares popped above the 200-dma on
November 4th), the overall technical picture can no longer be
described as negative.  Our play has been closed for a loss of
$2.11, or 2.6%.

Picked on November 7th at $78.95
Results since picked:      -2.11
Earnings Date           10/16/02 (confirmed)






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

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

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

Netease.com - NTES - close: 9.17 change: -0.97 stop: 9.06 *new*

Yesterday's rollover from $10.00 must've really spooked the
bulls!  NTES was weak from the get-go this morning.  This play
was activated at the opening price of $8.79 after the stock
gapped below our action point at $8.99.  Shares trended lower
throughout the session and dropped below $8.00 before buyers
emerged during the last minutes of trading.  With this play
getting off to a very good start, we're going to immediately
lower our stop-loss to $9.06.  This should keep potential losses
to a manageable level if the stock rebounds.  Frankly, we'd be
surprised to see this happen.  NTES has plenty of downside
remaining and there are no clear levels of support until the
$6.00 area.  We're setting an official profit-target at $6.32,
two cents above the November 6th high.  Shorter-term traders may
want to consider taking profits if NTES bounces from the $7.00
area.  New entries can be targeted on a rollover from intraday
resistance at $8.60.





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

YBTVA   Young Broadcasting         13.08     +1.13
DJ      Dow Jones & Co             40.75     +1.45
HIG     Hartford Financial         46.20     +0.55
OIS     Oil States Intl            13.05     +0.57
NST     Nstar                      40.05     +0.54
KG      King Pharmaceuticals       17.41     +0.71
BCP     Balchem Corp               22.80     +0.65

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

MSTR    Microstrategy Inc          17.33     +1.97
TER     Teradyne Inc               14.91     +2.26
BRCM    Broadcom Corp              17.65     +1.99
MVSN    Macrovision Corp           17.79     +1.11
SWKS    Skyworks Solutions         10.34     +1.11
GCO     Genesco Inc                17.80     +1.30
SKS     Saks Holdings Inc          12.30     +1.39
ROIAK   Radio One                  15.28     +1.15
NSCN    Netscreen Tech.            16.03     +1.24

---------------------------------------
Breakout to Upside (Stocks over $20)
---------------------------------------
Ticker  Company Name               Close     Change
JWN     Nordstrom Inc              20.22     +1.09
SNDK    Sandisk Corp               24.83     +3.01
WFMI    Whole Foods                50.55     +3.04
MYG     Maytag Corp                27.40     +2.61
WGR     Western Gas Resources      35.40     +1.40

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

PD      Phelps Dodge               26.72     -2.18
TECD    Tech Data Corp             32.61     -1.99
EMN     Eastman Chemical           35.96     -2.99
LEA     Lear Corp                  34.40     -1.68

-----------------------------------------
Recently Overbought With Bearish Signals (Stocks over $20)
-------------------------------------------
Ticker  Company Name               Close     Change
BNL     Bunzl ADS                  35.80     -1.15




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