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Daily Newsletter, Friday, 11/29/2002

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PremierInvestor.net Newsletter          Weekend Edition 11-29-2002
                                                    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:      Eight Weeks and Counting
Play-of-the-Day:  What We See
Watch List:       BHI, CI, CMCSK, JDEC, NVDA, and lots more...
Market Sentiment: Knocking On the Door

******************************************************************
MARKET WRAP  (view in courier font for table alignment)
******************************************************************
       WE 11-29        WE 11-22        WE 11-15        WE 11-08
DOW     8896.09 + 91.25 8804.84 +226.75 8579.09 + 41.96 + 19.49
Nasdaq  1478.74 + 10.05 1468.74 + 57.60 1411.14 + 51.86 -  1.41
S&P-100  478.85 +  3.82  475.03 + 11.31  463.72 +  6.33 -  0.77
S&P-500  936.31 +  5.76  930.55 + 20.72  909.83 + 15.09 -  6.22
W5000   8846.68 + 63.55 8783.13 +199.08 8584.05 +145.25 - 63.40
RUT      406.36 +  6.36  400.00 + 14.08  385.92 +  6.93 -  4.46
TRAN    2360.62 + 46.64 2313.98 - 19.12 2333.20 - 13.68 + 31.20
VIX       31.08 +  4.35   26.73 -  4.10   30.83 -  2.73 -  0.42
VXN       49.48 +  2.00   46.49 -  3.19   49.68 -  2.33 +  2.15
TRIN       1.04            1.05            0.67            1.80
Put/Call   0.62            0.70            0.57            1.05
******************************************************************

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

Eight Weeks and Counting
by Jim Brown

For the first time since March 1998 the Dow has stretched it's
winning streak to eight weeks. It did so with a +91 point gain
for the week which was 1/3 of the Wednesday total. That gain
was the largest Thanksgiving Wednesday gain ever. The challenge
we will continue to face now is the nearly +1600 point Dow rise
since the October lows that culminated on last Wednesday.

Dow Chart - Daily

Nasdaq Chart - Daily


The markets tried to rally on Friday after the Semiconductor
Industry Association said chip sales rose in October by +1.8%.
Flash memory was up +6.9%, PC chips +6.5% and DSP chips +4.4%.
This unexpected growth is pointing to a better than expected
2003 and some stealth growth possibilities for December. The
Nasdaq Compx ran up to within three points of 1500 on the news
but sold off to 1479 on profit taking in the shortened session.

There were no economic reports on Friday and the negative sentiment
came from UAL. Talks with labor unions regarding required cuts
in labor costs had failed and it now appears more likely UAL
will have to file bankruptcy because it cannot get a government
guaranteed loan. The impact of a UAL bankruptcy would be the
bankruptcy of several other airlines to avoid giving UAL an
unfair advantage of a reduced cost structure. A bankruptcy would
give an airline the opportunity to drop unprofitable routes,
cancel rental contracts on unused gates, restructure debt and
break unfavorable union contracts. Other airlines cannot afford
to allow a major carrier like UAL to gain these advantages. This
sets up a series of domino events if UAL files.

After the bell Massachusetts announced it was going to appeal
the federal judge's decision to accept the MSFT settlement. They
were one of several states that had until Monday to file an appeal.
Iowa issued a statement late Friday saying it had declined to
appeal and West Virginia was the only state left which had not
made an announcement. That announcement would be made on Monday.
MSFT has traded flat for the last three weeks as the clock
wound down on the appeal process. If Massachusetts is the only
state to decline the settlement then MSFT should rally as fighting
one state would have far less impact than a consortium of nine.

In addition to the weight of an eight week winning streak the
markets will have to fight a solid economic calendar and the
beginning of earnings warning season next week. Economically
the week begins with the ISM Index and Construction Spending
on Monday, Productivity, Factory Orders and ISM Non-manufacturing
on Wednesday. The big report comes on Friday with Non-farm
payrolls. The triple threat of two ISM reports and the Non-farm
payrolls could keep a lid on future gains.

The trading on Friday was lackluster at best with the NYSE
posting the lowest volume day for the year at 638 million shares.
Nasdaq volume was less than 850 million shares. Ironically the
VIX gained +4.35 for the week and closed well over the 26.73
level from the prior Friday. With the market up for the week
and pressing upper resistance it is very clear that investors
are scared this rally is about to fail. It is very rare that
the VIX moves up this strongly on positive market gains. This
increase in bearishness is actually good for the markets despite
the possibility of profit taking next week. It simply means that
the current irrational bullishness may have run its course and
we are moving back into a more fundamental basis.

The Nasdaq NDX fell back below its 200 DMA at 1121 despite the
positive semiconductor news. This could be a clear indication
that the tech stocks are running out of steam at this level and
the +40% gains from the October low are about to shrink. Warnings
from tech companies next week could accelerate this demise. The
Compx has the same 200 DMA resistance at 1495. The Dow has plenty
of room before hitting it's 200 DMA at 9183 but has plenty of
resistance in the 9000-9050 range to keep it busy.

Trading will be complicated by several high profile analysts
meetings. Cisco will host a meeting on Tue/Wed to update
analysts. HPQ will do the same thing on Tue/Wed with AOL also
presenting on Tuesday and INTC on Thursday. Any of these meetings
can cause serious market volatility with any unexpected positive
or negative guidance.

The outlook for next week is bullish on a sentiment basis and
bearish on a technical basis. Without additional positive news
from the economic reports or positive guidance from stocks, any
attempt to move higher through current resistance will be difficult.
Sentiment can only provide so much lift without some confirming
fundamentals. With warnings likely to start next week this sets
up some rocky days ahead. I fully believe there will be some
dips but I also believe those dips will be bought by bargain
hunters looking to stuff their mattress for the years ahead
as well as stockings for the holiday season.

Enter Very Passively, Exit Very Aggressively!

Jim Brown

"There is only one side to the market and it is not the bull
side or the bear side, but the right side".  - Jesse Livermore


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

Corning Inc - GLW - close: 4.43 change: +0.32 stop: *text*

Company Description:
Established in 1851, Corning Incorporated creates leading-edge
technologies that offer growth opportunities in markets that fuel
the world's economy. Corning manufactures optical fiber, cable
and photonic products for the telecommunications industry; and
high-performance displays and components for television,
information technology and other communications-related
industries. The company also uses advanced materials to
manufacture products for scientific, semiconductor and
environmental markets. (source: company press release)

Why We Like It:
As traders, we're constantly reminding ourselves to "trade what
we see, not what we think."   Wall Street does a great job of
defying the expectations of the masses.  For instance, networking
and telecom equipment stocks such as CIEN, JNPR, and GLW were all
cratering to multi-year lows in early October.  This made perfect
sense from a fundamental standpoint.  In Corning's case, they
reported a sixth consecutive quarter of losses last month.
Citing a continued telecom slump, the company also forecast
weaker-than-expected future earnings and announced a
restructuring plan involving 2,200 job cuts.  Basically the
outlook for demand within the sector is Ugly, with a capital "U."
Corning underscored this weakness on November 12th, when they
said they did not expect to see a seasonal upturn in business.
GLW bottomed out at $1.12 on October 8th.  Fast-forward 8 weeks,
and shares have quadrupled in value.

What gives?!  As far as we can tell, there hasn't been any been
news that points towards an improvement in demand.  The recent
price explosion in GLW (and other networkers) simply seems to be
a result of Wall Street's newfound appetite for former tech high-
flyers that are trading at fractions of their all-time highs.
Given the fact that we are entering a historically bullish period
for the equity market and the major indices are poised to break
above resistance, we think chances are good that the buying
momentum will continue.  Technically, we like how GLW has bounced
back above the 200-dma ($4.17) after consolidating near $4.00.
The reversing daily stochastics (5,3,3) indicate that a
sufficient amount of steam was blown off by the pullback.  The
stock showed good relative strength versus the directionless
NASDAQ on Friday and is approaching the multi-month high of
$4.65.  Our trigger to enter this long play will be at $4.66.
Should a breakout take place, we believe GLW could rally up to
the $6.00 area.  However, if the current trend remains intact we
wouldn't rule out a move to $7.00, which looks like more
formidable resistance on the daily chart.  If this play is
triggered our stop will be set at $3.94.  Slightly more
conservative traders could use a stop just under today's low of
$4.15.

Picked on December xth at $xx.xx
Results since picked:      +0.00
Earnings Date            10/30/02 (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
---------------------------------

Baker Hughes - BHI - close: 32.74 change: +0.95

WHAT TO WATCH: The OSX.X oil services index showed good relative
strength on Friday and tacked on nearly 2%.  The sector seems to
be responding to a rise in crude oil futures (cl03f), which have
bounced sharply from the $24/barrel level.  A move above
resistance at $27.00 could send the commodity towards the
September highs near $30.00.  BHI is already looking strong,
having just broken above the 200-dma at $32.22.  Shares have also
moved above bearish resistance on the p-n-f chart.  Bulls will be
looking for BHI to retrace the remainder of its June/July sell-
off and rally to the $36.00 area.  Entries can be evaluated on a
move above $32.85 or an intraday pullback to the 200-dma.




---

Cigna Corp. - CI - close: 43.53 change: +0.99

WHAT TO WATCH: Shares of this insurance provider were hammered on
October 25th after the company announced a third-quarter earnings
warning and reduced its full-year guidance for 2003 from
$8.84/share to $6.50/share.  A week later Cigna disclosed that it
was under investigation by the SEC.  The fact that shares
actually traded higher on that news was a good indication that
all the bad news may have been priced in by the late-October
selloff.  CI has started to fill in its large gap, despite a debt
rating reduction from Moody's.  In hindsight, the optimal buying
opportunity for technical bulls would've been back at $40.00 when
CI gave a triple-top p-n-f buy signal.  The way shares
subsequently pulled back and tested that level (which now appears
to be support) is very encouraging for shareholders.  Looking at
the daily chart alone, we'd be tempted to add CI as a play at
current levels.  However, the stock is looking a little
overextended on smaller intervals such as the 15-minute chart.
We'd instead be watching for a pullback to the $42.00-$42.50 area
to yield an entry point.




---

Comcast Corp. - CMCSK - close: 22.80 change: -0.92

WHAT TO WATCH: CMCSK has traded in a sideways fashion over the
past two weeks.  Meanwhile, the broader market has been ticking
steadily higher.  The stock did manage to move above $25.00 last
week, but then promptly rolled over from the 200-dma.
Shareholders should also be pretty concerned about the relative
weakness displayed on Friday, when shares declined by almost 4%.
CMCSK looks like a good short if it breaks under the 50-dma at
$22.45.  With no immediate levels of support, the stock could
quickly fall to the $20.00 region.  By the way, the point-and-
figure chart is showing a "bull trap" alert.  A triple-top buy
signal was formed during the aforementioned spike above $25.00,
but now CMCSK has reversed into a column of "O's."  That's not
good news for the bulls.




---

J.D. Edwards - JDEC - close: 14.14 change: +0.63

WHAT TO WATCH: JDEC is trading strong ahead of its Tuesday
afternoon earnings report.  Shares showed good relative strength
on Friday and reached levels not seen since April.  The stock
still faces resistance at $14.50, but the bears would have a
difficult time defending this level if Wall Street reacts
positively to Tuesday's announcement.  A breakout might pave the
way for a retest of the March highs near $18.50.  The p-n-f chart
is showing a double-top buy signal.




---

OM Group - OMG - close: 7.06 change: +1.11

WHAT TO WATCH: In online chatroom parlance, "OMG" is short for
"Oh my god!"  That's probably what shareholders of this chemical
manufacturing company were uttering on October 29th after OM
Group missed earnings and announced a major restructuring.  The
stock immediately lost two-thirds of its value and didn't stop
falling until buyers finally moved in at $4.00 level.  Shares
began to rebound this week as bargain hunters moved in.  The
stock has no resistance levels directly overhead, so it wouldn't
be surprising to see the current really take OMG all the way to
$10.00.  Of course the fly in the ointment is the risk of further
negative news tanking the company's stock all over again.  It
looks like all the bad news is already out, but this would
nonetheless be considered a high-risk/high-reward play.  Watch
for entries on a pullback to $6.50.




---

Navistar - NAV - close: 30.86 change: +0.92

WHAT TO WATCH: Aggressive traders looking for a speculative
"call-the-top" sort of play might be interested in NAV.  The
stock has risen sharply from its November lows near $22 and looks
more than a little extended - just check out those pinned-at-
overbought daily stochastics.  Shares traded strong on Friday but
weren't able to move above the 200-dma at $31.26.  A rollover
from this level could send shares back towards the $26-$28 area.
The company's earnings report and conference call on Tuesday
morning (during the market) is a potential landmine for the
bulls.  Negative news from NAV might precipitate a rapid
retracement of some of the recent gains.




---

NVDA Corp. - NVDA - close: 17.15 change: +0.07

WHAT TO WATCH: NVDA showed up on Wednesday's Watchlist and we
feel it's worth another mention.  The bulls seem intent on
pushing the semiconductor index up to resistance at 400-410.
Positive news from Taiwan Semiconductor (TSM) and bullish
comments from NVIDIA's CEO have helped to propel the stock to
multi-month highs.  If the sector continues to trade strong,
it'll just be a matter of time before NVDA reaches the $20.00
level.  Shares have already posted some large gains in recent
weeks, so the optimal entry point would probably be on a pullback
to near-term support at $15.50-$16.00.  Very aggressive traders
could look for entries on a move above today's high of $17.78.




---

RF Micro Devices - RFMD - close: 12.19 change: -0.10

WHAT TO WATCH: RFMD is one of those beaten-down telecom chip
stocks that's gone vertical over the past few weeks.  Bulls have
gotta be pleased with how the stock sliced through its 200-dma
($11.55) like a Ginsu knife.  Shares are currently filling in the
June 7th gap, which was formed after the company issued an
earnings warning.  Traders with a high risk tolerance could think
about going long on a pullback to the 200-dma or a break above
$12.87, initially targeting a move to the top of the gap near
$15.00.  A glance at the p-n-f chart shows that RFMD has broken
above bearish resistance.




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

INTU - The recent rebound from the 50-dma ($49.66) and bullish p-
n-f support might portend a breakout to new 52-week highs.
Aggressive entries can be targeted on a move above $55.05.  A
trade at $56.00 would create a triple-top buy signal.

GILD - This biotech is in the midst of a multi-month uptrend and
has consistently bounced from bullish support on the p-n-f chart.
The stock looks like a good long play on a move above the all-
time high at $40.00.

BUD - Shares of BUD have been hung-over ever since they topped at
$55.00 in October.  Long-term traders can think about shorting
the stock on a move below $47.95.  This would take shares below
the relative low and bullish p-n-f support at $48.00.  BUD is a
relatively slow mover, but at the current rate of descent it
looks like shares could retest the $44.00 level within the next
4-6 weeks.

HIG - HIG traded strong on Friday and looks to be headed for a
test of resistance at $50.00.  A move above that level would
create a triple-top buy signal and clear the way for a possible
rally to the August highs near $54.00.

KLAC - Here's one to keep an eye on if the SOX.X rolls over next
week.  Shares have been trending higher but may be in the early
stages of a rollover from the 200-dma at $46.38.  Short entries
could be gauged at current levels, using a stop just above that
moving average.  We'd be targeting a pullback to the $40.00 area.

AOL - AOL has quietly tacked on more than 50% since it bottomed
out at $10.26 on October 9th.  Shares are beginning to move
higher after consolidating near $15.00 and briefly moved above
the 200-dma on Friday.  Aggressive entries could be considered on
a move above $16.61.  Resistance at $17.00-$17.25 is the main
obstacle that stands in the way of a rally to the $20.00 level.


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

Knocking on the Door

By Steven Price

Not much to report on a day when most traders stayed home and
most investors either went shopping or found themselves in a food
coma following Thanksgiving.  We are approaching some significant
resistance levels in the broader indices and even in today’s
abbreviated session, we got some tests to decipher.

After seeing gains of over 1700 points in the Dow, 370 points in
the Nasdaq Composite and 300 points in the NDX, over the last six
weeks, we are staring right at the 200-dmas in all three
averages.  It will take a renewed round of buying to blast
through those averages, and today simply did not attract enough
activity to get over the hump.  That doesn’t mean we should be
taking a bearish market view.  In fact, we have tested these
averages for the last few days in the tech indices and the
pullbacks have fallen to successively higher levels.  It
certainly looks like the formation of another bullish triangle
formation in the COMP and NDX, with a rising bottom and a flat
top.  The last time we saw this formation, we broke out in a
powerful up move just a week ago.  The August highs had formed
the ceiling on the COMP, with the NDX finding a ceiling just
above that level.  The NDX was the first to break the August
high, but it took a breakout in the COMP to confirm and get them
both moving; the Dow and SPX followed. With the 200-dma now
forming resistance in both of the techs, we have a pretty good
idea what the breakout point will be.  Both indices actually
spent some time above the 200-dmas today, but were turned back by
an end of day sell-off.  The COMP made it over for the first time
since March, while the NDX has closed above that level on 2 of
the last 4 trading sessions.   The NDX has been the first average
to give us a directional signal recently and the fact that it
seems to be building strength at this level looks good for the
upside.

A close of both averages above the 200-dma could be the catalyst
for the next wave of buying.  That breakout would coincide with a
similar breakout in the COMP bullish percent.  Right now the COMP
is directly on top of the bearish resistance line that has
contained the last few rallies.  The current rally has already
led to a higher high in the current column of “X,” following
lower highs on the last two rebound attempts. A breakthrough of
bearish resistance, when combined with a 200-dma breakout, will
look very bullish, especially considering the signs of a
turnaround we are starting to see in recent economic reports.

The durable goods report that was released earlier this week
showed a 65% increase in demand for communications equipment.
Taiwan Semiconductor, the world’s largest chip foundry, recently
said it saw an increase in PC demand for the fourth quarter.
Today, the Semiconductor Industry Association reported that
worldwide chip sales rose 1.8% sequentially in October,
indicating demand is recovering.  The economy is not going to
turn around 180 degrees in a few days.  We will most likely begin
to see positive reports mixed in with the negative during the
turnaround period. That seems to be what we are now seeing.

If the techs get rolling, the broader indices should follow, if
history is any indication.  The Dow also has the 200-dma sitting
just above it at 9183 and its August high at 9077.  We may
continue to see a struggle with these averages so close to the
200-dmas.  This level no doubt brings in some shorts looking to
pick a top. However, we continue to test the top of the range and
each attempt is bringing us a little higher.  The Dow, COMP and
NDX all set new relative intraday highs again today and the sell-
off at the end of the day looks like end of the month profit
taking.  While I have been bearish about the spending environment
during much of the recent rally, I am starting to see signs of
life.  While the rally seems overdone, the previous sell-off
during the fall seemed overdone, as well. Right now we are seeing
most dips bring in more buyers, and this is a healthy sign for a
continuing rally.

As I write from a window that looks out on Chicago’s Michigan
Avenue, I must admit that there is one seed of doubt that
continues to cloud my vision of a rally.  We are heading into the
busiest shopping season of the year.  While we are seeing some
signs of an economic turnaround, we are certainly not there yet.
There will be fewer Christmas bonuses this year and this week’s
jobs report showed an increase in continuing claims, indicating
it is taking longer for people to find jobs once they are
unemployed.  If retail numbers come in below already lowered
expectations, we could see a more pronounced market pullback.
After years of fighting crowds immediately after Thanksgiving, I
didn’t have much trouble negotiating the walk from my hotel, down
Michigan Avenue.  This is the street that contains the majority
of the high-end shops and malls in the downtown area.  While
there is certainly an increase from a normal shopping day, it is
certainly not what I had grown accustomed to.   Bebe warned today
that same store sales were below expectations this month,
following similar warnings from Wal-Mart and Federated. A poor
shopping season could certainly slow down the rally, but still
the tide seems to be turning in the right direction.

We may not be beyond the possibility of another pullback, but I
expect the pullbacks to continue to find higher levels of
support. Look for a breakout above the 200-dmas in the tech
indices as another long signal.  The Dow is also finding
resistance at the 38.2% retracement level from The January 2000
high, to last month’s low. That level lies at 8936 and not only
adds to the current resistance, but also the significance of a
breakout. While there will be short opportunities, I expect most
dips to find buyers, so be quick to take profits on the downside,
at least until the tide changes direction.

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

Market Averages

DJIA ($INDU)

52-week High: 10673
52-week Low :  7197
Current     :  8896

Moving Averages:
(Simple)

 10-dma: 8716
 50-dma: 8245
200-dma: 9183

S&P 500 ($SPX)

52-week High: 1176
52-week Low :  768
Current     :  936

Moving Averages:
(Simple)

 10-dma:  920
 50-dma:  873
200-dma:  983

Nasdaq-100 ($NDX)

52-week High: 1734
52-week Low :  795
Current     : 1116

Moving Averages:
(Simple)

 10-dma: 1089
 50-dma:  963
200-dma: 1121

-----------------------------------------------------------------
The Semiconductor Index (SOX.X): The SOX pulled back 2% today,
but after a gain of almost 80% since the middle of October, this
does not seem like more than a slight correction.  The last four
pullbacks have come at successively higher levels and continue to
look bullish.  Traders should not expect the torrid pace of the
recent rally to continue, but that doesn’t mean we aren’t headed
higher.  Remember, however, that the more furious the rally, the
bigger a pullback can be without changing the trend.  If we
continue to see buyers each time we get a dip, then there is no
reason to close long positions until we test 400.  If, however,
we get even a single lower low, traders may want to take profits
and sit on the sidelines until the consolidation ends.

52-week High: 657
52-week Low : 214
Current : 373

Moving Averages:
(Simple)

10-dma: 350
50-dma: 285
200-dma: 408

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

The VIX held up over 30, as the Dow pulled back under 8900 and
the Nasdaq and NDX failed their 200-dmas.  After the big run of
the last few weeks, traders were reminded that there is still a
downside, and kept the puts pumped up.  Readers should note the
VIX increase the last couple of days, and be cautious with long
plays. Someone is buying puts, indicating some downside fear
still exists. While a market pullback may not be as severe as
those in the past, the possibility still exists and is being
reflected in the volatility measurement.

CBOE Market Volatility Index (VIX) = 31.08 +0.24
Nasdaq-100 Volatility Index  (VXN) = 49.48 +2.06

-----------------------------------------------------------------
          Put/Call Ratio  Call Volume   Put Volume

Total          0.62        249,801       154,025
Equity Only    0.47        195,139        92,248
OEX            1.01          7,618         7,747
QQQ            1.04         15,367        16,074

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

Bullish Percent Data

           Current   Change   Status
NYSE          49      + 2     Bull Confirmed
NASDAQ-100    81      + 3     Bull Confirmed
Dow Indust.   73      + 3     Bull Confirmed
S&P 500       67      + 2     Bull Confirmed
S&P 100       73      + 2     Bull Confirmed

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   1.17
10-Day Arms Index  1.00
21-Day Arms Index  1.13
55-Day Arms Index  1.18


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       1238          1499
NASDAQ     1982          1529

        New Highs      New Lows
NYSE         42              26
NASDAQ       96              28

        Volume (in millions)
NYSE       827
NASDAQ     821


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

Commitments Of Traders Report: 11/19/02

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 9,000 long contracts, while adding only 3,700
shorts.  Small traders added 2,000 longs to their positions,
while adding 7,000 short contracts.

Commercials   Long      Short      Net     % Of OI
11/05/02      438,546   472,384   (33,838)   (3.7%)
11/12/02      437,683   476,540   (38,857)   (4.3%)
11/19/02      446,668   480,270   (33,602)   (3.6%)
11/26/02

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
11/05/02      138,604    76,032    65,572     30.5%
11/12/02      141,389    70,624    70,765     33.4%
11/19/02      143,070    77,332    65,738     29.8%
11/26/02

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 reduced both long and short positions by
approximately 3,000 contracts.  Small traders added 4,000 to the
long side and 2,000 to the short side.


Commercials   Long      Short      Net     % of OI
11/05/02       49,128     56,121    (6,993) ( 6.6%)
11/12/02       45,647     55,892   (10,245) (10.1%)
11/19/02       42,074     52,302   (10,228) (10.7%)
11/26/02

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
11/05/02       13,355    12,903       452     1.7%
11/12/02       12,698     8,801     3,897    18.1%
11/19/02       16,292    10,540     5,752    21.4%
11/26/02

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

Commercials added 1,000 contracts to both the long and short
side, while small traders reduced the long side by 1,300
contracts and shorts by only 300.

Commercials   Long      Short      Net     % of OI
11/05/02       22,533    15,687    6,846      17.9%
11/12/02       22,283    14,953    7,330      19.6%
11/19/02       23,535    15,741    7,794      19.8%
11/26/02

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
11/05/02        5,089     8,735    (3,646)   (26.4%)
11/12/02        5,736     8,513    (2,777)   (19.5%)
11/19/02        4,428     8,203    (3,775)   (29.9%)
11/26/02

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

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




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

Please read our disclaimer at:
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Do not duplicate or redistribute in any form.
PremierInvestor.net Newsletter          Weekend Edition 11-29-2002
                                                    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
  Bullish Play Updates:  SPC, TSCO
  Bearish Play Updates:  PG

High Risk/Reward
  New Bullish Plays:     GLW
  Bullish Play Updates:  AHC, ICOS
  Bearish Play Updates:  CW


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

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

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

St. Paul Co. - SPC - close: 37.24 change: +1.20 stop: 35.11 *new*

No turkey coma for this stock!  SPC traded strong on Friday and
traded without regard to the overall lack of direction that
characterized the abbreviated session.  Shares outperformed the
IUX.X insurance index and plowed ahead to a new multi-month high.
This breakout, combined with the recent pattern of relative
strength, bodes well for a test of the 200-dma at $38.10.  Other
than that moving average, we don't see any major resistance until
the $40-$41 area.  So now it's decision time.  Do you
aggressively target a move to $40.00, or do you aim to take
profits at the 200-dma?  We're going to take the conservative
approach and exit this play if SPC reaches the moving average.
Our official profit-target is set at $37.97, slightly under the
200-dma.  This would be an 8.1% gain from our entry point.  Also
note that we're now using a breakeven stop at $35.11.  Given
SPC's proximity to our exit price, we would not recommend taking
any new positions at this time.

Picked on November 18th at $35.11
Results since picked:       +2.13
Earnings Date            10/23/02 (confirmed)




---

Tractor Supply Co. - TSCO - cls: 44.47 chg: -0.72 stop: *text*

Well, it doesn't get any closer than that.  TSCO moved higher
with the RLX.X retail index on Friday morning and came within
just one cent of our entry trigger at $45.51.  However, that was
the best the bulls could muster.  Shares quickly pulled back and
drifted near break-even for most of the session before closing
with a 1.5% loss.  Not a strong finish, but you can't read too
much into a light-volume, shortened trading day.  On a technical
basis we like how TSCO has held near its all-time highs.  We're
still anticipating another upward leg if shares can break out, so
for the time being this play will remain open with a trigger at
$45.51.  A larger pullback on Monday might convince us to give
TSCO the heave-ho.

Picked on November xxth at $xx.xx <-- see text
Results since picked:       +0.00
Earnings Date            10/14/02 (confirmed)




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

Procter & Gamble - PG - close: 84.53 change: -0.50 stop: 86.06

This short play was triggered on Wednesday morning when PG gapped
below our entry trigger.  Shares set a relative low of $83.60 and
looked vulnerable to more selling pressure.  But as could be
expected, no large sell-offs materialized during today's
shortened session.  PG traded an Inside Day and drifted slightly
lower with the Dow on the lightest volume of the year.  Things
should begin to pick up again on Monday and with earnings warning
season beginning next week, any high-profile downward guidance
announcements could help to send the major indices lower.  The
Dow faces overhead resistance at 9000 and the 200-dma at 9183.
Factor in the lack of a follow-through rally today, and we think
the Dow could retrace a large chunk of Wednesday's gains and move
towards 8800.  We'd expect PG to lead the index lower if this
turns out to be the case.  New entries can be targeted on a move
under Wednesday's low of $83.60.

Picked on November 27th at $84.00
Results since picked:       -0.53
Earnings Date            10/29/02 (confirmed)






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

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

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

Corning Inc - GLW - close: 4.43 change: +0.32 stop: *text*

Company Description:
Established in 1851, Corning Incorporated creates leading-edge
technologies that offer growth opportunities in markets that fuel
the world's economy. Corning manufactures optical fiber, cable
and photonic products for the telecommunications industry; and
high-performance displays and components for television,
information technology and other communications-related
industries. The company also uses advanced materials to
manufacture products for scientific, semiconductor and
environmental markets. (source: company press release)

Why We Like It:
As traders, we're constantly reminding ourselves to "trade what
we see, not what we think."   Wall Street does a great job of
defying the expectations of the masses.  For instance, networking
and telecom equipment stocks such as CIEN, JNPR, and GLW were all
cratering to multi-year lows in early October.  This made perfect
sense from a fundamental standpoint.  In Corning's case, they
reported a sixth consecutive quarter of losses last month.
Citing a continued telecom slump, the company also forecast
weaker-than-expected future earnings and announced a
restructuring plan involving 2,200 job cuts.  Basically the
outlook for demand within the sector is Ugly, with a capital "U."
Corning underscored this weakness on November 12th, when they
said they did not expect to see a seasonal upturn in business.
GLW bottomed out at $1.12 on October 8th.  Fast-forward 8 weeks,
and shares have quadrupled in value.

What gives?!  As far as we can tell, there hasn't been any been
news that points towards an improvement in demand.  The recent
price explosion in GLW (and other networkers) simply seems to be
a result of Wall Street's newfound appetite for former tech high-
flyers that are trading at fractions of their all-time highs.
Given the fact that we are entering a historically bullish period
for the equity market and the major indices are poised to break
above resistance, we think chances are good that the buying
momentum will continue.  Technically, we like how GLW has bounced
back above the 200-dma ($4.17) after consolidating near $4.00.
The reversing daily stochastics (5,3,3) indicate that a
sufficient amount of steam was blown off by the pullback.  The
stock showed good relative strength versus the directionless
NASDAQ on Friday and is approaching the multi-month high of
$4.65.  Our trigger to enter this long play will be at $4.66.
Should a breakout take place, we believe GLW could rally up to
the $6.00 area.  However, if the current trend remains intact we
wouldn't rule out a move to $7.00, which looks like more
formidable resistance on the daily chart.  If this play is
triggered our stop will be set at $3.94.  Slightly more
conservative traders could use a stop just under today's low of
$4.15.

Picked on December xth at $xx.xx
Results since picked:      +0.00
Earnings Date            10/30/02 (confirmed)





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

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

Amerada Hess - AHC - close: 56.00 change: +0.06 stop: 52.39

Despite all the news that we hear in the media about Iraq and now
the focus on Saudi Arabia there has been no abrupt changes in the
oil sector.  The January contracts for crude continue to tick
higher as we expected and the OIX.X oil index bounced strongly
from the 250 level on Wednesday.  The bounce in the sector
shouldn't be given too much credence as the entire market was in
rally mode pre-Thanksgiving.  Shares of AHC continue to maintain
their gains, which is a bullish sign in and of itself.  The last
few sessions have seen the buyers support the stock at the $55
level and this could be a potential entry point on futures dips.
Keep in mind that we still suspect that any significant dip in
the broader indices could have AHC pull back to $54.  Adjust your
stops according to your own risk tolerance.  On an editor's note,
what could affect the price of oil is the current unrest
developing in Venezuela, the fifth largest oil producer in the
world.  Rumor has it that a potential workers strike could impact
oil production as civil unrest in the country grows.

Picked on November 12th at $52.41
Results since picked:       +3.59
Earnings Date            10/24/02 (confirmed)




---

ICOS Corp. - ICOS - close: 31.83 change: +0.07 stop: 28.72

As the saying goes, "a rising tide lifts all boats."  The broad
market rally on Wednesday appeared to be just the ticket to float
the major sectors higher - and sharply so.  The BTK.X biotech
index bounced strongly as did shares of ICOS after what appeared
to be signs of a more significant pull back in progress at the
close of Tuesday's session.  This rush of bullishness lifted
shares of ICOS right back to current resistance near $32 and kept
the stock there.  Friday's session was extremely range-bound and
offered little clues going forward.  Therefore, we continue to
urge caution on new positions.  Yes, we're encouraged by the
strength seen in ICOS but new positions are probably better
entered on pull backs near the $30 mark (like Tuesday).  The
difference is we'd like to see the stock bounce near $30.
Tuesday's close was looking rather dour and a significant close
under $30 would actually have us second-guessing the stock's
strength and ability to maintain any rally.  What should traders
do now?  Short-term traders will want to monitor their stops.
Ours is still on the wrong side of the 200-dma.  The stock could
still pull back to $29.00-28.50 on a steep market pull back.  We
would suggest maybe a half position on a pull back and then
continue to evaluate as the play progresses.  Keep an eye on the
BTK as evidence of investor sentiment for the sector.

Picked on November 22nd at $30.05
Results since picked:       +1.78
Earnings Date            11/05/02 (confirmed)




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

Curtiss Wright - CW - cls: 62.05 chg: -1.95 stop: 64.01 *new*

To quote from Tuesday's update: "CW looks like it could quickly
fall to the $62.00 area if support at $64.00 gives way."  The
bears were clearly on the defensive on Wednesday afternoon when
CW broke under $64.00.  Frankly, we weren't expecting the decline
to continue while the overall market drifted around without any
clear direction on Friday, but the bulls seemed thoroughly
spooked by the breakdown.  CW trended lower throughout the
session and finished at the lows of the day.  Our charting
service actually shows a closing price of $61.50, but this
appears to have been a bad tick.  Interestingly, today's volume
was higher than several full-day trading sessions over the past
week.  The stock really seems to be building some bearish
momentum.  With CW approaching possible support at the 50-dma
($60.56), it's time to start thinking about an exit strategy.
We're going to set an official profit-target at $60.76.  This
would be a 6.4% gain from our entry point.  We'd originally hoped
to ride CW all the way down to $60.00, but the rising action of
the 50-dma makes that a little harder to accomplish.  Aggressive
traders could take only half of their positions off the table, in
hopes that CW will completely break down and fall to the $55.00
level.  There just isn't a whole lot of support on the daily
chart below $60.00.  Our stop is now located at $64.01.

Picked on November 19th at $64.94
Results since picked:       +2.89
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:
http://www.optioninvestor.com/page/oin/aboutus/disclaimer.html

*****************************************************************
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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 11-29-2002
                                                   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 December 2nd
   - 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 December 2nd
=========================================

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

Symbol  Company               Date           Comment      EPS Est

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

None


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

ADCT   ADC                   Tue, Dec 3  After the Bell      -0.09
CHS    Chico's FAS           Tue, Dec 3  Before the Bell      0.18
JDEC   J.D. Edwards          Tue, Dec 3  After the Bell       0.11
NAV    Navistar Intl         Tue, Dec 3  Before the Bell     -1.07
PETM   PETsMART              Tue, Dec 3  Before the Bell      0.12


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

BTH  Blyth Inc.              Wed, Dec 4  Before the Bell      0.63
LYG  Lloyds TSB Group        Wed, Dec 4  02:00 am ET           N/A
PLL  Pall Corp.              Wed, Dec 4  After the Bell       0.17
SIGY  Signet Group           Wed, Dec 4  07:00 am ET          0.11
SNPS  Synopsys               Wed, Dec 4  After the Bell       0.93


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

CSG    Cadbury Schweppes     Thu, Dec 5  -----N/A-----         N/A
ENL    Elsevier NV ADS       Thu, Dec 5  -----N/A-----         N/A
MBG    Mandalay Resort Group Thu, Dec 5  After the Bell       0.50
RUK    Reed Elsevier NV/Plc. Thu, Dec 5  -----N/A-----         N/A
SXC    Six Conts Htl Rsrts   Thu, Dec 5  -----N/A-----         N/A
UU     United Utilities      Thu, Dec 5  -----N/A-----         N/A


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

NSM    National Semicon      Fri, Dec 6  12:15 pm ET         -0.03


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

Symbol  Company Name              Ratio    Payable     Executable

CHTT    Chattem Inc.              2:1      Nov. 29th   Dec.  2nd
BYFC    Broadway Financial        2:1      Nov. 30th   Dec.  2nd
GSOF    Group 1 Software          2:1      Dec.  2nd   Dec.  3rd
ACDO    Accredo Health            3:2      Dec.  2nd   Dec.  3rd


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

December is traditionally a bullish time of year for equities
but Wall Street will be paying close attention to the Auto &
Truck sales out on Monday as well as the Construction spending
numbers.  Wednesday reveals the productivity report and Friday
will have several reports before the opening bell.

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

Monday, 12/02/02
----------------
Auto Sales (NA)         Nov  Forecast:   5.5M  Previous:     5.3M
Truck Sales (NA)        Nov  Forecast:   7.5M  Previous:     7.1M
ISM Index (DM)          Nov  Forecast:   49.5  Previous:     48.5
Construction Spnding(DM)Oct  Forecast:  -0.2%  Previous:     0.6%


Tuesday, 12/03/02
-----------------
None


Wednesday, 12/04/02
-------------------
Productivity-Rev. (BB)   Q3  Forecast:   4.5%  Previous:     4.0%
ISM Services (DM)       Nov  Forecast:   53.2  Previous:     53.1
Factory Orders (DM)     Oct  Forecast:   0.9%  Previous:    -2.3%


Thursday, 12/05/02
------------------
Initial Claims (BB)   11/30  Forecast:    N/A  Previous:     364K


Friday, 12/06/02
----------------
Nonfarm Payrolls (BB)   Nov  Forecast:    13K  Previous:      -5K
Unemployment Rate (BB)  Nov  Forecast:   5.8%  Previous:     5.7%
Average Workweek (BB)   Nov  Forecast:   34.2  Previous:     34.1
Hourly Earnings (BB)    Nov  Forecast:   0.3%  Previous:     0.2%
Consumer Credit (AB)    Oct  Forecast:  $7.3B  Previous:    $9.9B

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

HON     Honeywell Intl.            26.01     +1.57
CBE     Cooper Industries          38.02     +1.43
AEG     Aegon Nv                   15.96     +0.86

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

USG     USG Corp                    7.85     +1.04
OSTK    Overstock.com Inc          13.42     +1.67

---------------------------------------
Breakout to Upside (Stocks over $20)
---------------------------------------
Ticker  Company Name               Close     Change
PPD     Pre-Paid Legal             28.65     +2.02
HAL     Haliburton Co              21.37     +2.18
SEE     Sealed Air Corp            38.20     +13.72

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

CNTE    Centene Corp               27.95     -2.31

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




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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:
http://www.optioninvestor.com/page/oin/aboutus/disclaimer.html

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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.

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