Option Investor
Newsletter

Daily Newsletter, Monday, 12/09/2002

HAVING TROUBLE PRINTING?
Printer friendly version
PremierInvestor.net Newsletter                 Monday 12-09-2002
                                                  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:      Snow Day
Watch List:       AMZN, CC, IDPH, PSFT, TDS, and more...
Play of the Day:  Road Block


******************************************************************
MARKET WRAP  (view in courier font for table alignment)
******************************************************************
12-09-2002                High    Low     Volume Advance/Decl
DJIA     8473.41 -172.36 8643.99  8473.00 1519 mln  206/1250
NASDAQ   1367.14 - 55.30 1411.40  1367.07 1474 mln  103/1360
S&P 100   453.99 - 10.43  464.42  453.99   totals   309/1610
S&P 500   892.00 - 20.23  912.23  891.97
RUS 2000  386.29 - 10.43  396.72  385.93
DJ TRANS 2322.67 - 66.14 2385.06 2321.30
VIX        34.47 +  1.79   34.90  33.50
VIXN       52.98 +  0.70   54.08  52.77
Put/Call Ratio 0.72
******************************************************************


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

Snow Day
by Steven Price

The buyers took a snow day today, staying home and leaving the
markets in the red from the opening bell. With the Paul O'Neill
resignation out of the way, and a nomination for a more stimulus-
friendly Treasury Secretary in place, the bulls had little left
to combat the United Airlines Bankruptcy, IBM downgrade and news
that the holiday shopping season is looking weak just a week
after setting a new one-day record.  We re-tested Friday's lows
in the Dow, OEX, SPX and Nasdaq, with all bleeding red down to a
new relative lows. Today's drop may simply be the continuation of
the response to last Friday's jobs data, which showed a higher
than expected unemployment rate of 6%.  That drop rebounded on
the news of O'Neill's resignation, but appears to have caught up
to us today, compounding today's news.

United (UAL) made it official, filing for bankruptcy protection
on Sunday.  The filing was necessitated by the almost $1 billion
in debt that comes due starting this week. Chairman Glenn Tilton
said the company and its employees are prepared to make the
company profitable once again, but so far the unions and
management have not had much luck in finding settlements that
work for both sides. The company's attorney said it was losing
$22 million each day, more than three times its average daily
loss in the third quarter.  The stock sold off early in trading,
but rebounded following UAL's announcement that it was
implementing pay cuts for officers and salaried and management
employees.   It finished the day unchanged at $0.93.

President Bush announced his nomination of rail executive John
Snow to head the Treasury.  Snow is chairman and chief executive
of freight carrier CSX Corporation, as well as the former head of
the Business Roundtable, the lobbying group that represents
corporate leaders in Washington.  He also sits on the boards of
Johnson & Johnson, Verizon, Circuit City, USX and Sapient.  He
certainly has plenty of business experience, but his personal
experience is probably less important than the fact that the
President put someone in place that will support his tax-cut
plans. Rather than trying to figure him out, we can assume that
if we were not in Bush's corner, he would not have the job.  Bush
said this morning, " I'll be proposing specific steps to increase
the momentum of our economic recovery, and the Treasury Secretary
will be at the center of this effort."  He also mentioned that,
"Many Americans have very little money leftover after taxes."
Sounds like the economic stimulus plan just took a few steps
forward and investors can expect a tax break sometime in the next
year.  Still, the appointment of a Bush-friendly Treasury
Secretary was not enough to keep Friday's rally going.  Friday
morning saw a sell-off all the way down to 8501, before a furious
rally saw the average up on the day.  Today we tested that level
once again, bouncing at the same point, and then rolling over
below that support.

Bush also tapped Stephen Friedman, former CEO of Goldman Sachs,
to replace Larry Lindsey as head of the National Economic
Council.  By choosing Friedman, the President has now filled
vacancies with someone from industry, as well as someone from
Wall Street, satisfying both factions.

After today's sell-off in both the techs and industrials, the
chances of a breakout over the August highs in the Dow and SPX is
looking less likely before the end of the year.  We took a run at
that level following Thanksgiving and have seen a decisive
pullback ever since.  We've seen the most consecutive down days
in the Dow since the August to October sell-off, and although we
can expect a bounce at some point, the near-term picture does not
look promising for a continued rally. As we approach Dow 8300, we
may be looking at the possibility of a bearish head and shoulders
formation.  I talked about that possibility back in October, when
the Dow began to form what looked like a left shoulder at 8550,
with a head at 8800 on November 6.  I don't want to sound like
the analyst that cried wolf, so I'll simply suggest that the 8800
level "may" have been the left shoulder, with the latest run at
the August high as the head.  The run ended at 9043 on December
2. I'm not predicting doom and gloom just yet, but another
rebound from 8300 should be a red flag to traders as we approach
8800 once again (if we get there). The eventual downside
objective of an H&S pattern with the head at 9043 and the
neckline at 8300 would be around 7600.  However, there is still
plenty of trading ahead of us before the formation fills out and
at least one big rally to play long.  For the time being,
however, we continue to bleed red toward that support at 8300. If
we are going to bounce, however, there are a number of factors
pointing to it happening soon.  That support at 8300 is awfully
strong, and coincides with stochastics that are in oversold
territory. The 50-dma sits at 8345 and has provided both support
and resistance in the recent past. Add to the mix the seasonal
rally at the end of the year and a big bounce, however temporary,
could be in the mix.

Chart of the Dow



The Nasdaq Composite dropped all the way to its November 19 low
of 1367, which coincides with lows of Dow 8400 (still in place)
and SPX 893 (broken today). The IBM downgrade from Banc of
America got the tech ball rolling downhill, with help from a
Salomon Smith Barney downgrade to Qualcomm. The COMP finished
down -55.35, accompanied by a -2.73 drop in IBM ($79.59) and -
2.29 drop in Qualcomm ($39.19). The next level of support for the
COMP is in the 1315-1319 area, which has served as both support
and resistance.  However, if we are going to get a bounce, this
level (1367) could give us that bounce, after acting as previous
support. The sell-off came in spite of a report from Taiwan
Semiconductor that net year over year sales in November rose 32%
and that the drop from October's numbers was less than expected.
The Semiconductor Index (SOX.X) still dropped -23.73 through two
recent levels of support.  It appears we are seeing "Alice in
Semiconductor-land," as recent good news about an upturn in
demand has led to an 86-point sell-off in the last week.  That
sell-off followed poor earnings reports and poor visibility of an
increase in IT spending, which fueled a 183-point rally from
October through November. Confused?  Forget the news trade what
you see.

Chart of the Nasdaq Composite (COMPX)


Chart of the SOX


We got some disappointing news from the retail sector, as Wal-
Mart (WMT) said weekly sales came in at the low end of the
company's 3-5% growth plan.  This came out just a week after the
company reported record one-day revenues the day after
Thanksgiving.  The big numbers that day are most likely the
result of a late Thanksgiving and shoppers having one less week
to get their shopping done. While shoppers may not purchase fewer
items because of the late start to the "holiday" shopping season,
they will purchase a higher amount of gifts during the last two
weeks before Christmas, when aggressive discounting takes place
to clear shelves.  This could cut further into retailers' bottom
lines, which are already being affected by a slow economy.
Federated (which owns Macy's and Bloomingdale's) saw November
same store sales down 7.4% and said if December sales are flat,
that November-December figures should come in at the low end of
the company's forecast of flat to down 2.5%. The company echoed
sentiments from Wal-Mart that extreme winter weather in the east
was partially to blame for the disappointing week.  While that
may account for some of the disappointment, we got the same
excuses over the summer, when warm weather supposedly kept
shoppers from buying sweaters and winter coats.  Guess what?  A
slowdown in sales meant shoppers were actually buying less!
Weather has been a convenient excuse for months, but with a
rising unemployment rate, it appears that the summer/fall's trend
of disappointing retail sales is simply continuing into the most
important time of the year for retail sales. Teen-oriented
retailer Sketchers (SKX) also issued a warning today, saying it
will lose $0.25-0.35 in the fourth quarter, instead of the $0.05
profit analysts were expecting.  At this rate, don't be surprised
to see a big guy in a red suit, with 8 large dogs tied up
outside, standing in the unemployment line. Retail sales are a
good measure of consumer spending, which bleeds into all sectors
of the economy.  I wrote a couple weeks ago about the possibility
of poor retail sales acting as a time bomb to a soaring market,
and it appears to be having the stated affect.  The Retail Index
(RLX.X) lost 2.5% and fell through its 50-dma to close at 276.56.

With the broader indices all approaching significant support
levels, I expect the drop of the last week to slow down, or get
at least a marginal bounce somewhere along the way.  The end of
the year usually brings a rally and that rally would coincide
with a bounce off support.  Keep an eye on the levels outlined
above, because if they fail, it could be a steep drop until we
find the next floor. If they hold, then we're due for a bounce
and long plays could be back in season - at least temporarily.


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

Amazon.com - AMZN - close: 21.68 change: -0.93

WHAT TO WATCH: Indications of a strong holiday season for this
leading internet retailer weren't enough to keep shares near the
52-week high of $25.00.  AMZN pulled back with the NASDAQ over
the past few days and began to retrace its mid-November rally.
As far as action points are concerned, we'll be keeping an eye
out for a pullback to $20.00.  The bulls will be looking this
level of previous resistance to now provide support.  The 50-dma
at $20.07 should also help to put a floor under AMZN.  Although
the MACD is showing a recent bearish crossover, the oversold
daily stochastics are hinting at a rebound.  A decline to the
$20.00 area would exacerbate these oversold conditions.




---

Circuit City - CC - close: 8.21 change: -0.54

WHAT TO WATCH: Shares of this electronics retailer are in danger
of falling to levels not seen since 1992.  The stock trended
lower over the past three sessions, despite last Thursday's news
of strong third-quarter sales.  Bears will be watching for CC to
slice through support at $8.00 and fall under the relative low of
$7.87.  With shares trading at multi-year lows, it wouldn't be
surprising to see a rapid decline to the $6.00-$7.00 region.




---

Choicepoint Inc - CPS - close: 38.06 change: +0.23

WHAT TO WATCH: CPS maintained its two-month pattern of higher
lows last Wednesday when it bounced from the 50-dma at $36.31.
Shares have shown good relative strength, which bodes well for a
breakout from the recent sideways trading pattern.  A trade at
$39.00 would create a triple-top buy signal and also put CPS
above bearish resistance.  Watch for a move above this level to
open the door for a test of the 200-dma at $41.12.  Other than
this moving average, we don't see any significant levels of
resistance until $45.00.




---

IDEC Pharmaceuticals - IDPH - close: 33.32 change: +0.71

WHAT TO WATCH: IDEC has been trading under $35.00 since late-
November, when Merrill Lynch downgraded the stock.  What caught
our attention is the remarkable relative strength that was
displayed over the past few days.  A 15-minute chart shows a
pattern of higher highs and higher lows.  The rising oscillators
indicate that this trend will continue.  IDPH managed to tack on
another 2.1% today, despite a 3.8% loss in the BTK.X biotech
index.  If the tech sector can manage a rebound we'd be looking
for the stock to move back above $35.00.  Once this level is
conquered, the bulls may have a clear shot to the 50-dma near
$40.00.




---

PeopleSoft Inc. - PSFT - close: 16.93 change: -1.15

WHAT TO WATCH: The GSO.X software index has continued to weaken
with the NASDAQ.  PFST might be a good short the sector continues
to fall.  Shares underperformed the GSO today and fell below
support at $17.00, despite comments from the company's VP this
morning that PeopleSoft is stealing market share from competitor
SEBL.  Technically, the stock is looking awfully weak.  PSFT has
trended lower ever since it topped out under the 200-dma ($20.34)
last Monday.  Today's violation of the 50-dma ($17.14) could
bring more bears off the sidelines.  The oversold daily
stochastics (5,3,3) suggest that PSFT is due for a short-covering
bounce. However, the p-n-f chart should have shareholders very
concerned. The stock is threatening to break below bullish
support at $16.50. A trade at this level would create a triple-
bottom sell signal. This would also put PSFT below the late
October low of $16.69. Should a breakdown occur, we'd be looking
for a test of the psychologically-important $15.00 level. The bar
chart doesn't show any clear levels of support until the October
lows near $12.00.




---

Symbol Tech - SBL - close: 8.31 change: -0.82

WHAT TO WATCH: The bears feasted on SBL today, as shares gave
back nearly 9% on no apparent news.  This move did some severe
technical damage by taking the stock below its 50-day, 100-day,
and 200-day moving averages.  The recent bearish MACD crossover
is hinting at a continued sell-off.  Watch for a move below $8.00
to clear the way for a possible retest of the mid-October lows at
$5.00.  Shorter-term traders may want to target the September
lows near $7.00.  Possible support also lurks at $6.00, which is
the location of the 81% retracement from December highs to
October lows.




---

Telephone & Data Systems - TDS - close: 50.26 change: -2.84

WHAT TO WATCH: After a rapid decline from the $55.00 area, TDS is
in danger of falling below $50.00.  This level has provided
reliable support since mid-November.  If a breakdown does occur,
we don't see any major obstacles to prevent a retest of the
October lows in the $44-$45 area.  Traders seeking confirmation
on the p-n-f chart will have to wait for a trade at $49 to create
a sell signal.




---

Valero Energy - VLO - close: 35.52 change: -0.87

WHAT TO WATCH: VLO looks like a possible short trade on a move
below $35.00.  The stock posted gains late last week on the heels
of an upgrade from Prudential, but now the bulls are struggling
with historical resistance at $37.00.  This level also happens to
coincide with the 200-dma.  Additionally, the point-and-figure
chart shows bearish resistance at $38.00.  With the daily
stochastics (5,3,3) beginning to reverse from the upper band, it
looks like VLO will have a tough time maintaining near-term
support at $35.00.  A move below this level could send the stock
back towards its 50-dma at $31.28





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

H&R Block - HRB - close: 37.52 change: -1.08 stop: *text*

Company Description:
H&R Block Inc. is a diversified company with subsidiaries that
deliver tax services and financial advice, investment and mortgage
products and services, and business accounting and consulting
services. As the world's largest tax services company, H&R Block
served nearly 23 million clients during fiscal year 2002. Clients
were served at the approximately 10,400 H&R Block retail offices
worldwide and through the company's award-winning software, TaxCut.,
and its online tax services. (source: company press release)

Why We Like It:
H&R Block's second-quarter earnings report on November 26th
legitimized many investors' concerns that recent legal problems
would have a negative impact on the bottom line.  Citing a large
charge related to the settlement of a class-action lawsuit in
Texas, the company reported a loss of 21 cents/share, compared to
last year's Q2 loss of 15 cents.  This settlement was related to
loans given in advance of tax refunds.  The legal woes continued
on Friday, when a New York law firm launched a Class Action suit
against H&R Block, charging that some employees' made "material
misrepresentations to the market...thereby artificially inflating
(the stock's) price."  Although this lawsuit might not result in
significant losses for the company, it certainly doesn't help
investor confidence.  Throw in underlying concerns on Wall Street
that HRB relies too heavily on its mortgage business, and it's
easy to see why the stock was unable to move above its multi-
month trend of lower highs.

This descending trend (which can be easily seen by connecting the
September, October, and December highs) is bolstered by the 50-
dma at $39.97.  Today's 2.7% decline took HRB below short-term
support at $38.50 and set the stage for a test of more
substantial support at $37.00.  The rolling MACD and falling
daily stochastics (5,3,3) indicate that a breakdown could be
forthcoming.  Should this be the case, we'll be looking for HRB
to move towards the November low of $29.00.  This might be a
little overly optimistic for short-term traders, so we're going
to place our initial profit-target at $32.06.  Those with a more
limited timeframe may want to shoot for a move to the $34.00
area.  Our trigger to enter this play will be set at $36.98.
Traders who are a bit more aggressive could consider going short
at current levels.  If the play is activated our stop will be set
at $40.01, slightly above the descending 50-dma.  We'll quickly
move that stop lower if/when the stock begins to cooperate with
our bearish outlook.

Picked on December xxth at $xx.xx <- see text
Results since picked:       +0.00
Earnings Date:           11/26/02 (confirmed)







=================================================================
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                  Monday 12-09-2002
                                                   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
  Closed Bearish Plays:  VRNT

Stock Bottom / Active Trader
  New Bearish Plays:     HRB

High Risk/Reward
  Closed Bullish Plays:  AHC

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

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

Verint Systems - VRNT - close: 16.75 change: -1.53 stop: 18.86

Wow...Talk about fast results!  Too bad the market doesn't always
cooperate this nicely.  Our short play in VRNT was triggered at
$17.97 within the first five minutes of trading on Monday
morning.  Shares briefly moved higher before the bears seized
upon a rollover from resistance at $18.50.  A steep decline,
backed by strong volume, brought VRNT down to the $16.50 area.
Another downward spike around 11:00 provided the coup de grace as
shares reached an intraday low of $16.00.  Based on the
expectation that this level would provide support, we placed our
profit-target at $16.06.  The play was closed for a 10.6% gain
just before shares bounced back towards the $16.50-$17.00 area.
Although we couldn't find any news to explain the morning sell-
off, the high volume suggests to us that some large institutional
players were eager to unload positions after the failure of
support at $18.00.  Traders who are still short VRNT can be
encouraged by the intraday rollover from $17.00.  A gain of
roughly 5% could be protected by placing stops slightly above
that level.

Picked on December 9th at $17.97
Results since picked:      +1.91
Earnings Date           11/26/02 (confirmed)






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

============
AT New Plays
============

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

H&R Block - HRB - close: 37.52 change: -1.08 stop: *text*

Company Description:
H&R Block Inc. is a diversified company with subsidiaries that
deliver tax services and financial advice, investment and mortgage
products and services, and business accounting and consulting
services. As the world's largest tax services company, H&R Block
served nearly 23 million clients during fiscal year 2002. Clients
were served at the approximately 10,400 H&R Block retail offices
worldwide and through the company's award-winning software, TaxCut.,
and its online tax services. (source: company press release)

Why We Like It:
H&R Block's second-quarter earnings report on November 26th
legitimized many investors' concerns that recent legal problems
would have a negative impact on the bottom line.  Citing a large
charge related to the settlement of a class-action lawsuit in
Texas, the company reported a loss of 21 cents/share, compared to
last year's Q2 loss of 15 cents.  This settlement was related to
loans given in advance of tax refunds.  The legal woes continued
on Friday, when a New York law firm launched a Class Action suit
against H&R Block, charging that some employees' made "material
misrepresentations to the market...thereby artificially inflating
(the stock's) price."  Although this lawsuit might not result in
significant losses for the company, it certainly doesn't help
investor confidence.  Throw in underlying concerns on Wall Street
that HRB relies too heavily on its mortgage business, and it's
easy to see why the stock was unable to move above its multi-
month trend of lower highs.

This descending trend (which can be easily seen by connecting the
September, October, and December highs) is bolstered by the 50-
dma at $39.97.  Today's 2.7% decline took HRB below short-term
support at $38.50 and set the stage for a test of more
substantial support at $37.00.  The rolling MACD and falling
daily stochastics (5,3,3) indicate that a breakdown could be
forthcoming.  Should this be the case, we'll be looking for HRB
to move towards the November low of $29.00.  This might be a
little overly optimistic for short-term traders, so we're going
to place our initial profit-target at $32.06.  Those with a more
limited timeframe may want to shoot for a move to the $34.00
area.  Our trigger to enter this play will be set at $36.98.
Traders who are a bit more aggressive could consider going short
at current levels.  If the play is activated our stop will be set
at $40.01, slightly above the descending 50-dma.  We'll quickly
move that stop lower if/when the stock begins to cooperate with
our bearish outlook.

Picked on December xxth at $xx.xx <- see text
Results since picked:       +0.00
Earnings Date:           11/26/02 (confirmed)






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

===============
HR Closed Plays
===============

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

Amerada Hess - AHC - close: 56.83 change: -0.73 stop: 56.25

It took a bit longer than we expected but we were patient and
shares of AHC cooperated throughout some turbulent days on Wall
Street.  Spanning nearly a month, our bullish play in AHC has
yielded a hypothetical gain of $6.09 or 11.6% since the pick date
near November 12th.  We were closed out of the position when
shares traded to and above our exit target of $58.50.  Why did
the oil stock continue higher this morning?  It is most likely
due to the on going unrest in Venezuela to the south, not to
mention the Iraqi issue and the up coming OPEC meeting.  The
stock did not trade near its 50-dma too long this morning and
traders took the opportunity to lighten up and take profits.
Considering the 172-point loss in the Dow Industrials we're
surprised there was not more profit taking in AHC today.  The
slowly rising price of oil has been feeding the rebound in AHC
and traders should keep an eye on it.  The January oil futures
contracts appear ready to break upward from their recent sideways
pennant-forming consolidation.  However, until that price
breakout occurs we'd suspect AHC is due for a more significant
pull back.  Trade carefully if you still maintain a position.

View Chart of AHC Play:



Picked on November 12th at $52.41
Results since picked:       +6.09
Earnings Date            10/24/02 (confirmed)





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

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


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

CW      Curtiss Wright             63.10     +1.11
EXC     Exelon Corp                51.72     +1.18
SO      Southern Co                27.28     +0.76
CED     Canadian Natural Res.      28.20     +0.53
MTH     Meritage Corp              31.15     +0.55

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

LABS    LabOne Inc                 19.22     +2.02
AYE     Allegheny Energy            8.30     +2.00

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

PATH    Ameripath Inc              21.01     +4.56

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

ELBO    Electronics Boutique       26.92     -2.19
FRX     Forest Labs                96.00     -2.35
GUC     Gucci Group                89.50     -1.10
APC     Anadarko Petroleum         47.49     -2.10
MHK     Mohawk Industries          57.40     -1.84
MBI     MBIA Inc                   42.20     -1.63
WMH     Wireless HOLDRS            37.02     -2.14
BREL    Bioreliance Corp           23.65     -1.20
DB      Deutsche Bank              45.76     -2.99

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

HRB     H&R Block                  37.52     -1.08
AVB     AvalonBay Communities      39.25     -0.40
CX      Cemex ADS                  22.43     -0.54
ITLA    ITLA Capital Corp          33.19     -0.46
HUMC    Hummingbird Ltd            21.55     -0.74




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