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Daily Newsletter, Friday, 12/13/2002

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PremierInvestor.net Newsletter          Weekend Edition 12-13-2002
                                                    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:      Buyers Strike
Play-of-the-Day:  Printer Jam
Watch List:       ADBE, COST, D, PIXR, RKY, and lots more...
Market Sentiment: What Good News?

******************************************************************
MARKET WRAP  (view in courier font for table alignment)
******************************************************************
       WE 12-15        WE 12-06        WE 11-29        WE 11-22
DOW     8433.85 -211.92 8645.77 -250.32 8896.09 + 91.25 +226.75
Nasdaq  1362.42 - 60.02 1422.44 - 56.30 1478.74 + 10.05 + 57.60
S&P-100  451.81 - 12.61  464.42 - 14.43  478.85 +  3.82 + 11.31
S&P-500  889.48 - 22.75  912.23 - 24.08  936.31 +  5.76 + 20.72
W5000   8426.26 -202.90 8629.16 -217.52 8846.68 + 63.55 +199.08
RUT      387.98 -  8.74  396.72 -  9.64  406.36 +  6.36 + 14.08
TRAN    2318.47 - 70.34 2388.81 + 28.19 2360.62 + 46.64 - 19.12
VIX       32.12 -  0.56   32.68 +  1.60   31.08 +  4.35 -  4.10
VXN       50.92 -  1.36   52.28 +  2.80   49.48 +  2.00 -  3.19
TRIN       1.34            1.11            1.04            1.05
Put/Call   0.87            0.91            0.62            0.70
******************************************************************

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

Buyers Strike
by Jim Brown

Worries over global problems weighed on the markets on Friday
and lack of volume suggested more of a buyers strike than a
rush to sell. A continued sell off in overseas markets and a
weak dollar combined to knock the markets back to near key
support levels at Friday's open.

Dow Chart - Daily

Nasdaq Chart - Daily


The morning began with several shocks. The PPI fell by -0.4%
when analysts had expected it to be flat. This was the largest
drop since May and indicates that inflation is nowhere in sight.
Also deflationary pressures appear to be abating as well. Core
intermediate and crude prices are rising slightly. Unless the
core prices begin to fall it indicates manufacturing is holding
steady. The current glut in global capacity is slowly being
absorbed into the outlook for 2003. Business inventories also
rose slightly for the sixth consecutive month but not enough
to change the current trend. The +0.2% growth was slightly less
than the growth in sales at +0.4% and left the inventory-to-sales
ratio at 1.36. Most of the gain was due to a buildup in retail
inventories for the holidays. The low I-T-S ratio will help
produce a stronger rebound when the recovery eventually occurs.
There will be a rush to restock once demand exceeds the current
maintenance levels.

The University of Michigan Consumer Sentiment bounced +2.8 points
to 87.0 in early December and while more than expected it did
not paint a picture of a bullish consumer hitting the malls.
This was the second monthly gain from the October low of 80.6
but the rate of increase is less than exciting. The gains in
the market from the October lows have been evaporating and with
them the bounce in bullish sentiment. With unemployment rising
and credit becoming harder to get the lower interest rates are
becoming less of a stimulus for the economy and for consumers.
This bounce is another step in the right direction but at a
snail's pace compared to what economists would like to see.

Global problems included a -192 point slide in Tokyo adding to
the eight day drop so far in December. Continued rumblings
about Iraq continue to point to an imminent war. One source
said only 300 pages of the 12,000 page disclosure was new with
the rest being left over from the last inspection effort.
According to the U.S. there are massive omissions and according
to inspectors most of the Iraq scientists are missing. Traders
know where this is headed.

In South America the riots in Venezuela are increasing and oil
output is on the verge of a complete stoppage. President Bush
called on Hugo Chavez to hold early elections to resolve the
current civil problems. Since elections are likely to replace
Chavez I would not hold my breath for that to happen soon. Oil
futures closed near $28 and a two month high. If a civil war
breaks out in Venezuela there are fears that unrest could
spread to other neighboring countries with additional financial
risk to U.S. companies.

The holiday shopping season is running into further snags as
shoppers accelerate their last minute buying. There are reports
of lack of inventory on store shelves and selection deteriorating.
It appears many retailers were not very confident about ordering
for this holiday season and were worried about getting stuck with
excess inventory. They ordered less and are now suffering from
lack of sales. While this is a problem for shoppers it is going
to be a bigger problem for retailers when profits come in below
estimates. One spot check on Amazon showed a drought in popcorn
poppers with only three models in inventory on Friday, down from
a dozen models just a week before.

On the flip side are the retailers that did order too much and
are now frantically trying to blow out slow inventory at fire sale
prices well before the last minute. Omaha Steaks for instance
sent out a mass email Friday offering their popular $52.95 top
sirloin package at 50% off and get 12 quarter pound burgers free.
A visit to the webpage for this offer showed many other 50% off
products. This may have been their planned strategy from the
start to capture last minute shoppers but a quick walk through
the malls shows the same markdowns. I strolled through a Kohl's
on Wednesday night and carts of marked down merchandise filled
the isles. This was good since a quick count showed less than
40 customers in the entire store. There were no customers in
line and three checkers sitting idly by waiting for someone
to help.

These two paragraphs may seem like a conflict of events but I
think it shows the hit or miss buying patterns of consumers
this holiday. The high demand items are quickly disappearing
due to low inventory levels while the mass merchandise categories
are not seeing mass buying. Wal-Mart, with full parking lots,
hit a new two-month low on Friday while Sears is actually
showing strength. I attribute this strength to the Lands End
business Sears acquired and which appears to be performing
well online this season. Reports from UPS drivers claim Lands
End packages are running a close second to Amazon in numbers.
I suggested Sears as an investment buy in the Market Monitor
earlier this week.

Another challenge for this holiday season was a profit warning
from TSG on Friday. Sabre Holdings, TSG, includes Travelocity.com
and they are a major booker of holiday travel. They said demand
continued to be weak and they were cutting the 4Q and full year
estimates. They said dropping capacity and lack of travelers
would continue to haunt the industry well into 2003. The fear
of another terrorist attack as well as lack of business travel
is making the travel business very difficult. In the same sector
the UAL bankruptcy is sending ripples through the economy in
ways many had not expected. Since most planes are purchased
by investors and corporations and then leased to the airlines
the bankruptcy allows UAL to cancel those leases. UAL has already
cancelled over 100 planes and considering the depressed airline
sector those planes are now worth far less to investors than
they were just a year ago. Several companies have already
warned that earnings will be impacted by lack of revenue from
prior leases. Some companies with heavy exposure to airline
leases include GE, BA, F, MO and DIS. Those companies must
now remarket or resell the planes in an economy where parking
spaces for out of service aircraft is already at a premium.
Not only can they not resell them but there is no place to
park them while trying. If UAL can lower costs by dumping
hundreds of plane and gate contracts then others may have
to file to achieve the same benefits. This chain reaction
could reach all the way to American Airlines. US Air has
already rejected 75 leases and has permission to abandon
another 125. This gives you some indications of how serious
the UAL lease abandonment could be.

The chip sector took another hit on Friday as Intel and AMD
were rated at "underweight" by JPM. They said the company is
under pressure from slowing growth of PC sales. They said
slowing growth and over capacity remains a problem and the
estimated 2003 growth of only +2% to +4% is still questionable.
Adding to the chip slump was a warning from CRUS that revenue
would be down due to both lower sales and cancelled orders.
Cirrus makes chips for consumer electronics gear like audio
and video products. They said a wide range of manufacturers
had cancelled orders for chips to make these products. ZRAN,
another maker of these chips fell as well.

It has been a rough two years for chipmakers and the Nasdaq-100
rebalancing on Monday Dec-23rd proves it. These 15 companies
will be dropped from the Nasdaq. AMCC, ATML, CHTR, CNXT, IDTI,
PMCS, VTSS, ABGX, ADRX, CYTC, IMCL, ITWO, PDLI, RATL, SEPR.
Half of them are chip stocks. All of them are previous high
flyers and sold for many times their current values. While I
am at it the 15 stocks being added to the Nasdaq-100 are:
EXPD, ROST, XRAY, LAMR, WFMI, FHCC, PETM, PIXR, FAST, APCC,
CHRW, PTEN, GNTX, HSIC and RYAAY. The Nasdaq-100 is supposed
to represent the 100 largest non-financial stocks on the Nasdaq
stock market. The rebalancing occurs in December each year and
is timed to coincide with the triple witch expiration Friday.

Got your smallpox vaccination yet? Of course you don't but the
airwaves have been full of the news that we could be at risk from
terrorists using the disease sometime in the future. Considering
the risk from actually receiving the vaccination the government is
taking the threat seriously. Still the market appears to have
already contracted it just from the repeated mention in the news.
You can say what you want about earnings, oil and riots but when
you start adding in news about bio-terrorism and rogue nations
trying to acquire nuclear weapons somebody is bound to start
thinking about investing for safety. That appears to be what
is happening. Gold is hitting new five-year highs, treasuries
are up, utilities are up and money market funds saw an influx
of $10 billion in new cash last week. The Fed is watching this
economic plight and trying to float the markets on an ocean of
cash. M2, the indicator of the nations money supply soared by
+$142 billion last week. Interest rates are low and can't get
much lower but the Fed is determined to keep this boat afloat
if it has to buy new presses to print money faster. Inflation
may not be a problem now but stick around a couple years.

The long-term fundamentals, say for December 2003, are excellent
but the outlook for the next 60 days is still rocky. By most
estimates there is between $6 and $7.5 trillion in idle cash
waiting on the sidelines earning minimal interest. This money
will eventually find its way into the markets. There are tax
cuts on the horizon and the Fed is hooked on speed. Bears have
a very limited life expectancy at this point.

Last Sunday I said I expected a small bounce and then another
dip with 8350 as eventual support before the holidays. The
bounce was weak and the dip did not quite reach 8350. Monday's
open could finish that dip. Despite all the negative views I
expressed above I think most of them are already priced into
the market. We know we are going to attack Iraq next year.
We know there will be a recovery in the PC sector eventually.
Remember the much-anticipated second half recovery of 2002?
Well that has now slipped slightly, by about twelve months.
This lack of recovery means the markets rallied off the
October lows a little prematurely and we have to tread
water until the recovery catches up with the markets. We
can still have a holiday rally but there are still some
challenges ahead.

If we are going to see Santa then we should see a change in
the markets early in the week. I would not be surprised to see
one last attempt to test solid support at 8350-8400 on Monday
and then sideways to up from there. The 50 and 100 DMA are at
8408 and should blunt any drop attempt. I would be a buyer of
the market at Dow 8425 with a stop loss at 8250. This would be
to capture any end of year rally and I would sell on weakness
after Dec-26th. Think of it as returning unwanted presents
to spend the money on sale items later.

The long awaited end of year renewal special begins this weekend
and there is wealth of bonuses for readers who elect to lock in
their subscription at the current rate. We will be raising the
rates on Feb-1st so don't delay.

Enter Very Passively, Exit Very Aggressively!

Jim Brown

"I'd be a bum on the street with a tin cup if the markets
were always efficient." - Warren Buffett


=========================
Play-of-the-Day (BEARISH)
=========================
((new tech short))

Lexmark Intl. - LXK - close: 61.93 change: -1.07 stop: *text*

Company Description:
Lexmark International, Inc. is a leading developer, manufacturer
and supplier of printing solutions -- including laser and inkjet
printers, multifunction products, associated supplies and
services -- for offices and homes in more than 150 countries.
Founded in 1991, Lexmark reported more than $4.1 billion in
revenue in 2001. (source: company press release)

Why We Like It:
Shares of Lexmark went on a tear in the aftermath of the
company's third-quarter earnings report, which beat analyst
expectations by 1 cent.  What really got the stock flying was the
three-cent increase in expectations for Q4.  Of course it didn't
hurt that the overall tech sector was also rocketing higher after
the NASDAQ bottomed out in mid-October.  From its own October low
to the relative high of $69.50, LXK tacked on an impressive 58%.
These gains were so impressive, in fact, that some on Wall Street
are questioning whether the stock's price has outstripped its
intrinsic value.  During a blanket downgrade of the entire
computer hardware sector on December 4th, Morgan Stanley singled
out LXK (along with IBM) for trading at "substantial premiums" to
fundamental valuation levels.  Investors seemed to pay a lot of
attention to MWD's comments.  Shares sold off from the relative
highs and spent most of the past week trading under short-term
resistance at $65.00.

The stock gapped lower this morning in response to a report that
indicated that the printer market in Europe (along with the
Middle East and Africa) had declined by 4.6% in the third
quarter.  Shares managed an intraday rebound from the 50-dma at
$60.00, but weren't able to fill in the gap and move back above
previous support at $63.00.  The large volume spike (more than
twice the daily average) indicates that a large amount of
investors were eager to head for the exits.  We expect the
downward momentum to accelerate if LXK breaks below $60.00.  In
addition to violating the 50-dma, this would create a triple-
bottom sell signal on the point-and-figure chart.  Because there
are no clearly-defined support levels directly under the 50-dma,
we think a breakdown could send shares down to the 200-dma
($55.16) in fairly short order.  Our official profit-target will
be placed slightly above this level at $55.26.  We may re-adjust
this target later on to compensate for the rising action of the
200-dma.  We're placing an entry trigger for this paper trade at
$59.97.  If the play is triggered our stop will be placed at
$62.56, slightly above today's high.  Traders willing to give LXK
a little more room to move may want to use a stop just above
$63.00.

Annotated chart - LXK:



Picked on December xxth at $xx.xx <- see text
Results since picked:       +0.00
Earnings Date            10/21/02 (confirmed)

Chart =



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

AAP - Advance Auto Parts - close: 48.22 change: -1.83

WHAT TO WATCH: The entire automotive retailing sector was
pressured over the past two sessions by Autozone's earnings
report, which included weak sales numbers.  Rival AAP has been
hit particularly hard (although not nearly hard as AZO) and on
Friday the stock broke down to multi-month lows.  Shares did see
a strong intraday bounce, but bears may get another shorting
opportunity on a rollover from the $50.00 area.  The August lows
near $44.00 offer a reasonable initial profit-target.

Chart =


---

Adobe Systems - ADBE - close: 25.79 change: -0.08

WHAT TO WATCH: Next week could be pivotal for the software group.
The GSO.X software index fell to a new relative low on Friday as
MSFT plunged below its 50-day and 200-day moving averages.
Sector bulls will be watching for the index to bounce from
support in the 100-102 region.  Should the GSO rally strongly off
this level, ADBE looks like a decent long play.  Shares have been
trading above the rising 50-dma, following a quick decline from
the $30.00 area.  The stock showed good relative strength on
Friday by posting a loss of only eight cents.  The MACD is
beginning to level out near the baseline, indicating that that
shares could begin to move back towards the 200-dma at $28.91.
Entries can be targeted on a move above today's high ($26.60),
but be sure to first confirm that the GSO.X is also trading
strong.

Chart =


---

Costco - COST - close: 28.52 change: -1.04

WHAT TO WATCH: COST came within two cents of setting a new 52-
week low today after Prudential cut the company's profit outlook.
Citing a weaker sales trend, PRU reduced its 2003 EPS
expectations from $1.67 to $1.57 and the 2004 forecast from $1.86
to $1.76.  This came a day after Costco reported earnings and
made some cautious comments about future growth.  Technically,
COST looks like it could extend its recent steep downtrend if
support at $28.21 fails.  A move under this level would open the
door for a test of the 2000 lows near $26.00.  The weekly chart
shows additional support at $22.50 and $20.00.  P-n-f enthusiasts
will note that a trade at $28.00 would create a triple-bottom
sell signal.

Chart =


---

Dominion Resources - D - close: 54.01 change: +1.03

WHAT TO WATCH: Utility stocks have recently shown impressive
relative strength.  The UTY.X utility index posted a gain of 4.1%
this week, despite a 2.4% decline in the Dow.  These appear to be
the result of sector rotation as investors shift money into safer
havens such as gold and utility stocks.  Shares of Dominion are
looking particularly strong after breaking through resistance at
$52.50.  The stock now looks like it could rally up to the 200-
dma at $58.23.  $58.00 is also the location of bearish resistance
on the point-and-figure chart.  Bullish traders can watch for a
pullback to the $52.50 area to provide an entry point.  While
those with an aggressive strategy could think about going long on
a move above $54.05, we think D is due for a small pullback after
posting four consecutive days of gains.

Chart =


---

Intl. Game Tech - IGT - close: 73.12 change: -2.88

WHAT TO WATCH: Shares of this gaming company traded in a narrow
range near $75.00 after topping out at $80.10 in November.
Today's breakdown took the stock to new relative lows, but that's
only one of the reasons that shareholders should be concerned -
IGT also sliced through its 50-dma ($74.29) and created a triple-
bottom sell signal on the p-n-f chart.  The bearish oscillators
are pointing at continued weakness in the near future.  Watch for
a move below support at $72.70 to pave the way for a possible
decline to the $66-$68 area.  Longer-term traders could target a
move to the 200-dma at $64.34.  On a related note, Harrah's (HET)
also looks like a pretty good short in the gaming sector.

Chart =


---

3M Company - MMM - close: 121.77 change: -1.88

WHAT TO WATCH: Indications of a slowdown in the manufacturing
sector have sent MMM lower from resistance at $130-$132.  We'd
been keeping an eye on the most expensive Dow component to see
how it would behave as it approached its converging 100-dma and
200-dma.  Today's breakdown below these moving averages should
have the bulls on guard.  The stock has entered a "fast-move"
region between $112 and $124 and there's no clear support until
$116.  We'd be looking to short a failed rally back to the $123
area.  More aggressive traders could target a move under $121.50.

Chart =


---

Pixar - PIXR - close: 60.18 change: +0.68

WHAT TO WATCH: These days you don't see many four-lettered stocks
trading at multi-year highs.  PIXR powered into breakout
territory on Friday on the strongest volume in over a month.
Interestingly, the company announced in a press release this
evening that PIXR would be added to the NASDAQ-100.  Perhaps some
institutions had advance knowledge of this news.  In any case,
the stock is looking quite strong after moving above resistance
at $60.00.  The uptrending oscillators indicate that this
breakout could have staying power.  PIXR might also trade with an
artificial bullish bias ahead of the December 20th rebalancing,
as fund managers add the stock to their portfolios.  Pulling back
to a weekly chart, there aren't any levels of resistance until
the all-time highs near $65.00.

Chart =


---

Adolph Coors - RKY - close: 61.49 change: -1.25

WHAT TO WATCH: The chart for RKY is looking Ugly, with a capital
"U."  This past week the stock broke below its 50-day, 100-day,
and 200-day moving averages on rising volume.  Shares are sitting
at relative lows with no clear support until $56.00.  Although
RKY might be a good short play at current levels, the most
prudent strategy would be to wait for the stock to retrace some
of the recent losses and then short a rollover near the 200-dma
($63.19).  The p-n-f chart is showing a double-bottom sell
signal.  By the way, BUD seems to be losing its fizz as well.

Chart =


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

CEPH - Shareholders who were looking for the converging 50-dma
and 200-dma to act as support were let down by today's 2.9%
decline.  Shares also fell below psychological support at $50.00.
Short entries could be targeted at current levels, with an
initial profit target near $45.00.

CLE - This retailer is looking weak after sinking below its 50-
dma.  With the RLX.X retail index breaking to multi-weak lows on
Friday, CLE looks like it could fall towards the 200-dma at
$21.39.

MOLX - This NASDAQ-100 component has fallen for five consecutive
sessions.  Although the sell-off hasn't been dramatic, we don't
see any substantial support until $20.00.  The p-n-f chart is
showing a double-bottom sell signal.

NNDS - NNDS is looking pretty extended after gaining more than
30% in just one week.  However, there isn't a whole lot
resistance until the $10.00 area.  Very aggressive traders could
consider long entries at current levels, while others could wait
for a pullback to the 50-dma at $6.88.  Note that the average
daily volume is somewhat light.

PCAR - Shares of this truck manufacturer fell below recent
support at $46.00 on Friday.  The volume reading was the highest
in over a week.  Short-term traders could target a descent to the
rising 50-dma ($43.15), using a move under $45.50 as a bearish
action point.


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

What Good News?
by Steven Price

Looks like that recent consolidation was just a pit stop on the
way to new relative lows.  After a slow week, during which the
Dow set a series of higher lows, but could not manage to break
out to the upside, the downside finally gave in. The sell-off
came in spite of evidence from a falling Producer Price Index
(PPI) that inflation was not a concern and a better than expected
Consumer Sentiment reading of 87.0.

The Consumer Sentiment bounce took the index to its highest level
since August and represented a significant gain from its 9-year
low reading of 80.6 in October.  The expectations component rose
to its highest level since June, giving retailers hope for a
better than expected holiday shopping season.  So far, sales have
reflected anything but a higher degree of confidence, with the
exception of home-related purchases.  However, the news should
still be considered positive and there hasn't been much of that
recently.

The PPI number actually stoked fears of deflation.  While the
economy may not have to worry about prices getting out of line,
the report showed many prices are actually falling, meaning
manufacturers have less pricing power.  This could lead to a
bottom line squeeze, eventually taking a bite out of earnings.
The report doesn't take into account many of the services inputs,
such as the cost of medical care, which has been on the rise.

The market took out relative lows this morning, with the Dow, OEX
and SPX all testing 50-dmas and getting failed rebounds off those
levels.  A mid-day rally looked as though we had finally found a
bottom, with the bounce off those 50-dmas, but the last couple
hours of trading saw a steady sell-off and a breakdown of that
support into the close.  The OEX actually finished below its 50-
dma for the day.  We are now approaching strong support from the
beginning of November that should at least put a temporary halt
to the slide. Combined with a traditionally bullish final couple
weeks of the calendar year, traders should expect some type of
bounce off Dow 8300/SPX 880/OEX 446.

The Nasdaq also got creamed, losing 37.13 and approaching its 50-
dma down at 1345.88.  The index looks to have completed its own
little head and shoulders pattern, but the shoulders at 1425 and
1411 are not well enough defined for me to bet on them. However,
the measuring objective of the pattern would have the breakdown
leading all the way down to 1200, for those interested.

I referred in past articles to the possible formation of a head
and shoulders in the Dow, as well.  If that prediction were to
come true, we are approaching a point at which we can expect a
bounce and the formation of a right shoulder.  It is far too
early to tell if that will be the end result of the recent market
action, but we're about 2/3 into the formation if it does take
place.  What that means is that if we do get a significant bounce
in the near future, traders may want to get long for the ride up
to around Dow 8800.

The chip stocks also saw red today, but stopped short of recent
support at 307 in the Semiconductor Index (SOX).  The recent drop
on December 9 took the index down to 307 and today's drop bounced
at 308, finishing the day at 309.  With previous support at 310
and 300, as well as the 50-dma at 302, there is an awful lot of
congestion in the index and it will likely take a continued move
under 300 to gain downside momentum.  As these stocks tend to
lead the Nasdaq, keep an eye on these support levels before
either getting in short, or playing a bounce on the broader tech
indices. Some of today's sector drop can be attributed to ratings
released this morning. J.P. Morgan said the top three
semiconductor end markets - computing, wireline and wireless
communications - should remain depressed with the possibility of
inventory corrections and pricing pressure through the first
quarter.  It initiated coverage of industry heavyweights Intel
(INTC) and Advanced Micro Devices (AMD) with underweight ratings.
Deutsche Securities also initiated coverage of a host of
semiconductor stocks with sell ratings, including Texas
Instruments and AMD.  However, the firm rated Intel as a buy.
While there was also disagreement between firms over MCHP (JPM-
overweight, DB - sell), the message was clear to investors that
the picture isn't as rosy as Taiwan Semiconductor's recent
guidance increase may have indicated.

After today's drop, it will be hard to simply step in and pick a
bottom.  After last week's slide, it seems the last few days were
just a bear-pennant type reprieve, before today's drop.  If we
are going to bounce, the two most logical levels are the 50-dmas,
which all indices are approaching together, or the late-October/
early-November lows.   If that happens, then don't be too
aggressive in shorting the first failed rally, as we may be
headed for that right shoulder.

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

Market Averages

DJIA ($INDU)

52-week High: 10673
52-week Low :  7197
Current     :  8433

Moving Averages:
(Simple)

 10-dma: 8622
 50-dma: 8408
200-dma: 9113

S&P 500 ($SPX)

52-week High: 1176
52-week Low :  768
Current     :  889

Moving Averages:
(Simple)

 10-dma:  908
 50-dma:  888
200-dma:  973

Nasdaq-100 ($NDX)

52-week High: 1734
52-week Low :  795
Current     : 1005

Moving Averages:
(Simple)

 10-dma: 1052
 50-dma: 1002
200-dma: 1104

-----------------------------------------------------------------
The Semiconductor Index (SOX.X):  The SOX dropped almost 4%
today, after coverage was initiated with negative ratings on a
number of stocks in the sector. J.P. Morgan and Deutsche
Securities disagreed on ratings for Intel and AMD, but other
stocks getting 'SELL' or 'UNDERWEIGHT' ratings were RFMD, TQNT,
ATML and TXN.  JPM also said the top three semi end markets
should remain depressed through the first quarter of 2003. While
this was not news, as many chipmakers have said they do not
necessarily see a recovery anytime soon (most recently Intel),
the group still led the Nasdaq Composite through its recent lows.
It is revisiting support around 300, after testing resistance at
400 just a couple of weeks ago, giving traders little clue as to
its appropriate valuation.  For the time being, traders can watch
support and resistance levels, highlighted in the above article,
for clues as to when we will get a breakdown, or bounce.

52-week High: 657
52-week Low : 214
Current     : 309

Moving Averages:
(Simple)

 10-dma: 331
 50-dma: 302
200-dma: 398

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

Market Volatility

The VIX rebounded on today's broad market sell-off.  However, we
only saw a gain of just over a point, as we are about to head
into the weekend and essentially three days of time decay.  Keep
in mind that if institutions thought we were about to head back
toward the October/July lows, we most likely would have seen a
bigger gain in the VIX, as there would have been many more put
buyers. The VXN actually dropped on the day, in spite of the NDX
and COMPX taking out recent lows and testing the NDX's 50-dma at
1002. This would seem to contradict the day's market action and
lend a less serious tone to today's drop in the techs.


CBOE Market Volatility Index (VIX) = 32.12 +1.31
Nasdaq-100 Volatility Index  (VXN) = 50.92 -0.13

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

          Put/Call Ratio  Call Volume   Put Volume

Total          0.87        467,567       405,748
Equity Only    0.67        357,394       240,328
OEX            1.13         27,405        30,929
QQQ            3.54         23,248        82,191

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

Bullish Percent Data

           Current   Change   Status
NYSE          50      + 0     Bull Confirmed
NASDAQ-100    66      - 4     Bear Alert
Dow Indust.   63      + 0     Bear Alert
S&P 500       63      - 1     Bull Confirmed
S&P 100       64      + 0     Bear Alert

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

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

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

5-Day Arms Index   1.32
10-Day Arms Index  1.42
21-Day Arms Index  1.18
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        928          1888
NASDAQ      974          2233

        New Highs      New Lows
NYSE         46              34
NASDAQ       46              41

        Volume (in millions)
NYSE       1521
NASDAQ     1308

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

Commitments Of Traders Report: 12/10/02

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 2,000 long contracts and 16,000 shorts, leading
to a 30% increase in the net short position. Small traders took
the opposite approach, leaving the net long position unchanged,
while reducing shorts by 9,000 contracts.

Commercials   Long      Short      Net     % Of OI
11/19/02      446,668   480,270   (33,602)   (3.6%)
11/26/02      447,024   488,250   (41,226)   (4.4%)
12/03/02      444,345   487,411   (43,066)   (4.6%)
12/10/02      446,831   503,583   (56,752)   (5.9%)

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
11/19/02      143,070    77,332    65,738     29.8%
11/26/02      155,975    81,962    74,013     31.1%
12/03/02      162,192    82,584    79,608     32.5%
12/10/02      162,115    71,505    90,610     38.8%

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

NASDAQ-100

Commercials saw a small gain to the long side, but left shorts
virtually unchanged.  Small traders increased long positions by
1,300 contracts, while slightly reducing the short side.


Commercials   Long      Short      Net     % of OI
11/19/02       42,074     52,302   (10,228) (10.7%)
11/26/02       43,231     52,425   ( 9,194) ( 9.6%)
12/03/02       43,709     51,977   ( 8,268) ( 8.6%)
12/10/02       44,651     51,716   ( 7,065) ( 7.3%)

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
11/19/02       16,292    10,540     5,752    21.4%
11/26/02       17,574    12,329     5,245    17.5%
12/03/02       13,749     9,869     3,880    16.4%
12/10/02       15,026     9,242     5,784    23.8%

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

DOW JONES INDUSTRIAL

Commercials maintained the status quo, with no significant
changes to positions.  Small traders followed suit, making only
slight reductions to both the long and short side.

Commercials   Long      Short      Net     % of OI
11/19/02       23,535    15,741    7,794      19.8%
11/26/02       20,499    15,015    5,484      15.4%
12/03/02       20,176    15,427    4,749      13.3%
12/10/02       19,953    15,759    4,194      11.7%

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
11/19/02        4,428     8,203    (3,775)   (29.9%)
11/26/02        6,544    10,350    (3,806)   (22.5%)
12/03/02        5,885     9,781    (3,896)   (24.9%)
12/10/02        5,394     9,499    (4,105)   (27.6%)

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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To stop receiving this PremierInvestor.net Newsletter,
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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

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

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

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


Copyright ) 2002  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.
PremierInvestor.net Newsletter          Weekend Edition 12-13-2002
                                                    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:

Net Bulls
  New Bearish Plays:     LXK
  Bullish Play Updates:  MERQ, NVDA
  Bearish Play Updates:  TECD

Stock Bottom / Active Trader
  Bearish Play Updates:  AIG, DLX, HRB

High Risk/Reward
  Bullish Play Updates:  IDPH


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

============
NB New Plays
============

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

Lexmark Intl. - LXK - close: 61.93 change: -1.07 stop: *text*

Company Description:
Lexmark International, Inc. is a leading developer, manufacturer
and supplier of printing solutions -- including laser and inkjet
printers, multifunction products, associated supplies and
services -- for offices and homes in more than 150 countries.
Founded in 1991, Lexmark reported more than $4.1 billion in
revenue in 2001. (source: company press release)

Why We Like It:
Shares of Lexmark went on a tear in the aftermath of the
company's third-quarter earnings report, which beat analyst
expectations by 1 cent.  What really got the stock flying was the
three-cent increase in expectations for Q4.  Of course it didn't
hurt that the overall tech sector was also rocketing higher after
the NASDAQ bottomed out in mid-October.  From its own October low
to the relative high of $69.50, LXK tacked on an impressive 58%.
These gains were so impressive, in fact, that some on Wall Street
are questioning whether the stock's price has outstripped its
intrinsic value.  During a blanket downgrade of the entire
computer hardware sector on December 4th, Morgan Stanley singled
out LXK (along with IBM) for trading at "substantial premiums" to
fundamental valuation levels.  Investors seemed to pay a lot of
attention to MWD's comments.  Shares sold off from the relative
highs and spent most of the past week trading under short-term
resistance at $65.00.

The stock gapped lower this morning in response to a report that
indicated that the printer market in Europe (along with the
Middle East and Africa) had declined by 4.6% in the third
quarter.  Shares managed an intraday rebound from the 50-dma at
$60.00, but weren't able to fill in the gap and move back above
previous support at $63.00.  The large volume spike (more than
twice the daily average) indicates that a large amount of
investors were eager to head for the exits.  We expect the
downward momentum to accelerate if LXK breaks below $60.00.  In
addition to violating the 50-dma, this would create a triple-
bottom sell signal on the point-and-figure chart.  Because there
are no clearly-defined support levels directly under the 50-dma,
we think a breakdown could send shares down to the 200-dma
($55.16) in fairly short order.  Our official profit-target will
be placed slightly above this level at $55.26.  We may re-adjust
this target later on to compensate for the rising action of the
200-dma.  We're placing an entry trigger for this paper trade at
$59.97.  If the play is triggered our stop will be placed at
$62.56, slightly above today's high.  Traders willing to give LXK
a little more room to move may want to use a stop just above
$63.00.

Annotated chart - LXK:



Picked on December xxth at $xx.xx <- see text
Results since picked:       +0.00
Earnings Date            10/21/02 (confirmed)

Chart =



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

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

Mercury Interactive - MERQ - cls: 30.31 chg: -1.19 stop: 28.48

Ouch!  The entire market suddenly turned defensive on Friday as
traders chose not to hold some positions over the weekend due to
the higher geo-political risk.  What does that mean in English?
It means Wall Street is ready and willing to take some money off
the table, we mean a whole lot of it, should the war in Iraq
start soon or the North Koreans continue to thumb their noses at
the U.S. over their nuclear plans.  The NASDAQ fell as did the
GSO software index.  The later was probably due to the big drop
in MSFT, the biggest software component of the group, which will
lead the group and thus affect shares of MERQ.  Shares of MSFT
fell sharply and closed below both its 50-dma and the 200-dma.
Why the drop?  We don't know.  We doubt it was the new Windows
vulnerability warning that came out late Thursday night.  More
likely it could be the rumors that MSFT is interested and a
potential buyer for Borland Software and Rational (RATL)
software.  Yup, the same RATL that IBM just agreed to buy a few
days ago.  What are the odds of IBM and MSFT getting in a bidding
war?  Does MSFT see IBM's move as serious competition?  We can't
answer these questions today but the drag on the sector was felt
in MERQ with a 3.7% drop.  Our play managed to maintain support
at the $30 level but we would be hesitant to jump into new
positions right now.  Let's wait and see what happens over the
weekend and how Wall Street opens on Monday.  If shares begin to
bounce, then evaluate a new position.

Picked on December 11th at $30.27
Results since picked:       +0.04
Earnings Date            10/17/02 (confirmed)

Chart =


---

NVIDIA Corp. - NVDA - close: 13.24 change: -0.54 stop: 12.87

Warning!  Danger Will Robinson!  With apologies to Lost in Space,
the action we see in NVDA is not a good sign for the bulls.  The
market-wide weakness due to nerves over Iraq and N. Korea can be
expected but the NASDAQ is looking rather weak.  Also bleeding
red ink was the SOX.  Helping pull the group lower was JP
Morgan's new coverage of INTC and AMD with "underweight" ratings.
Shares of NVDA fell strongly on the day with a 3.9% loss.  We
issue a warning for traders because the stock is below our
initial trend line.  Remember the trend line from the original
write up just a few days ago?  Shares of NVDA are below it.  It
is possible that the stock could bounce off the $13 level where
it has potential support and this is why we chose to put the stop
loss at $12.87 but we would not initiate new positions at this
time unless we witnessed a strong bounce first.  With the
technical indicators rolling over, NVDA may be doomed to retest
its 50-dma near $12.50 or maybe even $12 before rebounding.
Handle with caution.

Picked on December 12th at $14.53
Results since picked:      - 1.29
Earnings Date            11/07/02 (confirmed)

Chart =


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

Tech Data Corp. - TECD - cls: 27.75 chg: +0.16 stop: 30.71

TECD joined the NASDAQ in Friday morning's sell-off and broke
through short-term support at $27.50.  Although shares reached an
intraday low of $26.75, the bears relented after failing to push
TECD under the multi-week low of $26.72.  Shares traded strong
during the afternoon, seemingly oblivious of the weakening
NASDAQ.  So what can we make of this intraday rebound?  Looking
at the daily chart, we see that TECD traced a lower high for the
fourth straight session.  That's good news for the bears.  The
stock isn't breaking down, but it's encouraging to see that there
aren't a lot of enthusiastic buyers either.  If this trend holds
it should only be a matter of time before TECD is trading at new
lows.  Of course, the bears will first have to deal with that
support at $27.72.  Because we've set an exit target at $25.11,
we would not recommend taking new short positions at current
levels.  Very short-term traders could consider entries on a
breakdown to new lows.

Picked on December 5th at $29.49
Results since picked:      +1.74
Earnings Date           11/25/02 (confirmed)

Chart =




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

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

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

American Intl. - AIG - cls: 59.00 chg: -1.09 stop: 62.76 *new*

Breakdown!  The technical picture for AIG has been deteriorating
for nearly two weeks.  First, shares rolled over from the 200-
dma.  This was followed by a break under the 50-dma ($62.59) and
bullish support on the p-n-f chart (along with a tasty triple-
bottom sell signal).  The bulls managed to prop the stock up
after it initially moved under support at $60.00, but were
quickly turned back at the 50-dma.  This bearish trend led to
Friday's 1.8% decline, which took shares to fresh relative lows.
AIG underperformed both the Dow Jones and IUX.X insurance index
after stair-stepping lower throughout the session.  With the
stock now trading below the $60.00 congestion area, we'll be
looking for shares to continue to retrace the mid-October rally
and fall towards $52.00.  Shorter-term traders can think about
closing positions if AIG bounces from the $55.00 area.  Those
looking for new positions can target another rollover from $60.00
or a move below $58.86, but be aware that the late-September
highs near $58.00 may provide support.  Our stop has been lowered
to $62.76, slightly above the 50-dma.

Picked on December 6th at $60.80
Results since picked:      +1.80
Earnings Date           10/24/02 (confirmed)

Chart =


---

Deluxe Corp. - DLX - close: 41.00 change: -0.99 stop: 44.09

It looks like our patience has been rewarded.  We added this
short play when DLX fell to multi-month lows, just before the
stock rebounded and retraced its late-November losses.  But as we
had hoped would be the case, the 200-dma near $44.00 provided a
ceiling.  The past week has seen shares trend lower after rolling
over from that moving average.  The decline accelerated today
after shares sold off from short-term support/resistance at
$42.00.  Shares underperformed the broader market and moved below
$41.00 for the first time since early August.  The daily chart
shows no clear support until $37.00.  But as much as we'd like to
see a swift decline to that level, the stock will first have to
break below its descending regression channel.  If the current
downtrend remains intact, DLX could fall to psychological support
at $40.00, get a brief pop, and then roll over near $41.50.  A
wholesale violation of the $40.00 level would be decidedly
bearish.

Picked on December 4th at $41.28
Results since picked:      +0.28
Earnings Date           10/17/02 (confirmed)

Chart =


---

H&R Block - HRB - close: 38.76 change: +0.72 stop: *text*

Something's gotta give.  HRB continues to trade sideways under
its 50-dma ($39.67), with the $37.50-$38.00 area providing
support.  The falling action of the 50-dma means that support and
resistance will continue to converge, creating a "pincher"
effect.  Given the long-term downtrend (formed by connecting the
September, October, and December highs), we think shares will
eventually break to the downside.  HRB showed good relative
strength today but wasn't able to move above very short-term
resistance at $39.30.  In the news this afternoon, yet another
class action lawsuit was filed, accusing H&R Block of "issuing
false and misleading statements concerning its business and
financial condition" related to a failure to disclose over 20
previous class action lawsuits.  This might help to push the
stock lower on Monday.  Our bearish action point remains at
$36.98.  We'll use a stop at $40.01 if the play is triggered,
while more conservative traders could use a stop slightly above
$39.00.

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

Chart =




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

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

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

IDEC Pharma. - IDPH - close: 33.43 change: -1.41 stop: *text*

Widespread tech weakness on Friday weighed on the BTK.X biotech
index, which gave back 3.2% after breaking under its 50-dma.
With no fresh news to keep buyers interested, IDPH moved lower
from the $35.00 level and finished with a loss of 4.0%.  Shares
never came close to our entry trigger at $35.60.  The BTK.X
actually set a near-term low after retracing the entire
Wednesday/Thursday rally.  IDPH, however, closed above loose
short-term support at $33.00.  We're willing to give the stock
another day or two to bounce back to breakout territory, but that
probably won't happen if the biotech sector continues to weaken.
A continued pullback on Monday would likely force us to
reevaluate our strategy.  For the time being we'll maintain our
entry trigger at $35.61.  Our stop will be set at $33.24 if the
play is activated.

Picked on December xxth at $xx.xx
Results since picked:       +0.00
Earnings Date            10/16/02 (confirmed)

Chart =





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To stop receiving this PremierInvestor.net Newsletter,
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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

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

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

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


Copyright ) 2002  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.
PremierInvestor.net Newsletter         Weekend Edition 12-13-2002
                                                   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 16th
   - 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 16th
==========================================

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

Symbol  Company               Date           Comment      EPS Est

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

None


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

BBY   Best Buy Co., Inc.      Tue, Dec 17  Before the Bell     0.25
CC    Circuit City Stores Inc Tue, Dec 17  Before the Bell    -0.13
DRI   Darden Restaurants      Tue, Dec 17  -----N/A-----       0.22
IBC   Int Bakeries Corp       Tue, Dec 17  -----N/A-----       0.48
MU    Micron Technology       Tue, Dec 17  After the Bell     -0.23
PIR   Pier 1 Imports, Inc.    Tue, Dec 17  Before the Bell     0.33
RHAT  Red Hat, Inc.           Tue, Dec 17  -----N/A-----       0.01


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

APOL  Apollo Group            Wed, Dec 18  Before the Bell     0.22
ATYT  ATI Technologies        Wed, Dec 18  Before the Bell     0.04
BSC   Bear Stearns            Wed, Dec 18  Before the Bell     1.23
BBBY  Bed Bath & Beyond Inc.  Wed, Dec 18  -----N/A-----       0.23
BMET  Biomet, Inc.            Wed, Dec 18  -----N/A-----       0.26
KMX   CarMax, Inc             Wed, Dec 18  Before the Bell     0.17
FDX   FedEx                   Wed, Dec 18  08:00 am ET         0.79
GIS   General Mills, Inc.     Wed, Dec 18  Before the Bell     0.74
GPN   Global Payments Inc.    Wed, Dec 18  After the Bell      0.35
MLHR  Herman Miller           Wed, Dec 18  After the Bell      0.13
ORCL  Oracle                  Wed, Dec 18  After the Bell      0.08
SCS   Steelcase Inc.          Wed, Dec 18  4:00 pm ET         -0.08
SVU   Supervalu Inc.          Wed, Dec 18  -----N/A-----       0.43
TIBX  TIBCO Software          Wed, Dec 18  After the Bell      0.01
WOR   Worthington Industries  Wed, Dec 18  Before the Bell     0.25


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

COMS  3Com                   Thu, Dec 19  After the Bell     -0.03
CCL   Carnival Corporation   Thu, Dec 19  Before the Bell     0.30
CTAS  Cintas Corporation     Thu, Dec 19  -----N/A-----       0.38
COGN  Cognos                 Thu, Dec 19  After the Bell      0.19
CAG   ConAgra Foods, Inc.    Thu, Dec 19  08:00 am ET         0.46
FDO   Family Dollar          Thu, Dec 19  -----N/A-----       0.32
GS    Goldman Sachs          Thu, Dec 19  Before the Bell     0.97
GUC   Gucci Group NV         Thu, Dec 19  Before the Bell     0.49
JBL   Jabil                  Thu, Dec 19  2:30 pm ET          0.15
LEH   Lehman Brothers        Thu, Dec 19  Before the Bell     0.88
MWD   Morgan Stanley         Thu, Dec 19  Before the Bell     0.75
NKE   Nike                   Thu, Dec 19  After the Bell      0.56
PAYX  Paychex                Thu, Dec 19  After the Bell      0.19
RAD   Rite Aid Corporation   Thu, Dec 19  -----N/A-----      -0.09
SCHL  Scholastic             Thu, Dec 19  After the Bell      1.91
SLR   Solectron              Thu, Dec 19  After the Bell     -0.02
TEK   Tektronix Inc.         Thu, Dec 19  After the Bell      0.09


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

None


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

Symbol  Company Name              Ratio    Payable     Executable

CCFH    CCF Holding Co.           3:2      Dec. 19th   Dec. 20th


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

Despite the holiday season, which is typically a bullish time
for Wall Street, investors will have to watch out for those
corporations who will be warning about their Q4 earnings numbers.
This Tuesday we have the CPI, Housing Starts, and Industrial
production numbers.  Check the calendar for additional reports
this week.

==============================================================
                       -For-
Monday, 12/16/02
----------------
None

Tuesday, 12/17/02
-----------------
CPI (BB)                Nov  Forecast:   0.2%  Previous:     0.3%
Core CPI (BB)           Nov  Forecast:   0.2%  Previous:     0.2%
Housing Starts (BB)     Nov  Forecast: 1.693M  Previous:   1.603M
Building Permits (BB)   Nov  Forecast: 1.700M  Previous:   1.772M
Industrial Prduction(DM)Nov  Forecast:   0.2%  Previous:    -0.8%
Capacity Utilization(DM)Nov  Forecast:  75.4%  Previous:    75.2%

Wednesday, 12/18/02
-------------------
Trade Balance (BB)      Oct  Forecast: -$37.0B Previous:  -$38.0B


Thursday, 12/19/02
------------------
Initial Claims (BB)   12/14  Forecast:    N/A  Previous:     441K
Leading Indicators (DM) Nov  Forecast:   0.3%  Previous:     0.0%
Philadelphia Fed (DM)   Dec  Forecast:    5.3  Previous:      6.1
Treasury Budget (DM)    Nov  Forecast:-$50.0B  Previous:  -$54.3B

Friday, 12/20/02
----------------
GDP-Final (BB)           Q3  Forecast:   4.0%  Previous:     4.0%
Chain Deflator-Final(BB) Q3  Forecast:   1.0%  Previous:     1.0%


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

NCEN    New Century Fincl          23.35     +1.26
WYE     Wyeth                      38.39     +0.74
AEE     Ameren Corp                41.95     +0.66
NNDS    NDS Group                   8.40     +0.57

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

MEE     Massey Energy              10.65     +1.18
TXU     TXU Corp                   17.55     +2.06

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

MATK    Martek Biosciences         23.37     +2.85
SKE     Spinnaker Exploration      24.10     +1.18
FOE     Ferro Corp                 25.42     +1.01
BTU     Peabody Energy             28.35     +1.45
-------------------------------------------
Breakout to Downside (Stocks over $20)
-------------------------------------------
Ticker  Company Name               Close     Change

MUR     Murphy Oil                 82.36     -3.34
PII     Polaris Industries         61.01     -2.89
TTWO    Take-Two Interactive       23.36     -2.53
SPW     SPX Corp                   37.18     -4.47
PLB     American Italian Pasta     35.42     -1.13
CERN    Cerner Corp                28.19     -3.59
RYAAY   Ryanair Holdings           41.15     -1.35

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

AHC     Amerada Hess               56.40     -1.46




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