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Daily Newsletter, Monday, 12/16/2002

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PremierInvestor.net Newsletter                 Monday 12-16-2002
                                                  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:      Ho Ho Ho
Watch List:       BSTE, MTG, NAV, NVLS, OIH, and more...
Play of the Day:  Follow the Leader


******************************************************************
MARKET WRAP  (view in courier font for table alignment)
******************************************************************
12-16-2002                  High    Low     Volume Advance/Decl
DJIA     8627.40 + 193.69 8627.54 8434.74    1497 mln  1223/254
NASDAQ   1400.33 +  37.91  1400.49 1365.66   1375 mln  1018/342
S&P 100   463.26 +  11.45  463.27  451.81    totals    2241/606
S&P 500   910.40 +  20.92  910.42  889.48
RUS 2000  394.90 +   6.92  394.90  387.98
DJ TRANS 2359.00 +  40.53 2359.65 2318.04
VIX        29.98 -   2.14   32.73   29.83
VIXN       49.84 -   1.08   52.15   48.81
Put/Call Ratio 0.98
******************************************************************


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

Ho Ho Ho
by Steven Price

Did Santa Claus come early?  It certainly appeared that way, as
we got a broad market rally heading into the year-end stretch.
We have seen a historical up trend in the final weeks of trading
in recent years. However, after Friday afternoon's sell-off,
traders were left doubting whether we would see a repeat, of if
the economy had been crippled to the point of no return.

We got an intraday bounce off of the 50 day moving averages in
the SPX, Dow and OEX on Friday, which would be a logical point
for an end of year rally to begin.  That being said, those
rallies looked weak, as they rolled over and headed south into
the close.  However, with today's action, the market appears as
though it may be ready for that end of year rally, as it
coincides with a bounce point that came after an extended sell-
off.  Certainly if we had continued to drop through those 50-dmas
today, there was additional support not far below, at the late-
October, early November lows. However, if we can break above last
week's highs, we may not get another look at those levels before
January.   Last week's highs coincide closely with point and
figure reversal levels in the Dow and OEX, while the S&P 500
reversed itself today. The PnF reversal level in the OEX of 464
is just above the December 11 high of 463.87.  The Dow PnF
reversal level of 8600 was hit today and comes close to the
December 11 high of 8625.  The SPX reversed at 905 today, but
still has that December 11 resistance of 910 to deal with. The
high that day was 909.94.    If we can break through those
levels, we may see another test of Dow 8800, which coincidentally
would appear as a possible right shoulder in a new bearish head
and shoulders formation.  The last time that pattern appeared to
be forming, we instead got a failed right shoulder and big rally
up to 9043 in the Dow.  So this time around I'll wait for another
shoulder and a neckline break before declaring that the sky has
fallen. The skinny on today's action is that we certainly ended
toward the high end of the recent range, but have yet to break
resistance and the pattern of lower highs.

Chart of the Dow


Chart of the SPX


Point and Figure chart of the Dow


Point and Figure chart of the SPX


A look at the tech indices' point and figure charts, however,
paints a different picture.  Those indices are actually still in
a bullish column of "X" and bounced above their downward reversal
levels.  The NDX would have reversed down on a trade of 1000, yet
reached a low of 1005 before reversing up today. The Nasdaq
Composite would have reversed into a bearish column with a trade
of 1350, but bounced from 1362.

Chart of the NDX


Chart of the COMPX


The chip stocks, which tend to lead those tech indices, have been
range bound for the last several days, with the Semiconductor
index (SOX) finding a top at 330 and a bottom at 307.  Today's
bounce also put it in the top end of that range, but never really
tested resistance.

There wasn't any official economic data, but we did get some
industry signals from which to draw inferences about the economy.
First was news from Wal-Mart that sales last week were once again
at the low end of its expectations. This has been a trend ever
since the one-day revenue record set the day after Thanksgiving.
That was most likely a result of the late Thanksgiving holiday
and has been shown to be an aberration ever since. Federated
declined to give sales results for last week, suggesting it was
too early to make a prediction with a high percentage of sales
still to come before Christmas. J.C. Penney (JCP) actually posted
decent numbers, continuing its recent turnaround.  However, JCP's
same store sales are still only predicted in the low single
digits and it is forecasting a 20% decline in catalog sales.
Although I've mentioned this before, I think it is worth
mentioning again - the late Thanksgiving pushes a higher
percentage of sales toward the last two weeks before Christmas,
when aggressive discounting digs into profits.  My weekend trip
to the largest mall in the Denver area revealed extreme
markdowns, which are likely to eat into the retailers' bottom
lines.  If the same store sales numbers are already poor, then
I'd be looking for puts in the sector at the tail end of the year
if we get a rally.   The earnings numbers should be disappointing
when they are released around February and I'd probably look for
puts out to March, IF we get the end of year run.

That doesn't mean I'd be shorting every stock in the sector, as
the home-furnishing retailers still look strong.  Last week's
retail sales data showed that while mall-type stores saw sharp
sales declines, furniture and hardware stores saw significant
increases.  This is consistent with housing data that shows that
while the housing market may be slowing, it still remains strong.
Today's release of the Homebuilders index of housing activity
came in at 65, which is the highest level since November 2000.
That tells us to concentrate short activity on stocks that are
not tied to this still strong area of the economy.  One other
factor to consider is the credit portfolio of many large
department stores.  Sears (S) took a beating earlier this year
when it revealed huge losses in its credit card division, due to
under-performing accounts.  We got another red flag over the
weekend regarding similar problems for Target (TGT).  Barron's
reported this weekend that the company is seeing rising defaults
at its credit card operation.  Right now TGT earns a 4% return on
its credit card portfolio, which is higher than most credit card
companies. Those card companies see a return of around 1.5% and
if TGT's portfolio was reduced to similar returns, it could shave
as much as $0.15 per share from its earnings for 2003.   During
the fall, we saw the credit problem taking a bite out of both
small and large banks, as companies that didn't make it through
tough economic times defaulted on business loans.  Last week, we
got some comments regarding high net worth individuals suffering
the same fate.  With the Sears problem highlighted previously,
this may be an issue that continues to poke its head out of the
sand as unemployment continues at high levels and individuals
that hold store credit cards get further behind on payments. Many
stores have pushed these cards hard, offering credit to lower
income individuals in an effort to boost sales. The higher
interest rates looked like a great risk/reward scenario, but
appear to have caught up to the issuers, since high interest is
only profitable when cardholders actually make payments.   The
Retail Index (RLX.X) actually finished up on the day, benefiting
from the rising tide and suggesting the results weren't quite as
bad as expected.  Still, I'll be watching that rising tide for
short opportunities in the sector.

The Market Volatility Index (VIX) certainly indicated that option
traders are growing more bullish in the near term.  As we embark
on expiration week, the VIX calculation discounts December
options and shifts the calculation to January and February.
Those January and February options lost some relative value
today, as the VIX broke down below 30 for the first time since
December 2.  While some analysts use this reading as a contra-
indicator, the 2.14 -point drop reflects a drop in the level of
downside fear currently in the market.  As technical resistance
levels are taken out and we head into a traditionally bullish
time of the year, we can expect this number to continue to drop
if today's rally holds.  One other factor to keep in mind is that
a lack of trading will also lower the number, and today's light
volume (1.2 billion shares NYSE/1.4 billion Nasdaq) could also be
a contributor.

Now that we've seen some bullish signals on the point and figure
and daily charts, it looks like the near term trend is up.
Tomorrow's economic data, which includes CPI, housing starts,
industrial production and capacity utilization, could throw a
wrench in that prediction, since we had no data today to support
the rally.   However, from a technical standpoint, we have
certainly cleared out some barriers to the formation of that
right shoulder I referred to above. Traders can feel bullish for
the time being, but that time being may still be pretty short.


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

Biosite - BSTE - close: 33.80 change: +2.39

WHAT TO WATCH: Like a coiling spring, shares of BSTE traded in an
increasingly narrow range in early December.  All that built-up
tension was released today, when shares exploded to new 52-week
highs.  This 7.6% gain was accompanied by the strongest volume in
almost a month.  With no apparent news to explain these gains, it
looks like a simple case of short-covering.  Shares actually
traded to a high of $35.06 today, so buying a breakout to new
highs might not be the best strategy for playing BSTE.  Rather,
we'd prefer to wait for a pullback to the $33.00-$33.50 area
before taking any positions.  Although the p-n-f chart is
currently showing a bullish count of $52, short-term traders will
probably want to aim for a move to the $38-$40 region.




---

MGIC Investment Corp. - MTG - close: 43.14 change: +1.65

WHAT TO WATCH: This insurance stock has pulled back to an
ascending trend of higher lows on the daily chart, which roughly
coincides with the 50-day and 200-day moving averages.  We think
MTG has a good shot at retesting the relative highs near $47.50
if the bulls can dispatch short-term resistance at $43.50.




---

Navistar Intl. - NAV - close: 24.45 change: +0.95

WHAT TO WATCH: The bears piled on NAV after it rolled over from
the 200-dma earlier this month.  Now that shares have bounced
from the 50-dma ($23.13), speculative bulls might want to think
about going long.  The stock traded higher today, despite
Friday's news that the company would lay off 250 employees at one
of its Ohio truck plants.  NAV would offer an acceptable
risk/reward ratio at current levels, using a stop just under the
relative low of $22.77.  Short-term traders could target a move
to the $28.00 area.




---

Novellus Systems - NVLS - close: 31.31 change: +2.07

WHAT TO WATCH: Lately it's been tough to get a feel for the chip
sector.  The SOX.X has basically been rangebound for one week,
with support at 307 (slightly above the ascending 50-dma) and
resistance at 330.  Only savvy daytraders have been able to take
advantage of this sideways movement.  But if the index finally
does break to the upside, NVLS looks like a good bullish
candidate on a move above $31.55.  Shares outperformed the SOX.X
with a 7.0% gain today.  This formed a bullish engulfing
candlestick on the daily chart.  The reversing oscillators
indicate that NVLS could extend these gains and retrace the steep
early-December decline.  The 200-dma at $35.51 would be a
reasonable short-term profit target.




---

New York Times - NYT - close: 45.30 change: -0.22

WHAT TO WATCH: The New York Times has often been accused of
having a liberal bias.  While that's up for debate, there's no
disputing the bearish bias that has gripped NYT over the past six
weeks.  Shares are trading near relative lows after trending
lower from the $50.00 area.  Last week's news of an improved
newspaper ad outlook for 2003 wasn't enough to keep the stock
above solid resistance at the 50-day and 200-day moving averages
near $47.50.  NYT is a relatively slow mover.  Extrapolating the
current downtrend, shares would reach the $41.00 area by late-
January/early-February.  Those with a compatible trading strategy
could think about opening short positions on a breakdown below
$45.00.




---

Oil Service HOLDRS - OIH - close: 61.27 change: +1.82

WHAT TO WATCH: The ongoing general strike in Venezuela has sent
the price of oil soaring to multi-month highs.  Crude oil futures
(cl03f) spiked to $30.00 on Monday after opponents of Venezuelan
President Hugo Chavez said they had no intentions of ending the
labor stoppage, which is in its 15th day.  With the fifth-largest
oil exporter producing a mere fraction of its normal output, the
prospect of reduced supply has given oil bulls the upper hand.
This South American turmoil has added to an oil market that's
already dealing with the combustible situation in the Middle
East.  Colin Powell said today he was "skeptical" of the 12,000-
page weapons document that was submitted by Iraq last week.
While this stance doesn't come as a surprise, it effectively
removes the possibility that the weapons document would avert
war.  Overall there are a lot of catalysts to push oil higher in
the near-term.  The Oil Service HOLDRS are approaching breakout
territory after moving through the 200-dma at $59.78.  Glancing
at the daily chart, OIH looks like it could reach the $67.00 area
if shares move above $62.00.  We actually gave strong
consideration to these HOLDRS as a long play tonight, but weren't
able to justify the risk.  We'd hate to give the OIH a tight
stop-loss, only to have the play pull back to its ascending trend
(near $58.00).  On the other hand, using a stop at this level
would not provide an acceptable risk/reward setup.  Also, the 10-
minute chart for crude futures is looking pretty extended.  We'd
prefer to see some consolidation of today's move before taking
long positions.  However, traders who are willing to give the OIH
a short leash could think about going long on a breakout above
$62.00.




---

Tiffany & Co. - TIF - close: 26.54 change: +0.97

WHAT TO WATCH: As a purveyor of expensive jewelry, Tiffany may be
less susceptible to a weak economy than most other retailers.
The continued strong sales of luxury cars show that many high-
income consumers still have plenty of discretionary income.  What
caught our eye about TIF is the way shares rebounded from the 50-
dma ($26.23) on Monday, leaving the two-month trend of higher
lows intact.  This bounce came on the strongest volume in two
weeks.  Long entries could be evaluated on a move above today's
high $26.60, with a stop just under $25.50.  We'd be targeting a
rally to the $29-$30 area.  The p-n-f chart shows bearish
resistance at $30.00.




---

Waters Corp - WAT - close: 20.96 change: +0.81

WHAT TO WATCH: Shares of this scientific instrument manufacturer
gapped lower by more than 15% last Friday after the company said
a reduction in new orders had resulted in lower expectations for
the fourth quarter.  Waters reduced its EPS forecast from $0.38-
$.40, compared to the previous guidance of $0.46.  Shares bounced
back on Monday with a 4.0% gain.  Although the fundamental
weakness may scare away some potential investors, we like how WAT
has started to fill in its gap after successfully testing
psychological support at $20.00.  Aggressive traders can consider
long positions on a pullback to that level, or alternatively, on
a move above $21.05.





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

Mercury Interactive - MERQ - close: 31.73 change: +1.42 stop: 28.48

Company Description:
Mercury Interactive, the leading provider of software and
services that optimize automated business processes, delivers a
complete, integrated family of enterprise testing, production
tuning and performance management solutions that enable customers
to optimize business processes and maximize business results.
(source: company press release)


- ORIGINAL WRITE UP: December 10th, 2002 -

Why We Like It:
Software bulls haven't had much to cheer about over the past
week. Pressured by a weakening NASDAQ, the GSO.X moved steadily
lower after it spiked above 120 on December 2nd. The subsequent
breakdown below the 200-dma sent the software index plummeting
towards the 50-dma at 100. Now that the GSO has started to
rebound above this level of support, it looks like the short-term
downtrend may have come to an end. Sector behemoth MSFT is also
above support at its converging 50-day and 200-day moving
averages. This should help to put a floor under the software
group. We're picking MERQ as a bullish sector play because of the
way shares have pulled back to support at the 200-dma. The stock
leveled out at this moving average after a rapid decline from the
relative high of $35.68. The company's CEO commented this weekend
that he expected the company's annual sales to grow to $1 billion
over the next 3-5 years. By contrast, reported revenue for the
first nine months of 2002 has ticked in at $282 million. While
that bullish forecast hasn't led to any explosive upside
movement, it seemed to effectively halt the two-week decline.
Shares outperformed both the NASDAQ and GSO.X on Tuesday after
successfully testing the 200-dma ($28.97). The daily stochastics,
which are just beginning to reverse from oversold levels, offer
technical encouragement for the bulls. With no significant levels
of overhead resistance, we think MERQ could quickly reach the
$35.00 area. Our action point to enter this play will be at
$30.27, one cent above Friday's high. If we're triggered our stop
will be placed at $28.48, slightly under today's low. This will
set up a risk/reward ratio of better than 1:2. Traders willing to
give MERQ a little more breathing room could use a stop just
below $28.00.

- Most recent update: December 13th, 2002 -

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.

- Play-of-the-Day Comments: December 16th, 2002 -

As goes Microsoft, so goes the software group.  That's not always
the case, but more often than not the performance of Mr. Softee
dictates which way the sector moves.  On Friday MSFT was looking
awfully weak after breaking below both its 50-day and 200-day
moving averages.  The software index responded in kind, moving
lower to retest short-term support near 103.  MSFT recouped its
losses on Monday, leading to a nice rebound for the GSO.X.
Sector bulls can be pleased with the bounce from support and the
50-dma at 102.63.  Staggered resistance at 108 and 110 might
present a challenge, but generally today's gains are a positive
sign for this long play.  MERQ also pulled back to support at
$30.00, which had previously acted as resistance.  The subsequent
rebound from this level, combined with the rising oscillators,
paint a bullish technical picture.  New entries can be targeted
on a move above $32.00.  This would open the door for a possible
test of the multi-month highs near $35.50.

Picked on December 11th at $30.27
Results since picked:       +1.46
Earnings Date            10/17/02 (confirmed)







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DISCLAIMER
=================================================================

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

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

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Copyright ) 2002  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.
PremierInvestor.net Newsletter                  Monday 12-16-2002
                                                   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:

High Risk/Reward
  Play Comments:         IDPH

Split Trader Stock Splits
  Split Announcements:
                         FRX:  2-for-1 Split Announcement
                         MNTR: 2-for-1 Split Announcement


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)


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

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

Play Comments
-------------

IDEC Pharma. - IDPH - close: 33.93 change: +0.50 stop: *text*

IDPH gave a nice intraday reversal today after bouncing from
$32.00, while the bullish MACD crossover is a sign of technical
strength.  We're expecting similar volatility tomorrow.  On
Tuesday an FDA advistory panel will meet to discuss whether
Bexxar, an experimental cancer drug by Corixa (CRXA) and
Glaxosmithkline, is "safe and effective."  This drug is widely
seen as a rival to one of IDEC's drugs.  Thus, an FDA approval of
the CRXA drug will probably put some short-term selling pressure
on IDPH.  On the same token, a rejection would send IDPH lower.
At this point its unclear when the FDA decision will be
available.  If it's out before the market then we're likely to see
some gapping action in IDPH.  A gap lower won't pose a problem
because our entry trigger at $35.61 hasn't been
reached.  On the other hand, we don't want to chase IDPH if it
get a large upward gap.  With this in mind, we've placed a limit
on our entry range: This play will not be activated if IDPH gaps
above $36.00.  We'll re-assess our strategy on Tuesday evening
after the FDA decision is made public.






=================================================================
Split Trader Stock Splits (ST) section
=================================================================

Split Announcements
-------------------

Forest Labs Sets 2-for-1 Stock Split After Strong Multi-month Rally

Prior to the opening bell this morning, Forest Laboratories (NYSE:
FRX) announced that its Board of Directors had authorized a 2-for-
1 stock split.

The split will be payable on January 8, 2003, to shareholders of
record on December 23, 2002.

Today's announcement comes after a powerful uptrend that carried
FRX from $70 to $110 in less than three months.  On December 6th
the stock gapped lower Forest Labs said approval of its drug
pressure medication lercanidipine would be delayed for at least
two years.  FRX is currently trading near the top of the gap, with
additional overhead resistance at the 50-dma near $100.00.

Shares closed at $96.95 on Friday.  For a current quote, click here:

http://user.financialcontent.com/pin1/quote.cgi?account=pin1&ticker=FRX

About the company
Forest Laboratories develops, manufactures, and sells ethical
pharmaceutical products that are used for the treatment of a wide
range of illnesses. Forest Laboratories' growing line of products
includes: Lexapro(TM), indicated for the treatment of major
depressive disorder; Celexa(TM), an antidepressant; Tiazac., a
once-daily diltiazem, indicated for the treatment of angina and
hypertension; Benicar(TM), an angiotensin receptor blocker
indicated for the treatment of hypertension; and Aerobid., an
inhaled steroid indicated for the treatment of asthma. (source:
company press release)

---

Mentor Corporation: 2-for-1 Stock Split

Mentor Corporation (NASDAQ: MNTR) announced before the market
opened this morning that its Board of Directors had declared a 2-
for-1 stock split.

The split will be payable to stockholders of record on December
31, 2002, with an expected distribution date of January 17, 2003.

This represents the fifth split since Mentor stock began trading
in 1970.  MNTR has been trending higher ever since it bottomed out
at $13.00 in the second half of 2000.  Shares have nearly doubled
from the 52-week low of $19.50 and recently pulled back to the
ascending 50-dma at $38.55.

MNTR closed at $38.65 on Friday.  For a current quote, click here:

http://user.financialcontent.com/pin1/quote.cgi?account=pin1&ticker=MNTR

About the company
Mentor Corporation develops and manufactures specialized medical
products, which it markets throughout the world. (source: company press
release)


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

SBC     SBC Communications         27.13     +1.38
FRE     Freddie Mac                60.37     +0.90
FE      FirstEnergy Corp           32.76     +0.76
DTE     DTE Energy                 46.20     +0.77
PRX     Pharmaceutical Resources   28.48     +0.82

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

GRP     Grant Prideco              12.33     +1.18
IMI     Sanpaolo IMI               14.40     +1.31

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

WFT     Weatherford Intl.          43.62     +1.72
HSP     Hispanic Broadcasting      23.02     +1.42
PIXR    Pixar                      61.42     +1.39
BSTE    Biosite Inc                33.80     +2.39
BCS     Barclays ADR               25.70     +2.10
-------------------------------------------
Breakout to Downside (Stocks over $20)
-------------------------------------------
Ticker  Company Name               Close     Change

                             

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

KWK     Quicksilver Resources      23.05     -0.78
NAVG    Navigators Group           24.71     -0.64




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

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Copyright ) 2002  PremierInvestor.net. and
The Premier Investor Network.
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DISCLAIMER

Option Investor Inc is neither a registered Investment Advisor nor a Broker/Dealer. Readers are advised that all information is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor is it to be construed as a recommendation to buy, hold or sell (short or otherwise) any security. All opinions, analyses and information included herein are based on sources believed to be reliable and written in good faith, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. In addition, we do not necessarily update such opinions, analysis or information. Owners, employees and writers may have long or short positions in the securities that are discussed.

Readers are urged to consult with their own independent financial advisors with respect to any investment. All information contained in this report and website should be independently verified.

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