Option Investor
Newsletter

Daily Newsletter, Friday, 12/27/2002

HAVING TROUBLE PRINTING?
Printer friendly version
PremierInvestor.net Newsletter          Weekend Edition 12-27-2002
                                                    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:      Traders Return Stocks Purchased in November
Play-of-the-Day:  Exhausted Bulls
Watch List:       AHC, HIG, IBM, PVN, SNPS, and lots more!
Market Sentiment: South for the Winter

******************************************************************
MARKET WRAP  (view in courier font for table alignment)
******************************************************************
       WE 12-27        WE 12-20        WE 12-15        WE 12-06
DOW     8303.78 -208.22 8512.01 + 78.16 8433.85 -211.92 -250.32
Nasdaq  1348.46 - 14.59 1363.05 +  0.63 1362.42 - 60.02 - 56.30
S&P-100  443.06 - 12.40  455.46 +  3.65  451.81 - 12.61 - 14.43
S&P-500  875.42 - 20.34  895.76 +  6.28  889.48 - 22.75 - 24.08
W5000   8305.63 -169.60 8475.23 + 48.97 8426.26 -202.90 -217.52
RUT      384.16 -  2.72  386.88 -  1.10  387.98 -  8.74 -  9.64
TRAN    2291.66 - 32.56 2324.22 +  5.75 2318.47 - 70.34 + 28.19
VIX       34.15 +  2.68   31.47 -  0.65   32.12 -  0.56 +  1.60
VXN       46.71 -  1.80   48.51 -  2.41   50.92 -  1.36 +  2.80
TRIN       3.60            0.66            1.34            1.11
Put/Call   0.94            0.88            0.87            0.91
******************************************************************

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

Traders Return Stocks Purchased in November
by Jim Brown

Traders may have returned stocks Friday for cash but the bargain
hunting was confined to the malls. Market volume was very low
at only 1.8 billion across all markets but 1.5 billion of that
was down volume. Considering the holiday period is normally
bullish there is a definite trend change in progress.

Dow Chart - Daily

Nasdaq Chart - Daily


Friday began with another surprising economic announcement.
New home sales soared to a record annual rate of 1,069,000 and
well over consensus estimates. This +5.7% bounce caught everyone
off guard considering mortgage applications were down significantly
on Thursday. On a deeper look the internals showed that most of
the gains came from the Midwest with a sharp -26% decline in the
Northeast and a -4% decline in the West. Sales rose +41% in the
Midwest and only +2.4% in the South. Inventories fell to a 3.8
month supply due to a flurry of price cutting. Median home prices
fell -6.5% as builders competed to sell excess inventory before
mortgage rates begin to rise. The median home price fell from
$191,900 in June to $167,300 in November. With pricing power
falling the stocks of the major homebuilders also were knocked
for a loss. The additional sales obviously came as the result
of strong incentives and is not something we should expect to
continue.

The Conference Board help Wanted Index remained at 40 in November
for the second consecutive month. This is the low for the year,
very close to a historic 40 year low, and indicates there has
not been any surge in help wanted ads that would indicate a
recovery in progress. If there is a recovery in progress it is
obviously a jobless one and many analysts think this could
continue until the 2H of 2003. Several high profile analysts
are now expecting unemployment to go as high as 6.5% before the
economy recovers. The nonfarm payroll report for December will
be delayed by the holiday to Jan-10th.

The positive home sales report only managed to hold up the
market for a very few minutes. Other factors quickly came
into play and the descent began. North Korea ordered the IAEA
inspectors to leave the country as they prepared to begin
nuclear work. They are currently thought to be moving 1000
plutonium fuel rods back to the reactor complex every day.
Scientists thought North Korea was only a couple months away
from making a bomb when the last treaty was brokered. Since
North Korea recently admitted they never quit their bomb
making efforts like they had agreed eight years ago the risk
is now that they have the capability and only need to extract
the plutonium to complete the weapons. This means within 60
to 90 days they can have those weapons in their arsenal. This
overt "in your face" threat to go nuclear is a wildcard the
markets are not prepared to deal with.

Add to this problem the news of the attack in Grozny, which
could have killed as many as 200, when suicide bombers drove
truck bombs into a government building. This is not a problem
for the world as it is more of a civil war but it was just
one more negative news event.

Oil prices spiked to $32.72 and will be much more of an impact
to the markets than the Russian civil war. Most investors think
the Iraq war will impact prices but they are wrong. Iraq is
only pumping 400,000 barrels a day, which is down from millions
a day. The US has not used any Iraq oil for over a year. The
real problem is Venezuela and there does not appear to be any
resolution in sight. The US imports 14% of its oil from Venezuela
and that pipeline has been shut off. This is the same amount as
we import from Saudi Arabia. There will be additional purchases
from other countries but the price of oil is going up. For
every $1 increase it represents a monthly $7 billion undeclared
tax on US consumers. Every recession since 1970 has been
preceded by a large spike in oil prices. This is the kind of
news that makes investor nightmares.

The lack of retail sales continues to make headlines with the
official estimates falling to only +1.5% sales gains for the
season. This is the lowest sales growth since 1970 and means
the profit forecast for retailers is grim. There is still
hope by some that the returns and post holiday discounts will
help lift the numbers but reports from the malls are very
discouraging.

Adding to bearish investor sentiment was the call up of another
25,000 troops to go to Iraq. This makes over 150,000 officially
called up but there was as many as 60,000 in the area before
the build up "officially" started. 4,000 marines were put on
alert and told to prepare to leave. Orders were issued to put
four or more carrier battle groups in the oceans around Iraq
by Jan-27th. Orders were given to begin moving aircraft from
US locations to attack launch points in the area. The intent
is clear. The pressure is building on Saddam to come clean or
face the consequences with a Jan-27th deadline. This is the
date the inspectors have to formally report to the UN on the
status of the search. The most recent news from their spokesman
was Iraq had failed to comply with the resolution. They have
not claimed to have found any weapons and the weapons they
already knew about have disappeared. Considering Saddam had
years to move/hide them I am not surprised. 250,000 troops
are expected to be in theater before Feb-1st so investors
know there is more bad news coming. The US does not have near
the consensus of opinion this time and there are going to be
dissenters at the UN. The current indications are that the US
will attack regardless of the opposition and that could cause
grave global repercussions. Investors flight to gold and bonds
is increasing with gold hitting $349 on Friday and a five year
high. The dollar fell again on the world markets as Asian and
European investors shifted their positions.

Volume on the NYSE was the second lightest day of the year
with Thursday being the lightest. 83% of the volume across
all the US markets was down volume. While there was no rush
to the exits it was a steady procession. Just because it was
an orderly exit does not mean investors should not panic. The
Dow closed only 3 points above 8300 and the lowest close since
Oct-17th. Make no mistake, this is a critical area for the
markets. Serious technical damage has been done and there is
only the bare minimum of support between us and disaster. By
disaster I am speaking about a move to 8127 and the 50%
retracement level or even lower to 8000 or below. A break
below 8000 sets up a possible retest of the October lows at
7200.

The Dow is on track to post the worst December since 1931
and the Nasdaq will post its first three down years in a
row ever. The Dow has lost -1717 points or -17% for the
year. The Nasdaq is even worse with a -602 point loss and
a -31% drop. Despite these numbers there are still some
significant problems in our immediate future. There will
be a flurry of earnings warnings over the next three weeks.
Because of the holidays the January warnings period is
normally compressed into the first two full weeks of the
year instead of stretched out over 4-5 weeks. This means
we could get a serious dose of bad news in a short period
of time. As is normally the case the COT report is showing
the retail traders lined up on the wrong side of the playing
field. On the Nasdaq, commercial traders increased their
net short positions by 600% and small traders just posted
their most bullish position of the year at a 3:1 net long.
Retail traders are clearly betting on the typical holiday
tech bounce and commercial traders are happy to take those
bets.

I see considerable risk over the next three weeks. I have
been telling readers for three weeks I expected a drop after
Christmas and it appears that drop is underway. There is a
significant chance that we will see a bounce on Monday simply
because of the oversold conditions. The TRIN closed on Friday
at 3.60 which is extremely bullish. It is an indicator of
very oversold conditions and is powered by advancing/declining
volume. At this level the indicator typically predicts a very
quick bounce to equalize pressure. With much of Friday's drop
related to weekend event risk that bounce could be traders
coming back into the market on Monday. However, the oversold
conditions can be relieved very quickly with a very small
spike so I would not look to it for salvation. I would look
to short any real bounce over the next week. I believe the
earnings warnings, the increasing buildup in Iraq and the
increasing noise out of North Korea will weigh heavily on
trading until companies begin announcing real earnings the
week of Jan-13th. To put it bluntly, we are entering a
period where negative news is likely to outweigh fundamentals
and the path of least resistance is down.

I will leave you with the bright side. I would be very
surprised if the current weakness will last much longer.
Looking at the problems long term provides much more hope.
The Iraq problem will go away once the shooting starts. There
are considerable indications the Iraqi army will evaporate
once the war begins. Privately the Iraq citizen would
love to see Saddam depart. Want proof? The Iraq stock market
has soared recently as the threat of a forced regime change
gets nearer. Iraqi civilians cannot speak out about Saddam
but they can vote with their money. The implications are
not that the country will be obliterated by attacks but that
the post Saddam regime will be pro-business and life will be
better for all.

The Korean thing will not deteriorate into a war because
their army is too strong and South Korea would suffer too
much damage. It is likely to be only an attempt by North
Korea to blackmail the world powers into yet another payoff
to "stop" nuclear research. They have a history of this and
eventually somebody will pay their bribe or blockade them
into submission. They can't afford to feed their people much
less risk a real war. In Venezuela, Chavez will eventually be
toppled by either internal or external forces and oil will
flow again.

On the home front the Y2K PC upgrade wave will eventually
take place. Too many companies have already paid MSFT for
licenses they are not using and rumors are surfacing about
multiple bids being floated for 20,000 to 50,000 PC lots for
delivery later in the year. One OIN reader emailed that his
company was scheduled to replace 24,000 Intel PII laptops
with 28,000 new P4s in 2003. I am pretty convinced that
despite the serious problems in our immediate future there
is a recovery about to take place. Flaws in that theory are
the rising unemployment, lack of consumer spending and the
possibility of a double dip recession before the recovery
appears. With the 4Q GDP estimated to be only 1.5% any
second dip recession will be in the 1Q. The Fed has gone
into overdrive and is pumping large sums of money into the
system. If another economic dip occurs it should be short
and the rebound from a double dip could be strong. Once any
real signs of a recovery appear the race to upgrade and the
release of pent up spending could be violent.

Technically I think the current dip in the market is being
artificially created. I think institutions want to invest
in the market since bonds have peaked and money market rates
are near zero. They are afraid to make heavy bets with all
the uncertainty. My view is that they are trying to force
a retest of the October lows. Many institutions missed the
bounce in October because they were expecting a stronger
dip later. They will not miss it this time. If they can
force a retest by pulling bids and some strategic short
selling then they will be ready to go long for the recovery
when the retest is complete. That retest would have a tough
time breaking below 7700 so that is where I think the real
buyers will begin to appear. The next likely support point
for the current market is Nasdaq 1320. This is the confluence
of the 50% retracement and the 100 DMA and with the Nasdaq
bullish sentiment at the high of the year I see that as a
potential bounce point.

On the Rukeyser show on Friday he hosted his four best
market forecasters for 2002. They were quizzed on their
outlook for 2003. The average of their predictions were
Dow high 9913, low 7505, close 9155. The Nasdaq high 1732,
low 1186 and close 1525. What is your guess? On New Years
Day we are going to activate our "Guess the Dow" contest
and award a total of $2003 to the top three forecasters.
Get out your charts and get ready to place a bet. We will
be asking for the Dow high, low and close for 2003.

Enter Very Passively, Exit Very Aggressively!

Jim Brown

"Don't gamble in the market; take all your savings and buy
some good stock and hold it till it goes up, then sell it.
If it don't go up, don't buy it." - Will Rogers


=========================
Play-of-the-Day (BEARISH)
=========================
((new High-risk/reward short play))

Cephalon Inc - CEPH - close: 49.02 change: -1.31 stop: *text*

Company Description:
Founded in 1987, Cephalon, Inc. is an international
biopharmaceutical company dedicated to the discovery, development
and marketing of innovative products to treat sleep and
neurological disorders, cancer and pain. (source: company press
release)

Why We Like It:
Cephalon has developed perhaps one of the most intriguing
"lifestyle" drugs to come down the pipeline in recent years.  On
Monday the company submitted an application with the FDA to
market its Provigil drug, which is currently approved for use
with epilepsy patients, for treatment of "excessive sleepiness
associated with disorders of sleep and wakefulness in adults."
Studies have shown that Provigil has been effective in allowing
individuals to stay awake and alert for up to 48 hours without
any major side effects.  Should Cephalon receive a green light
from the FDA, thousands of Americans would be eligible to receive
the drug.  However, some have speculated that doctors may use a
broad interpretation of "sleep disorders" to prescribe the
treatment to anyone dealing with sleep deprivation.  This brings
to mind images of pilots, truck drivers, and overworked grad
students regularly popping Provigil.  Needless to say, this would
have a very positive effect on Cephalon's bottom line.

But as promising as Provigil is, we don't think the prospect of
an FDA approval is enough to keep CEPH afloat in the short-run.
For one thing, the agency probably won't make its decision for
several months.  It's unlikely that the company's request will be
approved anytime soon.  A more pressing issue for shareholders of
Cephalon is the recent weakness in the biotech sector.  The BTK.X
biotech index is looking decidedly bearish after falling to new
relative lows on Friday.  This breakdown produced a quadruple-
bottom breakdown on the p-n-f chart and also took the index below
bullish support.  Not surprisingly, CEPH has also been subjected
to a large amount of selling pressure.  The past two sessions saw
the stock rollover from its 50-dma ($52.31) and fall below the
200-dma at $50.54.  Shares also violated the December low of
$49.30.  The falling daily stochastics and MACD indicate that
CEPH could retrace a large chunk of its rapid October gains.  In
light of the current sector weakness, we think shares could
eventually reach the $42-$43 area.  As far as action points are
concerned, we'll enter this short play if/when CEPH falls under
today's low of $48.78.  If we're triggered our stop-loss will be
placed at $52.64, above the relative highs and the rising 50-dma.
More conservative traders could use a stop just above the 200-dma
at $50.54.

Annotated chart - CEPH:



Picked on December xxth at $xx.xx <- see text
Results since picked:       +0.00
Earnings Date            11/06/02 (confirmed)






==================================================================
WATCH LIST
==================================================================

The PremierInvestor.net watch list is not designed to be read
as full fledged stock picks.  Rather we would prefer to offer
it as an extra tool in today's investor toolbox.  Think of it
as a radar screen with your own radar operator pointing out
interesting developments, technical patterns or potential plays
that you may or may not have seen on your own.  Due to time
constraints we do glance at the news but rarely do we have
time to fully read pertinent news stories, due background
research and other necessary screens that investors should do
before making a decision.  A common exercise is to read the
entry, glance at the sector and other stocks in that industry
and then compare what's happening in the stock to what's
happening in the broader market indices.  We hope you enjoy
the Watch List and that it proves to be a useful tool for your
own trading success.

STOCKS WORTH WATCHING
---------------------------------

Amerada Hess - AHC - close: 54.66 change: -0.91

WHAT TO WATCH: The recent divergence between the price of oil and
the OSX.X oil service index is intriguing.  AHC has been moving
lower in recent weeks, in spite of the fact that crude futures
(cl03g) have rocketed to $32.72/barrel.  Actually, there are
several bearish candidates in the oil sector.  We like AHC as a
possible short because of the way shares have consistently found
resistance at the descending 50-dma ($55.65).  Short entries
could be targeted on another rollover from this moving average,
using the $50.00 level as an initial profit-target.  Keep in
mind, however, that any sudden developments in Venezuela or Iraq
could have a large short-term impact on oil stocks.




---

Bear Stearns - BSC - close: 59.78 change: -1.37

WHAT TO WATCH: The XBD.X broker/dealer index was slammed for a
3.0% loss today.  This capped off a week that saw very small
volume across the markets.  Tepid volume during the holiday
season doesn't come as a big surprise, but you've gotta wonder if
Wall Street is starting to get concerned that retail investors
will continue to sit on the sidelines in early-2003.  This would
be disastrous for brokerages such as Bear Stearns, who derive a
large chunk of their income from commissions.  Geo-political
worries (namely Iraq and North Korea), along with ongoing
economic uncertainty and high oil prices, sure aren't going to
help the situation.  The p-n-f chart for the XBD.X is looking
quite weak, having just produced a bearish triangle breakdown.
BSC looks like a good short candidate if it breaks under the
December low of $59.46.  Should this be the case, we'd expect the
stock to retrace its steep mid-October rally, which began near
$52.00.  FYI, Goldman Sachs (GS) also looks like a good short
play within the brokerage group.




---

Hartford Financial - HIG - close: 45.19 change: -1.39

WHAT TO WATCH: Readers following along with our AIG short play
are already aware of the growing weakness in the insurance
sector.  The IUX.X insurance index fell to a new multi-week low
on Monday and underperformed the broader market.  More bearish
action in the IUX.X would probably push HIG below support at
$45.00.  Interestingly, the p-n-f chart is showing a "bull trap"
alert, which was created when HIG reversed into a column of O's
after giving a triple-top buy signal.  This reversal pattern is
another indication that the stock may be heading lower in the
near future.  How low?  If shares fall below $44.97, we'd be
looking for a retest of the $40.00 area.  Possible support lies
at the November 11th low near $41.50.




---

Intl. Business Machines - IBM - close: 77.36 change: -1.14

WHAT TO WATCH: Although there hasn't been any specific news to
explain IBM's recent weakness, the weakening Dow Jones and NASDAQ
have given the bears enough ammunition to take shares to new
relative lows.  Today's 1.4% decline did a large amount of
technical damage to IBM.  In addition to breaking short-term
support at $78.25, the stock also violated its 200-dma at $78.05.
This breakdown created a double-bottom breakdown on the point-
and-figure chart.  In terms of action points, we'd be watching
for shares to move under today's low of $76.61.  The next clear
level of support is down at $65.00.  However, the current bearish
p-n-f objective of $71.00 provides a more realistic downside
target for short-term traders.




---

Coca-Cola - KO - close: 43.47 change: -0.68

WHAT TO WATCH: Here's another weak Dow Component.  Shares of Coke
fell to new 52-week lows today, in spite of a recent court ruling
against competitor Pepsi (PEP).  Pepsi argued in a 1998 lawsuit
that Coke had run afoul of antitrust laws by preventing food
distributors who sold their fountain drinks from selling any
Pepsi beverages.  This suit was dismissed in 2000, and an appeals
court upheld the decision earlier this week.  Interestingly, it's
KO that is the weaker-looking of the two stocks.  A glance at the
weekly chart shows that shares are trading at levels not seen
since summer of 2001.  The stock is also approaching the 2000 low
of $42.25.  A breakdown through this level could send the stock
towards the $30-$35 area.  KO is a relatively slow mover, so
short-term traders may want to look elsewhere.




---

PeopleSoft - PSFT - close: 19.24 change: -0.55

WHAT TO WATCH: Heads up!  PSFT looks like it's traced a Head &
Shoulders pattern on the daily chart.  The left shoulder was
created by the early-November highs and the head was formed by
the spike above $21 a few weeks later.  The recent rollover from
$20.00 appears to have created the right shoulder.  Throw in some
rolling stochastics (5,3,3) and a violation of the 200-dma
($19.26), and you've got an awfully bearish technical picture.
The lack of underlying support leads us to believe that PSFT
could retest the $17.00 level within the next few weeks.  Short
entries could be gauged on a move below $19.21, but be aware that
the rising 50-dma ($18.56) may provide support.




---

Providian Financial - PVN - close: 6.57 change: unch

WHAT TO WATCH: Shares of PVN have quietly moved to multi-month
highs after nearly doubling from the October lows.  The daily
chart shows no significant resistance until the $8.00 area.
Traders with an aggressive strategy can target a move to this
level, using a move above Thursday's high ($6.68) as a bullish
action point.  The point-and-figure chart is showing a double-top
buy signal.




---

Synopsys Inc - SNPS - close: 46.25 change: +0.08

WHAT TO WATCH: SNPS showed good relative strength on Friday as
shares posted a small gain after tagging a new short-term high.
By way of comparison, the GSO.X software index finished with a
loss of 1.7%.  Technically, there are several reasons that we
like SNPS as a possible long play: The stock has moved above its
200-dma ($46.12) and the p-n-f chart has reversed into a column
of X's.  Shares are also beginning to fill in the December 5th
gap, which came on the heels of the company's Q4 earnings report.
The MACD is on the verge of a bullish crossover as well.  A move
above $46.52 would put SNPS in a "fast-move" region that was
created by the steep selloff in early-December.  Short-term
traders could target a move to the $50-$52 area.




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

PIXR - Pixar moved higher ahead of its addition to the NASDAQ-
100.  Now that index has been re-balanced, shareholders can't
seem to bail out fast enough.  Today's move below the 50-dma
($55.08) has opened the door for a test of the $50-$51 area.
Short positions could be targeted on a rollover from $54.00.

CD - Cendant is looking weak after shares broke through near-term
support at $10.80.  The stock does not have any clear support
until the October lows near $9.00.

CVD - That's a tempting breakout in CVD, which gave a quadruple-
top p-n-f buy signal back at $21.00.  The stock is trading at 52-
week highs after stair-stepping higher for several weeks and it
now looks poised to test the 2001 high of $25.50.

HAR - Shareholders of this hi-fi audio company can be pleased
with the way HAR has rebounded from the $55.80 support region.
With the MACD and daily stochastics heading higher, it looks like
the stock might have enough momentum to rally back to the $65.00
area.


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

South for the Winter
by Steven Price

Did someone say something about a traditional year-end rally?
We're getting awfully close to the end of the year and with only
a couple of days left, things are looking awfully weak.  We are
at the low end of the recent trading range, going all the way
back to October, and a break below those recent lows could mean a
gloomy start to 2003.

The morning started off slow, with the Dow drifting slightly to
the negative side prior to the new home sales report.  That
report came out better than expected, with a gain of 5.7% and an
annualized rate of 1.07 million in November. Expectations had
been for a rate of less than a million.  The interesting part of
the report was a shift from the hotbed of sales in the Northeast,
to the Midwest.  Sales jumped 41% in the Midwest, while dropping
26% in the Northeast.  The supposed "good news" gave us a boost,
but that boost was short-lived, with the Dow Jones U.S. Home
Construction Index (DJUSHB) dropping almost 2% on a broad market
sell-off.

That broad market sell-off took the Dow down through 8300, where
it gave a fresh point and figure sell signal.  The SPX also broke
down through 880, giving its own sell signal, and tacked on an
additional "O" to the downside at 875, where it found closing
support.   The Dow traded as low as 8285 intraday, which was its
lowest close since October 29, when it traded down to 8198,
before a furious afternoon rally took it back to a close of 8368.
We are now resting on a cluster of support in the Dow 8250-8300
range and if we get a year-end bounce, this should be the level.
If that bounce ends up shy of recent resistance in the 8625-8650
range, then traders might want to look for a failed rally to
short.  I've been talking about the possibility of a head and
shoulders possibly forming, with the right shoulder in the Dow
around 8800.  That is looking far less likely, as the recent
bounces have failed to hold up enough to form a base for a
bullish move.  Our best shot appeared to be on Thursday, when the
morning rally appeared to have changed the trend of lower lows
and lower highs.  However, that rally failed miserably and we
ended today with yet another lower low.   If the last rally to
8638 turns out to have been a sloppy right shoulder, then the
downside target for the Dow would be in the 7800 area, based on a
neckline at 8400.  I'm not ready to identify that bounce as a
shoulder, since it is not very neatly defined, but the
possibility remains.

For now however, we are simply seeing a series of lower lows and
lower highs.  We have sold off over 250 points from Thursday's
high. We could be in for an end of year bounce on Monday and
Tuesday, but it is possible that we got our year end rally back
in November.  We have now seen reversals in the bullish percents
in the Dow, SPX, OEX and NDX.  The Nasdaq Composite has yet to
reverse itself, but is right up against its bearish resistance
line and will be hard pressed to continue higher with reversals
in the other indices.  The picture is certainly looking ugly for
the beginning of the New Year.  With the bullish percents in
reverse at the same time we are getting PnF sell signals, traders
can certainly lean short with confidence. The resistance directly
below us will take an awful lot of selling pressure to break
through and we may end up trapped between levels on the way down.
Traders playing bounces from this level should be quick to take
profits on market rallies, as those rallies are swimming against
the tide. If we break down below this support, and that October
low of 8198 in the Dow, then there will be little argument for
any bounce until we approach the July lows in the Dow 7500 range.
-----------------------------------------------------------------

Market Averages

DJIA ($INDU)

52-week High: 10673
52-week Low :  7197
Current     :  8303

Moving Averages:
(Simple)

 10-dma: 8459
 50-dma: 8546
200-dma: 9019

S&P 500 ($SPX)

52-week High: 1176
52-week Low :  768
Current     :  875

Moving Averages:
(Simple)

 10-dma:  892
 50-dma:  902
200-dma:  961

Nasdaq-100 ($NDX)

52-week High: 1734
52-week Low :  795
Current     :  997

Moving Averages:
(Simple)

 10-dma: 1019
 50-dma: 1031
200-dma: 1082
-----------------------------------------------------------------

The Gold and Silver Index (XAU): The XAU has been on a tear
recently, as the dollar has sunk to new relative lows on an
almost daily basis. Gold futures have been in rally mode and are
finally starting to appear as though they may have reached an
exhaustion point.  They were still up on the day on a big drop
for the equity markets, but ended well off their highs, which
were reached mid-day. Those futures mirrored the action in the
XAU, which is approaching resistance at 80 and has failed in its
attempts to crack the barrier.  Those traders long gold stocks
may want to consider taking some profits as we continue to fail
at that level, however, if we break above 81 in the XAU, it could
be fast trip up to 89.  Given the recent bearishness in the
equities, gold bugs should probably give it a chance to break
that resistance, but a move back under 74 in the XAU would be a
sign to take profits.

52-week High: 89
52-week Low : 53
Current     : 78

Moving Averages:
(Simple)

 10-dma: 76
 50-dma: 68
200-dma: 70
-----------------------------------------------------------------

Market Volatility

The VIX jumped 3 points today, as the Dow sold off into the low
end of its range over the last several months.  Volatility kicked
in as we rallied on Thursday morning, giving traders a warning
sign in regards to long positions.  The premium buyers who drove
that volatility higher were rewarded today on an uncharacteristic
drop heading into the end of the year.  If we see the Dow drop
below 8200, the VIX could well be on its way back to another test
of 50 and the July lows in the equities. We don't usually see
this much activity with traders on vacation, but this year has
been anything but normal. Volume was once again light and with
fewer buyers to support drops and fewer sellers to combat
rallies, it seems that the moves are heading to extremes the last
several days.  If these swings continue, option straddle holders
will be the only ones seeing a happy New Year.

CBOE Market Volatility Index (VIX) = 34.15 +3.07
Nasdaq-100 Volatility Index  (VXN) = 46.71 +1.35
-----------------------------------------------------------------

          Put/Call Ratio  Call Volume   Put Volume

Total          0.96        281,391       265,939
Equity Only    0.78        207,461       162,682
OEX            1.25         14,505        18,124
QQQ            2.95         17,236        51,696
-----------------------------------------------------------------

Bullish Percent Data

           Current   Change   Status
NYSE          49      + 0     Bull Confirmed
NASDAQ-100    61      - 2     Bear Alert
Dow Indust.   53      - 4     Bear Alert
S&P 500       60      + 0     Bull Correction
S&P 100       57      - 1     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   1.71
10-Day Arms Index  1.58
21-Day Arms Index  1.45
55-Day Arms Index  1.20


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        795          2005
NASDAQ     1121          2084

        New Highs      New Lows
NYSE         47              31
NASDAQ       55              41

        Volume (in millions)
NYSE        909
NASDAQ      789
-----------------------------------------------------------------

Commitments Of Traders Report: 12/23/02

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 reduced both sides of their positions, shaving 57,000
contracts off the long side and 61,000 contracts off the short
side.  Small traders also reduced significantly, with long
positions losing 56,000 contracts and short positions dropping by
32,000.

Commercials   Long      Short      Net     % Of OI
12/03/02      444,345   487,411   (43,066)   (4.6%)
12/10/02      446,831   503,583   (56,752)   (5.9%)
12/17/02      465,361   528,896   (63,535)   (6.4%)
12/23/02      408,592   467,259   (58,667)   (6.7%)

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
12/03/02      162,192    82,584    79,608     32.5%
12/10/02      162,115    71,505    90,610     38.8%
12/17/02      194,740    90,803   103,937     36.4%
12/23/02      138,756    58,236    80,520     40.9%

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

NASDAQ-100

Commercials reduced long positions by 20,000 contracts and shorts
by 10,000.  Small traders, on the other hand, got longer,
reducing the long side by 6,000 contracts, while closing 12,000
on the short side.


Commercials   Long      Short      Net     % of OI
12/03/02       43,709     51,977   ( 8,268) ( 8.6%)
12/10/02       44,651     51,716   ( 7,065) ( 7.3%)
12/17/02       51,999     54,383   ( 2,384) ( 2.2%)
12/23/02       32,067     44,451   (12,384) (16.2%)

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
12/03/02       13,749     9,869     3,880    16.4%
12/10/02       15,026     9,242     5,784    23.8%
12/17/02       23,027    18,027     5,000    12.2%
12/23/02       17,009     5,865    11,144

Most bearish reading of the year: (10,769) - 06/11/02
Most bullish reading of the year:  11,144  - 12/23/02

DOW JONES INDUSTRIAL

Commercials reduced both long and short positions by about 9,000
contracts, Small traders got slightly longer, losing 900 long
contracts and 3,000 shorts.

Commercials   Long      Short      Net     % of OI
12/03/02       20,176    15,427    4,749      13.3%
12/10/02       19,953    15,759    4,194      11.7%
12/17/02       23,782    20,605    3,177       7.2%
12/23/02       14,991    11,103    3,888      14.9%

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
12/03/02        5,885     9,781    (3,896)   (24.9%)
12/10/02        5,394     9,499    (4,105)   (27.6%)
12/17/02        5,498     9,045    (3,547)   (24.4%)
12/23/02        4,584     6,296    (1,712)   (15.7%)

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

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




=================================================================
To stop receiving this PremierInvestor.net Newsletter,
send email to Contact Support
=================================================================
DISCLAIMER
=================================================================

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

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

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

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

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


Copyright ) 2002  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.
PremierInvestor.net Newsletter          Weekend Edition 12-27-2002
                                                    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
  Bearish Play Updates:  TECD

Stock Bottom / Active Trader
  Bulilsh Play Updates:  BSX
  Bearish Play Updates:  AIG, COST, DLX

High Risk/Reward
  New Bearish Plays:     CEPH

Split Trader / Stock Splits
  Bullish Play Updates:  FRX




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

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

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

Tech Data Corp. - TECD - cls: 26.94 chg: -0.37 stop: 28.61

There were no fresh news developments for TECD this week.  With
no catalysts to push it higher, the stock slowly drifted down to
the lower end of its recent sideways trading range.  You'll
recall that last week we lowered our stop to $28.61, slightly
above the upper end of that range.  The fact that TECD broke to a
new relative low on Friday is an encouraging development for this
short play.  Although a small rebound materialized shortly after
noon, shares weren't able to move above solid intraday resistance
at $27.00.  The technical picture continues to remain negative,
with the daily stochastics (5,3,3) heading lower and the p-n-f
chart showing a double-bottom sell signal.  Next week we'll be
watching for TECD to break under today's low and make its way
towards our profit-target at $25.11.  Short-term traders looking
to scalp a quick 6%-7% could think about new bearish entries if
shares roll over from current levels.  The PI newsletter
currently has an 8.6% profit in this hypothetical trade.

Picked on December 5th at $29.49
Results since picked:      +2.55
Earnings Date           11/25/02 (confirmed)






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

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

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

Boston Scientific - BSX - close: 42.08 change: -1.26 stop: 40.99

Last week BSX was looking pretty strong after breaking to new 52-
week highs.  Unfortunately the stock appears to have fallen
victim to sector weakness.  The DRG.X pharmaceutical index was
hit for relatively large losses on Thursday and Friday, following
the release of a study that suggests newer arthritis drugs such
as Celebrex aren't any better than cheaper, over-the-counter
alternatives.  Shares of Pharmacia and Pfizer, who manufacture
Celebrex, helped to lead the drug group lower and thus provided
added selling pressure in BSX.  While today's 2.9% decline was
not backed by strong volume, the stock's violation of its
ascending regression channel is not encouraging.  With this
support level rendered obsolete, we'll now be looking for shares
to rebound from the $41.50-$42.00 area of congestion.  We've
given this play ample breathing room with a stop at $40.99.
Conservative traders may want to use a stop just below $42.00.
There have not been any recent news developments for Boston
Scientific.

Picked on December 20th at $44.01
Results since picked:       -1.93
Earnings Date            10/22/02 (confirmed)




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

American Intl. - AIG - cls: 56.68 chg: -1.62 stop: 60.11 *new*

It's not looking good for shareholders of AIG.  The stock
rebounded from the $58.00 area earlier this week and briefly
moved above $60.00 on Thursday morning.  However, the bears
regained control after shares failed to move above the Monday
high of $60.50.  This reversal carried over into today's session,
leading to a violation of the previous relative low at $57.71.
Shares posted a loss of 2.7% and underperformed the Dow Jones and
the IUX.X insurance index.  AIG and the IUX.X are both trading at
fresh multi-week lows.  So far this play has proceeded as we
hoped it would, with AIG retracing its rapid mid-October rally.
More weakness next week could take the stock to the next level of
psychological support at $55.00.  Conservative traders may want
consider taking profits if shares bounce from this area.  We're
going to be a little more optimistic and place our exit-target at
$53.06, more than a point above the October low.  Also note that
we're lowering our stop to $60.11.  Traders looking to protect a
larger gain could use a stop just above today's high of $58.61.

Picked on December 6th at $60.80
Results since picked:      +4.12
Earnings Date           10/24/02 (confirmed)




---

Costco Wholesale - COST - cls: 27.39 chg: -0.26 stop: 28.32 *new*

COST is really trying our patience here.  The stock has been
trading sideways in a narrow one-point range for more than a
week, despite negative news from retail giants such as WMT and
TGT.  With the RLX.X retail index breaking to new multi-week lows
today, we'd been expecting that COST would at least retest the
relative low of $27.09.  The stock instead traded an Inside Day
and finished with a loss of less than 1.0%.  While a 15-minute
chart shows a bearish trend of lower highs during the recent
consolidation period, we need to be prepared for the possibility
that COST will break to the upside.  With this in mind, we're
going to lower our stop to $28.32.  Very conservative traders
might want to use a stop just above today's high of $27.79.
Going forward, we'll be looking for COST to break down and join
the RLX.X at new relative lows.  New entries can be targeted on a
move below $27.00.  In the news this week, Costco lowered its
capital spending estimate for 2003 from $1.1 billion - $1.25
billion to $900 million - $1.1 billion.  The company did not give
a reason for the capex reduction.

Picked on December 18th at $27.56
Results since picked:       +0.17
Earnings Date:           12/12/02 (confirmed)




---

Deluxe Corp. - DLX - close: 41.36 change: -0.35 stop: 42.56 *new*

It's been more than three weeks since this play was activated,
and we're basically break-even...But it certainly hasn't been a
boring ride.  The failed rally at the 200-dma in early-December
offered savvy traders an ideal entry point.  More recently, DLX
bounced from the $40.00 area and spiked out of its descending
regression channel.  The stock was looking particularly strong on
Thursday morning when shares rallied to the $42.50 region.  These
gains were short-lived, however, as profit-taking quickly took
DLX back under $42.00.  Today's session saw shares follow the
market lower before closing near the worst levels of the week.
The reversing daily stochastics (5,3,3 setting) are an indication
that Thursday's reversal formed a short-term top.  While support
at $40.00 might be a tough nut to crack, this level could easily
give way if the broader market continues to decline.  We would
not recommend entering new short positions at this time.

Picked on December 4th at $41.28
Results since picked:      -0.08
Earnings Date           10/17/02 (confirmed)






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

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

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

Cephalon Inc - CEPH - close: 49.02 change: -1.31 stop: *text*

Company Description:
Founded in 1987, Cephalon, Inc. is an international
biopharmaceutical company dedicated to the discovery, development
and marketing of innovative products to treat sleep and
neurological disorders, cancer and pain. (source: company press
release)

Why We Like It:
Cephalon has developed perhaps one of the most intriguing
"lifestyle" drugs to come down the pipeline in recent years.  On
Monday the company submitted an application with the FDA to
market its Provigil drug, which is currently approved for use
with epilepsy patients, for treatment of "excessive sleepiness
associated with disorders of sleep and wakefulness in adults."
Studies have shown that Provigil has been effective in allowing
individuals to stay awake and alert for up to 48 hours without
any major side effects.  Should Cephalon receive a green light
from the FDA, thousands of Americans would be eligible to receive
the drug.  However, some have speculated that doctors may use a
broad interpretation of "sleep disorders" to prescribe the
treatment to anyone dealing with sleep deprivation.  This brings
to mind images of pilots, truck drivers, and overworked grad
students regularly popping Provigil.  Needless to say, this would
have a very positive effect on Cephalon's bottom line.

But as promising as Provigil is, we don't think the prospect of
an FDA approval is enough to keep CEPH afloat in the short-run.
For one thing, the agency probably won't make its decision for
several months.  It's unlikely that the company's request will be
approved anytime soon.  A more pressing issue for shareholders of
Cephalon is the recent weakness in the biotech sector.  The BTK.X
biotech index is looking decidedly bearish after falling to new
relative lows on Friday.  This breakdown produced a quadruple-
bottom breakdown on the p-n-f chart and also took the index below
bullish support.  Not surprisingly, CEPH has also been subjected
to a large amount of selling pressure.  The past two sessions saw
the stock rollover from its 50-dma ($52.31) and fall below the
200-dma at $50.54.  Shares also violated the December low of
$49.30.  The falling daily stochastics and MACD indicate that
CEPH could retrace a large chunk of its rapid October gains.  In
light of the current sector weakness, we think shares could
eventually reach the $42-$43 area.  As far as action points are
concerned, we'll enter this short play if/when CEPH falls under
today's low of $48.78.  If we're triggered our stop-loss will be
placed at $52.64, above the relative highs and the rising 50-dma.
More conservative traders could use a stop just above the 200-dma
at $50.54.

Annotated chart - CEPH:



Picked on December xxth at $xx.xx <- see text
Results since picked:       +0.00
Earnings Date            11/06/02 (confirmed)






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

===============
ST Play Updates
===============

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

Forest Labs - FRX - close: 97.80 change: -0.85 stop: 95.98

Shares of FRX are doing their best to keep us in our holiday
mood.  The market may be suffering from a hangover but FRX
appears to be trying its best to maintain the recent gains.  The
85-cent loss today in FRX (less than 1%) does not compared to the
3.4% drop in the Biotech index.  We decided to look at the sector
indices first and the forecast doesn't look good.  The Biotech
index (BTK.X) looks ready for a new bearish descent.  The recent
drop, including Friday's session, produced a quadruple bottom
breakdown in the point-and-figure chart.  This move also pierced
the rising bullish support line.  The daily chart of the BTK.X
doesn't look much better.  The index lost 3.4% on Friday closing
well below its 50-dma and bring it close to any potential support
near 340.  The line between Drug stocks and Biotech stocks is a
blurry one so we also looked at the DRG.X.  The Drug index
doesn't look too much better.  Its PnF chart has also pulled back
into a column of O's and is currently resting on its bullish
support trend.  Another move lower could display a technical
breakdown.  Meanwhile the DRG.X's daily chart is already showing
a new relative low for the last few weeks.  Optimists will say
that it is near the bottom of its descending channel and due for
a bounce but it looks pretty weak in our eyes.  We would not be
looking to go long any drug stocks based on the action in the
DRG.X.  Overall, FRX is doing better than many of its peers but
if the market and the two major sectors related to it are
falling, the stock will most likely fall with it.  Thus,
conservative traders may want to begin scaling out of their
positions already.  If not, begin to tighten or reaffirm their
stops.  It would not take much for FRX to spike down intraday and
hit our stop at $95.98.  We would not consider new positions in
FRX until it re-cleared the $100 mark again - or better yet, wait
for it to break above its 50-dma.  Don't forget that FRX only has
5 1/2 trading days left before its stock split on Jan. 8th, 2003.

Picked on December 24th at $100.26
Gain since picked:           -2.46
Earnings Date             10/15/02 (confirmed)







=================================================================
To stop receiving this PremierInvestor.net Newsletter,
send email to Contact Support
=================================================================
DISCLAIMER
=================================================================

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

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

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

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

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


Copyright ) 2002  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.
PremierInvestor.net Newsletter         Weekend Edition 12-27-2002
                                                   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 30th
   - 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 30th
==========================================

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

Symbol  Company               Date           Comment      EPS Est

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

None


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

None


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

None


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

None


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

WAG   Walgreen               Fri, Jan  3  -----N/A-----       0.20


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

Symbol  Company Name              Ratio    Payable     Executable

MUR     Murphy Oil                2:1      Dec. 30th   Dec. 31st
IBCP    Independent Bank Corp.    3:2      Dec. 31st   Jan.  2nd
CLBK    Commercial Bancshares     5:4      Jan.  3rd   Jan.  4th
CVBF    CVB Financial Corp        5:4      Jan.  3rd   Jan.  3rd
FRX     Forest Labs               2:1      Jan.  8th   Jan.  9th

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

Wall Street moving from one holiday week to another with the
New Year's holiday and market closure this Wednesday.  Volume
will continue to be light.  Reports to watch this week are the
Consumer Confidence on Tuesday, Vehicle sales and the ISM index
on Thursday, plus the Construction spending numbers on Friday.

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

Monday, 12/30/02
----------------
Existing Home Sales(DM) Nov  Forecast:  5.69M  Previous:    5.77M


Tuesday, 12/31/02
-----------------
Consumer Confidence(DM) Dec  Forecast:   86.0  Previous:     84.1
Chicago PMI (DM)        Dec  Forecast:   52.8  Previous:     54.3


Wednesday, 01/01/02
-------------------
None


Thursday, 01/02/02
------------------
Auto Sales (NA)         Dec  Forecast:   5.8M  Previous:     5.6M
Truck Sales (NA)        Dec  Forecast:   7.3M  Previous:     7.0M
Initial Claims (BB)   12/28  Forecast:   384K  Previous:     378K
ISM Index (DM)          Dec  Forecast:   50.2  Previous:     49.2


Friday, 01/03/02
----------------
Construction Spnding(DM)Nov  Forecast:   0.1%  Previous:     0.3%


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

BEBE    Bebe Stores                12.39     +0.74

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

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

FBC     Flagstar Bancorp           21.65     +1.20
GOLD    Randgold Resources         30.55     +3.07

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

UCL     Unocal Corp                30.12     -1.53
IBB     Biotech I-Shares           50.24     -1.74
TWP     Trex Co                    34.99     -2.72

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

SPF     Standard Pacific           25.10     -0.25
OTTR    Otter Tail Corp            27.69     -1.10
BMO     Bank Of Montreal           26.29     -0.62




=================================================================
To stop receiving this PremierInvestor.net Newsletter,
send email to Contact Support
=================================================================
DISCLAIMER
=================================================================

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

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

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

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

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


Copyright ) 2002  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.

DISCLAIMER

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

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

To ensure you continue to receive email from Option Investor please add "support@optioninvestor.com"

Option Investor Inc
PO Box 630350
Littleton, CO 80163

E-Mail Format Newsletter Archives