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Daily Newsletter, Friday, 01/10/2003

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PremierInvestor.net Newsletter          Weekend Edition 01-10-2003
                                                    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:      Jobless Traders Buying Stocks?
Play-of-the-Day:  It's All About the Gap
Watch List:       CSCO, FRX, HRS, SEBL, WLP, and tons more!
Market Sentiment: Knock, Knock, Knock

******************************************************************
MARKET WRAP  (view in courier font for table alignment)
******************************************************************
       WE 01-10        WE 01-03        WE 12-27        WE 12-20
DOW     8784.95 +183.26 8601.69 +297.91 8303.78 -208.22 + 78.16
Nasdaq  1447.75 + 60.67 1387.08 + 38.62 1348.46 - 14.59 +  0.63
S&P-100  470.41 + 11.21  459.20 + 16.14  443.06 - 12.40 +  3.65
S&P-500  927.57 +165.21  908.59 + 33.17  875.42 - 20.34 +  6.28
W5000   8758.43 +165.21 8593.22 +287.59 8305.63 -169.60 + 48.97
RUT      396.44 +  6.13  390.31 +  6.15  384.16 -  2.72 -  1.10
TRAN    2393.67 + 28.73 2364.94 + 73.28 2291.66 - 32.56 +  5.75
VIX       27.13 -  0.85   27.98 -  6.17   34.15 +  2.68 -  0.65
VXN       42.28 -  3.43   45.71 -  1.00   46.71 -  1.80 -  2.41
TRIN       0.80            1.32            3.60            0.66
Put/Call   0.75            0.76            0.94            0.88
******************************************************************

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

Jobless Traders Buying Stocks?
by Jim Brown

An amazing thing is occurring on Wall Street. Fundamentals do
not seem to matter any more. Wait, that is not so amazing
since that has been the trend for the last four years. Silly
me. Three years of a bear market seems to have given traders
a thick hide and a tolerance for bad news.

Dow Chart - Daily


Nasdaq Chart - Daily


That bad news came in the form of the Jobs report on Friday.
December lost -101,000 jobs, far worse than the gain of
+37,000 jobs that had been expected. Need more bad news? The
November number was revised downward from -40,000 to -88,000
and the October gain of +86,000 was revised down to a gain
of only +69,000. That represents a loss of -204,000 jobs
since September. This represents a major change in the current
economy but bulls ignored it and charged ahead. Considering
the economy lost -1.1 million jobs in 2002 and 20% were in
the last two months you would think the outlook and market
reaction would be worse. That wall of worry must be attracting
hordes of thrill seeking traders.

Manufacturing lost another -65,000 jobs in December and remains
the sector with the most losses. Airlines were also at the top
of the list and news this week show that the bloodbath is not
yet over. Retailers are still thinning the ranks with JCP
announcing on Friday another layoff of -2,000 with the closing
of their catalog business. Overall the unemployment rate did
not change at 6.0% because many workers just quit looking and
receiving benefits and that drops them off the rolls. The
bean counters tried to throw some camouflage netting over
the -101,000 number saying it was the result of a seasonal
adjustment. They claim they had overestimated the potential
new jobs at retailers and retailers only hired about half as
many as expected. Ok, read between the lines. The gvmt fudged
the earlier number by guessing that 162,000 Santas helpers
would be hired but retailers said bah-humbug and only hired
half the normal seasonal staff. Ok, no problem said the gvmt
because that means there will be fewer layoffs in January.
Makes sense to me. Fewer new hires means fewer layoffs but
isn't the bottom line still more unemployed?

Not that anybody is listening but the dire forecasts for the
4Q GDP have already begun. The shrinkage to only +1% growth
from 2-3 weeks ago is now starting to fall into the negative
column. Yes, major economists are now saying the GDP for the
4Q could be negative. Don't worry, the bulls will ignore it.
The administration is already starting to prep the public
for dismal results. VP Cheney said on Friday that failure
to pass the new tax cut plan quickly "might well" trigger
another economic turndown. Yes, it is a jab at the democrats
but it is also a disguised attempt to place blame for the
current quarter if things don't go well. Lay the groundwork
ahead of time so you can point to it later if needed. I
suspect they would not use scare tactics that might put
fear back into the market if they thought there was no
risk. (All of this is just supposition on my part but may
not be far from reality.) Critics have already claimed that
the tax cuts would be too little aid and too slow to have
any material impact on the current market. Obviously, the
battle for 2004 is already taking shape. Historically that
is a good thing because since 1939 the 3rd year of every
term has been bullish.

The economy may not be falling any further but it is far
from healthy. Of the guidance we have received so far there
have been 77 inline affirmations, 40 negative warnings and
23 positive upgrades. That is almost 2:1 negative over
positive for those not inline with estimates. When you
consider the continued falling unemployment there is the
possibility corporations could be cutting costs enough to
make estimates one more time. Eventually this process of
making earnings will stall with no employees left to cut.

On the global markets OPEC has scheduled an emergency
meeting to decide if they should pump more oil to avoid
further increases in oil prices. As oil prices rise the
urge for companies to explore farther and dig deeper is
strong. This puts pressure on future oil prices and takes
away the OPEC ability to keep prices high. I expect them
to open the spigots only slightly in anticipation of
Venezuela resolving their problems soon.

The problem with North Korea escalated by one giant step
as they withdrew from the nuclear nonproliferation treaty.
This drew a strong round of complaints by the world powers
as NK is a seller of weapons to other countries. Remember
the SCUD missiles to Yemen last month. If they start
selling nukes you can bet there would be an instant
reprisal. With NK desperately seeking money to feed
their population a few hundred million may seem like a
fair trade for a boatload of nukes for some oil rich
country. NK said if the UN issued any sanctions against
them for backing out of the treaty they would consider
it an act of war. Pretty tough talk for a country that
can't provide electricity for its people. It did however
ratchet up the attention on the world stage. Bulls ignored
it.

Iraq was pushed to the back burner by the NK news and the
Jobs report. It is not expected to be a headliner until
the Jan-27th meeting unless the inspectors stumble over
some hidden weapons. 7,000 more marines headed for the gulf
on Friday with three ships out of Virginia. The pentagon
said another 35,000 could receive orders to leave at any
time. Turkey and the US signed a pact, which would allow
the US forces to survey Turkey's bases to decide which
one they would like to use for any attack. They did not
get explicit permission but that is expected soon.

All eyes will be focused on the earnings calendar next
week. The big guns start lining up beginning on Tuesday
with Intel, LLTC, TER, PMTC. Wednesday has AAPL, ADP,
QLGC, RBAK, SYMC, YHOO. Thursday has AMD, ABT, ASML, ONE,
CREE, EBAY, FCS, FRX, GM, IBM, JNPR, MSFT, RATL, SUNW,
UTX. The biggie for Friday is GE. These are far from all
of them but you can see that techs are well represented
with INTC, IBM, MSFT, SUNW.

With very few warnings this quarter it would appear the
majority of companies are either going to hit the lowered
estimates or just take the heat with a miss. With estimates
so low a kids Kool-Aid stand could hit them it puts the
warning process in an entirely new light. With companies
like SUNW expected to be flat to -2 cents there is plenty
of room to the upside but not much chance of a material
downside surprise. Most of the majors would warn if there
was any risk as they have the most to lose in terms of
credibility if they produce a negative surprise.

I think you can see the reason for the current bullishness.
There is new money coming into the market from retirement
accounts and after a three year bear market the risk appears
to be minimal to most investors. 98% of forecasters are
predicting a higher market at year end so retail investors
are positively giddy with bullishness. Still they have not
been able to provide enough power to break that Dow 8800
resistance. They are chipping away at it one attempt at a
time but so far every attempt has fallen short.

There is still significant resistance at 8800 and at the
200 EMA at 8854. Should that resistance be broken with
some bullish earnings there is even stronger resistance
at 9000-9050. The bulls have a wall of worry to climb but
the bears have been unable to push them off the wall in
2003 with the Dow up +5% gain for the year already. That
wall of worry is rising unemployment, war (Iraq, NK), oil,
terrorists, earnings and lack of a recovery. Gone is the
specter of corporate governance problems from 2001. Knock
off a couple more of those problems and the market could
shift into overdrive. We are starting to see very slight
indications of buying as evidenced by the EMC and SAP news
from last week. Also, EXTR and FDRY both said sales of
enterprise switches and routers were strong. Somebody is
starting to buy equipment and tech traders have picked
up the scent. These are niche markets for each of those
four companies and not necessarily indicative of a broader
trend.

The Nasdaq is making very strong gains and added to Thursday's
close over the 200 DMA. Some would claim that it is emulating
one of those auto crash test where they run the cars up to
speed just to crash them into a barrier. That barrier for
the Nasdaq is the INTC, MSFT, SUNW and IBM earnings this
week. With expectations so low it may be possible for the
index to blast through that barrier on good news. If the
news is not good and guidance is lowered yet again then the
outcome may not be pretty.

Next week should prove to be litmus test for the markets.
Considering the rebound from the Jobs numbers today there
may not be much that can stop the bulls but we all know
that when things look most bullish problems tend to appear.
The Dow's +5.3% 2003 gain and the Nasdaq's +8.4% gain is
the strongest first week of trading in the last 16 years.
Is all the bad news priced in? Sure looks like it. Actually
the news has been so bad that the chances of getting the
tax cut package through in record time are good. This
should have the bears running in circles this weekend.

Make no mistake. If we broke Dow 8850 and then 9050 I would
become the head cheerleader. Until that happens I simply
feel that committing a large portion of your portfolio to
long positions could be risky. Most retail traders tend to
buy at the top and sell at the bottom. If the bottom is
already -1600 points (22%) behind us then where are we now?

Enter Very Passively, Exit Very Aggressively!

Jim Brown

"Do you know the only thing that gives me pleasure? It's
to see my dividends coming in." - John D. Rockefeller

(John's descendents are about to see a lot more pleasure)


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

Cigna Corp. - CI - close: 44.31 change: +0.71 stop: *text*

Company Description:
With businesses in Asia Pacific, Latin America and Europe, CIGNA
International, the global division of CIGNA Corporation, provides
health care, medical care management services and defined
contribution pension products to the workplace and consumer markets,
and life, accident and health insurance to individuals. It is also a
leading supplier of specialized health care and insurance benefits to
expatriate employees of multinational companies on international
assignments. (source: company press release)

Why We Like It:
Looking over a daily chart for Cigna, the first thing you'll
notice is the huge downward gap that occurred on October 25th.
This gap came on colossal volume of nearly 37 million shares.
The catalyst for this sell-off was the company's downward
earnings revision.  The earnings warning was particularly bad;
Cigna lowered its third-quarter EPS expectations from $1.90-$2.05
to $1.47.  Full-year estimates for 2002 were reduced to $6.50-
$6.75 from $7.85-$8.00.  Furthermore, Cigna also chopped its 2003
forecast to $6.25-$6.50 per share.  The analyst consensus had
been for a result of $8.84 per share.  Given the severity of this
earnings warning (which resulted from Cigna's failure to
effectively hedge its risks in some health plan accounts), it
wasn't surprising to see the stock lose a large chunk of its
value overnight.  This prompted the SEC to launch an informal
inquiry into the company a few days later.

In the weeks following the late-October debacle, CI clawed its
way back to the bottom of the gap at $44.00.  The stock then
spent the month of December trading in a slight downtrend after
shares topped out just below psychological resistance at $45.00.
It wasn't until this week that the downtrend was finally broken.
The past three sessions have seen the stock move solidly higher
in response to some newly-announced restructuring plans.  The
company said on Tuesday evening that in an effort to revamp its
health-care operations, it was taking a $98 million charge for
the fourth quarter and cutting more than 3000 jobs.  The Q4
charge was in-line with what Cigna outlined in October, when they
said a charge of up to $100 million might be forthcoming.
Investors seem to think that all the negative news has been
priced in and the company is taking the necessarily steps to
address its financial difficulties.

Technically, the main reason for our bullishness is the fact that
CI has started to fill in its October gap.  The next level of
possible resistance is at the lows for that month near $57.00.
This will be our initial target area.  Longer-term traders could
aim look for CI to completely fill in the gap and reach the
$63.00 area.  Bulls can also be pleased with rising action in
both the MACD and daily stochastics (5,3,3).  But while CI looks
strong, we're not willing to activate the play just yet.  First
we'd like to see the stock move through psychological resistance
at $45.00.  Waiting for a breakout above this level will also
ensure that we don't enter this paper trade until the point-and-
figure chart is showing a double-top buy signal.  If the play is
triggered we'll use a stop at $40.80, just under last week's low.
More conservative traders could place their stops slightly below
the 21-dma at $42.52.  Those who are risk-adverse might also want
to consider taking partial positions.

Annotated chart - CI:



Picked on January xxth at $xx.xx <-- see text
Results since picked:      +0.00
Earnings Date           02/07/03 (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
---------------------------------

Cisco Systems - CSCO - close: 15.22 change: +0.27

WHAT TO WATCH: Quite honestly, we don't know what to think of
CSCO.  The stock is sitting just below the $15.50 resistance
level after posting gains during 7 of the past 8 sessions.  A
rally through this area would be a positive development not just
for shareholders of the networking company, but the overall tech
sector.  However, in light of the rapid gains, odds are probably
in favor of a pullback.  Speculative traders could think about
shorting CSCO at current levels, with a stop slightly above
$15.50.  Traders who are familiar with options and advanced
option strategies might also want to consider a straddle play.
Cisco looks like it could be making another big move; we're just
not sure which direction it will take!




---

Forest Labs - FRX - close: 55.50 change: +1.25

WHAT TO WATCH: Post-split depression?  What post-split
depression?!  We closed our long play in FRX earlier this week
ahead of the 2-for-1 stock split.  Traders who elected to hold on
to some or all of their bullish positions finished off the week
with a big smile on their faces.  FRX might be trading at half of
its previous price, but that didn't halt the recent uptrend.
Investors have had a voracious appetite for the stock ever since
Forest Labs raised its earnings guidance on January 2nd.  Now
shares are trading at all-time highs.  The next challenge for the
bulls will be psychological resistance at $60.00.  Watch for a
pullback to $54.00 or a rally above today's high ($55.68) to
yield a possible action point.




---

Harris Corp. - HRS - close: 28.65 change: +0.94

WHAT TO WATCH: Harris announces earnings on January 15th during
the market.  While we don't recommend holding over earnings
announcements, short-term traders might be able to take advantage
of more upside action over the next few days.  HRS has been on a
tear over the past three weeks, and today's 3.3% gain took the
stock to fresh multi-month highs.  Shares have moved into a fast-
move region between $28-$34 that was created when the stock
tanked on a poor Q1 earnings release.  Given the lack of overhead
resistance, we think shares might be able to rally towards the
200-dma at $32.20.  The point-and-figure chart shows bearish
resistance at $31.00.




---

Siebel Systems - SEBL - close: 9.60 change: +0.24

WHAT TO WATCH: SEBL is trading just below $10.00 after gaining
almost 35% in only seven trading days.  These gains were fueled
by a powerful rally in the GSO.X software index, which seems to
be on course to retest resistance at 120.  The entire sector was
lifted by Thursday's news that German software maker SAP had
forecast better-than-expected quarterly sales.  Although SEBL
looks like it could pull back and consolidate its recent gains,
aggressive traders can watch for a move above $10.00 to provide a
possible bullish action point.  Even though SEBL is sitting on
some fat gains, we don't see any reason why shares couldn't
eventually move up to the 200-dma ($12.70) if the GSO.X breaks to
multi-month highs.  But again...only aggressive traders need
apply.




---

SLM Corp. - SLM - close: 107.80 change: +1.37

WHAT TO WATCH: Sallie Mae has been trending higher for more than
a month.  Shareholders rode the stock to a new all-time high
today after the company announced plans to price $500 million in
short-term floating rate notes.  With no overhead resistance, it
looks like SLM could soon test psychological resistance at $110.
Traders with a 4-6 week timeframe might be able to capture a move
to $115.  At the current rate of ascent, this level would be
reached in late February or early March.




---

Symantec Corp. - SYMC - close: 46.12 change: +1.05

WHAT TO WATCH: Shares of this software company hit all-time highs
today after investors responded to a pair of bullish brokerage
comments.  SG Cowen initiated coverage on SYMC with an
"outperform" rating, while Banc of America upgraded the stock to
"Buy" from "Market Perform."  BAC cited better-than-expected
fundamentals in the anti-virus business as the primary reason for
the upgrade.  The strong volume that accompanied today's
breakout, along with the rising MACD and bullish triangle point-
and-figure buy signal, paints an upbeat technical picture.
Traders looking for a quick 2-3 day trade can think about going
long on a move above $47.00.  SYMC looks like it has enough
momentum to reach the $50.00 area, but you'll have to nimble with
this one - The company announces earnings after the bell on
Wednesday.




---

Wellpoint Health Network - WLP - close: 69.57 change: -1.09

WHAT TO WATCH: Bearish play candidates were awfully hard to find
on Friday.  With the major indices closing near the highs of the
week, stocks in the midst of a breakdown are few and far between.
Wellpoint, however, has a daily chart that's sure to please the
bears.  The stock is rolling over after it failed to move above
the 200-dma ($74.04) last week.  Shares were plagued today by a
UBS Warburg downgrade of three other hospital stocks.  The rising
volume and recent pattern of relative weakness (versus the Dow)
are signs that WLP could retrace a large chunk of its
November/December rally, which began at $62.00.  Short entries
can be evaluated on a move under today's low of $68.80.




---

Xilinx Inc. - XLNX - close: 25.75 change: +0.28

WHAT TO WATCH: Overall, chip stocks had a pretty good week.  The
semiconductor extended last week's rebound from 285, sliced
through its 50-dma, and moved above resistance at 330.  Today the
SOX.X outperformed the NASDAQ and moved to a new relative closing
high.  A move through the 340-343 area could send the index
towards its multi-month highs near 390.  Xilinx is well-
positioned to take advantage of a continued uptrend in the
sector.  Shares are hovering just below resistance at $26.00.
XLNX actually moved above this level on Friday morning before it
pulled back to finish with a 1% gain.  If the stock can clear the
intraday high of $26.39 we'd expect to see at least a partial
retracement of the steep May-August decline.  A reasonable upside
target for short-term traders would be the next level of
psychological resistance at $30.00.  Keep in mind that sector
leader Intel announces earnings on Tuesday.





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

HPQ - Without much fanfare, HPQ has rallied sharply off its 50-
dma at $18.12.  Shares of the Dow Component reached a 10-month
high today.  There's a lot of overhead congestion, but a rally to
the $24.00 area wouldn't be out of the questions if some of the
tech heavy-hitters (IBM, INTC, and MSFT) report strong earnings
next week.

PPG - This chemical manufacturing stock has been trending
steadily higher for several weeks.  Shares are currently resting
just below resistance at the 200-dma ($53.00).  A break through
this moving average might pave the way for a rally to the next
level of historical resistance at $58.00.  The p-n-f chart is
also looking strong - PPG has moved above bearish resistance and
is currently on a double-top buy signal.

PSFT - Shares of PSFT traded strong all week before posting a
multi-month closing high on Friday.  A move above resistance at
$22.00 would open the door for a rally to the $24-$25 area.  The
p-n-f chart is showing a double-top buy signal.

PVN - Providian continues to trade strong.  The stock has
followed fellow credit provider Capital One (COF) to short-term
highs.  Aggressive long positions could be targeted on a move
above $7.40.

WEN - WEN is breaking out after trading in a tight range over the
past two months.  A move above the relative high of $29.34 could
send the stock towards the 200-dma at $34.21.  Conservative
traders will want to wait for the stock to clear resistance at
$30.00 before thinking about long positions.


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

Knock, Knock, Knock
by Steven Price

" Late last night and the night before,
   Tommyknockers, Tommyknockers,
    knocking at the door.
   I want to go out, don't know if I can,
    'cause I'm so afraid
   of the Tommyknocker man."

It appears that those bulls are pretty serious about this rally
thing. In fact, some of the dimmest economic news we've seen in a
while failed to hold down the markets after a big downdraft to
start the trading day.  The broader markets had morning jitters
following news that North Korea had pulled out of the nuclear
nonproliferation treaty, along with a much worse than expected
non-farm payroll report. That payroll report that showed a loss
of 101,000 jobs in December, which was far worse than
expectations for an increase of 32,000 jobs.  In addition to the
December disappointment, October and November results were
revised downward.  The revised November number showed twice as
many job cuts as originally projected (88,000 versus 40,000) and
the October payroll gain was pared down.  The unemployment rate
held steady at 6%, which was also worse than expected.

Sounds pretty ugly, huh?  Guess there were enough bulls out there
looking for somewhere to put his year's 401(k) contributions that
it didn't much matter.  The Dow sold off 87 points to start the
day, but the sell-off didn't last long.  Not only did we rebound,
but we rebounded to new relative highs intraday. The Dow made
another run over 8800, reaching a high of 8818, while the OEX hit
a high of 473.10 and the SPX traded up to 932.89.  The OEX high
was significant in that it gave a point and figure buy signal at
472.50 (using a 2.5 point box size) and is the first of the three
to do so.  A buy signal in the Dow comes at 8850 and the SPX
signal comes at 935.

The techs also added to yesterday's 200-dma breakthrough, with
the COMP adding 9.26 points to finish at 1447.72. While 9 points
doesn't seem like a big move, it is significant in that we
started the day down 20 points and haven't seen a close above the
200-dma since March. Back in March the COMP spent two days above
that line before continuing the downtrend started in January.  If
we get another gain on Monday, it will mark the first three-day
break over the 200-dma since December 2001. It is certainly
looking more and more like we will make a run at the December
high of 1521 in the Nasdaq, especially considering the strength
of today's bounce.  It's even more impressive that the rally took
place without participation from Microsoft (+0.11) and Dell (-
1.15).   At the same time, those stocks will need to participate
at some point if the rally is to continue for long.

The chip stocks continued higher through resistance once again.
After falling back through the previously pivotal 330 level, the
Semiconductor Index (SOX) bounced from its 50-dma (now 321.99)
for the third day in a row and closed at its highest level since
early December.  The SOX has failed to hold a close over 340, in
spite of intraday attempts three of the last four days, but if it
can break that barrier on a closing basis, the next likely
resistance level is the August rally highs in the 360-370 range.
The dip off the 50-dma certainly looks bullish and a trade of 344
would create a new point and figure buy signal for the average.

The rally brought mixed signals from the bond market, failing to
confirm the action in either a bullish or bearish direction.  The
five-year note showed a slight gain, the ten-year showed a small
loss and the thirty-year finished exactly unchanged.  The
indications show less conviction than the asset allocation we saw
yesterday as bonds dropped and equities rose, but also no profit
taking in stocks after the big run.

The fact that the Dow, SPX and SOX are all one box away from
giving point and figure buy signals and the OEX has already given
one, tells us that we are testing pivotal upside levels. Another
leg up and that door that has been shut for the last few days
could swing wide open. However, traders also need to be aware
that we are closing in on the August/December highs after a huge
rally and if we do get those confirming buy signals, it may be a
short trip until we hit additional resistance. That doesn't mean
we can't break through, but it is likely to be more than just a
speed bump.
-----------------------------------------------------------------

Market Averages

DJIA ($INDU)

52-week High: 10673
52-week Low :  7197
Current     :  8784

Moving Averages:
(Simple)

 10-dma: 8583
 50-dma: 8583
200-dma: 8933

S&P 500 ($SPX)

52-week High: 1176
52-week Low :  768
Current     :  927

Moving Averages:
(Simple)

 10-dma:  906
 50-dma:  905
200-dma:  950

Nasdaq-100 ($NDX)

52-week High: 1734
52-week Low :  795
Current     : 1087

Moving Averages:
(Simple)

 10-dma: 1036
 50-dma: 1044
200-dma: 1063
-----------------------------------------------------------------

The Semiconductor Index (SOX.X):  The SOX is making a comeback.
In spite of a sell-off in Dell, the chip stocks rallied back
through the pivotal 330 mark after bouncing from the 50-dma at
321.  The latest pullback to that average and then subsequent
move higher, appears as though we are seeing more than just an
oversold bounce. The December high in the SOX was 393, which
closely coincided at that time with its bullish vertical count
just over 400 on the point and figure chart. The current count is
448 and if we get the next buy signal, which comes at either 344
or 345, depending on whether you use a 5-point box, or
traditional measure, it is possible we could make another run.
There is bearish resistance just over 350, so traders can target
a move over the August high of 367 for confirmation of the
bullish move.  If we reach that level, it is likely the Dow, SPX
and OEX will all have reached buy signals as well.

52-week High: 657
52-week Low : 214
Current     : 339

Moving Averages:
(Simple)

 10-dma: 315
 50-dma: 321
200-dma: 372
-----------------------------------------------------------------

The VIX continues to find support at the 26% support level, as
the Dow continues to find resistance at 8800.  Like a rubber band
stretching, it is likely we will get either a snap-back with the
Dow falling and the VIX making a run to 30, or a breakout with
the VIX falling to the low 20s and the Dow making a run at 9000.
Traders can watch for a move under 25 to confirm bullishness in
the equities.

CBOE Market Volatility Index (VIX) = 27.13 +0.25
Nasdaq-100 Volatility Index  (VXN) = 42.28 -0.71
-----------------------------------------------------------------

          Put/Call Ratio  Call Volume   Put Volume

Total          0.75        589,551       443,038
Equity Only    0.58        457,616       265,165
OEX            1.51         26,421        39,992
QQQ            0.98         34,680        33,946
-----------------------------------------------------------------

Bullish Percent Data

           Current   Change   Status
NYSE          52      + 0     Bull Confirmed
NASDAQ-100    65      + 1     Bear Alert
Dow Indust.   57      + 0     Bull Confirmed
S&P 500       62      + 0     Bull Correction
S&P 100       59      + 0     Bear Alert

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

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

 5-Day Arms Index  0.89
10-Day Arms Index  1.18
21-Day Arms Index  1.28
55-Day Arms Index  1.22

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       1440          1426
NASDAQ     1713          1427

        New Highs      New Lows
NYSE        148              28
NASDAQ      114              31

        Volume (in millions)
NYSE       1,865
NASDAQ     1,662
-----------------------------------------------------------------

Commitments Of Traders Report: 01/07/02

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 increased long positions slightly, while reducing
shorts by 7,000 contracts.  Small traders added 4,000 long
contracts, while also adding 8,000 short contracts.

Commercials   Long      Short      Net     % Of OI
12/17/02      465,361   528,896   (63,535)   (6.4%)
12/23/02      408,592   467,259   (58,667)   (6.7%)
12/31/02      410,968   462,782   (51,814)   (5.9%)
01/07/03      411,542   455,538   (43,996)   (5.1%)

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
12/17/02      194,740    90,803   103,937     36.4%
12/23/02      138,756    58,236    80,520     40.9%
12/31/02      139,383    75,640    63,743     30.0%
01/07/03      143,169    83,895    59,274     26.1%

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 added 6,000 long contracts, while adding 4,000
shorts.  Small traders left long positions basically unchanged,
while increasing shorts by 3,400 contracts, or 68%.

Commercials   Long      Short      Net     % of OI
12/17/02       51,999     54,383   ( 2,384) ( 2.2%)
12/23/02       32,067     44,451   (12,384) (16.2%)
12/31/02       31,399     44,387   (12,988) (17.1%)
01/07/03       37,966     48,156   (10,190) (11.8%)

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
12/17/02       23,027    18,027     5,000    12.2%
12/23/02       17,009     5,865    11,144    49.0%
12/31/02       19,841     5,009    14,832    60.1%
01/07/03       19,708     8,453    11,255    40.1%

Most bearish reading of the year: (10,769) - 06/11/02
Most bullish reading of the year:  14,832  - 12/31/02

DOW JONES INDUSTRIAL

Commercials left positions relatively unchanged, while small
traders increased short positions by 1800 contracts.

Commercials   Long      Short      Net     % of OI
12/17/02       23,782    20,605    3,177       7.2%
12/23/02       14,991    11,103    3,888      14.9%
12/31/02       15,940    11,253    4,687      17.2%
01/07/03       16,210    11,333    4,877      17.7%

Most bearish reading of the year: (8,322) -  1/16/01
Most bullish reading of the year: 15,135  - 10/16/01

Small Traders  Long      Short     Net     % of OI
12/17/02        5,498     9,045    (3,547)   (24.4%)
12/23/02        4,584     6,296    (1,712)   (15.7%)
12/31/02        4,997     6,553    (1,556)   (13.5%)
01/07/03        4,963     8,334    (3,371)   (25.4%)

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




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

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

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

*****************************************************************
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Newsletter, or any Premier Investor Network newsletter please
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*****************************************************************


Copyright ) 2003  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.
PremierInvestor.net Newsletter          Weekend Edition 01-10-2003
                                                    section 2 of 3
Copyright ) 2003, 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:  TDS
  Closed Bearish Plays:  ERTS

Stock Bottom / Active Trader
  New Bullish Plays:     CI
  Bullish Play Updates:  BSX, SYK
  Bearish Play Updates:  DLX

High Risk/Reward
  Closed Bearish Plays:  CEPH



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

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

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

Telephone Data Systems - TDS - cls: 44.65 chg: +0.92 stop: 47.11

This morning's broader market weakness was enough to drag TDS
under Thursday's low.  Our short play was triggered at $43.40.
Although the NASDAQ bounced sharply from its intraday lows, TDS
managed only a small rebound before trading in a small range for
several hours.  It wasn't until the final hour that the bulls
were able to gain some traction.  Shares moved steadily higher
into the closing bell and finished near the highs of the day.
This may have been a result of short traders closing out
positions ahead of the weekend.  TDS had suffered some large
losses over the past few days, so it didn't come as surprise to
see some short-covering at the end of the week.  If shares
continue higher on Monday we'll be looking for a rollover near
short-term resistance at $45.00.  Speculative traders could
consider new short positions if this turns out to be the case.
TDS is still in a clear downtrend and today's new multi-year low
isn't going to encourage bullish activity.  More conservative
traders can target entries on a move under $43.20.  Our stop-loss
is set at $47.11.

Picked on January 10th at $43.40
Results since picked:      -1.25
Earnings Date           02/05/03 (unconfirmed)





===============
NB Closed Plays
===============

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

Electronic Arts - ERTS - close: 51.88 change: +1.11 stop: *text*

We hate to dump ERTS only a few days after we added it to our
Play List, but the stock just didn't cooperate with our bearish
expectations.  Shares had spent two sessions consolidating in a
narrowing range.  This suggested to us that there was a lot of
indecisiveness and indecision on the part of investors.  If
today's 2.1% gain is any indication, it looks like the bulls won
the heated round of tug-of-war.  Shares actually traded to an
intraday high of $54.00 this morning before selling off
throughout the rest of the session.  Profit-takers were eager to
take profits after ERTS rolled over from its 21-dma at $53.61.
But as ugly as the intraday chart looks, today's break to the
upside is a clear indication of technical strength.  With the
oscillators heading also heading higher, it looks like ERTS could
continue to trade with a bullish bias in the near future.  We'll
keep the stock on our radar screen for an eventual breakdown
under the relative low of $48.34.

Picked on January xth at $xx.xx <- see text
Results since picked:     +0.00
Earnings Date          01/29/03 (unconfirmed)






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

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

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

Cigna Corp. - CI - close: 44.31 change: +0.71 stop: *text*

Company Description:
With businesses in Asia Pacific, Latin America and Europe, CIGNA
International, the global division of CIGNA Corporation, provides
health care, medical care management services and defined
contribution pension products to the workplace and consumer markets,
and life, accident and health insurance to individuals. It is also a
leading supplier of specialized health care and insurance benefits to
expatriate employees of multinational companies on international
assignments. (source: company press release)

Why We Like It:
Looking over a daily chart for Cigna, the first thing you'll
notice is the huge downward gap that occurred on October 25th.
This gap came on colossal volume of nearly 37 million shares.
The catalyst for this sell-off was the company's downward
earnings revision.  The earnings warning was particularly bad;
Cigna lowered its third-quarter EPS expectations from $1.90-$2.05
to $1.47.  Full-year estimates for 2002 were reduced to $6.50-
$6.75 from $7.85-$8.00.  Furthermore, Cigna also chopped its 2003
forecast to $6.25-$6.50 per share.  The analyst consensus had
been for a result of $8.84 per share.  Given the severity of this
earnings warning (which resulted from Cigna's failure to
effectively hedge its risks in some health plan accounts), it
wasn't surprising to see the stock lose a large chunk of its
value overnight.  This prompted the SEC to launch an informal
inquiry into the company a few days later.

In the weeks following the late-October debacle, CI clawed its
way back to the bottom of the gap at $44.00.  The stock then
spent the month of December trading in a slight downtrend after
shares topped out just below psychological resistance at $45.00.
It wasn't until this week that the downtrend was finally broken.
The past three sessions have seen the stock move solidly higher
in response to some newly-announced restructuring plans.  The
company said on Tuesday evening that in an effort to revamp its
health-care operations, it was taking a $98 million charge for
the fourth quarter and cutting more than 3000 jobs.  The Q4
charge was in-line with what Cigna outlined in October, when they
said a charge of up to $100 million might be forthcoming.
Investors seem to think that all the negative news has been
priced in and the company is taking the necessarily steps to
address its financial difficulties.

Technically, the main reason for our bullishness is the fact that
CI has started to fill in its October gap.  The next level of
possible resistance is at the lows for that month near $57.00.
This will be our initial target area.  Longer-term traders could
aim look for CI to completely fill in the gap and reach the
$63.00 area.  Bulls can also be pleased with rising action in
both the MACD and daily stochastics (5,3,3).  But while CI looks
strong, we're not willing to activate the play just yet.  First
we'd like to see the stock move through psychological resistance
at $45.00.  Waiting for a breakout above this level will also
ensure that we don't enter this paper trade until the point-and-
figure chart is showing a double-top buy signal.  If the play is
triggered we'll use a stop at $40.80, just under last week's low.
More conservative traders could place their stops slightly below
the 21-dma at $42.52.  Those who are risk-adverse might also want
to consider taking partial positions.

Annotated chart - CI:



Picked on January xxth at $xx.xx <-- see text
Results since picked:      +0.00
Earnings Date           02/07/03 (confirmed)





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

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

Boston Scientific - BSX - cls: 45.02 chg: +0.20 stop: 41.63 *new*

Not too shabby.  BSX pegged a new multi-year high on Friday after
the bulls conquered resistance at $45.00.  Shares rebounded with
the broader market shortly after the opening bell, moved down to
the $44.50 area in the middle of the day, then clawed their way
back to a small gain.  The fact that shares closed above $45.00
bodes well for a continuation of the current uptrend.  With this
hurdle successfully dealt with, the next challenge for the bulls
will be the 1999 highs near $47.00.  This level also happens to
coincide with the top of the ascending regression channel that
has dictated BSX's trading range since it gapped higher in early-
October.  Because we're expecting shares to find resistance in
that region, short-term traders or conservative traders may want
to take profits if shares roll over near $47.00.  Also note that
our stop-loss has been raised to $41.63, just below the rising
50-day moving average and the relative low of $41.65.

Picked on December 20th at $44.01
Results since picked:       +1.01
Earnings Date            10/22/02 (confirmed)




---

Stryker Corp - SYK - close: 68.00 change: -0.65 stop: 65.43

That wasn't the most exciting week, was it?  SYK spent the past
five days trading in a narrow range of $1.75.  Shares repeatedly
found buyers in the $67.25-$67.75 area, while the bulls weren't
able to dispatch resistance at $69.00.  Today's action saw SYK
pull back by nearly 1% after it failed to move above the previous
session's high.  Despite this loss, shares were able to post a
higher low for the third straight day.  Looking at the big
picture, we see no reason why Stryker won't be able to reach new
all-time highs next week.  The stock has done a good job of
consolidating the past month of gains, even while the daily
stochastics have fallen from overbought levels.  This resilience
leads us to believe that shares could SYK could break out of its
consoldation range and move above $69.00.  New long entries could
be evaluated if this occurs, but keep in mind that the bulls will
also have to contend with psychological resistance at $70.00.
For the time being our stop will stay put at $65.43.  More
conservative traders could use a stop slightly under Wednesday's
low of $67.25.

Picked on January 3rd at $68.26
Results since picked:     -0.26
Earnings Date          10/16/02 (confirmed)




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

Deluxe Corp. - DLX - close: 41.31 change: -0.58 stop: 42.56

Well what do you know?!  DLX has finally broken out of its
extended sideways trading pattern.  As we mentioned in last
night's update, the stock had moved in a very tight $1.26 range
for more than two weeks.  The lower end of this range was taken
out this afternoon when DLX sank to a low of $41.08.  These
losses came in spite of an intraday uptrend in the broader
market, which rebounded from the initial morning weakness.  The
stock rebounded slightly into the closing bell but still posted
its lowest close since December 19th.  So what's next for DLX?
The descending daily stochastics (5,3,3) seem to be hinting at a
retest of support at $40.00.  We're also encouraged by the MACD,
which is beginning to lose momentum under the baseline.  And
while shares haven't had much of a tendency to follow the Dow
Jones, today's relative weakness is a promising development.  Of
course the bears still face a formidable challenge at $40.00.
Next week we'll be looking for shares to violate this support
level and move to new multi-month lows.  Hopefully we'll start to
see some real downside action instead of another two weeks of
sideways trading!

Picked on December 4th at $41.28
Results since picked:      -0.03
Earnings Date           10/17/02 (confirmed)






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

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

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

Cephalon Inc - CEPH - close: 51.56 change: +1.57 stop: 52.06

Cephalon's last rebound on Thursday just cracked the 200-dma, but
fell short of the $50 resistance mark.  It has now passed that
level and gained $2.60 in two days.  While it is back up into
resistance just under $52, the breakdown we were attempting to
capture appears to have reversed itself, at least temporarily.
The trade back through $51 was good enough for a point and figure
reversal into a column of "X" and we are going to let this one
go.  The action in the Biotech Index (BTK.X) also suggests a
sector rebound, as it crossed back above the 50-dma and 21-dma on
today's rally. While CEPH did not violate out stop at $52.06, the
sector action weighs against the downtrend.  Longer-term traders
who don't mind giving the bears a few more days to perform could
use an alternative stop above the 50-dma of $52.55.  This play
has been closed with a loss of 5.7%.

Picked on December 30th at $48.77
Results since picked:       -2.79
Earnings Date            11/06/02 (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 ) 2003  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.
PremierInvestor.net Newsletter         Weekend Edition 01-10-2003
                                                   Section 3 of 3
Copyright ) 2003, 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 January 13th
   - 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 January  13th
==========================================

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

Symbol  Company               Date           Comment      EPS Est

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

ARA    Aracruz Celulose S.A. Mon, Jan 13  Before the Bell     0.14
BBT    BB&T Corporation      Mon, Jan 13  Before the Bell     0.71
CBH    Commerce Bancorp, Inc.Mon, Jan 13  Before the Bell     0.55
RDC    Rowan Companies, Inc. Mon, Jan 13  Before the Bell     0.00
THC    Tenet Healthcare      Mon, Jan 13  Before the Bell     0.69


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

AMB    AMB Property Corp     Tue, Jan 14  After the Bell      0.60
ASO    AmSouth Bancorp       Tue, Jan 14  Before the Bell     0.43
CYN    City National Corp    Tue, Jan 14  After the Bell      0.86
INTC   Intel Corporation     Tue, Jan 14  After the Bell      0.14
LLTC   Linear Technology     Tue, Jan 14  After the Bell      0.17
SPOT   PanAmSat              Tue, Jan 14  Before the Bell     0.13
BPOP   Popular, Inc.         Tue, Jan 14  After the Bell      0.64
PCP    Precision Castparts   Tue, Jan 14  Before the Bell     0.66
COL    Rockwell Collins, Inc Tue, Jan 14  Before the Bell     0.28
TER    Teradyne Inc.         Tue, Jan 14  After the Bell     -0.22
TKS    Tomkins PLC           Tue, Jan 14  Before the Bell      N/A
TSS    Total System Serv     Tue, Jan 14  -----N/A-----       0.18

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

APH    Amphenol              Wed, Jan 15  Before the Bell     0.51
AAPL   Apple Computer, Inc.  Wed, Jan 15  After the Bell      0.03
ADP    Automatic Data Proc   Wed, Jan 15  -----N/A-----       0.43
BAC    Bank of America Corp  Wed, Jan 15  Before the Bell     1.59
BLK    BlackRock, Inc.       Wed, Jan 15  Before the Bell     0.51
CNB    Colonial BancGroup    Wed, Jan 15  -----N/A-----       0.30
CBSH   Commerce Bancshares   Wed, Jan 15  Before the Bell     0.75
FNM    Fannie Mae            Wed, Jan 15  Before the Bell     1.63
FITB   Fifth Third Bancorp   Wed, Jan 15  Before the Bell     0.72
DNA    Genentech, Inc.       Wed, Jan 15  After the Bell      0.24
HRS    Harris                Wed, Jan 15  11:00 am ET         0.26
HIB    Hibernia Corp.        Wed, Jan 15  -----N/A-----       0.44
HCBK   Hudson City Bancorp   Wed, Jan 15  Before the Bell     0.27
GMH    Hughes Electronics    Wed, Jan 15  Before the Bell     0.06
KEY    Keycorp               Wed, Jan 15  Before the Bell     0.57
KMP    Kinder Morgan         Wed, Jan 15  -----N/A-----       0.45
MI     Marshall & Ilsley     Wed, Jan 15  Before the Bell     0.56
NFB    North Fork Bancorp    Wed, Jan 15  -----N/A-----       0.67
PFGI   Provident Financial   Wed, Jan 15  Before the Bell     0.63
QLGC   QLogic                Wed, Jan 15  After the Bell      0.28
RJF    Raymond James         Wed, Jan 15  -----N/A-----        N/A
SJR    Shaw Communications   Wed, Jan 15  After the Bell       N/A
SOTR   SouthTrust            Wed, Jan 15  -----N/A-----       0.48
SYMC   Symantec              Wed, Jan 15  After the Bell      0.39
SNV    Synovus Financial     Wed, Jan 15  -----N/A-----       0.33
TCB    TCF Financial Corp    Wed, Jan 15  -----N/A-----       0.82
WHI    W Holding Company     Wed, Jan 15  -----N/A-----       0.30
YHOO   Yahoo, Inc.           Wed, Jan 15  After the Bell      0.06


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

ABT    Abbott Laboratories   Thu, Jan 16  Before the Bell     0.56
AMD    Advanced Micro Dev    Thu, Jan 16  After the Bell     -0.41
ACF    AmeriCredit Corp.     Thu, Jan 16  07:30 am ET        -0.06
ANDW   Andrew Corporation    Thu, Jan 16  After the Bell      0.01
ASML   ASML Holdings NV      Thu, Jan 16  Before the Bell     0.04
ASBC   Associated Banc-Corp  Thu, Jan 16  -----N/A-----       0.70
ONE    Bank One              Thu, Jan 16  Before the Bell     0.72
BNK    Banknorth Group Inc.  Thu, Jan 16  Before the Bell     0.53
BRE    BRE PROPERTIES INC    Thu, Jan 16  After the Bell      0.65
COF    Capital One Fin       Thu, Jan 16  -----N/A-----       1.04
POS    Catalina Marketing    Thu, Jan 16  After the Bell      0.31
CBCF   Citizens Banking      Thu, Jan 16  -----N/A-----       0.49
CMA    Comerica Incorporated Thu, Jan 16  Before the Bell     1.16
CFBX   Community First Bank  Thu, Jan 16  Before the Bell     0.50
CBSS   Compass Bancshares    Thu, Jan 16  -----N/A-----       0.62
ED     Consolidated Edison   Thu, Jan 16  -----N/A-----       0.57
CREE   Cree Inc.             Thu, Jan 16  After the Bell      0.08
DHI    D.R. Horton           Thu, Jan 16  Before the Bell     0.66
DAL    Delta Air Lines       Thu, Jan 16  -----N/A-----      -2.44
DSL    Downey Financial Corp.Thu, Jan 16  Before the Bell     1.02
EBAY   eBay                  Thu, Jan 16  After the Bell      0.24
ETH    Ethan Allen Interiors Thu, Jan 16  Before the Bell     0.57
FBAN   F.N.B. Corporation    Thu, Jan 16  After the Bell      0.55
FCS    Fairchild Semi Int.   Thu, Jan 16  After the Bell      0.07
FVB    First Virginia Banks  Thu, Jan 16  Before the Bell     0.66
FMER   FirstMerit            Thu, Jan 16  -----N/A-----       0.47
FBF    FleetBoston Fin Corp  Thu, Jan 16  Before the Bell     0.57
FRX    Forest Laboratories   Thu, Jan 16  Before the Bell     0.43
FCX    Freeport-McMoRan CoGo Thu, Jan 16  Before the Bell     0.40
GM     General Motors Corp.  Thu, Jan 16  Before the Bell     1.52
HBAN   Huntington Bancshares Thu, Jan 16  Before the Bell     0.35
IBM    Intl Bus Machines     Thu, Jan 16  After the Bell      1.30
JKHY   Jack Henry & Ass      Thu, Jan 16  Before the Bell     0.13
JCI    Johnson Controls      Thu, Jan 16  Before the Bell     1.45
JNPR   Juniper Networks      Thu, Jan 16  After the Bell     -0.01
KBH    KB Home               Thu, Jan 16  Before the Bell     2.53
LNR    LNR Property          Thu, Jan 16  -----N/A-----       0.80
MSFT   Microsoft             Thu, Jan 16  After the Bell      0.46
MOLX   Molex Inc.            Thu, Jan 16  After the Bell      0.15
NCC    National City         Thu, Jan 16  Before the Bell     0.61
NCF    Nat Com Fin Corp      Thu, Jan 16  -----N/A-----       0.41
PH     Parker Hannifin Corp. Thu, Jan 16  -----N/A-----       0.39
PBCT   People's Bank         Thu, Jan 16  -----N/A-----       0.28
PNC    PNC Fin Serv Group    Thu, Jan 16  -----N/A-----       0.94
RATL   Rational Software     Thu, Jan 16  After the Bell      0.05
TSG    Sabre Holdings Corp.  Thu, Jan 16  Before the Bell     0.14
SFA    Scientific-Atlanta    Thu, Jan 16  After the Bell      0.15
S      Sears, Roebuck and Co Thu, Jan 16  -----N/A-----       1.92
SKYF   Sky Financial Group   Thu, Jan 16  -----N/A-----       0.42
SLM    SLM Corporation       Thu, Jan 16  Before the Bell     1.22
SUNW   Sun Microsystems      Thu, Jan 16  After the Bell     -0.02
TPP    Teppco                Thu, Jan 16  -----N/A-----       0.52
UPC    Union Planters Corp   Thu, Jan 16  After the Bell      0.67
UB     UnionBanCal           Thu, Jan 16  After the Bell      0.89
UTX    United Technologies   Thu, Jan 16  Before the Bell     1.04
VLY    Valley National Banc  Thu, Jan 16  -----N/A-----       0.41
WB     Wachovia              Thu, Jan 16  Before the Bell     0.72
WTNY   Whitney Holding Corp  Thu, Jan 16  -----N/A-----       0.59
WL     Wilmington Trust      Thu, Jan 16  -----N/A-----       0.53


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

CF     Charter One Financial Fri, Jan 17  Before the Bell     0.63
DPH    Delphi                Fri, Jan 17  Before the Bell     0.20
FTN    First Tenn National   Fri, Jan 17  Before the Bell     0.77
GE     General Electric      Fri, Jan 17  -----N/A-----       0.31
LAB    LaBranche & Co Inc.   Fri, Jan 17  Before the Bell     0.34
WIT    Wipro Limited         Fri, Jan 17  -----N/A-----       0.22


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

Symbol  Company Name              Ratio    Payable     Executable

RAVN    Raven Industries          2:1      Jan. 15th   Jan. 16th
PVBT    PrivateBancorp            3:2      Jan. 17th   Jan. 20th


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

Don't look now but Earnings Season is here.  This week kicks
off the Q4 results with heavy hitters MSFT and GE among others.
Plus, the week has a number of reports with Retail Sales, PPI,
CPI and more throughout the week.

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

Monday, 01/13/02
----------------
None


Tuesday, 01/14/02
-----------------
Retail Sales (BB)       Dec  Forecast:   0.6%  Previous:     0.4%
Retail Sales ex-auto(BB)Dec  Forecast:   0.4%  Previous:     0.5%
Export Prices ex-ag.(BB)Dec  Forecast:    N/A  Previous:    -0.1%
Import Prices ex-oil(BB)Dec  Forecast:    N/A  Previous:     0.1%


Wednesday, 01/15/02
-------------------
PPI (BB)                Dec  Forecast:   0.2%  Previous:    -0.4%
Core PPI (BB)           Dec  Forecast:   0.1%  Previous:    -0.3%
Business Inventories(BB)Nov  Forecast:   0.2%  Previous:     0.2%
Fed’s Beige Book (DM)


Thursday, 01/16/02
------------------
Initial Claims (BB)   01/11  Forecast:    N/A  Previous:     389K
CPI (BB)                Dec  Forecast:   0.2%  Previous:     0.1%
Core CPI (BB)           Dec  Forecast:   0.1%  Previous:     0.2%
Philadelphia Fed (DM)   Jan  Forecast:    9.1  Previous:      7.2


Friday, 01/17/02
----------------
Trade Balance (BB)      Nov  Forecast:-$36.0B  Previous:  -$35.1B
Industrial Product (DM) Dec  Forecast:   0.2%  Previous:     0.1%
Capacity Utilization(DM)Dec  Forecast:  75.7%  Previous:    75.6%
Mich Sent-Prel (DM)     Jan  Forecast:   88.0  Previous:     86.7


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

LEH     Lehman Brothers            59.36     +1.01
RCII    Rent A Center              54.75     +0.75
SPW     SPX Corp                   40.00     +1.88
TSA     Sports Authority            7.62     +0.63
PBR     Petroleo Brasileiro        17.55     +0.76
VCP     Votorantim Celulose        19.20     +1.07
SLF     Sun Life Fincl.            19.19     +0.73

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

ALO     Alpharma Inc               16.00     +2.54
DMRC    Digimarc Corp              14.44     +1.62
DOX     Amdocs Ltd                 12.94     +1.49
AFC     Allmerica Financial        15.95     +1.05
CTVX    CV Therapeutics            20.00     +1.37
OMG     OM Group                    8.14     +1.79
AYE     Allegheny Energy           10.09     +1.58

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

DISH    Echostar Communications    26.22     +1.17
LABS    LabOne Inc                 20.35     +1.65
SFNT    Safenet Inc                30.50     +2.75
GENZ    Genzyme Corp               31.58     +2.67
WY      Weyerhaeuser               52.76     +1.32
ROK     Rockwell Automation        22.65     +1.14
FTE     France Telecom             22.83     +1.78
RI      Ruby Tuesday               20.27     +1.22
COF     Capital One Financial      39.00     +2.49

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

DELL    Dell Computer              27.15     -1.15
LXK     Lexmark Intl.              62.26     -4.00
CAKE    Cheesecake Factory         33.86     -2.54
TRI     Triad Hospitals            26.00     -2.80
ASD     American Standard          68.54     -1.36
WSFS    WSFS Financial             30.96     -1.44
HITK    Hi-Tech Pharmacal          27.80     -1.70
ASH     Ashland Inc                27.53     -1.07

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

ACV     Alberto Culver             51.43     -0.97
DGX     Quest Diagnostics          58.84     -1.15




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