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Daily Newsletter, Monday, 01/13/2003

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PremierInvestor.net Newsletter                 Monday 01-13-2003
                                                  section 1 of 2
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 one:

Market Wrap:      Careful What You Wish For
Watch List:       CAH, CURE, IBM, LEH, NXTL, and more...
Play of the Day:  Two Ways To Play


******************************************************************
MARKET WRAP  (view in courier font for table alignment)
******************************************************************
01-13-2003                  High    Low     Volume Advance/Decl
DJIA     8785.98 +  1.09   8869.29 8746.97   1657 mln  838/801
NASDAQ   1446.04 -  1.68   1467.35 1436.98   1565 mln  618/919
S&P 100   470.83 +  0.42   475.06  468.45   totals    1456/1720
S&P 500   926.26 -  1.31   935.05  922.17
RUS 2000  396.18 -  0.26   399.55  393.48
DJ TRANS 2387.44  - 6.23  2405.74 2377.65
VIX        27.52 +   0.39    27.83   26.31
VIXN       41.74 -   0.54    44.64   41.29
******************************************************************


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

Careful What You Wish For
by Steven Price

The last couple of weeks have been a struggle between the bears
and bulls, without either faction being right for more than a few
days. That old saying about being careful what you wish for kept
popping through my mind all day.  The bulls finally got the
confirmation rally, with point and figure buy signals and
breakthroughs of recent highs across the board in the major
indices.   The only problem was that none of those gains lasted
very long.

We have been discussing the possibility of a bearish head and
shoulders formation after the recent rally took us up to about
the same level (possibly a left shoulder) as the November highs
in the Dow, SPX and OEX.  The head of the formation would be
based on the post-Thanksgiving, December 2 high.  However, the
last time we predicted doom and gloom based on this formation, we
were dead wrong and what we thought was the head at Dow 8800
turned out to be what we are now looking at as a possible left
shoulder.  Does that mean we'll find ourselves using that 9043
trade in December as our possible left shoulder several months
from now?

The head and shoulders pattern we looked at between July and
September actually turned out to be right on, with a measuring
objective just below Dow 7200. We had a left shoulder at 8762,
head at 9077 and right shoulder at 8726.  That objective was
fulfilled back in October, and became the launch point for the
rally to the November/December highs.

This pattern has been a little harder to decipher on a short term
basis.  If a trader steps back and looks at the pattern without
trying to figure out how to trade it tomorrow, we haven't really
seen anything to tell us that the pattern has broken down.  But
that's certainly not the way it looked this morning and the rally
we saw to start the day cannot be discounted.   We started with a
rally that for all intents and purposes looked as though the head
and shoulders pattern was dead.  The right shoulder, which does
not have to come at the same level as the left shoulder, appeared
as though it was on its way to a breakout and a re-test of the
December highs. However, as quickly as it registered the new buy
signals in the Dow and SPX on the point and figure charts, the
rally faded. Those buy signals were the second in the current
rally.  The first signals came at Dow 8500, SPX 905 and OEX 460.
We then got a pullback into a column of "O" and then a rally to
this morning's buy signals, just above the previous rally tops at
Dow 8850, SPX 935 and OEX 472.50.  The OEX buy signal came last
week, and even though it reached a new high, it was not a new
signal. It did, however, add another box to the current column of
"X."

This action brings back shades of November and December, when the
second buy signals in those rallies were short lived.  In fact,
the SPX gave what appeared to be a buy signal at 925 on its
second leg of the October-November rally (topping out on November
6), hit a high of 925.66, then rolled over and headed to a low of
872.  The index then rebounded during December and on the second
leg of its November-December rally, also gave a buy signal at
940, before topping out at 954 and rolling over to a low of 869.
We are now on the second leg of a January rally which has given a
buy signal at 935.  The Oct/Nov buy signal was good for a gain of
0%, then a loss of 5.7%.  The Nov/Dec buy signal was good for a
gain of 1.4%, then a loss of 7.5%.   Once again, these results
are for the second leg of the rally, much as we are seeing now.

The Dow showed similar action to the SPX.  The second leg of the
October-November rally produced a buy signal at 8750.  It was
good for another 50 points before rolling over and hitting a low
of 8298.  The second leg of the December rally produced a buy
signal at 8900, which was good for 143 points, before rolling
over to a low of 8242. The Oct/Nov buy signal was good for a 0.5%
gain and then a 5% loss.  The Nov/Dec buy signal was good for
1.6% gain, followed by a 7.3% loss.

Certainly traders who had simply stayed long from the
corresponding buy signals I referred to back in November
(actually the second leg of the rally) would be just about where
they entered, but would have taken an awful lot of pain in the
meantime.  Those entering on the second leg of the December rally
would still be looking to break even.

Point and Figure Chart of the SPX


There are a couple of other complicating factors to playing the
current rally from the long or short side. First we have the 200
day moving averages, which are descending from the levels they
were at on the last rally attempts.  They have now moved below
the December highs and if we are going to make a run at those
December resistance levels, we will have an additional obstacle
this time around.  Back in December the 200-dmas sat in the OEX
at 493, SPX at 982 and Dow at 9177.  They now sit at OEX 476.72,
SPX 949.49 and Dow 8927.  If they continue to descend, traders
can look at the graph below to see approximately where they may
lead to resistance heading out into time. Another possibility is
that this morning's rally was a blow-off top before a reversal,
similar to what we saw on the PnF buy signals in November and
December.

Chart of the Dow


The sticking point from the short side is simply the fact that we
are still climbing higher, have not rolled over and even if the
rally cannot seem to catch any sustained momentum from this
level, it has not rolled over and shown weakness.  In fact each
pullback has found buyers, establishing a series of higher highs
and higher lows.  This morning's sell-off after the big rally
found a higher level of support than recent pullbacks and the
rally took us to a mew relative intraday high.  The close below
8800 in the Dow is significant in that it means we once again
failed to hold a rally above that resistance mark, lending
credence to the possibility of a right shoulder.

One of the catalysts for today's rally was OPEC, which met over
the weekend to cement an increase in oil production.  The group
raised its quota by 6.5%, or 1.5 million barrels a day, in an
attempt to offset shortages and higher prices resulting from the
Venezuelan strike.  Venezuela has gone from producing about 3
million barrels per day to about 500,000. The quota increase will
not take place until February, which means a lag in the
replenishment of diminishing reserves, but the price of Crude Oil
Futures still took an immediate drop, falling to just over $31
per barrel, then bouncing to close near unchanged on the day.

AOL Time Warner (AOL) also got a boost to start the day, as Steve
Case stepped down as chairman. AOL founder Case led the
disastrous merger which brought along with it many additional
"surprises" about past accounting at AOL and saw shares drop 70%
since the companies joined. Case said his presence at the annual
meeting would have been a distraction and made the move that has
been the subject of speculation for months.  There is now talk
that the company may spin off the AOL unit.  That would be a
pretty strong statement that they would like a do-over and an
admission that one of the business world's biggest mergers was an
abject failure.

Dell was downgraded by J.P. Morgan, which cited risks to the PC
market heading into a traditionally slow season. Morgan said to
expect more aggressive pricing and lower margins and also
mentioned the stock's current placement in the upper end of its
trading range. The stock had once again been approaching
resistance near $30, which was the high end of its range for the
year, before the end of last week when rumors began circulating
that the company would issue a secondary offering.  The stock
began to sell-off last Thursday after hitting an intraday high of
$29 and traded as low as $25.43 before rebounding to finish the
day at $25.98.  DELL also broke decisively below its 200-dma of
$26.61, which had served as support throughout the December
market swoon.   The downgrade spilled over to the chip stocks,
with the Semiconductor Index losing six points and heading back
down to support above 330.  The SOX closed at 333 and we should
get a better idea whether the groups will be re-testing
resistance in the 365 area, or breaking down below 330 and
testing support at 300, when Intel releases earnings Tuesday
after the bell.

The Nasdaq Composite also gave up some ground after moving
through its 200-dma.  The last couple attempts at that barrier
have either failed the same day or held only briefly, resulting
in massive sell-offs after the failure.  So far we've held above
that level, but bulls beware if we break down below it.

Chart of the NASDAQ Composite


The market close with the Dow up only a point, OEX up only 0.42
and the SPX and COMP both in the red, actually looks bearish.  We
once again got a close beneath 8800 in the Dow after what may
turn out to be a blow-off reversal top.  That being said, we
still got those PnF buy signals and no collapse on the intraday
sell-off. We are seeing some very conflicting signals right now
and keeping an eye on history is probably the best approach to
managing risk.  Traders who are looking for an upside breakout
may be forced to wait for a re-test of the August/December highs,
while those looking for a breakdown  should look for a re-test of
last week's lows.


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

Cardinal Health - CAH - close: 60.65 change: -1.13

WHAT TO WATCH: On the most recent installment of the Watch List
we mentioned Wellpoint (WLP) as a possible short play.  That
stock continued to drift lower on Monday, as shares reached a new
relative low.  CAH looks like another tempting short play within
the healthcare group.  Shares underperformed the market today
after failing to move above several converging moving averages
last week.  The rolling MACD and bearish daily stochastics
(5,3,3) suggest that a retest of the December low ($56.80) might
be forthcoming.  P-n-f chartists will be looking for the stock to
reverse into a column of "O's" with a trade at $60.00.  A move
below this level would yield a possible action point to go short.
CAH announces earnings on January 23rd.




---

Curative Health Services - CURE - close: 15.93 change: +0.52

WHAT TO WATCH: There's nothing like a little good news to keep
the bears on their toes.  CURE rebounded from its 50-dma ($15.39)
today after the company reaffirmed 2003 guidance of $1.47-
$1.53/share.  This announcement is significant because it allays
some investors' concerns that cutbacks in California's Medicare
program would have a negative impact on their bottom line.  But
although the news was good for a 3.3% gain in CURE, shares
weren't able to clear the recent trend of lower highs.  The 30-
minute chart shows that the stock tested that trend on Monday
morning.  A break above this descending resistance level would be
a positive technical development that could bring more buyers out
of the woodwork.  Bulls can already be encouraged by the strong
volume behind today's gains and the reversing daily stochastics
(5,3,3).  Watch for a move above today's high ($16.54) to open
the door to a possible retest of the December highs near $18.00.
Entries could also be evaluated on another pullback to the 50-
dma.




---

Duke Energy - DUK - close: 17.87 change: -3.13

WHAT TO WATCH: DUK was spanked for a loss of nearly 15% today
after the company reduced its 2002 earnings expectations.  Citing
a challenging industry climate, Duke said that they now expect to
earn $1.85-$1.95/share for the full year.  Consensus estimates
were for a result of $1.91/share.  What's technically interesting
about DUK is the fact that today's decline took the stock below
critical support at $18.00.  Aggressive bears can watch for a
continued decline from current levels to clear the way for a
possible retest of the October lows near $16.50.  Further
negative news could send shares towards the $15.00 area.
Alternatively, a failed rally back to today's high ($18.99) might
also provide an entry point.  While DUK might be due for some
consolidation after today's big move, the bearish oscillators,
double-bottom p-n-f sell signal, and strong volume are all
hinting at further downside.  This would be classified as a high-
risk/reward play.




---

Intl. Business Machines - close: 87.51 change: -0.17

WHAT TO WATCH: Keep an eye on Big Blue!  The stock is hovering
just below resistance at $90.00 after gaining nearly 15% in only
two weeks.  We think the bulls will have a difficult time
clearing this obstacle before the earnings report on Thursday.
Large institutions probably won't be willing to place large bets
on IBM until they get a better feel for the company's business
outlook.  Furthermore, negative quarterly reports from fellow
tech giants INTC (Tuesday evening) and MSFT (Wednesday evening)
could spark a round of profit-taking in IBM.  Speculative short-
term traders could target bearish entries at current levels,
using a stop slightly above $90.00 mark.  Just remember to close
those positions before the company announces on Thursday night!
Positive results could send the stock hurtling towards the $100
mark.




---

Lehman Brothers - LEH - close: 60.26 change: +0.90

WHAT TO WATCH: With the market showing a lot of uncertainty on
Monday, traders and Wall Street pundits are pondering whether the
rally during the first two weeks of the year will having any
staying power.  One piece of evidence that supports the bulls is
the fact that the equity gains have been accompanied by solid
gains in the financial group.  The BXK.X banking index has moved
up to solid resistance at 800.  This level has thwarted multiple
rally attempts since August.  A breakout for the index would bode
well for the related groups, including the brokerages.  LEH is
looking pretty strong, having recently broken through its
converging 50-day and 200-day moving averages.  The stock hit a
relative high after it moved through the $60.00 level.  Long
entries could be considered on a move above today's high
($60.75), initially targeting a test of the November highs near
$64.00.




---

NCR Corp - NCR - close: 25.80 change: -0.37

WHAT TO WATCH: Shares of this computer services provider have
ticked steadily higher in 2003.  Recent gains have taken NCR
above its 50-dma at $24.67 and the October high of $25.80.  The
break above the second level prevented shares from forming a
classic Head & Shoulders pattern on the daily chart.  Today, the
stock was pressured by news that DELL would begin selling retail-
store systems based on personal computers.  This will put the PC
company in direct competition with IBM, SUNW, HPQ, and NCR.  We
like NCR as a possible long play if the bulls can shrug off
today's losses and move above the relative high at $26.30.  If
this level is cleared, there are no major resistance levels
standing in the way of a rally to the November highs at $29.00.
NCR announces earnings on January 23rd.




---

Nextel Communications - NXTL - close: 14.20 change: +0.05

WHAT TO WATCH: NXTL came within a mere nickel of its 52-week high
($14.67) on Monday.  Although the daily chart is looking
extended, very aggressive traders could think about entering long
positions on a breakout above that level.  The more prudent
strategy would involve waiting for a pullback to the 50-dma at
$12.83.  Other than psychological resistance at $15.00, there
aren't any apparent levels of resistance until the July 2001
highs near $18.00.




---

Pulte Homes - PHM - close: 51.65 change: -0.30

WHAT TO WATCH: The home construction index has strung together an
impressive six consecutive days of gains...But the bulls now face
a significant challenge in the form of the 200-dma (331).  That
moving average was tested on Monday morning before the index
gravitated back to its short-term uptrend.  This suggests that
the index may experience some consolidation of its recent gains.
Keeping this possibility in mind, bullish traders can keep an eye
on PHM.  The stock broke through resistance at $52.00 on Monday
and moved to levels not seen since July.  Continued strength in
the homebuilding sector could send shares towards the June highs
near $60.00.  Loose resistance at $55.50 might give those with a
very short-term strategy a more reasonable target to aim for.
Entries could be gauged at current levels, but remember that
profit-takers might emerge without warning.  More cautious
traders would be better off waiting for a pullback to
psychological support at $50.00.





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

Biotech HOLDRS - BBH - close: 91.20 change: +1.80 stop: *text*

Company Description:
A HOLDR is a type of security created by Merrill Lynch and traded
on the American Stock Exchange. The biotech HOLDRs is a basket of
leading biotech companies and allows investors to buy and sell
the entire group in one equity. The BBH components are made up of
these stocks: AFFX, ALKS, AMGN, ABI, CRA, BGEN, CHIR, ENZN, DNA,
GENZ, GILD, HGSI, ICOS, IDPH, IMNX, MEDI, MLNM, QLTI, SEPR,
SHPGY.

Why We Like It:
While we don't purport to have a crystal ball here at Premier
Investor, we CAN say with a fair amount of confidence that this
week will be a wild ride for tech investors.  Intel reports
earnings tomorrow. Symantec, Yahoo, and QLogic announce on
Wednesday.  And to top it off...Microsoft, IBM, and Sun
Microsystems are on Thursday.  Those are just some of the high-
profile tech companies that are releasing their quarterly results
over the next few days.  We think chances are pretty good that
some major upside or downside surprises will lead to unusually
volatile movements in the NASDAQ.  Taking new positions in a tech
stock would be akin to a crap shoot; nobody knows what's going to
happen.  Against this backdrop of uncertainty, why are we adding
the Biotech HOLDRS to the play list?  Simply put, we believe the
BBH will be well-insulated against any wild gyrations in the
market.  Our reasons for this are two-fold.  First, there are not
many major biotech companies reporting this week.  The only
significant report will be from Genentech (DNA) after the bell on
Wednesday.  Sector leaders AMGN and BGEN don't announce until the
following two weeks.  Our second reason is that because we're
playing the HOLDRS, any sharp movement in a single stock will
have a relatively small impact on the BBH.

At this point you're probably wondering why we're bullish on the
biotech sector in the first place.  What drew our attention to
the group is the recent rally in the BTK.X biotech index, which
posted solid gains over the past three days.  The BTK.X has shown
good relative strength versus the broader market and is sitting
just below its 200-dma at 366.  AMGN is looking strong as well,
having just produced a three-box p-n-f reversal after rallying
above short-term resistance.  Hardcore point-and-figure fans will
also be interested to know that the biotech sector's bullish
percent has moved into bull correction status (source: Dorsey
Wright & Associates).  That's a sign that perhaps the bears are
on the defensive and risk is weighted in the bulls' favor.  In
terms of the actual biotech HOLDRS, we like how the stock has
moved back to the top of its multi-month trading range between
$84 and $92.  A break to the upside could send shares towards the
May highs near $103.  A trade at $92.00 would also create a
double-top p-n-f buy signal.  Our entry trigger for this play
will be at $92.12, one cent above the November high.  Some
traders may only want to take half positions at this level, and
then round out with a full position if the BBH takes out the
August high of $93.00.  We're not expecting this level to provide
much resistance.  If we're triggered under this scenario, our
stop will be set at $86.94, safely below the 50-day and 200-day
moving averages.

But because we'd like to take advantage of a pullback in the
HOLDRS, this play also has an alternate entry point.  We will
activate the play if the stock moves lower from current levels
(WITHOUT first reaching our upside trigger), moves below $86.75,
and then confirms the bounce by moving back above $87.00.  To put
it another way: If BBH falls under $86.75, an entry trigger will
be placed at $87.01.  If the play is activated under this second
scenario, we'll use a fairly tight stop at $85.94.

Picked on January xxth at $xx.xx <- see text
Results since picked:      +0.00
Earnings Date                N/A







=================================================================
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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
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presented. All investors should consult a qualified professional
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factors beyond our control.

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Copyright ) 2003  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.
PremierInvestor.net Newsletter                  Monday 01-13-2003
                                                   section 2 of 2
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
  New Bullish Plays:     BBH
  Play Comments:         TDS (bearish)

Trading Ideas
  Value Plays With Bullish Signals
  Breakout to Upside (Stocks $5 to $20)
  Breakout to Upside (Stocks over $20)
  Breakout to Downside (Stocks over $20)
  Recently Overbought With Bearish Signals (Stocks over $20)



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

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

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

Biotech HOLDRS - BBH - close: 91.20 change: +1.80 stop: *text*

Company Description:
A HOLDR is a type of security created by Merrill Lynch and traded
on the American Stock Exchange. The biotech HOLDRs is a basket of
leading biotech companies and allows investors to buy and sell
the entire group in one equity. The BBH components are made up of
these stocks: AFFX, ALKS, AMGN, ABI, CRA, BGEN, CHIR, ENZN, DNA,
GENZ, GILD, HGSI, ICOS, IDPH, IMNX, MEDI, MLNM, QLTI, SEPR,
SHPGY.

Why We Like It:
While we don't purport to have a crystal ball here at Premier
Investor, we CAN say with a fair amount of confidence that this
week will be a wild ride for tech investors.  Intel reports
earnings tomorrow. Symantec, Yahoo, and QLogic announce on
Wednesday.  And to top it off...Microsoft, IBM, and Sun
Microsystems are on Thursday.  Those are just some of the high-
profile tech companies that are releasing their quarterly results
over the next few days.  We think chances are pretty good that
some major upside or downside surprises will lead to unusually
volatile movements in the NASDAQ.  Taking new positions in a tech
stock would be akin to a crap shoot; nobody knows what's going to
happen.  Against this backdrop of uncertainty, why are we adding
the Biotech HOLDRS to the play list?  Simply put, we believe the
BBH will be well-insulated against any wild gyrations in the
market.  Our reasons for this are two-fold.  First, there are not
many major biotech companies reporting this week.  The only
significant report will be from Genentech (DNA) after the bell on
Wednesday.  Sector leaders AMGN and BGEN don't announce until the
following two weeks.  Our second reason is that because we're
playing the HOLDRS, any sharp movement in a single stock will
have a relatively small impact on the BBH.

At this point you're probably wondering why we're bullish on the
biotech sector in the first place.  What drew our attention to
the group is the recent rally in the BTK.X biotech index, which
posted solid gains over the past three days.  The BTK.X has shown
good relative strength versus the broader market and is sitting
just below its 200-dma at 366.  AMGN is looking strong as well,
having just produced a three-box p-n-f reversal after rallying
above short-term resistance.  Hardcore point-and-figure fans will
also be interested to know that the biotech sector's bullish
percent has moved into bull correction status (source: Dorsey
Wright & Associates).  That's a sign that perhaps the bears are
on the defensive and risk is weighted in the bulls' favor.  In
terms of the actual biotech HOLDRS, we like how the stock has
moved back to the top of its multi-month trading range between
$84 and $92.  A break to the upside could send shares towards the
May highs near $103.  A trade at $92.00 would also create a
double-top p-n-f buy signal.  Our entry trigger for this play
will be at $92.12, one cent above the November high.  Some
traders may only want to take half positions at this level, and
then round out with a full position if the BBH takes out the
August high of $93.00.  We're not expecting this level to provide
much resistance.  If we're triggered under this scenario, our
stop will be set at $86.94, safely below the 50-day and 200-day
moving averages.

But because we'd like to take advantage of a pullback in the
HOLDRS, this play also has an alternate entry point.  We will
activate the play if the stock moves lower from current levels
(WITHOUT first reaching our upside trigger), moves below $86.75,
and then confirms the bounce by moving back above $87.00.  To put
it another way: If BBH falls under $86.75, an entry trigger will
be placed at $87.01.  If the play is activated under this second
scenario, we'll use a fairly tight stop at $85.94.

Picked on January xxth at $xx.xx <- see text
Results since picked:      +0.00
Earnings Date                N/A





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

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

Telephone Data Sys. - TDS - cls: 45.76 chg: +1.11 stop: 47.11

Our TDS play started off on a promising note last Friday when
shares tagged new long-term lows.  However, a day-and-a-half of
short covering has brought the stock back above the $45.00 level.
But despite the recent gains, shares haven't yet approached our
stop-loss at $47.11.  On Tuesday we'll be looking for TDS to
reverse course and move back towards the relative low of $43.20.
At this point it looks like the broader market may dictate where
TDS moves next.  We could very easily be stopped out if the
NASDAQ heads sharply higher tomorrow.  However, we're not
expecting the bulls to rush into new positions ahead of several
key earnings reports.  TDS will have a difficult time holding
above $45.00 if the overall tech sector is sinking.





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

FNM     Fannie Mae                 70.00     +1.35
BEC     Beckman Coulter            29.70     +0.9

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

OMG     OM Group                    9.19     +1.05
GSOF    Group 1 Software           17.18     +1.07
CTEC    Cholestech Corp             8.18     +1.79
CELL    Brightpoint Inc             9.65     +1.32

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

ESRX    Express Scripts            53.99     +1.67
SFNT    Safenet Inc                31.99     +1.49
BBH     Biotech HOLDRS             91.20     +1.80
RTEC    Rudolph Technologies       20.89     +1.66

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

CAKE    Cheesecake Factory         32.39     -1.47
SCHL    Scholastic Corp            34.08     -1.93
RE      Everest Re Group           53.40     -1.53
RNR     RenaissanceRe Holdings     38.62     -1.80
IHP     IHOP Corp                  23.34     -1.43
AEP     American Electric Power    27.09     -1.34
COH     Coach Inc                  31.96     -1.44

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

CAH     Cardinal Health            60.65     -1.13
UST     UST Inc                    33.87     -0.73
MRVL    Marvell Technology Group   21.85     -1.06
UTH     Utilities HOLDRS           65.80     -1.36




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