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Email Version, Section 1, Tuesday, 10/24/2000
The SplitTrader.com Newsletter          Tuesday 10/24/2000 1 of 1
Copyright 2000, All rights reserved.
Redistribution in any form is strictly prohibited.

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In This Newsletter:
===================

Market Commentary - Can You See The Market Through the Chips?
Definition of the Day
Tuesday's Split Announcements - MWAV
Sector Watch - Breakdown by sector of market performance.
Wednesday's Expirations
Wednesday's Play-of-the-Day - UTHR
Plays - New - Updates - Drops

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


Market Commentary
=================

Can You See The Market Through the Chips?

National Semiconductor (NSM) upset the Nasdaq (COMPX) applecart
and sent the Semiconductor Index (SOX.X) down 60.89 or 7.8%, to
716.37.  Late Monday the company reported that its second and
third quarter sales and earnings would come in below the first
quarter's levels. Analysts were calling for earnings of $0.77 for
the second quarter and $0.79 for the third quarter.  Again, the
culprit turned out to be lower mobile phone chip demand. National
Semi ended the day down $12.69 or 34.7%, to $24.25.

It's Tuesday; do you know where your chip stock is?  The last up
Tuesday in the SOX.X was back in early September.  Not
surprising, given the fall from grace that this sector has been
experiencing.  Also weighing on the chip sector was a downgrade
of Texas Instruments (TXN) from Banc of America analysts.  The
firm changed its rating on TXN from Strong Buy to Buy, citing
earnings uncertainty in, yes you guessed it, their mobile phone
chip unit.  Better stick the I.V. back in, this sector isn't
healthy yet.

Meanwhile, AT&T (T), known on the Street as simply "Telephone",
announced late Monday, and confirmed today, that their Board of
Directors approved a plan to split up the business units of the
business.  AT&T's grandiose plans to incorporate local, long-
distance and web access on one cable TV system bill have been
abandoned.  The company will split up the their business units
and will consider issuing tracking stocks.  Some analysts were
hesitant about the break-up (AT&T's third restructuring since its
1986 court ordered breakup).  AT&T has said that with dropping
long-distance rates, revenues were decelerating and were not
contributing enough to the build out of their cable operations.

Tuesday's Happenings:

The spotlight was clearly on the DOW (INDU) today as the index
rallied early on and held onto its gains to close strong.  The
DOW finished up 121.35 or 1.18%, to close at 10,393.07.  It was a
day for the "old steadies" to shine.  General Electric (GE)
finished up $3.63 to close at $53.38. International Paper (IP)
had a good day, up $2.88 to finish at $32.56.  J.P Morgan also
finished strong, up $6.56 to $145.13.  Advancing issues
outnumbered declining issues 1560 to 1278.  NYSE volume was
moderate at 1.1 billion shares.

The NASDAQ (COMPX) succumbed to its old ways today, tripping over
fallen chip shares, closing down 48.90 or 1.41%, to end at
3,419.79.  The index started the day in the black, but was unable
to overcome the nagging pull from all those chip shares grabbing
at its coattails.  Intel (INTC) stumbled $1.31 to $42, Cisco
(CSCO) finished off $1.00 to $54.88. Sun Microsystems took a
break from its recent run up, ending down $0.94 to close at
$117.81.  As could be expected from this broad downdraft in the
COMPX, decliners edged out advancers 2133 to 1824.

The broader market held its own today, with the S&P 500 finishing
up 2.34 or 0.17% to close at 1389.12.  The index spent the better
part of the day on the sunny side of 1400, only to collapse
around 2pm.  It is still on its way to putting in a good
recovery, but it needs to hold 1350 to avoid another trip to the
doctor.

Treasuries faltered today on the heels of money flowing back to a
more "stable" stock market.  We shall see how long this rotation
of funds can keep up.  The 30-year ended the day down almost a
point, or 27/32 to yield 5.74.  The benchmark 10-year note
slipped 10/32 to yield 5.63.  There was no economic data released
today, but watch for the Existing Home Sales number to come out
tomorrow followed by the granddaddy of them all, the Employment
Report before the bell Thursday.

Sectors and Stocks On the Move:

The Financial Sector posted some gains on the day, after staying
out of Tech's way for the last few sessions.  The Broker/Dealer
Index (XBD.X) rallied 1.5% and the Bank Index (BIX.X) posted a
3.1% gain.  Some movers within these sectors include Merrill
Lynch (MER) up $1.56 to $65.25 and American Express (AXP) up
$2.75, closing at $57.13.  Citigroup also had a good day,
finishing up $1.25 to close at $51.69.

Despite fairly good earnings numbers from a handful of drug
stocks, the sector gave back some gains today.  Pfizer (PFE)
registered earnings ahead of estimates by $0.02, but lost $2.38
on the day to close at $43.00.  Schering-Plough (SGP) came in
with earnings that matched estimates and shed $0.50 to finish at
$52.50. The Drug Index (DRG.X) was off 0.7%, but kept its recent
up trend in place.

It is worth revisiting the Semiconductor Index (SOX.X) for clues
as to what may be going on behind the numbers.  The semis have
grabbed more of their fair share of the headlines lately and have
served as an adequate diversion to what is really going on behind
the upgrades, downgrades and disasters du jour.  When a sector
that is so all encompassing within the NASDAQ gets a case of the
jitters, all is not well.  It has been argued that the NASDAQ
cannot possibly move higher without the semis on board.  This is
going to be a tough row to hoe, especially with all the numbers
flooding us almost every day.  Until we can get a string of days
without pre-announcements, industry data or ratings revisions,
the SOX is going to remain at these low levels.

The SOX is disguising notable moves in the Biotech Sector (BTK.X)
and the relative strength of the Software Index (GSO.X).  Both
are not out of the water yet, but when the hyper levels of news
we have been experiencing comes to a halt in a few weeks, these
may be good places to look for profitable long candidates.

Looking Forward, Always Forward:

As of the writing of this piece, Nortel Networks (NT) had just
reported earnings and was down in after hours trading.  I don't
normally like to mention after hours moves in stocks, because
often they are not meaningful and come on choppy, light trade.
However, with NT being part of the far-reaching optical/telecomm
sector, the stock could have a significant impact on trading
tomorrow.  Bottom line is that NT reported earnings of $0.18 a
share, beating First Call estimates by $0.01, but the Canadian
company noted that optical network sales were short of most
estimates.  NT shares were recently down 20% in after hours
trading.

Looking at the indicies, it is not unusual to get very volatile,
choppy trading after a supposed market bottom.  We are witnessing
this right now and probably will be on this Tilt-a-Whirl for a
few weeks.  It is healthy market action, which weeds out the fast
money.  Essentially, nobody wants to miss a run off of these
levels.  As everyone piles in for the ride, we naturally have
pullbacks as the fast money sells out for a slight gain.  These
dips will be significant as long as there is still lingering fear
in the markets.  As mentioned above, the semis are stoking the
"fear factor" and keeping a lid on the upside potential for the
time being.  We need to see more sideways action, (which may
include some more runs at the lows) before we can move forward
and leave the lows behind for good.  As always, keep those stops
activated and take profits earlier than later for the near term.

Chart of the Market Volatility Index:



Trade Smart!

Craig Seidler
Assistant Editor


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Definition of the Day
=====================

Scalping

A type of trade in which a stock may be purchased and sold, or
vice versa, within a matter of seconds or minutes. A trader enters
into this type of trade with the intention of making a small
amount, say 1/4 or 1/2 a point.

For the complete definition, please go to:
http://members.splittrader.com/glossary/viewglossary.asp?glossaryid=446



Tuesday's Split Announcements
=============================

Tuesday, October 24, 2000, Before the Bell

M~Wave Announces 2:1 Stock Split, Third Quarter Numbers Released

Before market hours today, M~Wave Inc. (Nasdaq: MWAV) announced
its Board of Directors approved a 2-for-1 stock split of the
Company's common shares. Additional shares will be issued in the
form of a 100% stock dividend, payable to eligible shareholders on
November 28, 2000. This will mark the first stock split issued by
MWAV since the Company began trading in 1992

For the complete announcement, please go to:
http://members.splittrader.com/announcements/102400_1.asp

===

Tuesday, October 24, 2000, After the Market

Logistics Company Announces Stock Split

After the closing bell, C.H. Robinson Worldwide Inc (Nasdaq:CHRW)
announced that its Board of Directors declared a 2-for-1 stock
split to be paid in the form of a 100 percent stock dividend. The
payable date is December 1, 2000.

For the complete announcement, please go to:
http://members.splittrader.com/announcements/102400_2.asp



============
Sector Watch
============

As of Market Close - Tuesday, 10/24/2000

                                  Key Benchmarks
Broad Market           Last     Support/Resistance   Alert
****************************************************************

DOW   Industrials      10,393       9,650  10,600
SPX   S&P 500           1,398       1,305   1,420
COMPX NASD Composite    3,419       3,000   3,650
OEX   S&P 100             738         680     750
RUT   Russell 2000        487         455     500
NDX   NASD 100          3,353       2,950   3,700
MSH   High Tech           931         825     990

BTK   Biotech             746         630     800     **
XCI   Hardware          1,241       1,100   1,310
GSO.X Software            420         355     455
SOX   Semiconductor       716         600     805     **
NWX   Networking        1,106       1,010   1,200     **
INX   Internet            344         275     400

BIX   Banking             559         505     565
XBD   Brokerage           613         555     630
IUX   Insurance           786         720     790

RLX   Retail              771         695     785
DRG   Drug                420         395     430     **
HCX   Healthcare          868         825     900     **
XAL   Airline             133         124     140
OIX   Oil & Gas           306         304     328

Five alerts were triggered in the past two sessions, all at
resistance.  The SOX triggered an alert right at resistance, then
got hammered.  Lowering resistance (BIX, XBD, RLX).  Raising
resistance (BTK, SOX, NWX, DRG, HCX).

This section of the investment advisory website highlights
SplitTrader.com's stated Sector Watch across broad market indices
and industry sectors. SplitTrader.com is the only website that
states and regularly updates its Sector Watch across industry
sectors.  Investors who reference this section first before
planning their trades will gain a decided advantage. The time
horizon of our stated Sector Watch is generally 2-3 weeks and is
based upon a number of fundamental, technical and sentiment
indicators.

An important feature to our stated Sector Watch is the key
benchmark levels. These levels represent important near-term
support and resistance points. By viewing the sliding bar for
each index, investors can quickly view the relative strength of
our position and better anticipate when we are likely to change
our Sector Watch. These benchmarks are determined using technical
and sentiment indicators. It's important to realize that our
Sector Watch may be contrary to the overall trend when compared
to longer-term moving averages. This is because our stated Sector
Watch is designed to help investors take positions before others
see major trend reversals. For each sector, we highlight the index
symbol, key benchmarks, last level, stated Sector Watch and the
date we changed our position (since).

For industry sectors signaling BULLISH, investors may want to
consider long/call positions. For sectors signaling BEARISH,
investors may want to explore short/put positions. For sectors
flashing Neutral, investors may want to develop hedge positions.
As investors allocate capital, we encourage BULLISH traders to
pursue industry sectors that are trending higher and trading above
moving averages and BEARISH traders to pursue sectors trading
below declining moving averages. Investors can view these moving
averages over a six-month chart by double clicking on the industry
indexes links within the matrix.



=======================================
Wednesday's Expirations by Payable Date
=======================================

None


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=====================
SplitTrader.com Plays
=====================

The PLAY LEGEND:

SplitTrader.com Play Recommendations.

Updates are just that - updates on continuing plays
New plays are brand new for the newsletter.
Closing plays are plays that we feel have lost the advantage.

You will see:
Stock Symbol, Company Name, Closing Price, Change for the day,
and (change for the week)
Picked at date and Change since picked

Terms:
BoD = Board of Directors meeting
ADV = Average Daily Volume
dma = daily moving average

On the SplitTrader.com website we have very detailed profiles
for the stocks we play.  Please take the time to visit the site
and look up a stock's profile if you are interested in more
information.
================================================================

WEDNESDAY'S PLAY-OF-THE-DAY
===========================

Tuesday, October 24, 2000
=============================

UTHR - United Therapeutics $52.94 -4.00 (-6.81)

Tuesday's Comment:

Investors of United Therapeutics (UTHR) have seen their
holdings fall nearly 60% over the last few months and today
became just another day of routine selling. A developer of
vascular and pulmonary treatments, UTHR's shares slid an even
$4.00 to close at $52.94.  So why the fall?  We think that the
company's lack of earnings (UTHR posted a lost of $2.82 per
share last year) might have a lot to do with it. Lately,
companies that are not posting positive earnings have been
getting punished. Good volume and a strong downtrend suggests
that this trend may continue for UTHR. To start us lower, we'd
like to see volume increase to 500 thousand shares, as the
shares trade lower. If this occurs, we'll be looking for a
price target of $40 to hold the first major resistance base.
With that said, we'll expect additional resistance to come
just lower at $35.  Today's sharp decline through the recent
low of $55 tells us that lower lows could be approaching.
Watch for improved volume to help reconfirm lower prices. If
UTHR hits either of these two resistance levels, but does not
immediately penetrate on good volume, then consider locking in
gains. On the upside, we'll look for initial support to come
at $55 (previous resistance) and higher up at the $58 mark.
Above this level, our stop of $59 will help cut our losses
should a quick trend reversal take place. Confirm short
entries with weakness in the AMEX Biotech Index (BTK).

Picked on October 24th @ $52.94
Change since picked 0.00





NEW SPLIT RUN PLAYS 10/24/00
============================

None



NEW SPLIT CANDIDATE PLAYS 10/24/00
==================================

ENZN - Enzon $75.25 +2.03 (+$4.25 this week)

The biotechnology stocks are flying, which is why we feel it is
appropriate to add Enzon to our play list.  The company owns a
proprietary technology that has proven effective for the treatment
of a rare immunodeficiency disease known as the Bubble Boy
disease.  In addition, ENZN has two products in clinical
development and has formed over 15 strategic partnerships to
further develop products using its technology.  Last quarter, ENZN
approached profitability with a loss of only $0.03, which was a
penny above consensus estimates.  The company will report its next
quarterly results in early December and is expected to post a loss
of one penny.  With so many biotechnology firms still
unprofitable, the fact that ENZN could soon turn a buck is a
positive development.  The company has never split its stock, but
with a stock price in the $70's, a split announcement becomes
increasingly likely.  However, ENZN will have to increase its
number of authorized shares if it wants to split its stock 2:1.
Earlier this month, ENZN's stock successfully tested its 50-DMA.
Today, the stock established a new high at $77.50, which is an
exceedingly rare event in this market, which could attract the
attention of momentum investors.  Be careful, though, because the
stock is fast approaching a short-term overbought condition.
Longer-term technical indicators look pretty good.  The MACD
issued a buy signal last week.  OBV and Money Flow are both solid
and are trending higher.  We are setting our initial stop at
$71.00, and we will raise this stop if the stock keeps moving
higher.  The short-term resistance is the newly established high
at $77.50.  Most likely, we will exit this position either through
a stop or immediately following a split announcement.

Picked on October 24th @ $75.25
Change since picked +0.00



SPLIT RUN PLAY UPDATES 10/24/00
===============================

None



SPLIT CANDIDATE PLAY UPDATES 10/24/00
=====================================

BEAS - BEA Systems $83.50 -2.69 (-2.06)

BEA Systems hit an all-time high on Monday. Shares of the
application integrator traded as high as $89.50 before pulling
back. The stock revisited its high on Tuesday morning but soon
came under pressure as the NASDAQ moved lower. BEAS ended the
session in negative territory, closing at $83.50 on light volume.
Hopefully the positive momentum will return as we move closer to
the company's earnings release, scheduled for November 15. We are
also looking for a split announcement with the earnings release.
In the meantime, support is the October 20 low of $81.81 with
additional support at $80.69, the October 18 close. Resistance has
moved down to the October 20 close of $85.56 and then the all-time
of $89.50. We would like to see a bounce off of $81.81 or a move
above $85.56 on midday volume greater than 4 million shares before
we start new plays. Our stops remain at $80.50 to limit losses.

Picked on October 22nd @ $85.56
Change since picked -2.06

===

BLDP - Ballard Power Systems Inc. $108.00 +4.00 (+7.50)

On Tuesday, shares of Ballard Power Systems traded as high as
$109.00 after the company announced an agreement with a Japanese
electric company.  The agreement calls for for Ballard to supply
Matsushita Electric Works with its fuel cells. Matsushita will use
the fuel cells for field tests and demonstration of their compact
power generators. Investors were obviously please with the news,
as BLDP gained 4 percent for the day on above-average volume of
441,700 shares. The stock mimicked the NASDAQ Composite Index
(COMPX), rising steadily until noon and trailing off in the
afternoon session. This week's advances have consistently taken
the stock through resistance levels on rising volume, a bullish
sign. All of the previous resistance levels have now been
conquered, as BLDP looks to be cranking up for a nice earnings
run. As a reminder, earnings are due out next week.  We will exit
this play by October 31, per our normal policy to sell before
earnings announcements.  Support for BLDP will like come at
$105.00, followed by the 50-dma of $102.00. Resistance will likely
exist at $110.00 and $115.00. Look for a sudden rise on good
volume or a quick bounce off a support level to trigger a possible
entry point for a new play. We will now adjust our stop loss order
to $102.00 to lock in a small profit on this play. Please review
our IN PLAY section daily for changes to this and all our stop
orders.

Picked on October 15th @ $98.00
Change since picked +10.00

===

ELNT - Elantec Semiconductor $111.88 +2.38 (+7.25)

Talk about bucking a trend!  The Semiconductor Index (SOX) dropped
a very painful 60.9 points today and yet ELNT managed to surge to
a new high.  Even though ELNT did slip from its best levels for
the day, we are very encouraged that the stock enjoyed continued
interest on the heels of its solid earnings report from last week.
Last Thursday, this integrated circuits manufacturer reported
profits of $8.1 million or $0.33 a share.  These profits beat the
consensus estimates by six pennies.  The earnings also compared
favorably to the same year ago period of $0.08 a share.  The
company's strong earnings inspired Sutro & Company to initiate
coverage of the stock with a buy rating.  Split announcements are
commonly made in conjunction with earnings releases.  Even though
ELNT has not announced a split yet, we still feel that a split is
possible.  The Company currently has 50 million authorized shares
and only 19.5 million shares outstanding.  The last split was
announced in February 2000 when the stock was trading at $61.13.
Even if a split is not announced, we are very encouraged by the
incredible relative strength that the stock is exhibiting.  ELNT
is in a solid uptrend that is supported over the longer term by
its 50-DMA at $87.78.  There is some very short term support
offered by the 5-DMA at $103.00.  However, due to the fast start
of this play and the fact that the stock is nearing a short-term
overbought condition according to the RSI, we are raising our stop
to $105.00 to lock in profits.  The longer term picture is
decidedly bullish according to the solid Money Flow and OBV.  If
we are not stopped out, we will exit this position following a
split announcement.

Picked on October 22nd @ $104.63
Change since picked +7.25

===

GMST - Gemstar-TV Guide International $65.44 -1.69 (-4.56)

Gemstar has made two attempts this week to clear resistance at
around $72.00, but has yet to be successful.  Part of the problem
lies in the fact that volume has been extremely low, less than 2
million shares both days compared to the three-month average of
3.4 million.  The company has been in the news this week after one
of its subsidiaries, StarSight  Telecast Inc.,filed a patent
infringement lawsuit against EchoStar Communications (DISH). The
suit claims EchoStar infringed on StarSight patents by offering to
sell direct broadcast satellite receivers containing an unlicensed
interactive program guide. The stock should now hold support at
the 10-dma at $65.50 and then at $64.00. Resistance could poise a
problem at the 200-dma of $66.40, then the 10-dma at $67.20 and
finally the 100-dma at $67.50. At this point, we'd obviously like
to see a turn around.  The stock is capable of making advances on
volume of better than 7 million shares. Therefore, we'd like to
see at least the average of 3.4 million achieved with advances.
The direction of the COMPX will be important, too.  Look for a
rising market on good volume when considering you entry point for
a new play. Watch for selling a resistance levels or low volume as
caution flags. We will keep our stop loss at $63.00 on this play.
Check our IN PLAY section daily for any changes.

Picked on October 19th @ $69.14
Change since picked -3.70

===

IGT - International Game Technology $37.63 +0.25 (+0.69)

Leading slot machine designer, International Game Technology
continues to move higher. On Monday, IGT was mentioned in the
Robertson Stephens daily growth stock update. The report suggested
that earnings estimates could be moved up after the company
announces earnings results on November 7. Shares of IGT reached a
new 52-week high of $38.25 on Tuesday. IGT has now made 6
consecutive higher lows and the volume is starting to pick up. The
stock is building momentum while maintaining a firm upward trend.
For now, support remains at the 5-dma, now up to $37, with
stronger support at $35.50, the 10-dma. Resistance has moved up to
Tuesday's intra-day high of $38.25 and then $40. We are looking
for new entry points on a bounce off of $37 or a breakout above
$38.25 on volume of at least 350,000 shares by midday. We are
bumping our stops up to $35.50 to lock in a profit.

Picked on October 10th @ $34.88
Change since picked +2.75

===

OSIP - OSI Pharmaceuticals $76.38 +1.69 (+4.31)

OSI's integrated high-tech research and development capabilities
have made the company a leader in the field of drug discovery and
development. A solid list of major corporate partners, including
Pfizer, Tanabe, Sankyo, Novartis and Aventis provide further
evidence of OSI's strong position in the drug discovery market.
With that said, we think that the company's established position
and strong prospects for future growth have a lot to do with the
stocks solid performance. For the day, the stock gained $1.69 on
good volume of 490 thousand shares. Bucking the trend of the
broader markets, today's trading activity was a good example of
how a defensive sector can help shield a stock from a market sell-
off and simultaneously making new all time highs ($78). We
certainly hope this trend continues! As for our next resistance
point, we'll be expecting the $80 mark to offer some opposition
followed by $85 and $90. Without any previous support or
resistance levels in new territory, we'll use increments of $5 to
estimate resistance. Support should be initially felt at the
recent all time high of $74, where many traders may be looking to
pick up shares. Further down, we'll look to the 5-dma of $72.87 to
bolster resistance. Look to the AMEX Pharmaceutical Index (DRG) as
a guide before opening new positions.

Picked on October 19th @ $72.25
Change since picked +4.13

===

TRMS - Trimeris Inc. $74.13 +3.13 (+2.25)

Biotech Trimeris sold off on Monday. Shares of TRMS traded down to
an intra-day low of $70.56 on light volume during Monday's
session. However, support held and the stock bounced back on
Tuesday, hitting an intra-day high of $74.94 on strong volume.
TRMS looks healthy as we move closer to the earnings release,
expected on November 2 before the bell. We may also get a split
announcement with the earnings report. Going forward, support is
the 5-dma at $72.69, with additional support at Tuesday's intra-
day low of $71. Resistance remains at the all-time high of $75.63
and then $80. Traders could look to open new positions on a bounce
off of $72.69 or a breakout above $75.63 on volume greater than
75,000 shares by midday. We have raised our stops to $71 to
protect profits.

Picked on October 17th @ $70.63
Change since picked +3.50

===

WIND - Wind River Systems Inc. $39.38 -1.62 (-3.00)

This week has begun with the wind and the river flowing south for
shares of Wind River Systems. The company, which markets and
supports consulting services for advanced software operating
systems, has started the week on a sour note. Despite the
announcement of a new business venture with Xilinx (XLNX) to
deliver innovative field upgradable embedded systems for smart
devices, the stock has not performed well. Investors have chosen
the path of least resistance and have been selling the stock on
very low volume. Despite the recent rally on the NASDAQ,
institutional investors have shied away this week.    Earnings are
not until the end of November, so in the near term we will need
"stock appeal" and news to drive this baby higher. At its present
position, WIND has light support at the 100-dma at $38.63, then at
$36.00 and finally at $35.00. If you are considering opening a new
play on WIND, please look for positive momentum in the stock and
the COMPX and the NASDAQ Computer Index (IXCO) before opening a
new position. We will keep our stop on this play at $39.00 and
unless the stock immediately stages a turn around, we will likely
be stopped out by our next update. Please review our IN PLAY
section daily for any adjustments to our stops.

Picked on October 22nd at $42.38
Change since picked -3.00



=====
DROPS
=====


SPLIT RUN PLAY DROPS 10/24/00
=============================

None



SPLIT CANDIDATE PLAY DROPS 10/24/00
===================================

DVN - Devon Energy Corporation $57.00 -1.87 (-3.10)

Shifting their interests away from a strong advance in the oil
sector, investors took their money off the table before DVN could
reach resistance at $62.50. In advancing to the all time high of
$64.74 on the day we recommended the stock, shares have slowly
eased down to our stop of $58. Although trading volume on the
pullback stayed relatively light, which often foretells of a quick
reversal, we did not get a strong breakout in volume to the
upside. However, volume did pick up on today's fall and could mean
that more selling may be on the near-term horizon. The market for
oil stocks should remain strong over the longer term, but for now
we'll look for safer plays.

Picked on October 12th @ $64.00
Profit/Loss = -6.00 (-9%) (Stopped out on Tuesday @ $58.00)
Best Profit =  0.00 (0%)

===

SEG - Seagate Technology Incorporated $68.75 -6.56 (-10.19)

Instead of extending a run to the $80 mark, as the charts were
indicating, shares of SEG were pushed lower by more seasonal
selling in the tech market. Falling sharply lower on the day,
shares descended quickly to our stop of $72.25 before finishing
the day off at $68.75, a loss of $6.56. The volatility of the
$9.25 range from open to close could suggest that the stock is
nearing the top of an extended uptrend.  It will be interesting to
see how strength/weakness in the NASDAQ influences SEG's near-term
results.

Picked on October 22nd @ $78.94
Profit/Loss = -6.69 (-8%) (Stopped out Tuesday @ $72.25)
Best Profit = -1.44 (-2%)



===========
SHORT PLAYS
===========


NEW SHORT PLAYS 10/24/00
============================

UTHR - United Therapeutics $52.94 -4.00 (-6.81)

Investors of United Therapeutics (UTHR) have seen their holdings
fall nearly 60% over the last few months and today became just
another day of routine selling. A developer of vascular and
pulmonary treatments, UTHR's shares slid an even $4.00 to close at
$52.94.  So why the fall?  We think that the company's lack of
earnings (UTHR posted a lost of $2.82 per share last year) might
have a lot to do with it. Lately, companies that are not posting
positive earnings have been getting punished. Good volume and a
strong downtrend suggests that this trend may continue for UTHR.
To start us lower, we'd like to see volume increase to 500
thousand shares, as the shares trade lower. If this occurs, we'll
be looking for a price target of $40 to hold the first major
resistance base. With that said, we'll expect additional
resistance to come just lower at $35.  Today's sharp decline
through the recent low of $55 tells us that lower lows could be
approaching. Watch for improved volume to help reconfirm lower
prices. If UTHR hits either of these two resistance levels, but
does not immediately penetrate on good volume, then consider
locking in gains. On the upside, we'll look for initial support to
come at $55 (previous resistance) and higher up at the $58 mark.
Above this level, our stop of $59 will help cut our losses should
a quick trend reversal take place. Confirm short entries with
weakness in the AMEX Biotech Index (BTK).

Picked on October 24th @ $52.94
Change since picked 0.00



SHORT PLAY UPDATES 10/24/00
===============================

DY - Dycom Industries $42.75 +0.69 (+1.31)

Today's NASDAQ reversal did not extend to this short play.  There
appears to be some interest in picking up value stocks right now
and Dycom may qualify.  We were initially interested in this short
play because the technical picture was decidedly weak.  There was
some serious selling going on in this stock. We have seen what the
market has done to even very good companies if there is the
perception that business will slow down.  For now, the selling is
behind Dycom and we have watched the stock slowly climb higher and
approach our stop at $45.00.  The stock has formed a pretty decent
base just above $37.00.  In the past few updates, we have stated
that Dycom is probably not a very good short candidate in the
short term.  Nevertheless, it is entirely possible that this
bounce within the downtrend is ending.  The volume during this
bounce has been anemic.  When the buyers get tired, hopefully
before we get stopped out, a retest of the support seems possible.
The 50-DMA is only a half a point away from crossing below the
200-DMA at $45.53.  If this crossover occurs, it would trigger a
sell signal.  The MACD has moved into positive ground, reversing a
steep decline.  This fact continues to make us cautious.  On the
plus side, OBV and Money Flow have not recovered much, which tells
us that there is very little conviction to this bounce.  If the
stock does rollover again, you can find a trailing stop suggestion
in our In Play section.  Our current stop is $45.00.

Picked on October 1st @ $41.63
Change since picked -1.12



SHORT PLAY DROPS 10/24/00
=============================

CAKE - The Cheesecake Factory $42.13 0.00 (+2.13)

The Cheesecake Factory continued to rally on Monday. Shares of
CAKE traded as high as $42.13, breaking through resistance at $40
and closing on its intra-day high. Our stops were triggered at
$41, so we are dropping CAKE as a short play.

Picked on Oct 12th @ $36.50
Profit/Loss = -4.50 (-12%) (Stopped out on Monday @ $41.00)
Best Profit = +0.38 (+1%)


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

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of online stock traders. The newsletter is an information
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The newsletter picks are not to be considered a recommendation
of any stock but an information resource to aid the investor
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