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Email Version, Section 1, Sunday, 12/26/99
The Newsletter           Sunday 12/26/99 1 of 1
Copyright 1999, All rights reserved.  
Redistribution in any form is strictly prohibited.  

- Your World Leader for Trading Stock Splits on the Internet - 

Posted online for members at:

The entire newsletter is best viewed in COURIER 10 for alignment
To stop receiving this SplitTrader Update,
send email to

In This Newsletter:
Market Commentary - We wish you a Merry Christmas
Split Announcements - none (believe it or not)
Sector Watch - Breakdown by sector of market performance.
Event Calendar - Next Week's Economic reports
Editorial - Nortel Networks
Plays-of-the-Day - Home Depot (HD) and Analog Devices, Inc. (ADI)
Stock Plays - New - Updates - Drops
New Split Candidates 


Market Commentary

We wish you a Merry Christmas.

It's the Happy New Year part that some market technicians are 
beginning to worry about.  The holiday spirit has all but 
permeated the market environment and everyone (but the bears) 
was cheery as all three major indices set new record highs.
It was the Dow 30 that took center stage today surpassing the 
Nasdaq's +32 point gain with its own 202 point rally.  This 
gave the index its newest 52 week high of 11408 (11443 
intraday) surpassing the August 25th close of 11326.

Investors must have been good boys and girls this year because 
it was Santa himself that rang the opening bell this morning on 
the NYSE.  The DJIA rallied strong at the open after another 
round of economic reports continued to show how fit the economy 
really is.  Not that anybody cared.  It's been a strange week.  
The Dow fell over 110 points on Monday ahead of the Fed's Dec. 
21st meeting on fears that Alan Greenspan might not wait for 
the February meeting to raise rates despite widespread 
assumptions that he would (wait).  The Fed chose not only to 
leave rates unchanged but to leave the bias unchanged as well.  
Armed with the good news, traders rejoiced and the rally 

The buzz word today was the breadth.  Of course, when is the 
buzz word not the market breadth?  This time however, instead 
of being a sore spot for market bulls, we actually got a 
"widening" in the market surge.  Sector rotation was the other 
catch word-du-jour.  The Internet sector took it on the nose 
with a decided lack of participation in the rally while other 
sectors like: Banking, Airlines, Drugs, Chemicals, Cyclicals, 
Retail, and the Transports all ended the day higher.
Representing this wider market rally was the S&P.  The S&P 500 
index was carried to a new closing high of 1458.34 on a strong 
22.35 point gain.  The index is up 18.6% for the year compared 
to the Russell 2000 which is only up 14.3% for the year after 
hitting its own 52 week high closing at 482.11 (+4.49).  

(chart of the S&P 500)

(chart of the Russell 2000)

It is hard to talk about records with out discussing the 
Nasdaq.  We know it seems like that is all anyone ever talks 
about these days, but as investors we need to follow the money.
The tech haven that we call the Nasdaq has already set 12 
closing highs in December, 29 records in the last 39 trading 
sessions, and the 58th record high for the year.  While the Dow 
is up over 24% for the year compared to 16% for 1998, the 
Nasdaq is up over 81% YTD and more then doubling last year's 
40%.  The big story today was the Nasdaq's brush with 4000.
Just after 12:00 noon EST, the index hit a high of 4001.63.  
While we didn't spend much time there, it was history in the 
making.  The Nasdaq fell back to 3975 before trying to get 
another running start at crossing the 4000 mark, but it was not 
to be and the last hour saw some profit taking ahead of the 
long three day weekend.  Would you believe that we crossed 
Nasdaq 3000 on November 3rd, 1999?  How about crossing Nasdaq 
2000 on July 16th, 1998?  Imagine how far we have come from 
the October 8th, 1998 low of 1419.  Okay, put away those 
calculators, I'll tell you, its about 180% in 14 months.

(chart of the Nasdaq)

Speaking of new highs, the bond market wasn't convinced with 
the positive economic news out this morning and proceeded to 
hit new two year highs of 6.485% before closing at 6.475%.  
Market analysts are concerned that if the bond breaks 6.5% it 
might be the catalysts to spark a strong sell off in the tech 
stocks.  This is scary since we've gone from under 6.2 to over 
6.45% in less than two weeks.  In the mean time, economists 
were pondering over the personal income numbers released by the 
Commerce Department this morning.  Beating estimates of 0.2% 
with an increase of 0.4%, personal income still came in at its 
lowest pace since August.  Personal spending jumped 0.5% and 
matched estimates.  Maybe the bond market is concerned with our 
personal spending for December.  Current estimates for December 
are astonishingly high and aren't due to be released until the 
day before the Fed meeting in February.  Also on the caution 
screen was this morning's report of our 11th week that initial 
jobless claims have remained under the 300,000 mark.

(chart of the bond yield)

Here we are, five trading days left in the year and a lot of 
you are going to be home, logged on, and watching the market 
with an itchy trigger finger.  Our message hasn't changed; 
approach with caution.  No one really knows what is going to 
happen after next week.  Everyone agrees that the markets are 
over extended and this "bubble" we are trading in will 
eventually burst.  The problem is no one knows when it will 
burst and they don't want to be on the sidelines while their 
stock(s) continue to climb without them (and their neighbor 
across the street starts bragging about how well they did in 
the market!).  If only we could turn off human emotion.  Learn 
to trade logically not emotionally.  Back to the wrap...  So 
far, the meteoric rise in the markets have been fuelled with a 
tidal wave of money.  This week alone has seen over $10 billion 
in mutual fund inflows.  Last week was higher with $11 billion.  
December is shaping up to be a big winner with inflows of over 
$25 billion - way above normal.

January is going to be very busy.  With the Nasdaq up over 80% 
for the year, mutual funds and individual investors are going 
to be waiting for January so they can sell some of these stocks 
and lock in part of this profit.  It isn't money until you sell 
it.  This way they can stretch the tax consequences across all 
of year 2000.  The conflict here is there are a large number of 
both institutional and retail investors that have held their 
money on the sidelines waiting for Y2K to happen.  Once the 
calendar turns, there will be a flood of new money to jump into 
the market.  How these two forces will prevail in two weeks is 
anyone's guess.  We will have to focus on Q1 earnings soon and 
some are saying January may be the market top.  With stocks at 
staggering gains for the year, perfect earnings have already 
been priced in.  We could see a classic sell-on-the-news event 
with the whole market suffering from post-earnings depression.

Next week appears to be depression free.  A percentage of next 
week's trades will not actually settle until the new year.  
This is going to put negative pressure on any type of volume as 
traders avoid making plays to prevent them from becoming a 
hassle first part of next year.  However, just as we mentioned 
above, there will be no real pressure to sell as investors wait 
for January.  The downside should be limited as most will be 
happy to just sit on their portfolios.  This is expected to 
create a real dry spell when it comes to volume.  Lack of 
volume normally leads to extremes in price movement.  If you 
think about it, odds are we are going to keep this rally 

New lows have been an issue for weeks now as investors and 
mutual funds finish any tax loss selling which just punishes 
the losers even more.  Big winners for the year will continue 
to garner attention as institutional buyers do some last minute 
window dressing for their end of the year statements.  This is 
bound to produce the "narrowing" leadership and narrow market 
breadth affect as the market climbs on just a few stocks.  
Since it is almost a guarantee that Greenspan will raise rates 
in February and corporate earnings and Y2K cloud up next month, 
this last week of December is like the last few days of a 
vacation.  It is going to be a bit careless as investors refuse 
to focus on what is around the corner.

With that in mind, don't forget enjoy your holidays.  There 
will be no Sunday newsletter as our staff will be home with 
their families.  We wish everyone a safe and wonderful 
Christmas and New Years season.


Split Announcements


Sector Watch

As of Market Close - Thursday, December 23, 1999 

                   Key Benchmarks
Broad Market       Bearish/Bullish  Last    Posture/Since  Alert

DOW Industrials   10,800  11,320  11,406    BULLISH  12.23 ***
SPX S&P 500        1,340   1,400   1,458    BULLISH  12.03
OEX S&P 100          700     750     793    BULLISH  12.03
RUT Russell 2000     430     450     482    BULLISH  11.12
NDX NASD 100       2,850   3,150   3,591    BULLISH  12.03
MSH High Tech      1,450   1,630   1,831    BULLISH  12.03

XCI Hardware       1,160   1,210   1,385    BULLISH  11.11
CWX Software       1,100   1,200   1,378    BULLISH   9.03
SOX Semiconductor    580     660     696    BULLISH  12.21
NWX Networking       750     800     872    BULLISH  12.03
INX Internet         600     675     751    BULLISH  12.07

BIX Banking          645     690     566    BEARISH  11.30
XBD Brokerage        410     450     421    Neutral  11.30
IUX Insurance        625     650     608    BEARISH  11.30

RLX Retail           900     935     990    BULLISH  11.23
DRG Drug             380     400     356    BEARISH  12.07
HCX Healthcare       760     790     714    BEARISH  12.07
XAL Airline          180     190     153    BEARISH   5.21
OIX Oil & Gas        290     315     295    Neutral  11.23

Sector Watch Alert    
The Dow is starting off to a very Merry Christmas, as this 
lagging index finally broke resistance and closed into new record 
territory. Volume was above average, considering the holiday 
nature of today's trading, as the NYSE traded 734 million while 
the "other" exchange traded 1.26 billion. Leading sectors for 
Thursday include Healthcare (+2.90%), Drug (+2.66%), Airlines 
(+2.46%), and yes, the DOW (+1.80%)! Losers for Thursday were 
limited to Internet (-2.67%) and Semiconductors (-0.61%). With 
this most recent action, we have upgraded the DOW to BULLISH from 

This section of the investment advisory website highlights's stated Sector Watch across broad market indices 
and industry sectors. 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 

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.

Event Calendar

For the week of December 27, 1999


None Scheduled


Existing Home Sales      Nov    Forecast: 4.96M  Previous: 4.79M
Consumer Confidence      Dec    Forecast: 134.9  Previous: 135.8


Leading Econ. indicators Nov    Forecast: 0.2%   Previous: unch 


Jobless Claims           12/25  Forecast: --     Previous: 281K 
APICS Survey             Dec    Forecast: --     Previous: 52.9  
Chicago PMI              Dec    Forecast: --     Previous: 70.0 
Help Wanted Index        Nov    Forecast: --     Previous: 86   


None Scheduled

Week of 1/03

01/03 NAPM Manufacturing - Dec
01/04 Construction Spending - Nov
01/05 Factory Orders - Nov
01/05 NAPM non-manuf - Dec
01/06 New Home Sales - Nov
01/07 Employment Report - Dec
01/07 Consumer Credit - Nov


Nortel Networks
by Bill Gamble

One of Canada's greatest corporate success stories of the 20th
century is Nortel Networks(NT). The giant telecommunications
equipment manufacturer dominates the market for high speed fiber
optic technology, equipment that takes full advantage of the speed
and capacity of fiber optic cables.

For the complete article go to:

===================== Plays

The PLAY LEGEND: 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 week)
Picked at date and Change since picked 

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

>>on the 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


HD - Home Depot $97.13 (-0.88)

Please see details in our play section.

Picked on Nov 21st @ $82.25
Change since picked +14.88

Chart =


ADI - Analog Devices $81.38 (+2.38)

Please see details in our play section.

Picked on Dec 17th @ $79.00
Change since picked +2.38

Chart =


CMRC - Commerce One $598.00 [199.33 split adjusted] (+192.75)  

No, we're not crazy.  Investors who dared short CMRC anytime in 
the past three months were stepping in front of a bullet train.  
But we think this train is about to be derailed.  At, we refer to a post-split depression that usually 
affects stocks shortly after the ex-date.  This happens when 
momentum traders leave to find other movers.  A screamer stock 
like CMRC normally wouldn't have much of a post-split depression, 
due to the very high price that prevents small investors from 
taking part in the rally until after the split.   CMRC currently 
has only a 3.1M share float.  The limited float was largely 
responsible for the huge split run.  That is changing drastically.  
Tuesday, Dec 28th, the 180-day lock-up period ends.  That means 
Company insiders and institutions that brought CMRC public will 
be free to sell their shares - 12.1M of them.  We expect many of 
those institutions will want to book gains as part of their 1999 
results, in other words, they will be looking to sell.  We feel 
that the selling pressure will be substantial when you incorporate 
the following factors; price too high (nowhere to go but down), 
post-split depression and the glut of stock eligible to hit the 
market starting Tuesday.  For these reasons, we believe that CMRC 
is a ripe short candidate.  This is a higher risk trade, as CMRC 
is quite a mover.  Timing is key.  We will look to initiate trades 
on Monday, Dec 27th, if entry points look promising.  More 
conservative entries can be made Dec 28th after a sell-off is 

Picked on Dec 23rd @ $199.33(split adjusted)
Change since picked 0.00

Chart =


MWD - Morgan Stanley Dean Witter $131.50 (+3.45)

It seems strange to expect a split run on something other than a 
tech stock.  MWD is a financial stock, but as fate would have it, 
the Company benefits greatly from the tech stock expansion.  IPO 
underwriting is a hugely profitable business for MWD, and the 
company has been the lead underwriter on many of this year's huge 
IPO offerings.  Recent earnings, released on Dec 20th, were 
incredible.  To spice things up, the BoD for MWD released an 
accompanying 2:1 split announcement, payable on January 26th.  
As for initiating a split run play now, some may question the 
merit of introducing this split play in the face of an increasing 
bond yield, generally considered negative for financial stocks.  
Our reasoning, the market is currently disregarding increasing 
interest rates, and we expect that trend to continue into 
mid-January.  In addition, a slew of IPO's are expected just after 
the New Year, possibly adding further momentum to this play.  
Another reason to hold this stock is diversification from the very 
top heavy tech sector.  As for initiating positions, the stock is 
currently trading at a good entry point, with solid support at 
$130.  First resistance is at $135, then a test of $140.  We will 
be watching the market's reaction to the bond yield as we hold 
this stock.  There is a good likelihood we will exit prior to the 
payable date, so stay tuned to the updates.

Picked on Dec 23rd @ $131.50
Change since picked 0.00

Chart =


AAPL - Apple Computer $103.50 (+3.50)

Apple Computer is a designer and manufacturer of personal 
computers.  They have a long-standing reputation of innovative, 
easy-to-use computing products.  The stock had a big run this year 
and hit new highs for the first time since 1991. This was in part 
due to the fact that the founder, Steve Jobs, came back to lead the 
company out the basement (garage) and into the limelight.  In 
response, the stock had traded up to $118 before a study came out 
that said PC shipments slowed in the 4th quarter.  Then IBM's 
revenues came under fire and Solectron (SLR) showed weak quarterly 
results.  The two events took AAPL and the entire PC sector down.  
The stock hit a low of $91.06, but has since rebounded.  The PC 
sector has gotten some legs recently as well, in part due to the 
fact that the sector lagged while the rest of the techs ran, so 
the comparative value started to make them look good.  The reason 
for our play now?  The stock price is ripe for a split, although 
there are currently not enough shares for a 2:1 split.  The 
Company has earnings due out on 1/13, at which time we would expect 
a split announcement.  If they do announce, the split would be 
pending shareholder approval at the next BoD meeting in March.  As 
for initiating positions, the stock was up on Thursday and has 
good momentum behind the move.  Support is around $100 (great 
psychological level) while resistance is at $110.  Look for an 
entry point on a break out above $105, or a bounce off of support 
on strong volume. 

Picked on Dec 23rd @ $103.50
Change since picked +0.00

Chart =


PMCS - PMC Sierra, Inc. $145.25 (+23.94)

The semiconductor industry is trading at an all-time high, nearly 
a 100% increase year-to-date.  While market analysts talk daily of 
a tech correction that is sure to take place, a mini-correction 
has already occurred in the semiconductor industry.  Beginning 
Dec 7 and lasting until Dec 14th, the SOX experience a 15% 
decline.  The industry bounced right back and is again trading 
with the rest of the tech sector.  PMCS has established itself 
as a leader in the SOX, receiving many analyst upgrades, the 
latest of which came on Dec 17th as Salomon Smith Barney reversed 
a November downgrade and again upgraded the stock to a "buy" with 
a $200 price target.  In addition, the stock was added to the 
Nasdaq 100 list on Dec 20th, creating further momentum as index 
funds bought up the stock.  The stock is now trading at twice the 
level of its latest stock split announcement, which came on 
April 15, 1999 while the stock was trading at $74.  We expect 
continued momentum as the stock nears earnings on January 20th, 
at which time a split announcement would be expected.  New trades 
can be initiated with support currently at $140, then $130.  
Resistance is at $150.  

Picked on Dec 23rd @ $145.25
Change since picked 0.00

Chart =


CMGI - CMGI, Inc. $270.81 (+59.00)

NaviNet, a provider of high-performance, private-label Internet 
access solutions and majority-owned operating company of CMGI, 
today announced it has exceeded 72% US major-market online user 
population coverage with its GeoDial access product.  Despite 
this news, CMGI's shares fell along with the rest of the late 
day Nasdaq market sell of, finishing the day at $270.81, a loss 
of $4.56.  Although we like to see things heading north when we 
play them, CMGI has had a remarkable run for the week, so some 
profit taking is to be expected.  This sell-off infected most of 
the Internets today, so we are not at all alarmed at this point.  
The stock looks poised to run for $300 like some many of its 
Internet cousins have recently, so a retrace offers a chance for 
decent entry.  As for your support, there was some built up 
intraday when the stock bounced off $268 late in the day.  
Resistance is looking tough around $276, with the real test a 
close over $280 on above average volume (5M a/v). As we said 
before, we feel very comfortable at this price level and think 
that CMGI has a lot of run left since its split is not effective 
until January 11, 2000.  Remember, we like to exit on the day 
prior to the payable date and not run through it to avoid profit 

Picked on Dec 19th @ $211.81
Change since picked +59.00

Chart =


FDRY - Foundry Networks, Inc. $297.44 (+18.56) 

The stock market giveth and the stock market taketh away.  We 
certainly would have expected our $300 support to hold Thursday.  
It did in spirit, as trades consolidated near $300 in the final 
half-hour of trading, but the stock couldn't hold up.  In spite of 
what appeared to be a strong day on the Nasdaq market, many of the 
high flying net and momentum stocks took a beating.  FDRY's losses 
accelerated into the close, possibly explaining why the stock 
could not hold support.  FDRY did challenge resistance at $330 
early Thursday.  Support is now near the 10-dma, at $290.  A close 
above $300 will be key to re-establishing the momentum in our play.  

Picked on Dec 12th @ $277.75
Change since picked +19.69

Chart =


HD - Home Depot $97.13 (-0.88)

Home Depot is still consolidating their recent gains.  They were 
up slightly on Wednesday and Thursday on light volume.  Momentum 
has slowed but the trend is still up going into the split on 
12/30.  We got some help Thursday morning when Morgan Stanley 
Dean Witter raised its price target on HD from $90 to $110.  
Going forward, resistance has formed at $99 while the stock 
consolidates.  The stock has support at $96 with stronger support 
lined up at $94,the 10-dma.  HD may get stuck in this trading 
range until the volume comes back.  If you are not in already, 
look for a breakout above resistance or a bounce off of support, 
combined with heavy volume before entering into a new play. Exit 
by 12/29 to avoid the profit-takers.

Picked on Nov 21st @ $82.25
Change since picked +14.88

Chart =



INAP has traded down for the last four days, ending Thursday at 
$141.00, a loss of $1.50 for the day.  As you can imagine, this 
is somewhat disconcerting to us, as we like to see positive 
momentum in the stocks we play.  Unfortunately, there has been no 
stimulus in the way of news or anything else to turn the slide 
around.  Despite the fact that we have seen this thing do nothing 
but back pedal from the get-go, we think this one might still have 
some legs.  For now, we would advise the use of extreme caution 
and suggest that no new plays be initiated until the stock makes 
a hard turn and confirms upward movement with a relative amount 
of volume (min of 250k).  This stock has some support at $140.00, 
but the real support is sitting back at the 20-dma of $128.  If 
the stock breaks down hard enough to test this level, things 
could get seriously out of control, so set a stop just under this 
level.  As far as resistance, the 10-dma is sitting above at 
$142.86, with the next lined up at $147.75 (5-dma).  We would like 
to see a close back above the 10-dma to confirm we are going the 
right way.  We still have time to exercise patience due to the 
fact that the payable date is set for 1/07.  If things turn 
around and we are able to stay in the play, plan on exiting by 
1/06 to avoid profit taking.

Picked on Dec 19th @ $149.88
Changed since pick -8.88

Chart =


INKT - Inktomi Corporation $191.50 (+20.44)

In every dark cloud there is a silver lining.  INKT sparkled 
Thursday, regardless of an Internet sector that rained on our 
party.  Internet analyst Henry Blodgett of Merrill Lynch spoke 
highly of INKT Thursday, upgrading the stock to an 'accumulation' 
rating.  The stock gapped up at the open by 17 points, and 
established support at $190.  This just might accelerate our split 
run, as the payable date is Thursday, 12/30.  New trades should be 
placed after confirmation that $190 will hold.  A huge gap is 
likely to be filled, with next support back at $180.  Monday's 
trading should indicate whether the stock has legs to test $200.

Picked on Dec 9th @ $166.94
Change since picked +24.56

Chart =


INSP - $186.13 (+19.44)

After gaining a total of $32.00 the last two days on the positive 
news of forming an alliance with Microsoft, INSP traded down 
slightly today.  This was due in part to the announcement 
Wednesday afternoon that it had placed a private investment of 
$9 million with E-Sim Ltd.  E-Sim said it would distribute newly 
issued ordinary shares to INSP in exchange for the investment.  
Even with the pullback, INSP closed substantially above its 5 dma 
of $174.76 and its old high of $181.00.  Volume was actually 
impressive (991k vs 1.1M a/v) considering the holiday.  As for 
our split run play going forward, this rally seems to have good 
momentum and could continue up until the split date of January 4th.  
As for support, you've got some at $184.00 and any bounce above 
this level would be a signal to buy.  Expect resistance between 
$187-$188.  Look to exit by the close on 1/03 to avoid the rush 
for the doors by the profit takers.  

Picked on Dec 9th @ 170.50
Changed since picked +15.63

Chart =


JDSU - JDS Uniphase $298.06 (+57.13)

JDS Uniphase had a great week.  It closed at an all time on both 
Wednesday and Thursday.  The stock broke long-standing resistance 
at $270 and kept on climbing.  Volume is still very good and the 
stock is breaking out.  Our previous resistance of $270 is now the 
new support level.  You now have resistance at $305 and then $325.  
This play is almost over and the stock has made a big move, so if 
you're still looking to initiate plays, confirm market momentum 
and positive stock direction before opening a new position. Exit 
by 12/28 to avoid profit taking on the payable date.

Picked on Nov 9th @ $184.81
Chance since picked +113.25

Chart =


JNPR - Juniper Networks, Inc. $323.34 (+19.34)

With the exception of Brocade Communications, the Internet 
backbone stocks closed mostly flat to slightly higher Thursday.  
That's not to say that the usual volatile swings didn't occur, 
they did.  At one point JNPR was poised to challenge $350, but 
the broader market influenced a slide that first consolidated at 
$330, then slid all the way back to close near support at $320.  
We expected some retracement, as Tuesday's move was huge.  Going 
forward, our play will depend on renewed market strength and a 
market close above 4000 (COMPX) to resume the necessary upward 
momentum.  If the broader market should begin to consolidate or 
even decline, we will be concerned about JNPR as the daily chart 
is on the verge of developing a head and shoulders pattern, a 
negative signal.  We still have 3 weeks to go in this split run, 
but will be watching for support to hold as we move forward.  The 
first test could be at $310, a breakdown would be signaled with a 
close below $300. 

Picked on Dec 21st @ $334.00
Change since picked -10.66

Chart =


QCOM - Qualcomm $466.50 (+11.50)

The big news finally came out on Wednesday night.  Qualcomm agreed 
to sell its mobile handset business to Kyocera (KYO).  In return, 
KYO will use Qualcomm's CDMA technology in their handsets for the 
next 5 years.  Thursday, several analysts upgraded the stock, 
raised price targets, or raised earnings estimates.  
Unfortunately, all of the news seems to have been already priced 
into the stock.  Momentum has turned down, mostly due to a round 
of profit taking, however, the stock is holding on at its 5-dma.  
The split is only a few trading days away, so QCOM may make 
another run to $500 or even $525 before the pay date on 12/30.  
As for support, its now $460 and again at $440.  There is now 
esistance at $500 and then $525.  If you did not get stopped out 
today, place a stop a little under today's low ($466.50) to avoid 
any continuation of this slide.  Initiate new plays on positive 
market direction, positive stock momentum, and heavy volume. Exit 
by 12/29, one day before the pay date.

Picked on Nov 30th @ $362.31
Change since picked +104.19

Chart =


ADI - Analog Devices $81.38 (+2.38)

Analog Devices remains in a consolidation phase after a nice run 
that started on 12/1 when ADI was $61.  The stock has been trading 
in a tight-range between $79-$81.50 for most of the week.  
Momentum is weak but the long-term trend is still up.  We continue 
to expect a split announcement early next month or when they 
announce earnings in March.  For now, you have support at $80 
while resistance is firmly at $82. Look for the stock to break and 
close above resistance on good volume before starting a new play.  

Picked on Dec 17th @ $79.00
Change since picked +2.38

Chart =


CTXS - Citrix Systems, Inc. $122.88 (-0.81) 

Citrix spent a second day languishing under low volume, leaving 
the stock consolidating at support near the $120 level.  After 
Tuesday's sharp price jump, the stock has been slipping due to a 
lack of news that would bring back the momentum traders.  Although 
the stock shows signs of wanting to run with the composite index, 
it seems that a close above 4000 (COMPX) will be necessary to 
bring CTXS substantially further from here.  The $120 level does 
offer good support, as our stock is basing from that level up to 
resistance at $130.  Should support breakdown, next support can be 
found at the 10 dma, near $117.

Picked on Dec 5th at $100.44
Change since picked +22.44

Chart =


NOK - Nokia $174.00 (+5.50)

NOK had been trending upward for a week until it ran into a snag 
on Wednesday.  It appears to have regained that momentum today on 
some positive news as it soared through its 5 dma ($169.74) 
closing at $174.00.  NOK was named to Fortune magazine's "100 Best 
Companies to Work For in America" list for 1999, the culmination 
of an employee-focused assessment of work-life issues and human 
resources programs and policies in companies throughout the United 
States.  In addition, Brightpoint extended through Dec. 31, 2001, 
its agreement to distribute NOK wireless phones in the U.S.  As 
far as our play, the stock traded down throughout the day until 
the end of trading, when it bounced off of support at $172.  This 
reinforces that level as support.  As far as resistance, we are 
looking for a close over $175 to reconfirm momentum.  Volume has 
been good considering the holiday week (3.3M a/v) and we look for 
this to continue.  At this point, our play looks strong, so we 
will continue to take what the stock gives us as we move forward 
towards earnings due out around 1/20, at which time we expect the 
split announcement.  

Picked on Dec 2nd @ $144.63
Change since picked +29.37

Chart =


NT - Nortel Networks $98.69 (+7.44)

Nortel has run into big resistance at $100.  Even though the stock 
has traded higher than that, it could not hold above the $100 level 
for any significant time period, although it tested that level on 
Wednesday and Thursday.  If it can't break through quick, it may 
begin a small consolidation phase before earnings on 1/26, the date 
we anticipate a split announcement.  As for going forward in our 
play, look for a breakout above $103 on strong volume combined 
with good market direction before opening a new position.  Support 
is up to $97 but resistance is still at $100. If it breaks through 
$100, next resistance level may be $110. 

Picked on Dec 17th @ $90.44
Change since picked +8.25

Chart =


SNE - Sony Corporation  $236.50 (+34.38)

If you think 5 straight "up" days are incredible....  Last I 
checked, SNE had 9 straight over on the Nikkei.  This company has 
many people excited.  SNE is becoming well regarded as an Internet 
play, not just a consumer electronics manufacturer.  The 
interesting thing is that trading in this stock has, at least for 
the time being, ignored the weakening Internet index.  Technically, 
the stock's chart has many open gaps, but it just ignores them and 
keeps churning.   We do expect some sort of breather soon however.  
Resistance is now $250.  Conservative trades should wait for some 
retracement.  A 50% retracement from the initial drastic move of 
12/17 would place support in the $210-215 area.   More aggressive 
entries could be placed once any type of downward move and 
subsequent bounce has been established.

Picked on Dec 16th @ $187.94
Change since picked +48.56 

Chart =


YHOO - Yahoo! Inc. $402.63 (+52.63)  

Stocks like YHOO will need to show continued strength to push 
through Nasdaq 4000.  Thursday's initial stab at a composite 4000 
level was weak and traders used the signal to sell off from there.  
Although the market closed up, several industries showed 
increasing weakness throughout the day, particularly the Internet 
stocks.  The exceptions included INKT and the B2B stocks.  YHOO 
was particularly hard hit as the stock gave back some of 
Wednesday's gains.  We are now approximately at the same level as 
Tuesday, near the support level of $400.  Fortunately, the 
Internet Index (INX.X) also closed at support near 750 points.  
Current levels offer good support, although the market may become 
increasingly volatile during the holidays due to low volume.  
Resistance is at $425.  A close below $400 could drive toward the 
next support level of $390.  We continue to hold into earnings on 
January 11th.

Picked on Dec 19th @ $350.00
Change since picked +52.63

Chart =


DROPS 12/26/99


CMRC - Commerce One, Inc. $598.00 (+192.75) 

This stock is anything but usual.  We dropped it Wednesday evening, 
sticking to our strategy of exiting prior to the payable date - as 
usual.  CMRC turned out to be one of our best split runs ever.  
The relatively small number of tradable shares (float) available 
for a company in a hot sector was the key for the huge run-up we 
saw in this stock.  The float is about to drastically increase, 
however, and CMRC may fall victim to profit taking.  As such is 
the case, we have introduced a new play on this stock to take 
advantage of those factors.  

See 'New Post-Split Depression Play - CMRC' for the latest update. 

Picked on Nov 18th @ $324.00

Profit/Loss = +226.00 (+70%)
Best Profit = +231.00 (+71%)

Chart =


SEAC - SeaChange International $49.88 (+6.38)

SeaChange was a very good performer but it is time to say good-bye 
to this play.  As we said on Tuesday, the pay date for the 3:2 
stock split is on 12/27, so we are dropping them tonight to avoid 
the profit taking that will probably set in Monday.  If you have 
not closed your positions by now, look for an exit point on Monday.  
Support is at $47 and resistance is at $50.

Picked on Dec 5th @ $32.75

Profit/Loss = +17.13 (+52%)
Best Profit = +18.13 (+56%)

Chart =



New Split Candidates
==================== strives to be the very best at identifying 
profitable split candidates.  Every week we will list those
whom have made the cut.  You can view the details of these
new candidates by checking out the complete profile for
each stock at the website.

This week:


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This newsletter is a publication dedicated to the education 
of online 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 how to trade stock
splits. It is possible at this or some subsequent date, the 
editors and staff of 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. 
staff makes every effort to provide timely information to its 
subscribers but cannot guarantee specific delivery times due 
to factors beyond our control.


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