Commentary
Sector Watch


Play of the Day
Current Plays
Watch List
New Plays
Play Updates
Drops


Announcements
Current Split Catalog
New Candidates
Candidates Index
Expected Splits
Splits 101


Play Results
Split Predictions


Ask the Trader
Trading 101
Bookstore
Glossary
Dow Charts
FAQ


Splits
SEC Filings
Coming Economic Events
BoD Meetings
Earnings


Chat Room
Message Boards


Email Newsletter
Author Search
Advertise With Us
Change Password
Contact Us

Email Version, Section 1, Thursday 03/08/01
The SplitTrader.com Newsletter          Thursday 03/08/2001 1 of 1
Copyright 2001, 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: http://www.SplitTrader.com

To view this email newsletter in HTML format with imbedded
charts and graphs, click here:

http://www.splittrader.com/htmlemail/030801_1.asp
================================================================

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

Market Commentary - Dow Makes It Five Straight
Definition of the Day
Tuesday's Split Announcements - None
Wednesday's Expirations
Plays - New - Updates - Drops
Friday's Play-of-the-Day - AYE

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


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

Dow Makes It Five Straight

While the NASDAQ called it quits after three in a row, the Dow
was propelled higher today by the oldest of the old economy
stocks.  Investors focused upon those companies that are not
inundated with inventory build up and visibility issues,
namely the heavy machinery, drugs and retail names.  As we get
closer to the March 20th Fed meeting, it seems that traders
are starting to place bets on those companies that are more
likely to turn it around with further rate cuts.

As more analysts continue to talk down a tech rally in the
third and fourth quarter of 2001, stocks like Caterpillar
(NYSE:CAT), Weyerhaeuser (NYSE:WY) and Alcoa (NYSE:AA)
continue to pop higher.  It makes good sense really.  These
old economy stocks have not been subjected to daily
downgrades, earnings revisions and profit warnings like their
baby brothers (age wise), the tech stocks.

In addition, unlike the tech stocks, analysts have been
covering these issues through every market condition and know
how these companies react to interest rate cuts and economic
slowdowns.  There are no pressing inventory, build out or CAPX
spending issues plaguing the old smokestack companies.

The only thing that worries me about the big moves higher in
these mature companies is that the growth rates of these firms
have obviously stabilized.  Therefore, it doesn't take much to
bid these stocks up to rich valuations.  I realize that there
is value in stability and dividend yields, but it won't take
long for investors with a renewed interest in fundamentals to
figure out that these stocks may not deserve the high P/E's
that they will inherit as the P's move up and the E's remain
stable.

Today's Markets

It was the big cap tech stocks that sank the NASDAQ today,
aided by rumors of a 25-basis point cut instead of a 50-basis
point cut at the March 20th Fed meeting.  A few Fed governors
have hinted at this, but I believe it may just be an overly
pessimistic interpretation of Fed-speak by a few loud
individuals.

The NASDAQ (COMPX) gave up 55.19, or 2.48%, settling back down
at 2168.73.  Volume came in on the light side at 1.7 billion
and decliners beat advancers 2178 to 1438.

The DOW (INDU), on the other hand, continued higher, adding
128.65 points to close at 10858.25.  Volume on the big board
was also light at 1.1 billion shares traded.

Traders were more than likely hesitant to place big bets ahead
of tomorrow's Employment Report.  This report certainly has
the potential to move markets and is looked at closely by the
Fed.  Economists are expecting the non-farm payrolls number to
come in at 75,000 and for the unemployment rate to stay level
at 4.2%.

Turning to the fixed income market, bonds were volatile, but
closed virtually flat on the day.  The 10-year note finished
unchanged to yield 4.90% and the 30-year bond moved up 2/32 to
yield 5.305%.

Stocks and Sectors on the Move

If the warning out of Yahoo! (NASDAQ:YHOO) last night wasn't
enough to get the NASDAQ boulder moving downhill this morning;
a sweeping downgrade of the storage sector by Salomon Smith
Barney sure nudged it over the edge.

The brokerage firm downgraded its ratings on EMC Corp.
(NYSE:EMC), Network Appliance (NASDAQ:NTAP) and Brocade
Communications (NASDAQ:BRCD).  The stocks finished off $3.85
to $37.15, $3.13 to $25.00 and $5.88 to $32.88 respectively.

Joining the storage sector in the dumps were the biotechs as
measured by the AMEX Biotech Index (BTK.X).  The index tanked
13.13 to 544.50 on the heels of a downgrade of Biogen
(NASDAQ:BGEN) by UBS Warburg.  The stock ended off $2.44 to
$63.56.  Other casualties included Amgen (NASDAQ:AMGN) down
$2.50 to $68.69 and Immunex (NASDAQ:IMNX) down $1.06 to
$29.31.  A quick perusal through some biotech charts will
reveal that many of them are breaking down through key support
levels and most look like they are in for at least one more
leg down.

Chart of Enzon:



In a continuation of the sector rotation game, defensive
issues moved higher while the techs sold off.

The drugs rebounded from two days of steep declines to post
modest gains across the board.  Merck (NYSE:MRK) climbed $0.39
to $74.79, Eli Lilly (NYSE:LLY) gained $0.63 to $77.40 and
American Home Products (NYSE:AHP) closed up by $0.81 to
$59.40.

Retailers continued ringing up gains today on the heels of
some good same store sales figures.  Wal-Mart (NYSE:WMT)
bounced $0.95 to $51.65 after reporting a February same store
sales increase of 4.3% and Best Buy (NYSE:BBY) rocketed $4.91
after indicating that it sees its fourth-quarter could well
come in ahead of expectations.  Even Ann Taylor (NYSE:ANN),
which warned of a shortfall for its first and second quarter,
managed to put on $1.73 to close at $27.98.

The big news after the bell today was word out of Intel
(NASDAQ:INTC) that the company believes its first-quarter
revenues will fall 25% from fourth-quarter levels.  This was
expected by most, but the thing that caught analysts and
investors off guard was the admission by Intel that the
current downturn has spread into the networking,
communications and server sectors.  In addition, Intel admits
that the current slowdown will affect gross margins, shrinking
them 7% to 51%.  The stock was off $2.25 in after hours trade.

Looking Forward, Always Forward

Between the employment report and the Intel mea culpa,
tomorrow's market could be a frothy one.

This has been one tough market to read.  All the usual tried
and true market signals have often proved to be mere mirages,
disappearing just when you think that you are ready to dive
in.  If that has not been enough, just when you think that,
OK, I'll just do the opposite of those market signals, the
dang market goes right back to being sane and reasonable,
leaving the confused investor to chase whatever is working at
the moment.  That is what has led to the massive sector
rotations and the whipsaw action.

Splittrader has remained true to the charts during this whole
milkshake market, and has come out unscathed on balance.  The
charts have led us to nibble in oil, healthcare, retail and
defensive issues.  Sure our picks have their down days when
the technology sector decides to reassert itself, but they
have not yet suffered from the mass exodus mentality
indicative other sectors.

So for the time being, we will keep picking stocks that are
breaking out from well-formed support levels, are displaying
good relative strength and are not displaying increased
volatility.

Loews Corp. (NYSE:LTR), a recent play pick, has rewarded us for being
patient. We waited until the stock could get above resistance at $105
before adding the stock to our list.  Breakouts have often
come right back into their bases during this crazy market, so
we are confirming any breakout with at least two other
indicators.  In this case, LTR's MACD was turning positive and
the breakout move came on excellent volume, confirming that
this breakout had a good chance of gaining traction and going
higher.

Chart of Loews:



Keep those stops in place and have a great weekend.  I will be
atop a mountain in the Rockies tomorrow witnessing two old
friends tie the knot.  With snowshoes on my feet, my daughter
on my back and my wife by my side in the snow, the stock
market is going to feel worlds away; that is until everyone in
the wedding party starts complaining about their 401(k)
accounts being in the crapper!  Oh well, we can never get
enough of this, and of course, that is what keeps us coming
back to the charts for more.

Craig Seidler
Assistant Editor
www.SplitTrader.com


************************Advertisement*************************
What will your strategy be for 2001?

The VRTrader.com Annual Forecast Model
Your road map to the 2001 market!

Forecast is prepared by Mark Leibovit, the #1 market timer in
the nation. Mark is Chief Market Strategist for VRTrader.com,
a Premier Investor Network website, a technical consultant
and former 'Elf' on Louis Rukeyser's Wall Street Week for 7
years.

His Annual Forecast Model has been subscribed to by Wall
Street's most elite. Mark is presently ranked #1 timer in
the nation by TIMER DIGEST and #2 on AmericasBestTimers.com.
Order your today! click here:
http://www.sungrp.com/tracking.asp?campaignid=1777
**************************************************************


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

Whipsaw

When an investor purchases a stock and the stock immediately heads
in a direction opposite to what was anticipated.

For the complete definition, please go to:
http://www.splittrader.com/glossary/viewglossary.asp?glossaryid=402


Thursday's Split Announcements
=============================

None


=======================================
Friday's Expirations by Payable Date
=======================================

Business Objects (BOBJ) splits 3:2


*************************ADVERTISEMENT*********************
Have you wanted to learn to trade options but didn't know
where to go.  OptionInvestor.com is the place.

Option 101, Ask the Analyst, Trader's Corners all articles
to teach you how.

Learn how to do it.

Get a two week free trial from OptionInvestor.com
http://www.sungrp.com/tracking.asp?campaignid=1791
************************************************************


=====================
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 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.
================================================================


=========
NEW PLAYS
=========


NEW SPLIT RUN PLAYS 03/08/01
============================

None


NEW SPLIT CANDIDATE PLAYS 03/08/01
==================================

OAT - Quaker Oats Company $99.33 +1.18 (+2.25)

Quaker Oats produces and markets food and beverages, which  include
well-known brands such as Quaker Oats, Gatorade, and Rice-A-Roni. In
early December, PepsiCo (PEP) agreed to buy Quaker Oats. After several
weeks of considering various buyout offers and engaging in extensive
talks with both Coca-cola and PepsiCo, OAT finally agreed to be
acquired by Pepsico. According to the terms of the agreement, PepsiCo
will agree to pay $13.4 billion in stock, exchanging 2.3 PepsiCo shares
for each share of OAT. The deal is set for an April closing but remains
subject to shareholder approval, which is why we have not yet
officially dropped OAT from our Candidates Index.  To that end, the
company currently has 131.93 shares outstanding and 400 million
authorized, enough to split shares 2:1. In addition, the stock is
trading well above its previous split of $32, which occurred back in
12/94. On Thursday, OAT trended to an all time new high of $99.33, on
strong volume of 606,600 shares and uptrending OBV. A move above this
price tomorrow when accompanied by midday volume of at least 300,000
shares could be a good entry point for momentum traders.   We'll post
our stop at $96 for now.

Picked on March 8th @ $99.33
Change since picked 0.00
Stop Loss @ $96.00




NEW MOMENTUM PLAYS 03/08/01
============================

None


=======
UPDATES
=======


SPLIT RUN PLAY UPDATES 03/08/01
===============================

BAX - Baxter International $92.72 +2.38 (-0.61)

Baxter revealed plans yesterday to build a new $170 million facility for
making vaccines and said earnings will grow in the mid-teens in 2001.
The company expects earnings growth to reach high-single digits in the
first half of 2001, while an increase to the mid to high-teens should
unfold in the second half of the year. Despite the positive comments
from the company, BAX shares unexpectedly ran into some post-
announcement selling on Wednesday. A pullback in the AMEX Biotechnology
Index (BTK) didn't help matter either, as the stock lost 4.09 points or
4% to close at $90.34. BAX logged volume of 2,639,100, which handily
surpassed the three-month average. With that said, we were looking for
BAX to rebound in today's session. Luckily, this scenario unfolded.
After bouncing off an intraday low of $89.35, the stock recovered to a
close of $$92.72, up 2.63% on the day. Should this recovery continue,
we'll look for resistance to occur at the 5-dma of $93.20, followed by
a tougher challenge at $95. Support will come at $90, with additional
support at the 30-dma of $89.49. Look to time entries when BAX shares
bounce off of support or break above $95 on volume of at least 900,000
by midday.

Picked on March 1st @ $92.61
Change since picked +0.11
Stop Loss @ $89.00



===

GVA - Granite Construction Inc. $35.00 +$0.05 (-$0.20)

Thursday marked the forth day of limited price movement for shares of
GVA. Since achieving a new 52-week high on Friday of last week, GVA has
seen intra-day price movement of less than fifty cents.  On Thursday
115,000 shares changed hands, this represents a 50% increase over the
three-month average of 75,000. The current tug-of-war between buyers
and sellers is  evident by the three successive Dojis that have
appeared on GVA's chart. A Doji is a charting symbol used in Japanese
Candlestick Charting. Basically, when the pattern appears, it denotes
indecision in direction. Going forward, a bullish pattern to watch for
would be an engulfing pattern in which the previous day's bar is
totally engulfed by an "open" candle. GVA is a little over a month away
from its 3:2 stock split scheduled for April 13th. Prior to that date,
we are watching for another split run to begin. Considering opening a
new position if GVA bounced off support at $35.00, the 5-dma, or moves
up and through resistance at $35.50 on strong volume of 60,000 shares
traded by midday. We will maintain our stop loss at $33.50 on this
play.

Picked on February 25th @ $33.07
Change since picked +1.93
Stop Loss at $33.50



===

LTR - Loews Corporation $114.40 +1.58 (+5.29)

Diversified holding company Loews Corporation is on a winning streak,
having posted gains in each of the last five sessions. On Thursday,
shares of LTR traded to a three-year high of $114.80 on volume of
598,000 shares. LTR continues to benefit from the sector rotation out
of NASDAQ issues and into the safer NYSE names. The stock has solid
momentum as we move closer to the 2:1 split, payable on March 20th.
However, a weak payroll number on Friday could lead to some profit
taking. Going forward, LTR has support at Wednesday's intra-day high of
$112.90 with additional support at $111.67, the 5-dma. Resistance has
moved up to Thursday's intra-day high of $114.80 and then the all-time
high of $115.62. Traders should be looking for a bounce off of $112.90
or a breakout above $114.80 on midday volume of at least 225,000 shares
before starting new plays. We are bumping our stops up to $111.50 to
protect in the recent gains.

Picked on February 27th @ $106.40
Change since picked +8.00
Stop Loss @ $111.50




SPLIT CANDIDATE PLAY UPDATES 03/08/01
=====================================

AYE - Allegheny Energy Incorporated $47.50 +0.38 (+0.50)

The state-by-state restructuring of the electric utility industry is
offering companies a rare opportunity to build major independent power
producing businesses. Just a handful of companies are poised to benefit
from this transformation, of which Allegheny is certainly one. To take
advantage of the rollout, AYE is seeking to achieve critical mass
through a combination of new energy plants and the transfer of existing
generating operations to unregulated status. We're hoping that positive
news from this build-out continues to propel AYE shares. Looking at the
chart, AYE appears to be gaining momentum off its recent low, adding
$0.38 in today's trading. The short-term technical indicators also
point to higher levels, with the MACD flattening out after the recent
decline and the stochastic showing a bullish crossover. What is of some
concern to us, however, is the volume. The stock normally logs around
653,000 shares based on a three-month average, but Thursday's run came
on volume of just 206,200 shares. This could indicate a lack of buyers
in the stock. Bearing this in mind, we'll look for initial resistance
to come at the $49 mark (all time high), followed by a more difficult
test at $50. Support will come at the 20-dma of $47.06, with an
additional base at the March 6 intra-day low of $46.43. Look for
entries on bounces off of support or break above $49 on volume of at
least 300,000 shares traded by noon.

Picked on February 22nd @ $48.22
Change since picked -0.72
Stop Loss @ $45.94



===

IGT - International Game Technology $56.45 -0.30 (+2.61)

IGT established a new high of $57.25 yesterday, as the stock continues
to offer momentum investors one of their limited options in this
market. IGT did loose a little bit of its impetus today.  That said,
the stock's impressive uptrend is still intact.  However, the RSI is
indicating that the stock is a bit overbought in the short term.
Granted, IGT does have a habit of becoming extremely overbought,
according to the RSI indicator, before pulling back.  A good buying
opportunity may present itself if IGT pulls back to the 10-DMA, which
is just slightly above $55.00, and bounces.  If today's mild pullback
turns out to be a one day aberration and IGT establishes a new high
tomorrow above $57.25, accompanied by volume over 600,000 shares, the
stock could easily be off to the races again next week.  The MACD, OBV
and Money Flow continue to look impressive and point towards more gains
for IGT.

Picked on February 20th @ $53.52
Change since picked +2.93
Stop Loss @ $54.75



===

KRI - Knight-Ridder, Inc. $58.79 -0.16 (-1.96)

Knight-Ridder, one of the premier newspaper publishers in the country,
announced yesterday that at least two of its properties, the
Philadelphia Inquirer and the San Jose Mercury News, are suffering from
diminishing advertising revenues.  Although the news was hardly
surprising considering the overall economy, the stock did suffer a
decline of just over a point yesterday.  In light of what the market
usually does to uptrending stocks when they announce negative news, the
relatively mild decline is quite encouraging.  KRI does offer investors
a good value for their money and they appear to be unwilling to part
with their holdings in KRI.  The 50-DMA continues to offer excellent
support just above $58.00.  There may be a good entry opportunity if
KRI can bounce off this support.  A move above today's high of $59.50
may foreshadow a retest of the 52-week high of $61.25.  The MACD is
somewhat trendless.  However, a good pop up in the share price tomorrow
could easily trigger a buy signal, according to this indicator.


Picked on March 4th @ $60.75
Change since picked -1.96
Stop Loss @ $57.00



===

PFGC - Performance Food Group Company $48.56 -1.94 (-5.13)

Performance Food Group, a leading food product supplier, sold off on
Thursday after the company announced that it plans to acquire privately
owned Empire Seafood Holding Corp. for approximately $70 million in
cash, common stock, and the assumption of certain liabilities. On
Thursday, shares of PFGF traded to an intra-day low of $48.50 on light
volume of 74,700 shares. The stock closed below its 20-dma and it has
hit 4 consecutive lower highs on weak volume. The MACD is turning
negative so the stock may continue to slide unless we get some decent
volume on an upward move. Until then, PFGC has support at Thursday's
intra-day low of $48.50 with stronger support at the February 21st
intra-day low of $47.13. Resistance has come in at Thursday's intra-day
high of $50.50 and then Monday's intra-day high of $53.38. Traders may
consider entry points on a bounce off of $48.50 or a move above $50.50
on volume greater than 100,000 shares by noon. We are keeping our stops
at $47 to limit potential losses.

Picked on February 25th @ $50.13
Change since picked -1.56
Stop Loss @ $47.00



===

PII - Polaris Industries Inc. $50.90 +2.90 (+3.70)

Polaris jumped 6-percent for the day and came within $0.76 of a new 52-
week high.  The bullish advancement in the Dow Jones Industrial Average
(INDU) seems to have had a positive effect on PII.  If you are
considering opening a new play on PII, look for the stock to conquer
resistance at $51.65 on heavy volume of at least 100,000 shares traded
by midday.  Thursday advance was accompanied by volume of 177,000
shares, which is 88% greater than the average three-month trading
volume of 94,000 shares.  We are going to tighten our stop loss on this
play to $48.00.

Picked on February 13th at $48.70
Change since picked +2.20
Stop Loss at $48.00



===

WFT - Weatherford International $58.33 +0.08 (+4.33)

Oil and natural gas drilling equipment manufacturer Weatherford
International, Inc. hit an all-time high on Thursday. Shares of WFT
traded as high as $58.82 before pulling back to a close of $58.33 on
volume of 1.4 million shares. The stock, as well as the majority of the
oil drilling sector, has strong momentum so WFT could continue to hit
new highs. However, Thursday's pullback shows that WFT may see a round
of profit taking in the near future. From a technical standpoint, WFT
has light support at Thursday's intra-day low of $57.75 with additional
support at the 5-dma, now up to $56.59. Resistance is Thursday's intra-
day high of $58.82 and then possibly the $60 mark. Consider entry points
on a bounce off of $57.75 or a breakout above $58.82 on volume of at
least 750,000 shares by midday. We have moved our stops up to $55 to
protect additional capital.

Picked on March 6th @ $56.80
Change since picked +1.53
Stop Loss @ $55.00




MOMENTUM PLAY UPDATES 03/08/01
===============================

BDX - Becton, Dickinson and Co. $35.65 +0.61 (-0.20)

It has been an interesting week so far for most medical equipment
stocks. Generally speaking, these stocks were under some profit taking
pressure in the beginning of the week due to investors focusing on the
purchase of downtrodden technology stocks.  Today, we saw some profit
taking in technology stocks, which was good news for BDX shareholders.
BDX was bolstered yesterday by the initiation of coverage of its stock
by Banc of America Securities.  The research firm placed a "Buy" rating
on BDX.  We suggested in Tuesday's update that BDX might be a
compelling buy because the stock has found support at the 50-DMA, which
closed today at $34.94.  BDX has started to bounce off this support.
Although the MACD is still negative, the OBV and Money Flow remain
quite strong.  BDX closed right at the resistance offered by the 10-DMA
of $35.63.  A positive move tomorrow, accompanied by first hour trading
volume over 300,000, could signal the resumption of BDX's uptrend and
may provide a good buying opportunity.

Picked on February 11th @ $37.03
Change since picked -1.38
Stop Loss @ $34.50



===

ELY - Callaway Golf Corporation $26.44 -0.57 (+1.44)

Having staged a remarkable recovery from the 1998 El Nino lows, which
kept golfers off the courses, Callaway has found new venues to drive
sales growth. The key to this turnaround has come mostly through
international growth, where last year's annual sales jumped 29%,
compared to only a 10% increase stateside. Moreover, overseas momentum
continues to build, as witnessed by the company's 54% increase in
revenues abroad last quarter. These strong sales numbers have generated
a steady flow of buyers to the stock, which has kept ELY shares on the
upswing. On the day, shares did give back some ground from yesterday's
sharp rally and closed the session at $26.44, down $0.57. Volume came
in strong at 656,600, which surpassed the three-month average. Still,
upside volume has nearly doubled the three-month average on breakouts.
 We'll look for resistance to come at the 52-week high of $27.18 and
then at the $30. Support comes in at the $26 mark, bolstered by the 5-
dma of $25.96. Traders might want to consider a position if the stock
can bounce off support at the 5-dma at or move through resistance at
$27.18 on 250,000 shares traded by noon. We'll limit our downside risk
with a raised stop of $25.50.

Picked on February 25th @ $23.99
Change since picked +2.45
Stop Loss @ $25.50



===

LMT - Lockheed Martin Corp. $38.60 -0.45 (+0.30)

Lockheed Martin Corporation remains in a firm upward trend despite the
day-to day fluctuations. On Thursday, shares of LMT hit a new 52-week
high of $39.50 before running into some profit taking. The stock closed
at $38.60 on volume of 2.1 million shares. LMT has made 5 consecutive
higher highs and 3 consecutive higher lows. The stock constantly tests
support and volume remains heavy so it could continue to move higher.
For now, support is Thursday's intra-day low of $38.15 with stronger
support at the 10-dma, currently at $37.89.  Resistance has moved up to
Thursday's intra-day high of $39.50 and then the 6/8/99 intra-day high
of $41.56. A bounce off of $38.15 or a breakout above $39.50 on midday
volume greater than 800,000 shares may be possible entry points. We are
keeping our stops at $35 to limit potential losses.

Picked on February 4th @ $36.40
Change since picked +2.20
Stop Loss @ $35.00

===

PHCC - Priority Healthcare Corporation $42.63 -0.63 (+$0.13)

Priority Healthcare made fractional gains on Thursday on very low
trading volume. PHCC has been forming a wedge pattern on its chart
since last week.  As the trading has become tighter, the pinnacle of
the "wedge" is forming and the stock looks poised to breakout. If this
does occur, consider opening a new position on PHCC if the stock
advances through resistance at $44.00 on strong volume of 400,000
shares traded by midday.  But be cautious of advances toward resistance
on shrinking volume; this historically is not considered a bullish
sign. The Dow Jones Industrial Average (INDU) showed us how to close an
index on a strong note today. Traders consider it bullish when a stock
or an index closes at the high of the day provided that ample volume
accompanied the move. Look for similar activity in the NASDAQ Composite
Index (COMPX) or the CBOE Health Care Index (HCX.X) when considering
starting a new play. We will post a stop loss at $39.00 on this play.

Picked on March 4th @ $42.50
Change since picked +$0.13
Stop Loss at $39.00



===

TX - Texaco, Inc. $70.05 +1.00 (+3.21)

Texaco scored another 52-week high on Thursday.  The increased trading
volume that accompanied today's move legitimized the  advance. TX
normally trades about 1.7 million shares based on a three-month trading
average, but today's record was achieved on volume of 2.4 million, a
41% increase. If you are considering opening a new play on TX look for
a bounce off support at $68.33, the 5-dma, or a move higher on strong
volume of 1.2 million shares traded by midday. The INDU was very
helpful today; we'd look for similar cooperation going forward along
with the help of a positive movement in the Oil Service Index (OSX.X).
In order to secure a profit on this play, we are going to tighten our
stop loss to $68.00.

Picked on February 18th at $64.90
Change since picked +5.15
Stop Loss at $68.00




=====
DROPS
=====


SPLIT RUN PLAY DROPS 03/08/01
=============================

None


SPLIT CANDIDATE PLAY DROPS 03/08/01
===================================

None


MOMENTUM PLAY DROPS 03/08/01
=============================

None


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

Thursday, March 8, 2001
=============================

AYE - Allegheny Energy Incorporated $47.50 +0.38 (+0.50)

Thursday's Comment:

The state-by-state restructuring of the electric utility industry
offers a rare opportunity to build a major independent power-
producing businesses. Just a handful of companies are poised to
benefit from this transformation, of which Allegheny is
certainly one. To take advantage of the rollout, AYE is seeking
to achieve critical mass through a combination of new energy
plants and the transfer of existing generating operations to
unregulated status. We're expecting this positive news to propel
AYE shares higher.  But we're not counting only on news.
Looking at the chart, AYE appears to be gaining momentum off
its recent low. The short-term technical indicators also point
to higher levels, with the MACD flattening out after the recent
decline and the stochastic showing a bullish crossover. With
that said, we'll look for initial resistance to come at the $49
mark (all time high), followed by a more difficult test at $50.
Support will come at the 20-dma of $47.06, with an additional
base at the March 6 intra-day low of $46.43. Look for entries on
bounces off support or a break above $49 on volume of at least
300,000 shares traded by noon.

Picked on February 22nd @ $48.22
Change since picked -0.72
Stop Loss @ $45.94




*************************ADVERTISEMENT*********************
Why put all your risk into one stock when you can play the
index instead?

Learn how to invest in the OEX, QQQ, and SPX.  Get intraday
market updates, plays, education and daily commentaries by
those who know.

Sign up for a two week free trial and see for yourself at
IndexSkybox.com:
http://www.sungrp.com/tracking.asp?campaignid=1794
************************************************************


================================================================
Contact Us!
Send questions or comments to:  stcomments@splittrader.com

To stop receiving this SplitTrader Update,
send email to:  removeST@splittrader.com
=================================================================

DISCLAIMER
==========

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 SplitTrader.com 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.  SplitTrader.com
staff makes every effort to provide timely information to its
subscribers but cannot guarantee specific delivery times due
to factors beyond our control.

 


Copyright 2001 SplitTrader.com

Do not duplicate or redistribute in any form.
Privacy Statement   Disclaimer   Terms Of Service