The SplitTrader.com Newsletter           Thursday 10/05/00 1 of 1
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In This Newsletter:
===================

Market Commentary - Soaps and Detergents Clean Up After Dell
Definition of the Day
Thursday's Split Announcements - DNA, PNS, ABV BEC
Sector Watch - Breakdown by sector of market performance.
Friday's Expirations
Friday's Play-of-the-Day - NEWP
Stock Plays - New - Updates - Drops

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


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

Soaps and Detergents Clean Up After Dell

After the bell on Wednesday, Dell Computer (DELL) reported
that it expects revenues for the third quarter to be softer
than expected.  Here we go again!  The company said that
revenues would only grow 7% this quarter to about $8.2
billion.  This comes after Dell reported last month that
revenues would grow by 10%.  The stumbling block for Dell
turned out to be a reoccurring theme in the market, slow
European sales.  The company said in a conference call today
that not only the weak Euro, but also a slower ramp-up in its
European operations was to blame.  Dell shareholders, par for
the course, were not forgiving and willing to look out 2-3
quarters to gage demand.  Instead, Dell fell $3.00 on the day,
to $25.19, hitting its lowest share price in over 2 years.

It's a Rodney Dangerfield NASDAQ market right now.  Tech
shares, "can't get no respect".  After reporting stellar
earnings after the bell yesterday, Micron Technologies (MU)
succumbed to massive selling today.  MU finished the day down
$5.94 to $41.00 on volume of over 23 million shares.  MU
reported great earnings that came in at $1.16/share, compared
with estimates of $0.96/share.  Thomas Weisel then downgraded
the stock for good measure.  Micron supplies chips to the PC
makers, so the Dell news was bad timing indeed.  It's tough-
going in the semiconductor and PC sectors as pricing pressures
mount.  Prices keep falling with these high tech items
becoming more and more like commodity products.  Innovators in
the industry, like Intel, still enjoy high margins on their
cutting edge products, but with so much competition out there,
these dry up fast as AMD and others jump on the copycat
bandwagon.

The result of all the tech turmoil today was a flight to the
likes of soaps and razorblades.  Consumer staples and other
groups like the foods and the personal care stocks did well.
These stocks have been in the doldrums this year.  With prices
relatively low and no preannouncements plaguing these sectors,
these areas have become a cozy place for investors to hunker
down for a spell.

Adding to the euphoria for the value-type plays were the
sweeping upgrades doled out by Merrill Lynch analyst Heather
Murren.  She likes the prospects for the consumer group and
raised her intermediate term ratings from neutral to
accumulate on several bellwether consumer stocks.  Gillette
(G), up $1.25 or 4.2%, Proctor & Gamble (PG), up $2.88 or 4.1%
and Clorox (CLX) up $2.75 or 6.5% were all included on her
list.

Thursday's Happenings:

The NASDAQ Composite (COMPX) trimmed 51.01 points, or 1.5%, to
close at 3472.09.  This happens to be its ninth loss in 11
days (I know I'm counting). After peeking into positive
territory in the morning, the COMPX shrugged its shoulders and
gave in to the selling pressure.  Although these closing
figures don't seem too bad given the triple digit losses we
have been seeing, the internals speak for themselves.
Decliners beat advancers 2,331 to 1,593, and 233 stocks made
new lows while only 44 stocks made new highs.

Turning to the DOW (INDU), it had a challenging day as well.
It started the day on a strong note, but couldn't overcome the
downward drag that Hewlett-Packard (HWP), down $7.38 to $88.25
and IBM (IBM), down $1.44 to $113.44 put upon the index.  The
DOW dropped 60.30 points, or 0.56%, to 10,724.18, terminating
a 3-day string of lackluster gains. Breadth was again negative
on the DOW with 5 stocks falling for every 4 that gained.
Volume was more than healthy with almost 1.2 billion shares
exchanging hands, or 20% above the 3-month daily average.

The broader market got a boost from the aforementioned
consumer group and managed to squeak out a small gain today.
The S&P 500 (SPX) finished up 1.96, or 0.14%, to 1,436.28.

The treasuries markets performed well today as inflation
worries eased with falling oil prices and falling stock
prices.  Since bond prices key upon inflation, and are a safe
haven from stock volatility, we saw small gains across all
maturities.  The benchmark 10-year bond was up 7/32 and the
yield lost 1 basis point to 5.87.  The 30-year bond rose 19/32
to yield 5.90.  Trading was light today, however, due to the
all-important monthly employment report expected tomorrow
before the bell.  Non-farm payrolls are expected to come in up
244,000, after falling to 105,000 in August.  The consensus
estimate for the unemployment rate remains at 4.1% and for
wages to rise 0.3%.

Sectors and Stocks On the Move:

The oil index (OIX) slipped 0.96 today as the price of oil
dipped below $31.00 a barrel.  On the New York Mercantile
Exchange crude officially closed at $30.35 a barrel, down
$0.90, the contract's lowest price since September.  Why is
this important?  Oil prices affect everyone from large
corporations that rely on oil for production purposes, to the
transportation companies that bring the product to us, to my
wife filling our Subaru at the local gas station.  More money
spent on fuel is less that finds itself spent on other
consumer products that drive our economy.  Simplistic? Yes it
is, but it is a fact that cannot be ignored.  Oil prices have
been blamed on hard times in the stock markets before, and
have the potential to play the role of the spoiler again.

So why did oil prices fall today?  It was in response to the
release of 30 million barrels from the coveted U.S. oil
reserves.  As you recall, President Clinton back on September
22nd, authorized this release to curb wintertime worries of an
oil shortage.  Funny that this wasn't already priced into the
oil contracts, which leaves me pondering how long these lower
oil prices will persist.  In addition to the release of our
reserves, Japan ordered its distributors to release 6 million
barrels of surplus heating oil onto the markets.

In response to the lower oil prices, airline stocks prepared
for takeoff (with fuel being it largest single operating
expense).  AMR, parent company of American Airlines (AMR) was
up $0.69 to $35.00 (almost breaking out of a nice cup and
handle formation).  Northwurst, I mean Northwest, was up $2.56
to $27.88, and Southwest Airlines (LUV) was up $0.56 to
$26.31, a new 52-week high.  The Airline Index (XAL) has been
stuck in a downtrend since mid July.  Many of the airlines,
however, have benefited from United's (UAL) service problems,
stealing some of the spillover from angry United passengers.
This, combined with strategic oil hedging has some select
airlines primed for some potentially good earnings this
quarter.

Chart of the Airline Index:



Looking Forward, Always Forward:

Tomorrow, as mentioned above, comes the release of the heavy
hitter of economic reports, the Employment Report.  Although,
does anyone really think this will have much influence on the
market at this point?  Unless the report shows numbers way off
from the estimates of 244,000 added to non-farm payrolls and
wages rising 0.30%, the market will yawn and go about its
business of trying to shake this negative sentiment.  But, at
this point we have two dynamics going on at the same time.  On
the one side, we have the Fed saying that it is still worried
about inflation.  On the other side we have some analysts
worrying about a "hard landing".  If the employment numbers
come in too weak tomorrow, we might see more of these analysts
come out of the woodwork to declare that we are in danger of
slowing down too fast.

Turning to the charts, the NASDAQ Composite (COMPX) is looking
weaker and weaker.  It broke its double top neckline at around
3500.  Unfortunately, the next level of support way down at
the May low around 3150.  Some are saying that a retest of the
May lows is just what the NASDAQ needs.  It would take a lot
more capitulation in the big techs to get there, however.  To
this end, the recent drops in EMC, Sun Microsystems (SUNW),
and Oracle (ORCL) are all signs that we are seeing just such
capitulation occurring.  How low we go in these big names has
a large barring on how low the COMPX will fall.

Chart of the NASDAQ Composite:



The chart of the DOW (INDU) doesn't look much better, although
it is not nearly as technically damaged (meaning it could turn
around with relative ease).  We are still working on a 7-month
ascending triangle formation, albeit we are on the bottom
trend line of the triangle.  Generally, these are bullish
formations when the top channel line is pierced.  Again, we
are at a critical point in the formation where the bottom
trend line needs to hold.  There is not much room for downward
moves on the INDU before this trend line is broken.  This is
why analysts are hinting that if the DOW and NASDAQ start
moving down in tandem, buckle up.

Chart of the Dow Jones Industrial Average:



As always, keep your protective stops in place.  A small
profit is a good profit in these market conditions.  Don't let
losses mount as there is some significant downside risk going
forward.  In addition, we are entering earnings season next
week.  Keep good notes as to when companies whose stock you
hold are due to report (calling investor relations is the best
source).  Consider exiting these plays before the
announcements, and reenter after the announcements if the
stock merits the new play.  Again, traders are selling even on
good earnings reports, so there is not much leeway out there
for earnings misses.

Trade Smart!

Craig Seidler
Assistant Editor


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Some comments from recent attenders:

I want to thank Chris, Steve and Scott for the excellent workshop
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One can never get too much education in options investing, and Chris
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Definition of the Day
=====================

Paper Trading

Paper Trading is simulated trading where actual money is not used.

For the complete definition, please go to:
http://www.splittrader.com/glossary/viewglossary.asp?glossaryid=286



===================
Split Announcements
===================

Thursday, October 05, 2000, During the Market

DNA Splits Stock Two for One

Biotech company Genentech, Inc. (NYSE: DNA) announced after the
opening bell that its board of directors approved a stock split of
its common outstanding shares on a 2-for-1 basis. The payable date
is October 24, 2000 for eligible shareholders.

For the complete announcement, please go to:
http://www.splittrader.com/announcements/100500_1.asp

===

Thursday, October 05, 2000, During the Market

Pinnacle Data Declares Second Split for 2000

During market hours today, Pinnacle Data Systems Inc. (AMEX: PNS)
announced a 2-for-1 stock split, to be paid as a 100 percent stock
dividend. The payable date is set for October 31, 2000.

For the complete announcement, please go to:
http://www.splittrader.com/announcements/100500_2.asp

===

Thursday, October 05, 2000, During the Market

Brazil's AmBev Plans 5-for-1 Split, No Change on ADR's

Companhia de Bebidas das Americas (AmBev), (NYSE ABVc) announced
Thursday that the Company will hold a shareholder meeting on
October 20 to vote on a proposed 5-for-1 stock split. If approved,
the split will only affect locally listed shares. Presently, each
ADR represents twenty common or preferred shares; upon execution
of the split, each ADR will represent 100 similar shares - trading
at roughly the same price as the current market price.

For the complete announcement, please go to:
http://www.splittrader.com/announcements/100500_3.asp

===

Thursday, October 05, 2000, After the Market

Medical instrument maker announces a two-for-one stock split and
hikes quarterly dividend.

After the market closed on Thursday, Beckman Coulter (NYSE: BEC)
announced a two-for-one stock split in the form of a 100 percent
stock dividend payable on December 7, 2000. Additionally, the
company said it would hike its quarterly dividend to $0.17 per
share from $0.16.

For the complete announcement, please go to:
http://www.splittrader.com/announcements/100500_4.asp



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

As of Market Close - Thursday, 10/05/2000

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

DOW   Industrials      10,724      10,550  10,900
SPX   S&P 500           1,436       1,415   1,465
COMPX NASD Composite    3,472       3,250   3,750
OEX   S&P 100             764         750     776     **
RUT   Russell 2000        502         485     525     **
NDX   NASD 100          3,424       3,250   3,700     **
MSH   High Tech           926         890     926

BTK   Biotech             694         650     790     **
XCI   Hardware          1,238       1,210   1,350     **
GSO.X Software            410         385     445     **
SOX   Semiconductor       832         800     960
NWX   Networking        1,189       1,135   1,210     **
INX   Internet            446         430     510

BIX   Banking             621         600     635
XBD   Brokerage           651         620     670
IUX   Insurance           781         735     790

RLX   Retail              804         780     850
DRG   Drug                411         370     425
HCX   Healthcare          847         825     860
XAL   Airline             147         138     152
OIX   Oil & Gas           308         296     332

Seven alarms were triggered over the last two sessions all to the
downside.  Lowering support on (OEX, RUT, NDX, BTK, XCI, GSO.X,
NWX) Lowering resistance on (SPX, MSH, RLX) Raising support on
(IUX, HCX, XAL).


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.



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

Sonus Networks Inc. (SONS) splits 3:1
AudioCodes (AUDC) splits 2:1


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

The PLAY LEGEND:

SplitTrader.com Play Recommendations.

Play-of-the-Day is our number one play recommendation for the
following trading day.
Updates are just that - updates on continuing plays.
New plays are brand new for the newsletter.
Drops are closing plays that we feel have lost the advantage.

You will see:
Stock Symbol, Company Name, Closing Price, Change for the day,
then (change for the week).
At the end of the play you'll find:
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.
================================================================


========================
Friday's Play-of-the-Day
========================

Thursday, October 5, 2000
=============================

Thursday's Comment:

NEWP - Newport Corporation $176.25 +1.75 (+17.00)

NEWP designs, manufactures and markets high-precision optical
equipment, and the company is experiencing a whole never level
of demand for its products. With the expansion of the Internet
finally forcing wire and cable companies to either keep up or
fall behind, demand for fiber optic equipment makers is
running high. Combine this demand with a strong uptrend in the
fiber optic sector and we've got the makings of a momentum
play. Even more interesting, on May 17th, shareholders
approved an increase in authorized shares from 20 million to
75 million at the annual shareholders meeting. So, with 28.2
million shares currently outstanding and 75 million shares
authorized, we're looking at a possible split play as well.
Are you getting excited yet? We certainly are, and think
traders are as well. Advancing back toward its all time high
of $192.06 this week, NEWP has handily reversed its recent
short-term downtrend. Strong volume remains a good indication
that an extended advance may occur. An aggressive early entry
signal will come when prices cross above today's intra-day
high of $182. Further up, we'll look for the next levels of
resistance to be felt at the $192.06 (all time high) and the
$195 levels. Potential plays will be present when the stock
can close above resistance, on good mid-day volume of 750
thousand shares. We'll look for the stock to meet its first
support at the 20-dma of $167.73, which has been providing
good intra-day buying points over the past couple of weeks. If
this level is broken, we recommend placing a stop at $166, to
prevent against a meltdown. This time of the year is known for
its downside volatility, which is why we'll keep the stop
relatively tight. Look for good volume to reconfirm bounces
from support before opening positions.

Picked on October 5th @ $176.25
Change since picked 0.00





NEW SPLIT RUN PLAYS 10/05/00
============================

None



NEW SPLIT CANDIDATE PLAYS 10/05/00
==================================

KEI - Keithly Instruments, Inc. $80.25 +3.50 (+9.75)

Keithley Instruments develops, manufactures and sells measurement
systems geared to the specialized needs of electronics
manufacturers.  On Tuesday, the investment firm of Thomas Weisel
upgraded the stock to a buy rating ahead of third quarter earnings
scheduled for October 20th. Estimates are for a profit of $0.35
per share versus a profit of $0.31 in the same quarter last year.
The stock became a split candidate in our opinion once it crossed
the half-century mark. To date the company has effected four stock
splits; the most recent occurring last June.  At present there are
30 million shares authorized with 14.7 million outstanding.
Therefore, the board of directors could announce a split with
earnings without shareholder approval. In late August, the stock
made an attempt to conquer $80.00 and was unsuccessful. On
Thursday, the stock closed over that level and now looks poised to
move higher on its pre-earnings run. Currently, light support can
be found at $80.00, followed by $77.00 and finally the 5-dma of
$75.10. We are looking at tight support levels due to earnings
fast approaching. When considering new play entry points, look for
good volume (over 700 thousand) to take the stock higher. A bounce
off a support level if accompanied by good volume and supporting
momentum in the INDU and the PHLX Semiconductor Index (SOX), would
be helpful too. We will place a stop loss at $72.50 to limit our
losses in the event of a sell-off.

Picked on October 5th @ $80.25
Change since picked 0.00

===

NEWP - Newport Corporation $176.25 +1.75 (+17.00)

NEWP designs, manufactures and markets high-precision optical
equipment, and the company is experiencing a whole never level of
demand for its products. With the expansion of the Internet
finally forcing wire and cable companies to either keep up or fall
behind, demand for fiber optic equipment makers is running high.
Combine this demand with a strong uptrend in the fiber optic
sector and we've got the makings of a momentum play. Even more
interesting, on May 17th, shareholders approved an increase in
authorized shares from 20 million to 75 million at the annual
shareholders meeting. So, with 28.2 million shares currently
outstanding and 75 million shares authorized, we're looking at a
possible split play as well. Are you getting excited yet? We
certainly are, and think traders are as well.  Advancing back
toward its all time high of $192.06 this week, NEWP has handily
reversed its recent short-term downtrend. Strong volume remains a
good indication that an extended advance may occur. An aggressive
early entry signal will come when prices cross above today's
intra-day high of $182. Further up, we'll look for the next levels
of resistance to be felt at the $192.06 (all time high) and the
$195 levels. Potential plays will be present when the stock can
close above resistance, on good mid-day volume of 750 thousand
shares. We'll look for the stock to meet its first support at the
20-dma of $167.73, which has been providing good intra-day buying
points over the past couple of weeks. If this level is broken, we
recommend placing a stop at $166, to prevent against a meltdown.
This time of the year is known for its downside volatility, which
is why we'll keep the stop relatively tight. Look for good volume
to reconfirm bounces from support before opening positions.

Picked on October 5th @ $176.25
Change since picked 0.00

===

QCOM - QUALCOMM $82.88 +4.44 (+11.63)

QUALCOMM sells digital wireless communications products and
services based on its proprietary CDMA (code division multiple
access) technology to more than 80 telecommunications equipment
manufacturers worldwide. QCOM was one of last year's high-flyers.
The company's shares traded to an all-time high of $200 on January
3rd, at the height of wireless stock mania. As the tech sector
began to sell off, so did QCOM. On 7/11, the stock hit a relative
low of $51.50, representing a 74% correction. QCOM then spent over
two months building a base in the $60-$70 range until 9/19, when
it broke through resistance to a relative high of $78.75 on three
times average daily volume (ADV). On Wednesday, shares of QCOM hit
an intra-day high of $79.50, taking out the 9/19 high. QCOM
extended its winning streak on Thursday, trading as high as $85 on
two times ADV. We believe that QCOM is ready for an earnings run.
The company is expected to announce earnings on 11/2.  The company
currently has enough shares for a split with 3.6 billion shares
authorized and 741 million shares outstanding. However, the share
price is below historic split announcement range. Going forward,
QCOM has support at Wednesday's high of 79.50 with additional
support at $75.63, the 9/27 high. Resistance is the Thursday's
high of $85 and then $89, just below the 5/19 intra-day low. We
are looking for entry points on a bounce off of $89.50 or a move
above $85 on midday volume of at least 9 million shares. We plan
to use stops at $75.50 as protection.

Picked on Oct 5th @ $82.88
Change since picked +0.00



SPLIT RUN PLAY UPDATES 10/05/00
===============================

None



SPLIT CANDIDATE PLAY UPDATES 10/05/00
=====================================

BMY - Bristol-Myers Squibb $56.56 +1.06 (-0.94)

A solid day on the AMEX Pharmaceutical Index (DRG) helped BMY to
recapture some of its lost luster.  Investor's attraction to drug
stocks is quite understandable.  These companies enjoy stable
earnings due to an unfailing demand for their products.  Drug
companies have also enjoyed an unprecedented period of new drug
development.  On the earnings front, BMY will report on October
20th.  Current consensus estimates are calling for profits of
$0.61 a share.  If these profits come in as expected, then BMY
will have increased their profits by $0.14 over the same year-ago
period.  When fear grips the market, investors like to park their
cash in stocks that do not have negative earnings surprises.  BMY
was knocked through a loop yesterday when a federal court cleared
the way for IVAX Corp (IVX) to begin marketing its generic form of
the cancer drug Taxol, which had previously been exclusively
produced by BMY.  The share price of BMY has been slipping and we
are becoming a little concerned about this play, though today it
made a nice comeback by adding $1.06 to its value.  We do feel
justified in staying with this play because of the positive trend
for Pharmaceutical stocks and the hope that an earnings
anticipation run could be just around the corner.  BMY may just be
consolidating its recent advance.  If BMY does get going again,
you can find a trailing stop suggestion in our In Play section.
If we are not stopped out, we will exit this position just prior
to the earnings release.

Picked on September 21st @ $56.69
Change since picked -0.13

===

COF - Capital One Financial $71.75 +0.50 (+1.69)

For the third consecutive day, shares of COF climbed higher on
increased volume. Today the advance was a 20% gain with 1.2
million shares changing hands. As noted in our initial report on
Tuesday, COF is due to report its third quarter earnings next
Tuesday, October 10th. The company has been upgraded by two
investment firms ahead of their earnings release and has also
recently launched a niche marketing campaign for a new Visa card
with BMG Entertainment.   COF will offer a new Visa card aimed at
attracting loyal music enthusiasts with an incentive and reward
plan based on purchases made with the card. The news helped
bolster investor enthusiasm ahead of earnings. Currently, the
stock has support at the 5-dma at $70.91, followed by the 10-dma
at $69.56. Resistance is Tuesday's new 52-week high at $73.25.
Continue to watch for big volume leading into earnings. A decrease
in the volume should send up a warning flare that selling may
about to ensue. Look for leadership in the INDU and the NYSE
Financial Index (NF) to help hoist the stock to new levels. Be
quick to take profits and consider holding through earnings as a
high-risk play. We will keep our stop at $66.38 for now.

Picked on October 3rd @ $71.00
Change since picked +0.75

===

MBI - MBIA Incorporated $69.00 -0.50 (-2.13)

On Wednesday, financial guarantee insurance company MBIA announced
its plans to offer secondary market insurance for municipal bonds
online to all electronic bond trading facilities. Individual
investors prefer bonds that are insured because they come wrapped
with the insurer's triple-A credit rating and a guarantee to make
payments in case the issuer defaults. In reaction to the news,
MBIA's stock posted modest gains early in the day both Wednesday
and Thursday only to retreat by the close of trading both days.
The trading volume has been about average both days at 290
thousand shares exchanged. Looking ahead, we'd like to see the
stock hold support, which is now noted at the 20-dma at $68.87 and
then at $67.00. Resistance will now become a challenge at the 10-
dma of $69.80, followed by the 5-dma of $70.38. If both these
resistance levels can be conquered, a test of the recent high at
$73.43 will come next. Bullish advancements should come with
better than average volume coupled with good momentum in the INDU
and the S&P Insurance Index (IUX). Look for a bounce off support
or a shot through the resistance when considering a new play on
this stock. We will guard our play with a stop at $67.50. Please
review our IN PLAY section for adjustments to this stop.

Picked on September 29th @ $71.06
Change since picked -2.06

===

MXT - Metris Companies, Inc. $42.25 +0.38 (+2.75)

The decimation of technology stocks has given rise to some new
market leaders.  Bank and Financial stocks are at the forefront of
this charge and are making a strong case that they will become the
new market leaders.  Metris runs a very profitable credit card
business that focuses upon hard credit clients who are willing to
pay some of the highest fees and interest rates in the industry.
Metris will report earnings on October 18th.  If the analysts
covering this company are correct, then Metris should report
profits of $0.49.  These earnings would compare favorably to the
$0.36 the company earned in the same period a year ago.  The last
time Metris split was back in May.  The company announced a split
when the stock was trading at $38.38, a price that is just below
where the stock is trading today.  This fact increases the
likelihood of another split announcement.  Shareholders just
recently approved an increase of the number of authorized shares,
which is another clue that a split may be imminent.  MXT fell just
short of making a new high today.  The old high stands at $42.94
and the stock is definitely knocking on the door and could take
this resistance out if we see another solid day for financial
stocks tomorrow.  The slope of the 50-DMA is becoming more
vertical, which indicates an acceleration of the up trend.  The
50-DMA is currently at $35.16.  Although the MACD is oddly
negative, it will probably issue a buy signal if a new high is
established.  A new round of buying from momentum investors may
also occur if the stock can make a new high.  OBV and Money Flow
are quite solid and the RSI has some room before indicating an
overbought condition.  We are maintaining our stop at $37.00 and
you can check our In Play section for a trailing stop idea.  If we
are not stopped out we will plan to exit this position just before
the earnings are released.

Picked on September 26th @ $41.06
Change since picked +1.19



=====
DROPS
=====


SPLIT RUN PLAY DROPS 10/05/00
=============================

ADBE - Adobe Systems $148.50 -9.50 (-6.75)

Adobe Systems lost it momentum on Wednesday. Shares of ADBE traded
to an intra-day low of $155 on two times ADV, violating support at
the 5-dma. The selling continued on Thursday, taking the stock
down below the 10-dma to an intra-day low of $146.69 on strong
volume. We were stopped out on Thursday at $153.50 and we are
dropping ADBE tonight.

Picked on Oct 3rd @ $163.44
Profit/Loss = -9.94 (-6%) (Stopped out Thursday @ 153.50)
Best Profit = +1.25 (+1%)



SPLIT CANDIDATE PLAY DROPS 10/05/00
===================================

ELN - Elan Corporation $58.38 +0.75 (+3.63)

The trend is your friend, goes the old adage. Just don't get
caught when the trend shift directions is the part they forgot to
mention. With ELN's resistance at the $60 mark (double top) and
its decreasing volume up to this high, we feel that a potential
trend change could be developing. Because of this, we recommended
a firm stop at $58.00. Although our stop represented a 3% decline
from the high, it helped us to lock in an increase of 5% without
risking more losses to the downside. With certain drug stocks
presenting good defensive plays, we'll keep you posted on ELN's
future developments as they occur.

Picked on September 24th @ $55.25
Profit/Loss = +2.75 (+5%) Stopped out Wednesday @ $58.00
Best Profit = +4.88 (+9%)

===

SDC - Sante Fe International $40.06 -2.00 (-4.88)

We previously thought that oil price controls would not take hold.
In the short term, it appears that we were incorrect and we were
immediately stopped out of this play as oil prices have seen a
decline.  The stock did close just below the 50-DMA at $40.69
today.  If this level proves itself to be good support, the stock
may be a compelling trade at current levels.

Picked on October 3rd @ $45.19
Profit/Loss -3.19 (Stopped out Wednesday @ $42.00)
Change since picked -3.19



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


NEW SHORT PLAYS 10/05/00
========================

None



SHORT PLAY UPDATES 10/05/00
===========================

AMZN - Amazon.com Incorporated $33.56 -2.44 (-4.88)

Despite a higher open and early run to $36.63, AMZM continued
lower late in the day, as losses in the NASDAQ kept recovery hopes
out of reach. The Retail Index (RLX), which has closely mirrored
AMZN's recent weakness, also closed down 3.47 points to 804.91,
reflecting the general lack of buyers in the sector. To make
matters worse, retail analyst, Lauren Cooks Levitan, said
yesterday that by moving from its core book, music and video
business into toys and photo processing Amazon risks making itself
inefficient and unprofitable in the long run. As news from the
analyst was released, AMZN fell another 6.77% to close at $33.56.
Volume stayed strong at 7.0 million shares traded and suggests
that $30 could be our next target. Today's decline started with a
sharp gap lower, which surpassed previous resistance ($35) and
will now make $30 our initial opposition point. Further weakness
in the NASDAQ will be a good indication of more declines, with the
52-week low of $27.88 provided the next resistance. On the upside,
support should now come at previous resistance of $35. We
recommend stops be placed just above this level at $36, to protect
against a short cover rally. Watch for volume changes around
support and resistance levels to indicate AMZN's strength or
weakness.

Picked on September 28th @ $39.94
Change since picked -6.38

===

DY - Dycom Industries $39.75 +0.44 (-1.88)

This well-respected company continues to lose some of its faithful
shareholders.  The fear of a soft landing actually becoming a hard
landing raises concerns that a troubled economy will lead to a
slowdown in major telecommunications projects.  If this happens,
Dycom will be adversely affected.  We have noticed a troubling
trend of very good companies getting destroyed if their growth
rates slow just a tad, regardless of their relatively low
valuations.  Dycom sports a P/E of only 25.48. The 200-DMA,
currently residing at $44.78, was trending nicely higher, but the
stock has been in a freefall ever since breaking below this moving
average.  Look for a continued drop if the stock can trade below
yesterday's low of $38.00.  The past two days have seen the stock
top out at $41.25.  If this resistance is breached, Dycom may
enjoy a little bounce, so be cautious.  The RSI is telling us that
Dycom may be a bit oversold down here so a bounce is definitely
possible.  Other indicators are decidedly negative, including the
MACD and OBV.  Therefore, it seems most likely that any bounce
will not result in a major advance.  A little sideways action,
followed by more declines appears to be the most likely course of
action for this stock.  We have placed our stop at $45.00.   If
you would like to see our trailing stop idea, please consult our
In Play section.

Picked on October 1st @ $41.63
Change since picked +1.88

===

LOW - Lowes Companies Incorporated $42.13 -0.88 (-2.75)

Today's early gap down at the open set the stage for a great day
on our LOW play, This is good news for us, as a series of lower
gaps confirms the selling pressure on the stock. Additionally, the
decline was able to push LOW through intermediate resistance at
$42.25. A short-lived rally in the Retail Index (RLX) could mean
that the group is ready to head lower again. We certainly hope so!
With that said, we think that LOW is still primed to fall to it
next support base and 52-week low of $40.38. However, the stock
will have to exceed today's daily low of $41.38, before new lows
can be tested. Look for a potential entry point should shares fall
below the $41.38 mark on good daily volume of 2.0 million shares
or more). On the upside, we'll now look for support at $42.25
(previously resistance). Just higher, the $44 mark, bolstered by
the 5-dma of $43.45 should provide good resistance ahead of our
stop at $48.50. Use sharp bounces from resistance to trigger
additional sell points. A trailing stop may help to capture more
gains, but might also force an early exit. With this in mind,
choose your entry/exit points wisely.

Picked on October 1st @ $44.88
Change since picked -2.75

===

LXK - Lexmark International Group $34.13 -3.00 (-3.38)

Lexmark International is showing signs of weakness. On Thursday,
the stock sold off while the Company's CEO spoke at the "20/20:
Vision on Print" conference in Berlin, hosted by Lexmark. A lot of
good that did because an earnings warning from Dell Computer
(DELL) outweighed anything said at the LXK cheerleading session.
In fact, shares of LXK fell to an intra-day low of $33.63 before
making a small recovery into the closing bell. The stock
successfully re-tested its 9/27 low of $33.56, but it may lose
that support as we move closer to Lexmark's earnings announcement
on 10/19 before the bell. Until then, support is the 9/27 low of
$33.56, with stronger support at the $30 mark. Resistance has
fallen to the 9/28 low of $35 and then 36.63, Thursday's intra-day
high. We plan to open new positions on a failed rally to $35 or a
dip below $33.56 on volume greater than 900,000 shares by midday.
We are leaving our stops at $42.50 to minimize risk.

Picked on Sep 26th @ $37.50
Change since picked +3.38



SHORT PLAY DROPS 10/05/00
=========================

BIGT - Pinnacle Holding Inc. $25.81 +0.63 (-0.81)

On Thursday, shares of Pinnacle Holding Inc. triggered our stop
loss at $27.00. Once again the effective use of a stop has helped
us secure a profit. We will continue to watch BIGT for future
trading opportunities. For now, though, we exit with a nice profit
on this play.

Picked on September 22nd @ $32.88
Profit/Loss +5.88 (+18%) (Stopped out Thursday at $27.00)
Best Profit +8.38 (+25%)


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

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