The SplitTrader.com Newsletter           Thursday 10/26/00 1 of 1
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In This Newsletter:
===================

Market Commentary - Focused On Fiber
Definition of the Day
Thursday's Split Announcements - CPN, SHFL
Sector Watch - Breakdown by sector of market performance.
Friday's Expirations
Friday's Play-of-the-Day - AHP
Stock Plays - New - Updates - Drops

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


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

Focused On Fiber

Fiber-optics companies have grabbed the headlines this week, but
the company in the news today has been dealing in fiber since
1906.  No, not the kind of fiber that conducts pulses of light,
but the type of fiber that, well, you know, keeps you "on
schedule".  Kellogg's (K) the biggest and one of the oldest names
in dry cereal sweetened its line of products today when it
announced it would buy the cookie giant, Keebler (KBL), in a $3.7
billion deal.

This is not the kind of deal talked about around the water
cooler, but it is significant to Keebler, which will now be
included among the big league players of the food producers.  The
deal is valued at $42 a share, only a slight premium over
yesterdays closing on KBL. Keebler closed up $1.06 or 2.7%, to
$40.44 on today's session.  Kellogg's gets a much-needed boost in
the fast growing snack food segment by acquiring Keebler,
hopefully making up for its core cereal business, which recently
has been soggy at best. Kellogg's finished up $1.56 or 6.8% to
$24.31.

The fiber optic stocks, on the other hand, have seen their market
caps shaved this week, pushed over the edge on Tuesday by
Nortel's (NT) revenue report.  They were the scapegoats for the
NASDAQ pullback and bled red over much of techland.  Anything
having to do with broadband, fiber optics or data management took
a hit, with semis and networking stocks joining in for the ride.

This morning saw the well known fiber optic stocks like Ciena
(CIEN) -$5.38, Corning (GLW)-$6.88, JDS Uniphase (JDSU)+3.44 and
SDL, Inc.(SDLI)+6.38 looking for the exits.  We saw a heroic
turnaround into the close in all these names, with hardly a lick
of profit taking before the bell.

In fact, looking at all the tech generals (CSCO, EMC, SUNW, ORCL,
INTC et al) we see the same pattern of a stellar close.  Some big
players took some stock home tonight, which is a good sign.  It
will remain to be seen if they give it all back on any rallies,
as they have been for the past 2 months.

A shift in the red tide may, may, may have come tonight as JDS
Uniphase reported earnings of $0.18 a share, beating expectations
by $0.02.  But, more importantly, our neighbor to the North
reported revenues of $786 million as opposed to estimates of $755
million.  The stock traded in choppy fashion in after hours
action, on both sides of today's close of $74.44.  Much more will
be divulged in the conference call and as we all know, all ears
will be tuned into the company's guidance going forward.

Thursday's Happenings:

Turning to the major indicies, the NASDAQ (COMPX) was pulled over
today for banking a U-turn without signaling.  The index
plummeted in the morning, came within 50 points of testing the
October 18th low of 3026, then turned and rocketed higher, to
close up 42.61 or 1.321%, at 3272.18.  After being down more than
145 points, the turnaround that came at around 2:30 p.m. est, was
quite impressive.  Nasdaq volume registered a healthy 2.3
billion.  The advance, though impressive, was mostly due to the
big caps throwing their weight around.  Proof of this can be seen
in the a/d numbers.  Decliners actually edged out advancers 1987
to 1918.

The Dow (INDU) experienced a similar day, although less decisive.
Traders took the DOW higher in the morning, lower by midday,
rallied it along with the NASDAQ, then decided enough is enough
and sold it off into the close.  The DOW finished up 53.64 or
0.52%, to close at 10,380.12.  The techs within the DOW chipped
in more than their fair share towards the DOW's gains on the day,
with Intel (INTC) up $3.38, Microsoft (MSFT) up $3.19 and IBM up
$5.19.  Contributing to the drag on the DOW were Citigroup (CI)
off $1.63, American Express (AXP) off $2.94 and Wal-Mart (WMT)
down $2.50.  Volume on the Big Board was almost 1.3 billion
shares and advancers managed to beat decliners by 1455 to 1394.

The broader market did not fair as well on the day with the S&P
500 finishing basically flat, or down 0.47 to 1364.43.

Treasuries reacted to a positive Employment Cost Index report
this morning.  The ECI (a measure of wages, benefits and
salaries) rose 0.9% in the third quarter as opposed to estimates
of a 1% rise.  The increase was the smallest in a year, giving
still more proof that the rate hikes and the "soft landing" being
orchestrated by Fed Chairman Greenspan may be working.  The 30-
year bond finished up 8/32, its yield moving in the opposite
direction to close at 5.73%.  The benchmark 10-year closed down
1/32 to yield 5.69%.  Credit futures markets have now priced in a
50% chance that interest rates will actually be lower near the
being of 2001.  However, nobody is going to bet too excited until
the Fed removes its bias towards fighting inflation.  The next
Fed meeting is November 16th.

Sectors and Stocks On the Move:

The telecomm sector (IXTC.X) put investors on hold today, with
WorldCom (WCOM) falling another $3.50 to $21.75.  The stock has
been steadily falling all year and was pushed lower today on
revenue worries.  Nextel Communications (NXTL) also cratered
after reporting a narrower loss in earnings, but mentioned
simultaneously that new subscriptions would not meet estimates.
The stock finished down $7.31 to $28.81.

When the market is feeling sick, what other sector comes to the
rescue but the Healthcare group (HCX.X).  Although, it finished
just about flat on the day (-2.01), it has held up amazingly
well.  Looking at a long term chart going back to 1995 shows that
this sector traditionally tanks in the second half of the year.
This is because up until this year, price increases have not
stuck.  This year, higher prices for drugs and services are
hanging tough at higher levels, boosting margins and
profitability for this now high-flying sector.  Stocks like
Unitedhealth Group (UNH) +$2.94, Tenet Healthcare (THC) -$0.88
and Wellpoint Health (WLP)+5.44 have taken to all time lofty
levels.

Looking Forward, Always Forward:

The action was positive on the day for both the NASDAQ and the
DOW, but there are some potential clouds hanging overhead that
could leave investors grabbing for their umbrellas going into the
weekend.  First is the Gross Domestic Product (GDP) coming out
before the market open Friday.  Estimates are for the GDP to have
risen by 3.5%.  Although economic reports have generally taken a
backseat to debacles in the equity markets recently, this report
shouldn't be ignored.

Next, we have the shake out from the JDS Uniphase conference
call.  We shall see if investors can be placated by the rosy
fourth quarter guidance given by the fiber optic giant or if they
have been hurt too badly and just don't want to come out to play.

We also have developments overseas in the oil patch and in Euro-
ville that have the potential to shake up our already shaky
markets.  Iraq has indicated that it could halt oil exports if
the United Nations does not comply with its request to trade oil
in euros instead of dollars.  The December crude contract
finished up $0.75 to $33.71 a barrel.

The euro hit all-time low levels on Wednesday with one euro
buying .8246 of a dollar.  Thursday, the euro was up a little to
8256 of a dollar.  Companies are starting to be more vocal about
how the lowly valued euro is dragging down business.  There have
been no formal talks concerning the central bank's boosting of
the currency like they did last month.

All that negativity aside, the markets look like they are poised
to resume an upward move on some more choppy trade.  With today's
rally into the close, most big market players will want to see
how much farther they can take some key stocks before selling
pressures resurface.  Also bullish is the fact that the NASDAQ
put in a lower low in today's downdraft and also needs to fill a
gap at around the 3400 level created by Wednesday's gap down in
the morning.

Chart of the NASDAQ Composite:



Also good news is the nice bounce we are seeing in the
Semiconductor Index (SOX.X).  Semis make up such an important
position within the NASDAQ, occupying a peripheral role in the
wireless, optical, PC and electronics sectors, that we need them
on board if the COMPX is to go higher from here.  We will look
for long term support at 656 to hold.

Chart of the Semiconductor Index:



As always, keep those stops in place.  Small losses in this
choppy market will keep you in the game and your capital intact
for when the market turns (and it eventually will).  Likewise,
don't be afraid to lock in profits too early.  It's been tough to
get good sustained runs in most of the sectors, so don't let
those profits disappear.  Good Luck and have a profitable trading
day.

Trade Smart!

Craig Seidler
Assistant Editor



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

Capitalization

Capitalization is the sum of a corporation's long-term debt,
stock, and retained earnings. This is also known as invested
capital.

For the complete definition, please go to:
http://www.splittrader.com/glossary/viewglossary.asp?glossaryid=56



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

Thursday, October 26, 2000, Before the Bell

Electrifying 2-for-1 Stock Split Announced by Calpine

Before the opening bell today, Calpine Corp. (NYSE: CPN)
announced its Board of Directors approved a 2-for-1 stock split
of the Company's common shares. Eligible shareholders will
receive the additional shares after market close on the payable
date of November 14.

For the complete announcement, please go to:
http://www.splittrader.com/announcements/102600_1.asp

===

Thursday, October 26, 2000, During the Market

Shuffle Master Deals Out a 3:2 Stock Split

During market hours today, Shuffle Master, Inc. (Nasdaq: SHFL)
announced its Board of Directors approved a 3-for-2 stock split
of the Company's common shares. Additional shares will be issued
in the form of a 100% stock dividend, payable to eligible
shareholders on November 30, 2000.

For the complete announcement, please go to:
http://www.splittrader.com/announcements/102600_2.asp



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

As of Market Close - Thursday, 10/26/2000

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

DOW   Industrials      10,380       9,650  10,600
SPX   S&P 500           1,364       1,305   1,420
COMPX NASD Composite    3,272       3,000   3,650
OEX   S&P 100             720         700     750
RUT   Russell 2000        479         455     500
NDX   NASD 100          3,167       2,950   3,550
MSH   High Tech           891         825     990

BTK   Biotech             737         640     780
XCI   Hardware          1,222       1,100   1,310
GSO.X Software            407         360     440
SOX   Semiconductor       705         600     805
NWX   Networking          991         925   1,180     **
INX   Internet            346         275     400

BIX   Banking             552         520     575
XBD   Brokerage           584         550     630
IUX   Insurance           767         720     805     **

RLX   Retail              736         715     775
DRG   Drug                427         395     440
HCX   Healthcare          885         840     900
XAL   Airline             134         124     140
OIX   Oil & Gas           302         296     328     **

Three alerts were triggered in the past two sessions, with the IUX
triggering an alert at resistance.  Lowering support (NWX, OIX).
Lowering resistance (NDX, BTK, GSO.X, NWX, BIX, XBD, RLX).
Raising support (OEX, BTK, GSO.X, BIX, RLX, HCX).  Raising
resistance (IUX).  There's work to be done, but the bulls look
like they're making progress.


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

Comarco, Inc. (CMRO) splits 3:2
Hewlett-Packard Company (HWP) 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,
and(change for the week)
Picked at date and Change since picked

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

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


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

Thursday, October 26, 2000
=============================

AHP - American Home Products Corp. $63.50 -0.88 (+3.69)

Thursday's Comment:

American Home Products is probably best known as a purveyor of
popular consumer products Robitussin, Dimetapp and Centrum
Vitamins. However, the company also has a substantial presence
in consumer health care and agricultural products. We are
adding AHP to our play list after the company posted another
profitable quarter on October 19. AHP matched analyst's
estimates and posted an 18% increase in quarterly profits.
Since then, its stock has been rising steadily to Thursday's
new high of $65.25. Today's advance came on impressive volume
of 5.5 million shares, well above the 3-month average of 3.1
million. We now see this stock as a split candidate.  To that
end, the company has enough authorized shares to announce a 2-
for-1 split.  Should the market cooperate, we feel that AHP
could experience further gains. As of Thursday's close, the
stock now has support at the 5-dma of $62.25 and the 20-dma of
$59.25. Resistance will be Thursday's intra-day high of
$65.25. If you are considering opening a new play on AHP,
possible entry points should include a bounce off support if
followed by good volume (4 million shares or better). A bold
charge up through resistance on good volume might also work.
Look for confirmation of strength in the Dow Jones Industrial
Average (INDU) and the AMEX Pharmaceutical Index (DGX) when
opening new positions.  We will place our stop loss at the
lowest level of support at $59.25. Please review our IN PLAY
section for updates and changes to our trailing stops.

Picked on October 26th @ $63.50
Change since picked 0.00

Chart = 



NEW SPLIT RUN PLAYS 10/26/00
============================

None


NEW SPLIT CANDIDATE PLAYS 10/26/00
==================================

MO - Phillip Morris Cos. $36.00 +0.38 (+3.56)

Philip Morris is a consumer products conglomerate best known for
its tobacco, Kraft Foods and Miller Brewing units. Shares of MO
have been trending higher since January after correcting nearly
69% from its all-time high of $59.50 on 11/25/98. More recently,
MO has attracted a horde of value investors due to its low price-
to-book (P/B) and price-to-earnings (P/E) multiples, as well as
its 5.95% annual dividend yield. The stock is also getting a buzz
from the rumor that George W. Bush may ease up on the litigation
against the tobacco industry if elected President. On Thursday, MO
hit a 52-week high of $36.50, which has us believing that ongoing
weakness in the technology sector, coupled with a revival of the
consumer cyclical stocks, should continue to fuel an MO rally.
Although not a legitimate split candidate, we like the stock
nonetheless because of the recent momentum it has acquired over
the past month.  From a technical perspective, initial support is
at the 5-dma of $34.94, with stronger support at the 10-dma of
$33.44.  Further up, there is resistance at $37 and then $39. We
are looking for entry points on a bounce off of $35 or a breakout
above $37 on volume of at least 3.8 million shares by midday. We
plan to set stops at $33 to limit losses.

Picked on Oct 26th @ $36.00
Change since picked +0.00

===

AHP - American Home Products Corp. $63.50 -0.88 (+3.69)

American Home Products is probably best known as a purveyor of
popular consumer products Robitussin, Dimetapp and Centrum
Vitamins. However, the company also has a substantial presence in
consumer health care and agricultural products. We are adding AHP
to our play list after the company posted another profitable
quarter on October 19. AHP matched analyst's estimates and posted
an 18% increase in quarterly profits.  Since then, its stock has
been rising steadily to Thursday's new high of $65.25. Today's
advance came on impressive volume of 5.5 million shares, well
above the 3-month average of 3.1 million. We now see this stock as
a split candidate.  To that end, the company has enough authorized
shares to announce a 2-for-1 split.  Should the market cooperate,
we feel that AHP could experience further gains. As of Thursday's
close, the stock now has support at the 5-dma of $62.25 and the
20-dma of $59.25. Resistance will be Thursday's intra-day high of
$65.25. If you are considering opening a new play on AHP, possible
entry points should include a bounce off support if followed by
good volume (4 million shares or better). A bold charge up through
resistance on good volume might also work. Look for confirmation
of strength in the Dow Jones Industrial Average (INDU) and the
AMEX Pharmaceutical Index (DGX) when opening new positions.  We
will place our stop loss at the lowest level of support at $59.25.
Please review our IN PLAY section for updates and changes to our
trailing stops.

Picked on October 26th @ $63.50
Change since picked 0.00



SPLIT RUN PLAY UPDATES 10/26/00
===============================

None



SPLIT CANDIDATE PLAY UPDATES 10/26/00
=====================================

IGT - International Game Technology $37.75 -0.31 (+0.81)

International Game Technology, the world's number 1 supplier of
slot machines and computerized casino gaming machines, remains in
a firm upward trend. On Thursday, shares of IGT hit a 52-week high
of $38.56 before pulling back on news of confirmed acquisition
discussions with Silicon Gaming, Inc. (SGIC.OB) in which IGT would
pay $45 million for Silicon Gaming. On the positive side, the
stock has reached a new 52-week high every day this week. IGT has
already announced that it would beat estimates when they formally
announce earnings on November 7 after the bell. In the meantime,
support is the 5-dma of $37.56, with additional support at the 10-
dma of $36.44. Resistance is now at $38.56, Thursday's intra-day
high, and then the $40 mark. We would like to see a bounce off of
$37.56 or a breakout above $38.56 on midday volume greater than
350,000 shares before we start new plays. We are keeping our stops
at $35.50 to protect profits.

Picked on October 10th @ $34.88
Change since picked +2.88

===

OSIP - OSI Pharmaceuticals Inc. $75.00 -1.13 (+2.94)

Favorable demographics continue to push drug companies to invest
heavily in new drug discoveries.  This is good news for investors
of OSIP, whose core function is pharmaceutical discovery through
research and development. Recent estimates show the company is
expected to generate earnings growth of roughly 25% over the next
five years, which could increase substantially should a favorable
political climate prevail. These solid growth prospects have
provided a solid foundation for the underlying stock, as witnessed
by a long uptrend. Currently, the stock has performed well this
week despite an early dip in today's trading. The recent price
action is telling us that there may be substantial resistance at
the $80 mark. We'll be watching this level carefully for a profit
taking opportunity, unless shares can advance sharply through this
barrier on good volume (500k shares or better). If the later
scenario does unfold, then we'll look for potential entries at
$80, with additional resistance to follow at $85. For support,
we're only willing to risk retracements back near the 10-dma of
$70.95, so set stops just below this level at $70.00. When good
volume confirms an advance from support, we'll look for quick
entries. Look to the AMEX Pharmaceutical Index (DRG) for hints of
strength or weakness in the sector, prior to opening positions.

Picked on October 19th @ $72.25
Change since picked +2.75



=====
DROPS
=====


SPLIT RUN PLAY DROPS 10/26/00
=============================

None



SPLIT CANDIDATE PLAY DROPS 10/26/00
===================================

BEAS - BEA Systems $74.50 -8.31 (-11.06)

BEA Systems gapped down with the NASDAQ on Wednesday morning on
the heels of a negative earnings announcement from Nortel Networks
(NT). Shares of BEAS quickly moved lower, hitting an intra-day low
of $78.50, hitting our stops at $80.50 along the way.

Picked on October 22nd @ $85.56
Profit/Loss = -5.06 (-6%) (Stopped out on Wednesday @ $80.50)
Best Profit = +3.94 (+5%)

===

BLDP - Ballard Power Systems Inc. $99.88 -5.88 (-0.63)

The negative activity in the NASDAQ brought a close to our play on
BLDP on Thursday morning. Our stop at $102.00 was triggered when
the stock, led by the broad markets, sold off before lunch.
Therefore, we exit this play with a small profit. We will watch
BLDP for future trading opportunities and will advise you
accordingly.

Picked on October 15th @ $98.00
Profit/Loss  +4.00 (+4%) (Stopped out Thursday @ $102.00)
Best Profit +11.00 (+11%)

===

ELNT - Elantec Semiconductor $105.38 +10.38 (+0.75)

We could be seeing the last stage of the correction.  The theme
over at the NASDAQ this week seems to be to crush any remaining
technology stocks that fund managers can still suck a profit from.
Unfortunately, Elantec got caught in this desperate profit taking
yesterday, so we were stopped out.  Not surprisingly, the stock
snapped right back, so we may take a look at this play again.
With an average daily volume of only 761,000 shares, ELNT is prone
to these wild gyrations.  The long-term trend for ELNT remains
solid, as the stock successfully tested its 50-DMA again.  This
moving average closed today at $88.75 and traders may want to try
and pick up the stock if it bounces there again.

Picked on October 22nd @ $104.63
Profit/Loss +0.39 ( 0%) (Stopped out on Wednesday @ $105.00)
Best Profit +9.75 (+9%)

===

ENZN - Enzon $70.25 -4.00 (-0.75)

After a nice follow through on Wednesday, ENZN was knocked down
during today's NASDAQ swoon.  The Biotechnology Index (BTK) was
down nearly 30 points intra-day, and unfortunately this brief
period of profit taking beat up ENZN.  Although the BTK recovered
nicely, Enzon failed to enjoy the end of the day rally.  This
relative under-performance leads us to believe we are better off
exiting this play.


Picked on October 24th @ $75.25
Profit/Loss -4.25 (-6%) (Stopped out on Thursday @ $71.00)
Best Profit +4.75 (+6%)

===

GMST - Gemstar-TV Guide International $68.25 -5.94 (-1.75)

A massive sell-off in the NASDAQ Composite Index (COMPX) on
Wednesday triggered our $63.00 stop on GMST. We are now out of
this play with a small loss. We will continue to watch GMST for
more favorable play conditions in the near future. We will keep
you posted of any development should we add this play again at a
later date.

Picked on October 19th @ $69.13
Profit/Loss -6.13 (-9%) (Stopped out on Wednesday at $63.00)
Best Profit +3.37 (+5%)

===

TRMS - Trimeris Inc. $70.00 +2.44 (-1.88)

Trimeris was looking good on Wednesday morning. The stock traded
to an all-time high of $76.50 early in the session. However, as
the day wore on, TRMS reversed directions and headed into negative
territory. We were stopped out at $71, so we are dropping this
play.

Picked on Oct 17th @ $70.63
Profit/Loss = +0.38 (+1%) (Stopped out on Wednesday @ $71.00)
Best Profit = +5.88 (+8%)

===

WIND - Wind River Systems Inc. $39.31 +1.31 (-3.06)

The Northern (as in Nortel) breeze was too strong for Wind River
Systems on Wednesday, meaning our $39.00 stop loss was triggered.
We are now stopped out of this play with a small loss after
yesterday's huge Nasdaq sell-off. The damage could have been
worse, though, had we had not used a stop loss.  So, we will lick
our wounds and will move on better opportunities.

Picked on October 22nd @ $42.38
Profit/Loss -3.38 (-8%) (Stopped out on Wednesday at $39.00)
Best Profit +0.62 (+1%)



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


NEW SHORT PLAYS 10/26/00
============================

None



SHORT PLAY UPDATES 10/26/00
===============================

DY - Dycom Industries $39.75 +2.19 (-1.69)

Dycom's grinding bounce rally came to an abrupt halt yesterday.
In fact, we came very close to being stopped on this play.  After
the close on Wednesday, it was announced that Dycom is being
removed from the S&P SmallCap 600 and is being placed into the S&P
MidCap 400.  We have stated all along that Dycom is a good company
that has posted consistently higher earnings.  However, the
perception of a slowdown in growth has hurt the price of the
stock.  Tomorrow's GDP numbers may also have an influence on the
share price of Dycom.  If GDP shows minimal growth of about 1%,
then the perception that the economy is slowing will have some
empirical evidence. Yesterday's drop took shares of Dycom just
below the support of $37.13.  Yesterday's low of $36.75 is the new
support, and if this price is violated, we may finally get some
decent profits for this short play.  The next support level is in
the low $30's, which is a level that Dycom broke out of on its
last up leg back in February.  The 200-DMA is extremely close to
dropping below the 50-DMA, which could confirm that Dycom has now
entered a longer term downtrend.  Both moving averages are just
slightly above $45.50.  The RSI has some room before a new
oversold condition is signaled.  The MACD had issued a buy signal
recently, but it's losing steam.  We are keeping our stop at
$45.00. You can find our trailing stop suggestion in our In Play
section.

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

===

UTHR - United Therapeutics Corp. $51.81 +1.88 (-7.94)

Shares of UTHR have staged a moderate rebound from Wednesday's
quick 3-point gap down at the open. With the lack of any company
news responsible for the buying, we think that some investors
could be drawn in by an apparent oversold position in the stock.
However, volume on the recovery was substantially light (318k
shares traded) and suggests to us that investors are still not
willing to buy heavy. A solid downtrend from highs in July still
confirms that the bigger picture remains in a weak position. To
get us heading back lower, we'd like to see UTHR trade near 500
thousand shares as prices decline. Should this scenario unfold,
we'll look for the congestion zone near $40 as our immediate price
target. In our favor is the traditional "October Swoon" of
technical stocks, which is bound to offer more pressure into the
first week of November. With this in mind, we'll look for initial
resistance to come at Wednesday's low of $48.38. Further down, the
$45 mark will likely hold some resistance ahead of major
opposition at $40. We'll look for improved volume to confirm
declines through these levels, prior to opening new plays. For
support, look to the $52.94 level (Tuesday's gap down) bolstered
by the 5-dma of $54.28 as an initial resistance base. Above this
level, our stop of $59 will help protect us against a technical
rally, or short covering. Confirm short entries with weakness in
the AMEX Biotech Index (BTK).

Picked on October 24th @ $52.94
Change since picked +1.13



SHORT PLAY DROPS 10/26/00
=============================

None


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

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