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Begin Part 3 of 5

BONUS PLAYS: A great move by CCEL and a continued push by PG.

LAF (LaFarge--$34.45; -0.34; no options): Materials & Construction
http://biz.yahoo.com/p/l/laf.html
STATUS: The stock is in an ascending wedge pattern that started mid-May. Highs in the pattern are at 35, resistance that on LAF's most recent two runs the stock has failed to reach, most recently due to low volume. Friday the stock pulled back on lower volume of 96,400 (avg. 183,500), and after the Monday test of the 50 day MVA (33.51), we are looking for support at the 18 day MVA at 34.11. On a bounce from there, a breakout. Good money flow and positive buying. Initial target: 40
BUY POINT: 35.13, on volume of 248,000 or more. Stop: 34 (18 day MVA).
POSITION: Stock and/or October $35 calls to buy (LAF JG; low open interests). Deltas unavailable at the time of this writing. Please check with your broker.

AAS (Amerisource--$59.00; +1.85; optionable): Drugs wholesale
http://biz.yahoo.com/p/a/aas.html
STATUS: Making a move off the 18 day MVA (57.19) on strong volume Friday (at 1.9 million; avg. 749,136). The stock is in an 8-week flat base with a prior high of 62.50, and we are looking for a trade up to that level, initially. The strong volume suggests a good start on that move from here. After that, a breakout. High relative strength, and money flow is surging.
BUY POINT: Aggressive: 59.50, on continued strong volume. Stop: 56.61 (50 day MVA).
POSITION: Stock and/or November $55 calls to buy (AAS KK). Delta unavailable; please check with your broker.

Either/Or:

SOX (Phili Semi--$555.54; -27.49; optionable)
STATUS: Playing the trading range. Sold back and tapped 552.41 on the low Friday; the index may continue to sell down toward 535 this week, and if so we are looking for support in the 537 range (March and July prices) for a bounce back up. We don't mind playing the 20-point move down to 535 or the bounce back up after that toward the 583 range (10 day MVA is at 587.10 Friday). If it breaks below 541 on rising volume, look for a drop to 500.
BUY POINT: Downside Aggressive: Below 552. Upside Aggressive: On a bounce back up from the 537-541 range, on rising volume. Put: Below 541 on strong volume. Stop: 563.
POSITION: Aggressive Put: September 560 puts to buy (SJX UL). Upside Aggressive: September $540 calls to buy (SJX IH; no open interests, and delta unavailable). Put: September $540 puts to buy (SJX UH). Deltas unavailable at the time of this writing. Please check with your broker.

OEX (Standard & Poors--$593.87; -11.16; optionable):
STATUS: Broke below our support level at 600 despite lower volume (980,400; avg. 1.1 million). We have been playing this one down, and now it may try to test the breach of support and move back down. It already bounced back from a low of 590.18 on Friday. If that continues, we will look for the test. Target: 568
BUY POINT: Below 600: the index may move back up to test the 600 level; on "the kiss good-bye" (move back down from the resistance), we can look at getting in.
POSITION: September $600 puts to buy (OEY UT). Please check with your broker for
deltas.

DJX (1/100 Dj Ind--$103.46; -0.66; optionable):
STATUS: Hit a lower low Friday (101.81) with volume fading back (though not much) to 980,400 (avg. 1.1 million). On a move below that level on market selling we will be looking at taking the position on the downside play. Target is 100 for now; setting our sights on 97-98 if the sell-off gains strength. The index may try to test 102 before making a clean break down.
BUY POINT: Breakdown: 101.70, on average or better volume.
POSITION: September $104 or $102 puts to buy (DJV UZ or UX). Please check with your broker for deltas, which were unavailable at the time of this writing.

THE PLAYS: Great moves by ADVP, ATK, and ASW!

PRE-ANNOUNCEMENT PLAYS FOR THIS WEEK: Looking at BJ Tuesday and TTC on Wednesday.

BEST PLAYS: The pre-announcements continue to look very good. Besides the plays set forth below as best plays, there are some other stocks that also look good. These include Pre-Announcements THQI, NDN and ADVP.

PRE-ANNOUNCEMENT BEST PLAYS
1) BJ - Forecast for Tuesday
2) AZO - Still in a nice consolidation
3) MI - Still a good handle
4) CRY - Tightening over support. Looks ready to spring
5) TTC - Still in a handle going toward the forecast

BJ (BJ Wholesale--$54.47; -0.94; optionable): Forecast to announce a split on 8-21-01 before the open in conjunction with earnings. At this time the company cannot confirm this date.
http://biz.yahoo.com/p/b/bj.html
BACKGROUND: Last announced a 2:1 split on 2-4-99 at a stock price of $44. The annual shareholder meeting was on 5-24-01 at which time no additional shares were authorized. The company has sufficient shares for 2:1 split.
STATUS: Could not hold support at the short-term MVAs. BJ sold back Friday, tapping recent support at 54 (50 day MVA 53.63) before pulling up a bit to close. Not a terrific move, but not catastrophic either, as volume was low, down to 348,600 (average 622,000), and the stock is holding in the range of the late June highs. We often see "shakeout" selling in the tip of the pennant pattern, but in this market we will watch carefully its action at the current support to see if this selling turns into something more insidious. However, this has been one of the stronger retailers, and relative strength and money flow are very high, and the pattern is still decent. We will see what it can do Monday going into the forecast. The recent highs in the pattern are at 56.90, with the overall pattern high at 57.24. Breakout target: 66.
BUY POINT: Aggressive: A move over 55.25 (10 day MVA) on above average volume. Stop: 53. Breakout: 57.37 on volume of 840,000 or more. Stop: 55. On holding 54 and moving up, we can look at positions going into the close Monday.
POSITION: Stock and/or September $55 calls to buy (BJ IK).

AZO (Autozone--$45.65; -1.10; optionable): Auto Parts. Forecast to announce a split on 9-25-01 in conjunction with earnings. At this time the company has not confirmed a time for the release.
http://biz.yahoo.com/p/a/azo.html
BACKGROUND: Last announced a 2:1 split in March of 1994 at a price of $58. The annual shareholder meeting was on 12-14-00 at which time no additional shares were authorized.
STATUS: Did not sustain Thursday's move, as AZO saw some low volume selling Friday (sharply down to 664,700, average 817,000), a victim of the Ford warning (as were all auto parts stocks). A its low it tapped through the 18 day MVA (45.76) before pulling up to close just below that support. However, the stock is still within the current consolidation range (formed after a pullback from a solid breakout move in July, high: 49.20). We are looking for the stock to hold support here, and for the momentum to resume. Its 50 day MVA is below at 42.50, and recently it has hit intraday lows as low as 43.50. Target on breakout: 60.
BUY POINT: Aggressive: After holding support here, a move to 47.60 on stronger than average volume. Stop: 45.25. Breakout: 49.33 on volume of (1.1 million). Stop: 46.
POSITION: Stock and/or September $45 calls to buy (AZO II).

MI (Marshall & Ilsley--$59.05; -0.35; optionable ): Banking: Regional. We are researching a forecast date.
http://biz.yahoo.com/p/m/mi.html
BACKGROUND: Based upon our research it does not appear that MI has ever split its stock. The annual shareholder meeting was on 4-24-01 at which time no additional shares were authorized. The company has sufficient shares for a 2:1 split.
STATUS: One of the best sectors. Still moving in the flat consolidation, moving in a base of over 20 months after breaking out of a mid-level (i.e., in the middle of the longer base) cup with handle in mid-July. After pulling up from this week's earlier test of the 18 day MVA (58.63), MI sold back a bit Friday, but held support to close at the 10 day MVA. A pretty calm move within a decent-looking handle, and volume was light, down to 123,300 (average 205,100). We are looking for the stock to hold support, and for a volume surge to carry the stock over the handle high at 59.93. Money flow and relative strength are solid. Target: 70.
BUY POINT: Breakout: 60.06 on volume of 276,700. Stop: 58.
POSTIONS: Stock and/or September 55 calls to buy (MI IK).

CRY (Cryolife--$41.20; -0.23; no options): Biotechnology. Working on a date.
http://biz.yahoo.com/p/c/cry.html
BACKGROUND: Last announced a 3:2 split on 11-27-00 with a board meeting. The stock price was $43. The annual shareholder meeting was on 5-17-01 at which time no additional shares were increased. The company has sufficient shares for a 2:1 split.
STATUS: Little change Friday. After testing the recent breakout of an ascending wedge, and dipping back through the July highs in that pattern (43 range), CRY is currently holding support at the 18 day MVA (41.27). On Friday, CRY once again closed with a tight doji, on decreased, below average volume of 71,100 (average 127,000). The consolidation is tightening, and we are looking for a solid move up toward the recent high of 44.82. Relative strength is solid. Target: 52.
BUY POINT: Aggressive: Over 42 on above average volume. Stop: 40. Breakout: 44.94 on above average volume. Stop: 41.
POSITION: Stock only. No option chain.

TTC (Toro--$47.95; -0.66; no options): Manufacturing. Forecast to announce a spit on 8-22-01 before the market opens in conjunction with earnings.
http://biz.yahoo.com/p/t/ttc.html
BACKGROUND: Based upon our research it does not appear that TTC has ever split its stock. The annual shareholder meeting was on 3-13-01 at which time no additional shares were authorized. The company has sufficient shares for a 2:1 split.
STATUS: As expected, TTC came off of it doji to test the 10 day MVA (47.85) Friday. TTC sold back on slightly lower, below average volume of 43,900 (average 54,000). After making a solid breakout last week (high: 48.99), the stock seems to be moving into a handle-type consolidation, holding support at the 10 day on generally average volume. A lower volume handle off of a solid breakout will often lead to another breakout, but we will watch carefully to see if TTC can hold the 10 day (18 day below at 47.07). If it can, an announcement could spur a solid move up. Buying is solid and relative strength is high. Target: 58.
BUY POINT: After continuing to hold here, a move to 49.11 on stronger than average volume. Stop: 46.50. Going into the forecast we can look at more aggressive positions if the stock can continue to hold strong and make a move up in the handle.
POSITION: Stock only.

PRE-SPLIT BEST PLAYS: Remember, we try to grab these as they break out of good patterns or as they start a run right before the split. Not looking for home runs, but looking for those $3 to $4 moves running into the split, watching for topping signs and potential resistance. Not huge money, but it can be very steady. We set our initial stops at the 7-8% range below the purchase price (or just below obvious support), and move them up on a move to preserve our profits.
1) FRK - Nice lateral movement
2) POOL - Broke out again
3) ATK - What a mover!
4) FFIC - Still in good position

FRK (Florida Rock Industries--$54.35; -0.65; no options): Announced a 3:2 stock split last week, effective September 4.
http://biz.yahoo.com/p/f/frk.html
STATUS: FRK has rebounded nicely from its 50 day MVA (50.61) and is now in a small lateral consolidation formed in the range of its former pennant pattern from late July. Volume has dipped the last three sessions (25,000 Friday; average 42,500), and Friday the stock dropped slightly but held the recent lows at 54. We will look for it to hold that level or maybe shake out a few more sellers down to the 53 level. Then we look for the move up. Initial target: 65.
BUY POINT: After holding support at the 54 or down to 53 level, a move back over 55. Stop: 52.
POSITION: Stock only.

POOL (SCP Pool--$40.54; +0.34; no options): Wholesale basic materials. Splits 3:2 effective September 7.
http://biz.yahoo.com/p/p/pool.html
STATUS: POOL broke out again Friday with a small move, moving up off of the twin dojis it showed after it made another small break off of a recent lateral consolidation. Volume action continued to be good, with the stock moving Friday on volume of 292,400 (average 149,000). It is steadily moving up along it 10 day MVA (39.93) and looking strong, but as we play it upward going into the split we will keep our stops nice and tight to preserve our gains. Excellent money flow and buying. Target: 46-48.
PLAY: A buy up to 42.02 on continued strong volume, with stock only. Stop: 39.50.

ATK (Alliant Techsystems--$105.41; +2.64; optionable): Announced a 3:2 stock split, effective September 8.
http://biz.yahoo.com/p/a/atk.html
BACKGROUND: Last announced a 2:1 split on 11-2-00 in conjunction with earnings. The stock price was $89. The annual shareholder meeting was held 8-7-01 at 2:00 pm CT at which time additional shares were authorized.
STATUS: We got the move! After pulling into a brief, lower volume consolidation (over the left side highs of 101), ATK took off Friday, taking out our buy point and hitting a new all-time high before pulling back a bit to close. Volume was terrific, up significantly to 225,800, (average 148,000). The stock is still a buy up to 110, but after the gains ATK has made over the past 6 sessions, as well as the close off of the intraday high, we may some low volume profit taking right away. On a pullback, we are looking for support at the 104 level, with solid bounce up from there for new positions. We have plenty of time before the split. Target: 115.
BUY POINT: From here: Still a buy, but we would not chase it past 107 on this move. Stop: 104. Pullback: After holding 104 on some lower-volume profit taking, a move over 105.50 on continued strong volume. Stop: 104.
POSITION: Stock and/or November $100 calls to buy (ATK KT).

FFIC (Flushing Financial--$25.21; -0.28; no options): Banking. Splits 3:2 effective 8-31.
http://biz.yahoo.com/p/f/ffic.html
STATUS: FFIC fell a bit Friday, tapping down through the 18 day MVA (25; hit a low of 24.77) before pulling up to again close just over the 10 day (25.16). A relatively small loss, as volume was quite low, down to 12,100 (average 31,000). FFIC is still well within the consolidation pattern, and this was not a bad selling day off of Thursday's doji. Buying, money flow and relative strength are all quite strong. We are looking for the breakout move as we close in on the split. Target: 30.
PLAY: After holding support here, a move back over 25.50. Stock only. Stop: 24.

CONTINUING CANDIDATE BEST PLAYS:
1) RMD - Doji over support as it tests its latest move
2) ACF - A put

RMD (Resmed--$56.00; -0.10; optionable): Health services.
http://biz.yahoo.com/p/r/rmd.html
BACKGROUND: Last announced a 2:1 split on 2-25-00 with a board meeting. The stock price was $68. The annual shareholder meeting was on 11-6-00 at which time authorized shares were increased.
STATUS: Pulled back Thursday in what could be the beginnings to a handle in a 10-week saucer pattern. RMD had make a nice move up to start the week, breaking out over recent highs, and is now testing that move on lower volume, Friday showing a perfect doji right at those prior highs and over the 10 day MVA (55.60). We could see a consolidation here, and that would be perfect, but off of the doji we always have to be ready for a bounce back up toward the recent high of 57.66. A good pattern, and buying and money flow remain solid. Target on a breakout: 70.
BUY POINT: From here: A move over 56.50 on increased volume near the average (267,000; Friday 78,400). Stop: 54.50. Breakout: 57.79 on volume of 400,000. Stop: 55.50.
POSITION: From here: Stock and/or October $50 calls to buy (RMD JJ). Breakout: Stock and/or October $55 calls to buy (RMD JK).

ACF (Americredit--$52.60; -4.27; optionable): Credit Services.
http://biz.yahoo.com/p/a/acf.html
BACKGROUND: Last announced a 2:1 split on 8-18-98 at a stock price of $35. The annual shareholder meeting was on 11-7-00 at which time no authorized shares were increased. The company does not have sufficient shares for a 2:1 split, but does have sufficient shares for a 3:2 split.
STATUS: ACF has really given up, tanking the last two days and taking out its 50 day MVA (56.45) Friday. Volume remained huge on the selling, coming in at 4.16 million (average 1 million), and the stock touched a low of 49.11 before rallying back up to close. We could see an attempt to test the 50 day MVA, but will look for a fall back down, with a target on the downside play of 45 initially. The 200 day MVA is down at 40.
BUY POINT: After a failed move up to the 55 level a drop back through 53 on continued strong selling volume.
POSITION: September $60 puts to buy (ACF UL).

POST-SPLIT BEST PLAYS:
1) WFMI - Poised for another move

WFMI (Whole Foods--$33.14; +0.04; optionable): Grocery Stores. Split 2:1 June 5.
http://biz.yahoo.com/p/w/wfmi.html
STATUS: Tightening in the pennant and still looking good. After its massive breakout in late July, WFMI has made an orderly pullback, holding its 10 day MVA (32.72) and forming a flag pattern. It has tapped support at the 10 day the last three sessions, Friday showing a tighter doji on continued low volume of 458,800 (average 602,000). Poised for a good move. The breakout high was 35.13. Target: 40.
PLAY: A move to 34 on average or better volume, with stock and/or October $30 calls to buy (FMQ HE). Stop: 32.50.

End Part 3 of 5

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