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Begin Part 2 of 3TEAM TRADES

OSSI: We jumped on OSSI when it moved off of the 50 day MVA in late January, getting a nice but brief pop on it before it sold back over February and came back to rest at the 50 day MVA once again. We were looking for a bounce again, and Monday saw it move up from a doji right on the 50 day MVA with a nice volume gain. We were ready for it today when it continued that move. Now there was some resistance at 24.20, and in an ideal world we wanted it to clear that resistance on stronger volume. The stock started out like a ball of fire, rallying up to 24 in the first half hour, but we were not chasing as we thought the overall market would have to come back after any move higher. Right after the release of the ISM services, OSSI, started back, falling to 23. It found support there and then rallied over the next hour to our buy point at 25.25. Volume was good. It then pulled back to test the move again, but held at 23.80 and started back up. It stopped again at 24.20, backed down, made a higher low and started back up. Looked like an ascending wedge forming intraday. It broke back over 24.25 and we jumped in with a stock purchase. The breakout did not hold and it spend the next 2.5 hours edging back down. It made an abrupt drop to 23, but in the last half hour bounced back up to close at 23.50. After hours some higher trades came in near 24; we will see what happens. Volume was very good on the session. The one regret we had is that we did not move in sooner on the bounce off of the 50 day MVA. We saw the good bounce start Monday and could have come in a bit earlier.

THE PLAYS:

BONUS PLAY: MKSI and ISLE took off! DCOM tried to continue but pulled back off of its run. INVR and IEX and still in their patterns, and SOV pulled back. ABT fell off the table.

ETM (Entercom Communications--$54.00; +2.25; optionable): Radio broadcasting.
http://biz.yahoo.com/p/e/etm.html
STATUS: ETM has been working its way up in the right side of a base dating back to May. It formed a double bottom as tried to breakout in January, finally taking out the recent and left-side highs of the cup on a strong run from its 50 day MVA (then 47, now 49.47). ETM tested the 50 day again on a pullback, but has held strong and is now again trying to make a move. Today ETM bounced up from its 18 day MVA (51.38), moving on volume that remained strong at 752,900 (average 284,200). Looking for a continued move to take out the high, and targeting 62 on that move.
BUY POINT: 55.10 on minimum volume of 400,000. Stop: 51.24 (7%).
POSITION: Stock and/or June $50 calls to buy (ETM FJ - low open interest).

SHFL (Shuffle Master--$18.50; -0.45; optionable): Manufacturing.
http://biz.yahoo.com/p/s/shfl.html
STATUS: As it makes its way up the right side of its base, SHFL formed a cup with a rather long handle, breaking out late February with a good run. Friday it made a solid move up to 19.40, but has peeled back on a breakout test the last two sessions. After high volume on the initial, short pullback, today SHFL eased back on low volume (119,600; average 235,600), closing over the former handle high (18.35) and 10 day MVA (18.29). Looking good on the test, and if it can hold the handle high, looking for a strong move back up. Target: 22.
BUY POINT: After showing it can hold 18.30, a move back over 18.75 on above average volume. Stop: 17.75.
POSITION: Stock and/or May $15 calls to buy (SFQ EC - 55 open interests).

Quick updates prior bonus plays.
BAX - Pulled back to the short-term MVA's after the bounce.
IR - Finally pulled back after the huge run, and adding a trailing stop just below 51.
WTSLA - Nice pullback to support.
APA - Rested today after the initial move.
MSM - Tapped with a nickel of the target - putting in a trailing stop around 22.50 to protect the profit.
UPS - Still solid
PTV - Still doing well on its breakout

PRE-ANNOUNCEMENT PLAYS FOR THIS WEEK: DHI made the announcement Monday! No announcement from IGT with the shareholder meeting.

NEW PRE-ANNOUNCEMENT PLAYS:

RNR (RenaissanceRe Holdings--$109.05; +2.01; optionable): Property & Casualty Insurance. Forecast to announce a split on 4-22-02 earnings (tentative date).
http://biz.yahoo.com/p/r/rnr.html
BACKGROUND: Based upon our research it does not appear that RNR has ever split its stock. The company has sufficient shares for a 2:1 split.
STATUS: Broke out of a jagged saucer in mid-February, and since hitting a high of 110.50 has pulled into an ascending wedge. It tapped the 18 day MVA (currently 105.16) and currently is holding the 10 day (106.91) on the most recent dip. Volume has been rather low in the formation of the pattern, down to 146,000 today (average 233,800). Looking good in this pattern, and watching for a breakout. Target: 120.
BUY POINT: 110.60 on volume of 315,000. Stop: 104.
POSITION: Stock and/or July $105 calls to buy (RNR GA).

SUI (Sun Communities--$39.17; +0.44; no options): Researching a new announcement date.
http://biz.yahoo.com/p/s/sui.html
BACKGROUND: Based upon our research it does not appear that SUI has ever split its stock. The company has sufficient shares for a 2:1 split.
STATUS: SUI has been trending steadily up the past year, bouncing along its 50 day MVA. In December and January SUI tried to make runs when it broke to new highs, but the moves were muted. SUI has edged along the last two months in a ragged consolidation over the 50 day (38.38), unable to break over 39 until today, when a huge infusion of volume pushed the stock to a new high (volume 178,600; average 40,800). Very strong move, and we are targeting 44.
BUY POINT: Still a buy up to 40 on continued strong volume. Stop: 38.25.
POSITION: Stock only.

PRE-ANNOUNCEMENT BEST PLAYS:
1) MUR - Forming a handle
2) DRYR - Good pattern
3) RUS - Looks poised to move
4) KRI - Trying to move up, but needs volume
5) CYN - Could not get the strength on the breakout
6) AHC - Resting a bit
7) LSTR - Testing the breakout

MUR ($86.23; +0.05): Forecast to announce a split 4-24-02 after the close, with earnings.
http://biz.yahoo.com/p/m/mur.html
BACKGROUND: Based upon our research it does not appear that MUR has ever split its stock. Authorized shares were increased at the last shareholder meeting.
STATUS: MUR is pulling into a nice handle-type consolidation, dipping back a bit today but on low volume of 166,800 (average 252,500). After hitting a high of 87.85 back in May, MUR made triple bottoms at 68 in July, September and November, and pulling back from highs at 85 on each move up. The last trip down caught support, however, with MUR moving back up from 76 (just below its 200 day MVA), forming and then breaking out of a cup. The recent move managed to take out the 85 level. It stopped just short of the high (making 87), but is not giving up much ground, instead forming the consolidation. Setting up now, and we are looking for a new high and run to 100 with current and new positions.
BUY POINT: 87.95 on volume of 340,000. Stop: 81.79 (7%).
POSITION: Stock and/or July $80 calls to buy (MUR GP).

DRYR (Dreyers Grand Ice Cream--$43.58; -0.41; no options): Forecast to announce a split with earnings on 4-24-02 before the open.
http://biz.yahoo.com/p/d/dryr.html
BACKGROUND: Last announced a 2:1 split on 10-27-97 at a price of $42. Before that it announced in October 1990 at about the same price range. The annual shareholder meeting was on 5-9-01 at which time no additional shares were authorized. The company has sufficient shares for a 3 for 2 split.
STATUS: Forming a sweet, though short pattern. DRYR has pulled into a handle to its 'flying w' double bottom pattern, which formed after its break from a large cup with handle pattern in December. Looking good as it pulls laterally on low volume (181,300 today; average 257,400), holding comfortably over its 10 day MVA (42.90). We will look for the stock to hold up over that support in a handle, and give us a breakout. Target: 50.
BUY POINT: 44.98 on volume of 370,000. Stop: 41.83. Aggressive: Over 44 with volume of 300,000 or better. 41.50.
POSITION: Stock only.

RUS (Russ Berrie--$31.31; -0.22; no options): Toys and games. Looking at a date in mid-April, and we are working to narrow that down.
http://biz.yahoo.com/p/r/rus.html
BACKGROUND: Last announced a split in 1993 at a stock price of $35. The company has sufficient shares for a 2:1 split.
STATUS: Nice, tightening pennant. Has been a steady performer, riding up its 50 day MVA with the occasional dip to test the 200 day (currently 28.32; 50 day 30.56). RUS broke out of a 2-month cup with handle in November and has moved more or less laterally up the 50 day MVA since then. It hit a high of 31.85 while moving in the present consolidation, and is showing a small pennant pattern over the 18 day MVA (31.23), and RUS dipped back toward that support today on continued light volume (13,100; average 24,800). Looks ready to breakout to a new high. Target: 36.
BUY POINT: 31.95 on volume of 34,000. Stop: 30.25.
POSITOIN: Stock only.

KRI (Knight-Ridder--$67.69; +0.75; optionable): Newspapers. Forecast to announce a split on 4-24-02 before the open. There is also the shareholder meeting the next day at 9:30 PT.
http://biz.yahoo.com/p/k/kri.html
BACKGROUND: Last announced a 2:1 split in July 1996 at a stock price of approximately $70. The company has sufficient shares for a 2 for 1 split.
STATUS: KRI made a very nice breakout to a new high recently, running out of a handle-type consolidation formed after the stock had fought back from a test near its 200 day MVA (60). Since the breakout, KRI has tested back a bit as it formed a nice pennant pattern. Monday KRI again tested its 18 day MVA (66.12) at its low, but moved up, although volume has not been there. It hit the buy point today, but again volume was down, coming in at 314,700 (average 405,100). Not the strength we were looking for, but still a nice pattern and we will see if the stock can generate more strength. Target: 80.
BUY POINT: 68.35 on volume of 540,000. Stop: 63.57. The move to a new high is 68.83.
POSITION: Stock and/or July $65 calls to buy (KRI GM - under 50 open interest).

CYN (City National--$51.45; -0.35; optionable): Regional bank. Forecast to announce a split with earnings 4-16-02 before the open.
http://biz.yahoo.com/p/c/cyn.html
BACKGROUND: Based upon our research it appears that CYN split its stock in 1990 in the $40 range. The company has sufficient shares for a 3 for 2 split.
STATUS: Hit the buy point but has not generated the necessary volume the last two sessions. After moving out of its 5-month cup pattern in January, CYN has formed an ascending wedge, initially testing its 50 day MVA (then 47, now 49), and now riding up along its short-term MVA's (18 day at 50.52). Off of the weak attempts to breakout this week, we will see if CYN can again hold the 18 day on a dip back, looking for continued low volume on the selling, and again looking for a breakout with much more strength behind it. Target: 60.
BUY POINT: From here or after a low volume test back: 52.45 on volume of 280,000. Stop: 48.78 (7%).
POSITION: Stock and/or May $50 calls to buy (CYN EJ).

AHC (Amereda Hess--$71.77; -1.43; optionable): Oil and Gas. Forecast to announce a split with earnings on April 24 (tentative date).
http://biz.yahoo.com/p/a/ahc.html
BACKGROUND: Last announced a split on 7-21-80. Base upon our research we are unable to determine the price at the time of the split announcement. The company has sufficient shares for a 2:1 split.
STATUS: Slowed a bit after the strong move through resistance. AHC is making a solid move up the right side of its base (a cup dating back to mid-May with highs at 90). Moves up have been on strong volume, and the stock made a steady run from mid-January and the 57.50 level. It stalled at the 200 day MVA (69.54), forming a week-long consolidation on low volume before blasting through that resistance with a nice move last Friday, and continuing up Monday, albeit on much lighter, below average volume. Today AHC pulled back, with volume up (699,200; average 631,000) but comparatively light. We will look for AHC to rest a bit, perhaps testing back toward 70 or forming a gradually descending handle to the cup. From that set up we will look for a continuation of strength. Target of 82 (there is a consolidation from August that could provide resistance at 79).
BUY POINT: After holding here or on a test back toward 70 on lighter volume, a move back over 72 on volume of 900,000. Stop: 68.
POSITION: Stock and/or May $70 calls to buy (AHC EN).

LSTR (Landstar System--$89.00; +0.25; no options): Researching a new date.
http://biz.yahoo.com/p/l/lstr.html
BACKGROUND: Based upon our research it does not appear that LSTR has ever split its stock. The annual shareholder meeting was on 5-16-01 at which time no additional shares were authorized. The company has sufficient shares for a 2:1 split.
STATUS: We took LSTR on its January run, then exited as it started to drop, and since then we have been keeping tabs on it on the watchlist. It tested back through its 50 day MVA (currently 80.11), hitting 77 before starting a move back up. Initially there was not much in the way of volume, but Monday there was an infusion of strength as LSTR made a new high. Today it rested with the market, actually testing back to 86.52 but recovering intraday to close with a 'hanging man' doji with greatly diminished volume (54,700; average 64,600). The candlestick indicates a pullback, but we could see LSTR take a mild rest, and we will look for it to hold 87.50, perhaps with a bit of a handle-type consolidation, and make a run to 100. Target: 100.
BUY POINT: After holding 87.50 on a light volume pullback, a move over 89 on above average volume. Stop: 84.50.
POSITION: Stock only.

PRE-SPLITS BEST PLAYS: NJR made a nice move going into the split, and we will see if it can continue strength post-split.
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) DF - Forming a nice pattern
2) WERN - Momentum is back
3) JEC - Looking for more
4) CUB - Resting after the breakout

DF (Dean Foods--$72.22; +0.64; optionable): Splits 2:1 effective 4-25-02.
http://biz.yahoo.com/p/d/df.html
STATUS: Has pulled back into a handle to its cup pattern, which dates back to late December (high of 72.47). DF has taken out that high in recent sessions (73.40 Monday), but volume has been low and the stock has needed to rest after having made a nice run up from the bottom of the base (64, then the 50 day MVA). Today DF gapped down to the 10 day (70.95) and pushed back up as volume remained low (447,900; average 559,400). Setting up well, and we are looking for a breakout. Target still 80.
PLAY: For new positions, a breakout: 73.50 on volume of 840,000), with stock and/or June $70 calls to buy (DF FN). Stop: 69.

WERN (Werner Enterprises--$26.53; -0.44; optionable): Splits 4:3 on March 15.
http://biz.yahoo.com/p/w/wern.html
STATUS: Made a great move back up Monday, breaking out of the doldrums that had embraced it since early February. Solid volume accompanied the break back over the 50 day MVA (25.56), and today WERN dipped back only slightly, showing the lighter volume we would want on a pullback (372,000; average 320,700). Pre-splits are momentum plays, and after a short rest we are looking for the momentum to start again, targeting initially the high of 29.57.
PLAY: On a move over 27, stock and/or April $25 calls to buy (QEH DE). Stop: 25.20.

JEC (Jacobs Engineering--$68.38; -0.27; optionable): Splits 2:1 on or about April 2.
http://biz.yahoo.com/p/j/jec.html
STATUS: A bit erratic, which is what we often get from pre-splits. JEC made a solid move back up from 62 last week, taking out its 50 day and 200 day MVA's (64.92 and 65.27), but pulling back to end last week. The 200 day held, as JEC bounced back Monday, closing near last week's high of 69.18. Today it touched that level before diping a bit on lower volume (168,200; average 244,000), holding up quite well. There is resistance at 70 from several prior 2001 intermediate highs, so will watch that level closely on a run. Looking for JEC to make a move up toward its high of 75.70.
PLAY: Could rest a bit here a bit more, but we are looking for a move over 69.18, with stock and/or July $65 calls to buy (JEC GM).

CUB (Cubic Corp--$60.55; -0.55; no options): Scientific & Technical Instruments. Announced a 3:1 split, subject to shareholder approval, date TBA.
http://biz.yahoo.com/p/c/cub.html
STATUS: Great breakout move Monday! CUB blasted up on huge volume from the support of its 10 day MVA (56.83). This moves adds to the breakouts CUB made in September, December and February, each time moving out of a lateral consolidation. There was a shorter consolidation this time, but the move was just as strong. Today the stock tested back to 58.62, but managed to recover, showing a 'hanging man' doji on much lower volume (46,000; average 35,400). That candlestick can mean another test back, and if we get that move we will look for CUB to hold 58.50. Still targeting 64.
PLAY: For new positions, on a low volume test of the 58.50 level, a move back over 59, with stock. Stop: 55.50. Stock only.

CONTINUING CANDIDATES BEST PLAYS:
1) THQI - Back in the picture after a strong move
2) AZO - Made the move down on the put!
3) RARE - Set up nicely

THQI (THQ Inc.--$52.19; +1.36; optionable): Software.
http://biz.yahoo.com/p/t/thqi.html
BACKGROUND: Last announced a 3:2 split on 10-26-99 in conjunction with earnings. The stock price was $44. Prior to that announced a 3:2 split on 7-23-98 in conjunction with earnings. The stock price was $33. The company has sufficient shares for a 2:1 split.
STATUS: THQI has been on the watchlist for quite a while, but finally looks like it could be up to something. It is forming the right side of its base, having moved up gradually from 40, and today getting some volume (1.76 million; average 1.45 million) after breaking through its 200 day MVA (50.13) on Monday. The stock pulled off of its high of 53.50 to close, and might need a bit of a rest here, but if it can hold its 200 day we will look for it to set up another strong move. Target: 60.
BUY POINT: Looking for a hold of the 200 day on a lower volume pullback, and then a move over 52.20 on volume of 1.7 million or better. Stop: 49.
POSITION: Stock and/or June $50 calls to buy (QHI FJ).

AZO (Autozone--$62.00; -2.06; optionable): Auto Parts
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: Got the move down! AZO paused Monday at the lows of its recent consolidation range, but after the drop we had already seen, we were looking at another severe drop to continue the play and set up new ones. Volume spiked up to what we were looking for in renewed selling, so we will continue to watch for a move down to the target of 55.
BUY POINT: Riding position toward the target. We can look at new or additional positions if AZO tests back up to the former consolidation lows at 63, a drop through 62 on continued strong volume.
POSITION: April $70 puts to buy (AZO PN).

End Part 2 of 3

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