sorry for the delay
---------------------- Forwarded by Mark - ECT Legal Taylor/HOU/ECT on 
01/27/99 04:01 PM ---------------------------
   
	Enron Capital & Trade Resources Corp.
	
	From:  trials@optioninvestor.com (Option Investor Newsletter     Trials)      
                      01/24/99 06:09 AM
	

Please respond to trials@optioninvestor.com
To: Option Investor Newsletter Trials <trials@optioninvestor.com>
cc:  (bcc: Mark - ECT Legal Taylor/HOU/ECT)
Subject: Sunday - Option Investor Newsletter 1 of 6



The Option Investor Newsletter  Sunday  1-24-98  1 of 6
Copyright 1999, All rights reserved.
Redistribution in any form strictly prohibited.

Posted online for subscribers at http://WWW.OPTIONINVESTOR.COM

Published three times weekly, Sunday, Tuesday, Thursday evenings.
New plays and market wrap updated daily on the website.


Entire newsletter best viewed in COURIER 10 font for alignment
******************************************************************
MARKET STATS FOR LAST WEEK AND PRIOR WEEKS
******************************************************************
       WE 1-22           WE 1-15           WE 1-08        WE 12-31
DOW     9120.67 -219.88  9340.55 -302.77  9643.32 +461.89  - 36.56
Nasdaq  2338.88 -  9.27  2348.20 +  3.79  2344.41 +152.22  + 29.52
S&P-100  610.38 -  6.08   616.46 - 19.56   636.02 + 32.08  -  3.91
S&P-500 1225.19 - 18.07  1243.26 - 31.43  1275.09 + 45.93  +  4.15
RUT      422.44 -  4.61   427.05 -  4.18   431.23 +  9.27  + 16.42
TRAN    3063.80 - 84.73  3148.53 -211.75  3360.28 +210.97  +108.48
VIX       32.85            29.75            23.88            25.41
Put/Call    .54              .56              .48              .55
******************************************************************

Big blue beat estimates but investors turned red on Friday.

The bluest of the blue chips turned red on Friday after beating
analysts estimates. Even though they posted a win on the surface
the numbers behind the numbers painted the true picture. IBM made
$.04 a share on hedging currency. What this means is the currency
of other countries went up in value compared to previous levels
and IBM either made money on their currency hedge instruments or
the currency their customers used had gone up in value over
the value assigned when the deals were first done. If you agreed
to pay 1 million Baht for a computer when the Baht was worth 125
to the dollar and by the time the computer was delivered the Baht
was worth 100 to the dollar then IBM would get a windfall profit
of +20%. The difference between 125 and 100 to the dollar. (The
numbers used are for example only and not accurate) So IBM did
not do anything to earn the extra money except be in the right
place at the right time. IBM also had less sales than expected
which did not go well with analysts.

After the smoke cleared IBM had lost -$17 for the day. -$16 bln
in market cap. IBM accounted for over -70 points of the Dow loss
for the day.

SUNW on the other hand beat estimates by $.01 and announced a
split and only closed down -.44 for the day. It really was not
the fault of SUNW. The Nasdaq was hell bent on following the Dow
down even though it made several nice runs to positive territory
during the day. Sun had a backlog of $770 million in orders and
more coming in every day. The CEO said sales were expected to
increase as much as +20% this year. We expect SUNW to continue
upward with any Nasdaq rally.

The Clinton problem took a hard turn on Friday. With Republicans
starting to defect and looking for an easy way out to avoid more
negative press, the prospects of a dismissal look better every
day. This would help the market some as "no change" is typically
considered good news. The Byrd motion for dismissal is not likely
to pass but it set the tone for the future votes.

The real culprit again on Friday was the fallout from the Brazil
problem. Continued rumors of other countries possibly devaluing
their currencies put a cautious tone in the market ahead of the
weekend. Even though many very knowledgeable analysts said the
possibility of China or Hong Kong devaluing based on the current
Brazil problem was "very, very remote" the more safety conscious
investors were moving to the sidelines before the close. The
Brazil Bovespa recovered from earlier losses to close down only
-131 or -1.8%. All the European exchanges had closed down on
Friday as the increasing worry had investors taking profits there
also.

Is the U.S. market going down as some bears are saying? We don't
think so, YET. Without a "tail wagging the dog" news event this
week we feel that positive corporate earnings will continue to
move the market upward. Interest rates are going to remain flat.
Inflation is flat, the economy is growing. We have no reason to
sell off. The wild card is the Brazil crisis. The DOW, OEX and
RUT are all sitting at support on their moving averages. The
market is down -522 points in the last two weeks. We are due for
another technical "relief" rally this week. With all the negative
news out Friday the fact that the Dow only lost -73 points (if
you take out IBM) is remarkable. The Nasdaq had recovered from
a -38 point early loss and traded +15 until the end of the day
"fear of darkness" sell off. This is remarkable. The buy the
dip mentality is alive and well. There was strong buying at the
close on Friday as well as the early morning dip. As long as
buyers keep filling in the holes we will continue to build a
stronger base here. Again, the wild card is Brazil and the other
Latin America countries. A news flash on Monday morning could
wipe out the market in a heartbeat. Until the Brazil Real gains
some strength traders should consider playing smaller positions.
You can still capture some gains but have less at risk should
lightning strike.

We are at a pivotal point in the market. With all the major
averages setting on support it will take more bad news to push
us down and less good news to make it go up. There is still
lots of buyers in the market. As CNBC reported Friday there
is a huge "book" of buy orders at $2-$3 less than current prices
for many blue chip stocks. As long as these limit buy orders
stay on the books the chances of a substantial drop are slim.
Institutions want to buy but not at the top of the market. They
are using the "target shooting" approach we always suggest.

The target shooting approach to opening a position is simply
placing a limit buy order at -25 to -50% less than the current
ask and waiting for a dip to fill your order. Sometimes you
can wait days for a dip but in the current market climate we
are seeing dips almost every day. Normally the dips are too
quick to react with manual orders but if you have an existing
limit order you can get filled when it happens and sometimes
at the low for the day. For instance the SUNW FEB-100 Call
had a low for the day on Friday of $5.00 and a high of $8.00.
It closed at $6.50. The previous close was $7.50. A limit
order for -25% less than the previous close would have been
$5.63. You would have filled at $5.63 and could easily have
sold again for a +15% to +25% profit.

The AOL-140 Call closed Thursday at $14.00. A -25% limit order
would have been $10.50. On Friday the low for the day was $10
and the high was $14.88. You would have filled at $10.50 and
could have easily sold again for +20 to +30% profit the same
day.

Most traders would have bought at $13 or more after AOL started
back up. They would be thinking. OK, now it is moving, I will
jump in now. While this is not a bad idea it is not as good
as buying cheap. Once you make a decision to buy AOL or SUNW
or whichever stock you want, then the next decision is WHERE
to buy. If you use this method you will make fewer plays
because not all options will dip -25% in one day but the plays
you do make will be much more profitable. You will normally
be buying in at the low for the day. Would you like to be in
a position cheaper than everybody else?

We have had several serious rumors that Microsoft is going
to announce a 2:1 split this week. While the MSFT CFO had
said in an offhand remark several weeks ago that he would
"like to wait" until the $200 range before they split again,
I am being covered in emails that claim they will split
either Monday after the close or sometime during this week.
I have never had the volume of email on a split rumor that
I had on MSFT this week. I own MSFT currently and would
really be a happy trader if this comes to pass.

Watch the news Sunday for signs of the Brazilian flu and
plan your trades accordingly for Monday.


Good Luck


Jim Brown
Editor


***********
JIM'S PLAYS

The week started out great with Microsoft blowing away earnings
and gapping open the next day. I had broken a cardinal rule and
held over in anticipation of a split and got the earnings gap
as a surprise. THIS IS A VERY BAD IDEA!! I was forced to hold
some SUNW over earnings as the market was dropping too fast
and my limit orders never filled. Ouch! Fortunately Sun did
not do the IBM thing and actually traded up on Friday. If we
can get a Nasdaq rally Monday I might be able to get out of
the position alive. Other than the those two major trades
early in the week I did almost nothing. Friday I bought the
dip on faith and still feel pretty good about it. Now if
only Brazil does not blow up over the weekend.

Stock trades
Sold 5000 KMAG @ $14.69 cost 13.56   Profit $5,650
Sold 5000 SRCM @ $22.25 cost 22.75   Loss   -2,500
Sold 4000 PAIR @ $10.50 cost 10.50   Even        0
                                     Total  +3,150

Option trades
Sold (10)  OEX-FEB-630 CALLS OEY-BF @14.25 cost 13.00 + 1,250
Sold (25) MSFT-FEB-150 CALLS MSQ-BJ @18.88 cost 12.00 +17,200
Sold (100)SUNW-FEB-100 CALLS SUQ-BT @ 8.94 cost  8.19 + 7,500
Sold (4)   OEX-FEB-610 CALLS OEY-BB @30.00 cost 25.00 + 2,000
Sold (4)   OEX-FEB-625 PUTS  OEY-NE @24.06 cost 17.25 + 2,724
Sold (25) VOLVY-FEB-30 CALLS VQY-BF @ 2.75 cost  3.06 -   775
                                           Total      +29,899

Bond Spread

Sold   (10)MAR-129 calls, Sold   (10)MAR-125 puts
Bought (10)MAR-131 calls, Bought (10)MAR-123 puts
Net credit 45 points or $703 per contract             $7,030

                                   Total all trades +$40,079

This looks like a pretty good week but what you don't see
is the large loss I am currently holding in SUNW. If Sun does
not rise from the ashes this week the next Sunday recap will
be very ugly.

Current positions:

Call options in MSFT, DELL, AOL, SUNW, XIRC



****************
Market Sentiment
By Pinnacle Capital Advisors

Market's Momentum Lost

Don't look now, but the powerful market has lost its momentum and
we are beginning to see several classic failed rallies develop.
You would expect the financial and airlines sectors to roll over
given that these have been under pressure and trading below
their declining moving averages.  But what about Drug and
Healthcare? These sectors have been trading higher and should
follow the Technology sector into new territory, right?  Wrong.
Pinnacle turned Bearish on these sectors this weekend over the
near-term after violating key benchmarks of (DRG /740) and (HCX
/ 720), respectively.

More problematic is the Russell 2,000 (RUT). Not only is the
small cap coming up short of last July's high, but excessive
call buying by option speculators is occurring at out-of-the
money overhead benchmark levels as reflective by our high
Pinnacle Index (14.7) for the Russell 2,000.

http://www.optioninvestor.com/marketsentiment/image28.gif



Pinnacle's short-term indicators are still flashing BEARISH
overtones over the near-term so we advise subscribers to
tightly protect their long positions.  Any questions regarding
market sentiment can be directed at:
pinnacle@optioninvestor.com


Market Sentiment at a Glance    Friday      Tues     Thurs
Indicator                       (1/22)     (1/26)   (1/28)   Alert

Pinnacle Index (OEX):
Overhead Resistance (620-635)     1.4
Underlying Support  (595-610)     1.3


Put/Call Ratios:
CBOE Total P/C Ratio               .5
CBOE Equity P/C Ratio              .4                         *
OEX P/C Ratio                     1.2


Peak Open Interest (OEX):
Puts                              610
Calls                             610
P/C Ratio                         .9


Market Volatility Index (VIX):
CBOE VIX                         32.85                        *



Investors Intelligence:
Bullish                          60.0%                        *
Bearish                          30.0%




The Power of Expectation Analysis

It has often been said that the crowd is right during the
market trends but wrong at both ends.  Measuring and
evaluating the sentiment of the crowd, therefore, can give
savvy option traders a decided edge.


Pinnacle Index
OEX                             Friday     Tues     Thurs
Benchmark                       (1/22)     (1/26)   (1/28)


                    (630-635)      2.7
                    (620-625)      1.1
Overhead Resistance (620-635)      1.4

OEX Close                       610.38

Underlying Support  (595-610)      1.3
                    (605-610)      1.0
                    (595-600)      1.9

Average ratings:
Resistance levels 2.0 / Support .5

What the Pinnacle Index is telling us:
Overhead sentiment resistance is Moderately weak at the OEX
620/635 level while the underlying support is moderately weak.



Put/Call Ratio                  Friday     Tues     Thurs
Strike/Contracts                (1/22)     (1/26)   (1/28)

CBOE Total P/C Ratio              .53
CBOE Equity P/C Ratio             .40
OEX P/C Ratio                    1.15


OEX
Peak Open Interest   Friday         Tues           Thurs
Strike/Contracts     (1/22)         (1/26)         (1/28)

Puts                 610 / 11,153
Calls                610 / 11,865
Put/Call Ratio       .94

http://www.optioninvestor.com/marketsentiment/Image29.gif


http://www.optioninvestor.com/marketsentiment/Image30.gif




VIX
Volatility Index    Major
Date                Turning Point       VIX
-----------------------------------------------------------------
October 97          Bottom              54.60
July 20, 1998       Top                 16.88
October 8, 1998     Bottom              60.63
January 11, 1998    Top                 26.38

January 22, 1999                        32.85

http://www.optioninvestor.com/marketsentiment/Image31.gif

Http://www.optioninvestor.com/marketsentiment/Image32.gif



Investors Intelligence Survey
                    Major             Percent     Percent
Date                Turning Point     Bullish     Bearish

October 97          Bottom            22.0        48.3
July 20, 1998       Top               52.0        24.0
October 8, 1998     Bottom            38.5        42.7
January 11, 1999    Top ?             58.3        30.0

January 22, 1999                      60.0        30.0   *




Market Posture
**************
As of Market Close - Friday, January 22, 1999

                   Key Support
Broad Market         /Resistance    Last    Posture/Since  Alert

DOW Industrials    9,100   9,730   9,121    Neutral   1.15
SPX S&P 500        1,210   1,280   1,225    Neutral   1.12
OEX S&P 100          600     635     610    Neutral   1.12
RUT Russell 2000     420     435     422    Neutral   1.12

NDX NASD 100       1,900   2,010   1,964    Neutral   1.21
MSH High Tech        930     980     949    Neutral   1.21


Technology
**********
XCI Hardware         830     875     871    Neutral   1.22 *
CWX Software         610     665     651    Neutral   1.21
SOX Semiconductor    360     410     393    Neutral   1.8
NWX Networking       420     450     424    Neutral   1.8
INX Internet         470     570     478    Neutral   1.8


Financial
*********
BIX Banking          650     710     647    BEARISH   1.22 *
XBD Brokerage        630     725     646    Neutral   1.14
IUX Insurance        590     620     574    BEARISH   1.21

Other
*********
RLX Retail           800     860     828    Neutral   1.8
DRG Drug             740     795     739    BEARISH   1.22 *
HCX Healthcare       720     780     717    BEARISH   1.22 *
XAL Airline          310     350     304    BEARISH   1.22 *
OIX Oil & Gas        245     260     240    BEARISH   1.14



Posture Alert

After selling off at an important failed rally benchmark, we
have turned Bearish on several industry sectors including
Banking, Drug, Healthcare and Airlines.  We caution investors
that we have received a near term reversal signal across many
sectors that many have violated their 50-day moving averages.

A detailed description of our Market Posture and its
applications can be found at:

www.optioninvestor.com/marketposture


******************
Great Expectations
By Pinnacle Capital Advisors

Great Expectations

With another wave of key corporate earnings reports due out this
week, we have highlighted below the companies that will likely
have the greatest impact on the overall market.  Keep close
track of these companies.  If they beat expectations, we are
likely to move higher.  If not, we are likely to re-test our key
support levels again.

Options traders playing the Technology sectors, watch Microsoft
on Tuesday.  Microsoft will likely dictate the climate for
the technology sector for 1Q99.

Reporting                            Estimated   Pinnacle
Date       Company                         EPS      Index

Hardware:
1/26 EMC   EMC CORP                       0.46        6.2
1/26 KMAG  KOMAG INC                     -0.41        3.8
1/27 CPQ   COMPAQ COMPUTER                0.36        8.3
1/26 XRX   XEROX CORP                     1.67        6.6

Software:
1/26 CDN   CADENCE DESIGN                 0.35        2.6
1/26 CLFY  CLARIFY INC                    0.14        4.0
1/26 CSC   COMP SCIENCE                   0.54        6.2
1/25 RMDY  REMEDY CORP                    0.24        2.4
1/27 IFMX  INFORMIX CORP                  0.11        9.1
1/27 MACR  MACROMEDIA INC                 0.10        9.8
1/28 SHVA  SHIVA CORP                     0.01        4.0
1/28 SEBL  SIEBEL SYSTEMS                 0.15        8.7
1/28 VRTS  VERITAS SOFTWRE                0.21        9.9
1/26 RMDY  REMEDY CORP                    0.24        2.6

Semiconductor:
1/26 CY    CYPRESS SEMI                  -0.01        1.6
1/28 LSI   LSI LOGIC                     -0.02        4.8

Networking:
1/26 BRCM  BROADCOM CORP                  0.18        1.2

Telecommunications:
1/25 T     AT&T CORP                      1.00        6.3
1/25 BLS   BELL SOUTH                     0.41        6.2
1/25 TLAB  TELLABS INC                    0.59        6.1
1/26 NT    NORTHERN TELECO                0.71        6.0
1/27 BEL   BELL ATLANTIC                  0.69        2.9
1/27 PAIR  PAIRGAIN TECH                  0.11        3.0
1/28 GTE   GTE CORP                       0.87        5.1
1/28 ERICY LM ERICSSON TELE               0.29        3.8
1/29 NOKA  OKIA CP-ADR A                  1.01        3.0

Internet / eCommerce:
1/26 AMZN  AMAZON.COM INC                -0.19        1.1
1/26 CYCH  CYBERCASH INC                 -0.41       11.3
1/26 EBAY  EBAY                           0.04        N/A
1/26 RNWK  REALNETWORKS                  -0.04       12.2
1/26 USWB  USWEB                          0.05       10.0
1/27 AOL   AMERICA ONLINE                 0.14        2.2
1/27 SEEK  INFOSEEK CORP                 -0.42        1.1
1/27 MSPG  MINDSPRING ENTR                0.04        7.4
1/28 NETG  NETGRAVITY INC                -0.19        N/A
1/28 BCST  BROADCAST.COM                 -0.25        N/A
1/28 GCTY  GEOCITIES                     -0.33        N/A

Financial:
1/25 AXP   AMER EXPRESS CO                1.16        6.8
1/25 C     CITIGROUP INC                  0.56        4.0

Pharmaceutical:
1/26 AHP   AMER HOME PRODS                0.44        7.1
1/26 JNJ   JOHNSON & JOHNS                0.51        6.5
1/26 MRK   MERCK & CO INC                 1.16        5.6
1/27 SGP   SCHERING PLOUGH                0.28        7.5
1/28 BAX   BAXTER INTL                    0.73        3.0
1/28 LLY   LILLY ELI & CO                 0.51        1.8

Biotechnology:
1/27 AMGN  AMGEN INC                      0.84        9.4
1/28 CNTO  CENTOCOR INC                   0.12        5.8

Airline:
1/26 LMT   LOCKHEED MARTIN                0.81        2.1
1/27 BA    BOEING CO                      0.42        1.9

Oil & Gas:
1/25 CHV   CHEVRON INC                    0.51        2.3
1/25 DO    DIAMOND OFFSHORE               0.56        3.4
1/25 HAL   HALLIBURTON CO                 0.27        6.2
1/26 BHI   BAKER-HUGHES                   0.17        1.0
1/26 TX    TEXACO INC                     0.30        5.3
1/27 MOB   MOBIL CORP                     0.54        4.2
1/28 RIG   TRANSOCEAN OFFS                0.83        2.9

Consumer:
1/25 PG    PROCTER & GAMBL                0.77        2.2
1/27 MO    PHILIP MORRIS                  0.72        4.5
1/28 KO    COCA COLA CO                   0.24        2.9
1/29 HSY   HERSHEY FOODS                  0.85        2.4
1/27 DIS   DISNEY WALT                    0.25        1.4
1/28 G     GILLETTE CO                    0.39        2.4


Excessive Optimism / Pessimism

Often times when companies release corporate earnings, the stock
will move/gap up or down depending on the level of expectation
built into the stock prior to the release date.  This level of
expectation can be measured, in part, by the Call/Put ratio and is
represented by our Pinnacle Index figure.  The average Pinnacle
Index is 2.0.  Therefore, an index appreciably higher than 2.0
reveals a high level of optimism while an index lower than 2.0
reveals a high level of pessimism.  For aggressive options traders,
we have highlighted companies reaching extreme expectation levels
below.

For example, the company with the highest and lowest expectation
reporting this week is Realnetworks (RNWK) and Baker Hughes (BHI)
with a Pinnacle Index of 12.2 and 1.0, respectively.  This
suggests that if Real Networks does not beat their estimate on
Tuesday, they are likely to sell-off.  Conversely, if Baker
Hughes beats their estimate or reports any favorable news, they
are likely to move higher.

Reporting                            Estimated   Pinnacle
Date       Company                         EPS      Index

Great Expectations:
1/26 RNWK  REALNETWORKS                  -0.04       12.2
1/26 CYCH  CYBERCASH INC                 -0.41       11.3
1/26 USWB  USWEB                          0.05       10.0
1/28 VRTS  VERITAS SOFTWRE                0.21        9.9
1/27 MACR  MACROMEDIA INC                 0.10        9.8
1/27 AMGN  AMGEN INC                      0.84        9.4
1/27 IFMX  INFORMIX CORP                  0.11        9.1
1/28 SEBL  SIEBEL SYSTEMS                 0.15        8.7
1/27 CPQ   COMPAQ COMPUTER                0.36        8.3
1/27 SGP   SCHERING PLOUGH                0.28        7.5
1/26 AHP   AMER HOME PRODS                0.44        7.1
1/25 AXP  AMER EXPRESS CO                 1.16        6.8
1/26 XRX   XEROX CORP                     1.67        6.6
1/26 JNJ   JOHNSON & JOHNS                0.51        6.5
1/25 T     AT&T CORP                      1.00        6.3
1/25 BLS   BELL SOUTH                     0.41        6.2
1/26 EMC   EMC CORP                       0.46        6.2
1/25 HAL   HALLIBURTON CO                 0.27        6.2
1/25 TLAB  TELLABS INC                    0.59        6.1
1/26 NT    NORTHERN TELECO                0.71        6.0
1/26 MRK   MERCK & CO INC                 1.16        5.6
1/28 GTE   GTE CORP                       0.87        5.1
1/28 SHVA  SHIVA CORP                     0.01        4.0

Low Expectations:
1/26 BHI   BAKER-HUGHES                   0.17        1.0
1/27 SEEK  INFOSEEK CORP                 -0.42        1.1
1/26 AMZN  AMAZON.COM INC                -0.19        1.1
1/27 DIS   DISNEY WALT                    0.25        1.4
1/26 CY    CYPRESS SEMI                  -0.01        1.6
1/28 LLY   LILLY ELI & CO                 0.51        1.8
1/27 BA    BOEING CO                      0.42        1.9


The Power of Sentiment Analysis

Last October (1998), Pinnacle Capital Advisors tracked
corporate earnings reports and advised subscribers about
the impact that excessive optimism and pessimism can have
on the stocks's performance following the release of its
quarterly earnings report.  If you recall, we identified
several stocks that reached excessive sentiment levels
including Intel (INTC) and Pfizer (PFE).


Reporting                            Estimated   Pinnacle
Date        Company                        EPS      Index

Excessive Optimism:
10/13 INTL  Intel                          .79       5.2
10/13 JNJ   Johnson & Johnson              .70       3.7
10/15 AAPL  Apple Computer                 .49       3.6

Excessive Pessimism:
10/13 JPM   JP Morgan                     1.08        .4
10/12 C     Chrysler                       .87        .7
10/14 PFE   Pfizer                         .57        .9
10/13 GM    General Motors                 .98-      1.2
10/16 G     Gillette                       .30       1.3
10/14 MER   Merrill Lynch                  .56       1.5

The first is Intel (INTC).  The semiconductor powerhouse had
rallied ahead of its earnings report Tuesday night (10/13) and
closed at $83.88.  What's interesting is that they beat the
street's estimate by 9 cents and yet the stock gapped down
the next morning (10/14).  And despite the 330 point Dow rate
cut rally on Thursday (10/15), the stock had trouble taking
out its recent previous high of $85.88.  Here, our sentiment
analysis alerted subscribers that expectations had gotten
ahead of itself and that despite the good news, the stock had
trouble advancing.

We saw the opposite in the case of Pfizer (PFE).  This blue
chip Pharmaceutical company had sold off more than 20% from
its summer high ($120) to close at $95.50 before its release
Tuesday night (10/13).  Here, Pfizer actually missed its
estimated earnings by a nickel.  Although the stock initially
gapped down the next morning, it quickly rallied and closed
higher. Our message: it's all about understanding and
managing expectations.


Pinnacle Index

What is the Pinnacle Index.  It is simply the put/call ratio
at key overhigh benchmark levels.  Typically, there should be
two (2) calls for every one (1) put.   So when this ratio
reaches extremes levels, it can presage key turning points in
the stock.  The average Pinnacle Index, therefore, should read 2.0.

One of the key components that separate OptionInvestor.com
from any other advisory services is our sentiment indicator
or Pinnacle Index.  The Pinnacle Index is designed to measure
the level of overhead resistance at key overhead benchmark
levels. This analysis can give savvy option traders a jump on
other traders.

It's important to note that the Pinnacle Index, like many
sentiment indicators, is a contrarian indictor.  This means
that the stock can and will go higher or lower despite what
our sentiment indicators might suggest.  However, our
experience has shown that the market is subject to a
precipitous sell-off if the Pinnacle Index reaches extreme
levels.



Coming Events
*************
Monday:

Existing Home Sls Dec      Forecast: 4.85M   Previous: 4.90M

Tuesday:

LJR Redbook       1/23     Forecast:  --     Previous:  1.9%
BTM/Schroeders    1/23     Forecast:  --     Previous:  0.3%
API Oil Stocks    1/23     Forecast:  --     Previous: 321.9M

Wednesday:

None

Thursday:

Jobless Claims    1/23     Forecast:  --     Previous: 346K
Durable Goods     Dec      Forecast:  0.4%   Previous: 1.0%
Employment Cost   Q4       Forecast:  0.9%   Previous: 1.0%

Friday:

GDP               Q4       Forecast:  4.0%   Previous: 3.7%
CPMI              Jan      Forecast:  --     Previous: 50.9
Michigan Cons Sent Jan     Forecast:  --     Previous: 100.5



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