Ken Deen's
			   THE AGGRESSIVE TRADER
			        BUY ALERT
                                                           1339 Virginia Rd.
Vol. 1, No. 73                                           Montecito, CA 93108
July 30, 1992                                                 (805) 565-2039
11:20pm ET                                            CompuServe: 72020,2050


   Stock+Options Account:  No trades

   Model Portfolio:
      * BUY PacifiCare Health Systems (Nasdaq: PHSYA).  Tomorrow I will buy
        about 140 shares.  (The number of shares will depend on the price;
	my intention is to invest about $4,900.) Today's closing price was 35.
      * BUY United Wisconsin Services (Nasdaq: UWSI).  Tomorrow I will buy
        about 200 shares.  (The number of shares will depend on the price;
	my intention is to invest about $7,100.) Today's close was 35 1/2.

   Deen Earnings Surprise Index System:
      * BUY PacifiCare Health Systems (Nasdaq: PHSYA).
      * BUY United Wisconsin Services (Nasdaq: UWSI).
      * These are the first DESI buys since May, and the first since I
        implemented the improvements to this trading system previewed in
	Vol.1 #70.

   The DESI-3 timing system is giving a green light for July 31.


Market Commentary

   The strong market rally this week has all the earmarks of the onset of a
substantial renewed bull market.  I continue to be very bullish.  I have
even bought on margin this week.


Discussion: PacifiCare Health Systems

   PacifiCare owns and operates 8 health maintenance organizations in
California, Oregon, Oklahoma, Texas, and Washington.
   My computerized DESI trading system has put out a buy on PHSYA for
tomorrow.  That alone is enough for me.  For those readers who want additional
reasons to buy, I offer the following.
   Last Friday, the government announced that it would increase Medicare
reimbursement paid to HMO's by as much as 13.2%.  This, plus positive earnings
surprises, has sparked a buying stampede in the HMO group this week.  Indeed,
HMO's have led the impressive Nasdaq rally this week.
   On Wednesday, PacifiCare reported quarterly earnings of 60 cents a share,
up 76% from a year earlier.  That was 17 cents above analysts' expectations,
according to Investor's Business Daily.  This comes on the heels of quarterly
earnings gains of +67%, +40%, +164%, and +40%.  Sales growth has also been
strong: +40% this quarter, and +27%, +25%, +29%, and +41% in the preceding
quarters.  The company has an EPS rank of 99, and a relative strength rank of
95, according to IBD.  IBD also reported that membership increased 30% during
the past 12 months.
   The P/E stood at 20 last Friday, before the earnings news, when the stock
was at 28 1/2.  As of today's (Thursday's) close, the stock has climbed to
35, but trailing earnings have jumped from $1.40 to $1.66.  This puts the
P/E now at 21.  This is a modest valuation for a company growing at such a
fast and accelerating clip.
   Looking at the stock chart, the stock closed Monday at 31 1/2, which was
a new all-time high and a breakout from a 6-month base.  Volume was high,
but not extremely so.


Discussion: United Wisconsin Services

   United Wisconsin Services is a leading provider of group health insurance
and managed care services, primarily in Wisconsin.  It is also in the HMO
group.  See the discussion of PacifiCare above for some bullish arguments on
the HMO group.
   My computerized DESI trading system has also put out a buy on this stock.
   On Tuesday, UWSI reported earnings of 92 cents a share, up 84% from a year
earlier and 29 cents above analysts' expectations.  Sales were up 28% over a
year ago.  In the previous quarter, earnings jumped 122%.  This earnings
report marks the 13th consecutive quarter of earnings gains.  The stock has
an EPS rank of 98 and a relative strength of 94, according to IBD.
   Last Friday, the stock closed at 27 1/4 and trailing earnings were $2.49,
for a P/E of 11.  Today, the stock closed at 35 1/2 and trailing earnings
have jumped to $2.91, for a P/E of 12 -- still very, very cheap!
   Two weeks ago, on July 15, the stock broke out of a 6-month base.  But it
didn't really get going until this week.  This week has been incredible, as
the stock has soared 8 1/4 points on consistently extremely heavy volume.
For example, on Wednesday the stock picked up 4 points on 12 times normal
turnover.  It's been like that all week.  This is very bullish.
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