AXXel Knutson RE-iterates Strong Buy On Defense Sector

The defense sector first issued as a strong buy on September 20th, 2001 along with Mr. Knutson's "Strong Buy" on the market has be re-interated here in January, 2002. The market "strong Buy" was Mr. Knutson's strongest buy recommendation since August of 1981 when the Dow Jones Industrial Average was at 888.

January 9, 2002

AXXel's VTAR Newsletter-
Let's Do Defense One More Time

Using, AXXel Knutson's
VTAR

["Volume Trade Analysis Research"]
"Manage the risk...the profits will take care of themselves"

Securities offered through
First Allied Securities, Inc.

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AEROSPACE & DEFENSE

The group has completed a consolidation and now the group can be re-purchased. That means the following are buys right here:

General Dynamics [GD-82.15] and looking for a successful test of the October 2001 high near $95.
Lockheed Martin [LMT-47.82] and looking to surpass the mid-50's it saw also in October.
Boeing [BA-40.54] a bargain and a buy here to surpass the 9.11 crash from the mid 50's.
Northrop Grumman [NOC-98.93] accumulate sub-$100.
Raytheon [RTN-32.86] also to attack the October highs and in this case that was about $37. Buy.
United Industrial [UIC-16.98] a very strong move to the 19+ range and now appears ready to complete to the twenties.
Esterline Technology [ESL-16.20] we expect a mirror move of the crash pattern $20 to $11 and if that were to occur, our objective would be about 23-27. Buy.

DISCLAIMER

Investment decisions should not be based solely on our proprietary indicators, which are intended as an adjunct to your additional analysis. Please accept these comments as market commentary. We do not intend these comments to replace detailed fundamental analysis. We urge you to accomplish that additional research via your contacts on the Internet or through a trusted financial advisor. If you want additional information on any of the securities discussed within, we will give it upon your request.

This report has been prepared from original sources and company data we believe to be reliable, but we make no representation as to its accuracy or completeness. This report is published solely for information purposes. It is not to be construed either as an offer to buy or sell or the solicitation of an offer to buy or sell any security or the provision of or an offer to provide investment services in any state where such an offer, solicitation or provision would be illegal. Any opinions expressed herein are statements of our judgment on this date and are subject to change without notice and we likely not update that change to you. The opinions expressed are that of AXXel Knutson and are not necessarily representative of First Allied. First Allied Securities, Inc., its affiliates and subsidiaries and/or their officers and employees may from time to time acquire, hold, or sell a position in the securities mentioned herein.

The author of this report, Axxel Knutson, does not invest in any of the securities mentioned in this report nor does his immediate family unless such securities are management companies of mutual funds or indirectly if such equities are included in mutual funds or index options. Equity investment involves risk of capital loss. We recommend that your portfolio be diversified by company size, industry group, and geographic region and by currency.

It should not be assumed that future selections will be profitable or will equal the performance of past selections. Securities listed herein illustrate selections made using proprietary indicators known as VTAR [Volume Trade Analysis Research]. These names, VTAR, TradingWeapon, www.TradingWeapon.com Trading Engine, www.tradingengine.com , Volume Trade Analysis Research, are service marks/trademarks of AXXel Knutson.

All recommendations and commentary are directed toward sophisticated, aggressive traders who have significant experience trading in a volatile market and who possess the financial resources to risk a loss of some or all of their invested funds. Commissions and, if you use margin, interest charges will lessen any return on investment. VTAR [Volume Trade Analysis Research] centers around the proprietary analysis of trading volume, price, general fundamental analysis, beta concerns, group rotation and detailed analysis of risk as it relates to entry and exit points in reasonably liquid stocks.

Axxel Knutson, President
axxel@blast.net
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AXXel Knutson is a registered Principal of and securities are offered through
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NASD/SIPC"

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In response to inquiries relative to opening securities accounts handled directly by AXXel Knutson, here is the deal: Accounts are handled directly by Knutson [TradingWeapon.com is the business name for AXXel Knutson, who is a Registered Principal of an independently owned office of Supervisory Jurisdiction [OSJ] with First Allied Securities, Inc. TradingWeapon.com offers all of its securities business through First Allied Securities, Inc., a member of the NASD/SIPC. Bear Stearns Securities Corp. is the clearing agent for First Allied. There are no additional investment management fees and there is no sharing of profits or losses. Client-selected stocks may not enter the account unless approved by AXXel and this is not a likely occurrence. AXXel hates your stocks. The minimum account accepted is $100,000. Sob stories are listened to for amounts under $100k but rarely accepted unless AXXel is in the mood. These accounts tend to be trading accounts so don't even ask if you can't stand the activity and at times total inactivity and cash. AXXel very rarely trades in the same stocks as clients or those written about in his newsletters or spoken about in media appearances with the exception of stock index options and mutual fund management companies. AXXel will disclose positions personally held in any such stocks in newsletters when published. First Allied Securities, its brokers and its officers may take and have positions although they receive no advance notice of new recommendations or changes in opinion. The opinions expressed within are those of AXXel Knutson and may not be shared by First Allied Securities, Inc. its management or its brokers. Those interested in additional information on any stocks discussed within may call at 908-647-5750 or email AXXel at axxel@blast.net. We do not deal in BB stocks [with the exception of some ADR's]. Refreshing, isn't it?
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