Jim Goodman's "The Right Side of the PSYCLE sm"
Stocks/Industry Groups Timing Newsletter, and Education service
"The Teaching Newsletter"....just Learn the Patterns and Concepts Taught....then View the Charts, and Choose from sec. (3), (6), (7) ideas.... NEWSLETTER, ended formally with issue # 207+, a while ago....(so/but this NL is Not really being actually published formally, publically, any more), dated: 9:30 am, PST, Tuesday, Oct. 17, 2000

Important Note: this "NL" has No longer been publically available nor disseminated, for a while, due to gestapo, uncaring, ridiculous, illogical, NASD and SEC rules, and the uncaring, inconsiderate, and thoughtless nature of the brokerage firm with which I am currently associated....I am just doing a continual 'working version' forward, here, twice each week, to maintain and continue my real, actual, in-writing, in-advance, very-long-term track record, and to offer further significant 'proof' of the value and excellent timing experience of my "PSYCLE sm" concepts and teachings....

1) "PSYCLE SENSE sm": new:

As I mentioned to my people last week, many stocks were as oversold as they have been, around the last several bottoms we have had in the last few years....

According to a company that tracks such stuff, Fri., CNBC after close, Liquidity Trendtabs, says, Mon-Tue-Wed. last wk., had the record largest w/d ($ 10 bill.) from M. Funds, bailing out, ever, in history....So, what does that tell you ? But, then, for the week ended Oct. 11, the previous wk., they had an inflow ! showing how confusing all this stuff is, and, why, WE use charts and behavioral and sentiment, patterns....clearer, better, than other measures or indicators....

So, are you dipping your longside toes in the water recently, with close stops ? or are you shell-shocked, unable to ACT as I teach, and going to miss many bounces ?

2) "What's Been Said, and What I've Read":

a) Important Industry Group (Rotation) notes:
1) note added, as usual after nice drops, I added more EVB's among Techs, for hopefully, as before, nice, quick bounces.... 2) just notice I added many more EVB's in section (6) below, several I.G.'s, including some Utils, as they pullback from breaking out (stage 2 potential, dig ?)....but, simultaenously, added more Puttanles, including some Utils. as well.... 3) let me, as usual, also be the first/only to suggest EVB's soon among depr. Indl. Machy. stocks, like, BGG, BWA, FWC, etc. ...4) also note, more EVB's among Retail, REIT's, Banks, etc.... 5) also, as I ntimated last NL here, the 98 area on the long T-bond was/is support, hitting 99 5/8 already on Tues.

b) more, misleading, sensationalized, Late, and/or improper/incorrect comments from the Financial Media, Reporters, etc.:
1) another amazingly misleading after-the-fact front-page article, L.A.T., Tom Petruno (don't get me started), 10/2, "New Millenium, Different Leaders ? investors need to rethink strategy", showed how, counter to what they were all saying Dec.'99/Jan.'00, I.G.'s like, our Health Care, REIT, Finl. Svcs., Mid-caps, Utils., have vastly outperformed all the I.G.'s which 'the experts' incorrectly said, would be the leaders for 'the new paradigm' (again, don't get me started), like, Techs, Semis, Interrnet, stocks, etc., dig ? 'nuff said....they also showed another article/chart showing how, while "mid-caps/old econ. stocks" had underperformed from 1994 to 1999, they outperformed so far 2000, as I predicted....and, as usual, the same people who loved Techs at tiop, and hated depresseds at lows, now love the high ones, and hate the alread-down ones....the pattern never changes....too late already, as usual....if they had wanted to truly help, they would have shorted Techs into parabolas, right ? ....2) they also had another box/chart, saying, "the supposed cushoining effect of diversifying into Foreign stocks, is called into question", as those stocks have also underperformed, as I also predicted, when I was on TV, at/from their highs in 1994....next....

3) L.A.T. front-page scared-at-the-bottom-after-drops-not-predicted article, "Markets are desparate for 4th quater rally", says it all....remember, such rallies are quite normal hisotircally....saying, after drops, most M.Funds will not want to hand investors cap. gains distributions for ty 2000, when, in fact, they have unrealized bigger losses, dig ? (I reported on this recently herein), so, most Funds likely sold tons of Techs near lows....hah, hah....and people still pile tons of money into them, when they can outperform with more control, in individual issues....oy.... 4) then, L.A.T. 10/15, Walter (dont getme started) Hamilton big article, with stock list, as "Time to Buy - at least for a Trade ?" , listed a ton of busted Tech. stocks, like, LU @ 33+ (now 21), YHOO @ 81+ (now 50+), AOL 59+ (now 40, then 45), VRSN 188 to 157, CSCO 56 to 49, VZ 50 to 45, T @ 27+ (now 24), MSFT (55+ (now 50), AMAT 54 to 48, INTC 40 to 35, NOK 37+ to 30+, EBAY (59 to 50 to 60), etc., were already down more, VERY, VERY quickly....I cannot express my upset with these jerks, as you are aware....while I languish undeservedly....

5) it never changes: recent BW mag. article, titled, "Play ing the Oil Patch", is a little late, ay ? and, same issue big article,, "Cloning Money - Biotech shines even in a weak market", is also near a double-top, ay ? they only like them after big rises, as usual....how many times have I mentioned THAT herein ? and, contraily, same issue BW, a big slam-piece (near low, get it ?) titled, "Lucent: a large battleship with gaping holes", as usual, the same Mag. that loved it at highs, now hates at lows....the pattern never changes, ay ?

c) more incorrect/misleading/sensationalized, and/or improper comments, from Fundamentalists/Companies, newspapers/magazines, etc., vs. illogical/Contrary/Unlinkable, past/present/future stock price moves:
1) more confirming sentiment: recent L.A.T. front-page editorial, "the Dream American Economy", saying, recent 'exuberant' economy nothing new for USA, no big deal....which, itself, is worrisome at this stage, yes, contrarily ? also, this "still-longest-running 112-mo.-long rise of our econ., shows no sign of slowing"....So, watch for the end in here, ay ? we shall see.... 2) found a BW mag. dated Feb. 2000, with big artiocle titled, "Apple Mac hits another home run" - uh, as I mentioned herein at that time, its stock around 60, rose a little - then collapsed to 20 recently, yes ? see ? the pattern rarely changes !

d) more, likely late, incorrect, and/or misleading, comments, from Brokerage firms, NL writers, Analysts, economists, Money Managers, etc.:
1) idiot analysts Fri. CNBC 11:15, were actually now talking negatively about Semi. Ind., warning of, get this, "excess capacity" ! of course, they never warned anyone at the top, before big recent drops in stocks, right ? the pattern naver changes....meanwhile, they still love, CY, PMCS, IDTI, ADI....wonder what their actual L.T.T.R.'s have been on their stocks.... 2) a fairly sharp guy CNBC Fri., 12:31, Kevin , pointed out that, also in 1997, 98, 99, and, now, bottoms in Oct., and pos. divergences in new low numbers, as S.T. bottom positives from here,

e) more general items proving why one should probably ignore 95 % of everything else out there:
1) you know I detest most things politcal, but articles about recent useage of "U.S. Petroleum reserves" was a 'slick' ploy for Gore, supposedly, ay ? ...2) editorial, L.A.T. 10/9, "The Not-rich are getting Not-risher", mentioned what I have been saying for years: that the schism/gap between the haves and have-nots is wideining, even into this supposed 'boom'....incomes of those over $ 121,000 (the top 1 %) rose 31 %, between 1995 and 1999....compared to the 3.4 % rise in incomes of the other 90 % of tax-return filers....and that 72 % of all capital gains went to people with incomes over $ 200,000....and that the avg. after-tax income FELL for the bottom 40 % of all taxpayers, ouch....and that the 'your taxes at work' census recently undertaken, left out any measure of capital-gains questions....and, of course, 44 mm people still do not have health insurance....amazing, huh....your Govt. at work, don't get me started....

So, as you have seen, for years now, how well one does, often, just "doing" the best 'individual' stocks, and rotating Ind. Groups, chart-technically, and sentiment-wise, mostly long-side, while ignoring, or going contrary to, 95 % of all Media messages, and "indexes/averages" comments, from the peanut gallery ? By just getting my output, alone, you do much better, and save time, by not having to even try to "seek, and process" tons of other, useless fundamental info., anyway....and we also help remove potential emotional problems for you, before they begin....

3) Most recent Hypothetical "PSYCLE sm" transactions, to be mimicked, and referred back to:

Always remember to view "1-year-at-least past" charts of everything you can view, herein, along with their 200 day moving averages (DMA's), to "see/learn" the "PSYCLE patterns", and see where/when stocks in section (3) were Hypothetically bought near lows, and put near highs....all % percentage 'Gains' are just logical ESTIMATES for L.T., ITM options, where exist, and/or on Margin, where no options exist....

* Previously assumed Long positions most recently SOLD (showing the actual price changes, in parentheses, from the price where/when recently originally recommended herein, to the price where very recently Hypothetically "SOLD")....
"Q" = 'quick', i.e., after less than a month or so holding, "VQ" = 'very quick', i.e., just a couple of weeks time, and "VVQ" = 'very very quick', i.e., often after just a few days since 'bought' herein....and, L.T., means 'long-term', i.e., at least a few months' time holding period:

1/2 pos. calls FILE (16+ to 23+) for VVQ % Gain....1/2 pos. puts NVDA (85 to 59+) for VQ % G....all puts CYN (40+ to 32) for Q % G....

and/but, longs, KLIC, BYD ?, DOW, FCX/A, FCX, AMI, PER ?, DPH no ?, FFA ?, EWB ?, MU, BXS, IGL, CCE, SRR, PMTC ?, NOVL (L.T.), and, puts, EXAR, PMI, BEAS, INRS, for very quick, very small losses, normally of small overall consequence to a properly diversified L.T. portfolio, except recently perhaps....which, again, normally presages much better performance forward, yes ?

NOTE: while most of the $ 5. to $ 10. stocks are listed here as "stocks on margin" ("stk.on.mgn."), if one Had bought L.T., in-the-money calls options, their % Gains/Losses would have been multiplied, higher, right ? We prefer not to buy Calls on most stocks under $ 10., unless their patterns are phenomenal, as their options premiums tend to be too high, vs. buying those stocks on Margin, with close stops, where suitable, instead, with less arithmetic risk, and yet, similar reward potential--- stocks themselves have no "premium", right ? and, of course, if one just bought said longs for cash, and not on margin, the % Gains/Losses here would be relatively smaller, though still excellent, for such short holding periods, yes ? also, obviously, these "hypothetical transactions" are always listed, from biggest % Gains, to smallest, then all losses....

* Newly/Additionally BOUGHT/Buyables, right around/near these prices only:

(either for Cash, especially in Pensions, and/or on Margin where suitable, and/or Only L.T., in-the-money Options, where suitable/available, always Diversifying, always with close Stops below/above recent lows/highs):
**** Newly BOUGHT Long-side, for potential Rises: (note, most are still pretty low-priceds, read thoroughly, some new "repeats" and "revisited" "new" ones again, here): each alphabetically by symbol: again, "just get real close" to suggested prices:

ADIC @ 12, 1/2 pos. AIR @ 10 1/2, 1/2 pos. BGG @ 32+, 1/2 pos. BNP @ 8, 1/2 pos. CCU @ 45+, CKP ny, 1/2 pos. CNXT @ 32+, CRDS @ 5+, 1/2 pos. DQE @ 36++, 1/2 pos. INTC @ 35, LBRT @ 20+, NETA ?, PB @ 17-, 1/2 pos. PRGN @ 18+,

"Repeats": (some of these are/were '1/2 size positions): AAI. @ 4, AII. @ 8, AM @ 16++, AN @ 5 3/4, ASA @ 15, BGO @ 0.405, BGP @ 13-, BKS @ 17-, BYD no ?, CAU 0.87, CHINA 6++, CN @ 4, DCN @ 20+, DPH @ 14 ?, DROOY @ 15/16, EMA @ 8+, ENN @ 6+, EWB @ 19-, F. @ 24, FFA no ?, FMT @ 3 3/16, HDG @ 1.00, HLIT @ 11-, IHK @ 1.03, KRY @ 1.25, LEA @ 20+, LU @ 21-, MRCH @ 9+, MRD ?, MSTR @ 19+, NITE @ 25-, NTLI. @ 38+, OCN @ 5.47, ORB @ 7 3/4, PKS @ , RT @ 9 1/8, SEE @ 44, STEI. @ 2-, SVU @ 15+, TMG @ 4.43, TSP @ 15, USU @ 4 1/8, VIXL @ 4 5/8, WH @ 11...."buy (only) low", right ?

** Important: took, CEL, PT, BMG, AOL, BOY, MU, Off the pot. Long Buys list, before they might have been Hypothetically "bt."....we do Not "Guess" at bottoms....or tops....

**** Newly BOUGHT, long "PUTS" (or "short sales" if no puts), for potential Drops: alphabetically by symbol:
(new ones): 1/2 pos. DUK @ 87++, 1/2 pos. JNJ @ 97+ ?< 1/2 pos. OAT @ 80-, 1/2 pos. SII. @ , 1/2 pos. PE @ , 1/2 pos. FPC ?, IMPH @ 65-, MTG @ 63

"Repeats": (some are/were '1/2 pos.') CBL @ 25+, COGN @ 42-, ENE @ 90-, FRX @ 120, GR @ 42+, ITWO @ 190+, JNPR ?, KMI. @ 40-, NBL @ 42-, PNK @ 22+, RKY @ 65+, RTI. @ 14+, SEPR @ 120, SFY @ 41+, VRTS @ 150 (fobo ?)....

and/but, took, 'anything already way down', and, UNT, DNA, , Off the pot. Puts list, before "put", as they aborted their patterns immediately (also see recent past issues taken off, here).... remember, any new highs = off the Puts list....so VIEW their charts, to see what 'aborted Puts patterns' look like, for YOUR lifetime benefit....also, obviously, where they have fallen nicely, many of these were 'just missed' herein as well, right ?

*** and/but, among stocks recently given you herein, in sections (6) and (7) below, we "just Missed", LGTO, PHC, SAPE, MOT, ADIC, USB, TER, ODP, FD, as Longs/Buys near very recent lows, and, ADRX, AES, GRP, CEI, MUR, GUC, CPN, PHA, LLTC, SZA, TMPW, DLTR, as Puts/Shorts, near recent highs....Every single stock ever listed here over past NL's was specifically given you herein, in sec. (6) or (7), previously, and you very likely could still have caught them, if you took the time to view their charts....More proof of the power of "PSYCLE sm" patterns....again, just because I honestly admit to "missing" some, which DO work anyway, that I give you herein, does not mean YOU have to miss those same stocks....if you do just a little work, YOU may certainly catch ones, which I may happen to just miss, herein ....making you money, in both directions, most of the time, yes ?

*** All previously mentioned ideas are Followed-up here below, for your Educational/Trading benefit....check these lists/issues briefly, to see if any YOU own, or are considering owning, are mentioned....

4) Already given out in previous NL's, assumed Hypothetical "Long-side" positions:
(issues moving since last time, worthy of following-up, and/or mentioning, because of recent price moves, still remaining long in most all of them, unless otherwise noted):

(* too late to buy up here, usually up already, and/but acting A.O.K., so stay in these, long, for now):

**** note: (sos) means "Sell On Strength" (i.e., on a bounce up towards resistance, and/or where it broke down from)....("S") means Sell it here (if still right at/near the listed price level).



acting a.o.k., or strong(er):
still giving you plenty more Winners: CRDS 7 3/8 up 2 1/4, FFIV 32 1/4 up 5 5/8, MSTR 24.43 up 3.81, PRGN 21 5/8 up 3 1/2, LBRT 25.68 up 5.68, UIS 11 1/2 up 1, PHC 21 up 1 3/4, BKS 18 up 1 3/8, FILE 23.43 up 2.43, BGG 34 1/2 up 1, CNXT 37 up 5 1/2, ADIC 13 up 1, AAI. 4.44, WH 11 1/2, higher, since last time here....and, FFD 11+, PG 74, still higher even....

and/but, then, seeing Many pullbacks, and more bounces after pullbacks:
LEA 22.18 up 1, CPB 27 3/8 up 1 3/8, LBRT 22+, CRDS 6.43, CMH 9, DPH, VOD 38 1/2 up 4, DOW 23+, GLT 10.56, CA 26, K., F. 23.71, 24.71, FFIV 28+, AM, CSCQ, OHI, USU, GY, NTLI. 43 3/8, 45 1/2, 38 1/2, 41, CN, LEA 21 3/8, ABS 23.18 up 1, MLG, HA, CA 25 1/8, SEE 43.43, 45.50, 43.56, DCN 20 3/8, ALI, OHI, HCM, VGZ....some of these are also in "ms/sos" list below, and, those must strengthen or else....


and/but, these already assumed Longs, are acting weaker S.T., and/or must strengthen, and/or must strengthen "again/anew", and/or must "break above recent high or else", and/or are sales on strength ("sos") to/towards/near resistance:


(note, some of these are also in "pb" list above ....obviously, any stock near its lows, or close to breaking, "must strengthen" or else, yes ?) DOW 24 7/8 (S), MRCH, FMT, HLIT, RAD, STEI, DPH, FFA, RT 9-, EWB, VIXL 4.56, MRD, PMTC, MLG, AM, CN, DROOY, ASL, AU, AN, USU, KRY, BTO....

5) Already given out in previous NL's, assumed Hypothetically long "Puts" positions:

(issues moving since last time, worthy of following-up, still remaining long in these Puts, unless otherwise noted):
* may too late to "begin" to buy puts on these stocks now, but they are acting properly, stick around:

Puttables specifically given you herein, many which are Falling/further since last time here:
check their patterns out:
lots more nice drops for you: NVDA -4, DV -4, MTG -3, OAT -3, IMPH -1 1/2, PNK, CBL, HSY, lower, since last NL here....and, JBL, KSS, MGG, JPM, MBG, PSEM, OAKT, TECD, SYXI, NVDA, approached/fell to/below their 200 DMA....and, ORBK 38, VSEA 30, NVLS, and the aboves, even lower still....

* But, then, these, are acting too Strong, and/or are Bouncing, intraday, and/or Must Weaken anew, nevertheless, and/or are sales on pullbacks/weakness ("sow"):

: FRX +6, -5, FS -2 1/2, CHKP, SANM, ANEN, VRTS +10, -5 1/2, SEPR -6, +6, CPN, GELX, RKY +2, EMC, BRL, NBL -2, TOT, GE, HSY, FS, COGN, GR, ITWO +17, -10, BHI., SKYW -1, IMPH.... obviously, getting some expected bounces....this ends our 'Downside' follow-ups for this NL....and, were, as others I have suggested, VTSS, ANEN, BXP, NBR, 'fobo's ?

6) Now--- Here are Other, Fuller lists, of still-Depressed, Long Buys, near their recent Lows Only, for potential Rises towards resistance, always Diversified (w/close stops, when/if their basing or "EVB" patterns break down):

Potential Longs, by Industry Groups, for "Rotation":
some decent bases here, and many decent EVB's and double-or-triple- bottoms, (but, again, Not when/if any of these make new lows here, and, NOT if they are already "up", much, off lows, right ?):


and, these REIT's, most also with big potential Dividends ? (HCN, ENN, CWN, MLS, BNP, BPL, GRT, RAS, TCC, HRP, JDN, AII, etc.)
Railroad/Auto/Trans. (BD, AAI, F, DCN, DPH ?, AFWY, CSX, CUM, etc.)
and, ahead, most Cyclicals, "natural resources/precious metals" (USU, ASA, BMG, FCX, FCX/A no, DROOY, PDG, BGO, CBJ, RT, AKS, etc.), Food-related (SVU, FFA, WH, IHK, BLM, CPB, K, FFA, etc.), Banks (opbo), Farm/Land/Fert., and Precious Metals, Retails/Apparel/Merchandise, Aero./Def., Leisure/Travel/Toys, Housing-related, Industry Groups....
and, Online Brokers/Financials (EGRP, CIT, NITE)
and, Commun. (and 'long-distance stocks' ? WCOM, WSTL, WCII, VOD, TSP, etc., as EVB's, etc.), and, Chem., Energy (TMG, TSO, HEC ?, etc.)

* The stocks on this next list, are also, still, Current, or, Potential, "EVB's" ("exhaustion V bottoms"), read that Booklet !):

We are Also "Watching" --- as potential EVB's, or "basing", or "double" bottoms", near recent lows ONLY:
*** as S.T., "EVB's": in no particular order, as a "watching" list: note, most have been on this list for a while, allowing you ample opportunity to have SEEN their charts, and bought them when/if suitable, yes ?

add, (in no particular order !): LGTO, CBE, DG, UB, CX ?, DQE, NSC, JWN, FBN, GRA, IMP, ARJ, BGG, CLE, GRT, PKS, VIXL, INTC, MAY, APN, EMA, DHC, ODP, BKS, DGTC, STSA, FFIV, WH, PB, MZ, DDR ?, HUG ?, BTC ?, SVI, NTOP, ADIC, LOJN, MCOM ?, CNXT, NETA, NXTV, LHSP, FMKT, FDRY, LBRT, PRGN, AFFX ?, (note, re-added previously given ones again, dig ?), to, G, CIT, CSX, CUM, N, LEA, PX, EMN, ROH, UIS, SKS, AKS, ATI, AIR, ORB, CRDS, DLTK, BTX ?, SLS, BAL, MSTR, PLB, AIB, DRTN ?, CTXS, BXS, AIB ?, NTG no ?, BDX, ALI. ?, IFC, TEC, CA, AGS, to, MLS, BGP, ENTU, ETYS nah, UVA ?, AN, OBJX, FSW, RBC, JS ?, FBN, PHC, CKP, BOW, JBM, ATX, MDG, CCL, CTO, MAT, DL, AEM, OMI, may well base/EVB/bottom ahead.... and/but, not any of these above, when/if they make new lows or break budding bases/patterns....don't "force" trades....and be sure to do your 'fundamentals' homework on the lesser-known ones....

'total return potential/yield-plus' section: GTA, ENN, TCC, USU, CWN, BNP, MLS, JDN....

and 'busted' stocks with more Insider Buying: CERG, INAI, HCM, PDLPY ?

7) other, still Extended/potentially Toppy, "Puttables", near recent Highs Only, for potential Price Drops, using, Only, L.T., in-the-money Puts Only, Always Diversified, w/stops if patterns abort to the upside, for potential drops towards their 200 DMA's, at least:
(NOTE: again, if they are already down appreciably from their highs, do NOT chase them down, wait for bounces):
(re-read my "Downside/Puts" booklet): Potential Puts list, by I.G.'s where practical, near their Highs, ONLY --- do NOT "chase down" much: note: this list supercedes all previous ones....these are the ONLY Puttables here, as all others have been Removed:

* add, ADRX, LLTC, IDPH ?, JNPR, FPC, DUK, HP, JNJ, NBL, OAT, PE, NE, CIN, GUC, ELN, HBC, KMI, HDI, PMI, OAT, PHA, SZA, ALXN, UNT, WAG, MKL, PNK, RTI, ADVS, BELM, APWR, BEAS, CHCS, GELX, IMPH, IMGN, NEWP, SKYW, VRTS, OSIP, (again, note, as above, re-added more previously given names), to, SEPR, CGP, RKY, DV, AVE, BXP, D, EMC, ENE, HSY, MRX, COGN, MXIM, GLW, DNA, DGX, AXP, JBL, MLNM, NMSS, APWR, CHKP, BLDP, IWOV, MVSN, EXTR, SANM, CBL, APH, ADI, CYN, INRS, GE, PLXS, ARBA, AUDC, to,

(repeats) BRCM, NVLS, SSTI, MTG, BSC, LSCC, XLNX, PSEM, ANEN, DFXI, ELF, IONA, RSYS, from recent past NL's....some Semis declibned to their initial downside levels, already....

**** the Best Puttable Industry Groups: in no particular order, and, understanding we have already HAD some nice drops: Extended and at least Semi-parabolic: Brokers, REIT's, Energy and Services (but most are already down, yes ?), Enterprise/software, Electronics, Health/Medical/Drug/Biotech, Food/Bev., Fuel Cell, Computer/Internet/Software/Services, all Semiconductor-related, High-PE Techs, almost all Financial-related I.G.'s, and most all Tele.-Commun., all near their recent Highs ONLY, w/close stops above their patterns highs....this ends our putside-downside follow-ups/ideas section....

VIEW THE CHARTS....SEE where the 200 DMA's are....LEARN THE PATTERNS/STAGES