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, back in mid-April 2000, with issue # 207+, a while ago....(so/but this NL is Not really being actually published formally, publically, any more, and has not been, for quite a while now ....I just wanted a place to keep track of what I would have said and done and felt, since I was forced undeservedly to stop my NL, months ago....this is ONLY for my own edification), dated: 9:30 am, PST, Tuesday, Nov. 21, 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:

That decent Insider expert guy, Craig Columbus, on CNBC, Mon. 9:30 am, said, now, Insider 'selling' is now way down from Aug./Sep. levels, meaning, he says, now approaching lower-risk levels in many stocks, contrary-sentiment-wise, dig ? He said recent levels are as low, and potentially bullish, since Dec. 98....hmmm....he mentioned our AAPL, and MRBA, and DCLK, with more than usual insider buyers recently....He also mentioned more than usual Insider Selling among extended Drug/Health-type stocks....so we agree all-around....

A technical guy on CNBC, Mon. 12:25, showed the NASDAQ-only put/call ratio also approaching overly pessimistic levels, but said we are not yet ready for a bottom, because, as I have been teaching for decades, indicators can remain real oversold for months, "if" we are in a 'bear market' (but WE never 'label'), right ? still, note nice bounces-without-having-broken-below-recent-lows, we are again getting in several of my Techs in section (4), yes ? again, showing the value of buying only low, in our patterns....

Meanwhile, CNBC said that Mon., the 'Taiwan stock Index' made a new low (having fallen from over 10,000 to around 5,000 since summer, hah), exactly as I was the first/only to suggest, when I said near its recent recovery high, herein, that "Asia is NOT going to recover anywhere nearly as strongly as 'the 95 % of analysts' are predicting/hoping/expecting, which, on hindsight down the road, analyusts who fail to predict the coming Recession will say was one of the reasons for it", when I was among the very few/first to begin suggesting Puts on many parabolic Techs back then, yes ? I also notice more and more local homes out here going up for sale -- either trying against hope for a high price, unrealistically, as usual in this stage - or, by people who have seen many of their previously-just-lucky paper gains in Tech. stocks disappear due to their ignorance, and are scrambling because they have been unable to control their over-spending ways, ay ? we shall see....

While I 'hear' that put-call ratios have been high, NO one I know of, has ANY new puts recently....what does that tell you, sentiment-and-education-wise ? as I teach, one must ALWAYS have at least SOME puts somewhere, if able/suitable, in a few extended I.G.'s, in I.G. rotation....but you already know that....

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

a) Important Industry Group (Rotation) notes:
1) the newest addition to my puttables list in section (7) are the Finance/Bank/Mortgage stocks - surprised ? most everyone else loves them here, yes ? ....2) and, thanks, yes, I was again, the first/only to give out the Biotech Index as a Put at recent highs ....3) also, with everyone else now loving the Hospital/HMO stocks, way higher than when I gave them to you as buys at lows herein, look for them to top as well, dig ? see our tops among Health-relateds recently ....4) with the totally-unpredicted-by-me new high in 'Nat. Gas futures', note their 'stocks' are not making new highs....

b) more, misleading, sensationalized, Late, and/or improper/incorrect comments from the Financial Media, Reporters, etc.:
1) Maria Bartiromo, Fri., 11:11 am, asked two "B2B" stock guys who have held those stocks all the way down, wrong (don't get me started), "if things are so rosy for these companies, how come their stocks are down so much so fast ?" (ditto on M.B.), like, ARBA, CMRC, ITWO, all given by me near tops as puttables herein, yes ? as usual, this is what they always say in this "PSYCLE" stage, yes ? the pattern/sequence rarely changes.... 2) and leave it to L.A. Times, J. Flanigan, 11/19 headline, finally puffing Aero./Def. stocks super-bullishly -- as usual, late, and much higher than when I suggested them herein at lows....so what else is new....the pattern rarely changes....

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) for some unknown reason (don't get me started) the L.A.T. has been puffing a supposed expert on the psychology of trading, his book, etc., when they could have been letting ME help millions of readers the past few years ....anyway, they should have printed any such education, back near the top in Internet/Tech./Comp., and other I.G., stocks, yes ? so, as usual, a bit too late to 'begin' to suggest being careful, now, down here, ay ? the pattern rarely changes....meanwhile, he said NOTHING new, beyond obvious basics we all know, and, had NO specific advice or concepts to help trading/choosing/timing.... as I do....they also did not show HIS actual, L.T., T.R., so, 'next'.... 2) and, I reiterate, I laugh, when I view AOL and TWX stock, both down nicely as only I was first to predict herein from their highs, with their supposed 'bulletproof take over the world' merger....hah, to all those overrated analysts....

d) more, likely late, incorrect, and/or misleading, comments, from Brokerage firms, NL writers, Analysts, economists, Money Managers, etc.:
1) Mon., 11:10, on CNBC, MSDW finally lowered opinions on networking stocks, like, JNPR, RBAK, CSCO, EXTR....and S.G. Cowan reiterated strong buys on similar stocks - which they held all the way down in recent months without stops, etc. So, for the umpteenth time: of what good are most B-firms research dept.'s ?

e) more general items proving why one should probably ignore 95 % of everything else out there:
1) as I have taught for years, recent article in Investment Advisor Mag. 11/00 issue, on IPO's, rehashing how so many new issues FALL big-time after initial-pops, did echo my sentiments about how much $$$ companies leave on the table, dig ? They 'could' and maybe 'should' have raised a lot more $$$, which Iblame partly on the greedy firms charging them for their 'services', while, often, getting tons of free stock, then selling after rises, getting fees, while they NEVER put out 'sale' recommendations, etc. What do YOU think about this issue (pun intended) ?

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:

bal. puts VRTX (99- to 55+) for VQ 175% Gain....all puts PRHC (40+ to 28+) for VQ 125% G....bal. puts BRCD (260 to 190-) for VQ 125% G....bal. stk.mon.mgn. AVA (18+ to 23-) for 55% G....1/2 pos. puts KRB (38 to 33+) for VVQ 66% G....all puts CMVT (115- to 93+) for VQ 80% G....

and/but, longs, GLGC, DCN, LU, PLA, AII. ?, OCN ?, APN ?, new pos. NITE, and, puts, XOM, TE, UNH no, THC ?, JNJ ?, EPG ?, DV ?, for very quick, very small losses, normally of small overall consequence to a properly diversified L.T. portfolio....

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:

1/2 pos. AMAT @ 40, ENTU @ 20+, 1/2 pos. NCI. @ 3 5/8, 1/2 pos. NTOP @ 16+ ?, 1/2 pos. PKS @ 14+, 1/2 pos. PRGN @ 15+, 1/2 pos. TERN @ 17+, 1/2 pos. UAL @ 36+, 1/3 pos. WCOM @ 15 ?

"Repeats": (some of these are/were '1/2 size positions): AAPL @ 18+, AII. no, AMC @ 8, APN ?, ARJ @ 18-, BGO @ 0.405, BMG @ 1.34, CX @ 20, DDR @ 12, DPH @ 14 1/8, EGLS @ 13 3/4, ENN @ 6-, F. @ 24-, FGH @ 5.44, FUN @ 18+, FRT @ 19, GENE @ 13+, GY @ 7 5/8, HA @ 1 7/8, ICIX @ 15, IFMX @ 3++, IHK @ 1, KDE @ 12, MDS @ 14-, NOVL @ 7++, OCN no ?, ODP @ 6 5/8, OHI. @ 5.06, OPI. @ 6-, PAP @ 1.06, PDG @ 8-, SKS @ 9 1/8, TSP @ 13, VIXL ?...."buy (only) low", right ?
.
** Important: took, DIGX, GTS, DCX, GM, X, SFN, INAP, BRKT, CMTN, 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. APC @ , 1/2 pos. CERN @ 60-, 1/2 pos. CHCS @ 40-, 1/2 pos. CIMA @ 69, 1/2 pos. CMX @ 12+, EXBD @ 46, 1/2 pos. FRE @ 60+, FRX ny, GLH @ 24+, 1/2 pos. MRK @ 91+, 1/2 pos. PHA @ 59++

"Repeats": (some are/were '1/2 pos.') DME @ 24+, DUK @ 87++, DV no ?, EXC @ 62, FNM @ 79+, HBC @ 75+, HCA @ 42, IPL @ 23+, MRK @ 91++, SEI. @ 16+, TDW @ 47++, UNH @ 116,

and/but, took, 'anything already way down', and, DST, and the 'just missed' ones just below here, 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", AIR, YUM, CBE, A, PER, WEC, MXR, BSX, ATI, as Longs/Buys near very recent lows, and, AXP, AGC, EMLX, ROOM, PLMD, RNBO, MDT, CRUS, FRX, ORI, 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) :
AMAT 42 5/8 up 3, ENTU 23.12 up 2.56, NCI. 3.56, 3.93, TERN 18.70 up 1.70, FGH 5.81 up 0.37, SCR/A 22.93, LGTO 11 1/4, CC 13 7/8, DLM 7 1/8, higher, since last time here....and, RX 27, CPB 33+, UNP 50+, SRE 23, WMI. 26+, CBE 41, TRN 25+, WIN 23, SRR 5.81, even higher still....

and/but, then, seeing Many pullbacks, and more bounces after pullbacks:
CVD 7 5/8, 8 7/8, AAPL 19 1/2 up 1 1/4, PDG 7.68, 8.43, SKS 9, 9 5/8, ARJ 19 1/8 up 1 1/8, MOT 22, 23.31, AMAT 40, 42, DLX 23.12 up 1.87, VOD 34+, FGH 5.43, ARG, OHI, ALI, GLT, MU 31.81, 36.50, 33.81, DPH, HCM, NVLS 30.62, 33.56, 30.81, NOVL, KOPN 13.31, FON, ENTU 21, ICIX 15, MDS, F. 24.68 up 0.87, TERN 17+, DLTK, APN, PKS, REV, SVRN, SOL, PMTC, ATYT, HA 1 7/8, PLL, LGTO 10.56, GIGA 6 3/4, ENN, CC 12.56, CX 21.31 up 1.37....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 ?) AM, AII. 7 7/8, STEI., KDE, IHK, VOD, CHINA, MRCH 2-, CMH, NOVL, FMT 4.62, 4.93, 4.38, TSP 13, AAI, RAD, BMG, OCN, PMTC, MOT, FON, BNP, PLL, ORB, VIXL 5.37, GENE 13 1/8, MSTR 18.43, IFMX 3 5/8, APN....

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:
more nice drops for you: BRCD -35 (S), VRTX -8 (S), CIMA -6, CMVT -5 (S), DUK -3 3/8, FRE -3 3/8, CHCS -3, EXBD -3, CERN -2 1/2, PRHC -2 (S), KRB -2 1/2, DA -1 1/2, CMX -1, DME, GR, GLH, CBL, GUC, lower, since last NL here....and, CMRC 46, GRP 17, FCEL 54, NTAP 65, NEWP 61, QLTI. 35, SLR 34, RATL 36, NMSS 25, GSPN 50, NT 32, the BTK index 554, down even further still.... while, JNPR, JNIC, VRTX, ELNT, ADRX, BRCD, CMVT, fell to/approached their 200 DMA....

* 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"):

: SANM, UNH -2, +2, EPG, HBC -1, NBL, IPL, SEI, AIG, CIMA +2, FNM +1, -3, EXC +1, -1, TDW, HCA -2, JNJ, XOM +1, DA +1, DV, MRK +2, and the DJ. Util. Avg. ...this ends our 'Downside' follow-ups for this NL....

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 ? (FRT, HCN, ENN, CWN, AMC, DDR, MLS, GRT, RAS, TCC, JDN, ARJ, TCO, FUN, CRO eh, HRP, etc.)
Railroad/Auto/Trans. (F, DPH, AN, GY, etc.)
and, ahead, most Cyclicals, "natural resources/precious metals" (BMG, SWC, FGH, BGO, N, AKS, etc.)
Farm/Land/Fert., Aero./Def., Leisure/Travel/Toys (CCL, RCL, HAS), Housing-related, Industry Groups....
and, Online Brokers/Financials (XRX, SVRN, OCN ?, IFS, FBR)
and, Commun. (and 'long-distance stocks' ? MWL, CEL, PHI, DT, TSP, IIT, etc., as EVB's, etc.), and, Chem. (EMN, CCC, ROH, DD), also, Retail (KM, CNS, ODP),
Health-relateds (ALU, SOL, SRV, GENE, EYE, ALI, REV, BSX)
Food-relateds, (IHK, BLM, DLM, DL, etc.)
and, of course, some of the 'busted Techs', as EVB's, just below....

* 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 ?

added, (in no particular order !): (many depr. stocks and Techs getting bounces already, so we do not 'pay up') added, AKAM, BANR, INCY ?, CHRS, INSP, NWSB, SRTI, SCMR, SIL, MXR, VRA, ITT, LOR, NSM, NEM, ITXC, TERN, NEM, GT, PKS, LDG, SEM, NTOP, LRCX, ANAD, VRGE, ARIA, CELL, ATHM, SCR/A, FWC, FTBK, WCG, UAL, DD, ATI. ?, CHB, HRP, IN, PER, CRO, PBY, to, INAP, KOPN, EGLS, COHU, BMG, TSP, AIR, FBN, LBRT, KLAC eh, LZB, BSX, DT, CMOS, GEB, to, CDO, FCS, APN, SRR, AEN, OPI, IFMX, DLX, CSDS, NCI, NWK, CMTN, IIT, AAPL, HLIT, STSA, MU, LOJN, CVD, DLTK, OBJX, PRGN, MSTR, PHC, 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 all, especially the lesser-known ones....

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

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, AMRI, CERN, CIMA, EXBD, INFA ?, NTRS, APC, APH, FNM, FRE, CMX, FRX, GIS, MRK, ORI, STT, MTB, to, CAH, XOM, FNM, SEI, RKH, NBR, RDA ?, FVB, NEU, to, CPL, MNY, PPL, RJR, SPC, TDW, DA, CTIC, DME, DUK, HP, EXC, HCA, to,
(repeats) DFXI, ELF, IPL ?, ESRX, COF, MANH, FPC, JNJ, GUC, EPG, HBC, DDIC, PHA, MKL, CHCS, IMPH, IMGN, OSIP, CGP, MRX, CHKP, BLDP, PLXS, from recent past NL's....again, note smaller list....

**** the Best Puttable Industry Groups: in no particular order, and, understanding we have already HAD some nice drops: Extended and at least Semi-parabolic: Utilities, Insur., REIT's, Energy and Services (but most are already down, yes ?), Enterprise/software, Health/Medical/Drug/Biotech, Fuel Cell, Electronics, Computer/Internet/Software/Services, all 'not-down-yet Semiconductor-related, High-PE Techs, all near their recent Highs ONLY, w/close stops above their patterns highs....this ends putside-downside follow-ups/ideas section....

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