Jim Goodman's "The Right Side of the PSYCLE sm"
Stocks/Industry Groups Timing Newsletter, and Education service
issue # 60, dated: 10:00 am, P.S.T., Thursday, Dec. 31, 1998

**** Again, a happy, prosperous, healthy, Holiday Season, and best wishes to you for next year....Newest Market Comments: My thanks to all the subscribers who are pointing out all the many nice bounces we are getting among our depresseds....and we are seeing continuing final tax-selling among other depresseds, and, I assume, some profit-taking coming early in 1999, among our extended stocks....With slight "sucker breaks" in both directions, normal for this time of year, causing new, potential, fakeout, lows/highs, and I suggested that one step back, and VIEW the charts, expecting more tax-selling bounces among our depresseds, while still buying Puts on our extendeds....Are you at least already in, each, a depressed Oil Service, Y2K, Health, Prec./Metal, Tech., Farm, etc., stock long (as a "portfolio" of sorts) ? And, perhaps, at least a couple of Puts ?

Remember, often, these bounces occur "in a vacuum", as real quick, initial pops....As I teach, the mistakes are letting any recent past losses prevent one (mentally) from taking advantage in such stocks, again recently/now, and/or one's failure to learn that this time of year, the lowest-priced stocks are often the best, highest reward-to-risk ratio ideas, and NOT, the "already way up ones".... Also, for the umpteenth time, a stock can bounce, up and down, and become buys or puts multiple times, over days or weeks....as long as its pattern remains intact....Hence the helpful "repeats" in section (3) each time....

New: I just sent in my "early 1999 prediction form" to Mansfield, Jersey City, N.J. (201) 795- 0629....if you call them, be absolutely certain, to tell them I referred you specifically ! Their charts, which I do order/get maybe 3 times a year, will give you 2-1/2 year charts, with OBV, and 200 DMA, and is worth the $ 48. for three of their chartbooks, once, anyway....If you do order it (I get no kickbacks), please also let ME know, e-mail....Some people need to see a plethora of similar-looking stocks charts to finally burn the pattern into their brain, which is fine.

Important: in addition to our depresseds and EVB's, I am also seeing some "secondary pullback lows" occuring, after initial bounces in many of our depressed stocks....this means the "tax-selling bounces" may already be starting for those issues, already....this is also S.T. stage 2 behavior, technically....see Section (4) below....

While we are definitely catching many depressed bouncers for you herein, I am still seeing too many breaks of budding patterns, Longs and Puts....But I still see quite satisfactory patterns among our favored I.G.'s, sec. (6) and (7), and AM suggesting action, vs. inaction, for our normal above-avg. performance from here....being among the few honest guys in this business, means, I gotta cut losses when patterns break....last, remember, some stocks will "EVB/tax-sell bottom" in Dec., and others will have their bottoms early Jan. so, Step back, view the charts, gain perspective and knowledge and confidence to ACT....

If you are a "NEWER" Subscriber, please take the time to read ALL of the "wordy" parts of the NL, once or twice, anyway... If you are an "OLDER" Subscriber, of course, feel free to SKIP, to those NL sections you wish to glean your info. from. (Save all my CUMULATIVE letters, for future reference/educational learning/help)

Notice, how, except for the fact that so many of our long-side stocks are rising, sec. 4), I have shortened this section, and the NL, even further....please refer back to the last NL to "see" what I have removed....by now, I am assuming you know my/the concept, rules, "abbreviations", terms, etc. You should know the 3 (three) types of stocks herein, and, how to read, and employ, the stocks in sections 3, 4, 5, 6, and 7, to your best benefit....

*** If you are pressed for time, read section (2) to develop a "feel" for our Sentiment patterns--- and Section (3) always, while viewing the CHARTS....So much valuable info. in one place. Also, Obviously, when "more, or fewer" longs, or puts, are given herein, that also tells us more about "the internals, and likely future direction of the market", yes ? And, please, neither expect ME to stay "super hot" nor "super cold" forever.

I assume you have read the "Significant Disclaimers" paragraph, under my main webpage logo...I cannot infer my future performance will always match my excellent , real, past track records, as each person will, obviously, have differing experiences with my output, and/or do/not do various things, properly/improperly, etc. Thanks for understanding. It is also assumed that you actually "VIEW" 1-and-2-year past Charts of stocks, with their 200 DMA's, BEFORE you "do" anything for real, and that you are aware of their recent highs/lows, for stops price levels, and past/future resistance/support. I am also assuming you have learned to eliminate the potentially hindering emotional "stuff" from the decision-making/ stock-choosing side of your brain....

1) "PSYCLE SENSE sm":
New Commentary: Although you know we NEVER try to "predict Indexes/averages/the market", here are my most Current "Market" Comments:

**** As predicted, still more stocks have been hitting resistance levels, double-tops, extended EVT areas, etc. Also, too many depresseds are pulling back, and/or must strengthen anew....Yet, I am finding more depressed future-buyables, among "land-based" Industry Groups....The "PSYCLE sm" message, is that I recall similar cross-currents, this time of year, the last 3 Decembers.... We did real well after each of those periods. Note how many NASDAQ stocks are forming left-sides-of-potential-upside-down-hook-saucers....Gotta be more tops coming soon, and NOT the beginning of further huge rises, in such stocks !

Please appreciate, how much time/effort I put in, to put ALL applicable, staged, stocks, longs and puts, which fit learnable, and actionable, "PSYCLE sm" patterns, into each NL.... Sometimes fewer, sometimes more....Whatever I find that best fits "PSYCLE sm" stages, which YOU can learn/take advantage of, for YOUR trading/educational benefit, I will put into each NL....again, the "Most Actionables, Now/Here", are in Section (3). And note, the "learning/feeling/sentiment" items, are in section (2) and (8). Longer lists and I.G.'s, are in section (6) and (7)....and all follow-ups, are in sections (4) and (5).

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

a) Important Industry Group (Rotation) Notes: 1) recall my recent bullishnes on "silver" itself....and, since, we see Silver popping, and some of our gold/silver stocks.... 2) note how all of Wall St. and the media is trying to snuff out any Oil Service bullishnes, verbally and in print, but, like mercury, when they press their figure on them, they just squirt out, and survive....yet, note bounces in Oil Services, Thu....off and running ? If so, we were, again, among the very few/first/only to catch the lows.... 3) hope you got a "Y2K" stock from my list, the ones that had not yet popped, are popping now....I was, again, the first/only to give these near lows.... 4) note drops beginning in some of our Internets, and obviously, they are also going to have some profit-taking at least by early 1999, yes ? I added more recent ones, because those had NOT broken out anew, and started to crack....and, in case you missed it, AOL's market value now tops Disney's....and, INKT sets 2/1 split, which also tends to occur near tops, yes ? and I see NSOL did fall to $ 111., Wed....5) looks like I was wrong with "bells", Q,S,L in puts....6) recall my recent S.T. top-signal in the Heng Seng Index herein....it did drop S.T., from a decent rolling top, 15,000 or so, but must still break the 13,000 area, which is not as certain....7) am I, again, also the first/only to have given out the Farm-and- Equip.-related stocks near their lows ? See them bouncing already....we did so well with them last bottom also, check them out.... 8) interesting, am trying to find more low-priced Gold stocks, but some just not forming perfect bases yet.

b) 1) cnbc, Wed., noon, Alan Chernov, must have read my NL, as he finally chronicled the "fall off parabolic rises" among Biotechs, in 1983/84 or so, showing charts of "fallen favorites" after....I rightly hit on him often, but I do want to commend him on this item....kudos....2) cnbc, reporter gal, again reports misleading/incorrect item of import: Thu., 12/31, 9:20 am, she pointed out how/that the DJIA moved over 100 points in a day, 65 times in 1998, saying, "this shows the unusualy high volatility...." Well, that's still just NOT true.... Because, on a "percentage" basis, in reality, the "DJIA" is NO more "volatile" than "normal", going back decades....many actual studies have proven that, except for a few industry groups each year, "the market" is NO more "volatile" than usual, in fact, LESS volatile in many ways.....One may not want to believe it, and the Media wants to "create" a story, as usual, but a move of 100 or so points on a 9,000 item, every 4th or 5th day, is NOT "high volatility", historically....once again, the Media is wrong....

c) more incorrect/improper/misleading Media comments from "fundamentalists/ companies/mags", etc., vs. illogical/contrary stock prices moves, etc.: 1) Forbes mag. just named "Pfizer" as their "stock of the year", and, S & P ranked our Harnishfeger (HPH) as their "worst/lowest" stock ahead....So let's see if HPH does not indeed outperform PFE, in 1999....get it ? ....2) in a related story to PSUN, from last time here, O.C. register, 12/26, article, "Mossimo shares return to $ 10. after 14 months": MGX, which all the "experts" hated, last year, saying ethey were likely to go "ch. 11", around $ 2., this past Fall (a pun, get it ?), recently rose way up to $ 12., as I teach you so many depresseds do....but MGX never formed a base, though, so I never actually saw its chart at the bottom.... Anyway, the point, obviously, is to look to buy the one they hate, and Put the one they love, more often than not....Of course, now that it is up, and the people who wouldn't touch MGX at $ 2., are now "beginning to buy it again, because things may have 'improved'", it will probably correct, dig ? Stage 2 top ahead, S.T., right ?

3) cnbc, reporter, Wed., 30th, 9 am, pst: "Investors are beginning to return to Asian and related- country stocks, despite the turmoil....but many such stocks are already up 50- 100%....is it too late ? or are there still opportunities ?" Get it ? From a "PSYCLE sm" p.o.v., again, we see the depressed stocks of "negative fundamentals/scary countries, rising, BEFORE the Media even hints at improvement, publically....and, we hear the word "beginning", late, AFTER the stage 2 rise/move has occured....

d) more late, misleading, Brokerage/NL writer/Analyst comments: 1) cnbc, 12:40 pm, Tues. 29th, John Bollinger does not think the momentum among Internet stocks has peaked....2) 12/30, Pru-Bache, and Bob Pisani- cnbc, have been real, real bullish, about AMD, (a stock that I gave you herein near its last two depressed bases, in the teens, then out in the high 20's), yet, even as they try to "tout" the stock higher, it still remains below its last two highs....they also failed to catch its lows, dig ? As you have learned, the "good" expectations/comments, ONLY coem out, AFTER it has ALREADY risen a bunch....3) an analyst, cnbc, Wed., 12/30, 11:40 am, pst, had caller ask, "what's wrong with Disney ? seeing as this is their best season for sales, shouldn't their stock have been rising all along ?" 'nuff said....the comments never change, do they ? ....4) cnbc highlighted BOBJY, a stock I gave you herein near its lows, a while ago....a big B-firm just recommended beginning to buy it....but now ? up here ? late, huh....they probably hated it when WE were buying it.... 5) M, S, Dean W., 12/29, raised its target on Barnes Noble, from 35, to 45 ---with the stock already up at 44+ that day....Then they reiterated their "outperform" rating on BKS, from here....which is weird/ interesting, since, if they therefore do NOT expect any further upside in BKS, and yet they say that such a non-rising-any-more stock will "outperform" thousands of other stocks, can we then assume they think a break-even trade will be "outperformance", from here ? Think about that....they were bullish, but what they said is bearish, dig ?

6) cnbc, Wed., 12/30, 12:40 pm, a guy at Ned Davis Research confirmed they are calling the rise from early Sept., a "new bull market" now, with much higher levels in store, even from here....I have valued some of their output, over the years, but am puzzled, as you know how we dispise "overall labels"....I wish they had segmented their opinion by I.G., but he did not in that interview....why not ? ....7) evidently, S & P itself ranked Harnishfeger (great name, huh) their 'worst stock in the S & P" forward....well, guess what ? As you know, "HPH" has been on MY "PSycle sm" potential Buy list, so, we'll gladly go opposite the "fundamentalists only" S & P gang, and buy HPH near 8+ recent low, see the base ?(thanks to subs. J.A.)

As you have seen the last several months, how much better one does, just "doing" the best individual stocks, technically/sentiment-wise, 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 "seek, and process" tons of other, useless info., anyway, and we also help remove potential emotional problems 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....note: (Q = quick; i.e, was less than 2-3 months holding period ....VQ = very quick; i.e., was less than 3-4 weeks holding period)....and "VVQ" means held even shorter-term than that....
Also re-read "the Guide" for how I derive the estimated % percentage Gains I show herein, on assumed Hypothetically closed-out trades (always assumed to have been in Options, where applicable/ suitable, and on margin where available/suitable/logical, and on a cash basis where not, as per "PSYCLE sm" tenets)....and "bal." in section (3), means, "the balance" of assumed long positions, assuming a "1/2 and 1/2" sale....and, "css" means "covered previous short sale", where no puts options existed....

* Previously assumed Long positions most recently SOLD (showing the actual price changes, in parentheses, from the price where/when originally recommended herein, to the price where very rently Hypothetically "sold"):
1/2 pos. calls RMDY (10+ to 15+) for Q 175% Gain....stock AAM (1 5/8 to 4++) for VQ 150% Gain....1/2 pos. ELCO (1.44 to 2.81) for VQ 80% Gain.... 1/3 pos. puts LCOS (65- to 53-) for VVQ 80% G....
and longs, MAVK, JAMS, TDP, AEC, CNU, CHK, CQB, LTC, ICA, UC, and puts, IMAXF, PRGN, BBOX, XLNX, ALTR, PHCC, MSBC, CBXC, CSGS, USTC, BBBY, PZZA, CXBC, BLS, BEL, HMK, SWC, WHC, ASO, CAH, CLX, BBK, FRX, EAT, CBC, HTN, FDO, BBC, EQU, WAT, GIS, for VQ, very small losses....there have been too many Q, S, losses in the recent past, but, as I said, this is of small consequence in the bigger picture overall, especially this time of year....and I am still giving out many other, large % Gains....note, some Puts QSL's were the very next day....Remember, occasional 10-20 % drawdowns are NORMAL and accepted, L.T., without losing agressiveness or positive thought or action in the "next" ideas....

NOTE: while all the $ under 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 would have been multiplied, higher, right ? We just 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. just buying those stocks on Margin, with close stops, where suitable, instead, with less risk, and similar reward potential--- stocks themselves have no "premium", right ? and, of course, if one just bought longs for cash, and not on margin, the % Gains would be relatively smaller, though still excellent, for so short a time period, yes ?

* Newly/Additionally BOUGHT/Buyables, right 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): (note: If you are New to this NL, here are the most recent "Buyables/Puttables", long/short) (note: a " - " after a price, means "just under" that price....and, a " + " means "just over" that price....i.e., 16+ means, 16 to 16 3/8, and, 56-, means, 55 5/8 to 56, etc.)....again, the idea is to "just get real close" to my listed prices here, when buying long/selling/putting issues given....try NOT to worry about every 1/8 or 1/16....


**** Newly BOUGHT Long-side, for potential Rises: (note, some more/new/revisited stocks here, and most are still pretty low-priceds, read thoroughly, some new "repeats" and "revisited" "new" ones again, here): each alphabetically by symbol:
(new ones) AG @ 6++, BED @ 16.06, BMG @ 4, CDE @ 4 1/8, FLM @ 9 13/16, FTL @ 12++, HPH @ 8++, ILX @ 2.06, ISSI. @ 2 15/16, MAH @ 10++, MATK @ 7+, MCH @ 18+, NETM @ 1 11/16, NWAC @ 23+, PMK @ 23+, RTC @ 4 1/2, 1/2 pos. SEW @ 3 5/8, SOL @ 15+, SWW @ 2 1/4, TFN @ 4, TOY @ 16+, UMR @ 11/16,

(repeats) AR @ 15, ATV @ 1 5/16, ATW @ 16+, BAANF @ 10+, BCP @ 5+, BDS @ 2 3/4, BLM @ 2.06, CAU @ 0.31, CCH @ 3/16, CPU @ 12+, CS @ 8, CTI. @ 6 1/2, CXI. @ 5/16, CYM @ 9 1/8, DBRSY @ 12-, DO @ 22-, ELCO @ 1 1/2, ELY @ 9 7/8, FP @ 2 1/4, 1/2 pos. GCO @ 4 7/8, GLDR @ 1, GLM @ 8 5/8, GLT @ 11 11/16, GSR @ 1, HBI. @ 5.06, HCM @ 4.06, HMY @ 6.06, IAIC @ 1 1/4, IPIC @ 3-, JOB @ 6-, KRY @ 0.44, LFB @ 9++, MHR @ 2 7/8, MIFGY @ 8+, MS @ 1.06, MSN @ 0.41, MWY @ 10, NBR @ 12+, NBTY @ 6-, NE @ 12, NGX @ 7/16, NOV @ 2 3/8, NR @ 5 13/16, OO. @ 9-, PAH @ 5 5/8, PAR @ 7+, PCMS @ 2 3/4, PDS @ 10+, PLC @ 3 5/8, PRD @ 18-, RDC @ 9+, SIF @ 12-, SRR @ 8-, SSC @ 11/16, TEN @ 31+, TLZ @ 4 5/16, TOX @ 3/16, TRMB @ 7 1/8, TRP @ 14+, TXB @ 3 3/8, VC @ 3 13/16, VGZ @ 3/16, VRC @ 7-, VTA @ 5 1/8, VTO @ 4 5/16, VTS @ 12 1/8, WKGP @ 1 13/16, WTT @ 1 9/16....most are still EVB's...."buy low", right ? Note, we are revisiting some "previously given/traded" issues, and a few whipsaws, back in....and, more importantly, that, now, AFTER recent rises, most "new buys" are real cheapies, and/or "laggards" with less "sexiness", dig ? What does THAT tell you ? also see the "just missed" issues, below....

also, note, some new/repeat long buys, are in stage 2, having pulled back after previous upside breakouts from earlier bases, dig ? still plenty to choose from, to build a portfolio, long-side....

NOTE: as I teach in the "green Guide" Booklet, you should already understand, that, very often, there is NOT "just one day" when my ideas become "long buys" or "long puts"....some stocks may hit around originally suggested prices, 2, 3, 4 times, etc., sometimes over a period of weeks, as they may form EVB's, double-bottoms and/or bases at times, right ? When/if they rise/ fall in between those times, I will follow-up those moves, in section (4) and (5) anyway....this is a Positive, a Benefit, for you....remember, I have subscribers who ARE already in stocks which have already moved before YOU noticed them herein, dig ? And there ARE many subscribers who ARE viewing MANY of the charts of the stocks herein, first....and there ARE many subscribers who DO want "longer, more thorough, teaching" NL's/items from me....

*** remember, all my given stocks REMAIN buyable/puttable, every time they hit originally suggested prices, unless/until they break their patterns....even if weeks pass by !!! This is covered in "the Guide" and herein, endless times.... "just get close", and do everything else properly: the stops, VIEWING the charts BEFORE acting, NOT forcing trades, and, of course, LEARNING the stages/patterns of price, ind. group, and sentiment/media patterns.

** Important: took, BLUD, EAR, GND, HIV, --- Off pot. Long buys list, before they might have been Hypothetically "bt." (as most all made quick, new lows....and/or, they need more work, technically....also recall the last few lists of stocks removed before "bt." here). Note, I try to give "something for every type of investing/trading desire/account/objective", including some real cheapies, some $ 5-10. stocks,some over $ 20. stocks, and some "names" blue chips--- either, for straight Cash, and/or on Margin, and/or L.T., in-the-money Options, etc., so that all my valued subscribers have Choices, and for proper Diversification --- all still having similar, exploitable patterns, in each NL.

**** Newly BOUGHT, long "PUTS", for potential Drops: alphabetical by symbol: (note, more new ones) ARMHY @ 63, BOBE @ 26+, BVSN @ 36+, BYND @ 28-, CMVT @ 70-, INHL @ 33, LLY @ 91, MXIM @ 44-, UTX @ 111-, VRTY @ 28,
(and more repeats) ADBE @ 47+, CMVT @ 71-, DLX @ 37-, ELNK @ 70+, EMC @ 85+, ENE @ 58+, FAM @ 44-, FLT @ 44+, GM @ 74-, GPSI. @ 49+, GPU @ 45-, GTSG @ 57, HAE @ 23-, HIG @ 56+, HLYW @ 29+, IDXX @ 28, INKT @ 142, LCOS @ 64, MMC @ 59+, OMC @ 58, PE @ 41++, PNU @ 57-, RMBS @ 100-, SEIC @ 100, SGP @ 56+, SYY @ 28+, TI. @ 87, UST @ 35-....and/but, remember, I/we have NO "market scenario", ever, as you know....and, note, there have been too many minor breakouts, so I had to take real small, quick Puts losses, and NOT fight the tape, in those stocks....But that does not mean I am not finding more/new ones, in our Puttable Ind. groups, still showing the "EVT" or umbrella or double-top patterns.

and/but, Took, SANM, CCRD, UNPH, ALSI., CHIR, RGIS, BMY, CTX, WLP, AYE, Off pot. Puts list, before "put", as they aborted their patterns immediately (also see recent past issues taken off, here). IMPORTANT: sometimes, in the few hours after I send this NL to the web site, a stock might break its S.T. umbrella top, or its depressed EVB/base pattern....So I am assuming, you actually View their recent charts, BEFORE you consider buying any Longs or Puts, and you will see/know that the pattern is still O.K., and therefore buy/not buy them....this takes just seconds each to check/do, and will keep you from buying Puts/Calls on issues which abort budding patterns quickly after publication of my NL's.

....and/but, among stocks recently given you herein, in sections (6) and (7) below, we "just Missed", DEMP, MANU, DURA, CEXP, BTGC, SSCC, FHCC, SYBS, CBG, PCP, PRT, MSX, FHS, UWW, TKR, BJS, NIL, SIR, PIN, BD, BA, OH, as Longs near very recent lows, and, EBAY, DCLK, BCST, VRSN, TEF, CXR, AN, as Puts, near recent highs....as one of the few honest guys in this biz, I will always tell you here, also when we "miss" actually catching suggested ideas, so you can "view/see" and LEARN their charts/patterns, for your educational benefit. By viewing such charts, also tells us, whether the market itself is providing more bottoms/tops, at that time, right ? Another reason why it is important to consider ALL my output, each NL....Again, the idea is to learn the "Patterns" of previously "given/done" ideas, for YOUR future benefit.


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, 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, and still remaining long in most of them, unless otherwise noted):

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

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

still giving you plenty of nice risers (note, these have always been listed, in order, from the biggest % moves, to the smallest important most recent % price moves): read this list carefully, hot again: PCMS 4 1/4 up 1 5/8, ACLY 4 3/4 up 1/2, IAIC 1 1/2 up 3/8, TKOCF 2 3/4 up 7/8, ELCO 3 1/4 up 1 1/4 (sos), FP 3- up 7/8, AAM 5 up 1 5/8 (S), MGN 3 1/4 up 7/8, NOV 3.06 up 11/16, IPIC 3 5/8 up 3/4, RRC 3 5/8 up 3/4, JBAK 5 7/8 up 1 7/8, PHYC 7 1/8 up 1 3/8, VC 4 1/2 up 3/4, BCP 6 1/4 up 1 1/8, CCC 7 1/2 up 1 1/2, CTI. 8 up 1 5/8, MATK 8 3/8 up 1 1/4, LFB 11 3/8 up 2, NPSI. 13 1/4 up 1 1/2, CDE 4 5/8 up 5/8, PVH 7 1/4 up 3/4, WND 7 5/8 up 1 1/8, CDE 4 3/4 up 3/4, SHG 6 5/8 up 1, HBI. 5 7/8 up 3/4, JOB 7 up 1 1/8, AG 7 5/8 up 1 1/4, GCO 5 1/2 up 5/8, UNO 7 7/8 up 1 1/8, SRR 8 3/4 up 7/8, PAR 8 3/8 up 1,

(cont'd.) BAANF 11 3/8 up 1 3/8, HPH 9 5/8 up 1 1/8, MAH 12 1/4 up 1 3/4, SDC 14 3/8 up 1 7/8, FTL 14 1/4 up 1 3/4, PAH 6 1/8 up 5/8, PETC 10 5/8 up 1 1/8, NR 6 3/8 up 5/8, CYM 10 up 1, PMK 27 up 3 1/2, NWAC 26 1/4 up 2 7/8, CPU 13 1/4 up 1 1/4, TGX 18 1/4 up 1 5/8, PDS 11 3/4 up 1 3/8, SOL 16 3/8 up 1 3/8, TEN 34 1/4 up 3 1/4, DO. 23 1/2 up 2, VRC 7 5/8 up 3/4, UPR 9 1/4 up 7/8, IHS 14 1/8 up 1, PRD 19 1/2 up 1 3/4, NN 22+ up 1 1/2, ATW 17 3/8 up 1, LYO 18 1/4 up 1, WFT 18 5/8 up 1, RON 25 up 1 1/2, SFSK 25- up 1 1/2, MCH 19 3/8 up 7/8, NX 22+ up 1 1/8, MLHR 25 5/8, NBTY 7, LPX 18 5/8, LSS 10 1/2, SOL 16 3/8, MT 14 3/4, MMG 5 1/2, CSE 21 1/2, PGO 13 3/8, GSR 1 1/8, up/further, since last time here....

Also, for the last time herein, see, LE 29 up 9 wow, ATML hit 16, GILD 38+, EFII. 36, CHRZ 27-, PETM, IMRS 30+, higher still....while, FDC 30, TEK 30, CD, BC, hit their 200 DMA's....I gave you all these near their lows, check their charts for patterns....

note: please appreciate, that I have some subscribers who want "real quick and out" trades, and others, who want the "multi-month holds for bigger potential gains" trades....by VIEWING the "higher still" list above, you will hopefully learn better PERSPECTIVE in the overall chart patterns, and what can really be accomplished at times, if one lets them....another, of many reaons why we are so against "day-trading": why anyone would limit one's potential, and increase one's stress, on purpose, is beyond illogic.

and/but, then, seeing many pullbacks, like, Oil Service and Steel stocks, NWAC 24, ELCO 1 7/8, HAL -3, ESOL 2 3/4 up 3/4, TXB 4 up 3/4, MIFGY 9 1/4 up 1 1/4, ESV 10 1/4 up 3/4, NBR 13 up 1, ROP 19 1/2 up 1 3/8, AIN 18 5/8 up 1, BUR 10 1/8, LXR 1, BAANF, SFSK, RMDY, JDAS, WKGP, HCM, LPX, AAC, VTA, IDTC, TGX, TWA, HMY, NOI., ADM, MCL, WJ, INPR, LWN, CEI., PAIR, WEL, BTC, SRR, MPN, TRMB, APFC, SUL, PDE, VTO, GGC, NGX, SSC, MCN, DAY, CCH, UPX, OO, MS, NS, NE, IT, pb (pulling back)....some of these are also in "ms" list below.

again, please do not be afraid of buying the "Real Depressed Stocks", even in pension accounts, always diversifying, with close stops.... Again, you Must buy at least a FEW, to increase your chances of being in the bigger movers....Lesson: there is NO such thing as "but, Jim, which 1 or 2 are your favorites ?" It is impossible, and illogical, to expect anyone to be able to choose just 1 or 2, out of 2,500 issues....maybe 5 to 10, long-siders, and also 5 to 10, put-siders, sometimes, but never just 1 or 2....One must also eliminate one's "PSY-chological need for excitement", and/or of "instant/S.T. gratification"

* 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:
(some of these are also in "pb" list above) Oil Service and Steels and cheap Golds, and, HBI. 5 7/8 up 7/8, WORK 6 3/4 up 1/2, DBRSY 13- up 1 1/4, VTS 13+ up 1, RDC 10 up 3/4, IMO 16 up 1, BMG 4 1/4, CEI., CS, WS, PLC, TDW, MPN, MIFGY, OMPT, KRY, MWY, TRMB, WKGP, HMY, TLZ, MHR, BDS, CXI., LDW, PDE, TFT, AXC, TWA, BUR, LXR, SSC, MCN, ELY, TMA, GGC, VDC, BEV, MCL, ADM, TOX, AMLN, NGX, BTC, VTO, AZC, CAU, MS, OO, cheap Golds, Energy/Svc./Expl., Steels.

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 long Puts, unless otherwise noted):

* too late to buy puts on these now, but acting properly, stick around:
 Puttables specifically given you herein, many which are Falling/further, read list carefully today: ELNK -12 1/2, MSPG -9, RMBS -9, BVSN -9 (sow), BYND -8 1/4 (sow), LCOS -7, INKT -9, +20, -10, XCIT -9, NVLS -6 1/2, BVSN -4 5/8, ARMHY -4 1/4, HLYW -4, SEIC -3 3/4, MXIM -3, CSC -3 1/2, UTX -3, GM -2 3/4, GPSI.-2, GTSG -2 1/2, AMAT -2, AWS -2, CG -2, EMC -1 3/4, UST -1 1/2, HIG -1 1/2, BRG -1 1/4, LLY -1 1/4, VRTY -1, ADBE -1, CMVT -1, INHL -1, FTU -1, AWS -1, GPU -1, SYY -1, CQ -1, LLL, VL, down/further, just since last time here.... again, many Internet stocks must still break below recent multi-lows.... and also see 'bouncers' below.

* Note, how I, again, am giving you some Puttable stocks which are Falling, as most of "the market", and especially high-priced, name, quality-type stocks, rise, again....that I am among the very few, giving out ANY profitable puts, since early Sept. (and tons more, from March, and from July through Oct.) should be enough, yes ?

Note: these have always been listed, by "number of points falling", from most, to least...."(sow)" means, "Sell long puts On next Weakness, towards/near support"...."(S)" means sell/sold their long Puts right near here, and/or as in section (3) above....I follow-up every idea mentioned, for your benefit.... remember, these are NOT "overnite" trades, they take a little time to fulfill, so please have some patience, and no emotion, nor antsiness....let them do their thing....**** IMPORTANT, you MUST view the 200 DMA's of our Puttables, past and present, for their potential support targets/areas/prices....


* but, then, these, are acting too Strong, and/or are Bouncing, and/or must weaken anew, and/or are sales on pullbacks/weakness (sow): RMBS +4, -7, MSPG +5, SNPS -1 1/2, FTU +1, TI. -2, PNU -1 1/2, SGP -1 3/8, LCOS, INKT, BFO -2, RATL, IDXX, GVA, RCGI., SEPR, MXIM, RFMD, SEIC, OMC, DLX, MKL, FAM, EFBI., PNY, SYY, SFXE, UFS, VL, CG +1 1/2....See, many stocks, and Internets, must still "follow-through", and break below recent lows, to warrant holding their Puts or shorts....


Remember, we either buy our Puts right up near each stock's high, or not at all....but you can still view their charts, to "see" previously formed/worked/aborted "PSYCLE sm" patterns, to hopefully Learn from.

6) Now--- Here are Other, 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):
Be patient here, and do not "force" trades, or overtrade, just because, PSY-chologically, you "want" to have "something" to buy long....do NOT be "antsy", relax....let the patterns come to YOU....also, there may seem to be "a lot" of stocks to review here, especially in the next two sections here....but that says how cheap many stocks have been at times, right ? Of course, near the highs in March, and July, this list was much smaller, yes ? It is logical and expected, after the recent mini-crash, That there have been/are more "EVB's", yes ? Also, remember, we do NOT "chase up"....only buy the ones You prefer to choose, which are still near their lows, with stops for protection.
"Potential Longs, by Industry Groups, for Rotation":almost no great Bases here, just 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 ?):
NOTE: when there are more stocks listed in an I.G. here, that tells you I feel more strongly about that I.G., right ? Which, in turn, tells you a lot about how "the market" looks, sometimes....

Semis/Comp./Techs: please see "Techs", listed, in the "watching" section, just below.
new group, somewhat riskier, longer-term: (Y2K) "Year 2000": (CMND, ACLY, IAIC, MIFGY, but ONLY near recent lows, is maybe too late already, yes ?)
Prec.Metals (add, BMG, CDE, to, DBRSY, GSR, TVX, GLDR, CCH, VGZ, DAY, CAU, AR, some real cheapies, riskier)
"Basic Inds." (Chem., Farm, Steel, Paper, Copper) (MCH, LFB, RTC, MAH, CYM, CCC, TEN, CSE, FNL, BS, TFT, LTV, GGC, AG, LPX)
Energy/and Oil Svc. (add, UMR, to, BJS, PDS, TRP, LYO, NBR, WFT, RON, UPR, HP, TDW, SDC, ATW, NE, NOI., GLM, MHR, RDC, WEL, PDE, ESV, TRMB, near their recent lows, only)
Biotech/Health/Medical (SOL, FHS, MATK, NOV, PHYC, GNSA, SHG, LXR, TOX, ULB, CCLR, IPIC, TOX, MPN, IHS, MT, MS, VTA, TXB, VC)
Consumer/Retail/Apparel/Shoes (NBTY, SRR, COO, WND, PAR, PVH, PBY, SRR, HMY, KFI., MSN, OO, UNO, BLM, GCO, HBI.)
Hotel/Gaming/REIT (ILX, PAM, LOD, HET, SER)
Employment (OLS, JOB, MPS, RMDY, ESOL)
And, as I pointed out earlier here, some depressed R.E.I.T./Financials/ Mtg.-type/R.E., stocks, many with huge Insider Buying a while ago, some with very high "potential" dividends, may shape up ahead....watching, in no particular order, JAMS, BED, BD, LOD, PRT, SMT, OH, WDN, RTC, ACH, ARI., FHS, AMMB, NHR, BRE, PAH, AAC, ALF, AML, AMMB, BNP, BOY, BRI., CPP, CMO, CRO, ENN, FBG, NDE, KPA, JPR, MAA, PMC, RFS, SIR, SPF, TMA, IMH, FP, MT, if you need some maybe's, on pullbacks only)
NOTE: Tax-selling bounces beckon, yes ?

And, as I have been saying here, even though I have given you a ton of quick 50-100% gains, since Sep./Oct., do NOT expect as large rises off bottoms, as when I gave out similar "EVB" Techs, in the late '97/early '98 period (nor, from the late '95 to early '96 period....I was first/only to do so near their lows at those times as well), because there are NOT many "true bases" here--- just some with good EVB's....we accept occasional Q, small losses in some longs, w/close stops, along the way, to get to the Bigger Winners....Also note that many already popped stocks pulled back, after their recent/initial "dead-cat bounces". This is normal, and welcome. Hey, many formed better bases, double-bottoms, etc., right ?

and/but, Important: also, took these Off the pot. long Buy list, Before they might have been Hypothetically "bt.": BLUD, EAR, GND, HIV, --- were taken Off....These/they just need more work, technically, first, and/or are still making new lows....we do NOT "Guess" at bottoms....we want only the EVB's, which set up properly....we MUST also see the cathartic/high volume, in "PSYCLE sm" stage 7", first.

* The stocks on this next list, are also, still, Current, or, Potential, "EVB's" ("exhaustion V bottoms"), read that Booklet !):
Remembering ONLY to buy near their recent Lows (do not "pay up" much off lows), as "EVB's", diversified, w/close stops....these, plus the stocks listed above, and the "Newly Boughts" in Section (3) above, comprise the "total" complete long-side buyable lists in today's market.

We are Also "Watching" --- as potential EVB's/bottoms, near recent lows ONLY: add, AXC, SAMC, CMIC, NETM, ISSI., UWW, GHM, TKR, HPH, to, those listed in section (3), and those just above here, plus, (alphabetically by symbol) AFCI., AGTX, ALN, ALR, AOI., ATV, BA, BAANF, BEZ, BGO, BTC, CEXP, CFB, CLF, CPU, CS, CXI., DRQ, FHCC, FLM, FTL, GDC, HCM, IDTC, IGL, ILX, INPR, IT, JDAS, KNE, LSN, LSS, LWN, MANU, MSX, MWY, NDE, NPSI., NWAC, NOX, P., PAIR, PCTL, PIN, PMK, PRD, RBK, SAA, SEW, SIF, SNY, STRX, SUPX, SWW, SYNT, TFN, TIE, TLZ, TMO, TOY, TSO, TWA, UTI., WKGP, WTT, still, most all as "EVB's" (again, note, most are "Techs", with some "Finls., Foreign, Health"), plus, the Value Line issues: NSANY, DEMP, CEPH, GNSA, OFIS, BUNZ, SEW, TSA, MGN, COE)....some here, some Not just yet, as some still need more work, technically... and/but most, only on pullbacks towards lows....and/but, not any of these, when/if they make new lows or break budding bases/patterns....don't "force" trades....also note, more addeds are also, in Farm, Energy, Health, Tech, REIT, Retail, Apparel, Airline, Gaming, industry groups, dig ?

**** The potential Longs above are chosen, First, by their EVB, or "base" technical chart patterns, then, I do do a "little Fundamentals research" on each, to make sure they are viable companies, with no "hidden time bombs"....Last, on some of these, you are going to have to stretch your time-frame out a bit, this time around, as some of these may, like after the last few mini-crashes, take weeks instead of days, months instead of weeks, to form any bases/EVB's, and/or rise, dig ?

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, or lower (NOTE: again, if they are already down appreciably from their highs, do NOT chase them down, right ?):

(re-read my "Downside/Puts" booklet) now, I add some more Puttables, again, after/into recent bounces:

Fuller, Potential Puts list, by Industry groups where practical, near their highs ONLY, do NOT "chase down":
note: this list supercedes all previous ones....these are the ONLY Puttables here, all others have been removed....
(banks/insur.) HIG, CMA, CBC, FTU, FLT,
(comp./techs/s'ware) RATL, BSYS, CSC,
(telecom/commun.) CVC, TEF, CDRD, LLL, TI.,
(medical/health/drug) INHL, SGP, PGNS, MDT, RFMD, BGEN,
(food/bev.) BOBE, PZZA, UFS, SYY,
(utilities) BRG, UCM, PE, D.,
(internet) INKT, ELNK, EBAY, BCST, MSPG,
(others, misc.) SEIC, FRX, HMK, ENE, SSP, INSS, DLX,
also watching: added, ARMHY, PLXS, MXIM, DCLK, GPSI., GTSG, VRTY, BVSN, ASDV, CMVT, VRSN, SDLI., SMTC, XIRC, ADBE, BYND, UTX, UCM, UST, ABT, HIT, TER, EMC, LLY, CXR, AOL, CL, VL, CI., to, NVLS, HLYW, SNPS, IDXX, SEPR, INTC, AXNT, AMAT, BBBY, RMBS, AWS, AET, AJG, DA, DS, TROW, NEON, NLCS, PNU, WAT, NTLI.,

the Best Puttable Industry Groups: still, added some Homebuilding, to, Extended Banks, Health/Medical/Drugs/Biotech, Insurance, Finance, Computer, Retail, Internet, Aero./Def., Food/Bev., High-PE techs, all Tele.-Commun., in no particular order, as the most probable Puttables, near their recent Highs ONLY, w/close stops above their patterns....also, note how we are revisiting some of our past Puttable stocks....

8) "PSYCLE sm" Lesson for today:
Besides all the previous Lessons you have hopefully gleaned from all my past materials, NL's, ideas, and my (7) educational Booklets, I promised I would re-run "the seven sequential stages of my "PSYCLE sm"", and, from 12/7 NL, through the 12/28 NL, I did so.....refer back to those sec. (8)'s any time.....hope they helped....but NO special "lesson" today, except to re-read recent explanations of stages 1-7....take that time to VIEW charts from section (3) and (6)....

Remember, the time length of the full trip from stage 1 through 7, can be one year, or ten years, or 100 years, depending on one's desired perspective....A stock can be in one stage S.T., and another stage L.T. Now, one cannot have "everything", that is, we try not to turn a S.T. position into a L.T. position, and we never even try for 10-baggers over several years....One must decide beforehand, whether one expects a S.T. trade or a L.T. investment....But at least knowing the normal, usual characteristics of each sequential stage, puts us way ahead of "the 95 %". I use 1-year and 2-year charts, period, because we seek 1-2-3-month holds and moves, and NOT overnite, or daily or intraweek moves....

Remember, WE tend to ONLY trade long, from stage 1, into stage 2, with stops, and often miss potential stage 3 rises....and we try to Only get Puts at what we think might be a stage 4 top, with stops, and often miss stage 6 and 7 drops, but more on that later....The highest-reliability, reward/risk plays, are in stage 1 and 4, even with occasional stops triggered.
IMPORTANT: people keep trying to "formula-ize/computerize" my "PSYCLE sm" process, which, as I keep saying, is a fruitless waste of your valuable time...."just get close(r)", and do everything else correctly....The KEY is just plain learning the simple VISUAL chart patterns for each of the 7 sequential stages in my "logo chart" on my webpage and on the front of every Booklet, then adding the "sentiment" nuances of each stage.

As Repeated in Every NL:
As I keep reiterating, It is also still better most times, to, 1) buy "some" stage 1 "PSYCLE sm" stocks, in depressed or EVB chart patterns, when their "news seems so bad" but their patterns show EVB's (and have occasional, small, cut losses), than to never do that at all....Because, historically, and as you have seen herein, any small, cut losses, will be more than overcome by larger % Gains, over time, off those EVB lows, when one properly Diversifies....and, to, 2) TRY at least "some" "Puts/options" the opposite way, near their Highs only, when/where suitable, than to never do any Puts ever....always diversifying properly, with close stops....no emotion.

Remember, "PSYCLE sm" stocks tend to move much more INDEPENDENTLY of any/all "external" stuff, than "the 95 %" incorrectly believe....one does Not "need" "events" to happen, in order to exploit normal, probable stock price moves.... this is a Good thing....One Key is to have the strength to Buy, when there is a "scary story", provided the stock pattern is intact....Connectedly, realize, by nature, there is SUPPOSED to be no "sexiness" in stocks/groups, near their lows, in bases, nor EVB's....they only become "sexy", After they rise a bunch, right ? and, by then, it is/will be too late....One must buy into NON-sexiness, into NON-positiveness, into "fear", when the patterns are intact, right ? Also, buying PUTS options "the Psycle Way", can be viewed as just plain intelligent/ logical, and proper, as just "insurance" or "protection", as well as for direct profit at times, yes ? The March tops, and July tops, and drops, have proven that yet again.