Jim Goodman's "The Right Side of the PSYCLE sm"
newsletter/education service, issue # 5 , dated: 10:00 am, PST, Monday, June 22, 1998

(Save all my Cumulative missives, for future reference and educational help....these each tend to run about 5-6 pages in length, printed out....please read my Entire letters....i.e., if you choose not to "do" Puts, or Options, or if you are not "already long" those stock/puts positions/ideas listed, you may feel like ignoring some of the sections below--- but it is much better if you take the time to check ALL ideas shared herein....you can always also refer back to "the Guide" booklet, for more info./details/ideas... The process will become second nature to you quickly: buying long, and buying puts, from section (3), and also, from in sections (6) and (7) when those set up properly, cutting losses when stocks break patterns, etc.

1) "PSYCLE SENSE sm":
Welcome....Again, my new newsletter (NL), and educational services, is also a "Continuation" of previously recommended stocks/ideas, for the benefit of the people who are also coming over from it's Previous incarnation, to provide Them with a "seamless" transition, "on the fly", so to speak....and Also, to show YOU, as NEW subcribers, all the Recently/past suggested ideas, which I shared with my followers, so that YOU can then also view their recent/past 1-year/2-year charts of, to "see" what we are trying to accomplish here, to further help you learn. Remember, all my NL's are Cumulative, and can/should be saved and reviewed, especially the "commentaries" areas, to glean the most value from my output, over time, as "lessons" and "proof". IMPORTANT: I assume all my valued subscribers have read all my past NL's.... and, eventually, all my "essays".


First, I hope you have at least bought long "something" among the Depressed Techs/Asians/stocks I gave you last week, with close stops, diversifying a bit, at a minimum, with such recent baby/bathwater/PSY-chological action....be sure to read my essay on "Exploiting Exhaustion V Bottoms"....still a nicely "split" market, exploitable in BOTH directions simultaneously, which is a Good thing. For the umpteenth time, "the market" is neither "the averages", nor an important "thing" to even be concerned with....Who is going to do better: the average person who just "hears" stuff, or "one price of something" or one item reported my the media, or, the person who views every stock pattern WITHIN the market, then chooses the potential best issues to exploit, long and short, based on many long-existing, consistently repeating patterns ?

Again, one important thing to LEARN, is to rise above the "only average person's," 1) illogical fear of buying Puts options near highs, and, 2) the "Media-created" fear-of-buying-near-short-term-lows (Friday morning, I heard reporters use the term "global market meltdown" several times already.... gotta be at least near a PSY-cholgical Bottom on some Asian stocks, right ?), and, 3) to at least Buy long, "something" at an "EVB", like we had last Mon./Tues.... whether "you" want to, or not, PSY-chologically, dig ? Also Buying, where suitable, some Puts on at least a few given ideas, which are still right near their highs, in toppy patterns, while, if suitable, also looking to buy, Long, at least "something" in depressed stocks, here, where those stocks are right near bases/support (provided those bases/double-bottoms/patterns are intact, and those stocks are Not still hitting new lows) as "the 95 %" remain pretty antsy here, right ? With close stops, being diversified, one really has lower risk doing it this way....it is SUPPOSED to be somewhat uncomfortable/scary to do this, at extremes, yes ? That's one reason why so few people buy Longs near lows, and/or buy Puts near highs....

But remember, we are still NOT acting directly "on" any "externally reported" stuff, like, foreign or domestic news/financials, indexes, or Media messages--- we are acting, to try to take advantage of long-existing, repeating Patterns, of chart, ind. group, media, and human behaviors, adding/using I.G.R. where applicable.... Again, "PSYCLE sm" traders are NOT overnite/day traders, nor 'scalpers'....our general holding period with successes, is still at least several weeks, or a few months, so you do NOT want to be watching/hanging on every little move in "the averages", nor every "story" reported, which is, again, one reason why we Rarely watch the indexes....with NO emotion, and almost No "news", into our brain....

So, while I am definitely trying to pick up some depressed bargains long, and catch some extended top formations in puts, here, I am still recommending holding above-avg. cash balances with good-sized accounts. Do NOT become scared/ emotional here, nor "try to guess bottoms on issues which are still making new lows" (how many times have I said THAT already ?). Learn to let the decliners bottom, base, or at least become "EVB's", on cathartic, huge, volume, or reach previous support levels, First....and, as for Puts, selling those which fall towards their 200 DMA's, or below, for quick, nice % Gains-- see section (3) below....Important to remember/learn: Realize, that this whole "Asian thing", will play out, as pertains to stocks prices movements, as all previous "crises" have, like, Japan, Mexico, Canada, Silicon Valley, Europe/Berlin Wall, Russia, Middle East, etc., have/did, in recent past years, each of those providing us with nice depressed long buys, into the "scary news", near their lows, dig ? (As I teach in my "essay" on Mastering Psychology/Emotion, people's memories are so short, they forget important things like this). The pattern/sequence is most always the SAME, each "crisis"....learn it....(of course, the depressed "Techs" may provide better "bouncer" potential S.T. here, than some of the others suggested, but they are all similarly positioned regardless>.

And, in keeping with the "eliminating emotional stuff" theme, please do not always be in a rush to do anything/everything, nor "stretch," nor "create" "wishful" trades, when/if the stock patterns of the issues you "hope" or "want" to trade, at some point, are just not ready yet, dig ? This is about PSY-chology, historical pattern recognition, and THEN (in)action....But, as I said in last Monday's NL, you gotta have Bought long, "some things" among the depressed issues I have given out, with close stops....

Conclusion: While recommending buying "something" depressed here, I am not going to fight the tape, nor force some "longs", here, in those other depressed issues which are not yet setting up well enough to warrant buying....(see how many I have removed from pot. Buy list, because they broke)....Again, note how many potential "EVB's" still exist, in section (6) below....there are always a bunch of those near oversold S.T. bottoms, yes ? Often, as I teach at length in my "essay/booklet" on mastering Industry Group Rotation, one can tell more about what lies ahead, by actually viewing the 2,500 Individual stock charts I view every weekend, than anything else "external" to the internal markets themselves... ..the action of the EVB's may indeed tell us when the decline is over (and, as I was first to say, last week, for many such stocks, the decline is over)....and late Mon./early Tue. was/is a VG start of a bottom, for many stocks, dig ?). Important: the Depr. Techs we DO want, are those which have Not gone to new lows, yet still retain their bases, or double-bottom patterns, and/or, those that have high- volume, cathartic, "Exhaustion V Bottoms", like last week had, into/with such negativeness around....You must try to have the PSY-chological strength to dip your toes into the "Long-side" water, right near EVB's, here, a bit....as I say below, buying "something" depressed, with stops, beats being too afraid PSY-chologically, to buy "anything" after a decline like we just had.

The extended Puttable issues we want, still show the rolling top pattern I am known for discovering/teaching, and still have the potential to drop, towards their 200 DMA's at least....Some have S.T. "hhok" tops, others have the "rolling/ umbrella top" I am famous for finding....Use this initial NL period, to LEARN as much as you can about my "PSYCLE sm", also read All my booklets/essays, and view/learn the patterns....therefore,

This is still a nicely "SPLIT" market, providing both, long and short opportunities, simultaneously, for all types of traders/investors. So, "pick your potion(s)," long and/or short side, for your different accounts/needs....You should have been holding a well-above avg. level of cash in your growth accounts, which you can now be using to dip your toes into the water on the Long-side down here with....And, if you have never done Puts, this has been the time to learn how to do so, from me, using my "booklet/essay" on How to Properly Exploit Puts, benefitting you for the rest of your trading/investing life.

Again, you must learn to pretty much INGORE the Dow Jones Ind. Average.... Letting SMALL % (big seemingly big in points) moves, up and down 200 points, into your brain, will only create damaging emotionalism in your psyche, which is NOT what you want....Look, the DJIA "divisor" is now down, from 3.00 in the 1970's, to under 0.25 today ....meaning, every point move in any DJIA stock, translates into 4 points reported in the average itself ! You mean you did not know this ? Plus, you have to learn to buy puts after big rises, and buy long, after big declines; doing the opposite of what "the 95 %" do, right ? So, Do NOT be swayed by every + or - 200 point move in the Dow....after all, even 500 points, on 9,100, is "only" 5 1/2 %....as I teach at length in my "Scenarios/Linkages/Words" essay/ booklet, "volatility" in and of itself, is neither "good" nor "bad"....it is good, if prices move in the direction we wish, yes ? It is YOUR fault, if you "never" do puts" to take advantage of normal declines, and/or never "hedge/protect" massively long positions in stocks or mutual funds....I am here to help/teach.

2) "What's been said, and What I've read":

a)

b) learn this PSY-chological dynamic: I received yet another in a long line of phone calls, in the last few months, asking me "when is Iomega going to bottom ?" I have been getting these calls, for two reasons: first, because I got some fame a while ago, when my "PSYCLE sm" was the first/only to predict the top in IOM, over $ 50. (1996) then, also, its' initial bounce up, off it's EVB from $ 13., to $ 27. (1997), thereafter....and, second, because I seem to be among the few timers, NOT to improperly have bought back in yet, even as IOM continued to make new lows, and has NOT yet exhibited an EVB yet....the "Psycle Lesson" to learn, is, NOT to get emotionally attached to ANY stock or "story" (read my essay on using Psychology/Sentiment), just because "it used to be an exciting stock", dig ? As I teach, many mediocre traders/investors "continue" to follow/want a stock THEY MISSED GOING UP, when it starts down in its "PSYCLE sm" pattern.... People "want" to or "hope" they can again participate, or rekindle, the "desired excitement" of being in a "hot" issue....But, as you know from learning my concepts, stocks are ONLY "exciting" near tops, or AFTER already up a lot, right ? Therefore, their inner psychological weaknesses leads some people, and the Media (don't get me started there) causes them to CONTINUE to follow/put into their brain, items whose time is PAST....of no help or purpose or value, with respect to predicting future stock price moves....got that ?

Since I do view 2,500 individual charts every week, when and if a stock bottoms, I will likely see it, at that time, independently of any past experiences I may have "missed", dig ? Since we treat every stock the same, emotionally, and have NO wishes/hopes nor psychological "needs" to fulfill with my trading, when/if IOM sets up properly, I will probably know it, and until that time, I will not expend any "brain space" watching it, in the meantime....gosh, I hope this is clear--- because our brains can only process a certain amount of "input items" of value, timing-wise....by ignoring 95 % of everything of no "D.U.P.P.V." at all times, we can make better timning choices/decisions, with less emotional neediness ...so, forget about "past" big movers, until/unless they form EVB's or bases.... concentrate on potential FUTURE Movers from here, as THEY set up properly....and use the rest of your "brain space" for other important things in life. Remember, my "PSYCLE sm" is predicated on using 5 % of inputs, to generate 75 % of all possible topping/bottoming ideas at any given time. The other 95 % of "stuff" is NOT worth letting into your brain, because, even when they may be correct "some times", they will still only add small incremental gains to you performance long-term, so why expend all that effort, to little end ?

c) the commodity "gold" is bouncing again here, and I mentioned that "silver" looked better, but am still not in any of those stocks yet, but am watching some, as in section (6) below....note, the commodity is upo, yet most stocks are down....so much for incorrectly assumed "linkages" (read that booklet available)....am also watching some depressed Fertilizer stocks potentially form EVB's, all of a sudden....keep in mind, as with the Steels late 1997, etc., I will probably be the first to see bottoms, as usual, especially in such out-of-favor industry groups....

d) Following-up on Sunbeam....since it has continued to hit new lows, it had still NOT yet become an EVB buy, down from 16 recently, dig ? "PSYCLE sm" traders never "guess" at bottoms, especially when there are plenty of much-better- looking charts/stocks out there, which HAVE formed EVB's, yes ?

e) and, as I said herein, 11 am, PST, Monday 15th, the worst of the depresseds "Techs drops", and "Asians drops" was/is now over, for many short-term bounces (see section (3) and (6) below....at least the worst part of any drop is over....as usual, my "PSYCLE sm" will be the first/only, to predict/catch them.... note: if You know anyone else who might also benefit from timing like this, or you know any "Media" people who might help publicize this to their deserving readers/ viewers, please lead them to my output, and I will reward you....thanks.

f) a nice subscriber asked me if so-called "triple-witching friday" stuff means anything, via my "PSYCLE sm"....I have been following/trading "options' since 1973, when formal options exchanges began, and, all studies I have done/ viewed, have shown NO consistently applicable price-predictive-patterns, for such an event, period....also, this item is another primarily modern, "Wall st./Media" creation, meant to engender viewers/emotions/trades, dig ? Also, to get people to "look the wrong way" at times, and, often, as I teach, causes unenlightened traders to trade more, for no good reason, with no consistently successful results ....Simply, such an item is not even worth putting ionto your brain in the first place....and pretty much a waste of time....Again, if an "item" (read my Media, and Linkages, booklets) does not have a consistently applicable, long-term-past history of easy predictability of having worked in a simply-derived, similar way, many times before, the same way (as my "PSYCLE sm" DOES), we do NOT let that "element" into the decision-making side of our brain 95 % of the time, regardless of what anyone says about it !!! (the only rare exceptions might be, as an occasional "contrary" indicator for very-short-term trading, which WE do NOT do anyway).

g) I heard another reporter on the major Financial TV station, say the following (quote): "Disney stock is being taken apart, down 4, to 108....what's wrong with this company, which just recently was the darling of Wall St. ?" oy. As I teach in my "How NOT to use Media messages", and "Scenarios/Linkages/Words" essays, not only are reporters (and reports) 95 % useless as future-price- predictive-factors, the actual "Words" they say, are often incorrect, misleading/ sensationalized....folks, 4 points on a 108 stock, is NOT "taken apart", and there is nothing "wrong" with Walt Disney Cp., itself....Everyone should know that all stocks have intraweek moves of 5-10 % normally....but, of all the things to say, this guy had to say "that". He is neither helping anyone, nor imparting any information of "D.U.P.P.V.", is he ? He is just wasting valuable air space, preventing millions of people from learning the items which DO help predict future price moves....Last, when DIS was forming it's high recently, this same guy was reporting exciting, it-will-never-going-down-again words about it, dig ? Understand, I have Not liked DIS stock for weeks now, and still do not....but, again, we see how an ignorant reporter, in a huge medium, injects emotion and over-fear, into a situation where not necessarily warranted....plus, he reports it, ONLY after DIS has ALREADY fallen, from 128 to 107, dig ? DIS has just been falling towards its 200 DMA, around 102, as just a "normal" expected correction.

As I cover at length in both, my Media, and Scenarios, "essays", the Media's members/sources, themselves, most often tend to agendize, sensationalize, create, slant, and overreport, mostly all the wrong items anyway, at the wrong times, and, therefore, one should learn to IGNORE 95 % of everything out there, which does NOT directly help predict future price moves in individual stocks.... Again, as my "PSYCLE sm" teaches, the "S.E. Asia Crisis" may worsen, economically/ monetarily, and/or from a "human interest" point-of-view, but many individual STOCKS of those types of companies, will Bottom, BEFORE the reported "economics/ financials/news" improve....I am trying to teach you how to do this....Please also try to learn about (and ignore) the "Words" reporters use (covered in my "essays", on subjects like, Linkages, Scenarios, and Media, and Mastering Psychology) which lead "the 95 %" to emote improperly, and act, when they should not....When the Media "creates" stories where none exist, and/or exaggerates, to cause emotionalism, it wastes everyone's resources/time, and causes many people to "act" in an emotional manner, incorrectly, which doesn't help anyone....so we mostly IGNORE those messages. In historical fact, almost NO "assumed linkages" nor "scenarios" have ever existed, nor worked, as "they" have suggested, and as I prove/teach in my "essay" on those subjects.....hey, notice how, each day, the Media reports "Asian/Tech. stocks" index movemnts independent of all previous days' moves, yes ? And They rarely show you the bigger picture the last year or so, do they ? I cover how to get Perspective in my "Scenarios" essay....we have to be able to "see" what the Media will/do not show us, so we will NOT be affected emotionally by their misleading/incomplete/sensationalized messages....

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) (Q = quick; i.e, less than 2 months holding period....VQ = very quick; i.e., less than 3 weeks holding period....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 avaliable/suitable, and on a cash basis where not, as per "PSYCLE sm" rules), and also try to view their 1-year-past price charts, to see the patterns, and where/when they were Hypothetically, originally "bought", longs near lows, puts near highs !!!)

* previously assumed long positions most recently SOLD (price changes from where/when originally recommended shown):
puts PRH (49 to 37) for 111% Gain....bal. stk.on.mgn. RAYS (6+ to 13-) for L.T. 111% G....puts TKLC (48+ to 40+) for Q 85% G....puts MCLD (48- to 38+) for 100% G....puts THI. (34+ to 26+) for L.T. 80% G....puts BJ (39+ to 37-) for Q 33% G....and, puts SGE (51 to 45 to 52), WCOM, AOC, MAS, longs CHIR, KEG, CNU, for V Q, very small losses....by viewing all past-year patterns, you will hopefully "see" what we are looking for, to exploit, for probable declines....remember, "PSYCLE sm" traders have NO emotions, especially where cutting Q,S losses are concerned....you can always also go back and view "completed" trades from previous NL's, to "see/learn" more....

* 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, always diversifying, always with close stops below/above recent lows/highs): (if you are new to my 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, dig ?) again, the idea is to just get "real close" to my listed prices here, when buying long/selling/putting issues given....do NOT worry about every 1/8 or 1/16...


New Longs: MADGF @ 4 1/2, BDE @ 2 7/16, SAMC @ 24+, IDTI. @ 7-, DIMD @ 6, CPU @ 16-, SGI. @ 11+, VTO @ 6 5/8, PNF @ 2 11/16, IIR @ 11 1/8, DMN @ 13.06, Z. @ 19+, AMD @ 17 1/4,....notice, our first EVB buys here....Important: note I removed, FWC, CUM, TER, GFI., from pot. buy list, Before "bought", as their patterns aborted before they set up....be sure to read that "EVB essay" I offer ....it is inexpensive, yet extremely valuable for learning timing...oh, also, note, besides Depr. Techs, the recent potential long Buys list, is a mish-mosh, with no other real clear "industry Group Rotation" signals, yet.... maybe, also when/if some Energy issues hold down here ? Usually, I find several IGR issues to exploit, but Not here....no biggie, though, since we'll just buy individual issues regardless....as I teach in my "essay/booklet" on IGR, we don't "have" to have clear I.G.'s, when so many depr. issues have completed short-term EVB's anyway, etc. But, learn this: often, one or two issues in a depr. I.G. will set up, then, others in that I.G. will folow, over time, so I do watch for that, ahead....it's just, that, obviously, when several in one I.G. set up, we have more "power".

New Puts: INTU @ 52-, MAY @ 65, AEH @ 50+, FON @ 74-, PFT @ 42-, NYT @ 74-, CEN @ 58-, MLG @ 14-, STI. @ 80-, PTX @ 48-, LIN @ 33-, SPF @ 18++, DL @ 25-, LU @ 74, EQ @ 69,....

....and/but, just missed, GSTRF (view it, vs. its 200 DMA), RWAY, AMFM, PEGS, KNDL, VSIO, FOE, as puts, near recent highs, and, MDCO, PAIR, ADPT, BROD, and some Energies, as Long buys, near recent EVB's....check their patterns also, if you'd like, to learn, for the next time....I will always tell you here, also when we "miss" actually catching suggested ideas, so you can "see" their patterns, for your benefit/education....obviously, recent "SOLDS/completed trades/results/ actions" have been skewed towards the Puts side....the idea is to learn the patterns of previously done ideas, for the future....as I said, many "Techs", and Asians, and Metals, WILL bottom ahead, and we will be there when they form better bases/"EVB's", but for some, just Not yet....we already have seen some, right ? As I said, it may still continue rough for a while yet, in those long-siders. Again, while the Media "worries" about "earnings" impacts of crises, the STOCKS involved will likely BOTTOM, even as lower financials are announced, right ? We'll be watching for this ahead....small, cut losses will not hurt us regardless.


Remember, all previously mentioned ideas are Followed-up, for your Educational and trading benefit....

4) Already given out in previous NL's, assumed Hypothetical "Long-side" positions:(issues moving since last time, following-up, still long, unless otherwise noted):

* too late to buy here, up already, acting O.K., stick around:
SHM 2 1/4 up 1/2 (sos), CIR 19 1/4 up 3 3/8, DBD 28 up 4+, RMBS 46 up 6, PNF 3 1/8 up 7/16, MADGF 5 1/4 up 7/8, CD 20 1/2 up 2 3/4, SHVA 10- up 3/4, CS 14 up 1, SNRZ 30- up 2, CPU 17+ up 1, IFMX 7 3/4, PAASF 8 1/2, ICST 15 5/8, UST 27 3/8, SGI. 12 3/8, AOI. 5 7/8, BBA 4 1/2, up/further, since last time here....
note: ("sos") means "Sell On Strength"....("S") means Sell it (t)here....

* and/but, these already assumed Longs, must strengthen,
and/or are sales on strength ("ms/sos") :

AMD 18 up 1, DIMD, LIPO, ELCO, OAKT, OXHP, ESOL, WKGP, FTPS, THDO, MATH, NETM, KMAG, AXC, DGN, DEN, NGL, OEA, ACE, DMN, CNU, UBS,....and, then, MADGF, SHVA, ISSI., PLL, pb....(pulling back)

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

(issues moving since last time, following-up, still in Puts, unless otherwise noted):


* too late to buy puts on now, but acting properly, stick around:
PTX -5, AZA -5, ASGN -4, PPG -4 3/8, LIN -2 3/4, APD -2 1/2, UVN -2 1/2, SLOT -2, FON -2, BPOP -1 1/2, UVN -1 1/2 (sow), STI. -1 1/2, QTRN -1, MAY -1, AZA -1 (more points down, since last time here), BLC -1 (sow), TKLC (S), UFC, GPT, BUR, DSL, CCB, APD, CCL, FSA, AWA, REP, HB, XL, all down/further (since last time)....and, a takeover in GRN, very rare huge put loss....remember, these are NOT "overnite" puts trades, they take a little time to fulfill, so have some patience, and no emotion, nor antsiness....let them do their thing....view their 200 DMA's....hey, we gave you plenty of Puts winners, so far, lately, yes ? plenty more to come....

(note: ("sow") means, "Sell long puts On next Weakness, towards support")

* but, then, these, are acting too strong, and/or are bouncing, and/or must weaken anew, and/or are sales on pullbacks/weakness (sow):
INTU -2, TEF, FRO, ASGN, STD, FISV, COFI., AGI., SOTR, CTAS, SPOT, PMTC, TCAT, INTU, FILE, AEH, AWA, DNB, WTW, AGC, TLC, FNV, ASO, BBK, NYT, SPF, NFS, FNF, OMC, ZLC, STI., LCI., JCI., VIA, GIC, LIN, CI, DL, BJ....if you did not buy Puts in these, in this section, near their recent highs, you do not necessarily have to view their charts, unless you want to view their charts anyway....obviously, getting some bounces off recent lows....

....remember, we either buy our puts right up near each stock's high, or not at all....and, some of the issues listed herein, are from previously suggested newsletters, as I said....but you can still view their charts, to "see" previously formed/aborted "PSYCLE sm" patterns, to hopefully learn from.
none. (view their patterns to see what aborted Put patterns look like).

(again, I give you all those, so you can view "puts patterns aborted before positions were Hypothetically established" as well, for your learning/benefit)

6) other, still-Depressed, Long Buys, near their recent Lows Only, for potential rises towards resistance, always Diversified, w/close stops, when/if their basing patterns break down:
Please be patient here, and, again, do not "force" trades, just because, PSY-chologically, you "want" to have "something" to buy long, here....do NOT be "antsy", relax....let the patterns come to YOU....but do buy "some things" here, with close stops....also, it may seem to be "a lot" of stocks to review here, especially in the next sections here....mostly among EVB"s....check those charts you choose to view, but the Key message, is to see how many ARE forming EVB's here, as a measure of "timing", meaning, it is real unlikely that "the market", as bad as some big name issues look techincally, can have another big drop yet, without many of these long-side issues bouncing, first.
"techs": SGI., IIR, CS, (only as below, very few actual basers)
"health": OXHP, CCLR, LIPO, TOX,
"in other industry groups": MSN, BBA, OEA,
....and, I am also "watching" these, as potential buys, at some point ? adding, NVX, RFP, to, MADGF, SYQT, CADA, WKGP, DGSI., IFMX, ISSI., ICST, BDE, HLX, DGN, EOG, KLB, DEN, MLR, SFT, LTV, (as potential basers, or double-bottoms)....again, most are very depr. Techs. (please also see EVB's, below), but, as I intimated, it is just Not a "great" long-side list, here, still, but, more EVB-type bounces likely)
....while some depr. Techs ARE good for a shot here, w/close stops as usual, do NOT expect as large rises this time, as when I gave them out late '97/early '98, because they do NOT have bases here, just good EVB's, as with the "Asians".

Important: and/but, also, took these Off pot. long Buy list, Before might have been Hypothetically "bt.": CUM, FWC, GFI....they just need more work, first, and/or are making new lows....as I have been saying, a difficult time for the "long" side, so we hold more cash, and/or Puts....but we do NOT "Guess" bottoms. ...we want only the EVB's, which set up properly....diversify....

* And, also, these are still, current, or, Potential, "EVB's", as "BDG's" (read that booklet):
add, ADPT, BROD, ALSC, PHYC, SMOD, DURA, PTEK, SIII., PRG, ELY, UST, NVX, PNF, LFB, WTT, BDT, GRO, PLP, PKX, SKM, VTA, SWW, CRK, GOU, BLM, CIR, NN, N., to, MANU, SAMC, RMDY, KMAG, ESOL, SNRZ, ELCO, PSSI., REGI., ICST, IDTI., DIMD, GEN, CWC, CDG, PHV, IDX, VC, CD, BMC, GTR, VTO, ONC, SOC, UTR, BCU, DMN, ROC, CPU, RN, EX, CY....(some are double-bottoms, some have S.T. bases, but most do not, yet). (and also watching DANKY, PAIR, ALSC, RDRT, CHK, CAU, but Not just yet, Not on list yet) (also note, more depr. Techs, and Asian-orienteds) We shall see, but Only "if and when" these "set up" properly, technically, as buys, at some point (with the required high-volume catharsis, etc.)....but I am watching those all.... but some are Not ready quite yet....especially those still hitting new lows, as I said above !!! Best EVB"s may be in section (3) above....Also, note, now MARG, BROD, REGI., PHV, IKN, join, CLCX, RMDY, PSSI., GEN, as already being UP a bit, off their recent-past EVB's, as I predicted in my "essay" "How to take advantage of Big Down Gaps on the Long side" (read it to learn the valuable pattern), and in my recent past NL's here, which teaches you how to do this, and shows examples of such chart patterns....this concept of mine really has worked well, very often, in recent years past....so, DO note the growing list of potential EVB's....this is logical, after market drops like we just had, yes ? please realize, as good as I and my "PSYCLE sm" have been at these EVB's, I never purport to be able to catch "THE" bottom on anything/everything....as I teach, we just try to "get close", always diversifying, with stops, not overpaying for options portfolios, etc.

7) other, still extended/potentially Toppy, "Puttables", near recent highs Only, L.T., in-the-money Puts Only, Diversified, w/stops if patterns abort to the upside, for potential drops towards their 200 DMA's, or lower:
"recent Puts buys from section (3)" above, plus:
added, CBTSY, LHSG, SPLN, BOOL, CMGI., DOW, GNE, MCK, PTX, CCB, SKO, DST, FHT, JNY, MRK, RAL, CPL, BAC, BSE, CMS, TRB, WMT, SDG, WWY, ITW, EQ, LU, to, SLOT, BPOP, ISYS, FSA, ASO, TWX, CCL, AEH, TLC, REP, MAY, MCK, NYT, ZLC, STI., CVS, DG, and, again, the recently bought-puts-on stocks in section (3) above, the last 4 NL's, as Puttables, near their highs Only....But, Not yet, in, HBOC, FORR, BBBY, WCOM, MNMD, PSUN, ICIX, VMSI., KNDL, GPSI., NTAP, GVA, LFG, FNF, MWD, SSW, taken Off list, before "put"... again, many are already down off their highs, and, as I teach in my "How to do Puts" essay, and, it is therefore a little too late to "begin" buying those. Note, some of these are SV.S.T. "hook" tops, ripe for falls towards their 200 dau MA's, and few great rolling tops still, even though they are still puttable....br> ....The best Puttable Ind. Groups continue to be among extended Financials, Techs, Retails, Housing, Communications, Media, Consumer, stocks (again, the problem, as I begin my NL here, is that many have already dropped from their highs, and we never "chase" down in puts, once they are down from their highs), and, now, add, some Drug stocks again, Blue Chips, Utilities ? ....and issues are quickly removed, when/if they break above their potential rolling top formations (as above)....If one properly diversifies, and only does L.T., in-the-money puts, this is rarely a problem....but I do "pull" stocks off lists quickly, when they break the patterns, and you should, too....we will catch plenty of VG puts in the months ahead for you (we already have, yes ?).
....note, recent Puttables list is a real mish-mosh, with no real outstanding Industry Group messages....this differs from the situation March/April, when mostly the Health-relateds and the Rails, etc., showed many similarly toppy issues simultaneously....this time, it was/is more broad, dig ? But, I continue to find more Puttables, which says something, as might the utilities looking a bit worse. Read my "essay" on "How to exploit the Downside in Puts" for deeper coverage of this phenomenon, and info. on which Options to buy, how much to pay, etc. (as with calls, and all options, min. L.T., in-the-money, diversified, ONLY).

8) "PSYCLE sm" Lesson for today:
Since these are my first few NL issues, of many future "Lessons", initially, besides the lessons gleaned from my past commentaries above, and from my 6 (six) "essays/booklets", I think the next Lesson to learn, today, is, that, taking occasional cut, small losses along the way, will rarely hurt a properly diversified portfolio....CNU, Continucare, from 5, to 6 +, to 5, then breaking here possibly, is an example....NO emotion....we just move to another....yes, it HAD a VG depr. base, but we want NOT to have "bigger" losses....as a broker for 20+ years until I quit recently, I noticed, in perfect "PSYCLE sm" behavior, that clients tended to retian the memory of large losses, forever, throwing it up in the broker's face, forever, even when their portfolios did well....this is a form of "conscious hurt" which hurts their FUTURE potential, because, no matter how well every other stock they have does/did, they will always have that one big loss to "use" against the broker (or, if they made the decision to buy it in the first place, and/or NOT to cut the loss when they should have, as probably recommended by the broker). Also, more damaging PSY-chologically, (as i cover at length in my essay on Mastering the Psychology of trading) their inabiltiy to make each decision mutually-exclusive of past experiences, will mean, they will either cut too many future losses too quickly (overreacting in the future), or, "trying to get it back in that stock because it hurt them" behavior, when other stocks are better to "make that $ back in", dig ? My "PSYCLE sm" is still a PSY-chological helper: I just learned to DO what the Patterns tell me to do, and remove emotional traps, etc., without harboring past experiences, of no future decision-making help....If that sounded a bit like you sometimes, CHange the way you consider such ocurances...it is often cheaper, to sell/cut loss, and even buy back, than it is, monetarily/mentally, to create bigger losses for your portfolio, by refusing you are wrong. I admit my stocks mistakes all the time....it's just that I normally have many more gains, to more than overcome any small, cut losses, over time.

Therefore, as I keep saying, it is better to buy some stage 1 "PSYCLE sm" stocks, in depressed patterns, and have occasional, small, cut losses, than to never do that at all....Similarly, it is better to TRY some "puts/options" this way, near their highs only, when suitable, than to never do any...."PSYCLE sm" stocks tend to move much more INDEPENDENTLY of "external" stuff, than "the 95 %" incorrectly believe....one does Not "need" "events" to happen, in order to exploit normal, probable price moves....this is a Good thing....Also, try to learn about "baby-with-bathwater" selling action, like we had recently....Note again, I began adding some depressed "Asians" and "Techs", above, in sections (3) and (6), as potential EVB's soon/here. Again, one must also learn to make each investing period independent of past periods' results....another PSY-chological item to master....in other words, just because a certain idea did not work the last time, does Not mean it won't work, the NEXT time it sets up properly....you must learn to make each purchase/sale and period, mutually exclusive, of all past actions and experiences....just because you lost last time, in that particular stock, does NOT mean to never trade it again when it sets up properly (one of the many PSY-chological hindrances I solve for you in my "Mastering Psychology" essay). This is a PSY-chological process, as people tend to fear things they are unaware of, have not studied, or know little about....Part of this whole process, is learning to CHANGE some of (y)our possibly incorrect/damaging behaviors/beliefs, to make this a simpler, and more effective way to predict and exploit future stock price moves, more often....so try to enjoy this whole experience....do not expect riches overnite....it takes "some" time, but is certainly worth it....

*** So, if you are "new" to my NL, and need ideas to buy long, or put, stocks "now", as long as their current prices are right near those given in Section (3), that is where you find "do-able Now" ideas....and, Sections (6) and (7) are also longer useable lists, when/if those issues might set up properly as longs/puts....you can also always refer back to your "Guide" to my NL, which will have been sent to you soon after you subscribed....obviously, this NL is a "work in process", a true lifetime learning tool for you, and not an "overnite junk NL", and I want to do my best for you....we are just beginning, and you will be receiving a ton of useable, learnable, specific information from here, and in my "essays/booklets", and in future special reports....thanks again, and spread the word.

*** (Note: I share "so many" ideas herein, for two reasons: 1) to give you a more "Complete" picture of what is happening, worth knowing, and what might be done, and, 2) because some stocks/options given may be more "illiquid" than others, I share so many more, similarly positioned issues, so that more of my valued subscribers will be able to properly diversify, in various portfolios, for various objectives, etc. i.e., If I just gave out only a few stocks, some people would not be able to create Options Portfolios as easily, nor diversify properly, right ? Plus, by viewing many issues' patterns, you will learn that much more quickly, yes ? I share ALL applicable stocks ideas which befit different "PSYCLE sm" stages. But Only, maybe 5-10-15-20, maximum, stocks are "worth acting on" at any given time, as per section (3) above, and, in sections (6) and (7) if those issues are also properly set up, near their lows, right ?)