Jim Goodman's "The Right Side of the PSYCLE sm"
Stocks/Industry Groups Timing Newsletter/education service, issue # 13, dated: 10:00 am, PST, Monday, July 20, 1998

(Save all my Cumulative missives, for future reference and educational help....these each tend to run about 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....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. Plus, after reading a few NL's, you will already be aware of most stocks from the recent past, and, therefore, have the choice of not/watching them again, if you are not/are looking to trade those stocks, right ?

1) "PSYCLE SENSE sm":
My new newsletter (NL), and educational services, are a "Continuation" of previously recommended stocks/ideas, for the benefit of the people who are also coming over from it's Previous incarnation, to also 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 L.T. 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, all my "essays".

Important: Remember, I am pretty Comprehensive, herein....Know, that there are 3 (three) kinds of stocks listed: a) Stocks that can be taken advantage of, here and now, if right near given prices, b) Stocks which, if they get back to where they were whwn originally suggested, remain/become tradeable again, and, c) Stocks which "seem to be setting up as potential trades, possibly soon", and might also illustrate Industry Groups potentially shaping up, as Educational ideas....Try to "view" the past 1-year back charts of all ideas, for best learning of patterns....all ideas are followed up till "removed" or "sold", for your benefit.


FIRST: IMPORTANT--- until further notice, the online URL, to get all future NL's, will be, first, "the URL for my main web page", then add, each successive time, as a "suffix", forward slash, that date, then "letter.html", ok ?, as in, " /71398letter.html ", then, " /71698letter.html ", then, " /72098letter.html ", etc., etc., got that ? every Mon., and Thu., after 11 am, PST, (2 pm, EST), for now....Hope this helps....obviously, only subscribers will get this 'code', and, down the road, I am examining changing this format, so non-subscribers cannot figure this out, etc. Gleaning the message, is much more important then the medium, yes ? Also, I have been invited by radio station KFNN, in Phoenix, to do a call-in show appearance, Aug. 22, I think, and i will let you know more, later....If you know other Media and Financial sources, newspaper, magazine, TV, radio, people, you think enough of, to contact, to suggest that my "PSYCLE sm" output be covered on/in them, Please let me know.... Thanks....ideas timed like this deserve National exposure, yes ? Please let people around you know, about what I offer....thanks....

second: Please appreciate, that I work very long and hard, to put ALL applicable staged stocks, long-side and put-side, which befit learnable, and actionable, "PSYCLE sm" patterns, into every single NL....Some times there will be fewer ideas, sometimes, more....whatever I find that best fits "PSYCLE sm" stages, which YOU can learn/take advantage of, for YOUR trading/educational benefit.... again, the "most actionables, now/here", are in section (3) each NL....

third, hope you notice, I put more actual "learning items" into last NL, which, I think, was my best so far overall....re-read it....remember, even my EVB's are not "one-day bottoms"....EVB's can take days/weeks to form, and, as long as those issues do not form new Lows, those stocks remain aok....and, that I added a ton more ideas today, which, if you understand what I am saying here, exacerbates the "Split" market, for us....

This "Split" market, exploitable in BOTH directions simultaneously, which is a Good thing. While I am still giving you, both, Long-siders bouncing, and some Puts issues falling, it is still a bit "sloppy" right here, so am still playing close to the vest, meaning, keepiong close stops, and NOT getting emotional nor excited, even with winners....For the umpteenth time, "the market" is neither "the averages", nor an important "thing" to even be concerned with.... Important: Remember, again, Any "new highs" in the DJIA/OTC, or other "indexes", are going to be UN-confirmed by the internals (A/D, and H/L figures), so keep that in mind....Also, please do Not let any "Q, S, cut losses" among Puttables (or Longs) recently, prevent you from taking advantage of present/future ideas.... just a couple of bigger winners (some of which I have already given here, and will continue to give over time) will more than overcome a few very small cut losses among Puts/Longs, in the meantime....the Key, is not to quit prematurely, stay with the concept, learn the basic patterns, be patient, we have just started, and DO "something", diversified, w/close stops, which best fits your various situational accounts needs....Use this initial NL period, to LEARN as much as you can about my "PSYCLE sm", also read All my essays/ booklets, and view/learn their patterns. IMPORTANT: Key: remember, all suggested ideas REMAIN buys near lows, or puts near highs, (only) as long as their patterns do remain intact, even if weeks or months pass !!!

So, "pick your potion(s)," section (3), then (6) and (7), long and/or short side, cash/margin, or only L.T., in-the-money options where suitable, for your different accounts/needs. If you have never done Puts, this has been the time to Learn how to do so, using my "booklet/essay" on How to Properly Exploit Puts, benefitting you for the rest of your trading/investing life, for when/the next intermediate S.T. top, which may best exist in the early Fall ?)

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

a)

b) Other recent Industry Group Comments: Note, added some Extended Autos, as Puttables....and some Housing-related, Banks/Utils./Mtg. stocks topping S.T., as expected ? If true, this means, again, as I have been intimating (seemingly alone, I would add), that some "interest rates" might actually Rise soon ? That would be one heck of surprise to "the 95 %", ay ? Perhaps one should plan on that happening ahead ? If it works, perhaps I will, again, be among the first to say so....again, my assumption is vbased on technicals, and Sentiment, NOT "fundamentals"....

c) re: ICN Pharm., please view it's recent decline....I had given it out, in March, as a pretty obvious "PSYCLE rolling top Put", when I gave out many extended Drug/Health stocks as such, see it ? anyway, it almost hit its 200 DMA at 40., in may, and, recently broke completely, towards 28+, where, if one was long the Puts, from April, one should now take the very big gain (previous 2 supports around 28. also, see it ?)....also, note, the 6 insider sales "cluster" back then....sure, we have had a bunch of very quick, very small Put losses, but, as with the "interest-sensitive industry groups" now, when an entirs I.G. shapes up similarly, as I teach in my "mastering IGR" booklet, it adds to the potential And, as I memtioned in an earlier NL, just as the Media lauded and gave positive coverage, recommending it, early July, at over $ 45., on potential takeover talk--- on Fri. 7/17, the same people ran another article on ICN, reporting the stock "losing ground" on "bad" announcements, dig ? But, of course, by then, ICN was down towards 28+, yes ? As usual, Media is wrong, and too late anyway....

d) Interesting, ergo my recent "Many areas of residential Real Estate in Topping Phase" signal: Mid-1980's, if you recall, many people moved, FROM So. Calif. (and other areas), TO the Pac. N.W. (Wash./Ore.)....after a normal rise in R.E. there, and a drop in So. Calif., the transplanted So. Californians gloated. ....But, Now, with So. Calif. R.E. up nicely since I called the bottom, Jan. 1997, my Pac. N.W. transplanted friends, tell me, (and I read now that) they are not quite as happy any more, since, 1) some areas of the Pac. N.W. have "become kind of like So. Calif. now" (which is pretty funny in itself, but I digress), and, more recently, 2) I read/hear reports, that some big areas of R.E. in Wash./Ore., are beginning to FALL, pullback, as it were....eroding portions of their non-taken paper gains, when/if they bought up there, years ago....hmmmm, interesting "PSYCLE sm" evolution, yes ? Lessons: each sequential Stage of the "PSYCLE sm", by nature, carries/includes, the seeds of the "next stage", dig ? and, there have been very, very few exceptions to the "PSYCLE sm" sequential phases....

e) Newspaper, July 17-20: big article on our Silicon Graphics, showed words, and a chart, with SGI.'s market share "slipping/losing ground, and that SGI> "has struggled/not growing/losses"....but the article then tries to paint a more hopeful future picture...."PSYCLE sm" lesson: note, my concept put you into SGI., in its depressed base, at 11+, early June, using only technicals/sentiment, yes ? "INTO" bad/negative fundamentals/reports, yes ? But, now, the day the first less-than-terrible article appears, SGI. stocks hits 15. already....ALREADY UP, as I teach, dig ? Of course, I cannot infer future performance in SGI., but Calls options bought my way, have doubled already---without needing any "positive news". And, if one is a shorter-term trader, one can now "sell into this news", for a very quick, big % gain, dig ? ....Oh, and, the same way you viewed HON and EK, please also view chart of MCD, for similar pattern....see the longer saucer it had ? this is another reason why only long-term, in-the-money options, diversified, are the best way....

f) Very Important: Know, that, there are Two (2) kinds of "PSYCLE sm" timing signals: One, the probable bottom/top signs, for an Industry, Group, Sector, or a "product/concept/investment area" or a "news item"....and Second, the actual buy/sell signals, to buy/sell/put specific Stocks, near certain price levels....This is REAL important to Learn, and take advantage of....Timing larger "things" (like, say, Real Estate, or, or "Basic Industry Stocks"), obviously is a "feel" thing, taking some time to occur, as such items (like a collectible/fad, for instance) tend to form "rolling tops", and do NOT just go, from up-to-down, on a dime, right ? Previous momentum and Physics, dictate, that an item must first, go NEUTRAL, before changing direction, right ? (that's why EVB's/bases/saucers form !!!) That's why I keep saying, "just get close" to knowing, and doing, what I put out, as I teach to do it, while lowering one's need for instant movement, step back, gain perspective, and steadily, over time, do much better, with patience and confidence.

g) In a rare front-page story, the O.C. Register newspaper, July 18, headline: "Market surge ignores slowing earnings", pointed out the increasing narrowing of stock price movers, and deteriorating breadth, as I have been mentioning here to you all along, as well, etc. Anyway, within the article, it says, "investors are not letting eroding earnings scare them out of the market." Well, think about that....By "PSYCLE sm" tenets, people are not SUPPOSED to be scared, near tops, yes ? They are ususally only scared AFTER drops, near Bottoms, yes ? So, this article is, again, telling us NOTHING of importance, and certainly not reporting that, historically, this is nothing new....They, instead, report it "as" something of import, dig ? Misleading, and pretty useless, as usual...

h) July 17, L.A. Times, reports of "sizzling heat continues to threaten supplies of Corn, Wheat, Soybeans" etc. They then "say" it "sent Corn, Wheat, and Soybeans prices sharply higher". While this may be true only down the road, they then show Wheat futures 2.73 up only 4 cents, Corn 2.37 up only 6.5 cents, Oats up only 2 3/4 to 121 3/4, and Beans up 12 1/2 to 642....yes, up, but NOT "sharply" .... we'll see how the next several days/weeks unfold, price-wise, with these commodities....actually, viewing their charts in Newspaper, until the last few days, their prices have been in a pretty steady DECLINE, for Months now !!! Gee, if "summer heat" supposedly causes higher prices for such commodities (which, as we have seen, is NOT as true as assumed), then, given the "recent past heat", how could their prices have been falling, INTO/during a "sizzling heat" period ? Please re-read my 2 "booklets" on "How (not to) use Media", and, more imortantly, "How (not to) use Scenarios/ Linkages"....do it. Again, a while from now, when/if all these commodities are up a bunch, I will report an update this to you, but, unless/until that happens, again, please try NOT to just blindly accept all the financial media reports/infers/says....As taught, they too often "make stories where none exists". And, today, CBNC suggests this story also, and actually shows clips from "The Grapes of Wrath" movie to illustrate what, I don't know !!! They also then threw in "el nino" and, now, as I told you they would begin to say, mentioning "la nina", and, the "Kondratieff" stuff which has also mislead millions of nice people the last 20+ years....and, of course, yet another in a long line of incorrectly suggested parallels to the 1920/30's (I don't know where they get THAT from, either, but I digress), we have seen since the DJIA was 1,700 after the '87 crash....gee, perhaps just "filling story time again with sensationalizing"...

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):
SOLD: bal. puts ICN (50+ to 30+) for Huge % Gain....calls CPU (15+ to 21+) for Q 125% Gain....1/2 pos. calls SGI. (11+ to 15) for VQ 90% G.. ..calls ICST (13- to 17-) for VQ 85% G....puts JCI. (60+ to 53-) for 55% G.... stock DEN (1.93 to 3.37) for 70% G....and, Puts, CSCO, NLCS, CCB, HH, and, Longs, SWW (6- to 7+ to 6-), EOG (19 to 24 to 18), KMAG (5+ to 6+ to 5+), ESOL (3 3/4 to 3 3/8), CTU, for V Q, very Small losses....

and, while I still continue to give you some large % Puts Gains, even into a non-bearish market, our bunch of Puts losses have been each VERY small, each, as usual, by actually Viewing all past-year chart patterns on "Hypothetical completed" trades, you will hopefully "see" what we are looking for, to exploit, for probable declines....Remember, we "PSYCLE sm" traders have NO emotions, especially where cutting Q, Small losses are concerned....These very quick, very small losses we have taken are of no consequence, in the big picture.... financially nor psychologically....You can always also go back and view previously "completed" trades from previous NL's, to "see/learn" more, and this also illustrates why one must Diversify, buying at least a Few suggested ideas, at all times, right ? we are in this for the long haul....this approach keeps you in the game, for when those big gainers occur for us...."just get close", as I teach.

* 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, 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: (note, more/new names here): TMD @ 12+, IKN @ 14-, GEN @ 17 1/8, DGN @ 15, SAMC @ 9 1/2, CDT @ 20++, BCU @ 5 13/16, CLN @ 11 3/4, TTX @ 2 3/16, MKG @ 29++, TIG @ 23, OXHP @ 14 7/16, IO. @ 17 3/4, RFP @ 2 5/8, PAASF @ 8.06, CCLR @ 4.06, CCH @ 5/16, GRO @ 15, TOX @ 5/16, OWN @ 14 1/8, CIR @ 15++, QSII. @ 6, N. @ 12 9/16, MADGF @ 4 5/16, TDW @ 32-, SRM @ 13 1/4, RYC @ 30-, POT @ 74, RDRT @ 8 3/8, IKN @ 13 1/2,........ some of these are "repeats"....some are new....and/but, Important: took, CTU, IGL, off pot. Long buys list, before "bt.... Important: note, I try to give "something for every type of objective", i.e., including real cheapies, and $ 5-10. stocks, and "names"/blue chips, straight cash stocks, marginables, optionables, etc., so all my valued subscribers have choices, and for proper Diversification ---all still having similar, exploitable patterns, in each NL.

Important: unless issues are listed specifically in section (3) in a NL, they may NOT be buys right here....remember, a valuable part of the "process", is that we have "actionable right near here now" stocks (section (3)), and also, "watching for hopefully becoming ready to buy near lows in their depressed patterns soon" stocks (section (6)).... Section (3) is for Now, Section (6) and (7) is for soon/later and learning....be sure to read the "BDG/EVB essay" (and all 6 booklets) offered....very inexpensive, yet extremely valuable for learning timing/ patterns....oh, also, note, besides a bunch of Depr. Techs, the recent potential long Buys list, while growing, is a real mish-mosh, with fewer other real clear "industry Group Rotation" signals, yet....except, maybe, as some Basic Inds., Cyclicals, Alums., Copper, Fert., Papers, Energies/Service, issues may hold their recent EVB lows down here (see below) ? But many of those still need "work" technically, though, so am watching them, for when they set up better....

Remember, part of the "PSYCLE sm" has always, been, that, when I am correct, I will often be among the very few, or even the first, to "see" potentially emerging/deteriorating issues/groups....and No One Else is even remotely mentioning the type of depr. stocks I.G.'s, I am, as potential longs yet, dig ? Usually, I am able to find several I.G.R. issues to exploit, like the "Basic industries" and "depr. techs" and "healths"....regardless, we'll still also buy other individual issues Long, even if not in I.G.'s where others look the same (nd some Puts, yes ?)....read my booklet on "I.G.R." again....I just do notwant you looking back, 3-5 months from now, wishing you had had the emotional/PSY- chological strength to buy some of these EVB's Long, diversifying, w/close stops anyway, for protection.

New Puts: LHSPF @ 62-, GPSI. @ 39+, SKYT @ 25-, TCAT @ 60+, AMES @ 28-, GDYS @ 28+, RXSD @ 38, XYLN @ 29, CCB @ 112, ABS @ 53-, DTE @ 41-, SYY @ 26-, LAF @ 40-, MTX @ 54-, MHK @ 34, AFC @ 66+, TOL @ 30, VCI. @ 39+, CATP @ 57+, COFI. @ 35+, CKFR @ 31-, FON @ 74, F. @ 60....

IMPORTANT: and/but, took, more, BOOL, IDXC, MGL, AJG, CKR, ATK, CTL, SKO, off pot. Puts list, before "put", and/but, took, CTU, IGL, off pot. Longs list, before "bt.", 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 suggested stock will break its S.T. umbrella top, or depressed base/double-bottom/EVB pattern....I am assuming, if you View it's recent chart/action, before you consider buying any/those issues' Puts, you will see/know this, and therefore NOT buy that company's puts....this takes just 10 seconds each to check/do, and will keep you from buying Puts/Calls on issues which abort patterns....just trying to help....

....and/but, we just Missed, EMLX (wow), TXB up, ALSC, PMTC, AMAT, CYMI., NSM, SHG, CTC, NEM, PKX, OMI, SK, NA, AA, PD, CD, IP, all given you here as potential Longs, near recent "EVB" lows, and, PMCS (wow), BRK/B, GDW, GPS, ITW, ED, as puts near highs, among recently given you here stocks....I will always tell you here, also when we "miss" actually catching suggested ideas, so you can "see" their patterns, for your benefit/education....
Also, seeing many more puts/longs here "missed", also tells us, the market is providing more tops/bottoms, at that time, right ? So this also helps us know the nature of the market at any given time....that's why it is important to consider ALL my output, each NL....means obviously, most 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, and "Basic Ind." stocks WILL bottom ahead, and we will be there when they form better bases/"EVB's"....some already S.T. bottoms, others just Not formed/ready yet....
As I said, it may still continue semi-rough for a while yet, in some long-siders, but we ARE seeing many bounces as predicted herein, in the depr. issues I have given you....Again, while the Media "worries" about "earnings" impacts of various crises, the STOCKS of the companies involved will likely BOTTOM, and rise, even as "lower financials" are announced, right ? So, we'll also be watching for this ahead....small, cut losses will not hurt us, regardless. And, by buying "some "PSYCLE sm" long-side stocks" down here, we should make some money regardless, yes ? This is already happening for us.


 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., so stick around:
(Remember, I folow-up every single idea previously Hypothetically "in"....Note, a whole bunch more Long-side winners lately for you: SKM 8 1/8 up 3/4, CDT 22 1/4 up 1 7/8, PLL 21+ up 1 5/8, TDW 33 1/4 up 1 1/2, MT 27 1/4 up 1 3/4, NSC 31 1/4 up 1 3/4, GEN 18 up 1, CUM 56- up 2, POT 77- up 3, QSII. 6 3/8 up 1/2, QNTM 22 1/2, ELY 20 1/2, SGI. 15 (sos), FCX 16 3/8, HMY 14+. LQ 10., up/further, since last time here....also, note, VOL, TOY, KLAC, revalidated, so I got "whipsawed", which, as I teach in the "BDG/EVB" booklet) does happen sometimes, near the lows, and, also, see, KEG, like, CHIR, bounced back up to where it broke down from....
....
and/but, then, BDE 3 11/16, then 2 7/8, ISSI., AOI., MADGF, KMET, QNTM, SMSC, OXHP, RDRT, TIG, CIR, PNF, BMC, SWW, TLK, RFP, PPH, JBL, pb (pulling back)....again, please do not be afraid of buying the "Real Depressed stocks", even in qualified plans/pensions accounts, with stops, diversified....and again, you must buy at least FEW, always diversifying, 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 2,000 issues....maybe 5 or 10, long-side, 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....

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

* and/but, these already assumed Longs, must strengthen,
and/or are sales on strength ("ms/sos") :
MADGF 5 up 7/8, PTEK 9 1/8, SMOD, LIPO, FTPS, THDO, SMSC, OAKT, OXHP, CADA, ELCO, WKGP, DIMD, MATH, NETM, CCLR, ISSI., ICST, AXC, DGN, TAC, TIG, RYO, NVX, BLM, NUE, RYC, AOI, CS....

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:

(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): LHSPF, CTAS, SPLN (sow), MHK, BOCB, GPSI., CNWK, CBSL, AGI., TCAT, COFI., DSL, REP, CCE, Utils.... of course, if you did not buy any Puts in these, in this section, near their recent highs, when I gave them out, you can choose not to view these/their charts, unless you want to see/learn their patterns....also, note, PFT, given here at 41, hit 44, then Monday, fell, to 36 anyway....same with DL....also, note, WCII., BUR, SGE, THI., also fell further/anew, as well....the power of the "PSYCLE sm" formation. And, I had previously given THRX and AFCI., as nice Puts, before I began this NL....check how they did from their "PSYCLE sm" highs...

....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. BOOL, IDXC, MGL, AJG, CKR, CTL, ATK, SKO, (also see recent past NL's here) took Off potential Put list, before "put". (view their patterns to see what aborted Put patterns look like).....

(again, I give you 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"....also, remember, we do NOT "chase up".... if an issue is ALREADY up appreciably off its bottom/base/low, we do NOT buy it here....we wait for bigger pullback, or choose others instead, right ?
bases, "techs": SMSC, SHVA, PTEK, SIII., IIR, CS,
bases, "health": OXHP, LIPO, CCLR, TOX, MKG,
"in other industry groups": no great bases here, just EVB"s: among more depr. Farming/Fertilizer-relateds (BCU, PLP, GGC, GRO, POT), Prec. Metals (ECO, GSR, RYO, CCH, NEM, and "cash Gold" itself may be finishing left side of a depressed saucer soon ? watching it....), Oil. Service (MDCO, LSS, LOM, TDW, HLX, but, Not if they go to new lows here), Cyclicals (CUM, FCX, EX, N.), Steels (NUE, BIR, PKX), as "Basic Inds.", are improving technically....as I said, "Papers" may take longer to bottom better....a potentially important occurance, given internal market history. (And also, LQ, ROC, GTR, SKM, BMC, TLK, VTO, as "depr. Asians/ Foreigns/Techs", but most are already up....I did miss the "Foreign Closed-End Funds", I also mentioned in previous NL, like, APF, IIF, KF)....again, most are very depr. Techs. (Please also see EVB's, below), but, as I intimated, it is just Not a "super great" long-side list, here, but, there are still plenty more EVB-type bounces still likely, to buy, regardless

....And, 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 (nor, from late '95 to early '96), because they do NOT have bases here, just good EVB's, as with the others....and, am I, again, the first to "see" EVB's in some depr. "Techs/Asians", "Basic Industry", "Health", "Farm/Fert." issues recently ?

and/but, Important: also, took these Off the pot. long Buy list, Before they might have been Hypothetically "bt.": CTU, IGL, --- took off....also see 2nd section of "EVB's", below)....These/they just need more work, technically, first, and/or are still 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" 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".

NOTE: New Section/List: "Longer-term Depressed Bases": OXHP, QNTM, SHVA, SMSC, CYMI., CCC, CS, remain o.k., when/if bought Only right near their Lows, with stops below, diversified, etc. One can also buy Only L.T., in-the-money Calls Options, where suitable, on these....some people like these for pension plans, or longer-term trades, but, when/if they breakout, they can rise, longer/more at times, dig ? Please view their 1-and-2-year charts....see it ?

* And, also, these are still, current, or, Potential, "EVB's", as "BDG's" (read that booklet):
remembering ONLY to buy near their recent Lows (do not "pay up" much), as "EVB's", diversified, w/close stops below, added, TMD, ECO, AMD, APD, GSR, AHG, CXY, TAM, NTN, NEO, EY, to, ATML, KLAC, ISSI., GRO, CDE, NTN, CYMI., CCC, LSS, CLN, NSC, USI., IKN, TTT, SRM, TIG, ELCO, VVUS, ISSI., TTX, MKG, MT, CCA, GRO, FCX, BMC, CIR, DIMD, DGN, PLL, IDTI., GTR, BCU, GEN, ELY, JBL, SK, CY, MT, IO, and, the stocks listed above....(note, some are double-bottoms, some have V.S.T. bases, but most are EVB's)....also, note, some EVB stocks may form S.T. "W" patterns down here....but, most EVB's are "V" patterns, on huge volume, but they also can be a "W"....some just take a bit longer to form, as per my "BDG/EVB Booklet" examples ....which is fine, since we are NOT doing "overnite" trades, right ? also note, some EVB's have been improved, from "watching" list, to the actual "EVB" list, yes ? last, remember, do NOT "chase up"....

But--- Important: others previous, like, PAIR, RMDY, DANKY, KLAC, MAVK, ALSC, SAMC, SYQT, FPAM, TRID, LFB, CDE, SFT, CDG, TER, CHK, PHV, AHG, CAU, WTT, BGO, SRA, GOU, BLM, TXB, MDM, VC, IP, are still No longer listed here, even as "EVB's", and were Removed from list, Off the list, before "bt.", as you know.... Why ? Important: some are still hitting new lows, and/or many of these EVB's need to form Longer depressed BASES, chart-wise, from dead-cat bounces, and/or show the "huge, cathartic volume needed" to fulfill the patterns....makes sense, yes ? As always, be sure to properly diversify.

(and also watching -- and this list is also growing, dig ? --- add, ANDW, FLH, LOM, SRA, IDX, to, PMTC, VNTV, QSII, OFIS, VTA, NSM, CDT, ARW, ADPT, RDRT, EAR, VIAS, PRG, PPH, BDT, GML, AXC, SOC, WCS, TTX, SEW, PKX, RFP, DEN, ELY, VTA, AOI., CIG, IOM, GFI., CD, IO., as "EVB's", but Not just yet, NOT yet, as they all need more work, technically....(also note, adding still more depr. Techs, and Asians, and, as I said elsewhere, more "Basic Industries" issues). We shall see, and/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 these all....but some are Not ready quite yet....especially those still hitting New Lows, as I said above !!!

Also, see, how, DURA, MANU, SNRZ, BROD, PHYC, REGI., CLCX, PSSI., GEN, MAN, are already bounced UP a bit, off their recent-past-given EVB's, as only I predicted in my "essay" "How to take advantage of Big Down Gaps and EVB's, on the Long Side" (read it again 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, and expected, after market drops like we just had, yes ? Please realize, that, as good as I and my "PSYCLE sm" have been at these EVB's, we never purport to be able to catch "THE" bottom on anything/everything....as I teach, we just try to "get close", always diversify, with close stops, not overpaying for options in portfolios, where suitable, L.T., in-the-money only, etc. Remember, these EVB's are still likely to be 2-3-4-month trades....

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, AMES, ABS, DRTE, GMSTF, GDYS, OCENY, FORR, NOBE, INTU, FORE, VISX, AMCC, COF, DTE, HGR, KEA, GPS, RAL, MDT, ITW, RNB, UTX, LAF, MTX, VCI., LEN, NFB, KRB, MBI., EE, NU, C., F., to, LHSPF, CATP, TOL, SBGI., BRK/B, BBBY, CKFR, TOM, FON, TCAT, XYLN, RXSD, ELNK, GDW, BCE, SYY, YHOO, QTRN, SKYT, COFI., GPSI., EWG, AFC, SBL, SDW, ICIX, TMC, BLS, REP, AWA, CPL, CMS, BSE, WWY, BJ, ED, and, again, the recently bought-puts-on stocks in section (3) above, the last few NL's, as Puttables, near their highs Only....some are "EVT's" ("exhaustion V (hook) tops", the opposite of EVB's, get it ?), some double-tops...a little clearer, yes ?

Puttables list growing, even as "Long-side" list growing, again, illustrating the "Split" market. Note, more Retails (GDYS, RXSD, AMES, NOBE, BBBY, ABS, GPS, TOM, VCI., BJ), and Financials (COFI, BRK/B, RNB, COF, CCB, GDW, AFC, KRB, NFB, MBI.), and Utils. (CPL, BSE, DTE, CMS, ED, NU, EE), "Media" (GMSTF, ELNK, YHOO, TMC, BLS, FON, VCI.), plus, of course, Comp./Techs, now included. Again, I am trying to put these into general "industry groups", where helpful.

and/But, just Not yet, in, (also see names of "removed" stocks, in recent past NL's): BOOL, IDXC, MGL, AJG, CKR, ATK, CTL, BCE, SKO, all taken Off potential puts list, before "put"....remember, we do NOT buy puts, when/if issue is still making new highs....yes, we will miss "some" right near their tops, but by waiting for double-tops and/or umbrella tops to form better, we will have fewer small cut losses, and we will still catch plenty of Puts over time, with less stress.... again, when/if an issue breaks out immediately after I add it, I remove it, period. You must please check the recent charts of all potential Puts ideas, takes less than 10 seconds each, to make sure they have not broken out.

The best Puttable Industry Groups Sectors, continue to be among extended Financials, Big-name, high-PE, Techs, Retails, Housing, Communications, Media, Consumer, Utility, Health, Airlines, and, on a rally, the parabolic Internet stocks....and now, perhaps, seeing some Extended Foods, as toppy soon ? Interesting, the groups are broadening, dig ? Again, 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 not a problem....as you can see, I do "pull" stocks off lists quickly, when they break their patterns, and you should, too....we will catch plenty more VG puts in the months ahead for you (we already have, yes ?) Read my "essay" on "How to exploit the Downside in Puts" for deeper coverage, and info. on the Patterns, etc. (as with calls, and all options, min. L.T., in-the-money, diversified, ONLY).

8) "PSYCLE sm" Lesson for today:
Besides all the lessons you hopefully have gleaned from all my past NL commentaries above, and from my (six) "essays/booklets", the next Lesson to learn, today, is, to view each side of the stocks market, separately, and independently. In other words, seeing individual charts of each stock, as we do, allows us to see all the probable tops, and bottoms, regardless of any real or perceived "external" factors....Remember, that even S.T. "sayucer" formations, take some time to form.. ..and, often, I initially, just see the potential for the LEFT side of the saucer to bottom, hoping for the rest of the saucer to form, over time, dig ? When and if the cathartic high-volume comes, and then others in their industry group confirm, those stocks are promoted, from "watching", to, maybe, "EVB's" (section (6) above....if they fail to form, or make new lows, it takes longer, and are removed before "bt." BUT, realize, "the bottom" in a suacer, will sometimes BE "a new low" (think about it....a saucer, by definition, must have a "low" at the bottom)...so, we either take a shot, especially when/if its I.G. confirms, or, we wait for a pop-and-a- pullback, before buying....the "pb-after-a-pop" helps us keep from "paying up" as I taught you, or buying too quickly, only to fall prey to the pb therefater, when a stock forms a base....I never pruport to be able to catch every "V" bottom. ...that's not the point to learn here....it is much more important, to "do all the other things right", and "just get close" to bottoms and tops, long and puts....Last, once the stock forms the full base, or full EVB, then you will likely see it in section (3) above...hope this helps you even more.

Therefore, as I keep reiterating, It is also still better to buy "some" stage 1 "PSYCLE sm" stocks, in depressed/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, any small, cut losses, will be more than overcome by larger % Gains, over time, off those EVB lows, if one properly Diversifies....Similarly, it is better to TRY some "puts/ options" the opposite way, near their Highs only, when suitable, than to never do any....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 price moves....this is a Good thing....Also, try to learn about "baby-with-bathwater" selling action, like we had recently with the Techs/Asians. The Key is to have the strength to Buy, when there is a "scary story"....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 (buy then ? a pun, get it ?), it is/will be too late....One must buy into NON-sexiness, NON-positiveness, when the patterns are aok, right ?

*** So, again, 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/learnable 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 ?)