If you are already knowledgeable about "PSYCLE sm" tenets, and/or just want the most current "actionable" stocks, go right to Section (3) First....then, to see longer lists, and potential ideas, go to sections (6) and (7)....of course, if you want to get the most, for the least, read everything....and, re-read the past NL's "commentary" items again (section (2) each time), to glean/learn more about the "feel" for probable tops and bottoms in things....

1) "PSYCLE SENSE sm":
This, 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, but more, to show YOU, as Newer 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....I follow-up every idea mentioned, for your benefit....most other NL's leave you hanging, yes ? Know, that there are 3 (three) kinds of stocks listed herein: 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 when 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 "sold" or "removed", for your benefit. Try to find charts which have 200 DMA 's.

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", a forward slash, then that date, then "letter.html" , ok ?, as in, " /81398letter.html " , " /81798letter.html ", etc., got that ? every Mon., and Thu., after 11 am, PST, (2 pm, EST), for now....they may on occasion be available as early as 10 am, pst, if I can finish them earlier....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. Taking the time to Glean the message, is much more important then the medium, yes ?

second: Please appreciate, how much time/effort I put in, 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 have been putting more actual "learning items" into each NL....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....many EVB's may form "W" bottoms ahead, read section (6) below....also, note, due to recent cracks in many depresseds here, have either, cut Q, small losses in some (no harm, in a properly diversified portfolio, and , again, do NOT "worry/overemotionalize/extrapolate recent past perfomance forward forever PSY-chologically/make this a bigger occurance than it is", etc.), and took some stocks off pot. long buy list, as they broke potential patterns.... no biggie, yet is does make the potential buy lists smaller and more manageable here, yes ? Gosh,. I hope you cut long losses, and bought some PUTS, recently

fourth, Been telling you, this "Split" market, has now given us many more nice Put gains, but we are still playing close to the vest, meaning, keeping close stops, and NOT getting emotional nor excited, cutting Q, small losses, nor with big Puts winners, and am continuing to hold/raise some cash....For the umpteenth time, "the market" is neither "the indexes", nor an important "thing" to even be concerned with....Note how, recently, the daily changes in "Averages" are often meaningless --- they often tell us NOTHING about what is really going on WITHIN the markets, do they ? Only by following all the individual stocks WITHIN, visually, can one come closer to knowing what is really happenening, and what best to do, yes ?

Important: Remember, again, as I told you, early in June, that any "new highs" in the DJIA and OTC, or other "indexes", were going to be quite UN-confirmed by the internals (A/D, and H/L figures), and hence, have lead to our recent predicted drops....And, you have now seen the recent corrections, as expected, in many extended stocks, that I gave you herein, yes ? (many stopping, at least initially, around their 200 DMA's, yes ?) Of course, I am also upset with even the small cut losses I gave out, among some depresseds....BUT--- and this is crucial: please do NOT "label" any corrections as possibly a "bear" market....who cares....just try to do what the "PSYCLE sm" says, and ignore "market talk"....and Re-read my booklets, as to why all "labelling" is Harmful to your psyche, and your performance....

Also, please do Not let any "Q, S, cut losses" among 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 !!! But when/if their patterns crack/break, they are removed very quickly, as you know....

Remember, we do NO "market average/index predictions," ever....but, I expect you to notice, for instance, when I have added a lot more Puttables, or a lot more Longs, as a template, for gleaning the tambor of the "overall market". When some depresseds began to crack, and I have added more Puts, that should have told you what was coming, yes ? Logical, relaxed, simple....watch those 200 Day Moving Averages (200 DMA's)....

So, "pick your potion(s)," First, from Section (3) ---then from sections (6) and (7), long and/or short side, for cash, or on 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 next exist in the early Fall, after the rallies after this decline ?

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

a) Important Industry Group notes: interesting, that, since some "high-priced, name" issues have had S.T. tops, as I have been saying, the depressed "land-based" (pun intended) groups, like, Energy and Oil Services, Metals, both Precious and non-ferrous, and "Basic Inds.", like, Steels, Alum., Copper, Chem., Fertilizer, etc., continue to "try" to shape up....hmmmmm ....it may still take a while, but I am watching them closely....again, only those which do NOT make new lows, right ? new lows, and we are OUT. Patience.

Please do view 1-year-past charts, of these depr. Techs. I shared herein, and see their recent "bases", to learn further from: KLIC, WDC, KLAC, SEG, LRCX, JBL, NN, BDE, at least....Also, see many Retail stocks which I gave you earlier herein, near their highs, as Puttables, are continuing to have further Drops....also, note the very recent drops, in extended Cable stocks, of which I seem to have been among the very few to add as Puttables here for you....Wall St. still loves them, yes ? please re-read my booklet, on mastering Ind. Group Rotation....

b) Well, one of the most overrated supposed "timing theory" around, Richard Russell's supposed "Dow Theory", finally came out with a "Sell" signal, a "Bear Market" signal, on Aug. 8th at the close, around 8487 DJIA....Given more time, space, and charts, I can disprove this "theory" dozens of times over, this past century (and/or at least show it is not even close to being consistent or valuable enough to warrant trying to use at all), but, so many unenlightened people and pros, love to try to follow this supposed timing theory, to no end, but, then again, 95 % of all people waste 95 % of their time following items of little or no D.U.F.P.P. value, yes ? Anyway, as briefly as I can put it here (this is covered more in my booklets) there are ALWAYS "divergences" among indexes and averages, yes ? I mean, when are ALL indexes EVER in full synchronicity ? Never. Therefore, breakouts/breakdowns in some, are always going to be accompanied by confirmations/ nonconfirmations by others, right ? So, sometimes, the Trannies break, and/or then the Dow breaks, and/or the Utilities, and/or the S & P, and differing subsets of Ind. Groups thereunder break, oy....anyway, his supposed theory has a dismal actual track record, historically....tons of fits and starts, diverging, iffy, inconsistent signals, and, by nature, even when somewhat correct at times, always late, only bearish AFTER some drops, always bullish AFTER some rises, and NEVER getting signals in "PSYCLE sm" stage 1 or stage 4, even when close to being correct at times, if at all, and, just plain less than 50 % reliable, over decades....also, it does not account nor adjust, for changes in the composition of the averages, but enough....

Also, think about the fact, that the supposed "Dow Theory" does not even include the NASDAQ, a humongous market....should anyone even be publicized when their concept does not even include the NASDAQ ? Last, this concept got, and remained, quite Bearish, AFTER the 1987 crash (as most other NL's also did, incorrectly, while MY actual published newsletter got real bullish from Jan. 1988, when I began my last "PSYCLE sm" NL, but I digress), for years....don't get me started....suffice it to say, of all the "things" to listen to or let into our brains, the D.T. ranks way down the list, in historical fact, dig ?

Meanwhile, a V.S.T. chart of major indexes, shows a V.S.T. triple-bottom formation, at the close Friday....as I suggested, the 8200-8400 area, and similar levels on the other indexes, also represents normal V.S.T. support from previous upside breakouts in January, as well as being around their 200 DMA's.

c) Speaking of incorrect supposed "Linkages" (re-read my booklet on "scenarios /linkages), note, that, seemingly, both, Energy, and Chem. issues may be bottoming ....Yet, Wall St. has historically pitted one against/opposite the other, right ? (similarly to the Oils and the Airline stocks, but I digress), since, supposedly, Chemicals are made FROM raw materials like Oil, right ? So, Wall St. has always said, that, for instance, the Energy stocks "should" move opposite the Chemical stocks, because when the price of Oil rises, the profits of Chemical companies supposedly falls, and therefore, their stocks should move opposite each other, and vice-versa, dig ? Well, as my "PSYCLE sm" teaches:

1) what the stocks of such companies do, cannot be directly/obviously/simply "linked" to earnings (whatever "earnings" are, but don't get me started there), and/or, 2) most companies can raise/lower prices on what they produce, and/or, 3) most modern corporations can adjust overhead, and/or hedge, and/or lock-in, future prices in commodities....and, if so, mitigating S.T., or even L.T. effects of such prices/movements, yes ? This makes this whole "linking" exercise useless, a waste of your valuable time and brain-space, and a very valuable thing to know, from a "PSYCLE sm" point of view....Bottom line: again, individual stocks, and Ind. Groups, will set up, and move, much more Independently of other stocks and groups and "the market", than "the 95 %" incorrectly have been led to (mis)believe, historically. Energy and Chemical stocks CAN move together, at times....Let the chart and behavioral patterns tell you/us what to do, instead of trying to create endless, changing fundamental "scenarios" of what "you hope should/might happen if certain other things happen." OY. Do what the patterns say to do, not what one wishes/hopes/wants to do....Last, this kind of futile "scenarioizing/linking" also relates to PSY-chological weakness, which I cover in my booklet on Mastering the "Psychological patterns" of behavior.... re-read it also.

d) GPS follow-up: CNBC, Bob Pisani, 11:20 pst, played right into our hands: he said, "Gap Stores has anaylsts tripping over themselves, raising earnings estimates here." Wow, was that another great "PSYCLE sm" Put signal, or what ? He also said, "Cisco has a built-in base (support) here around 94." huh ? CSCO was 21. in 1997, and 47. less than a year ago, and is still right near its high (where I added it as a Put recently, right ?) How could any stock with this chart pattern have a "base" way up here ? amazing....another Put, right near its recent highs only, with a close stop, just like DELL there.

e) KWHY- TV, ch. 22, L.A., 8/14 at 11:10 am, pst: the regular woman reporter, upon seeing a rising L.T. S & P price chart, which is recently close to cracking below its' L.T. uptrend line drawn, asked an analyst, "you're the second person today to suggest the possibility of more than a S.T. correction....yet, I see this L.T. chart, and it is still in a L.T. uptrend....how can you be bearish ?" wow. I figure, when/if we break lower, later, after indexes are still lower, THEN she will say something like, "now I see we are in a bear market", too late, dig ?

f) L.A. Times, 8/12: evidently, only 19 % of all stocks, still, are directly owned in/by "mutual funds", the rest by institutions, pension funds, foreigners, and individuals....meaning, perhaps, mutual funds still do not play as large a role in "propping up" markets, as asumed by the pros and "the 95 %", even as the pundits continue to say, that, "we cannot have a bear market, because people continue to put more and more money into Mutual Funds, containing corrections".... Well, a 1996 study by the Investment Co. Institute found, that, more money still flowed into Funds than was redeemed, in 9 of the 12 market corrections, between 1944 and 1990....obviously, that money, and buying, did not prevent those corrections, dig ? As evidenced by the big drops in tons of "Techs" the last 1-2- years, they being mostly favored by individuals and Mutual Funds, Stocks Can Fall, even as tons more money is put "into" them, and/or into M. Funds, yes ? Learn: just high(er) "volume" alone, is NOT of D.U.F.P.P.V. in stocks.

g) I.B.D., 8/17, p. A 23: article entitled, "Market Makes Vitamin Stocks Look Sick" also shows the value of learning my "PSYCLE sm" timing....the pattern never changes--- only AFTER "we" already predicted, and got, big declines in the stocks listed (GNCI., RXSD, WFMI., specifically given in my NL's near their 1998 tops), only AFTER they fell a bunch, Now, the Media reports "bad stuff", dig ? How many times do I have to show/prove this to people ? Also, realize, Wall St. and the Media, loved these 3 stocks near their tops, right ? Lesson learned again.... And, reading some recent earnings "disappointment" reports, reminded me, how ridiculous it always sounds, when companies "blamed higher expenses and lower revenues" for bad earnings....duh....don't get me started.....

h) and another in a long, line of ambiguous, late, messages from major brokerage firms: I.B.D., 8/17, Goldman, Sachs, just lowered its rating on MGIC, from "global priority" to "recommended", as the stock fell more than 10 % in one day, to $ 45....note: this was Another 10 % down, since it was already down from its $ 74. high....now, let me get this straight: the stock fell Another 10 %, and was/is already off 40 % from its high--- and, only NOW, they are are supposedly downgrading it--- but then, isn't currently "recommended" still a positive rating ??? And people still pay those guys tons of money, for hopefully timely research. Mind, you, this is the same story for most ALL major firms, not just G, S....

i) notice, we got a takeover, where the "taken over" stock FELL, not rose, as predicted here....WMX, in stock swap, with EESI., and EESI., which I specifically gave you here earlier, also, as a "PSYCLE sm" Put, from 35. to 27 (S), then again from 35. late last week, to below 30. this morning (sow), even as they get "taken over". Neat, huh, what one can sometimes glean by viewing the CHART PATTERN and Ind. Group patterns.....glad to have helped....for the upteenth time, the chart patterns and removal of emotions, etc., are way more important to master, than any "fundamentals."

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)