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, and/or 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. Do try to find charts which also have 200 DMA 's on them, physically, or through your computer, or on the web. Plenty of free places on the web to do so.

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, " /81798letter.html " , " /82098letter.html ", etc., got that ? all small case letters, no spaces.... 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 actual subscribers will get this 'code', and, down the road, I will change this anyway, and, I am examining changing this whole format, so non-subscribers cannot figure this out, etc. Taking the time to Glean the message, is much more important then the medium, yes ? In any case, look for me to change the "code" early September, to protect you....

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, as I told you, early in June, that any "new highs" in the DJIA and OTC, or other "indexes", were going to be 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 all "market talk"....and Re-read my booklets, as to why all "labelling" is Harmful to your psyche, and your performance....plus, we recently hear many people who did not call the S.T. top, using the word "bear", just at the time when many EVB's form, and are Long Buys, with close stops (see Section (3) below), yes ?

I am also trying to get a "group discount" on long-term, "M. C. Horsey" charts, out of Maryland, so you can "see" the 10-20 year L.T. charts of thousands of stocks, in order to get proper/better historical Perspective of where stocks have been....I am a little afraid, because once you see these charts, you may get scared....but I will let you know....read my booklet on "Scenarios" again....much can be learned/gleaned by viewing L.T. charts at extremes, yes ? Gosh, you should have seen the L.T. charts in 1975, and 1982...wow....there were literally hundreds of L.T. stage 1 bases back then....I got in trouble at E.F. Hutton, in the summer 1982, for putting out a massively Bullish list of "PSYCLE sm" basers, because I saw so many "Horsey bases", unapproved by EFH....but, soon thereafter, they were printing MY predictions for a little while....brokerage firms NEVER like ANYTHING near it's bottoms....and NEVER come out with many "puts" ideas near tops....

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 and 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":

Quick "PSYCLE sm" note: if you know other nice traders/investors, who did not have any Puts In March/April, and have had no Puts in the July/August period, please let me know, and/or get them to my ouytput, a.s.a.p. ....if 4 or 5 become booklets buyers, and/or newsletter subscribers, I will give YOU a free subscription/extension/booklets....and you will be doing them a significant favor, for the rest of their lives, yes ? I am asuming you have had some successful Puts from my output, lately....

a) Important Industry Group notes: the depr. Prec. Metals look to have made an EVB last Wed./Thurs., and notice I added some more real speculative cheapies, for longer-term potential....but, with the XAU itself still making new lows, being very judicious with them.....on Fri., Alan Chernoff, CNBC, 8:30: "the Energies are getting hammered again." But, that was/is not true....they were just pulling back from V.S.T. EVB pops, yes ? How misleading was his comment ? Unless and until more Oil Service stocks break below recent lows, they remain buyable, with close stops, period. See ? as I teach, the Media just has to sensationalize past items as being present, just to "create a story/reaction"....and my new charts show potential S.T. tops in Bell telephone stocks ? and, potential S.T. bottoms, in some cheapie "Laboratory analysis" stocks ? The Street likes the former ones, and hates the latter ones....and, a subscriber pointed out, that I seem, again, to also have been first/only guy around, to have properly given out Ford, Chrysler, and GM, as Puts, just before their recent drops....also view Daimler-Benz' chart. neat.

b) just FYI.: more Indexes technicals: note, thet None, among the DJIA @ 8300+, S & P @ 1055, NASDAQ @ 1315, OEX @ 520, broke their very recent lows, on Friday, very, very oversold S.T., early Friday....also, the Trans. Avg. held, so far, at their "previously broken up above levels" of late 1987, as S.T. support, as I teach in my "Downside/Puts" booklet....Remember, as a general "PSYCLE sm" rule, after drops as we have had, often, when/if there has been "carry-over selling" Monday/Tuesday, after a period like we just had, "after the first hour" Tuesday/Wed., the bulk of the S.T. dumping, if any, often ends, right ? (last time was Wed.) Also, I finally heard, Friday, at DJIA 8300+, the first wonderings in the Media, of whether some people should consider selling some of their long-held mutual funds. Another V.S.T. oversold signal....NOT super-bullish, just too oversold to continue at/given recent rates of declines....Do you know anyone who actually sold their mutual funds in March, or in July, right near their highs ? I didn't think so. Most such holders will not sell anywhere near the hindsight highs....

c) L.A. Times, 8/18: article entitled, "Only 38 % of Stock Buyback Plans are Carried Out, Survey Finds" --- Wow--- a surprisingly well-done article, of "PSYCLE sm" bent, proving, again, how misleading and useless, most "fundamental-type announcements" are, as D.U.F.P.P. factors....Given how 108 companies have made such announcements in just the last 2 weeks (wow), this university study examined 409 such "stock buyback announcements", from 1985 to 1991, and found, that 2/3 of all companies bought less than 1/2 the amount supposedly "planned"....and, amazingly, "38 % of the biggest companies that announced stock buybacks failed to buy back ANY shares during this period"....wow, again. Another good example of a "PSYCLE sm" nuance, illustrating, how the vast majority of "stuff" out there, is either useless, misleading, or "agendized", on purpose, dig ? The masses hinge on every item disseminated in the Media, but those items rarely ever help us directly predict future stock price movemements !! (how many times have I said THAT ?)

LEARN THIS: as with "earnings" numbers, companies can, and do, say and slant whatever they want, any way they want, to try to create whatever reaction they wish--- and NOT always the truth....of course, this should not be news to you.... Just another in a long line of hypocrisy and deception by many corporations.... Anyway, the conclusion of this L.T. study, was that most of the time, such "buybacks" never fulfill/happen in reality after the announcement--- that they are most often, just announced as, often, "symbolic", feeble attempts at trying to maintain/create shareholder confidence/ interest, dig ? They also found, that such announcements have NOT been having the desired "stock price pop" hoped for by such companies, either....so there....The article said, "the figures call into question conventional wisdom that buybacks justify higher stock prices, as a sign of mgmt. faith that a stock (might be) undervalued." Interestingly, the many corporate executives I had as clients over my 20+ years as a broker, tended to tell me, they always viewed "buybacks" as a "cop-out", when companies cannot justify investing that money into their own business, which, they said, should yield they more money than buying their stock with corporate cash, opinions always made sense to me, but I digress. Last, now, the S.E.C., which probably should have investigated this phenomenon earlier (but don't get me started on them) is now evidently, beginning to examine this....re-read my booklets, on Media, and Scenarios....

d) Absolutely amazing....I have been hearing CNBC reporters continue to ask interviewees about the market, the same question, since the March/April "PSYCLE sm" highs: "So, what would you buy (long), or should people just go to cash on days like today, with big drops ?" But, they NEVER, EVER, ask, "what Puts options should people buy ?" So, people like you and me, will continue to make money, on/in all decent drops, while "the 95 %" just lose money during those periods. But I must again give some kudos to Ralph Acampora, as I said before, for being the first major B-firm head technical guy, to at least acknowledge the tops we have foreseen....

e) CSCO/DELL/extended Internet stocks update, from a "PSYCLE sm" p.o.v.: repeating, ss I have been intimating recently here, when and if those kinds of stocks "did" happen to make new highs, not only would they likely represent "tokens", they would also represent a "hook" which gets/keeps the unenlightened, in, long, as most other stocks decline, dig ? I also explain this phenomenon in my booklets. Also, Sunday 23rd, I met two 30-something recent-year-fortunate traders at a Laguna Beach haunt, who, both, said, they were buying CSCO, DELL, MSFT, even here, because "every time they pull back, they always go up again, and split, and never go down...." When I told them perhaps they needed more historical perspective, and maybe they should learn how to do Puts, and how to "buy low", instead, from here, they looked at me like I was from another planet. ....more stage 4 behavior ? Note, a bunch of extended stocks in those industry groups do remain on my/the potential PUT list in section (6) below....

f) U.S. Dollar update, from a "PSYCLE sm" p.o.v.: with seemingly everybody continuing to talk about a "strong(er) dollar", if one just views a 3-year chart of the USDX commodity contract, chart, my "PSYCLE sm" suggests, a "rolling top" formation, at least recently, in S.T. stage 4....As I have been saying very recently, what if the Dollar is topping, instead ? Wouldn't that remove another of the "linkages" which "the 95%" insist on hanging their bullish hats on ?

g) speaking of "linkages", why are so few major Financial people/Media mentioning our "yield curve" being "Inverted" (i.e., S.T. interest rates above L.T. rates), which, historically, has almost ALWAYS meant LESS -bullish behavior in stocks during such periods, going back decades ?

h) "Housing Industry" follow-up: again, Fri., CNBC interviews more "housing industry people"....gee, as with any financial asset item topping, as I was first/ only to predict recently, and I have taught you to look for, there seems to be the normal, "see ? see how great things are/have been in our industry lately ?" type of Media treatment, that occurs, when ANY area is near its S.T. stage 4 top area, yes ? Recent weeks have seen many more such interviews with R.E.-oriented people, compared to almost none, in early 1997, when I called a S.T. bottom (and a L.T. bottom, in So. Calif. residential R.E.). Again, this is the kind of "sentiment" signal "PSYCLE sm" traders/investors have learned to recognize/take advantage of when/if they do occur....also, L.A. Times, Thur. 20th, a glowing R.E. economist said, "one could hardly imagine a better environment for new-home construction" ....hmmmm....this kind of statement normally occurs in, you guessed it--- stage 4, "famous last words", right ? Again, rolling tops are processes....

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 2-3 months holding period....VQ = very quick; i.e., less than 3-4 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 available/ 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).