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" we get, near 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, 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 "booklets/essays".

*** on 8/31, we got the "baby/bathwater" action I have taught you to look for, ridiculously bearish throw-in-the-towel sentiment/action, with a probable V.S.T. bottom, after the first hour or two, on Tues. 9/1....a rare, perfect "scalping time", I told ex-clients to "just close your eyes and buy Something on my list, if those stocks are still right near recent lows, in a base or an "EVB" long, with close stops at that time....also, obviously, we saw the normal "front page scare headlines", another "PSYCLE sm" S.T. bottom occurance, etc. So, I recommended also taking Tons of profits off the "Puts" table, and began dippping our toes into the Long-side again....Remember, we are NOT ever trying to predict "Indexes" themselves, just taking advantage of normal, usual, "PSYCLE sm" patterns in Individual stocks, right ? NO emotion, NO "scenarios/stories/linkages" (re-read that Booklet)....But you really gotta learn how to do many "Puts," as I teach, for the next times....of course, many people missed 4 months of large % Puts Gains already, and is now too late for most.

*** also LEARN THIS: though we may "miss" some "EVB's" here, know, that often, in market mini-crashes, the specialists on the floor must "take out the lows", to "shake out" the last "scared holders", by breaking many EVB stocks, even below recent lows, and getting even good traders negative at those times, dig ? As a result, a) we will often get S.T. rises into a "vacuum" for a few days on many, and, b) often, it is better, in the bigger "Perspective" (read my Booklet on that, with "Scenarios") to "hang in there" rather than capitulate, at times like Monday's lows....In any case, I still prefer to see much higher volume traded, in our potential EVB stocks, before I will buy, and, then, still, only near recent lows....so, we may miss some, but we will still catch some, Long, at these kinds of times....most of the very recent bounces off lows are VERY normal....as I have suggested, current long-side patterns are similar to those after the 1987 crash, on a smaller scale, so far....backing-and-filling, the masses confused, etc.

Important: Remember, I am pretty Comprehensive, herein....I follow-up every idea mentioned, for your benefit....most other NL's leave you hanging....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. Learn the chart patterns, then add the "sentiment" patterns, and voila....Puts in march/April, Puts in July/August, and Q, large % Gains in depresseds in between, with some small losses in long-siders, of lesser consequence....

FIRST ---IMPORTANT--- except for next Tuesday, until further notice, the online URL, to get all future NL's, will still 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, " /83198letter.html " , " /90398letter.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 ?

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/feeling 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, nor make this a bigger occurance than it is", etc.). no biggie....I hope you cut Long-side 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 also still playing close to the vest, meaning, keeping close stops, and NOT getting emotional nor excited, when 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: Please ask the people around you if they have ever bought Puts properly before....if not, get them to me, and I will help them also, with Puts. ...Remember, as I told you, early in June, any "new highs" in the DJIA and OTC, or other "indexes", were going to, as with March/April, be UN-confirmed by the actual internals (A/D, and H/L figures), and hence, you have now seen the many recent big corrections, as expected, in many previously extended stocks, that I gave you herein, yes ? (with 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 depressed longs.... BUT--- and this is crucial: please do NOT "label" any corrections as possibly a "bear" market....who cares.... just try to do what is "right", 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 performance ....also, note, how the "psychological" nuance of the recent declines, which smacks of stage 5 or stage 6 for most previously-strong blue chips, and stage 7, EVB's, for many now-low-priced depressed Techs, so far....

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 try to DO "something", diversified, w/close stops, which best fits your various situational accounts and needs, especially Puts in the recent past....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", at those times....for instance, when some depresseds began to crack, and I have added many more Puts, that should have told you what was coming, back in June, yes ? Logical, relaxed, simple....always 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":

*** INITIAL NOTE: obviously, with the cash you have made/raised, from either, having held above-average cash balances anyway, and/or having made money in Puts, and/or having properly cut losses from some longs, 1) as happened in May/June, it is now a bit Late, to "begin" to buy Puts across-the-board....the time for that was a few weeks ago....but some will be puttable, but only after bounces towards highs/resistance....2) we still want to look to buy, Long, with close stops, those depr. stocks which have NOT made new lows recently, dig ? Obviously, many are going to be EVB's, up ahead, right ? Remember, I was here, in 1987, late 1990, mid-1994, Oct. 1997, etc., and on a smaller scale, these drops fulfilled most expectations, Tuesday "after the first hour"....

a) Important Industry Group notes: again, Monday, 31st, Bob Pisani. mentions the big drops in extended Retail stocks, which I was, again, the first/only, to give as Puts here for you, near their highs, saying (incorrectly), that such action is "unusual" (it was not), he also said, "I am looking for any news, but cannot find any reason....maybe the market is trying to tell us something..." Unbelievable. Thu. 3rd, CBNC reporter says, "Gap Stores had a super month in August, with same-store sales up 33 % over last year's period...." But, "if" fundamentals automatically worked as supposed "links" (and they do NOT, right ?), than how come my "PSYCLE sm" predicted the big Drop in GPS stock, even though the "company" did so "well"....More proof, that they are TWO DIFFERENT THINGS ...

Note, "on" Monday, and early Tuesday, the U.S. Indexes fell More, than ANY other country's indexes....this, as predicted here, was a nice "catch up" (or, should I say, "catch down" ?) drop, where the issues still holding up somewhat, joined the already-fallen areas, dropping, as I teach in my "Downside/Puts" booklet, you should re-read....and, as I said, must of the drops in "Foreign" issues have already been done, (Asians/Mexico/Latin Amer.) and are closer to actually ending, "into bad/ worsening news", right ?

I also read where DELL, had a mkt. cap. about $ 70. B., yet only $ 150. B. worth of PC's are sold in an entire YEAR, in the entire industry, and that is being generous....also, note as I said here last time, Crude Oil futures forming a decent V.S.T. depressed "PSYCLE sm" base at 13.00 firm, even though many "stocks" of energy companies not yet doing so....some EVB's, maybe, but "bases", not yet....and, no, I don't mind, that I may miss some "Oil Svc. EVB's", because only a "lucky person" would have possibly caught some of those, near their lows, on Monday/Tuesday, and not before, dig ? But we ARE close, on the Oil Service stocks ....also, note, some Depressed Precious Metals stocks are popping, as expected EVB's soon ? Last, are some Utilities, as I suggested last time here, still forming H & S tops ?

b) excellent editorial article, I.B.D., 8/31, page A6: titled, "Followers and Leaders", chronicled a Wharton study of how people, instead of anticipating future moves before they occur, people have, for a century, instead, "imitated assumed actions by others, late", Only acting Ater larger market moves....They found, that , of the 123 times when the DJIA moved by 5 % or more, this century, only 28 could be "linked" (there's that word again, read my Booklet) to "any specific world political or economic event", and, just 2 of the 10 largest moves, could be "linked" to specific "news/events"....forming, what they call, "information cascades", which I cover in my "PSYCLE sm" booklets (Media, Scenarios, Psychology) ....all Psychological studies have found that "the 95 %" imitate, versus exercising their freedom to act before the move, but only with/after "the crowd". Hence, "the 95 %" are followers, not leaders, in markets, even given the plethora of info. available which might help them, which they hardly ever use, or learn from....Last, the article specifically mentions the lack of confidence, and insecurities, which I have tried to help people overcome by learning "PSYCLE sm" Psychologcial and Sentiment patterns....Turns out, even when people supposedly get more "knowledge", they Still do not lead/aniticipate/risk, but almost always only follow/mimick, acting only AFTER trends have changed....Hopefully, I will have helped you in this cause....

c) a related story, from I.B.D. same issue, "Resource America Shows Why Investors Need Exit Strategy": showed how, REXI. had all the "fundamental" signs "go", with analysts and even S & P, reiterating/upgrading bullishness, yet, the stock (which I did not know of, BTW, if I had seen its chart it would have been on the Puts list) formed an extended "PSYCLE sm' triple-top, then fell big-time. Then, they mention how few people use stops, even mentally, anyway, nor even know what the chart pattern looks like while they are in, etc. As I do teach you to know....and, as usual, people had weeks to get out, as the top formed ....The article also said, "denial means your ego is at stake." Wise words.

d) as I said here last time, by end of Monday, we were getting to the "all the bad news has been disseminated (and some end-of-the-world) stuff" stage, and not much more "new, unmentioned bad stuff" was left, for the Media to overreact to.... Again, a late stage 7 sign, S.T., yes ? My cumulative NYSE A/D line, kept by hand for years, shows Monday close at 15,450....past year lows, have been, 12,696 on 7/24/96, 14,444 on 10/26/95, and 12,000 on 5/15/95....if you wish to go back and see how previous corrections fared at those times, check it out....kudos for Ralph Acampora, and Arch Crawford, and even Richard Russell (this time), though none were also bearish in March/April, as we were....NO "scenarios"....NO emotion.

e) a regular reporter in CNBC, Mon. at the close, actually said, "With the DJIA around 8,700, I recently had dinner with 13 hedge fund managers, and all of them were real bearish at that time....and, here we are at the 7,500 level they suggested as a target...." Gee, nice of him to mention that, YESTERDAY, but NOT back weeks ago, at 8,700....you know why ? because financial reporters have little or no respect for hedge fund mgrs., nor technicians....So, the many viewers they might be helping, do not get the information they need to know, at the right time, as usual....

f) a technical, chart note: if you can get some L.T. or Horsey charts, try to view many blue chips as correcting down/across, to many L.T. uptrend-lines, still. ....and/or, to where they broke out above, earlier....at S.T. support at Tues. a.m. lows....in a similar manner, to after the 1987 crash, but, again, as I said, not quite as cheap this time....But, again, see how so many supposedly "safe" "big-name" company stocks, fell a lot, quickly....We try not to ever "label" anything as "safe" or "risky"....only as "stages".

g) our other foray into the land of "seemingly free money takeovers", netted us one huge % gain, one break-even, and one-quick, small cut loss....Now, Ciena at 26, supposedly has a firm offer from TLAB at 37 ?, and, Chrysler at 45+, has a supposed firm offer from Daimler-Benz at 53+ ? Of course, Options would be the way to go on these, when and if they fulfill....but these are NOT formal "Psycle" rec's., just ideas of interest to watch from those prices....You will normally do better, with my other regular rec's., and my special "insider activity" strategy, once I finish that special Booklet, soon....

h) article in WSJ, 9/1, titled, "Mutual-Fund Ads may Not Reflect Summer Downturn": I have always had a problem with the continual deception of many MF ads, showing "% gains peformance figures", as you know....as with all "fundamental items", allowing for "slanting" of whwtever they wish to present to unsuspecting investors....Anyway, this article pointed out, given recent drops, many MF's are going to try to pull a fast one, changing the "period covered" in their ads, to reflect whatever past period of time, where their recent big drops might not cause their reported results to bne "negative", dig ? Specifically, many MF's "had" gains, say, from 6/30/97 to 6/30/98, but, if one just changes the "year/period" from 9/1/97 to 9/1/98 many will have to report LOSSES for the "past year", see ? Not likely....I figure, they will switch, from reporting just a one-year -past loss, to a "last 3-4-5-years gross return", dig ? Gee, Since so few MF's ever sell anything near the highs, nor ever buy Puts for any reason, it should be interesting to see the public's reactions....As I predicted, 1998 would be the first "rough" year since 1987 for most MF's....of course, many "secondary/tertiary stock" and "Techs" funds have already been losing money for 1-2- years.

i) WSJ, 9/1: article titled, "Corporate Buyback Announcements Increase Amid Downturn": neat....they must have read my NL, with many companies "announcing" "potential" buybacks--- but, as YOU know, less than 1/3 actually ever "do" it, right ? As I have taught you, 95 % of all fundamentals and "Statements and Announcements" do Not automatically mean much of ANYTHING, as D.U.F.P.P. factors. ....And, as I showed you, many recent "insider buys" have also been wrong/too early....You gotta use the chart patterns and behavior patterns....they are the ONLY items of supreme import as future-price-predictive factors, as you know.

j) Tuesday, 9/1, CNBC reported that Abbey Cohen, a Wall ST. analyst gal, reiterated her "bullish" stance, as she did at Dow 9,300 , communicating a target of 9,300 by year end....gee, I wish I knew her actual L.T. track record going back years, because, those kinds of predictions do not really help many people, who held/bought "high-priced, name stocks" at 9,300 , does it ? Interesting "Psycle" note: "in" my "Booklets", especially the "Downside/Puts" one, written in April, I specifically said, that "the 9100+ or-so area on the DJIA" would be "it" on the upside, for quite a while, and in most all extended stocks, and that people had better learn how to do "Puts" for 1998 at least....Gee, did I call the top ? Who cares....I gave out dozens of correct Puts, since March/April, regardless....

j) In another shocking case of reporter incorrectness, a gal on CNBC, 9/1 at 10:10 am, pst, was recommending "convertible securities", saying, (quote) "they provide maximum upside, with limited downside"....which, if she knew even the most basic concepts about Cvts., is WRONG....By their inherent nature, Cvts. can NEVER return even close to the upside, compared to the common, when/if the underlying company's stock rises a decent amount....Common stocks must ALWAYS outperform their Cvts. on a decent rise....Cvts. provide "some" upside, with "somewhat lower" risk, but NOT nearly what she said. Oh, and after she finished, no one else pointed out her damaging/misleading statement. Another example of the Media "forcing/creating a story" that is not factual nor helpful to viewers....

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, along with their 200 day moving averages (DMA's) and (Q = quick; i.e, was less than 2-3 months holding period....VQ = very quick; i.e., less than 3-4 weeks holding period) also re-read "the Guide" for how I derive the estimated % percentage Gains I show herein, on assumed Hypothetically closed-out trades, (always assumed to have been in Options, where applicable/suitable, and on margin where available/suitable, 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", all longs near lows, all puts near highs).