U.S. Market Psychology (New High New Low Ratios)

NYSE 88/11----Strongly Bullish
NASDAQ 115/78----Slightly Bearish
AMEX 19/11----Slightly Bearish
Bulletin Board 38/277----Strongly Bearish
TOTAL 260/377

Current News Psychology

U.S. Economy–Modestly Bullish
U.S. Markets–Slightly Bullish and Volatile
U.S. Events–Neutral
Foreign Economy–Slightly Bearish
Foreign Markets–Slightly Bullish
Foreign Events–Slightly Bearish

Calendar Psychology

Selling The Losers (good shorting opportunities) 31 December 2001
Buying The Well Known Winners (good one day long opportunities) 31 December 2001
Buying Strong No-Name Winners Starting 2 January 2002

    Upcoming Economy Reports

(Monday) 31 December: Chicago PMI at 10:00 a.m. (The Chicago Purchasing Manager's Report has strong psychological importance, and 50% marks the breakeven line between an expanding and contracting manufacturing sector.)

(Wednesday) 2 January 2002: Auto & Truck Sales at 12:00 noon (lower average psychological importance) NAPM index at 10:00 a.m. (the National Purchasing Manager's Report is of strong psychological importance)

(Thursday) 3 January 2002: Construction Spending at 10:00 a.m. (of low psychological importance because of monthly data volatility and large revisions of the report after it is released)

(Friday) 4 January 2002: Average Workweek, Hourly Earnings, Nonfarm Payrolls, Unemployment Rate, all at 8:30 a.m. (These 4 reports make up the Employment Report and are of very strong psychological importance); NAPM Services at 10:00 a.m.

Holiday Psychology

Buy The Winners which are being slightly sold off (at the end of the trading on 31 December) in anticipation of selling following rising prices after the holiday.