To: Rande Is who wrote (44380 ) 1/3/2001 9:52:56 PM From: Rande Is Read Replies (5) | Respond to of 57584 Important Read: . . . . . . . . My View of January . . . . . . an excerpt from "Looking Into the New Millenium" post from Dec. 29th. So while I would naturally lean toward a margin liquidation squeeze the first week of January off December holidility, we simply did not get the "set-up". Had we seen strong upward currents as late as yesterday and today, I would have stayed with earlier prediction of a downward week next week. But with all this pressure, I am REVERSING my earlier prediction!! I now believe that we will go back to the "Burst Effect". If you recall that type of market manipulation, it goes like this. . . .we get sideways or slightly downward movement in the indices, while the highest growth stocks top the Point Leaders boards. Then seemingly out of nowhere, and right when fear is at a peak, to keep the Individual Investors from taking part. . . we get a 200 to 300 point BURST in the Nasdaq. Growth-related Techs go back to being high-fliers, though they fly far lower than in prior years. . . and there is no immediate follow-through. And because there is no immediate follow-through or sustained rally, Individuals stay on the sidelines waiting for some magical signal to sound that would tell them it is time. Guess what. That signal will not sound. There will be no warning. There will be no immediate follow-through, IMO. But we must consider that historically we have 10 days before a second rally day is considered a follow-through rally. It doesn't even need to be in the same week! So while we move sideways and lower as the earnings are released, I believe we will come to certain "key" days, where a Yahoo or a Ciena type will blow away the street and cause a VERY brisk BURST rally. The sad part about burst rallies is that the rally part occurs overnight, meaning there is no "jumping in". My prediction for January is that the top 5 trading gain days on the Nasdaq for the month will account for 90% of the monthly advance. I believe we will end January over 2800, perhaps even 3000. However, it will be 1 step back, 2 steps back, 1 step back, 1 step back, 7 steps forward, 3 steps back, 1 step back, 1 step back, 5 steps forward. So the going will seem to be sideways, but if you pull back your view of the Naz chart. . . further. . .try 60 or even 120 min. . . . that's better. . . . and analyze from December 21, the rally will become more evident. Rande Is