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To: Poet who wrote (34842)	3/16/2001 4:10:06 PM
From: jambo-bwana	Read Replies (3) \| Respond to of 35685

Poet, regarding capitulation The idea that there has to be capitulation defined as one of those huge down days with massive volume is a bit of a myth. Sure it can occur that way but some of the longer bear markets are those where there is this continuous grind downwards, a relentless process which drives those who are long to a point of exasperation. In between there are rallies - sometimes sharp rallies - which cause people to believe that the end of the bear market has been seen and then the decline resumes. When the bear market finally comes to an end, people are disbelieving thinking that it is one of those false starts - except that finally it turns out to be the real thing. The best way to visualize it is by viewing the recent bull market in reverse. We had sharp sell-offs which were thought to be the end of the bull market but then it resumed its upward trend. When the end came most assumed that it was just another one of those sell-offs. The psychology of markets is fascinating. Have a good weekend.

To: Poet who wrote (34842)	3/17/2001 6:47:46 PM
From: Don Pueblo	Read Replies (1) \| Respond to of 35685

That was some short covering on the day trades. We are right at that support level on the COMPX I spoke about some time ago. My long-term short account is doing unbelievably well, up over 50% year to date on a total of 10 trades, the worst one was a break even on NVLS where I got shaken out and couldn't get back in at a good spot. Makes up a little for the long account, which has suffered because I went into CSCO too early and did not bail out of CMGI soon enough. Got back into CSCO at 18 5/8 and I will probably hold it no matter what. And I have not counted two open short positions...I saw something on the RMBS chart on the 13th and shorted it at 36 1/8. Also shorted JPM (double hump sell signal) at 53 on Feb. 7th and added to that at 51 on March 8. I'll probably lighten or close out both on Monday or Tuesday. I'm going to go long on dips now, with very tight stops. I may go long on RMBS. <G> You know my method, you can see what should happen next week on the QQQ chart, eh?