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To: GROUND ZERO™ who wrote (5502)	9/29/2001 8:27:48 AM
From: Rich1	Respond to of 8150

To:Agustus Gloop who started this subject From: Rich1 Saturday, Sep 29, 2001 8:15 AM Respond to of 8356 IBD Big picture... The Big Picture Monday, October 1, 2001 S&P, Nasdaq Mark Follow-Throughs Investor's Business Daily Seventeen days after terrorist attacks paralyzed Wall Street, the stock market stood tall Friday. Two of the major indexes confirmed the market’s rally from the wreckage of the prior week’s massive sell-off. The S&P 500 climbed 2.2% as NYSE volume expanded 19% to an above-average 1.73 billion shares. The Nasdaq advanced 2.6%. Volume tailed off in the middle of the session, but turned heavy near the close. The Nasdaq managed to trade 69 million shares more than the day before. The big gains on higher volume showed the market following through on the fifth day of a rally that rescued stocks from their worst week since the Great Depression. Only the Dow Jones industrial average missed out on a follow-through. But not by much. The blue chip index gained 1.9%, just short of the 2% threshold. The sell-off in the aftermath of the Sept. 11 attacks drove investor fear to levels typically reserved for market bottoms. Indeed, the put/call volume ratio spiked to 1.21, among its highest readings ever, as option players loaded up on bearish puts. Bears exceeded bulls for the first time since the 1998 market bottom in the Investors Intelligence sentiment survey. And the CBOE market volatility index shot to its highest level since 1998. The NYSE had its heaviest volume day ever, and even exceeded the Nasdaq, two more signs of capitulation. That rash of sentiment and technical indicators makes Friday’s follow-through all the more interesting. But there’s still work to be done. Few stocks with strong fundamentals are ready to break out. As they set up and succeed, the market’s rally will truly be confirmed. What does that mean for investors? The prudent and proven strategy is to move back into the market carefully. Buy institutional-quality stocks as they break out of sound price bases. Don’t let any losses run larger than 7% or 8%. Investors who rush out on margin and blindly overextend themselves risk substantial losses, even if the market eventually prevails. Not all bottoms are V-shaped, as was the case in 1998. There could be shakeouts or stuttering gains as the U.S. works through its latest economic and political challenges. Despite the ravages of an 18-month bear market, a handful of stocks broke out Friday. Right Management Consultants (RMCI) bolted 2.51 to a new high of 31.05 in six times normal volume. Commerce Capital put a buy rating on the company, which helps other companies process layoffs. Right Management carries an 89 Earnings Per Share Rating and Relative Price Strength Rating of 99, the highest possible. Calamos Growth Fund, which gets an A+ for its 36-month price performance, took a new position in the stock in the latest reporting period. Other breakouts included Itron (ITRI), which shot up 2.67 to 23.02 in heavy volume. Profit growth has been running in the triple digits in recent quarters, although sales growth has been spotty. Drug distributor D&K Healthcare Resources (DKWD) cleared a narrow four-week consolidation, jumping 3.90 to a new high of 47.90 in twice its normal volume.