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To: sun-tzu who wrote (136123)	11/28/2001 6:19:30 PM
From: sun-tzu	Read Replies (1) \| Respond to of 436258

Swenlin 11/28... <The Enron/Dynergy merger deal fell through today, and Enron (ENE), a Dow Utility stock, a stock that was trading above 90 just a year ago, dropped to the 50 cent range in anticipation of the company going bankrupt. While it had a P/E of around 80 at its high, I can recall how well regarded this company was not too long ago. Perhaps we will hear a condensed version of how this could have happened. We have to wonder if the explanation will include the word "criminal". To be sure we haven't heard the last of this or the repercussions yet to come. The market finally cracked today, although it is still only a minor crack. The reason given was that there was no good news in the Fed Beige Book release -- as if anyone expected there would be. All the buzz about the bad economy suddenly surfacing seems fishy, like we're supposed to start thinking about it now. Short-term indicators are now relatively oversold (VIX, CVI, STVO), and the Arms Index was over 2.0 today, so there is a good chance that we'll see the market close up tomorrow. Short-term rising trend lines have been violated, but the important one is drawn across the September and October lows, and it is still intact. If that ones cracks, we may have a chance of a decent correction. At this point we could be looking at the 10-Week Cycle trough as of today or within a few days. Whether that means up, up, and away remains to be seen. A decent correction in the next few days will take us below the rising trend line. Then we could have things develop as they did May/June, which would mean the top is in and a real correction/retest is underway. Let's wait for the trend break and snapback.>