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To: Lucretius who wrote (202947)	11/6/2002 10:43:12 PM
From: Les H	Read Replies (4) \| Respond to of 436258

Didn't Greenspan tell the Japanese to let the crap companies sink? also: Spears Report: Breakout Time Executive Summary “A convergence of a number of short-term bullish factors make the market bulletproof for at least another week.” That’s what we said last weekend and it was prescient. The rally we anticipated started late on Friday and should continue this week, led by Microsoft. Targets are 965-1000 for the S&P and 1500 for the Nasdaq. Cognizant (CTSH), Ebay (EBAY) and Ryland (RYL) are buys as specified. Detail We characterized the market as ‘bulletproof’ in the last Weekend Update and that proved to be accurate throughout the week, as the market shrugged off one piece of bad economic news after another. The broader market (S&P 500) stayed in the narrow trading range we have been charting, between the 50- and 100-day moving averages, while beaten down tech continued to out-perform. Nvidia (NVDA), highlighted in Pro on Friday morning, was our star player that day, up 18% in a very tradable rally. By ‘tradable,’ we mean that the intraday action was not so erratic that it would shake us out (trigger normal stops) before going higher. Columbia Sportswear (COLM) and Symantec (SYMC), on the other hand, were more volatile and we got whipsawed out of otherwise good positions at the open. That is the drawback of trying to trade in a very news driven market. We have been expecting an upside break out from the trading range in the S&P 500 but we needed a strong catalyst and all we got last week were bad numbers. Then on Friday, after the close, we heard that a U.S. judge upheld an agreement between Microsoft, the U.S. Justice Department and nine states that gives computer makers greater freedom to feature rival software BUT she rejected nearly all demands for stronger sanctions against MSFT by a group of nine other states. Microsoft leadership quickly endorsed the ruling and reiterated their cooperation. That sent shares of Mr. Softee much higher in aftermarket trading and this morning we expect the software giant to pull up the entire market. Also, after the bell on Friday the Semiconductor Industry Association reported that 3Q global chip sales were up 8% sequentially, which is quite good, although pricing power is weak. Right now, however, fundamentals are not the issue. This is your basic seasonal autumn momentum rally, which should achieve our target zone of Dow 9300-9600 and S&P 965-1000 before year end. Microsoft will be breaking out of its consolidation pattern today and odds favor the rest of the market following in a kind of euphoric, pre- Fed rate cut frenzy. Among the 3 stocks mentioned in the Friday Watchlist: Fossil (FOSL) was up 9% and PetSmart was up 3% while JCOM gave up 2%. Technically Speaking We were anticipating a pullback before the next rally leg began, but it appears that all we got was a horizontal consolidation in the S&P 500 and Dow. This is the chart of the Dow that we showed in the last Weekend Update."