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To: Les H who wrote (3703)	11/25/2002 5:26:39 PM
From: Les H	Respond to of 29601

What to expect now. November 25, 2002. Things got overbought last week when the S&P broke above the recent highs of September 11 and November 4 and 6. The breakout of November 21 appears to be valid as the volume was higher then the previous highs going back to the September 11 high. Because of the Thanksgiving holiday this week, the volume may drop off some. If the S&P go into a minor consolidation as the volume contracts going into Friday, a bullish scenario would be present. Most of our momentum indicators are overbought for the short term and a consolidation into Friday would make since her. After the consolidation, we are expecting the S&P to take a run at the August 22 high near the 965 level. That would equate to 97 area on the SPY. We are long SPX for mutual fund purposes at 933.79. We sold our long position in SPY at our 3:30 Eastern update today at 93.93 for a ½% gain for the anticipated pull back. The Nasdaq Composite touched above the previous swing high set on June 28 at the 1487 area and then closed below it on near equal volume. This condition implies that today's high will ultimately be exceeded at some point. However, for the short term the Nasdaq failed to close above the June 28 today and that implies the market will have a pull back and go down and test the breakout area near the 1420 area n the Nasdaq and 1080 area on the NDX. We are watching the 27 level on the QQQ for a possible buy area. Volume should be light as QQQ pulls back to this support. Volume should shrink as Thanksgiving comes closer. Ideally we would like to see the QQQ, NDX and Nasdaq pull back to support as Thanksgiving becomes closer as volume will be most likely be light and that would generate a bullish signal. We are watching the 27 area on the QQQ as the next pivot low. Flat for now. We added to our position in BGO (11/14/02) at 1.00 and have an average cost near 1.05 now. There is still a chance that BGO could pull back near the .85 - .80 level before bottoming. We are not trying to pick the next low in the gold stocks but rather buying position on pullbacks. DROOY (we are long from $1.06). We sold ECO at 1.12 on (9/30/02); (we were long from .92). The graph on HL (long from 1.04) is not what we like to see and therefore we sold this position on 9/23/02 at 3.90 for a 375% gain. We remain bullish on gold stocks for long term. marketweb.com