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Prices were above the line almost all day, but twice they turned away
from the 1275 level.  That appears as though the Street is looking at
that as an "over-priced" resistance level.  Still they closed up
modestly, a little under that level.  And volume stayed active, up +23%
above average.

In one of my IT trade press publications I ran into a good idea for us
as investors.  Rahul Merchant, head of Merrill-Lynch's global business
technology group, demands presentations from his line reports be just
one page, with just 4 or 5 bullet points of what he has to do to enable
them to implement their decisions.  I know what he told them: "You are
responsible for your decisions, for making sure you thought the whole
thing through and made the right decisions.  Don't bother me with, err,
'stuff' I don't need to know."

We should be thinking our investment decision making through so
thoroughly we can reduce the decision down to 4-5 key, critical points.
If not, we don't understand the investment well enough yet.  Let me try
it out on a few of mine:

- Index 500 Fund
        . Core of major American businesses
        . Companies selected for position and diversification
        . Dollar denominated
        . Long-term stability, juggernaught

- Emerging Markets Fund
        . Coupled to 3rd World economic growth, decoupled from USA
        . Currency & stability risks
        . Higher growth rates

- Small-cap Value Fund
        . Decoupled from "Big Business" trends
        . Less susceptible to market corrections
        . Higher risk/reward profile
        . Smaller "appreciation premium"

I'm thinking about:

- Healthcare Industry Fund
        . Demographics
        . Risk of government intervention
        . Fund restrictions
        . Past trends may not continue

I guess I'm missing an issue or two.  I like this idea.  It provides
better focus.  Give it a try.  No, "I think it will make me money,"
isn't allowed!

 Price    Vola-    Momen-   Volume   Oscil-   Summ.
 Change   tility   tum               lator    Index
 -__+     -__+     -__+     -__+     -__+     -__+

 __<_     |___     __|_     <___     __|_     __|_     12/28
 _<__     |___     __|_     <___     __|_     __|_     12/29
 _<__     |___     _|__     <___     _|__     __|_     12/30
 ___>     |___     __|_     ___<     __|_     __|_     01/03
 __>_     >___     __|_     ____     ___|     01/04

Timing Signals:  I don't use or recommend timing signals, but they're
fun to watch.  If I did though, well, I might use something like this.
(Be warned!!  It tends to whipsaw around signal points!)

Last Signal: BUY        Date:  01/03/06 S&P:    1269
Winner or Loser:  tbd                   By:     tbd

See my market tracking charts for '03-'04 and my investment strategy
study at my website(s):
http://www.xprt.net/~pgrogers/Pers.html
http://www.geocities.com/paulgrogers/Pers.html




Paul Rogers, paulgrogers{at}yahoo.com                       -o)
http://www.angelfire.com/or/paulrogers                   /\\
Rogers' Second Law: Everything you do communicates.     _\_V

... We have standards and expect you not to exceed them.
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