The Deen's List(TM)
A service of Deen Capital Management, Inc. (www.deencapital.com)
Vol.1 #79           Thursday December 11 2003

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Market stance: BEARISH (since Dec 11 2003)

************************* Market Timing Alert **************************

Yesterday at the close, my NASDAQ Timing Model (Ver.6o), one of my two
primary market indicators, gave a bearish signal, based on a "double-
top" chart pattern in the NASDAQ Composite.  There were two peaks,
three-and-a-half weeks apart (Nov 6 and Dec 1), at the same level
(within 0.7%), and, after the second of the two, the NASDAQ began to
sell off on heavy volume.  That's a double-top.  Already, the NASDAQ
has fallen 4.3% from Dec 1 to Dec 10.  A 6% to 10% drop would not be
surprising.

Because of this signal, I am turning bearish, at least on a short-term
basis, today, Thursday, December 11.

One of the trading rules I adopted last year was "When bearish, sit on
100% cash".  Right now, we're about 87% cash, as I already sold most of
our stocks earlier this week.  We have only two stocks left.  As I write
this, both stocks are up.  I am delaying the selling of these last two
stocks on the grounds that they are rallying.  But unless I return to a
bullish stance in the interim, I am expecting to sell both of these
stocks within the next few hours or days.

On the other hand, the background story fueling this year's bull
market -- the newly found growth in both the economy and in corporate
earnings -- is still very much intact.  For that reason, I am expecting
that this correction will be relatively brief.  If I had to make a
guess, I would say that the bull market will resume sometime between now
and mid-January.  And I expect to return to stocks quickly when I see
evidence of that happening.

-KD

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************************************************************************

Ken Deen
Deen Capital Management, Inc.
PO Box 30925
Santa Barbara, CA 93130
(805) 682-1870
deenslist@deencapital.com

Copyright (C) 2003 Deen Capital Management, Inc.