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Stockscom Alert for Tuesday Jan 4 2005

A Changing Market

Only two days into the week and the new year and we are compelled to warn subscribers of the strong likelihood of further weak performance. The market internals were quite bad on Monday but today they are atrocious and in order not to settle for lower prices, we are assigning new stops that are essentially exits barring an immediate rebound in prices tomorrow.

Now some (perhaps most?) brokers would advise holding on to shares explaining that we investors would be potentially missing the massive rebound by trying to time the market. But the negativity surrounding the past two days has us considering the possibility that this dip might actually be long enough to upset our stomachs if we do indeed stay in. If we never learn anything else about the market, we’ll never forget that the market can stay illogical much longer than we can stay liquid.

Please see the table below.

List of Current Stock Recommendations:

Action Ratings. The following is the legend for designating immediate action
for our stock recommendations. The first is B, meaning the stock is timely
to buy but the case for doing so right here is not overwhelming. Either the
stock may have gotten ahead of itself and may be vulnerable to a retracement or
else the stock has been performing disappointingly but may simply be
regrouping. B+ and B++ indicate stocks for which there is a technical case
to buy now, with plusses adding weight according to how many there are, up
to a maximum of two. Stocks rated H are ones to hold, awaiting confirmation
to buy more or to sell. SELL, of course, means what it says. It seldom pays
to override this designation. In the case of stocks held short, the rating is S where positions should be retained. S+ and S++ indicate stocks for which there is a technical case to add to the positions with plusses adding weight similar to long positions. The maximum number of plus signs is 2.

Stocks marked # are eligible as Canadian content in Canadian RSP funds. Otherwise there is a 30 percent restriction on foreign stocks held in these accounts.

Date of Entry	Name	Symbol	Entry Price	Current Price	Stop	Action Rating
08/23/04	AES	AES	10.23	13.05	12.75	H
12/20/04	Avaya	AV	17.73	17.03	16.75	H
11/08/04	Cryptologic	CRYP #	18.58	22.37	22.00	H
12/13/04	Electronic Arts	ERTS	55.77	59.14	58.75	H
11/19/04	Essex Corp	KEYW	17.69	16.96	16.70	H
11/08/04	F5 Networks	FFIV	42.38	44.72	44.50	H
01/03/05	Immunogen	IMGN	8.96	7.90	7.70	H
11/08/04	Ipsco	IPS #	31.69	46.64	45.50	H
11/08/04	MFRI Inc	MFRI	7.41	8.82	8.50	H
01/03/05	Mikron Infrared	MIKR	13.29	9.90	9.75	H
08/09/04	Pan Amer Silver	PAAS #	13.40	15.00	15.00	SOLD today
09/27/04	Petro-Canada	PCZ #	50.90	49.10	49.00	H
11/05/04	Placer Dome	PDG #	22.12	18.00	18.00	SOLD today
11/08/04	Potash Corp	POT #	73.85	78.83	77.80	H
08/16/04	Suncor	SU #	28.50	32.79	32.50	H
03/08/04	Transcanada Corp	TRP #	21.34	24.70	23.25	H
09/20/04	Vintage Petroleum	VPI	18.44	21.30	20.85	H

New stops in BOLD

* Stop on a closing basis

** Buy if above entry price