Cover short stock index futures at the market on the open if you used them as suggested to hedge against the risk of a more significant market fall. If you used the Dow Jones futures, there will be a small loss as a result of the unexpected bid for Union Carbide. If you used any other instrument, there will be a small but worthwhile profit.

Today's immense reversal is powerful enough to indicate that we probably
have completed a selling climax, and that the apparent breakdown in the
Russell was a bear trap. Using the S&P as a proxy, price held at the important June 4 low as well as the perhaps even more important 40 week moving average, equivalent to the widely watched 200 day. The daily chart stochastics got about as low as they ever do, which of course sometimes indicates simply the power of the market, as we have often seen on the upside. Today's reversal was very impressive. The rule is the bigger the reversal the more likely to continue, and paradoxically the less one should regret not have bought near the low. You can buy after a feeble reversal only to find that there is no follow-through. We could see buying lightly here. On our recommended list, the following stocks made new highs today and are particularly recommended to enter here: Apache (APA) and Idec (IDPH). Apache is an oil stock and you can buy pretty much any. Among our recommended stocks in the oil patch, BP Amoco and the oil-service company Santa Fe (SDC) look particularly good to buy right here. Other recommended stocks that are timely to buy now are Corning (GLW), Hewlett Packard (HWP), LSI Logic (LSI), PMC Sierra (PMCS). Although several of our recommendations sold off quite hard, like Lucent, there are none that we want to sell because of better looking opportunities or because their technical case has weakened excessively.

We are adding three stocks that are particularly timely to buy now:

Amgen (AMGN) $79.19
We previously owned this stock and want to buy it back. It is one of the technically strongest health care stocks, an area in which we want more representation.

Chiron Corp (CHIR) $26.56
This is another health care stock with a particularly good story related recently in Barron's.

Talisman (TLM) $31.50
Yet another oil stock, with an immensely powerful chart like Apache, fueled by a big oil discovery and a strong balance sheet.

Stocks marked # are eligible for Canadian RSP funds. Otherwise there is a 20pc restriction on foreign stocks held in these accounts.

Current Recommendations:
(Entry Date, Entry Price, Last Close, Code, Name)

* 99/05/12 39.75 44.56 ADI Analog Devices
* 99/04/06 49.00 85.00 AMCC Applied Micro Circuits
99/06/14 30.63 30.63 AOG Alberta Energy Corp #
99/06/14 38.28 44.48 APA Apache
99/04/06 92.13 105.94 ASCND Ascend Communications
(acquired by Lucent 1.65 shares to 1)
99/06/14 109.78 117.50 BPA BP Amoco Plc
* 99/05/12 94.38 114.25 BRCM Broadcom
* 99/05/14 40.69 42.81 CLS Celestica #
99/05/12 117.50 61.50 CSCO Cisco (split on 99/06/21 2:1)
99/06/14 14.59 18.09 CXY Canadian Occidental Petroleum #
* 99/05/12 46.91 41.41 DEO Diageo Plc
99/05/12 54.61 58.61 EDS Electronic Data System
99/04/06 132.13 62.31 EMC EMC (split on 99/05/28 2:1)
99/06/14 31.13 31.13 ERICY Erickson
99/04/06 51.50 45.44 FLEX Flextronics
99/06/14 60.14 70.02 GLW Corning
99/05/14 84.52 113.55 HWP Hewlett-Packard
99/05/12 220.77 122.83 IBM IBM (split on 99/05/26)
99/05/14 58.13 101.50 IDPH Idec Pharma
99/04/06 60.83 60.80 LLTC Linear Tech Corp
** 99/04/06 32.75 51.69 LSI LSI Logic
99/05/12 25.06 24.00 NOVL Novell
* 99/04/06 163.19 81.44 NOK Nokia (split on 99/04/09 2:1)
99/04/06 65.66 81.92 NT Nortel Networks #
99/06/14 93.56 96.81 PHG Phillips Electronics
* 99/05/12 106.06 80.06 PMC PMC Sierra (split on 99/05/14 2:1)
* 99/05/12 49.88 62.44 QLTI QTLI Phototherapeutics #
99/06/14 21.39 21.98 SDC Santa Fe International
99/06/14 35.97 36.47 SFA Scientific Atlanta
* 99/04/06 53.75 65.63 SLR Solectron
99/04/06 130.94 71.50 SUNW Sun Microsystems (split on 99/04/08 2:1)
* 99/04/06 109.48 139.53 TXN Texas Instruments
** 99/05/12 87.19 96.70 TYC Tyco

In addition we recommend the following Closed End Funds, based on the assumption that Third World economic downturns are not going to last forever and that their stocks are now showing superb technical strength

99/05/12 9.89 10.58 CHN China Fund
99/04/06 6.63 9.25 FAK Fidelity Adv Korea
99/04/06 8.88 10.94 IFN India Fund
99/04/06 8.05 10.23 JOF Japan OTC Equity Fund
99/04/06 11.00 14.13 KF Korea Fund