One of the constant complaints of Yankees who come to Texas is that those of us who are natives do not know how to drive on ice. This is true. But that is because we only get to practice about once a year. We don't seem to remember what to do from year to year. Is it steer into the slide or away from it? What do we do when we start sliding back down the hill? It can cause huge traffic tie-ups.

Last December I wrote you a letter telling you that those of us who fly in economy class were worried about a bumpy landing. We kept hearing about a soft landing, but the ride was getting rough. The passengers back here in coach class are getting real nervous. Now, we would just as soon forget about attempting to land. We would rather see the plane start to take off again.

We are finally getting the bear market rally I have be writing about and hoping for. At least I think it is a bear market rally. Those who are buying this run must see something else Profiting From Greenspan and His Magic Rate Cuts:

The Millennium Wave Investor Sentiment Index is 77, and moving down.
The Millennium Wave Sentiment Momentum Index is 35.25, still trending down.
The Millennium Wave Sentiment Percentage Uptrends is 29.52, and has gone flat!

The Millennium Wave Sector Model has moved to Basic Services (RYBIX) from Energy Services (RYVIX). We entered and left Energy Services with a slight loss, so that means 7 of the last 8 trades have been losers. I still think the market is too volatile for sector trading, and will continue to be for some time. I look forward, more than you can possibly imagine, to the time when the markets have some reasonable value and basis to them, so we can use sector rotation and other systems profitably.

The Millennium Wave Investor Sentiment Index is 83, down somewhat
The Millennium Wave Sentiment Momentum Index is 42.25, still trending down
The Millennium Wave Sentiment Percentage Uptrends is 29.32, still leaping up!

The Millennium Wave Sector Model is still in Energy Services (RYVIX), with a small profit for a change, but after today, who knows? (comments below)

The Millennium Wave Sector Model has switched into the Rydex Energy (RYVIX) from the Internet fund (RYIIX). As I predicted, that trade lost money. We are now down 6 out of 7 trades for January alone, when "normal" would only see 2 or 3 trades in a month. This market is too volatile for sector rotation models, but this investment style will have its day before the end of the year. Patience, Dr. Siddique. We will get there.

The Millennium Wave Investor Sentiment Index is a red-hot 84.4, trending up
The Millennium Wave Sentiment Momentum Index is 46.6, trending down
The Millennium Wave Sentiment Percentage Uptrends is 23.75, leaping up!

The Millennium Wave Sector Model has switched into the Rydex Internet fund (RYIIX)

Your outspoken analyst is back from DC and the inaugural shindig. While I was there, I went to Baltimore and met with the editors and publishers of The Fleet Street Letter. They asked me to be a contributing editor and I gladly accepted. The Editor, Lynn Carpenter, is a no-nonsense value oriented stock picker with a solid track record. I asked her if she would share a pick with us or so every month and she agreed to do so, so the Millennium Wave Investor Online is going to be even better! I have always been a big fan of Fleet Street, and am proud to be associated with them.

I will still write my letter as always, but of course, some time in the near future I will tell you how you can subscribe if you want that letter.