Our web site hosting firm has been victim to the recent nimda virus. While we are back up, we are not yet able to post this e-letter. It may be a few days. The cost of this virus world-wide is estimated in the billions. The virus was launched one week later to the minute of the World Trade Towers tragedy. These hackers, when caught, should do serious jail time.

First off, I want to stop the rumors that I had anything to do with the wording in this week's release of the Beige Book from the Fed. They used words like: "slow growth", "sluggish", "below expectations", "weak demand", "loosening labor markets" and "pronounced reductions in consumer borrowing". The fact that I have been writing the above for months is mere coincidence. Or it may be due to the fact that even the Fed has to recognize the problems.

If you are confused by the blizzard of news that came out this week, then you are in great company. The level of disagreement among analysts and investors is becoming more and more shrill. How could PMC Sierra show such really bad numbers, get downgraded across the board, and open up 5% on the day? With all the bad telecom news, how could Lucent and JDS be going up?

Today, I want to welcome several thousand new readers. Many of you came from Bill Bonner's Daily Reckoning or from the Fleet Street letter, and others from the Association for Investor Awareness. I appreciate Executive Director Mike Casson's enthusiastic endorsement. Plus, a number of other web site's have been following my ruminations on Faith and History and have posted links. And, as always, we continue to grow mainly from referrals of loyal readers. I am thankful for the support.

This week I want to welcome 500 or so new readers, many at the suggestion of my old friend and sushi partner, Tony Sagami. Lately we have been getting a lot of referrals from readers and other investment writers, and I am grateful for the growth. I do spend a lot of time researching and writing this letter. It is nice to have someone recommend my writing to a friend or colleague.

Is the stock market the Little Engine That Could? Have I blown it when I suggested you get out a few weeks ago as the Dow rises another 7% and the NASDAQ is up 10% since then and 30% since the recent bottom? Am I early or am I simply wrong? Is there something really different this time?

Have we seen the bottom? Is it onward and upward? As I start this e-letter, the S&P and DOW are trying to top their recent highs. Will the S&P go through the 1250 resistance level? Is my short trade in jeopardy? Is it time to become a bull?

I will become bullish once again, but not yet, fellow traveler. While I cannot see around the Curve In The Road, I can read the warning signs. They keep telling us to watch out for bear traps.

Thanks for all the kind emails about my stomach problems of last Friday. I felt much better this weekend, at least well enough to begin to actually help my beleaguered wife with our house move which will culminate this weekend. Now let's see if I can recover from the bad neck pains due to the whiplash the bond markets have been giving us the last few weeks.

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 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)