A quick summary on today’s (11.30.00) action:

I believe (75% degree of confidence) that we put in a short term bottom today; this despite it being the last day of the month, when we tend to get some “window dressing.

Here's why:

--The second highest volume day ever on Nasdaq suggests partial capitulation;
--Over 900 new lows made (that’s a very high number)concur;
--Many former high flyers now off by 50%;
--Severely oversold condition by short term oscillators;
--My downside target of 2550 penetrated, with a close higher than that;
--Merrill Lynch, on Wednesday, called for a much lower Nasdaq; Their market calls have been notoriously bad,and can be used as a contra indicator;
--Short covering rally . . . The bad news (hey! the economy's slowing!) is now in, and the good news - resolution by the Supreme Court? Change in bias by the Fed? could surprise. Besides, most of the downside gains have already been wrung -- so why hold on for that last few points against the potential upside swing?
--Intraday, the Nasdaq was down 50% from its high of 5123 to 2523;
--Lastly, November was the Nasdaq’s worst month since October 1987.
So this looks to be a trading opportunity. The upside on the Naasdaq can get as high as 3150 - 3200, although I would be thinking exit below 2950 -3000. We could easily surge euphorically thru 3000, but at that point, start lightening up and thinking short again.

For now, buy the stocks which will trade back to resistance the quickest: Big cap tech stocks.

Still, its not the time to buy with both fists. The confession season is about to begin again.

Find stocks you are willing to hold if things go a little south, and work with tight 12% stops.

Here’s what I am purchasing today (11/30):

Today's Purchases

Stock	Purchase price	Upside targets	Stop limit
QCOM	81-83	99	76
SEBL	69-72	92-99	48
JDSU	50-54	66-68	48
CREE	56-60	84	53
CTXS	24-26	38	22
*MUSE	73-76	115	62

*(MUSE is for hyper aggressive traders only)

That’s all for today. I hope to follow up on this in a week or two.

--Barry Ritholtz

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