Confirming what we have already been seeing in = 2002, the=20 ISM forecasts a continued "jobless" economic recovery in 2003. They = expect=20 factory revenues to grow by 5.4% compared to the 1.1% thus far in 2002.=20 Manufacturing capital spending is expected to increase 4.6%, but = employment is=20 expected to shrink a further 0.6%. By contrast, the service sector is = expected=20 to reduce capital spending by 0.4% while increasing employment by=20 0.2%.

Wholesaler's inventories fell 0.3% in October, = first drop=20 in 6 months. Expectations were for a rise of 0.1% after the 0.4% jump in = September. Sales declined 0.1%, suggesting to me two things: wholesalers = are=20 reacting faster to sales to prevent a glut of inventory; and inventories = overall=20 are very low so any improvement in sales will ripple all the way back to = the=20 producers. All businesses combined showed a 0.2% increase in = inventories, in=20 line with expectations and below Sept's 0.6% increase.

New claims for unemployment benefits rocketed = right back=20 up unexpectedly, offsetting the equally unexpected drop in the prior = week. Both=20 are due to govt difficulties in making seasonal changes due to the = Thanksgiving=20 holiday. The 4 week average showed an increase of 10,000. The Continuing = claims=20 had a huge drop of 165,000. While the media tries to suggest this shows = people=20 are finding jobs, I find it far more likely that it merely reflects the = number=20 of people losing unemployment benefits, and dropping off the charts. = Certainly,=20 no economic report I have seen suggests measurable job = creation.

The market tanked on Friday thanks to a = deflationary PPI=20 Report showing that producer prices fell 0.4% in November, expected was = no=20 change. That does, however, partially offset the huge and unexpected = jump of=20 1.1% in October. The core rate was down 0.3%, mostly offsetting the 0.5% = rise in=20 Oct. Expectations there as well were for no change. Energy prices = dropped 1.8%=20 (won't happen in December, I think) and passenger car prices dropped = 3.6%.

This list is in no way intended to recommend any = stocks to=20 the group. It is a part of my regular personal assessment of the health = of=20 CANSLIM's "M" and, as the name implies, only intended to identify some = stocks=20 with constructive chart patterns that may be worth WATCHING and learning from (and of = course doing=20 your own due diligence). I am employed = in=20 Operations by a US Broker Dealer, however everything presented by me is = strictly=20 my own ideas and in no way should be taken to reflect the views or = opinions of=20 my employer.

I typically list stocks with both RS and EPS = ranking of 80=20 or better, and try to exclude stocks undergoing any merger / acquisition = /=20 buyout scenario. I look at all charts that meet = this general RS/EPS=20 criteria, focusing on ones at or close to a new 12 month high. I = consider all=20 industry groups and prices, even those I will not consider for my = personal=20 investing. I no longer will actively consider earnings = forecast=20 for this year and next due the confusing data presented by DGO. I do no due diligence, that is your = responsibility. I will=20 note any CANSLIM patterns I see, such as c&h, double (or triple) = bottoms, or=20 flat bases (shown as Bx where "x" is the # of weeks, IMO). I will also = note LLUR=20 (Lower Left Upper Right) even though it is not exactly a CANSLIM = pattern. Rarely=20 are any of these stocks of interest to me for my personal investing due = size,=20 price or industry group. I will note any stocks in which I have a = current=20 personal financial interest.

The population of stocks I am reviewing this = weekend=20 substantially declined, reflecting "M".

ASGR - B4

BGFV - c&h formed, new company so beware of pro forma = earnings

BSTE - c&h, but handle getting too old and even has a small = c&h in=20 the long handle

CCDC - 8 week consolidation

CPG - LLUR, but rough. good sales growth, poor earnings as most go = to pay=20 dividends (5.6% yield), REIT

CRAY - B4, low priced

CTSH - 8 week consolidation

EBAY - nice c&h

IDXC - deep cup, good growth, in my VR Fund

MVL - c&h

PCLE - B5+

QSII - B4

UMPQ - c&h, handle trending down, declining volume

Happy Hunting,