by Adam Lass and
Ann Sosnowski       Why is the S&P 500 up
15.95% in the first half of calen-
dar year 2003, what are the
most probable scenarios for the
second half, and how can you
best capitalize on them? I would
propose that the solutions to
these questions lie in the answer to this one: What do people want?       And, right now, the answer to that one is stock
market growth. And they want it in the worst way.       I frequently write about “the great herd.” Some
take this as derogatory, but that is a complete mis-
conception. I strongly suspect that, aside from an
unusual level of access to information, you and I,
we are the herd.        Much like us, the people who make up that vast
undulating mass have wives and kids and cars and
mortgages. Many of them have very expensive
cars, and while their mortgage rates may have
declined considerably over the past few months,
most have immediately traded in that largesse for
cash. Few have used it to pay down bills.        Rather, they have engaged in a spending spree
unrivaled in the history of recession. And thank
goodness for them (or should I say us). If this mar-
ket does continue to move up—  and while I have expressed my doubts as to the probability, morality
and wisdom of that possibility, it has happened
and may just continue to happen—  it will be thanks
to them. Up is up        That spending spree may be totally dependent
on both personal and Federal deficit spending, but
they have spent…   and the market is up.        At a recent speaking engagement, I was chal-
lenged to put aside my knowledge of economics,
politics, history and even physics, and examine the
market from a state of almost Zen-like purity.
Perhaps such a state is beyond my grasp in the
face of such times and proclivities. But I can do the
next best thing.        For the past year or so, I have been recruiting
and training a few fresh young minds in the
Byzantine ways of WaveStrength. Over the past
few months, regular readers have heard me recom-
mend gold for the first time. I must credit Brett
Kendrick for that bold move. Today I would like to
present the view of my young Athena, Ann
Sosnowski, on the next eight weeks of the S&P
500’s future.        Standing as she does at the beginning of her
own voyage, her vantage point offers a remarkably
different take: Where I have seen only the precipice
that lies below, she notes the strength of the 5 www.taipanonline.com SEPTEMBER 2003 The Bull’s desires trump
the Bear’s necessities Their cards may have been lousy, but the Bulls have
taken the last two hands and may well take the next one next, please… changing,  following one investing principle dooms
you to failure. It may work for a short period of time,
but once the market factors change,  then so must
your investing philosophy.        Plus,  if everyone looked for “value”  and bought
“value”  based on certain criteria,  there would be only
buyers for stocks one day,  and only sellers another
day. Markets just don’t work like that. There have to
be both buyers and sellers to maintain equilibrium in
the markets.        Our new Dynamic Market Theory says that if
you’re concentrating on only one “sector”  or one style of investing,  you’re going to fail. Money is
constantly flowing from one stock to another,  and
from one sector to another. This dynamic action is
what you must read to be successful.        Now,  there a number of “lenses”  you can look
through to get a profitable view of the market,  both
on the macro level and the micro level. This month,
our Taipan  team has once again prepared half a
dozen opportunities for you to take advantage of. So
put up your feet and let them introduce you to some
of the most profitable opportunities the dynamic mar-
kets have in store for you this fall. n