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Dow 30 Market Timing
By Kenneth Coleman
There are 16 bears, 8 bulls, & 6 holds. The NYSE Money Flow Chart
is still on sell signal. The volume on the NYSE for June 25 was
the lowest of the year. It appears no one wants to commit any more
money to the market until they know whether Fed Chairman Greenspan
will raise interest rates & how much. No one expects the Fed to
lower interest rates. What's needed is for the dollar to shed value.
Anything more than a 25 basis point raise in the Fed Funds Rate
has probably not been fully factored into the market. It's logical
to expect a rally once the Fed raises rates by the expected 25 basis
points. If the Fed raises rates higher, look for a continuation
of the sell-off.
The Dow 30's moving average is about 9600. If the Dow should drop
below that point, it would be a good time to take defensive measures.
Buy put options or buy a Rydex Ursa position. In any case, always
keep your sell strategy ready (15% loss of new purchases, after
a 25% loss of profits -- sell). [Editor's Note: Ken's comments/data
reflect his opinion at 6/25/99.]
| Corporation |
Symbol |
Phase |
| AT&T |
T |
5 |
| Alcoa |
AA |
3 |
| Allied Signal |
ALD |
3 |
| American Express |
AXP |
4 |
| Boeing |
BA |
4 |
| Caterpillar |
CAT |
5 |
| Chevron |
CHV |
5 |
| Citigroup |
CCI |
2 |
| Coca-Cola |
KO |
5 |
| Disney |
DIS |
2 |
| DuPont |
DD |
4 |
| Eastman Kodak |
EK |
5 |
| Exxon |
XON |
5 |
| General Electric |
GE |
5 |
| General Motors |
GM |
5 |
| Goodyear |
GT |
5 |
| Hewlett Packard |
HWP |
4 |
| IBM |
IBM |
2 |
| International Paper |
IP |
5 |
| J.P. Morgan |
JPM |
5 |
| Johnson & Johnson |
JNJ |
5 |
| McDonald's |
MCD |
2 |
| Merck & Co., MRK |
|
2 |
| Minnesota Mining |
MMM |
4 |
| Phillip Morris |
MO |
3 |
| Proctor & Gamble |
PG |
5 |
| Sears |
S |
5 |
| Union Carbide |
UK |
5 |
| United Technology |
UTX |
5 |
| WalMart |
WMT |
5 |
|
| Phase Suggested |
Action Suggested |
Phase |
Action |
| 1 - 1-1/2 |
Cover Shorts |
5 - 5-1/2 |
Sell |
| 2 - 3 short |
Buy |
6 - 6-1/2 |
Sell |
| 3-1/2 - 4-1/2 short |
Hold |
7 - 7-1/2 |
Hold |
[Editor's note: Ken Coleman is the country's only "Investment
Tracker." He tracks all the money flowing into & out of the total
investment spectrum of G7 nations. Due to his unprecedented timing
predictions using money flow analysis, he, like Larry Oakley, is
in Who's Who in the World in Finance & Industry. He is editor of
Kenneth Coleman's Investment Tracker newsletter. Call him at 760-720-0107
or call the publisher at 800-380-2891.]
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