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Dow 30 Market Timing
By Kenneth Coleman
The Dow has started to join the other market indices in making
a series of new highs. The economy is moving right along. I wouldn't
be surprised to see 4Q GDP in the high 4% range. Wall Street Mavens
have been telling us wages are not moving up as fast as productivity,
therefore providing a low price inflation environment.
The growth in the money supply, while somewhat restrained from
1998 data, is still signaling price increases ahead. So what did
Wall Street miss? For one thing, they make a big point to remind
us it's only a handful of tech stocks that are keeping this economy
moving higher. After that acknowledgement they return to their usual
archaic way of seeing things.
Yes, a few tech stocks are carrying this market & what happens
to these techs happens to the economy. Wage growth (or lack thereof)
from 1998 to 1999 was down an incredible 45 percent. Most of those
working in the tech sector aren't interested in wages. They want
stock options & bonuses tied to performance goals. This is why there
are so many millionaires working low- to mid-level jobs in this
sector. Come on Wall Street. Let's get with the program. Note: The
NYSE Money Flow Index turned bearish. [Editor's Note: Ken's comments
& Dow recommendations were made 12/30/99.]
| Corporation |
Symbol |
Phase |
| Alcoa |
AA |
3 |
| American Express |
AXP |
2 |
| AT&T |
T |
5 |
| Boeing |
BA |
4 |
| Caterpillar |
CAT |
2 |
| Citigroup |
CCI |
4 |
| Coca-Cola |
KO |
5 |
| Disney |
DIS |
3 |
| DuPont |
DD |
2 |
| Eastman Kodak |
EK |
2 |
| Exxon Mobile |
XON |
5 |
| General Electric |
GE |
3 |
| General Motors |
GM |
5 |
| Hewlett Packard |
HWP |
3 |
| Home Depot |
HD |
3 |
| Honeywell Inc. |
HON |
5 |
| IBM |
IBM |
3 |
| Intel Corp. |
INTC |
2 |
| International Paper |
IP |
3 |
| J.P. Morgan |
JPM |
5 |
| Johnson & Johnson |
JNJ |
5 |
| McDonald's |
MCD |
5 |
| Merck & Co., MRK |
MRK |
5 |
| Microsoft |
MSFT |
3 |
| Minnesota Mining |
MMM |
5 |
| Phillip Morris |
MO |
1 |
| Proctor & Gamble |
PG |
5 |
| SBC Communications |
SBC |
5 |
| United Technology |
UTX |
2 |
| WalMart |
WMT |
3 |
|
| Phase Suggested |
Action Suggested |
Phase |
Action |
| 1 - 1-1/2 |
Cover Shorts |
5 - 5-1/2 |
Sell |
| 2 - 3 |
Buy |
6 - 6-1/2 |
Sell Short |
| 3-1/2 - 4-1/2 |
Hold |
7 - 7-1/2 |
Hold Short |
[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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