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Dow 30 Market Timing
By Kenneth Coleman
Now that crude oil is making one new high after another, the chances
for the Fed Funds Rate to move higher than 25 basis points are improving.
The Dow 30 is valued the old fashion way: if a stock doesn't make
the profit expected, it quickly drops in price. Earnings are currently
being announced for the 4th quarter.
A majority of corporations have improved earnings but the question
is will these corporations continue to meet profit expectations
after the Fed raised interest rates in February? The answer depends
on how high the interest rates go. Higher interest rates will negatively
affect the Blue Chips and Dow 30. The NASDAQ high-tech and e-commerce
companies pay no state or local taxes on their sales over the Internet.
As a result, they have a greater comfort zone when it comes to higher
interest rates.
The NYSE Money Flow Index went to a buy signal after the first
week in January. It is now at a point where it could quickly move
to a sell signal.
[Editor's Note: Ken's comments & Dow recommendations were made
1/21/99.]
| Corporation |
Symbol |
Phase |
| Alcoa |
AA |
5 |
| American Express |
AXP |
5 |
| AT&T |
T |
5 |
| Boeing |
BA |
3 |
| Caterpillar |
CAT |
1 |
| Citigroup |
CCI |
4 |
| Coca-Cola |
KO |
3 |
| Disney |
DIS |
3 |
| DuPont |
DD |
4 |
| Eastman Kodak |
EK |
4 |
| Exxon Mobile |
XON |
3 |
| General Electric |
GE |
5 |
| General Motors |
GM |
3 |
| Hewlett Packard |
HWP |
4 |
| Home Depot |
HD |
3 |
| Honeywell Inc. |
HON |
5 |
| IBM |
IBM |
3 |
| Intel Corp. |
INTC |
3 |
| International Paper |
IP |
4 |
| J.P. Morgan |
JPM |
5 |
| Johnson & Johnson |
JNJ |
5 |
| McDonald's |
MCD |
5 |
| Merck & Co., MRK |
MRK |
3 |
| Microsoft |
MSFT |
5 |
| Minnesota Mining |
MMM |
5 |
| Phillip Morris |
MO |
1 |
| Proctor & Gamble |
PG |
5 |
| SBC Communications |
SBC |
5 |
| United Technology |
UTX |
4 |
| WalMart |
WMT |
5 |
|
| 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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