Gloom rules on Wall Street

The Ticker

October 10, 1991|By Julius Westheimer

Continuing to droop, the Dow Jones average lost 17 points yesterday, closing at 2,946.33. Despite its recent slide, the Dow index stands 313 points above its Jan. 1 level and 580 points above last October's low.

AND NOW WHERE? (in proportion received): "Double-dip recession could send stocks sharply lower." (LaLoggia's Special Situation Report) . . . "I can't rule out new Dow Jones highs to 3,070 or even 3,100, but time is running out for the bulls; technical indicators look very poor." (Lynn Elgert Letter) . . . "Investors with one- to three-year horizons should sell stocks up in the Dow 3,000 area. Upside is only one-third the downside potential." (The Floor Trader) . . . "Our model generated a sell signal in September and, crossing below its moving average and coming in the context of a bad recession about to worsen, this is a very strong sell signal." (Turning Points) . . . "Everybody and everything -- magazines, newsletters, TV news, newspapers -- are negative and that gives me a better feeling about the market. When it's obvious, it's obviously wrong." (Robert Bambauer, brokerage firm president).

ISRAEL DIARY: The Hotel Laromme, Jerusalem, charges $3 daily if you watch CNN News . . . Israelis smoke like chimneys and never talk about health, calories, cholesterol or exercise . . . Besides usual airport security, plainclothes men and women watch to see if you're a security "eyeball risk," some signs of which are rapid and hard swallowing . . . From my observations, most of the Scud damage in the Tel Aviv area -- 9,000 homes damaged and 120 destroyed -- has been repaired . . . Embarking from El Al Israel Airline's expensive business class at Tel Aviv's Ben Gurion Airport after a flight from New York, a Baltimorean quipped, "It's not my money I'm spending; it's half my children's and half Uncle Sam's."

MARYLAND MEMOS: Despite a generally "down" market, PHH Corp. shares have popped up several times recently in the 12-month "New High" listings . . . "Potomac Electric Power shares have strengthened this year as the company's earnings outlook continues bright. Yielding almost 7 percent, the stock remains attractive for above-average total return (gain plus income) over the long term." (S&P Outlook) . . . Tomorrow night, locally produced coast-to-coast "Wall Street Week with Louis Rukeyser" spotlights the show's "elves" (technical indicators) with guest Mark Leibovit and panelists Ralph Acampora, Gail Dudack and Martin Zweig.

OOPS! Fr. Robert Watson, St. Christopher's Church, Linthicum, calls to correct a mistake in Monday's Ticker. I listed "Money is the root of all evil" in a string of quotations, whereas Father Watson points out, correctly, that the exact quote is "Love of money is the root of all evil," adding, "And there's a big difference." Thanks for calling, Father; financial writers can use all the divine guidance we can get.

AUTUMN LEAVES: The Rothschild Co. (539-4660) will mail its latest "Letter to Clients: What's an Investor to Do?" if you phone for your copy . . . "Dumbest money mistakes: being ashamed to invest small amounts of money and failing to diversify." (How to Invest $500 to $5,000 by Nancy Dunnan) . . . The following stocks are recommended by nine or more newsletters followed by Hulbert Financial Digest: Bristol Myers Squibb, Cisco Systems, Merck.

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