Continuing to edge lower in what a local broker calls "Chinese water torture," the Dow Jones average lost 26 points yesterday to close at 3,228.17. Down in five of its last six sessions, the Dow stands 185 points below its all-time high and only 60 points above the New Year's Day level.
AND NOW WHERE? (In proportion received): "We have seen enough bear tracks to convince us that this is a high-risk time to buy stocks. Don't expect bear markets to be announced on 'Larry King Live,' as one usually arrives like a thief in the night." (Dines Letter) . . . "After making an 18-month low of 35 percent on July 10, the percentage of bulls [optimists] has risen to 50 percent and we're near levels where corrections begin. Caution advised." (Investors Intelligence) . . . "The weight of technical evidence suggests that the market's long-term trend should be spelled 'b-u-l-l.' " (Shearson's Large Cap Technician) . . . "Don't rely on the old line that the stock market goes up in the months before an election. During three-month periods before the last 11 presidential elections, the Dow rose an average of only 0.3 percent." (Zweig Forecast)
TUESDAY TIDBITS: "When you sell your house, you may have to pay a capital gains tax on the profit. One way to reduce or avoid this tax is by showing expenses that increased the home's value. Keep careful records along the way." (Dollar Stretcher) . . . "It is an ancient investment principle that before buying stock in a company, you should ask yourself whether you'd like to own the whole firm. If the answer is no, avoid the stock." (Forbes, Aug. 3) . . . "Recession keeps couples together. Despite the traditional belief that more marriages break up in hard times, in this recession fewer people are divorcing." (Crain's New York Business) . . . "If a man can see both sides of a question, you know that none of his money is tied up in it." (Verda Ross)