Stock market continues rally, gains 15 points

Julius Westheimer

October 29, 1992|By Julius Westheimer

Continuing its rally, the stock market moved higher again yesterday with the Dow Jones industrial average advancing 15 1/2 points on heavy volume to close at 3,251.40.

Considering that the Dow has vaulted from 934.39 on the day that Ronald Reagan was elected President on Nov. 4, 1980 -- and the surge continued through the Bush administration, a 12-year leap of 2,317 points, or 248 percent -- I find it curious that stocks are so strong with the polls anticipating a Clinton victory next Tuesday. As someone once said, "Wall Street goes its own way."

WHICH WAY NOW? "Since May the market completed a major sell signal. Objectives can be plotted down to Dow Jones 1,750. Resolution of this bear market could take from nine months to three years." (Stock & Bond Option Trading Form) . . . "Our telephone and mailbox, normally quite active, have gone into a black hole in the last two weeks. Nothing. This is an extremely apathetic, negative indication." (Technical Trends Newsletter) . . . "Look for stocks to move to higher levels by the beginning of 1993 at the latest." (Dessauer's Journal of Financial Markets) . . . "Steady-to-narrowing spread between intermediate vs. best-grade corporate bonds argues for a powerful stock rally." (Venture Returns.)

LOOKING AHEAD: "Market Surprises Are Likely To Be On the Upside: Why Year-After-Election 1993 Could Be a Bull Market Year" in Smart Money, November, says: "In the post-election year 1961 President Kennedy got the economy moving and the Dow Jones average gained 19 percent. . . . In 1965 the Dow advanced 11 percent. . . . In post-election year 1973 we had 'a mild bear market' and the DJ dipped 11 percent. . . . In 1985 the Dow surged 26 percent. . . . In 1989 a giant 27 percent gain in the Dow marked the best post-election stock year since World War II."

BALTIMORE ECONOMY: Aaron Finkelstein, president, Ace Uniform Rental Services, southwest Baltimore says, "We're a good local business barometer and frankly, I felt more confident a few months ago than I do now. It's just plain slow. Environmental and health-care uniform rentals are up but defense-related industries are terrible, plenty of lay-offs and few replacements." . . . A well known local party caterer told me that 40 "experienced and qualified" secretaries responded to his classified ad in last Sunday's Sun as opposed to the usual 10 applicants. He added, "And despite the recession, our business is good, provided we give extra fine service and charge fair prices. People are very price-conscious these days."

LOCAL HONOR ROLL: The Rothschild Co., for institutional funds under management, showed a 7 percent increase for the third quarter of 1992, more than doubling the 3.1 percent gain for the Standard & Poor's 500-stock average. Since September 1973, Rothschild funds are up 915 percent vs. the S.& P. advance of 763 percent. For details, including charts and graphs, call Leon Raskin at 539-4660 or write the firm at 32 South St., Balto., Md. 21202. . . . T. Rowe Price International Stock Fund is listed under "Winners: Top 10-Year Performance" in Barron's mutual fund section (Oct. 26) on newsstands this week. . . . As October wanes, these 1992 Dow Jones Ticker contestants are closest to Tuesday night's Dow close of 3,235.73: Hal Cramer, Pasadena (3,229); W.W. Karner, Bel Air (3,230); James Finnegan, Upperco (3,240) and Herbert Gakenheimer, Catonsville (3,242). Only two more months to go!

WITCHES' BREW: Tomorrow night, "Wall Street Week with Louis Rukeyser" features Labor Secretary Lynn M. Martin in a program titled, "Speaking for President Bush." Panelists will be Harvey Eisen, Carter Randall and Mr. Ticker. The 22-year-old coast-to-coast show airs at 8:30 p.m. on channels 22 and 67...The latest Kiplinger Washington Letter (Oct. 23) feels that Governor Clinton is headed for a decisive election victory, with President Bush's final push coming too feebly and not soon enough. The letter adds that the weak economy will be the deciding factor because most people vote with their wallets. . . . Just in: "The short-term pessimism is fairly high, a plus for the bulls." (The Zweig Forecast) . . . "Don't be overly concerned about your heirs. Usually, unearned funds do them more harm than good." (Gerald Loeb) . . . "A man will fight harder for his interests than his rights." (Napoleon Bonaparte) . . . "Make money and the whole nation will conspire to call you a gentleman." (George Bernard Shaw)

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