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To: George Hassen who wrote (20700)	8/21/1999 5:31:00 PM
From: New Economy	Respond to of 62348

1. Top Market Timer Says "Sell" (LU) Market timer Dan Sullivan's buy and sell signals should command more attention than most. Investment newsletter monitor Mark Hulbert says that most market timers under- perform the market, but Sullivan is one of the only market timers that is always on the top of Hulbert's rankings. Sullivan's publication, The Chartist, is the sole timing service in Hulbert's top five list for 15-year total returns (19.3% annualized), a distinction he has long held. Also, Sullivan's 27 previous sell signals over the past 35 years preceded market declines averaging 12%, more than a third signaled declines of 20+%, and some of these declines were over 50%. Sullivan issued a sell signal on August 10. He says he is not surprised at subsequent snapback rallies as selling pressure over the past several weeks brought the market to extremely oversold levels. Such rallies may continue for the time being, but investors should beware. "Overbought and oversold measures are only short-term indicators. The market still faces major obstacles further our," he says. The biggest cloud on the market's horizon is how the advance/decline line continues to lag the major averages, as it has for the past 15 months. "In order for the market to really get back on solid footing, the A/D line would have to improve significantly from current levels," he says. Sullivan advises retreating to a 40-50% invested position, and on August 11 he sold 21 stocks from his portfolio. Stocks sold include Lucent Technologies (LU), CBS (CBS), Microsoft (MSFT), Dell (DELL) and Coca-Cola (KO). For more on Dan Sullivan's recommendation see "Commentary," August 12, 1999, The Chartist. Leading market timer Dan Sullivan measures risk in the stock market. When risk is low he aggressively buys high relative-strength stocks, and when risk rises he retreats to money market funds. Independent newsletter monitor Mark Hulbert says The Chartist is the #1 performer for the past 15 years in total returns with a 19.3% return and the #2 newsletter in risk-adjusted ranking for the same time period. For a 30-day free trial go to: investools.com The INVESTools Advisory, August 16-20, 1999 By John Brobst and Jenni Rankin, INVESTools.com